TAPAL
(FA07-BB-0062)
ZEESHAN BANA
(SP07-BB-0179)
To
Mr. Muhammad Haneef
Course Instructor
Compensation Management
Respected Sir
We are very thankful that you gave us this kind opportunity from
which we have learnt how to deal with people in the industry and
this report has also helped us to gain loads of information on
Human Resource and Compensation Management in the
organizations.
Yours Faithfully
Zeeshan Bana
Perfection was the watchword I had in mind when I
started working on this project. However people
generally agree that man can only strive to approach
excellence but never actually achieve it. Exquisite
perfection is rather a trait of God, and by his grace, I
have tried very hard to make this thesis an excellent
one.
First and Foremost I’d like to
thank almighty Allah for giving me the strength and
knowledge to successfully complete this report.
I would also like to thank Mr. M.
Haneef for his time, assistance, guidance & instructions;
he gave to us in the friendliest manner through out this
thesis, which could not have been successful without his
dedicated attention & guidance.
This project has improved my
understanding to the subject Compensation
Management, which will surely help us in our
professional life.
Table of Contents
Sr. Topics
No.
1 Executive Summary
4
Training and Development
5
Monitoring and Evaluation
DATA COLLECTION
• Articles from newspapers
• Interviews
• Website
DATA PROCESSING
• All data bring together like recommendation of instructors.
Under the management of the founder’s son, Faizullah A. Tapal, the company
continued to grow and innovate. Currently it is being managed by the
founder’s grandson, Aftab F.Tapal who has continued giving further strength
to the foundations of quality laid by his family. After studying abroad, Aftab
F.Tapal returned to introduce professional management and unique
production ideas into the business. His progressive outlook resulted in the
total automation of the tea plants in Karachi.
Their motto “never compromise on quality” remains the byword on the lips of
all engaged in producing Tapal Tea that has resulted in customer’s brand
loyalty and their unflinching addiction. The testimony of their quality has
made them the first tea company in Pakistan to earn the ISO-9001: 2000
Quality Certification, the symbol of supreme quality standards.
In fact its popularity is such that several multinationals have launched their
own versions, but Tapal remains the original and ultimate Danedar because
of its unique color, aroma and taste. Color and a strong refreshing taste are
its most significant attributes.
Tapal is proud to have been a part of Pakistan’s history since its inception. As
a company they have grown and flourished together with the great nation.
Since 1947, the name Tapal has been associated with great tasting teas.
Founded by Adam Ali Tapal, the company first started marketing a number of
quality blends to tea shops around Karachi.
The success of Tapal’s teas soon broke all popularity records and sales grew
by leaps and bounds. Under the leadership of Faizullah A.Tapal and currently
Aftab F.Tapal with his team of professionals, this success has been
consolidated and carried on.
Today Tapal is the largest, 100% Pakistani owned Tea Company in the
country. They are proud to be the innovators and producers of countless
unique blends and creators of different tea categories in the country.
Tapal’s brands include leaf blends such as Tapal Special, the highly popular
Danedar and the recently launched Safari PF 1. In the Dust/Mixture category
Tapal counts brands such as Tapal Chai Family Mixture, Mezban and Chenak
whilst its refreshing green tea brand is called Jasmine.
A number of common factors unite all Tapal brands – consistent high quality,
flavor, aroma and taste, the creation of unique blends from the finest tea
leaves and state-of-the-art packaging to retain flavor and freshness. This
winning combination is the reason that Tapal’s quality brands have enjoyed
favor with countless consumers for over 50 years, and a cup of Tapal tea has
become a tasteful tradition in households around the country.
THE SELLING PROCESS
Tapal tea is one of the leading brands of tea in Pakistan. The company
like any other organization has to take into consideration the factors
that may help them to sell their product to their respective target
markets. Therefore, it indulges in the following preliminary steps of the
selling process.
Prospecting: -
This is the first step of the selling process, which Tapal would takes
into consideration when dealing with its product market. The first
aspect of this step is that of identifying the target market. Tapal
analyzes its target segment, which largely comprises of households as
well as offices. After identifying its market Tapal devises a strategy
that would enable them to compete with its competitors and therefore
lead to an increase in the market share. To generate sales lead is
another facet of the prospecting process that Tapal takes into account
i.e. it has to ensure that the identified target segment would actually
be needing their product or not. The reason this aspect is necessary is
that the more Tapal is aware of its customer’s needs, the more easily
they can locate them and help them fulfill those needs. Lastly, the
qualifying aspect, in which Tapal ensures that the identified market
actually needs their product and would readily buy their product when,
introduced in the market.
Qualifying: -
Pre-Approach: -
Who is the customer, is the first question that Tapal asks themselves.
This has already been answered by in the previous steps of the selling
process. Determining the needs of the customers have also been
discussed, but how to convince the customers that the tea produced
by Tapal is the only tea that would satisfy the customer’s needs. The
job of the Tapal tea’s salesperson is to ensure their customers that
their tea is the only tea that is strong enough to help the person feel
refreshed and renewed again.
Additional information may always prove to be essential for any
organization to further understand their customers; therefore, Tapal
too carries out surveys to further identify the needs of its customers.
UPGRADE
Tapal recruitment process is not only reliable but also efficient as well,
in the sense that the company has never been faced with the problem
of poor production or low morale. Apart from the problem of temporary
employees, the company has never been in a fix to lay off a worker,
unless of course the employee decides to leave due to his own will.
Tapal, since these past few years has proven to be an efficient
company with a dedicated, competent and motivated workforce.
Selection
It can be said that in Tapal, Selection is central to the success of
production.
Tapal does not believe in selection planning since they don’t have
internal recruits. For jobs like Brand Manager and Production Manager
they have large selection ratio, but for some jobs they also have a low
selection ratio. But for most of the important jobs they usually have a
large selection ratio, which means variety while selecting the right
person. So, some of these important issues have to be taken into
account by Tapal. Like all the other companies Tapal follows a series of
specific steps for selection of employees. Each of these steps has
different requirements and different efforts are involved and they are
discussed in depth below.
The third step is the Selection Interview. Once the list of all applicants
is reviewed, an in depth conversation is conducted to evaluate an
applicants acceptability.
UPGRADE
We believe that Tapal should have job postings for internal candidates
as it relies largely on external candidates this will motivate the current
employees at Tapal to look forward for promotion and perform better
as internal recruits are more aware of company policies and have an
experience with the working conditions and therefore, they have less
expectations attached to the job. Tapal when making selection
decision, should undertake a Background and Reference Checks of
their applicants. This would help them to overcome the problem of
credential distortion and to guarantee that the applicant is credible
enough to work in their organization. A Supervisory Interview must be
carried out since the supervisors are more involved with the
employees in the Production Department, the reason being that they
are more technically inclined towards their job. Tapal should hold
medical evaluations to ensure that the employees especially in the
Production and Sales Department meet the health and safety
standards. Tapal is being faced with the problem of temporary
employment and thus, in order to overcome this problem and sustain
their security they should have a permanent, available and reliable
workforce.
TRAINING AND DEVELOPMENT
Training and development is a planned effort to facilitate employee
learning of job-related behaviors in order to improve employee
performance. Training and development are very important for both
the employee as well as the organization. It does have a certain cost
associated with it but it is returned back in the form of increased
productivity because of the experience of the trained employee.
Although training and development are interchangeable terms, they
have different meanings.
Needs Assessment
Program Content
Tapal has an annual budget of rupees 25 - 50,000 per employee for its
training program depending on the hierarchical levels. Tapal believes
in investing in its employees to get the maximum outcome. Looking at
the various benefits that are achieved the organization feels that 25-
50000 Rs. per employee is a small price to pay. A good measure of
cost effectiveness is to see the payback. Employees who feel that the
organization cares have higher productively, greater loyalty and
satisfaction in their work place. They feel that when organization cares
so much for them they need to give back something in return. Tapal
trains its employee which causes a reduction in other cost, such as the
turnover is lower, people may be recruited from within the
organization, the problem employee obsolescence is take care of.
1) ON-THE-JOB-APPROACH:
This approach comes into action when the training given is on the job.
By this it means that an employee is trained while doing work, right on
the working spot. An experienced employee or a trainer continuously
teaches the new hire to deliver the best, and also keeps an eye on him
to check whether the training is result oriented or not. Some
techniques of this type of training that take place at Tapal are
explained below.
• Coaching
2) OFF-THE-JOB-APPROACH:
This approach comes into action when the trainee is trained not on the
job, but is trained at a similar environment off the job. By this I mean
to say that he is trained in a similar environment with all the same
materials used in the jobs so that he can learn about his job without
disturbing the actual process.
Some techniques of this approach that are used at Tapal are given
below.
• Lectures
• Warehouse Training
• Action Learning
UPGRADE
After research and analysis of the training department, there are a few
strategies that Tapal can implement to enhance the performance of
the training and development function of its organization. These are
strategies that can be applied in the short as well as the long term of
the organization. If adequate measures are taken to follow these
recommendations thoroughly, then short-term applications can
enhance the organization in the long run as well.
Even though Tapal sends its employees to workshops held both outside
and inside the country. To keep pace with the changes occurring in the
global organization, potential employees should be sent to training
programs held by international firms, and to more seminars and
workshops. This not only provides better exposure to the employees
but also helps the organization to benefit from the new techniques
learnt by their employees. The condition for this benefit to be availed is
that Tapal has to be flexible in accepting the changes brought to the
organization.
Tapal should also lay emphasis on the evaluation interviews. These are
performance review sessions that gives employee feedback about their
past performance or future potential. This will benefit the employees
as well as the organization to have good, open communication with
each other. It is going to make replacements easier for the
organization and the employees would become aware of the specific
areas for improvement.
• Establish objectives
As sales compensation objectives must be related to the company’s
sales and marketing goals. Compensation objectives must also be
realistic. Tapal has made their compensation plan, which is very much
related to their overall marketing and sales objectives.
• Level of Compensation
Tapal thoroughly examine pays which are attracting to their
employees, consider competitors pays plan, careful attention to the
relationship between employee compensation and profit and finally
their own history of employees compensation.
1. Financial Incentives
Bonuses
Tapal adds bonuses to commission on sales and production volume.
Bonuses, which are usually rewards for special effort and provide,
direct motivation. Bonuses are additional incentives and awarded on
the basis of points compiled by the employees for such things as
setting up displays, cutting down expense of selling, producing and
exceeding quotas. Bonuses are also paid for extra effort related to the
company’s production, sales goals, on performance of certain types of
promotional work.
Bonuses are also used to encourage employees to assist in the
forecasting of the production process.
Commission
The commission is included as apart of great many compensation
plans. Tapal uses a simple commission plan, which is based on the
principle that earnings of employees should vary directly with
performance, i.e. employees are paid for results, and direct motivation
is the key advantage of such a compensation plan. The commission
provides a strong incentive to make more sales increase and increase
productivity. Strong performers are attracted and encouraged. High
earnings also provide employees on commission with recognition. In
commissioned selling, employees constantly set higher monetary
goals; they have a much higher need for recognition through pay than
for individuals within other fields
The company uses the following three commissions to motivate the
Employees
• Drawing Accounts
Tapal provides its work force working on commission a drawing
account, from which money is advanced against future
commissions. These accounts give employees some of the security
of a salary and allow management more control over sales,
production and various activities.
Recognition
Recognition it is very important as a motivational factor. This incentive
includes:
a) Acknowledgement of an accomplishment at the meetings or any
time.
b) Certificates
c) Top management involved in the recognition programs.
Employees Contest
Tapal also holds employee’s contests that are established incentives
techniques used in specific effort and situations. Employee contest
helps to achieve the company goals by satisfying some of the
employee’s personnel goals.
Fringe Benefits
Tapal provides fringe benefits, which are indirect monetary rewards
such as plans of insurance, vacations and pension.
Paid Leaves
These leaves include sick leaves, maternity leave, and severance pay.
The company requires that an employee work for a certain period of
time before being eligible for certain paid leaves.
Educational Help
With the increased desire for advanced education, Tapal introduced
educational assistance programs. Employees are taking advantage of
the company-sponsored educational programs.
UPGRADE
The reason for Tapal being a strong competitor in the tea market is
that their salespersons have come to realize that time is the key factor
in achieving success. Therefore, to utilize time in the most productive
manner may lead to success, as one is able to gather from the
example of Tapal. Another reason for Tapal being a tough competitor is
that they have adopted the policy of actively communicating with their
target market or rather their customers. They have successfully learnt
to think analytically, make sensible and appropriate decisions and have
effective human relations skills.
Like any other company, Tapal too wants to increase its sales and
profits, therefore to achieve this they have to be organized in making
their sales. In order to do this they have divided their national market
into various zones. The zone, which is discussed in this report, is that
of Karachi. This basically makes it easier for the company to operate
and manage their operations more efficiently. This particular factor
also simplifies the job of the salesperson, as he only has to concentrate
on his specific territory and not on the national marketplace as a
whole.
Even if the territory is divided, which may be the case in the Karachi
and Hyderabad example, the former territory manager may influence
the new manager to service selective accounts.
The major concern for Tapal is that of its competitors, when designing
its territory, it has to analyze first where its competitors are situated in
the market, so that it is able to place itself strategically and more
effectively than its competitors.
The channels of distribution and the type of transport used are also
very important for any company to operate in a territory successfully
and effectively. Therefore similar is the case for Tapal when
configuring its territory.
UPGRADE
The main concern for any company is to increase their sales and
profits, and so therefore they try their level best to devise the most
effective strategies in order to increase their territories, which would
ultimately lead to an increase in its market share.
Tapal too takes the same factors into consideration and holds the
same aspects as important and has also devised and implemented
strategies that would or have led to an increase in their territories as
well their market share. But as it is said that there is always room for
improvement, therefore some new aspects should be taken into
account by Tapal in order to increase their territories and ultimately its
market share.
For Tapal its main customers are retailers, basically these are the
people that have to be focused when identifying the target market.
Therefore, Tapal has to find new and unique ways to lure these
customers. Tapal should give out special incentives for the retailers in
order to allow them to display their product on the front shelf. This
incentive may not only benefit the retailers but may also help attract
tea consumers to buy Tapal tea.
The packaging of Tapal tea may also influence the territory aspect; the
reason being may be that its major competitors are yet to take out a
sachet for their tea. Therefore, if Tapal is the first one to introduce this
it may gain an upper edge over its competitors, territory wise as well
as market wise.
Tapal can also provide hot tea outside supermarkets like Agha’s or at
parks like Nisar Shaheed etc, by putting up stalls. This may lure
customers to have Tapal tea, especially if they are situated at these
particular areas as they may be tired or may feel fatigued by the day’s
work.
Tapal may also start door-to-door selling of their product. This can be
carried out by providing the customers with tea bags or sachets of
their tea to refresh themselves and to allow the customers to provide
them with feedback on how to further improve their tea. This may not
only provide feedback on the spot, but may also allow Tapal to
increase its respective territory as compared to that of its competitors.