We would like to thank our faculty Ameer Yusuf Khan for his splendid support and guideline during

our completion of this report. We are grateful for the patience and the time he gave us to solve the problems we faced in making the project. We would also like to express our gratitude to the management and all the individuals of PRAN Group who have taken part by assisting us with details on their company, especially to Mr. Chowdhry Kamruzzaman Kamal who is the General Manager (PRAN Sales-Marketing) of PRAN Group. He helped us a lot by giving his valuable time and lots of information which was very essential for us to make our project a superior one. We would also like to take the opportunity to thank our families, friends and classmates for being so generous, friendly and helpful and assisting us with both major and minor details.

We in Bangladesh are blessed with a climate ideally suited to agriculture, specially fruits and vegetables-rich in taste and flavor: sweet, mellow and juicy. Our deltaic plains are among the most fertile in the world created and drained by the mighty rivers-the Padma, Jamuna & Meghna. There is plenty of water. And farming is a way of life to our people. Our comparative advantage as an economy lies in agriculture. We believe the way to economic prosperity is through agri and agro- business. PRAN Group was born in 1980. Keeping in view the corporate mission of the Group they have over the years diversified their activities in several areas. PRANs biggest asset is their competent team of hands-on managers and dedicated employees. PRAN is Bangladeshs largest grower and processor of fruits and vegetables. Their contract growers cultivate the choicest fruits and vegetables, which are processed in their modern and hygienic factories to highest quality & international standards.

Why PRAN? PRAN is a concept: a way to fight poverty and hunger in Bangladesh in the shortest possible time through employment generation. PRAN signifies investment in agro processing: creating demands for farm produce, which create jobs in rural areas also preventing urban migration. PRANs aim is to add value to agricultural produce.

PRAN is in testimony to our convictions. It stands for: PROGRAMME FOR RURAL ADVANCEMENT NATIONALLY We dont see why we should remain poor given the gifts endowed by nature such as fertile soil, water, year round growing season, a river system for easy and cheap transportation and a hard working people who are farmers by tradition. Bangladeshs comparative advantage lies in creating a competitive edge in value added agricultural products. This is what PRAN stands for. PRANs journey started in 1981. Today they have major investments in several corporates. They are the largest processors of fruits and vegetables in Bangladesh and fast moving into milk, confectionery, tee, aromatic & fine rice, peanuts, pulses, mustard & spices to name a few.

PRAN encourages contract farmers and helps them grow quality crops with increased yields and to obtain fair prices. In the stock market their performance has been just as rewarding with both PRAN Group publicly listed companies: Agricultural Marketing Co Ltd & Manipur Foundry Ltd achieving blue chip status. Supporting PRAN is helping the Bangladeshi farmer and indeed Bangladesh economy. Success of PRAN is your success. Investing in PRAN is investing in your and Bangladeshs future.

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LOCATION: CORPORATE HEAD QUARTERS: Property heights, 12 R K Mission road, GPO Box: 83, DHAKA-1203, BANGLADESH

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PRAN GROUP

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Organizational type

i. There are two types of organization. They are: Mechanistic organization Organic organization

Mechanistic organizations trend to be right in design and have strong bureaucratic quality. On the other hand, organization trend to be quiet flexible in structure and adaptive to change.

PRAN follows a mixed policy though they say that they are organic organization. For instance as their organization is decentralized their task flexibility is very high which is a clear example of organic organization. In contrast their definition of right, obligation and technique is clear, which is an example of mechanistic organization.

The thing is discussed precisely below:

Characteristic Mechanistic Organizations Decision Organic Organizations Decision Task definition for individual contributors Narrow and precise Broad and general √ Relationship between individual contribution and organization purpose Vague Clear √ Task flexibility Low High √ Definition of rights, obligation and techniques Clear √ Vague Reliance on hierarchical control High Low (reliance on self-control) √

Primary direction of communication Vertical (top to bottom) Lateral (between peers) √ Reliance on instructions and decisions from superior High Low (superior offers information and advice) √ Emphasis on loyalty and obedience High √ Low Type of knowledge required Narrow, technical and task-specific √ Broad and professional

Organizational Structure: ii. Functional departmentalization:

iii. Each department has their own decision making power at the most lower level. So their organization structure is highly decentralized. For instance: Characteristic Highly Centralized organization Decision Highly decentralized organization Decision How many decisions are made at lower levels in the hierarchy? Very few, if any Many or most √ How important are the decisions that are made at lower levels? Not very Important Very Important √ How many different functions rely on lower-level decision-making? Very few, if any All or most √ How much does top management monitor or check up on lower-level decision making? A great deal Very little Or not at all √

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The Evaluation of Management Thought As we know management is an interdisciplinary and international field that has evolved in bits and pieces over the years. There are six approaches in management theory. But the PRAN Group follows the attributes of excellence approach. This approach is a modern unconventional approach. PRAN Group believes that they use the attributes of excellence approach because of the following reasons: Attributes of excellence Key indicators A bias for action Small-scale, easily managed experiments to build knowledge, interest, and commitment. Managers stay visible and personally involved in all areas through active, informal communication and spontaneous MBWA Close to the customer Customer satisfaction is practically an obsession. Input from customers is sought throughout the design/ production/marketing cycle. Autonomy and entrepreneurship Risk taking is encouraged; failure is tolerated. Innovators are encouraged to champion their pet projects to see them through to completion. Flexible structure permits the formation of skunk works Lots of creative swing are encouraged to ensure some home runs Productivity through people Individuals are treated with respect and dignity. Enthusiasm, trust, and a family feeling are fostered. People are encouraged to have fun while getting something meaningful accomplished. Work units are kept small and humane. Hands-on, value driven A clear company philosophy is disseminated and followed. Personal values are discussed openly, not buried. The organizations belief system is reinforced through frequently shared storied, myths, and legends. Leaders are positive role models, not Do-as-I-say, not-as-I-do authority figures. Stick to the knitting Management sticks to the business it knows best. Emphasis is on internal growth, not mergers. Simple form, lean staff Authority is decentralized as much as possible. Headquarters staffs are kept small; talent is pushed out to the field. Simultaneous loose-tight properties Decentralized authority, and opportunities for creativity counterbalance tight overall strategic and financial control.

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Uncertainty A company may face some uncertainty because we are in a changing world. Technology is improving day by day. So a company has to face certain uncertainty. Like all other company PRAN group also face some uncertainty. They are discussed below:  ECONOMIC Economic environment is the most important of all that the organization has to deal with. The company has to take major decisions based on the economic forecast. As it is an export type organization it has to monitor the economic situation of Bangladesh and the other countries where it exports its product. Though the economic condition of our country is very poor; the export of foods and agricultural items are bright hope of light. In order to monitor the economic forecast the company take care some elements like inflation rate, gross domestic product, unemployment rate, value of local currency against foreign currency etc. Measuring the economic situation perfectly, the company started its export activities from the very beginning of their business and now it is one of the dominance forces in the food and agricultural industry. It only happened because of the companys management efficiency and correct measurement about the economy. Heating the international market for the fast time was tough but the company had its financial health and both the national and the international economic environment were its side. As a result it succeeded to get the international market.  Political, legal & Regulatory: Numerous laws and a multitude of authorities characterize the political, legal and regulator forces in the environment that has a strong influence on the organization. This company has to maintain the rules and regulations of Bangladesh government when it pays its import taxes for importing raw materials and export taxes for exporting finished products. The organization has to keep the rights of employees. Maintaining the international labor law the labors of the company has to work eight hours a day. There is provision of overtime work period for the labors.  Cultural and Social Organization should monitor social and cultural forces because these external forces are extremely important to there performance. Though situated in Bangladesh PRAN GROUP has to keep a close look at the social and cultural changes of the European countries. It has to do this because the products that it produced are for the people of that society. Moreover, the employees of the organization are from our society. Recent years the effectiveness of women workers has been proved. And our society has responded positively about the matter. Thats why the company has a large amount of women workers in its factory. As the society has merged for the safety of the environment, the company also shows its support to the movement by making people and the other industrialists innovate to use eco friendly materials and try to save our environment as much as they can. The company has to do all these in order to keep the social and cultural environment by its side.  INTERNATIONAL As PRAN GROUP exports its products to foreign countries; the importance of the international forces really matters here. It has to monitor the consumers preference, price, promotional strategies, government policies etc. for an international market. It has to face the hard competition of the international market

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Planning Planning Cycle: The marketing manager makes a plan and submits it to the management department one year before implementation. The management department study and modify the plan and then approve it back. Then everything is made set for the implementation. In the mean time if there is any change in the market then the plan is also changed according to the change. When the time comes the plan is carried out. After a certain time the change is compared with the previous situation. If there is a negative result a re-plan is made and carried out. If it is in the companys side then it will be used to make future plan.

Synergy: PRAN got the facility of management and marketing synergy for their organizational structure. I. Market Synergy When one product or service fortifies the sales of one or more other product or service, market synergy has been achieved. The brand name PRAN is really famous in Bangladesh. The company is using the same name for all its ten sectors in the market. So a clear market synergy is seen in this area. Product: Company Legal status Line of business AGRICULTURAL MKT. CO.LTD

Estab: 1985 Public listed Company Processors of fruit juices, drinks, jam, fruit & vegetables, etc. RANGPUR FOUNDRY LTD Estab: 1980 Public listed Company Manufacturers of hand tubewells, PVC pipe, filter, etc. PROPERTY DEVELOPMENT LTD Estab: 1983 Public listed Company Builders of apartments, commercial dev, etc. PRAN FOODS LTD Estab: 1996 Public listed Company Candy, bubble gum, spices, etc. PRAN AGRO LTD Estab: 2001 Private limited Company Processors of agro-based products. BANGLADESH LIFT IND. LTD Estab: 1988 Private limited Company Import, installation, maintenance of lifts. BANGA AGRO PROCESSING LTD Estab: 2000 Private limited Company Processing & packaging of quality rice. PRAN AGROBUSINESS LTD Estab: 2001 Private limited Company Growing & procurement of crops through contract farming. RFL PLASTIC LTD Estab: 2002 Private limited Company Manufacturers of plastic furniture & allied products. PRAN DAIRY LTD Estab: 2002 Private limited Company Processors of fresh milk, milk products, etc.

II. Management Synergy PRAN GROUP uses the same business and management strategy nationally and internationally. PRAN GROUP exports various types of products by using same brand name. For this reason, they use the same management system. Countrywide Distribution Network Company appointed Sales Force all over the Country

Sales Network 70 Executives 486 Sales Representatives ( Selling to retailers all over Bangladesh through Distributors) Country Divided by Sales Zone Distribution Network At this moment total Distributors are 345

Worldwide distribution: Major Market : India, KSA, Djibouti (1136N 4310E) & UK PRAN has also been exporting to: USA, Canada, Austria, France, Germany, Belgium, Switzerland, Singapore, Malaysia, Korea, Japan, Australia, Qatar, UAE, Kuwait, Oman, Bahrain, Lebanon, Angola, Congo, Ghana, Senegal, RCA, Gabon, Cameroon, Togo, Benin, Mayotte, Mali, Mauritania, Cabo Verde Islands, Reunion Islands, Nepal, Bhutan, Sri Lanka, Pakistan & Myanmar

Exported item: Fruit Juices in Aseptic Pack & Glass Bottle, Fruit Drinks in Plastic Bottle,

Promotion & advertisement: In-house advertising agency provides full advertising support. Major emphasis is on TV advertisements as this is the most popular Media available. 50% of the annual budget is dedicated to TV. New ads for Mango Juice Bottle, Aseptic Juice, Tea Radio, Press, Cinema, POS, Outdoor ads (Billboards, Wall Painting) also used in promotion Outdoor coverage (PRAN Branding) all over Bangladesh

The Human Resource department: An organization success depends on its human resources. No matter how much an organization invests on other assets, if its human resource does not have the competence then the organization will be unsuccessful. Even when deciding on which fixed assets to invest, any organization goes through many industries. Therefore, when it comes to human resource it has to be even more careful.

First, an organization conducts a human resource planning to identify their personal needs. Once these needs are established a job analysis is conducted, which clarifies the job being done and the individual qualities

necessary to do these jobs successfully? Because of this information a pool of qualified applicants are recruited. The next steps call for thinning this set, which are the major objectives of selection. The purpose of this report is to find out whether the real world companies follow the theoretical concepts in terms of selecting their employees or not. In perspective of human resource management, we will try to find out in this report how far the real world companys selection process is based on theoretical concepts. This report is mainly based on the primary research. The HR manager of the previously mentioned company conducted an interview. This report helped us to learn about the reality by comparing the selection process in terms of the concepts and real world situation. Our access to the renewed company PRAN GROUP gave us the opportunity to learn about it and its selection process. It also gave us further insight into the subject matter. Moreover, it will help us in the near future to make ourselves prepare to face any kind of recruitment and selection process. The objective of selecting process is to choose the individual who can successfully perform the job from a pool of qualified candidates. Job analysis, human resource planning, and recruitment are prerequisites of the selection process. A breakdown or a simple mistake in any of this process can make even the best selection system ineffective.

HR OBJECTIVES OF PRAN GROUPS: PRAN GROUP committed to provide equality of opportunity to all staff on the basis of merit and suitability regardless of sex, race, nationality, age, disability, ethnic origin, religion or status. Employees satisfaction. Attraction, retention and motivation through good working environment, performance management system. Good benefit scheme. THE RECRUITMENT PROCESS: Recruitment refers to organizational activities that influence the number and types of applicants who apply for a job and whether the applicants accept jobs that are offered.

REASONS FOR RECRUITMENT: An organization recruits people when it needs more people to accomplish its tasks. PRAN GROUPS also recruits people. Employers recruits for a variety of reason: The employer anticipates a rise in demand for products and services.  Training is required and employer wishes to ensure there is cover for staff.  Staffs are expected to leave, for example those about to retire, replacements are needed.  Staffs who have already left to be replaced. PRAN GROUPS recruits through out the year. METHODS OF RECRUITING: Once an organization has decided its needs of additional or replacement employees, it is faced with the decision of how to generate the necessary applications. PRAN GROUP tried to fill as many jobs recruiting internally. And if necessary, it goes for sources external to the company. Generally organizations use both of

the sources to generate a sufficient number of applicants. PRAN GROUP is not different from this process. They mainly do internal recruitment. It also recruits from the external sources. In the process of external recruitment, it follows: Media advertisement Internet advertisement Media advertisement: PRAN GROUP does daily newspapers advertisement. They also prefer financial, business, or commercial type newspapers, to advertise vacancy. The managing authority of PRAN GROUP thinks these policies are profitable for the organization. Because it reduces costs, but attracts the appropriate people. Internet advertising: PRAN GROUP very randomly uses Internet for advertising the vacancies for all departments. This helps the organization to attract people from all over the country. Internet helps to get good person at a lower cost. Employee selection: After doing all kinds of selection criteria HR Department of PRAN GROUP takes the interview of the applicants. But the way they take the interview is very traditional and conventional. It is very difficult to find out the appropriate applicant for the appropriate job. They only take the VIVA VOCE of the applicants.

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SWOT Analysis The analysis focuses its light on the four different factors of a certain business firm - Strength, Weakness, Opportunity & Threat. These four factors, nevertheless, predicts the future operation of a business concern. Strength:  Well-known and established company.  Product quality: AMCL- PRAN is the first and only food processing company in Bangladesh to earn the prestigious distinction ISO 9001 certificate. This supreme certification ensures that PRAN products reach the consumer maintaining the height level of quality. Other than this, AMCL-PRAN also has other kinds of quality certification.

 Customer satisfaction: Good Quality Products conforming to local tastes, health & hygienic standards. Affordable price within the reach of target consumers. Available everywhere all the time.

Local product but of international standard  Good management.  Skillful and trained employee.  Good promotional activity In-house advertising agency provides full advertising support. Major emphasis is on TV advertisements as this is the most popular Media available. 50% of the annual budget is dedicated to TV. New ads for Mango Juice Bottle, Aseptic Juice, Tea Radio, Press, Cinema, POS, Outdoor ads (Billboards, Wall Painting) also used in promotion Outdoor coverage (PRAN Branding) all over Bangladesh  Always try to follow McGregors Theory Y (Modern assumption about people). Such as People are capable of self-direction and self-control, if they are committed to objectives. We also give the reward for the best performance to the employee.

Weakness:  Lack of part time worker.  Cant be able to give equal effort to our all products.  Political hazard & influences  Lack of modern training facilities. Opportunities:  Will be able to become the no- 1.  Expand the business in other countries of the world.  Expand the business in other sight.  Improve the technology. Threats:  Competition with other company.  Some uncertainty, such as: social, political, economical uncertainty.

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[ Company Legal status Line of business AGRICULTURAL MKT. CO.LTD Estab: 1985 Public listed Company Processors of fruit juices, drinks, jam, fruit & vegetables, etc. RANGPUR FOUNDRY LTD Estab: 1980 Public listed Company Manufacturers of hand tubewells, PVC pipe, filter, etc. PROPERTY DEVELOPMENT LTD Estab: 1983 Public listed Company Builders of apartments, commercial dev, etc. PRAN FOODS LTD Estab: 1996 Public listed Company Candy, bubble gum, spices, etc. PRAN AGRO LTD Estab: 2001 Private limited Company Processors of agro-based products. BANGLADESH LIFT IND. LTD Estab: 1988 Private limited Company Import, installation, maintenance of lifts. BANGA AGRO PROCESSING LTD Estab: 2000 Private limited Company Processing & packaging of quality rice. PRAN AGROBUSINESS LTD Estab: 2001 Private limited Company Growing & procurement of crops through contract farming. RFL PLASTIC LTD Estab: 2002 Private limited Company Manufacturers of plastic furniture & allied products. PRAN DAIRY LTD Estab: 2002 Private limited Company Processors of fresh milk, milk products, etc.

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PRAN FOODS LTD: PFL was established in 1996 as a Private Ltd Co to explore the immense possibilities and potential, which lie in agriculture sector of Bangladesh. PLF is trying to create wealth by adding value to farm produce, and generate employment and income in rural areas. Presently PLF is buying and processing thousands of tons of Potato, Dal, Corn, etc for the manufacture of quality nontraditional food items like Dal, Powdered Spices, Chips, Chanachur, Candy in a modern, state-ofthe-art and hygienic atmosphere. POWDERED SPICES: Powdered Spices falls under PRAN FOODS Ltd. PRAN introduced this product in the beginning of the year 2002. There are several kinds of Powdered Spices, such as Turmeric Powder, Chili Powder, Coriander Powder and Zeera Powder. Those products have different kinds of packaging and pricing policy. For the Powdered Spices PRAN FOODS Ltd have two kinds of markets: 1. Local market 2. Foreign market 1. Local market: For the local market PRAN FOODS Ltd launches three types of Powdered Spices. They are:  Turmeric Powder  Chili Powder  Coriander Powder 2. Foreign market: For the foreign market PRAN FOODS Ltd launches four types of Powdered Spices:  Turmeric Powder  Chili Powder  Coriander Powder  Cumin seed Powder PACKAGING POLICY: For this Powdered Spices product PRAN FOODS Ltd follows the following packaging strategies: Form of packaging: Foil pack/box Product Code no. Product Content SKU Content/Bag 32203 Turmeric Powder 200gm 24pcs.crt 31651 Chili Powder 100gm 100pcs.crt

31652 Chili Powder 50gm 100pcs.crt 31661 Coriander Powder 100gm 100pcs.crt 31662 Coriander Powder 50gm 100pcs.crt 31656 Turmeric Powder 100gm 100pcs.crt 31657 Turmeric Powder 50gm 100pcs.crt

PRICING: Chili Powder Turmeric powder Coriander Powder 50 Grams Tk. 8 Tk. 6 Tk. 6 100 Grams Tk.16 Tk.12 Tk.12 200 Grams Tk.32 Tk.24 Tk.24 Synergy: Synergy talks about the concept that the whole is greater than the sun of its part. PRAN Group enjoys the management and marketing synergy for its internal structure. These are discussed below.  Marketing synergy A brand name PRAN is used for all the pran products. As the company is in a good position in Bangladesh, so it is helping them to sell more in the country.  Management synergy A single management system is used to run the spice as well as the other sides of the company. It is a management synergy.

SWOT Analysis: The analysis focuses its light on the four different factors of a certain business firm - Strength, Weakness, Opportunity & Threat. These four factors, nevertheless, predicts the future operation of a business concern. Strength:  Serve small farmers inputs  Own ingredients  Good relationship between farmers and organizations  Good product quality  Good packaging and pricing strategy Weakness:  Not a good promotional and advertising activities  Budget problem  Cant be able to give the equal effort like other products  Dont have standard survey system

Opportunities:  Will be able to hold the local market successfully  Can be able to earn the foreign exchanges by exporting this product to other parts of the world. Threat:  Competition with RADHUNI(SQUARE GROUP)  Environmental uncertainties

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After analyzing all kinds of information and data of PRAN GROUPS we learn something about the group and their business strategies. In this world nobody is perfect; everybody has some weakness. This world is very competitive. And for this reason we always face some sort of competition in the way of our journey. As we know PRAN GROUP is very well established and well known company but there is also some weakness in that company. We tried to find out those weaknesses and gave our suggestion to them to overcome those problems:

1. Organizational model:

Characteristic Mechanistic Organizations decision Organic Organizations decision Task definition for individual contributors Narrow and precise Broad and general √ Relationship between individual contribution and organization purpose Vague Clear √ Task flexibility Low High √ Definition of rights, obligation and techniques Clear Vague √ Reliance on hierarchical control High Low (reliance on self-control) √ Primary direction of communication Vertical (top to bottom) Lateral (between peers) √ Reliance on instructions and decisions from superior High Low (superior offers information and advice) √ Emphasis on loyalty and obedience High Low √ Type of knowledge required Narrow, technical and task-specific Broad and professional √

2. Uncertainty: All companies must consider some uncertainties in their life cycle. PRAN must consider these uncertainties whole making decision. Criteria Low Decision Moderate Decision High Decision How strong are social, political, and economic pressure on the organization? Minimal √ Moderate

Intense

How frequent are technological breakthrough in the industry? Infrequent √ Occasional

Frequent

How reliable are resources and supplies? Reliable √ Occasional, predictable shortages Unreliable How stable is the demand for the organizations product or service? Highly stable √ Moderately stable

Unstable

3. Pay incentives

According to Taylor What the workmen want from their employers beyond anything else is high wages. This economic man assumption led Taylor to believe that piece rates were important to improved productivity. Under traditional piece-rate plans, an individual received a fixed amount of money for each unit of output. Thus, the greater the output, the greater the pay. In his determination to find a better way, Taylor attempted to improve the traditional piece-rate scheme with his differential piece-rate plan. A labor in a factory works for 200 hrs in a months. They get tk 20 per hour. The payment is to low that the labors have to work overtime for their extra income. The company might pay overtime such as tk 30 for the extra time. It will increase the output. It will also motivate them to work.

4. Employee selection:

To make the selection program successful, the employee characteristics stated in the job specification must accurately summarize what is necessary for effective performance on the job. This is the part where the job analysis in selection becomes most apparent because an accurate list of characteristics can be generated only after the organization has conducted a through job analysis. PRAN GROUP can follow the following criteria for making selection decision; it can be summarized in several broad categories: education, experience, activities and interests, skills and achievements and other personal characteristics. In general staff level, they can require degree but actually they dont need that degree to do the job. In managerial level, they dont need to look at the BBA or BSC or BA, they should look at whether the candidate meet the interview selection, whether candidate has interest in working with the bank, whether they pass the written test. They can follow the following steps to make the selection decision:

5. Some extra suggestion:  Recruit the part-time employee  Need to give equal effort to all product  Need to do good survey before introducing new product  For the Powdered Spices need good promotional activities