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)

Table of Contents
Acknowledgement Table of Contents Table of Figures List of Acronyms Executive Summary I II V VI VII

Chapter 01 Introduction of Study

1.1 1.2 1.3 1.4 1.5 Background of studies Purpose of the Studies Scope of Studies Limitations Research Methodologies

01
01 01 02 02 02

Chapter 02 Overview of Sabro Technologies (Pvt) Ltd

2.1 2.2 2.3 2.4 2.5 2.6 2.7 SABRO Introduction and Background History of Sabro Technologies Location of Sabro Mission Statement Vision Statement Quality Policy Organizational Structure of Sabro

04
04 06 07 08 08 08 09

Chapter 03 Departments of Sabro Technologies (Pvt) Ltd

3 3.1 3.2 3.3 3.4 3.5 Introduction Administration Department Human Resource Department Finance and Accounts Department Production Department Researches and Development Department
I

10
10 10 11 11 12 13

3.6

Purchase Department 3.6.1 3.6.2 Local Purchase Foreign Purchase

13 14 14 15 15 15 16 16 16 17

3.7 3.8 3.9 3.10 3.11 3.12 3.13

IT Department Packaging Department Design Department Quality Control Department Quality Assurance Department Marketing Department After Sales Department

Chapter 04 Human Resource Management Department of STPL

4.1 4.2 4.3 4.4 4.5 4.6 Human Resource Department Human Resource Information System Mission and Vision Statement of HR Department Hierarchy of HR Department at Sabro Functions and Roles of the HR Department at STPL Employees Categories at STPL 4.6.1 4.6.2 4.6.3 4.6.4 4.6.5 4.7 4.8 Permanent Employees Contractor Employees Contract or Seasonal Employees Probationer Relatives of Employees

18
18 18 19 19 20 21 21 21 21 22 22 22 22 23 23 23 24 24 24

Human Resource Inventory Recruitment and Selection 4.8.1 4.8.2 4.8.3 Planning for Recruitment process Decision on Vacancies Job Description and Specification

4.9

Recruitment Sources 4.9.1 Internal Source 4.9.1.1 Direct Applicants and Referrals
II

4.9.2

External Source 4.9.2.1 Advertisements in Newspapers (Blind Box Ads)

24 25 25 26 26 27 29 29 29 29 30 30 31 31 31 32 32 32 33 33 34 34 34 35 35 35 36 36 37 38 38

4.10 4.11 4.12 4.13 4.14

Short List of Potential Candidates Interviewing the Potential Candidates The Screening Process Personal Assessment Criteria Training 4.14.1 Employees Training 4.14.2 Designing Effective Training System 4.14.2.1Conducting Need Assessment 4.14.2.2Creating Learning Environment

4.15

Training Methods 4.15.1 Classroom Instruction 4.15.2 Distance Learning 4.15.3 Audio Visual Techniques 4.15.4 On The Job Training 4.15.5 Off The Job Training

4.16

Employees Development 4.16.1 Formal Education

4.17 4.18

Orientation Employees Transfer at Sabro 4.18.1 Promotion 4.18.2 Lateral 4.18.3 Interdepartmental Transfer

4.19 4.20

Compensation and Benefits Wages or Salaries Plan 4.20.1 Working Hours and Overtime at Sabro 4.20.2 Deduction from Salaries or wages

4.21 4.22

Equal Employment Opportunities Issue at STPL Employee Benefits 4.22.1 Medical Facility and Allowances
III

4.22.2 Pick and Drop Facility 4.22.3 Uniform and House Rent Allowance 4.22.4 Eid Allowance 4.22.5 Death and Disability Insurance 4.22.6 Pension 4.23 Performance Appraisal 4.23.1 Purpose of the Performance Appraisal 4.24 Performance Management System 4.24.1 Identifying and measuring the Performance of employees

38 38 39 39 39 39 40 40 40

Chapter 5
5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9

My Internship Activities

42
42 42 43 43 44 44 45 45 46 47 47 48 48 48 49 49 50 50 50 51

Introduction Marking of Attendance Fulfilling Demand of Employees and Management Calculating and recording of over time Provision of First Aid Issuance of EOBI and Social Security Card Receiving and Distribution of Mail Monitoring the Workforce Acting as Receptionist SWOT Analysis of Sabro Technologies (Pvt) Ltd

Chapter 06 6.1

Strengths 6.1.1 6.1.2 6.1.3 6.1.4 6.1.5 6.1.6 6.1.7 6.1.8 6.1.9 Strong Brand Image Strong Dealer Network Strong Quality, Sale and Service Market leader in Commercial type & Split AC Pakistan largest AC Manufacturing Company Strong Grip in Home Appliance Strong Management Distribution of Authority Strong Research and Development Department
IV

6.1.10 Free Customer Service 6.2 Weaknesses 6.2.1 6.2.2 6.2.3 6.2.4 6.2.5 6.3 Lack of Advertisement System Variations Lack of Product Range Less Utilization of Capacity Financial Problems

51 51 52 52 53 53 54 54 55 55 56 56 56

Opportunities 6.3.1 6.3.2 6.3.3 6.3.4 Exploration of Market in Pakistan Increase in Product Range Export Opportunity Increase in Production Line

6.4

Threats 6.4.1 6.4.2 6.4.3 6.4.4 6.4.5 6.4.6 6.4.7 Strong Competition Chinas Product Price War Instability of Government Tax Department World trade Organization Investors

57 57 58 58 58 59 59

Finding and Suggestions References

60 62

List of Figures Figure 01 Figure 02 Figure 03 Organizational Structure of Sabro Hierarchy of HR Department at Sabro Personal Assessment Criteria 09 19 27

LIST OF ACRONYMS
STPL SABRO Pvt LTD HAVC HR R&D ISO HP AC CNC CEO P&D GM VP AVP MRP PPC IT ACR EOBI

Sabro Technologies Private Limited SA Brothers Private Limited Heating Ventilation and Air Condition Human Resource Research and Development International Standard Organization Hours Power Air Condition Computer Numerically Control Chief Executive Officer Packaging and Designing General Manager Voice President Assistant Vice President Material Resource Planning Production Planning Control Information Technologies Air Condition and Refrigerator Employee Old Age Benefit Institution

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.
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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.

1.3 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, employees 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 I9 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

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

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. Todays 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 customers 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.

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).

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.

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.

2.7

Organizational Structure of Sabro

Manager Customer Services Manage Sales Operation Sales Head Sales Head Karachi Manage Sales Purchase Officer Manager Purchase Assistant Purchase Manager Finance Assistant Accountant Assistant Admin Board of Directors Chairmain Sabro Companies President / CEO Coal Shop ACR 1, 2, 3, 4 Production Head Assistant Production Paint Shop V. P. Operation Fan Shop Electrical Shop Manager PPC Chief Engineer Manager Design I / C Store Draftsmen Quality Inspector Quality Manager Quality Assistant Manager Application Engineer Assistant Store Assistant Electrical Mechanical G. M. Admin Head of HR Admin Field Officer Admin Sheet Metal Shop Sales Head Lahore Sales Head Faisalabad Assistant Sales P&D

Figure 01

Organizational Structure of Sabro

9

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 thats 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 employees 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 STPLs 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

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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. Sabros 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. Thats why STPL has two different departments for purchasing thats 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. Softwares 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, customers 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 Sabros 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.

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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 thats 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.

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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

General Manager Admin Head of HR Admin

Assistant Admin

Field Officer Admin

Figure 02

Hierarchy of HR Department at Sabro

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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.

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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 probationer. and after the completion of this period the employees are considered as

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

250 70 160 20

Number of Employees at STPL Islamabad Number of permanent employees Number of contract employees Number of semi contract employees

4.8

Recruitment and Selection

Recruitment and selection are very important functions of the HR department, Sabro perform these function in the following manners.

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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 doesnt 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.

4.9.2 External Source

External Source of is that type of recruiting in which if the current or existing employee of the organization doesnt 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 1 2 3 Peon, Office Boy, S.Gurd Drivers Store Keeper, Purchaser Qualification Literate Metric/FA & FA Experience Preferable Driving Licence+2years+Test 2 years of experience of Sabro In the relevant field+ test Sales and Graduation 3 years experience in the relevant field+ Test 5 years experience of Sabro in relevant field + Test B.Com / BSc 5 years experience of Sabro in relevant field + Test 7 Trainee Executive, Executive, Post Graduate, Fresh

Telephone Operator 4 Accounts, Cashier,

Marketing Assistant 5 Accountant, C.S Officer, Excise Graduation Officer, Store Officer 6 Admin Officer, Accounts Officer

Secretary, HRO 8

ICMA, CA Inter Graduate, 3 years or 1 year in Sabro

Executive, Exe Finance, Exe Sales, Post Exe Marketing

ICMA, CA Inter Post Graduate, 7 years or 5 years in Sabro as Executive + Test

Manager

ICMA, CA Inter 10 AVP Post

Graduate, 5 years in Sabro as Manager (Only promotional post) Experience Fresh 3 years in Sabro + Test by promotion committee

ICMA, CA Inter Scale 1 2 Factory Staff Helper (Technical) Semi Skilled Worker Qualification Metric Metric

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Skilled Welder

Worker

Mechanic

/ Technical Diploma

Fresh or 5 years in Sabro + Test by Promotion Committee 2 years in Sabro + Test or DAE + 2 / years in Sabro

Junior Inspector

Supervisor

Quality Technical Diploma Graduation

Design

Supervisor

Associate DAE / Technical DEA Fresh / 5 years in Sabro + Test Diploma

Engineer / J. Sales Engineer 6

Tech Supervisor / Web Developer / DAE / Technical 7 years in Sabro + Test Foreman / Production Coordinator Diploma BSc / BE /MCS Fresh / BCS MCS / BCS / 3 years or Trainee Eng + 1 year in BSc / BE / DAE Sabro / DAE + Test or DAE + 15 years in Sabro

Trainee Engineer / Gen. Forman

Engineer / Software Developer

Manager / Mould Designer

BSc / BE / MSC 7 years or 5 years in Sabro as Eng Executive + Test or DAE

10

AVP

BSc / BE / MSC 5 years as a Manager in Sabro Eng

Figure 03

Personal Assessment Criteria

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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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.

4.14.1 Employees 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 firefighting training for every department and there are fire-fighting teams which consist of the young guys who are specially train for the fire-fighting.

4.14.2.2 Creating 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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4.15.1 Classroom 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

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management such as executives and vice president. STPL give more stress on the following points in an orientation. 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 employees moves to another job at the same level. Such type of transfer is very common at STPL.
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4.18.3 Interdepartmental Transfer

That type of transfer in which a vacant position is filled by an employee who is transfer from one department to another department.

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 employees 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 employees 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
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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, thats 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, 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
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 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 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.

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4.22 Employee Benefits

STPL provide the following benefits to its employees and management. Medical Facility and Allowances 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.

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4.22.4 Eid Allowance

Eid allowance is given to the employees according to their base pay scale mostly on EidUl-Fitar.

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

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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

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 employees 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

Employees performance show that what the employees do or does not do. In STPL the
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employees performance consist of the following things. Quality of output Quantity of output Time in which the output are produce 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 Increase in revenue Satisfaction of customer Cost control Total Performance Management 35% 20% 30% 15% 100%

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Chapter 5 MY INTERNSHIP ACTIVITIES 5.1 Introduction

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, thats 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?

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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 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 employees 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.

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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 injured, he is sent to social security hospital. Otherwise he is treated in nearby hospital on companys 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.

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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.

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.

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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.

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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

Strengths

Sabro 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 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

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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 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
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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 competitors 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. Thats 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 to increase their product sales. STPL also making more efforts for the better quality and improments than its competitor.

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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 thats 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

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home appliance and Commercial AC. Sabro Technologies lose their competitive edge due to following points. Lack of Advertisement System variations 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. Thats 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

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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 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 thats why customer say that if company invest more in these products then we can keep all Sabro item and we dont 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 thats becomes the problem for the complete utilization of company resource. For the company it is also the main point of weakness.

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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. Thats 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 thats why it is main reason of company weakness.

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.

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 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.

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.

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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.

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 Chinas Product in the market Price War Slow growth rate in Pakistan
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 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.

6.4.2 Chinas product

Chinas 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 thats why peoples buy chinas products. Thats why China products stress the indigenous companies to lower their prices and quality but actually this will not profitable in long run.

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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.

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.

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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 Investors
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 cant 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 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
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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 doesnt 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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