internship report on sabro technologies private limited
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This report contains valuable information about SABRO Technologies Private Limited.TRANSCRIPT
AN INTERNSHIP REPORT ON SABRO TECHNOLOGIES
(PVT) LTD ISLAMABAD
SUPERVISED BY
SIR ASAD SHAH JEHAN
PREPARED BY
SYED ASAD ALI SHAH
ROLL NUMBER 19078
MBA (HRM) 2009-11
DEPARTMENT OF MANAGEMENT SCIENCES
HAZARA UNIVERSITY
AN INTERNSHIP REPORT ON SABRO TECHNOLOGIES
(PVT) LTD ISLAMABAD
Internship Report Submitted To the Department Of Management Sciences
for the Partial Fulfillment of the Requirements for the Degree of Master of
Business Administration
DEPARTMENT OF MANAGEMENT SCIENCES
HAZARA UNIVERSITY
COMMITTEE APPROVAL FOLIO
External Assessor
Mr.__________________________________Signature___________________
Supervisor
Mr.__________________________________Signature___________________
Chairman
Mr.__________________________________Signature___________________
DEPARTMENT OF MANAGEMENT SCIENCES
HAZARA UNIVERSITY MANSEHRA
AKNOWLEDGEMENT
Being the student of Master in any discipline report writing is a very tough job for any
student. But this becomes easy only on the basis of cooperation of the concerned staff.
Here I mention some of the honorable staff of my office, which really co-operated with
me in this regard.
I would also like to gave my best wishes to the following staff of SABRO
TECHNOLOGIES (PVT) LTD. Islamabad, by name particularly the Head of HR and
ADMIN Department Mr. Dilbar Khan his peon Mr. Nadeem Khan and Mr. Malik Wasim
Akhtar who guide me throughout my job responsibilities and all other individuals who
helped me in every aspect of my job responsibilities and in the preparation of this report.
Except these people I would also very thankful of all the individuals who working in
different departments of SABRO TECHNOLOGIES, who really co-operated with me
whatever I asked from them related to HR.
In the last I am very thankful of my supervisor Sir Asad Shah Jehan who really
appreciates me in building my knowledge.
Syed Asad Ali Shah
MBA (HRM)
I
Table of Contents
Acknowledgement I
Table of Contents II
Table of Figures V
List of Acronyms VI
Executive Summary VII
Chapter 01 Introduction of Study 01
1.1 Background of studies
01
1.2 Purpose of the Studies 01
1.3 Scope of Studies 02
1.4 Limitations 02
1.5 Research Methodologies 02
Chapter 02 Overview of Sabro Technologies (Pvt) Ltd 04
2.1 SABRO Introduction and Background 04
2.2 History of Sabro Technologies 06
2.3 Location of Sabro 07
2.4 Mission Statement 08
2.5 Vision Statement 08
2.6 Quality Policy 08
2.7 Organizational Structure of Sabro 09
Chapter 03 Departments of Sabro Technologies (Pvt) Ltd 10
3 Introduction 10
3.1 Administration Department 10
3.2 Human Resource Department 11
3.3 Finance and Accounts Department 11
3.4 Production Department 12
I
3.5 Researches and Development Department 13
3.6 Purchase Department 13
3.6.1 Local Purchase 14
3.6.2 Foreign Purchase 14
3.7 IT Department 15
3.8 Packaging Department 15
3.9 Design Department 15
3.10 Quality Control Department 16
3.11 Quality Assurance Department 16
3.12 Marketing Department 16
3.13 After Sales Department 17
Chapter 04 Human Resource Management Department of STPL 18
4.1 Human Resource Department 18
4.2 Human Resource Information System 18
4.3 Mission and Vision Statement of HR Department 19
4.4 Hierarchy of HR Department at Sabro 19
4.5 Functions and Roles of the HR Department at STPL 20
4.6 Employees Categories at STPL 21
4.6.1 Permanent Employees 21
4.6.2 Contractor Employees 21
4.6.3 Contract or Seasonal Employees 21
4.6.4 Probationer 22
4.6.5 Relatives of Employees 22
4.7 Human Resource Inventory 22
4.8 Recruitment and Selection 22
4.8.1 Planning for Recruitment process 23
4.8.2 Decision on Vacancies 23
4.8.3 Job Description and Specification 23
4.9 Recruitment Sources 24
4.9.1 Internal Source 24
II
4.9.1.1 Direct Applicants and Referrals 24
4.9.2 External Source 24
4.9.2.1 Advertisements in Newspapers (Blind Box Ads) 25
4.10 Short List of Potential Candidates 25
4.11 Interviewing the Potential Candidates 26
4.12 The Screening Process 26
4.13 Personal Assessment Criteria 27
4.14 Training 29
4.14.1 Employees Training 29
4.14.2 Designing Effective Training System 29
4.14.2.1Conducting Need Assessment 29
4.14.2.2Creating Learning Environment 30
4.15 Training Methods 30
4.15.1 Classroom Instruction 31
4.15.2 Distance Learning 31
4.15.3 Audio Visual Techniques 31
4.15.4 On The Job Training 32
4.15.5 Off The Job Training 32
4.16 Employees Development 32
4.16.1 Formal Education 33
4.17 Orientation 33
4.18 Employees Transfer at Sabro 34
4.18.1 Promotion 34
4.18.2 Lateral 34
4.18.3 Interdepartmental Transfer 35
4.19 Compensation and Benefits 35
4.20 Wages or Salaries Plan 35
4.20.1 Working Hours and Overtime at Sabro 36
4.20.2 Deduction from Salaries or wages 36
4.21 Equal Employment Opportunities Issue at STPL 37
4.22 Employee Benefits 38
III
4.22.1 Medical Facility and Allowances 38
4.22.2 Pick and Drop Facility 38
4.22.3 Uniform and House Rent Allowance 38
4.22.4 Eid Allowance 39
4.22.5 Death and Disability Insurance 39
4.22.6 Pension 39
4.23 Performance Appraisal 39
4.23.1 Purpose of the Performance Appraisal 40
4.24 Performance Management System 40
4.24.1 Identifying and measuring the Performance of employees 40
Chapter 5 My Internship Activities 42
5.1 Introduction 42
5.2 Marking of Attendance 42
5.3 Fulfilling Demand of Employees and Management 43
5.4 Calculating and recording of over time 43
5.5 Provision of First Aid 44
5.6 Issuance of EOBI and Social Security Card 44
5.7 Receiving and Distribution of Mail 45
5.8 Monitoring the Workforce 45
5.9 Acting as Receptionist 46
Chapter 06 SWOT Analysis of Sabro Technologies (Pvt) Ltd 47
6.1 Strengths 47
6.1.1 Strong Brand Image 48
6.1.2 Strong Dealer Network 48
6.1.3 Strong Quality, Sale and Service 48
6.1.4 Market leader in Commercial type & Split AC 49
6.1.5 Pakistan largest AC Manufacturing Company 49
6.1.6 Strong Grip in Home Appliance 50
6.1.7 Strong Management 50
6.1.8 Distribution of Authority 50
IV
6.1.9 Strong Research and Development Department 51
6.1.10 Free Customer Service 51
6.2 Weaknesses 51
6.2.1 Lack of Advertisement 52
6.2.2 System Variations 52
6.2.3 Lack of Product Range 53
6.2.4 Less Utilization of Capacity 53
6.2.5 Financial Problems 54
6.3 Opportunities 54
6.3.1 Exploration of Market in Pakistan 55
6.3.2 Increase in Product Range 55
6.3.3 Export Opportunity 56
6.3.4 Increase in Production Line 56
6.4 Threats
56
6.4.1 Strong Competition 57
6.4.2 China’s Product 57
6.4.3 Price War 58
6.4.4 Instability of Government 58
6.4.5 Tax Department 58
6.4.6 World trade Organization 59
6.4.7 Investor’s 59
Finding and Suggestions 60
References 62
List of Figures
• Figure 01 Organizational Structure of Sabro 09
• Figure 02 Hierarchy of HR Department at Sabro 19
V
• Figure 03 Personal Assessment Criteria 27
VI
LIST OF ACRONYMS
STPL Sabro Technologies Private Limited
SABRO SA Brothers
Pvt Private
LTD Limited
HAVC Heating Ventilation and Air Condition
HR Human Resource
R&D Research and Development
ISO International Standard Organization
HP Hours Power
AC Air Condition
CNC Computer Numerically Control
CEO Chief Executive Officer
P&D Packaging and Designing
GM General Manager
VP Voice President
AVP Assistant Vice President
MRP Material Resource Planning
PPC Production Planning Control
IT Information Technologies
ACR Air Condition and Refrigerator
EOBI Employee Old Age Benefit Institution
I
EXECUITIVE SUMMARY
I consider myself fortunate to have got the opportunity to work on Sabro Technologies
(Pvt) LTD Pakistan for my MBA (HRM) Internship report. Sabro Technologies is a
pioneer heating ventilation and air conditioning System Company of Pakistan. This
company was started by three brothers in 1968, from Rs.500 and now this is one of the
largest multinational company of Pakistan. Sabro exports their products to Asian, Middle
East, Africa and some European countries like England and Turkey. In this report I focus
the HR department of the company, their functions and compensation strategies.
This report consist of seven chapters, Chapter 1, is Introduction to study which tells about
the report that how I prepare it from where I take data, what are the purpose of my
internship report, what are the scope of this report and what type of limitation occur to
me in preparation of report. Chapter 2, of this report is about the introduction of
organization where I did my internship their background, history, vision and mission
statement of the organization. Chapter 3 discusses the departments of organization and
their brief introduction. Chapter 4, is all about the HR department of Sabro technologies
their functions and roles.
Chapter 5 tells about the activities which I performed during my internship program at
Sabro. Chapter 6, explain the SWOT analysis of organization i.e. its strengths, weakness,
opportunities and threats. At the end in Chapter 7, the problems of Sabro Technologies
are discussed and proper suggestion of these problems is given. This report took one
month in completion, although time is a big constrains but I tried my best to cover all the
function of HR department in this report.
II
Chapter 01
INTRODUCTION OF STUDY
1.1 Background of studies
For completion of Master of Business Administration Degree it is important for all the
student of this discipline to put their theoretical knowledge to practice, for that purpose
the students are required to undergo six or seven weeks internship with an organization.
The only purpose of that internship is to acquire the student with practice of knowledge
of their discipline.
This report is about Sabro Technologies (Pvt) Ltd. of Islamabad Pakistan. Sabro was
established in 1968 and after it has expended their network, and become one of the
multinational company of Pakistan. It offers different range of product for their
customers.
1.2 Purpose of the Studies
The main purpose of the study is to gather relevant information to compile the internship
report on the Sabro (Pvt) Ltd. Islamabad Pakistan. To observe and collect relevant data in
a useful manner. Such as to work practically in the organization and to develop
interpersonal communication.
1
1.3 Scope of Studies
As an intern I worked at Sabro Technologies (Pvt) Ltd. And my main focus of study
research was on the HR department of the organization, there function activates and
operation such as recruitment, selection, employee’s performance and the overall
activities performed at Sabro.
1.4 Limitations
The period of seven weeks is a very limited time for understanding of HR
activities of the Sabro, so time pressure also limited my study.
The management of the company was not very supportive and cooperative
with me, and the information which they provide me is very limited.
The other limitation is that the Head Office of the Company is located at I-
9 Islamabad and the major HR activates are performed there.
1.5 Research Methodologies
This report is based on my seven weeks internship program in Sabro Technologies (Pvt)
Ltd. Islamabad Pakistan. The methodology used for the collection of data is the primary
and also the secondary. But the biggest source of collecting the information is my
2
personal observation during working with staff and discussion with them. The formally
arranged interviews and discussions gave me great knowledge in this regards.
Primary data
The data collected for the first time is known as primary data and I collect
that data from the following sources.
Personal observation
Interviews of staff
Secondary data
The data which undergo through statistical and mathematical techniques
and after it has been collected is known as secondary data.
Organization broacher
Internet
Sabro Profile
3
Chapter 02
OVERVIEW OF SABRO TECHNOLOGIES (PVT) LTD
2.1 SABRO Introduction and Background
Sabro (S.A Brothers (Pvt) Ltd.) is an ISO-9001 certified air-conditioning
manufacturing company located at Islamabad, Pakistan. This company was
established in 1968. There were three brothers named Sadiq, Siddique and Ashiq
who started this factory from Rs. 500 by taking loan. With the help of that loan they
started a small workshop in Satellite Town Rawalpindi and after the forty four year
continuous efforts and hard work that small workshop is now one of the leading
organization of Pakistan in the field of HVAC.
Today’s trend of making air-conditioning cinema building boosted the overall sales
of the air-conditioning industry. Sabro has the superior management and technical
personal which make right product for right person at right time according to the
customer’s satisfaction. Today Sabro is one of the leading air-conditioning
manufacturing organizations of Pakistan which has now achieving the goal of
exporting their products. For the past six years Sabro has been exporting their
product to middle and central Asia countries and is facing the American and
Japanese competition. In Pakistan Sabro is not only the name of quality and leader
of domestic competitor but is also irritating the foreign competition. In 1989 Sabro
introduce Concordia Split type air-conditioners which make Sabro visible to general
public.
4
Sabro is the leader in manufacturing of split air-conditioners, cold storage units, air
handling units, air cooled water chillers, humidifier units, window units, hot boiler
units, air curtain, electric geezers and motors. The more than 600, employees of
Sabro are working through out Pakistan, in manufacturing, designing, marketing,
repairing and installing of air conditions. Sabro are active in 6, businesses, varying
from room air-conditioner to domestic air conditioner that is from 1.0 to 40 ton and
from remote control to software application.
Sabro is the largest Air-conditioning manufacturer of Pakistan having the biggest
product rage. The company is enjoying good credibility in Multinationals,
governments and Private Corporation since 1968. Sabro provide special, standard
and nonstandard air-conditioning units from domestic to industrial requirement
range. Sabro Technologies is a subsidiary of the Sabro group of companies which is
engaged in manufacturing of Sheet Metal cutting dies, Draw dies, Moulds and other
various kinds of machines.
Sabro are producing over 3,500 air conditioners and 5,500 electric-motor every
year, and the output of the company is increasing day by day. In every fifth air
conditioners Sabro made components are being used in Pakistan.
Sabro have the world class solution for cooling systems such as personal and
domestic uses. Sabro brand name is more reliable, more efficient and well known in
the industrial air-conditioner for more than two decades.
5
2.2 History of Sabro Technologies
Sabro technologies were established in 1968, the three brothers laid down the
foundation of the company from the amount of Rs.500. In the early stage they only
take decision for manufacturing of coils, fans and other accessories. In 1970, Sabro
enhanced their production capacity, now they prepare Air Cooled Split unit up to
10HP and water Chillers up to 50HP. Next decade is the innovation and research
decade in which the R&D department was established. First mini split air condition,
water called chillers up to 40HP, hot water generator and installation of automatic
CNC machine. In 1990, Sabro extend their market worldwide and get the
certification of ISO 9000, in 1997. They introduce Split AC in plastic body and the
installation of 1800, ton plastic molding, 5/8 inch Fin punching machine and new
CNC control sheet punching press. The new millennium journey was started with a
vision in which they extend their product line. Development of microprocessor
controller in 2000, and launching of Sabro soft company in 2001, lunching of
polyurethane forming setup in 2004, launching of R&D village in 2005,
development of thermal break aluminum profile in commercial air handling units of
all types in 2006. Development of shell and tube type shell in 2007. Now Sabro has
expend their export to the Asian countries (Afghanistan, Kyrgyzstan, Kazakhstan,
Uzbekistan, Malaysia, Bangladesh, Iraq and Sri Lanka), Middle East (Bahrain, Saudi
Arabia, Kuwait, Qatar, Oman and UAE.), Africa (Kenya, Tanzania, Morocco and
Uganda.) Europe (England and Turkey).
6
2.3 Location of Sabro
Sabro Technologies (Pvt) LTD Head office is situated at Plot No. 270, Industrial
Triangle, Kahuta Road, Islamabad Pakistan.
Branches of Sabro Technologies are located in different cities of Pakistan. These cities
include Lahore, Karachi, Peshawar, Gujranawala and Faisalabad.
Lahore branch office of Sabro is located at house no.2, 17-A, Block E-1, Gulberg III
Lahore, Pakistan.
Karachi branch office of Sabro is located at 95-B, Block-7/8, D.C.H.S, Main Tipu Sultan
Road, Shabbirabad, Karachi, Pakistan.
Peshawar branch offices of Sabro Technologies are located at Sabro House, Adjacent
Runway, University Road, Peshawar, Pakistan.
Gujranawala branch office of Sabro is located at Sabro Palace, Bismillah Market, Near
GMS Factory Near Pindi Chowk GT Road Gujranawala.
And Faisalabad branch office of Sabro Technologies is located at Computer Arcade
Office 909-B, 2nd Floor, Office No. 63, Near Alfatah Complex, People Colony,
Faisalabad, Pakistan.
7
2.4 Mission Statement
Our mission at Sabro is
To follow all the laws and rules of Islam.
To fulfill our customer need and desire and manufacture good quality products
worth their price.
To support our employees through better career opportunity.
To provide the highest possible return on shareholders’ investments.
To sincerely back up our business alliances.
To contribute in the development and promotion of Hi-technology in the country.
To serve the society with fever and acts as a model for its uplift.
2.5 Vision Statement
To be standard as a company which provide its product and service quality, integrity and
commitment to all of its clientele and a mainstay in the business community?
2.6 Quality Policy
We want to increase our customers expectation through continues improvements in the
quality of our product and services.
8
2.7 Organizational Structure of Sabro
9
Board of Directors
Chairmain Sabro Companies
President / CEOSales Head
Manage Sales OperationManager Customer Services
Assistant Sales
P & D
Manage SalesSales Head Karachi
Sales Head Lahore
Sales Head Faisalabad
Manager PurchasePurchase Officer
Assistant Purchase
Manager FinanceAssistant Accountant
G. M. AdminHead of HR Admin
Assistant Admin
Field Officer Admin
V. P. OperationProduction Head
Assistant ProductionSheet Metal Shop
Coal Shop
ACR 1, 2, 3, 4
Paint Shop
Fan Shop
Electrical Shop
Manager PPCI / C Store
Assistant Store
Chief EngineerManager Design
DraftsmenAssistant Electrical Mechanical
Quality ManagerQuality AssistantQuality Inspector
Manager Application Engineer
Figure 01 Organizational Structure of Sabro
Chapter 03
DEPARTMENTS OF SABRO TECHNOLOGIES (Pvt) LTD
3 Introduction
In this chapter I briefly elaborated different departments of Sabro Technologies. This is a
multinational company; there are many departments in this company for every specific
field of work. Following are some of the important departments of Sabro Technologies.
3.1 Administration Department
Admin department of Sabro Technologies control the overall activities concerning the
factory. It consist of three peoples Mr.Dilbar Khan Head of HR and Admin Department,
Mr. Waseem Akhtar and Mr. Nadeem Khan. Major responsibilities of Administration
Department are:
Recording of Attendance
Maintenance of Stores
Maintenance of Factory
In and out and checking of material in Factory
Provide assistance to all departments regarding material
10
3.2 Human Resource Department
In every organization the HR Department is very important because nothing is done
except the human ware, it is the Human who made an organization not building .Human
Resource Department of Sabro consist of two peoples at this time. That is Mr.Dilbar
Khan and Mr.Nadeem Khan. Mr.Dilbar Khan is the Head of Human Resource
Department and is an HR manager from last three years. MR. Nadeem Khan is an
assistant of the HR Manager. Human Resource Department is very important in the Sabro
that’s why a well furnished office was made by the Sabro management for this
department. Human Resource Department is now recruiting more peoples to increase the
number and work of this department. HR Department of Sabro Technologies is fully
discussed in chapter four, their function and roles.
3.3 Finance and Accounts Department
At Sabro technologies the finance and accounts department are combine. Management of
Finance in and industry is very important. In proper handling of this area will lead to
insolvency despite of all the resources and opportunities. Accounts department that
records daily transactions of both appliances and power division that prepares financial
statements such as Balance sheets, Income Statements, Cash Flow Statements, etc
Functions of finance are:
Perform as a workstation and as an integrated circuit amongst all department of the
company.
Allocation of resources / funds throughout the organization.
11
Arrangement of money value resources or funds at favorable prices and on proper
time.
Dealing with banks, modarabas, investment firms, government section calculation
of the employee’s salaries and its recording.
Conducting of audit of the financial records which is prepare by the Accounts
department.
3.4 Production Department
Main responsibility of this department is to develop and make those products which are
required for any specific department. This department receive major plan for complete
financial year which show the models and numbers of every brand and deadline time for
each lot. Production department of STPL’s consist of different units according to
products. Following are some of the names of Sabro production department.
Sheet Metal Shop
Coil Shop
Paint Shop
ACR 1,2,3,4
Paint Shop
Fan Shop
Electrical Shop
12
3.5 Researches and Development Department
A department of active and professional people, having distinctive characteristics, that
always remains engaged in designing goods better than before. This department experts
fully co ordinate with the marketing department and very efficiently and effectively
interprets their findings for introducing new features in the same products or designing
and launching new products into the markets. After interpreting plans and getting
approvals it forwards the design and procedure to the production department. Sabro
believes in quality and quality can only be achieved by continuous improvement. Our
newly established department consists of electrical and mechanical engineers who are
devoted, dedicated, determined and enthusiastic. Sabro’s R&D department has two top
priorities:
Researching and developing basic technologies that can be used to create future
business opportunities.
Researching and developing new technologies that can be utilized to further
expand current business opportunities
3.6 Purchase Department
Sabro Technologies has very good methods for production of goods. They purchase raw
material for their products not only from Pakistan but also from Asian countries. That’s
why STPL has two different departments for purchasing that’s are:
Local Purchase
Foreign Purchase
13
3.6.1 Local Purchase
Local Purchase department is that department which is responsible for the acquisition of
raw materials which are used in making of various products of factory. Such products
includes from small things to large such as from nails to metal sheets. In the beginning of
each and every financial year this department receives a major plan from all over
management of the factory, which shows all the material that are required for each
product. Major plan also show the time limit and dates for raw material.
Procurement team makes small milestones and benchmarks from the major raw material
plan for the purpose to ease them to remember the limit which they required and this
department also reminds finance department for the proper arrangement of finance for
this purchase.
3.6.2 Foreign Purchase
Responsibilities of both the Local and Foreign purchase department are same but the
difference is only in dimension that the foreign purchase department arranges raw
material from abroad. This department also receive plan as local purchase for complete
financial year and on the basis of that they develop milestones to execute the plan
properly. It is one of the important function of this department to purchase raw material
in low cost which satisfy the need of production and finance department both in quality
as well as monetary terms.
14
3.7 IT Department
Major responsibilities of IT department at STPL are:
Detection of problems and their maintenance in computers.
Software’s installation and deletion.
Copy Right protection and their issuance.
Maintenance and development of internal network.
Maintenance and development of domain for every one.
Creation and enhancement of internal software.
Issuance of Software and hardware
3.8 Packaging Department
In Sabro Technologies there are two different packaging departments one for the
Appliances such as Refrigerators and other one for the power products such as
Transformers, switchgears and energy meters. Both of the departments take care of all
safety requirements for the best delivery of goods to the customer and always do the final
audit of the finalized goods before distribution.
3.9 Design Department
Design department of Sabro makes and draw different types of design for the different
type of products of Sabro. This department design different parts of Air conditioner.
15
3.10 Quality Control Department
Sabro gives great importance to delivery of high quality products to its customers. Design
and manufacturing facilities follow ISO 9001:2000 procedures. All products
manufactured must pass stringent quality testing procedures. A standard inspection and
testing plan is followed for all jobs.
3.11 Quality Assurance Department
Quality is a continuous process at Sabro where organization-wide action is taken to
increase effectiveness and efficiency of the engineering process. This means that they
continuously concentrate on improving our own performance to ensure that their clients
continuously benefit from it. Their aim is to meet their expectations every time. They
take proactive stance towards quality moving beyond Quality Control to provide Quality
Assurance, so you can be confident that your requirements will be met with best quality
consistently.
3.12 Marketing Department
Talking about Sabro marketing department, it always been and still it is considered to be
a backbone of the Appliances business unit. This department is having most hardworking
and talented staff that remain busy in searching new markets for its products and always
initiates different production programs to satisfy its customer needs and preferences. This
Marketing department has un-beatable marketing forces that on regular basis conduct
market surveys in order to look into Competitors position, customer’s taste, retailers and
16
wholesalers needs under the supervision of four professional marketing managers plus
General and Senior Marketing Managers.
At time when the forces feel a change in customer preferences they immediately
undertake distinctive steps and make new sales plans. Such plans are forwarded to each
respective department by the marketing department in order to get their requirements to
make the plan successful.
3.13 After Sales Department
After Sales Services is another active department of Sabro’s which gives a sense of care
to its customer whenever it feel things are going wrong or against its desire. This
department has their own technicians available for the services in the company as well as
having after sales centers outside the company at different places in the cities. This
department assures 100 percent parts replacement of appliances if complains fall in the
warranty time period.
17
Chapter 04
HUMAN RESOURCE DEPARTMET OF STPL
4.1 Human Resource Department
In every organization the HR Department is very important because nothing is done
except the human ware, it is the Human who made an organization not building .Human
Resource Department of Sabro consist of two peoples at this time. That is Mr.Dilbar
Khan and Mr.Nadeem Khan. Mr.Dilbar Khan is the Head of Human Resource
Department and is an HR manager from last three years. MR. Nadeem Khan is an
assistant of the HR Manager. Human Resource Department is very important in the Sabro
that’s why a well furnished office was made by the Sabro management for this
department. Human Resource Department is now recruiting more peoples to increase the
number and work of this department.
4.2 Human Resource Information System
The newly introduce computerized system used for the information about human
resource. This system is used for the fair implementation of HR activities and their
functions which are built around a central comprehensive database of all the employees
and is linked to all areas of Human Resource Management. This helps in smooth
functions of HR.
18
4.3 Mission and Vision Statement of HR Department
Our mission at Sabro is to provide quality Human Resource services to develop, attract,
motivate and retain diverse workforce and a supportive work environment. This is done
by giving emphasis on the customer service and better communication with the
employees of the organization. Our vision at Sabro is to ensure a healthy, qualified,
diverse and highly motivated workforce who focused on achieving the critical outcomes
through cost effective and result oriented HR services, policies and practices.
4.4 Hierarchy of HR Department at Sabro
19
General Manager Admin
Head of HR Admin
Assistant Admin Field Officer Admin
Figure 02 Hierarchy of HR Department at Sabro
4.5 Functions and Roles of the HR Department at STPL
Following are some of the important roles and functions of the HR department at STPL
Islamabad.
Supply of work force and manpower
Policies formulation and initiation
Testing jobs and application for that job
Recruitment and selection
Performance appraisal and compensation
Carrier development
Record maintaining of employees
Health and Safety programs
Training and Development
Advice and control
Transfer, promotion and layoff
Services and Benefits
Personnel information system
Personnel and Behavior Research
These are the roles and functions which are performed by the HR department of Sabro
Technologies (Pvt) Ltd.
20
4.6 Employees Categories at STPL
In Sabro the employees are categorize under the following heads.
4.6.1 Permanent Employees:
Permanent employee is those employees who are given an appointment letter of STPL.
And there jobs are expected to continue for a period of more than 9 months. The numbers
of permanent employees are 70 at STPL Islamabad.
4.6.2 Contractor Employees:
Contract employees are those employees who are appointed by the contractor of Sabro
(Pvt) Ltd, and given with an appointment letter of the concerned contractor. The numbers
of contract employees are 160 at STPL Islamabad.
4.6.3 Contract or Seasonal Employees:
These are those employees whose length of services is less than 9 months. The numbers
of such employees at STPL are 20.
21
4.6.4 Probationer:
Probation is a period of six months which is given to both the permanent and contract
employees and after the completion of this period the employees are considered as
probationer.
4.6.5 Relatives of Employees
Employment for the close relatives such as Son, Father, First Cousins and Uncle is
strictly prohibited.
4.7 Human Resource Inventory
Number of Employees at STPL Islamabad 250
Number of permanent employees 70
Number of contract employees 160
Number of semi contract employees 20
4.8 Recruitment and Selection
Recruitment and selection are very important functions of the HR department, Sabro
perform these function in the following manners.
22
4.8.1 Planning for Recruitment process
The recruitment process is an important function of the HR department and they plans for
it.
4.8.2 Decision on Vacancies
Any department in the organization who need Human Resource they request to the HR
department and send their required demand to HR department to increase their inventory.
Before deciding on the existence of a vacancy, HR department checks that whether they
need and that need are full fill by the existing employees and if the existing employees
doesn’t full fill the requirement then they go for the external source and for that they
checks whether it should be permanent, full-time or whether it should be a contract
employees.
4.8.3 Job Description and Specification
If an HR department need an inventory for that they specify the qualification and
experiences that what the job holder should performed, where to perform when and how
to perform. If a candidate qualifies the required skills and abilities the HR department
selects that candidate for the required job.
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4.9 Recruitment Sources:
The STPL Recruit employees from two sources that is internal and external.
4.9.1 Internal Source
Internal recruitment is that type of recruitment in which the Sabro upgrade their present
employees. Sabro uses this method because the existing or present employees know more
about the organization and its activities.
4.9.1.1 Direct Applicants and Referrals
Direct Applicants are the peoples who apply for vacancy without promoting from the
organization while Referrals are those peoples who are prompted to apply by someone
within the organization. STPL use both the sources for recruitment.
4.9.1 External Source
External Source of is that type of recruiting in which if the current or existing employee
of the organization doesn’t fulfill the need then the HR department select employees from
external source that is from outside of the organization.
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4.9.2.1 Advertisements in Newspapers (Blind Box Ads)
HR department of STPL gives BLIND BOX Ads in the major newspapers of the country.
The management of STPL believes that this generate less desirable recruits and at a grater
expense. The HR manager of STPL noted to sight the two important points while
advertising a job that is what to say and to whom to say. In Sabro most of the posts are of
the special nature, so the company advertises these posts on Sunday in the Daily “Jung”
and the “Dawn”. In these advertisements the company only gave the PO Box#, and keeps
confidential the name of the company, because to avoid any sort of referrals that affects
their choice of the applicant.
4.10 Short List of Potential Candidates
The HR Management of Sabro decides on the length of the short-list that includes five or
six peoples mostly. The number of the short listed candidates varies from job to job but
mostly their number is 5 or 6 peoples. The HR managers also take help in this regard
from other staff such as supervisors and managers in the organization. The HR managers
also look the following when reading an application.
How well-matched is the candidate to the requirements
And the quality of Presentation.
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4.11 Interviewing the Potential Candidates
The screened candidates are then called for interviews. The date and time for the
interview are arranged by the HR mangers and the candidate must be appears for the
interview on that date. The questions which are asked in the interview are designed in
such a way to judge the personality and ability of the candidate. The interview is some
time structure and some time it is unstructured this depend on the nature of the job which
is under consideration. The interview which is conducted by the head of the department is
of technical nature interview while the HR management in Sabro mostly conducts the
non-technical interviews. But in most cases both the parties are present while taking an
interview.
4.12 The Screening Process
After taking the initial interview the set of panelists screened out the potential candidates
to minimize chances of error in selecting the candidates. The HR management in this
regard sometimes keeps a small number of candidates in reserve.
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4.13 Personal Assessment Criteria:
Scale Office Staff Qualification Experience
1 Peon, Office Boy, S.Gurd Literate Preferable
2 Drivers Metric/FA Driving Licence+2years+Test
3 Store Keeper, Purchaser &
Telephone Operator
FA 2 years of experience of Sabro
In the relevant field+ test
4 Accounts, Cashier, Sales and
Marketing Assistant
Graduation 3 years experience in the relevant
field+ Test
5 Accountant, C.S Officer, Excise
Officer, Store Officer
Graduation 5 years experience of Sabro in
relevant field + Test
6 Admin Officer, Accounts Officer B.Com / BSc 5 years experience of Sabro in
relevant field + Test
7 Trainee Executive, Executive,
Secretary, HRO
Post Graduate,
ICMA, CA Inter
Fresh
8 Executive, Exe Finance, Exe Sales,
Exe Marketing
Post Graduate,
ICMA, CA Inter
3 years or 1 year in Sabro
9 Manager Post Graduate,
ICMA, CA Inter
7 years or 5 years in Sabro as
Executive + Test
10 AVP Post Graduate,
ICMA, CA Inter
5 years in Sabro as Manager (Only
promotional post)
Scale Factory Staff Qualification Experience
1 Helper (Technical) Metric Fresh
2 Semi Skilled Worker Metric 3 years in Sabro + Test by promotion
committee
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3 Skilled Worker / Mechanic /
Welder
Technical
Diploma
Fresh or 5 years in Sabro + Test by
Promotion Committee
4 Junior Supervisor / Quality
Inspector
Technical
Diploma /
Graduation
2 years in Sabro + Test or DAE + 2
years in Sabro
5 Design Supervisor / Associate
Engineer / J. Sales Engineer
DAE / Technical
Diploma
DEA Fresh / 5 years in Sabro + Test
6 Tech Supervisor / Web Developer /
Foreman / Production Coordinator
DAE / Technical
Diploma
7 years in Sabro + Test
7 Trainee Engineer /
Gen. Forman
BSc / BE
/MCS / BCS
Fresh
8 Engineer / Software Developer MCS / BCS /
BSc / BE / DAE
3 years or Trainee Eng + 1 year in
Sabro / DAE + Test or DAE + 15
years in Sabro
9 Manager / Mould Designer BSc / BE / MSC
Eng
7 years or 5 years in Sabro as
Executive + Test or DAE
10 AVP BSc / BE / MSC
Eng
5 years as a Manager in Sabro
Note
All promotions are subject to the vacant post and minimum criteria are as mentioned in the
above given table. Promotion test will be designed by promotion committee keeping in
view the skill required for the post.
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Figure 03 Personal Assessment Criteria
4.14 Training
Training teaches the organization members that how to perform their current job and
helping them to acquire the knowledge and skill which make them effective.
4.14.1Employees Training
Training is the organized procedure used for the enhancement of knowledge and skills of
the organization members. Every employee hired by the organization required some sort
of training for performing their job efficiently. Training will be given by the trainer to the
employees and many firms provide copies of description and specification for the job
which they have assigned to the employees.
4.14.2 Designing Effective Training System
Sabro management uses the “Instructional Design Process” which refers to a systematic
approach for developing the training programs. This program consists of the following
things:
4.14.2.1 Conducting Need Assessment
The assessment of employees in organization that what type of training and development
are required and what type of skill and knowledge they need to acquire. Different
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pressure points suggest that whether training is necessary that are the new technology,
performance problems, new legislation, job redesign, new services and the lack of skills
in the employees which compile the organization members to give training to their
employees. Some sort of training is very necessary for every organization such as fire-
fighting training for every department and there are fire-fighting teams which consist of
the young guys who are specially train for the fire-fighting.
4.14.2.2Creating Learning Environment
The training program applied by the HR manager includes specific learning principles. In
the following lines some of the principles are given which is followed by the Sabro
Technologies (Pvt) Ltd.
Employees of the organization need to know that why they should learn
Employees use their own experiences for learning
Employees need to have the opportunities to practice
Employees Feedback
4.15 Training Methods
Different types of methods are used by the STPL for training such as class room
instruction, distance learning and audiovisual techniques which is given below.
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4.15.1Classroom Instruction
In such type of training the instructions are given to the employees in a control
environment in a specific time at a specific place. The trainer gave a lecture to the group
and the participant is allowed with question and answer periods and discussion. In this
method the instructor tries to build the active participation of the employees, gave job
related examples and exercises into a classroom instruction so that trainees will learn
and use the information which they got during the training. Such type of training is done
for the managerial type job.
4.15.2 Distance Learning
STPL provide Distance learning training in which information are providing by the
Head Office about new services, procedures or policies as well as skills. This involves
two way communications; it includes audio, video and document conferencing.
4.15.3 Audio Visual Techniques
This method of training is very common in STPL it involves Slides, Video and
Overheads. In this method the video is more popular method it is used by the
organization for improving the communication skills, customer service skills,
interviewing skills. This method stats that how the procedures are follow.
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4.15.4 On The Job Training
Training on the work setting is known as on the job training. STPL used this method for
the newly hired employees. This method is used for the upgrading the skills of
employees when new technology introduced in the organization. Basic philosophy of the
HR management of STPL is that employees lean more through observing the peer
managers performing the job and trying to imitate their behavior.
4.15.5 Off The Job Training
Off the job training is that type of training in which the training is given to the
employees not on the work place, this type of training is give to the executive level of
employees and such training are not more than two to three days.
4.16 Employees Development
HR manger of STPL ensures that employees obtain necessary skills and abilities to
perform the current and future jobs, because of the new technology will rapidly change
in this field. The STPL believes in team work, for that managers and employees develop
skills to be successful in a team environment. The HR management of Sabro helps
employees to identify their interest in the work and goals and cope with issues such as
balancing work and family roles. This area of the human resource management of Sabro
deals with.
Sabro HR mangers ensure that employees need the skill to perform their current
job.
Sabro HR managers prepare their employees for future work roles
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Sabro HR managers identify the interests of employees, goals, values and other
career issues.
4.16.1 Formal Education
Formal degree or education programs are offered for the supervisors, executives and
middle managers and also special programs for particular jobs are also offered at Sabro.
Sabro provides 50% loan to their mangers, supervisor, or even to their lover level
management for the education purpose. Some time if the education help in skill
development the company fully support the employees in this regard. The company also
gave loan from its own budget for the formal education.
4.17 Orientation
Orientation is the process of introducing new employees to the organization and their
work unit. When new employee comes to STPL they make an orientation program for
them. They provide them a hand book, copies of necessary documents, organizational
charts and job description etc to the new employees about the organization. Head of the
department and HR management also introduce the new recruited employees to their
concerned department and their work place. STPL also make the arrangement of an
informal tea for the new recruited employees which is also attend by the higher
management such as executives and vice president. STPL give more stress on the
following points in an orientation.
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Emphasizing on the procedures and policies of organization.
Illustrating performance standards
Provision of balance work place
4.18 Employees Transfer at Sabro
The moment of an employees from one position to another position, whether inter or intra
departmental is known as transfer. In Sabro the transfer of employees falls into three
categories.
3.18.1 Promotion
If a position is vacant and that vacant position is filled by a current employee who moves
from one lower position to a higher position is known as promotion.
4.18.2 Lateral
Lateral transfer is that type of transfer in which an employee’s moves to another job at
the same level. Such type of transfer is very common at STPL.
4.18.3Interdepartmental Transfer
That type of transfer in which a vacant position is filled by an employee who is transfer
from one department to another department.
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4.19 Compensation and Benefits
Companies offer different type of benefits and incentives to their employees in exchange
of quality customer service. The pay and benefits are used to reward employee’s
membership in the company to attract the new potential employees. The positive
influence of new technology, new work designs and the quality movement on
productivity can be damage if the employees of organization are not satisfied with the
pay and benefits which the company provides or the pay and benefits are not equally
distributed by the company.
4.20 Wages or Salaries Plan
Salaries and wages are the important function of the management, which deals all aspects
of employee’s compensation. Wages or salaries are the remuneration given to the
employees in return of their services which they provide to the company. The salaries or
wages depends upon the position of the job if a job is of high value the remuneration paid
for that job is definitely high and if the position of the job is of low value the
remuneration will be lower. This measurement can be used as a foundation for the
calculation or determination of the wage or salary. Jobs are being evaluated on the basis
of physical and mental efforts of employees and their accountability, that’s why the job
are categorized in different grades according to the measurable differences in leaves and
responsibilities of duties. Sabro determined its wages and salaries structure to attract,
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motivate and retain the quality employee keeping in mind the local market the financial
commitment of the establishment. Minimum wage salary at Sabro is Rs.7000 per month.
4.20.1 Working Hours and Overtime at Sabro
Normal working hours at Sabro are 9 hours in a day which include 1 hour of break. 48
hours in a week. If any worker of scale 4 working hours exceed from normal 48 hours,
that is consider as overtime of the employee. For the drivers the minimum pay is 2900
and the overtime paid to them are single which is given to them according their basic pay.
If work is more at any department, the head of the department issue a written permission
to the employee to do an overtime when it is necessary even on holiday. Rate of overtime
payment will be given to any employee on pro rata basis according to the basis salary i.e.
Basic Salary / 30*2
4.20.2 Deduction from Salaries or wages
Following deduction is made from salaries and wages.
Fine
Absence from duty
Anything which is in the custody of an employee and will damage these
losses shall be deducted from the salary of that employee.
Deduction under the court order
Deduction for recovery of advance
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Deduction for the adjustment of over payment of wages.
4.21 Equal Employment Opportunities Issue at STPL
Equal employment opportunities at STPL based on.
Age
Race
Gender
Religion
Disability
Nationality
STPL has one of the major diversity issues that there is gender discrimination, there is no
female working in STPL, which are very surprising for such big organization. The 2nd
thing which I noted at STPL is that the average age limit in the organization is from 20 to
30 years. The third thing which I note is that they do not entertain the disable peoples at
STPL.
4.22 Employee Benefits
STPL provide the following benefits to its employees and
management.
Medical Facility and Allowances
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Pick and Drop Facility
Uniform and House Rent Allowance
Eid Allowance
Death Insurance
Disability Insurance
Pension
4.22.1 Medical Facility and Allowances
STPL provide medical facility and allowances to their employees, medical allowance is
given from grade seven and onward.
4.22.2 Pick and Drop Facility
STPL provide the pick and facility for both the worker and for the management of the
factory. Buses for the workers, carriers and cars for the managerial staff.
4.22.3 Uniform and House Rent Allowance
STPL provide both uniform and house rent allowance to their employees. These
allowances are given from scale 1 to scale 12 employees.
4.22.4 Eid Allowance
Eid allowance is given to the employees according to their base pay scale mostly on Eid-
Ul-Fitar.
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4.22.5 Death and Disability Insurance
The employees are insured both in case of death and disability. Employees are insured for
the disability during the work from employer side. Permanent injury is insured along with
the medical treatment.
4.22.6 Pension
STPL provide pension to all the permanent employees who completed their ten year of
service.
4.23 Performance Appraisals
The HR manger at STPL set clear cut standards of performance appraisal for every job; it
involves getting information that how each employee is performing their job. And will
give reward to those employees who perform their job effectively and will improve the
performance of those who are not efficient and will provide a justification that why
employees are performing poorly. The performance of the employees based on their
qualification and experiences. Performance of the employees is calculated on the formula
of desired performance less Actual performance. The new performance appraisal system
developed at STPL is the 360 degree appraisal system, presently the STPL use the annual
appraisal system but now they are thinking to start monthly performance evaluation
system which will lead the organization towards success.
4.23.1 Purpose of the Performance Appraisal
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There are two basic purpose of the performance appraisal system at STPL one is to
increase the performance of employee and the other is employees development.
4.24 Performance Management System
Performance management system is a continuous process of identifying, measuring and
developing the performance of individual and team and linking that performance with the
organizational goals. At STPL the performance management system of employees
consists of the processes that is used to identify measure, improve, encourage, evaluate
and employee’s performance. Professionals of the HR department of the STPL provide
the following guidelines.
Give complete information to the employees about their
performance
Clarify the development needs of employees
Identify that what the organization needs
The performance of personal are documented
4.24.1 Identifying and measuring the Performance of employees
Employee’s performance show that what the employees do or does not do. In STPL the
employee’s performance consist of the following things.
Quality of output
Quantity of output
Time in which the output are produce
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Customer satisfaction
Cooperation
Except these dimension of performance some general are also applied to various jobs.
Specific job performance of the job identifies the most important element in a job. STPL
use more than one job criteria for a job. Some time one criteria is more important for one
organization and that is not so much important for the other organization. So we give
weights to show the importance of several job criteria in a job. At STPL the following
system is used for weighting.
Development of employee 35%
Increase in revenue 20%
Satisfaction of customer 30%
Cost control 15%
Total Performance Management 100%
Chapter 5
MY INTERNSHIP ACTIVITIES
5.1 Introduction
41
For completion of MBA degree an internship program of seven or eight week is essential
for every student. As my specialization in MBA is HRM therefore I join the HR
department of Sabro Technologies (Pvt) LTD. Sabro is one of the largest air-condition
manufacturing company and I feel that my internship requirement will be fulfill there
fully, that’s why I join this organization. During my internship program I have done the
following activities as internee in the HR department of STPL.
5.2 Marking of Attendance
Marking of the employee and management attendance in the concerned register of Sabro
technologies is my first activity and I performed this activity in a well manner. There are
22, shops and different department in STPL. In charge of every department and shop is
responsible for sending daily attendance and over time record to the Admin and HR
department. According to the attendance sheets received, assistant Admin officer guide
me and I fills the attendance in concerned register, office staff sign in front of their names
at reception. After recording the attendance in the register these attendances will we put
in the computer software MRP which calculate the salary of each employee
automatically?
5.3 Fulfilling Demand of Employees and Management
Fulfilling the demand of employees and management is another activity which I
performed during my internship program at Sabro Technologies. If any employee or
management of STPL needs any type of things such as paper, pen, pencil, stapler, first
aid medicine and cleaning and washing sops I will gave them if they bring a voucher of
their required item and that voucher will be dually sign by the concerned authority. My
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duty at this stage is that I will check the sign of concerned authority on the voucher also
check the quantity and date on the voucher, if these things are correct I will then issued
him these things.
5.4 Calculating and recording of over time
Calculating the employee’s overtime and recording of this overtime is also my job at
Sabro. If it is necessary to stop any worker after factory hours for work, department in
charge fills overtime form and sign it from the general foreman and send it to the Admin
and HR department. In the HR department the calculation of overtime of employees is
my job responsibility. I calculate the monthly overtime record it and then prepare salaries
from it, the manager Admin and HR department send the monthly overtime report to the
president. Recording of the overtime of personal will be kept in register No:
ADMIN/REG-10 with Admin department.
5.5 Provision of First Aid
Provision of first aid in the factory to employees is also my duties at my internship
program. First aid box is available in every department for minor incidents. Approved
medicines and bandage is available in these boxes. Record of use of these medicines is
maintained in forms present in these boxes. Necessary medicines are provided in these
boxes in first week of every month. Record of these medicines is kept in ADMIN and HR
department in concerned files is my job responsibility. And if any worker is severely
43
injured, he is sent to social security hospital. Otherwise he is treated in nearby hospital on
company’s expenses.
5.6 Issuance of EOBI and Social Security Card
Social security card is issued to the regular and contract employees for medical facility.
EOBI cards are issued to the regular and contract employers for pension /old age grant of
benefits. Necessary steps are taken keep in view the age and duration of services of the
workers according to the rules. Being the internee in the STPL I record these activities.
Recording of the EOBI and social security cards is kept in Admin and HR department.
Separate record is maintained for EOBI and security cards.
5.7 Receiving and Distribution of Mail
During my internship program at Sabro I also performed the activity of receiving and
distribution of company mail and recording of them in respective register. And if any
type of mail is essential to any concerned authority I will forward that message to that
concerned authority in the company and also outside the company. As the Head office of
company is located at I-9 Islamabad, so different messages come from the general
manger and also from the voice president for different concerned authority then I will
forward that message to respective person.
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5.8 Monitoring the Workforce
Monitoring of the workforce is not so much easy activity which I performed during my
internship program, but this activity is much easier for me with the help of Mr. Dilbar
Khan Head of the HR department. Whenever he goes on the visits of factory to check the
performance of employees he also call me and he guide me that how you can take much
work from an employees or worker, and how can u guide an employee at work place.
When a worker cannot performed their work according to the requirement, then we will
guide them to performed in a proper way and if we cannot understand that work then we
will call the concerned deferment authority then they will guide them in more accurate
way and through this we will get more output through low cost.
5.9 Acting as Receptionist
Being the internee in Sabro technologies I also performed the activity of receptionist.
Two days at Sabro i did this job in a well manner. Any person or party comes to Sabro I
welcome them. And if they need any king of information about Sabro I will tell them and
guide them in a proper way, and if they want to visit any part or department of
organization I will call that department and they give a guide for their guidance.
I performed the above activities at Sabro technologies in a proper way with the help of
concerned authority, because their guidance is available for me throughout duties hours
and they always guide me in a proper way in performing my duties as internee in STPL.
45
Chapter 06
SWOT ANALYSIS OF SABRO TECHNOLOGIES (Pvt) LTD
Following are the Strengths, Weakness, Opportunities and Threats of STPL which are
fully discussed below.
6.1 StrengthsSabro Technologies (Pvt) LTD posses following strengths in a competitive position in the
following areas and will do better than their competitors. Below are the main points of
STPL in which they are strong.
Strong brand image
Dealer Network is very Strong
Strong quality, sale and service
46
Market leader in Commercial & Split type AC
Pakistan largest AC manufacturing company
Strong position in home appliances
Management is very strong
Authority of Distribution
Strong R & D department
Provide free services to the customers
6.1.1 Strong Bran Image
STPL created the strong brand image in their customer mind through high quality and
low price strategy. STPL customer always prefer to buy only Sabro home appliances such
as Split AC, Television and their commercial type AC when they want to buy. Sabro is
one of the most popular company of Pakistan and everyone knows their products what
they make for them and their brand name, that is the main reason that Sabro
manufactured AC selling rate are very high in the market compare to their competitors.
6.1.2 Sabro Strong Network Dealer
One of the plus point of STPL is that it has a strong network dealer in the market. There
are different dealer of Sabro. Their dealers are always trying to sell out the STPL
appliance to their customer because the dealer know about their high margin of profit in
the STPL product appliance. They get more money when they sell out more Sabro
product. Sabro Management also provides more incentives to their dealers than their
competitor do. Dealers of Sabro are very conscious about their product and they guide
47
their customer in buying Sabro appliances and also tell them more quality of Sabro
product which they will gave as compare to other company product.
6.1.3 Strong Quality and their Sale and Service
STPL position is very strong that it provides the superior quality to the customers. This
makes a sense in the customer mind that the products of Sabro are better in quality from
other company products. Sabro Technologies also provide after sale service to their
customers which make the customer more delight. This is an other way of product
advertisement because when the customer is satisfied from a product then they tell about
it to other peoples to buy Sabro products. Which make free publicity of STPL products?
6.1.4 Market leader in Commercial type & Split AC
It is another strong point that Sabro is a market leader in Commercial and Split type AC.
Split and Commercial type AC of Sabro is more demanded by the customers than its
competitor’s air conditioners because it has more durability in operating systems and
cools the room and aria in few minutes. Sabro always strives to provide the innovative
features in AC. Sabro air conditioner is cheaper and has a higher quality than others AC.
That’s why customers always purchase Sabro Commercial and Split air conditioners.
6.1.5 Pakistan largest AC Manufacturing Company
Sabro is one of the largest Air conditioner manufacturing company. STPL always strives
to pursue the strategies adopted bye the competitors. As a consequence the price war
starts among the companies for that each and every company reduce their prices and tries
48
to increase their product sales. STPL also making more efforts for the better quality and
improments than its competitor.
6.1.6 Strong Grip in Home Appliance
STPL is one of those companies which have strong grip in the home appliance such as
Split AC, Television, DVD Players etc which is a strong point for Sabro company.
STPL is penetrating market by introducing the new home appliance like Split AC and
always trying to get the maximum market shares in the home appliances.
6.1.7 Management is very Strong
Strong management is another plus point for Sabro that it has a Strong management. The
employees of Sabro are more competent and are fully skill and knowledge. They always
cooperate with their top management to achieve their goals which are assigned to him.
Employees of Sabro are well and fully aware about the company objectives and that’s
why they are fully committed to the company development.
6.1.8 Authority of Distribution
Top management of Sabro Technologies assigns power to their subordinates for
achieving the marketing objectives in a specified period of time. As we know that every
manger has an authority which they use to achieve their goals. They can easily handle the
customer complaints and try their best to satisfy them in good way. So this is a very
strong point of Sabro Technologies that there is the concept of decentralization.
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6.1.9 Strong R & D Department
Sabro Technologies has a very strong Research and Development Department which
continuously trying to develop new features in their products. Research and Development
Department spends huge amount of money for the development of their products.
Research and Development Department makes research for introducing new product and
asks the customer that what they want extra in their products.
For this they hire the highly qualified personal in the R&D department. This makes Sabro
more strong.
6.1.10 Provide Free Customer Service
STPL provides free customer services of one year to their customers. That is also one
reason that people buy Sabro products due to its free services and it becomes loyal
customer for STPL. STPL always provides help to their customer relating any problem
such as repairing AC and other items, and this company makes always the efforts to
satisfy their customers.
6.2 Weaknesses
Such like other companies Sabro Technologies also have some weakness in their business
operation. If STPL overcome this weakness then it can become a market leader in the
home appliance and Commercial AC. Sabro Technologies lose their competitive edge
due to following points.
Lack of Advertisement
System variations
50
Lack of Product Range
Less Utilization of capacity
Financial Problems
6.2.1 Lack of Advertisement
One of the major weaknesses of Sabro Technologies is that it never makes advertisement
on TV or Print Media. Which create a big hurdle for it in selling their products and
customer does not know the changes which are made in the products by company from
time to time. Sabro Company is not in a position that it made advertising of their products
wide range because of its high cash requirement towards production side. Due to this
problem the company always makes some strong efforts to develop better relationship
with dealers.
6.2.2 System Variations
It is also the main weakness of STPL that there are rapidly a change in polices of selling
the products. That’s creates problems for the selling team how to sell the products to the
dealers because the top management requires the urgent amount of money. So selling
team sells the products sometimes on hard cash that will reduce the prices of products
that gives the benefits to the dealers and creates problems for the management.
6.2.3 Lack of Product Range
As STPL introduce more products for their customer but still these are less and there is
more need to develop new customer product times such like washing machines, vacuum
51
cleaner and other items. Due to this lack of product range company cannot earn more
profit in the market because in the market there are more need of consumer product that’s
why customer say that if company invest more in these products then we can keep all
Sabro item and we don’t have to kept other companies products.
6.2.4 Less Utilization of Capacity
Company has not much finance that they cannot utilize all its resources on its full
capacity. It increases the cost of products per unit that decreases the profit margin of each
consumer item. Sometimes the company cannot allocate their resources according to the
company production department requirement that’s becomes the problem for the
complete utilization of company resource. For the company it is also the main point of
weakness.
6.2.5 Financial Problems
Sometimes STPL faces the financial problems the stocks of company are so much piled
up in the stores which creates problem of cash flow because when the stock are not sold
and production process are still continue 24 hours a day then the company faces such
problems. For that the companies aggressively research sources of cash and stress the
dealers to sell Sabro products to end consumers. Sometimes company sells their product
on credit bases to the dealers and gives them high margin of profit. That’s why company
is facing financial problems and cannot pay attention on alternative resources which help
in reducing company stocks. That is the customer demand and that’s why it is main
reason of company weakness.
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6.3 Opportunities
For Sabro Technologies there are a lot of opportunities available for the expansion of
there business. If the company realize that available opportunities then it will be more
fruitful and profitable for Sabro. And if the company cannot take advantage of these
available opportunities then it will lose its competitive position and high profit in the
market. And competitors will give him tough time to pursuing opportunities which are
adopted by them. Following are the available opportunities for Sabro Technologies.
Market Exploration in Pakistan.
Increase in Product Range.
Opportunity to Export their product.
Opportunity to increase their production capacity.
6.3.1 Market Exploration in Pakistan
STPL has the opportunity to explore over all market of Pakistan. And for that STPL
introduce its products in all the cities of Pakistan but still there are so many places which
have the capacity to absorb Sabro products. That places are the tribal areas of Pakistan
such as tribal area of KPK and northern areas of Punjab and KKP and central area of
SIND. If Sabro technologies introduces their products in there areas of Pakistan it can get
a large amount of profit and increase its market shares.
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6.3.2 Increase in Product Range
Main opportunity available for Sabro is to increase its product range which will be more
profitable for Sabro technologies. There are more needs to develop new consumer items
like Sabro Vacuum Cleaner, Sabro Washing Machines and such like other items. Due to
this lack of product range, Sabro Company cannot earn more profit because consumers
have high demand of these products. If STPL does not take this opportunity then it will
lose high margin of market share and profit. This will increase the efficiency of
employees and reduce fixed cost.
6.3.3 Opportunity to Export their Product
For Sabro company it is also a big opportunity to export their products to other countries
such as INDIA, IRAN and USA. This will not only reduce the on one market but will
also increase market shares and profits. Its will help the company to spread fixed cost on
all of its production which will reduce total cost and company will enjoy high profit.
6.3.4 Opportunity to increase their Production Line
Sabro Technologies have the opportunity to expend and increase their production level
which will increase employees efficiency and will also reduce total cost. If company
cannot allocate the resources according to the requirement of production department
which create a problem for complete utilization of resources. Company looks market
condition and after that it will produce products.
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6.4 Threats
In this competitive era Sabro Technologies face many threats as well, these threats are
both for present and futures situations. And for that company need to make its policies
and strategies according to these threats. Following are some of the threats which face to
STPL.
Strong Competition
Introducation of China’s Product in the market
Price War
Slow growth rate in Pakistan
Government Instability
Tax Department
World Trade Organization
Investors
6.4.1 Strong Competition
Competition for home appliances is very strong in the market. And every company want
to achieve 1st Position in the market for maximum shares. Different companies adopt
different strategies for the selling of their products. It increase the bargaining power of
the buyers and reduces the profit margin of each company, increase the bargaining power
of the buyer who will demand higher and good quality good and products at lower cost.
This is main threat for Sabro.
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6.4.2 China’s product
China’s made product is one of the threat for Pakistani companies and especially for
Sabro. Because these products are cheaper in price than Pakistani products so peoples
buy these products and their products demand increase and Pakistani made products
demand decreases. Quality of china products are not so good but the price is
comparatively low than other indigenous company that’s why peoples buy china’s
products. That’s why China products stress the indigenous companies to lower their
prices and quality but actually this will not profitable in long run.
6.4.3 Price War
As there is stiff competition in the home appliance market that will cause the price war.
So every company reduces their prices of products and increases their sales. It will not
only reduce the profit margin of the company but also reduce the quality of products. So
price war is the main threats for all the companies, which are operating in these products.
6.4.4 Instability of Government
Rapid changes governments also become a threats for the companies because whenever
new government comes they adopts new and their own policies for every industry. This
will lead to uncertainty for the investors who want to invest heavy amount in the new
projects and they resist investing. Which become a major threat for the company and will
decrease the company profitability? Due to this instability of politics many companies
will not invest heavy amount.
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6.4.5 Tax Department
Tax department is another major threat for this company that will restrain the business
expansion. There is more complicated tax procedure for the companies, which are
interested to increase the investment in their businesses. A tax department also asks the
company from where it receives the money and where this money will spend. Due to fear
of heavy taxes companies would not like to invest the heavy amount.
6.4.6 World Trade Organization
In 2005 World Trade Organization give permission to each and every company of home
making appliance to exports their products at paying fewer duties or duty free products.
Which increase pressure for every indigenous company to reduce their prices and
increase their quality? This will increase the competition among foreign and indigenous
companies. But most of our companies run under uncertain condition which decreases the
moral of each indigenous companies.
6.4.7 Investor’s
There are few big investors who imports Chinese product with their own brand name
which is also a very big threat for the companies and every company try to create some
attention for the investors to de motivate such investment.
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Chapter 07
FINDING AND SUGGESTIONS
Duration of my internship program is very limited and during which I can’t observe the
environment and culture of Sabro Technologies fully, but although I suggest them some
recommendation from my limited experience and knowledge. I consider that if Sabro
Technologies follow the following recommendation it will work in more efficient and
cost effective way.
I at Sabro observed that other than the basic salary, other compensation
packages are not good and are not enough to attract the potential employees
and retain them. Due to this the motivation level of employees decreases
which affects the production level of organization. And the level of production
will decrease.
To overcome this situation, Human Resource Department of Ad Creator
Advertising should try to make the company more attractive as possible for
the employees for this they offer incentives and compensation packages.
The main point which I note at Sabro is that there is an unequal distribution of
work. Some worker work more on a low reward. So some serious steps should
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be taken by the top management for this purpose to overcome this problem,
and allocate the work properly towards proper peoples.
Sabro used new technologies, but for the proper use of that technology there
are not competent people available to cope the changes and operate that
technology in proper way. For this purpose the employees should given the
opportunity to participate in the seminars and lectures and the training provide
will be more efficient.
One of the major weaknesses of Sabro Technologies is that it doesn’t make
advertisement on TV of their products. Which creates hurdle in the selling of
products and customer does not know the changes, which were made in the
products from time to time. So for this I gave suggestion to the company to
make advertisement of their product on TV and other Mass Media which will
make the company more efficient.
Sabro product range is very small so due to lack of products range company
cannot earn more profit because consumer have high demand of their
products. So I suggest that It is the main opportunity for Sabro Technologies if
they increase their products range it will be more profitable for the company.
Because there are more needs to develop new consumer type items like
Washing Machine, Vacuum Cleaner and other items.
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REFRENCES
Sabro Technologies (Pvt) LTD Profile
www.sabrotechnologies.com
Salary and Compensation Project on Sabro by Ahmareen Abbas & Sana Samad
Standard Organization Procedures documents of Sabro Technologies
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