COMSATS Institute of Information Technology,

WAH CANTT.

Management Practices
Overview of Management Practices in
Al-Farid Traders Company, Hattar.

Submitted to:

Dr. Komal Khalid Bhatti

Submitted by:

Hajira Mansoor (BS)BA-015

Fabeha Zaidi (BS)BA-017
Seemi Javaid (BS)BA-027
Alishba Shaukat (BS)BA-002

Submission Date:

May 22nd, 2014.

 TABLE OF CONTENTS

INTRODUCTION .....................................................................................................3
COMPANY OVERVIEW .........................................................................................3
ORGANIZATIONAL HIERARCHY .......................................................................5
DEPARTMENTALIZATION ...................................................................................6
Accounts Department .............................................................................................7
Production Department ...........................................................................................8
HR Administration Department ............................................................................10
Supply Chain Department .....................................................................................11
SWOT ANALYSIS..................................................................................................12
POLICIES ................................................................................................................12
ORGANIZATIONAL STRUCTURE .....................................................................15
GEOGRAPHIC EXPANSION ................................................................................16
REFERENCE ...........................................................................................................17
INTRODUCTION
This is our project of Management Practices in which we have taken the trading
company ALFARID TRADERS. This company is a dry fruit trading company. We
have studied the overall practices which take place in this company. We visited the
company and collected all the data related to the Human Resource Management,
all the policies and procedures implemented in the company.

COMPANY OVERVIEW
The company which we choosed for our project is a private sector trading company
named AL-FARID TRADERS. It was established in September, 2013. It is located
in Industrial Estate Hattar, Huripur. The company at the moment is exporting pine
nuts but it aims to export all kinds of dry fruit over the world as soon as possible.
They export the best quality pine nuts over the world. The core competency of this
company is that all the technology used to process all the dry friut is latest and only
this company has this technology in Pakistan. The new technology is imported
from China and is working very well up till now.
Vision

 To percieve the customer needs at utmost level and providing the best
quality dry fruits all over the world.
 Sustaining our repute as a reliable, customer oriented and dynamic player in
the market.
 Being a globally recognized company with an excellent organizational
structure.

Mission

 Providing the best quality pine nuts across the globe.

 Being the first preference for the customers and all the stakeholders.
 Maintainig our skills and knowledge with the diversely growing demand of
our customers.

Investment

There are no investors, the whole investment is 100% owners equity.

Company Turnover

The turnover of the company is round about 150 Crore PKR.

Competitors

There are very less number of competitors which are at very low level as compared
to this company. This company’s potential is way high than the competitors. There
are no potential competitors.

After the full establishment of the existing factories the owner aims to expand its
branches more over the country. The basic aim of the owner is to export the quality
fruits produced in our country over the world so that no one should be left enjoying
the great gifts of our Lord.
 ORGANIZATIONAL HIERARCHY

CHAIRMAN

MANAGING DIRECTOR

FACTORY MANAGER

QUALITY HR SUPPLY
ACCOUNTS PRODUCTION (TQM) ADMINISTRATION CHAIN
Department Department Department Department Department

Organization Chart

The company’s hierarchy is shown above in the organization chart.

First comes the Chairman, Mr. Abdul Ahad who is the president, which is
reasponsible for presiding over the board or committee meetings.

Second, comes the Managing Director (MD), Mr.Tahir under the chairman. The
chief executive who is the most senior full-time executive of the company. He is
the one who has the control over all resources and expenditures of the company.

Under the MD, the next rank is of the GM (General Manager), who is basically the
Factory Manager, Mr. M. Nayyar Shaukat Bhatti. He is responsible for supervising
all operations and production taking place in the factory. All the departments in the
factory are under the Factory Manager.
DEPARTMENTALIZATION
There are five departments in this company, which are:

1. Accounts Department
2. Production Department
3. Quality (TQM) Department
4. HR Administration Department
5. Supply Chain Department

Somehow, in the processing and doing the respective jobs all the departments are
inter related with each other. There are many processes which are not possible until
the other department is concerned for it.
 Accounts Department

ACCOUNTS DEPARTMENT

CHIEF FINANCIAL OFFICER

ACCOUNTS MANAGER STORE MANAGER

ACCOUNTANTS WORKERS

ASSISTANT ACCOUNTANTS

Accounts Department Hierarchy Chart

The Accounts Department is responsible for keeping in check all the financial
operations. All the purchases, salaries, other expenses are paid through here.

Financial Management

Every purchase reciept is sent to the Accounts Department and then the bill is paid.
All the expenses like electricity bill, telephone bill, etc. are paid through this
department. All the salaries of employees, tax payment, and payments to suppliers,
are the responsibility of the Accounts Department.

Store Management

The store management is also under the Accounts Department because all the
record is in their hand so the stores are also under their supervision. There are three
stores under the Store Manager, for:
 1. Raw materials
2. Finished goods
3. Tools and equipments

Production Department
PRODUCTION DEPARTMENT

PRODUCTION MANAGER

SUPERVISOR

SHIFT INCHARGE

WORKERS

Production Department Hierarchy Chart

Production

Production Department controls all processing of raw material, from bringing the
inventory or raw material from the stores to the finished goods back in the stores.
The production includes:

1. Bringing raw material from stores.

2. Cleaning all the raw pine nuts.
3. Pealing of the pine nuts.
4. Roasting the pine nuts.
5. Assembling and packaging.
6. Sending finished goods back to stores.
Maintainance

Maintainance is also a function of the Production Department. There are two kinds
of maintainance:

1. Electrical Maintainance

It is to maintain the factory’s electrical side. There shouldn’t be any fused

light, for example. Everything should be well maintained.

2. Mechanical Maintainance

Any kind of mechanical fault is to be maintained under this department. All

the assets should be well maintained, any machinery having a problem is
refined here.

Quality Department (TQM)

QUALITY DEPARTMENT
(TQM)

QUALITY ASSURANCE MANAGER

ASSISTANT MANAGER

SUPERVISOR

Quality Department (TQM) Hierarchy Chart

This department is mainly responsible for two things, which are:

 Product Quality
 Claim Assurance

The quality of the product is approved by this department. All the raw material and
processed finished good is first approved by the Quality Assurance Manager and
then moved on. The claim for the best quality pine nuts is if to be questioned, is
questioned here.

HR Administration Department

HR ADMINISTRATION DEPARTMENT

HR MANAGER

HR OFFICER

HR ASSISTANTS

DRIVERS PEONS SECURITY

HR Administration Department Hierarchy Chart

The basic funtion of the HR Administration Department is the HRM, Human

Resource Management.
Standard Operating Procedures (SOPs) or Policies

It is the job of HR Department to design all the SOPs for the whole organization.
All the policies like Leave Policy, Leave in Cashment Policy, Official Tours
Policy, Recruitment Policy, Training Policy, Appraisals Policy, Annual Appraisals
Policy, Incentives Policy, Bonus Policy, Purchase Policy, etc. are meant under this
department.

Attendance Observation

It is also the job of Hr. marking attendance of every single employee is the job of
HR Officers, so that there is a proper record and the incentives can be provided
properly and fairly.

Cleanliness

The peons, office boys and sweepers are under the supervision of HR Department
so ultimately the reasponsibility of cleaning the factory also comes under this
department.

Supply Chain Department

SUPPLY CHAIN DEPARTMENT

SUPPLY CHAIN MANAGER

SUPPLIERS

Supply Chain Department Hierarchy Chart

Raising Demand

The authority of raising the demand lies with the department of Supply Chain
Management. According to the policy there must be a one month inventory in hand
for advance.
Contract with Suppliers

The contract with the suppliers is seasonal.

SWOT ANALYSIS

Strength

 The exporting potential is very high.

 The marginal profit is high as well.

 Raw material is easily available at local markets.

 There s no complexity in procedures; simple but effective.

Weakness

 The sale graph fluctuates throughout the year due to seasonal product.

 Mis-handling of raw material by field workers.

Opportunity

 No potential competitors creat maximum opportunities.

 Opportunities for more geographic expansion are vast.

Threat

 Factor of inflation.

 Change in export policies.

 Natural hazards like prolonged unsuitable season.

POLICIES
These are provided to serve as up to date guide for the interpretation of these
policies in areas of ADMINISTRATION . The policies, procedures and rules have
been formulated to help Management, Managers and Staff by providing the
following:

1- A clear explanation of existing policies and procedures.

2- A basic communication tool that can improve relation between management

and employees.

3- A framework for effective decision-making.

4- Consistent, fair and legally sound decisions that can improve employees
productivity.

5- A resource for ongoing supervisory training and interpreting existing

policies.

General Managers and Managers should become familiar with these and use it as
necessary within their departments. The policies are:

 Leave Policy

Following leaves are paid:

 10 casual leaves are allowed in a year.

 10 sick leaves are allowed in a year.
 10 annual leaves are allowed apart from the above mentioned after
your one year of job is completed.
 Leave Encashment Policy

The 10 annual leaves can be cashed if not taken.

 Official Tours Policy

It is that every employee will be given facilities according to the respective

rank.

For example;
 MD is allowed to stay in five star hotel and can go by air.
 GM will be provided by fuel and car, and is allowed to stay in a four
star hotel.
  A manager is provided with the expense of public transport and is
allowed to stay in a three star hotel.

 Decion Making Pannel

The decision is basically made by the seniors but there is a pannel made for
discussion and suggestions which includes all the HODs. For lower level
decisions there is another pannel which includes two members from each
department.

 Recruitment Policy

There is no test required. After the short listing of the collected Cvsonly an
interview is taken by the decision making pannels.

 Training Policy

There are training officers or some officers are alloted the task to train the
new employees. If there is more need, then training teams are formed.

 Appraisal Policy

The appraisals of the employees are done on the basis of time bracket, that
for how long has the employee been part of the organization. After one year
completion of your job your salary is increased by 10% of your basic pay.

 Bonus Policy
 If the target is achieved within the deadline the achievers are rewarded
with the specific amount with respect to the task type.
 The bonus is also given to employees on occassions like Eid,etc.

 Inventory in hand
 If the inventory is available in the local market then, one month’s
advance inventory must be in hand.
 If the inventory is imported then , three months advance inventory
must be in hand.
  Task Allocation

Every HOD is reasponsible for the task allocation in his respective

department.

 Salary Slabs

Salary slabs are predefined for each post.

 Financial Power

Everyone is authorized with the limited financial power like the Financial
Manager can make decisions for maximum expense of 10,000 PKR but for
more than that he have to consult his senior.

ORGANIZATIONAL STRUCTURE
The structure of this organization is said to organic as the environment is flexible.
Everyone can easily approach anyone who they need to talk to. There is no strict
rule following needed. Employees are trusted and motivated to complete the
assigned tasks and are given incentives occassionally. Departmental meetings are
considered healthy and regular meetings demolishes the need of intensive paper
work.

There are seven dimensions of organic structure which we have studied in theory.
Explanation of our company according to these dimension is as follows:

1. Broad, changing job responsibilities

The responsibilities are not unchangeable, the task allocation is in a way that
no employee gets bore and irritated with his duty.

2. Communication is advisory

Everyone is allowed to speak freely to give suggestions, the environment is

friendly so that no one feels any hesitation. It helps in increasing confidence.
 3. Decentralized and informal decision making

The pannel made for decision making collects the suggestions and opinions
of every employee for making them realize that they are an important part of
the company.

4. Expertise is highly valued

Employees in their field of expertise do work more easily and happily, and
on the job well done they are provided with incentives and bonuses to be
rewarded and feel honoured.

5. Greater reliance on judgement than rules

Observation is highly necessary, and instead of application of strict rules the

right action suiting the situation is preferred.

6. Commitment to Organizational goals

When you relax your employees to do the work in their own way just
making sure the organizational goals are accomplished, then the motivation
level gets high resulting in the increased effective productivity.

7. Employees relate more informally and personally

The environment is kept very friendly and the post inferiority and superiority
doesn’t effect the environment which results in a more respective and
productive environment.

GEOGRAPHIC EXPANSION
There are three branches of Al-Farid Traders in Pakistan right now, which are in
the following areas:

1. Industrial Estate Hattar, Huripur

This is the branch which we have chosen for our project, it is reasponsible
for exporting the processed pine nuts over the world.
 2. Dera Ghazi Khan

This branch is reasponsible for the exporting of dates over the world.

3. Mewa Mandi, Peshawar

This branch of the country is reasponsible for exporting fresh fruits across
the border.

REFERENCE
All the above given information is provided by the Factory Manager Mr.
Muhammad Nayyar Shaukat Bhatti.