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46130579 final-pel

  1. 1. Submitted By:Submitted to: Miss. Sonia Dedication we would like to dedicate this project to our parents who have always encourage us throughout in our academic career and make possible for us to stand where we today.
  3. 3. We become able to complete this project by blessing ofour God and the help of our teacher which give usguiding in every aspect of our project. And sure us thathe is available when we need assistance. We wouldalso like to thanks our family as specially our parentsfor being a patent and encouraging and motivating us.We dedicate this project to our respected teacherMiss.Sonia
  4. 4. History of PEL:Pak Electron Limited (PEL) is the pioneer manufacturer of electrical goods in Pakistan.It was established in 1956 in technical collaboration with M/s AEG of Germany. InOctober 1978, the company was taken over by Saigol Group of Companies. Since itsinception, the company has always been contributing towards the advancement anddevelopment of the engineering sector in Pakistan by introducing a range of qualityelectrical equipments and home appliances and by producing hundreds of engineers,skilled workers and technicians through its apprenticeship schemes and trainingprogrammes.The company comprises of two divisions: Appliances Division Power Division Appliance division: APPLIANCES DIVISION PEL’s Appliances Division is the flag carrier of the Saigol Group. This Division of PEL consists of appliances manufacturing.
  5. 5. PEL Air Conditioners: “Winner of Consumer Choice Award” In 1981 PEL window-type air conditioners were introduced in technicalcollaboration with General Corporation of Japan. Ever since their launch, PEL airconditioners have a leading position in the market. PEL air conditioners coolingperformance has been tested and approved by Copeland and ITS USA. With theshift of user’s preference from window type to split type air conditioners, PEL hasstarted manufacturing split type air conditioners.PEL Refrigerators: The manufacturing of refrigerators started in 1986-87 in technicalcollaboration with M/s IAR-SILTAL of Italy. Like the air conditioner, PELsrefrigerators are also in great demand. Today, PEL Crystal has 30% market share.Its cooling performance is tested and approved by Danfoss, Germany and itsmanufacturing facility is ISO 9002 certified by SGS Switzerland.
  6. 6. PEL Deep Freezers PEL deep freezers were introduced in 1987 in technical collaboration withM/s Ariston of Italy. Because of durability and high quality, PEL deep freezers arethe preferred choice of companies like Unilever. POWER DIVISIONPEL Power Division manufactures energy meters, transformers, switchgears,Kiosks, compact stations, shunt capacitor banks etc. All these electrical goods aremanufactured under strict quality control and in accordance with internationalstandards. PEL is one of the major electrical equipment suppliers to Water and PowerDevelopment Authority (WAPDA) and Karachi Electrical Supply Corporation(KESC), which are the largest power utilities in Pakistan. Over the years, PEL electrical equipment has been used in numerous powerprojects of national importance within Pakistan. PEL has the privilege of getting itsequipment approved and certified by well-reputed international consultants suchas: Preece, Cardew and Rider, England Harza Engineering Company, USA Snam Progeti, Italy Societe Dumezm, France
  7. 7. Miner & Miner International Inc. USA Ensa, FranceMission:To provide quality products & services to the complete satisfaction of ourcustomers and maximize returns for all stakeholders through optimal use ofresourcesTo focus on personal development of our employees to meet futurechallengesTo promote good governance, corporate values and a safe workingenvironment with a strong sense of social responsibility.Vision:To excel in providing engineering goods and services through continuousimprovement.Personality profile:This company was in corporate by siagol group which was come fromculcata India establish their industry in Faisalabad in 1948 they starts theirbusiness form a textile company named Kohinoor textile limmited.Reference:(www.pel.com.pk)
  8. 8. Personality Profile:BOARD OF DIRECTORS 1. Mr. Azam Saigol (Chairman/Chief Executive) 2. Mr. Murad Saigol 3. Mr. Haroon Ahmad Khan (Managing Director) 4. Mr. Homaeer Waheed 5. Mr. Muhammad Rafi Khan 6. Mr. Gul Nawaz (NIT Nominee) 1. Mr. Masood Karim Sheikh 2. Mr. Tajammal H. Bokharee (NBP Nominee U/S 182 of the Ordinance) 3. Mr. Wajahat A. Baqai (NBP Nominee U/S 182 of the Ordinance) 4. Mr. Naseem Saigol (NBP Nominee U/S 182 of the Ordinance
  9. 9. PEL Company Structure: PAK ELEKTRON LIMITED FINANCE DEPARTMENT MARKETING DEPARTMENT HR DEPARTMENT IMPORT & EXPORT DEPT IT DEPARTMENT ADMIN DEPARTMENT ACCOUNTS DEPARTMENT PEL’S is mainly consisted of seven departments i.e. Finance, Marketing,HR, Import & Export, Information technology, Administration and AccountsDepartment. These departments play an important role in the success of theorganization, due to the fact that the coordination between these departments isexcellent.
  11. 11. CEO is the main controller of the whole organization. Heads of alldepartments directly reports to CEO. These people are mainly involved in policycreation of the company. All the major operations of the company go under thereview of these departmental heads. FINANCE DEPARTMENT FINANCE MANAGER ASSISTANT FINANCE MANAGER EXECUTIVE FINANCE MANAGER MARKETING DEPARTMENT MARKETING MANAGER ASSISTANT MARKETING MANAGER EXECUTIVE MARKETING MANAGER
  14. 14. ACCOUNTS DEPARTMENT ACCOUNTS MANAGER ASSISTANT ACCOUNTS MANAGER EXECUTIVE ACCOUNTS MANAGER PEL departmentFinance department Marketing department Sales department Trading department Consumer marketing department Credit control department
  15. 15.  Customer service department human resource management departmentDistributions departmentQuality control department Department workingFinance department: Finance department provide money for the working of theorganization. PELcompany’s department borrows loan mainly from national bankand settle terms and conditioned of the interest and time period of returning theload with it. When the sale is made the company firstly returns the loan withinterest.Human resource department: Human resource department of the Pel Company is very muchconscious of hiring the employees for the company. The standards he set for hiringthe new poople.HRM department of the company mainly makes the externalrecruitment .this is usually done through news paper web sites extra.HRMdepartment also set salaries, packages and TA, DA allowances.
  16. 16. Marketing department: Marketing department is the back bone of any firm.marketing department generally analyze the needs and wants of the customer. Thenthis department tells about the customer needs to the company which in ternlaunches the products according to the needs of the customers. Marketingdepartment is responsible for making strong advertisement for the products.Sales department: Sales department is responsible for making sales of the product.This department generally takes orders from the market, gives information to thecredit control department. Area credit control department gives information to thehead office. Head office discuss situation with the finance department and then atlast finance department gives authority to area credit control department to settleterm and conditions with dealers.Customer service center department: This department is very much important for the companybecause its makes the good will of the company. It’s provided services to thecustomers who have their clams and makes the customer loyal. Its also gives thefeed back to the head office to provide the required spare parts.
  17. 17. Consumer marketing department: Consumer marketing department givespackages to the person who has low income to attract them to purchase theirproducts. They have their own area offices. This department works under creditscontrol departments.Trading department: This department is involved for importing products. Thisdepartment imports the required products according to the demand of the customersuch as split unit. This department is controlled by its head, which works directlyunder the head offce.This department sends terms and condition of trade to thehead office and finance department for the financing.Production department: Production department is involved only producing theproducts. This department purchases raw material from the suppliers. Then passesthe raw material from various dyes machines. Modeling machines etc…from theassembly line according to the required shapes of the products.Distribution department:
  18. 18. This department distributes the final products from theproduction department to the dealers and then ultimately to the consumers. Thisdepartment only responsible for distributing the products according to therequirement and demand of the product.Reference (M.Afzal)relation ship manager.Span of Control The organizational hierarchy of Pak Elektron Ltd. has both flat andtall span of administration. In case of lower level of hierarchy (theworker and their supervisors) the span is wide but as the level goes up, itbecomes tall. The managing director who is answerable to the Chairman holdsthe top position. General Managers are answerable to the ManagingDirector and are responsible for respective division, Managers areheading some departments, and Assistant Managers is leading some byDeputy Managers and other. There are senior engineers who are sectionin charge Supervisors and foremen report to them.Executive level At executive level, three to five engineers report to a manager andalmost some numbers of managers’ report to a General Manager.Workers levelAt workers level, usually 10 to 30 workers report to a foreman. Three toseven foremen report to a section in charge.
  19. 19. Division of LaborIn Pak Elektron Limited (PEL), two types of employees hired1. Permanent Workers2. Temporary WorkersTemporary workers are employed for about 6 months, and when theseason concludes the temporary workers are laid off. Temporary workersare employed as helpers and assigned those jobs where skills are notrequired.Workers are divided into different teams based upon their skill s andnature of job. The team is lead by head worker who is responsible for thework assigned to his team and directs the fellow workers to perform theassigned task. These teams are masters of their jobs. With in a team,tasks have been assigned in a sequential order and every individual isassigned a specific task. This activity not only helps productivity butalso helps the quality standards of the workers as each of them tries tokeep an eye on the other to see that he is performing correctly because ifany thing goes wrong, the blame goes to the whole group.Business portfolioKohinoor Textile Mills :The Saigols set up the first major textile unit - The Kohinoor Textile Millsunder the umbrella of Kohinoor Industries Limited. The Kohinoor TextileMill has state-of-the-art quality control from raw material to finishedproduct manufacturing.After that they establish pel elektron company.
  20. 20. PEL Elektronic:In October 1978 the company was taken over by the SAIGOL GROUP,which is one of the leading industrial and commercial groups of Pakistan.The products manufactured by PEL have always been of a high standardand the name “PEL is synonymous with quality all over Pakistan.” PEL,since its inception, has been acting as an institution working for theadvancement and development of engineering and modern technology inPakistanSaritow Spinning Mills & Azam Textile Mills:In 1987, the Saritow Spinning Mills and Azam Textile Mills wereestablished under the banner of Saigol Group of Companies. SaritowSpinning Mills is a spinning unit with 25,440 spindles capacity. Facilitatedwith the most modern and efficient Japanese and European machinery, itsknitted yarn is renowned in the Far East and Europe for its fine quality.Azam Textile Mills is reputed for its carded and combed yarn, which isquite popular for premier knitting and weaving.Kohinoor Power Company Limited:In 1991, the first power unit commissioned in Pakistan, in the Privatesector, was Kohinoor Power Company Limited. Its present productioncapacity is 15 MW.Reference(Naeem Ahmad) design managers
  21. 21. Communication network at pel:COMMUNICATIONCommunication is an exchange of facts, ideas, opinions, or emotions, by two ormore persons.FUNCTIONS OF COMMUNICATION 1. Interpersonal Communication 2. Organizational CommunicationINTERPERSONAL COMMUNICATIONIt is a communication between two or more person. This kind of communication ispresent everywhere and in all types of organization.COMMUNICATION PROCESS at PEL (PVT) LTD
  22. 22. Communication process at PEL (PVT) Ltd consists of following components.  Message  Encoding  Channel  Decoding  FeedbackENCODINGSender The person who sends message initiates the process of communication. Thesender must prepare the message of communication in such a way that the receiverreceives it with the same spirit and the same meaning as intended by the sender.The message should be drafted in such a way that it achieves the result desired bythe sender.MESSAGE The message is the idea/ideas the sender wants to communicate to the otherparty. When we speak, the speech is the message. When we write, the writing isthe message. When gesture, the movements of our arms and the expression of ourfaces are the message. The sender must also keep in mind the party to whom themessage is intended to be conveyed, and also the channel to be used.CHANNEL It means the way by which the message is communicated. It includes printedwords, electronic mail, or sounds. The choice of medium depends upon the
  23. 23. relationship between the sender and the receiver. We normally choose oral orwritten communication.DECODINGThe act of understanding the message is known as decoding. The process oftranslating a message into ideas is called decoding, and the receiver does this.Thus, listener and readers are often regarded as decoding.FEEDBACK It is the response by the receiver of the communication. He may accept orreject the message, but he must not change its meaning. Thus, it is an action orreaction on the part of the receiver in response to the message received by himfrom the sender. Sender needs feedback in order to determine the success or failureof the communication.METHODS OF INTERPERSONAL COMMUNICATIONNON-VERBAL COMMUNICATION  Body Language  Verbal IntonationBody Language Gestures, facial configuration, and other movements of the body that conveymeaning. A person frowning “says” something different from one who’s smiling.Hand motions, facial expression, and other gestures can communicate emotions ortemperaments such as aggression, fear, shyness, joy, and anger. Knowing themeaning behind someone’s body moves and learning how to put forth your bestbody language can help you personally and professionally. This type ofcommunication is common in PEL (PVT) Ltd.
  24. 24. Verbal Intonation An emphasis given to the words of phrases that conveys meaning. A soft,smooth vocal tone conveys interest and creates a different meaning from one that isabrasive and put a strong emphasis on saving the last word. Most of us would viewthe first intonation as coming from someone sincerely interested in clarifying thestudent’s concern, whereas the second suggests that the person is defensive oraggressive.ORGANIZATIONAL COMMUNICATION Organizational communication means communication common inorganizational settings. In PEL (PVT) Ltd following type of communication takesplace.HORIZONTAL COMMUNICATION This type of communication is used in PEL (PVT) Ltd. This is horizontalform. In this horizontal form of communication, message flows from onedepartment to another department like Mechanical Department communicates withthe Electrical Department for the purpose of sharing of information.VERTICAL COMMUNICATION It is a sort of communication takes place from top to bottom within theorganization. Let suppose Manager of Marketing Dept. communicates withAssociate Manager and Associate Manager Communicates the matter withAssistant Manager and he communicates with lower level manager and so on.Reference:(www.pel.com.pk)
  25. 25. The upward communication flows from downward to upward, from managers atlower level to managers at higher level. Senior managers rely on them forinformation. Reports on daily basis are given to top level managers of theparticular department to inform them of progress towards organizational goals andalso about any problem if exists. It keeps management aware of how employeesfeel about their jobs, their co-workers, and the organization in general.DIAGONAL COMMUNICATIONIn this communication the member of one department can also convey his messageto another department officer.BARRIERS TO EFFECTIVE COMMUNICATION There are some barriers to effective communication, which are given belowalong with the ways to overcome those barriers.  Filtering  Emotions  Information Overload  LanguageFiltering The manipulation of information to make it appear more favorable to thereceiver.How To Overcome  E-mail to communicate organizations reduces filtering.  Organizational culture encourages or discourages filtering by the type of behavior.Emotions
  26. 26. How a receiver fells when a message is received influences how he or sheinterprets it. You’ll often interpret the same message differently, depending onwhether you’re happy or upset. Extreme emotions are most likely to hindereffective communication. In such instance, we often disregard our rational andobjective thinking processes and substitute emotional judgment.Four management function in PEL 1. Planning 2. Organizing 3. Leading 4. Controlling Planning Refrigerator: Planning is very much important function of themanagement.PEL company makes the planning regarding refrigerator by observingthe market. How much a company can sales in a particular segment’s there anychance of growth is also in the planning of the company refrigerator.Split Unit: The company planning regarding split unit firstly is theobservation of the market. Then after observation how much to import the splitunits. Finance and trading department also give suggestion for planning regardingsplit unit .Then set their plans according to the requirement.
  27. 27. Organizing Refrigerator: The organizing regarding refrigerator how to make availabilityof refrigerator assured. Taking in the account the policy regarding refrigerator ofthe company how much to produce and when to produce etc…Almost all thedepartment are involved in organizing and also how much margin to give to thedealers.Split Unit: While organizing the company takes into account the last year salesand how much to sale in a particular area. Mainly quality control, financedepartment and trading department are involved in organizing for how much toimport, when to import, where to import etc… Leading Refrigerator: Head office mainly leads all departments regarding refrigerator.All the sub ordinate department officers lead the related department andemployees and loyal to the head office for their working. Their is check andbalance situation for every department.Split Unit: Head office mainly leads all the related department of the splitunits. Trading department is mainly the leader in split unit case for importing it anddirect reliable to the head office. For leading it also give its requirement to its headoffice for finance and for the quality control of the product.
  28. 28. Controlling Refrigerator: Controlling is the main functions after making the pervious steps.Managers of the each department control its own department working and areliable to the managing director. There is check and balance situation. Incontrolling, monthly and annual basis analysis are made. How much sale is madeand for the betterment of the product research and development department then doits job.Split Unit: In controlling of the split units, trading department mainlycontrol the import of the splits units. it checks the quantity of the units andquality control department checks the quality of the split units beforelaunching it in the market. Challenges and issue faced by PEL:The challenges of pel is faces by pel is because of its competitor, Waves, LG, andHaier etc. The Dawlance is market leader in the refrigerator and PEL is still onsecond number.  REFRIGERATORS:Total market sale of refrigerator in 2006 is 2924905 units. Last year sale was2091779 units. These figures show 30% market growth. But this is not the exactfigure of growth rate it varies from year to year.DAWLANCE is a market leader in refrigerator with 46% share.
  29. 29. PEL has 38% market shareWaves has 10% market share.6% shares are others  WINDOW AIR CONDITIONERS:PEL is a market leader with a market share of about 60% in local manufacturingindustry. And overall has 35% market shares for this product.LG has about 32% market share and stands on number two.And rest of themanufacturers have 23% marker share. SPLIT AIR CONDITIONERS:The main competitor of PEL in Split air conditioner is DAWLANCE. Othercompetitors are MITSUBISHI and HAIER MICROWAVE OVEN:In case of Microwave Oven DAWLANCE is the main competitor of PEL.But the company claims to be the leader in this product line.Challenges and issue faced by Pel:COMPETITIVE POSITION:According to AURTHER D. LITTLE a company will occupy one of the followingcompetitive position strategies:
  30. 30.  Dominants:At this position a firm controls the behavior of other competitor and has awide choice of strategic option. Strong:At this, a firm can take independent action without endangering its long-term position and can maintain its long-term position regardless of thecompetitor’s action. Favorable:This firm has an exploitable strength to improve it position. Tenable:This firm is performing at a satisfactory level to warrant continuing inbusiness. Weak:At this position, a firm has unsatisfactory performance and an opportunity toimprovement. Non-viable:At this position, a firm has unsatisfactory performance with no opportunityto improvement.
  31. 31. PEL occupies the strong position in the market because, it has very good market share of 38%. PEL is the market CHALLANGER.PEL culture: In our Company Quality is the Subject of Management at all Levels. Wefocus on continuous improvement in our Systems thus establishing GoodManagement Practices, we are committed to and making continuous efforts indeveloping and strengthening our internal and external customers and suppliers.Employees training & development and their participation are the KEY forceswhich are increasing our Organizations Capabilities thus making it morecompetitive and fast growing Company. Top management is not only tremendously improving our WorkingEnvironment but also investing in Improving internal Communication Network forbetter Teamwork. Continuous Up-gradation in production facility/equipment in thepursuit of State-of-the-art production technology reflects management Vision andcommitment for Quality. Over fifty years of manufacturing experience withcooperative and dedicated employees coupled with performance based system andData Analysis enable management to take Preventive Actions before things reallygo wrong. One of the Mission of organization to promote good governance andcorporate values with a strong sense of social responsibility.Reference (M.Afzal) relation ship managerStakeholder: a) Customer b) Competitor c) Media d) Communicates e) Share holder
  32. 32. f) Unions g) Employee h) SupplierCustomer:Some time customer influence sale. Customer want to purchase low qualityproduct in low price pel products is high quality and flexible price some timedidn’t become able to purchase the products and it affect on sale.Competitor:  Downlance  Waves  Lg  Hier  Orient  SplitMedia:Some time other companies give big heavy advertisement in that situationpeople divert to other products so the sale affect from that.Communicates:Some time our communication affect at our sale because some time whenour sales man want to sale their products they could’t give proper brief totheir customer in that situation the company sale affect.
  33. 33. Shareholder:Our share holder play main role in sale process some time when theydrawback their share form the organization then the capisty tomanufacturing effect from it then sale decrease.Union:Union are the major part in the organization they strike and soppedworking so the sale of the organization effect.Employee:When employee didn’t work properly then automatically sale process circledamaged.Motivation and team work in PEL Performance appraisal is a process for establishing shared understanding aboutwhat is to be achieved, and an approach to managing and developing people in a waywhich increases the probability that it will be achieved in the short and long term. Thepurpose of performance appraisal is to improve the organization’s performance throughthe enhanced performance of individuals.The main objectives of performance appraisal are:  To review past performance  To asses training needs  To help develop individuals
  34. 34.  To audit the skills with in an organization  To set targets for future performance  To identify potential for promotionPERFORMANCE APPRAISAL IN PEL In PEL performance appraisal is recognized as an important element of the jobs ofmanagers and supervisor. It provides significant help in meeting departmental andcompany objective. Given the vital role of performance appraisals, PEL needs to check appraisalsystem, and the uses of such appraisal system to determine whether key personneldecisions are affected by employee’s age, race, sex, religion, color, national origin orhandicap.THE APPRAISAL PROCESS The foundations of performance appraisal is provided by what the job holder isexpected to do as defined in a job description and by reference to agreed objectives.Performance appraisal discussions are often held annually. Each employee of PEL hasannual targets, which are measured with his or her standard targets to compensate theemployee on the basis of performance. Performance appraisal is totally based onemployee’s annual work performance. They also offer bonuses and promotions to theworking employees. When employees are working on projects, as working on newproduct design, there may be an appraisal after each assignment but there still be anoverall review at the end of the year. They also hold meetings two or three times a year,the main purpose of which is to review and update the objectives.WHO CARRIED OUT THE APPRAISAL PROCESS
  35. 35. Usually, the line managers are primarily responsible for conducting performanceappraisals. They must tell employee how they are doing and make salary and trainingdecisions. Personnel managers can aid line managers by providing information on how touse the performance appraisal forms and by making sure that the result of each appraisal Becomes a part of each employee’s records, readily available for managementdecisions such as determining who to promote. The personnel managers are responsible for ensuring that all subordinates areappraised fairly and consistently. To fulfill this responsibility, personnel managerspersuade all divisions of the organization to use the same appraisal form. They design theperformance appraisal system for the entire organization.In addition, in PEL the process used to evaluate performance and make assessment is not360 degree. In fact it’s on supervisor and mutually every employee.PROBLEM IN MOTIVATION AND TEAM WORK IN PEL At PEL we have observed that supervisors and subordinates are oftenambivalent about participating in the performance appraisal process. Supervisors areuncomfortable because there organizational role places them in the position of being bothjudge and jury. They must make decisions that affect people carriers and lives in asignificant way. Further more supervisors are not trained to handle the interpersonallydifficult situations that are likely to be arising when feedback is negative and supervisorswould like to maintain a good relationship with the subordinates at workplace. Subordinates are likely to be very ambivalent about receiving negative feed back.Some subordinates prefer and want to discuss negative aspects of there performance, sothey can improve and develop themselves for future appraisal. While others don’t want tobe criticized on there performance at all, because they think they are performing at therelevel best and there is no room for improvement in there performance.
  36. 36. PEL Recommendations 1. They have raised very expensive loans so they should retire their expensive loans. 2. They should carefully study their competitors. 3. As mentioned earlier company’s liquidity position is dismal. So they need to pay off their short term loans. 4. Their operating cost is very high so they should control their operating expenses. 5. When supervisor provide negative feedback he/she should immediately counterbalance it with positive statement for the purpose of encouragement in that situation. 6. There should be a continuous monitoring of performance. When performance deviates from plans one does not have to wait for the next periodic review to correct it. The supervisor and subordinate should discuss the situation immediately so the corrective actions can be taken at once in order to avoid the major disasters. 7. Whether performance appraisal discussions are held monthly, quarterly, annually appraise should be clear about what he/she is doing right and wrong ,and how he/she can overcome there deficiencies for the future appraisal. 8. Performance appraisal should be conducted in a way that employee should not perceive it as a fatigue or threat for there job but it should take it as an opportunity to add or contribute more value in work of there organizationReference :*(our finding)*