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PEPSI Cola Shamim & Co.

(Multan)

RECOMMENDATIONS FOR THE COMPANY


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Proper hierarchical system


The biggest problem we found in the organization was the lack of a proper system,
which is immensely important for such an organization.This is a typical Pakistani
family business where the owner is making thedecisions all the time.There is no
succession planning, as it is apparent from the hiring of the productionmanager
from outside.

Proper system of reporting


There was no proper system of communication as who is to report to whom andwho
is responsible of what. If a simple technical worker encounters a problem inthe plant
or any part of the equipment is broken, he at once rushes to the production
manager as what to do. This is clear that they have no proper reportingsystem as to
deal with the broken part of the equipment is not the job of the production
manager.There must be clearly defined levels of communication. The technical
worker must report to his immediate supervisor. If that supervisor is unable to solve
the problem then the official next to him should be consulted and be proceeded in
thesame pattern. The matter will reach the production manager but in a
systematicway. So company needs a proper communication and reporting system. It
mayalso help in reducing rather eliminating false reporting.

Employee training
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PEPSI Cola Shamim & Co.(Multan)

We see that when the new production manager was hired, he, for implementingnew
techniques, gave lectures to the employees and also recruited new ones. Sothere is
lack of training of the employees in the organization.Generally Pepsi International
has manuals for the managers that describe thestandard procedures and typically
called as THE PEPSI WAY. These are theguidelines, which must be passed on the
employees as how the work is to bedone. What happened in the past is that the
managers kept hiding these manualsfrom the employees and placed them under
lock and key. The current productionmanager has taken an important step as he is
preparing notes from these manualsand passing them on to the employees. But still
it is not enough. Because the plants of the factory work in mistake at any process
can cause a serious problemfor the other plant, which may lead to a severe mishap
for the whole production. So in this way the employee training has got the
significantimportance.For corrective action following steps lead to success for the
organization:

Periodic training programs

Classes for unskilled persons

Updating of skills of the employees.

Performance appraisal
The performance appraisal system in a manufacturing organization is a verytricky
job. For example evaluating the performance of one shift that has done
themaintenance of the plant should be treated as separate from the performance of
the employees in the next shift that has got higher production. The reason is thatthe
second shift might be having less efficiency than the previous one and thecredit
goes to the second shift.
Internship Report

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86
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89

PEPSI Cola Shamim & Co.(Multan)

The previous shift workers should be rewarded more than the next shift
becausethey had done the maintenance and kept the plant in working condition.
Thesecond shift workers just have capitalized on the work of the previous
shiftworkers. Thats why the performance evaluation is very important as it
directlydeals with the motivation of the employees. If the employees feel that they
havenot been rewarded according to their jobs, they may show little or no
involvementin their tasks and may indulge in activities that often hinders the
efficiency of the production unit.They mighty start

Making groups

Making false reporting

Try to create obstacles for othersFor this reason the company needs specific
performance standards for specifictasks.

Employee Motivation
Whenever someone talks about motivating the employees, it is commonly
said,Dont forget the money consideration. So, apart from motivation
throughtraining for the work, the employees must be rewarded with proper reward
andcompensation systems.The company is also lacking in this area. Getting rewards
especially when it is inthe form of money or cash motivates the employees.So we
emphasize on proper reward and compensation system and a fair level of salaries
for all the employees in the factory. Salaries were stagnant due to thestagnant

production for the last 15 years. As the production has gone up and it is just due to
the employees so the salaries of the employees must also be raised

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