WOMAN OF SUBSTANCE      EXCLUSIVE INTERVIEW            INTERVIEWIN THE FACE OF BEAUTY   CULTURE OF COMMITMENT IS THE   ONE...
EDITOR’S NOTE                                                                                                             ...
MANAGER TODAY’SCONTRIBUTORSDR NOOR UL AIN FATIMA                                       signing & construction firm ‘Takhlee...
PCPB # 303-M                          MANAGER                          TODAY                  Editor-in-Chief             ...
34   COMMUNICATION     ABC of interpersonal communication     The rules of communication; from A to Z and may     be a goo...
8 WISDOM      CORNER                WISDOM                CORNER                                      Quoteable QuotesTHE ...
10   COVER     STORY
IJAZ NISART    here is always a saying that Pakistani economy ever offered    scarce employment opportunities which is a b...
disturbance in the country is also squeez-                                                                                ...
inability of its planners to boost its indus-trial sector through increased market ac-                                    ...
14 COVER   STORY Coping unemployment                                                      with                            ...
16 COVER   STORY              BILAL ILLAHI   Usinginnovationtocombat  unemployment   The brave new world of               ...
As innovative businesses and the economy grow,                                                  they positively impact une...
18 INTERVIEWMANAGER TODAY | December - January 2009-10
IJAZ NISARTalking about himself Mr. Song said that after get-ting his degree in industrial automation from theShandong Uni...
to fulfil the customers’ needs and staff’s re-      tivating employees.                                                 qui...
22 MANAGEMENT                          What                                                                     salaries b...
The unwritten rules that govern the          find ways to bend the rules. In a Pakistani         accept lies, versus insist...
24 ORGANIZATION    DEVELOPMENT Future   proof                                                            Financial crisis,...
It is the culture of an                                                                                                   ...
customer needs, preferences, and satis-                                                                             Creati...
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
5th Issue by Manager Today Magazine
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5th Issue by Manager Today Magazine

  1. 1. WOMAN OF SUBSTANCE EXCLUSIVE INTERVIEW INTERVIEWIN THE FACE OF BEAUTY CULTURE OF COMMITMENT IS THE ONE TEAM, ONE TARGET—MASSARAT MISBAH KEY TO OUR PROGRESS--CEO KSB HAIER PAKISTAN
  2. 2. EDITOR’S NOTE Mail Box MAKING THE DIFFERENCE Manager Today is penetrating into the corporate sec- eceiving the 4th issue of ne of my students brought tor of Pakistan with admiration and suggestions from the whole industry. These responses are showing R Manager Today greeted me enough to make me call the O a copy of Manager Today for me a few days back. I could that many of the corporate issues were left unad- dressed since long. Thus, addressing these subjects, team and congratulate people read it after a few days and I ab- the fifth issue on your tables is packed with all cur- doing this job in such a well man- solutely liked the idea behind rent matters faced by the managers in Pakistani or- ner. this publication. Local matters ganizations. Topic and image representing faced by managers in Pakistani Unemployment being at the top of present day chal- workplace harassment on the companies are presented in a Ijaz Nisar lenges is presented in the cover story ‘Job creation Editor-in-Chief title pulled all of my attention very general and understand- through developing entrepreneurs’. Due to the slug- gish economic activity in the country jobs can only while on opening it up; I could able manner that everyone can be create through promoting self employment. not resist reading the whole enjoy the reading. The style of The cover story is also supported by a survey bring- content discussing indigenous matters is ing opinions of influential people from different in- Articles and the interviews inside simple and non technical; mak- dustries. were very informative supported ing it interesting for all. An exclusive forum with the students of IBA, Punjab by the images. I would like to Dr. Shabbir Rana University is a revealing dialogue voicing the aspira- mention that I fell spell bound Government College University tions of Pakistani youth. During this forum Manager seeing the image in an article ________________________ Today could explore the mind set of young genera- named Visualization, it was ab- tion particularly for their future career orientation. solutely amazing that I loved! am an income tax officer in This segment is meant to get a direct peep into the minds of future entrepreneurs who can create work Huma Iqbal Islamabad I Faisalabad. There was a com- plementary copy of Manager opportunities and increase the rate of employment in the country. How to set a company culture is well ________________________ Today in the office, which was advised by Philip Lall, and also the recipe of estab- highly praised by my boss. Lis- lishing future proof corporations is suggested by anager Today has arisen as tening to his words of applause I Massod Ali Khan in this issue. Other articles include ‘sales objections’, which is an advisory for sales per- M a breath of fresh air, re- freshing the corporate environ- picked up the magazine to scru- tinize it critically. sons. The ABC of communication is well brought by ment. Something I felt needed; is a Faiez H. Seyal while dilemma of performance man- agement is discussed at length by Atif Tufail. I like this publication. more technical and research An exclusive meeting with Massarat Misbah is open- Mohsin Iqbal based data on different manage- ing that she is a true woman of substance being a Head HR Haier Pakistan ment issues present in public successful entrepreneur with a great zeal for serving ________________________ and private companies in Pak- women victims of violence through her foundation istan. Hope it will improve the ‘Smileagain’. The other exclusive interviews in the ot belonging to the corpo- quality and influence of the mag- magazine are highlighting the management skills of CEO Haier Pakistan and the CEO KSB Pumps. N rate sector of the country, I picked up the magazine from the azine. Mustafa Malik Completing the 5th issue of Manager Today, I wish all rack of a book store, feeling that Income Tax officer of my readers a blissful year ahead as we are stand- ing at the end of the year 2009. As like every other I also need to know manage- Pakistani I also pray for an eternal peace and ment tactics being the principal progress for the motherland particularly pure of the of a school. And its no wonder horrendous incidents of terrorism. that I got it subscribed for the whole year only on the next day. Mrs. Zeenat Awan LahoreINSPIRED? MOTIVATED? DID YOU LIKE WHAT YOU READ? If you find ManagerToday inspirational for the personal and professional development, do inform us. You can also contribute with your articles, suggestions and recommendations at: Email: editor@themanagertoday.com, managertoday@hotmail.com Website: www.themanagertoday.com, Ph: 0423 5792066, 0423 5817048, 0323 4443482,0300 4521298 Don’t forget to mention your full name, postal address and phone number on your letters.
  3. 3. MANAGER TODAY’SCONTRIBUTORSDR NOOR UL AIN FATIMA signing & construction firm ‘Takhleeq Designing and SHAKIL A. CHAUDHARYis a civil servant by profession Management Consultants’. He is committed to help earned his MSc and MPhil in in-and a medical doctor by train- individuals and organizations reach personal and pro- ternational relations at the Quaid-ing. She did her MBBS from fessional excellence. i-Azam University, Islamabad. InKing Edward Medical University Email: takhleeqdesigning@yahoo.com 1994, he won a Cheveningin 2005. She got first position scholarship that enabled him toin CSS in 2008 and got allocated BILAL ILLAHI do his master’s in media and communications at theto District Management Group. She takes a keen in- is an eminent business consult- London School of Economics. He has worked as a copyterest in writing articles on health and current affairs. ant & trainer. He has conducted editor for several English-language newspapers. He hasEmail: lala1447@yahoo.com workshops/seminars for MCB, also worked as a political analyst at the Australian High The Institute of Chartered Ac- Commission and US Embassy. He is a British Council-SHAKEEL AHMED countants of Pakistan (ICAP), certified management trainer and an executive memberhas a keen interest in motiva- Habib Bank Ltd, The Bank of of the ICI-British Council Management Centre. He istional reading and writings. Punjab, Bank Alfalah, UBL, ABL, PSO, NIBAF (State about to publish a bilingual guidebook for the benefit ofRunning a successful personal Bank of Pakistan), etc. on topics relating to Macro-Eco- those who wish to improve their English skills. He en-business, he spares a good nomics and Management. Having an MBA’s degree joys reading self-improvement books.amount of time to attend and from the USA, he is working as an entrepreneur sincelead training sessions on soft 1980. He is also visiting professor at top level local & ATIF TUFAILskills and motivational stuff. foreign business schools. His articles are regularly pub- is serving a US-based Informa-Email: kamyabzindagi@gmail.com lished in Dawn and Business Recorder. tion Technology company as Email: b_ilahi@yahoo.com head of human resources thesePROF. BASHARATULLAH days. He is managing all humanMALIK PHILIP S. LALL resource functions like recruit- has a diverse and rich blend of Philip S. Lall is an MBA from ment, performance manage-experience in general manage- IBA, Karachi, also holding the ment, training and compensation & benefits.ment, marketing and HRM, of UNDP, US-AID and UNCTAD- prior to his current work commitment, he added valueabove 33 years with different GATT Fellowships. He is at Aitchison College Lahore as a faculty member andmultinational organizations. He presently serving as the CEO, human resources advisor for a decade.has an excellent experience of teaching management Pro-Cel Consulting, Lahore. He did masters in Physics from GCU Lahore and mas-and marketing related courses at masters level at ac- He has 41 years of marketing, consulting and train- ters in HRM from University of the Punjab. Now acredited universities of Lahore like UMT, COMSATS, ing experience, including 24 years with Pakistan Insti- days, he is also preparing for Global Professional inIQRA and AIOU. At present, he is associated with tute of Management. Human Resources GPHR certification offered by So-University of Central Punjab (UCP) as assistant pro- Email: procel@lhr.comsats.net.pk ciety for Human Resources Management, USA.fessor and head of CMER & CAL. Email: attiexpert@gmail.comEmail: Basharatullah_malik@yahoo.com SAGHIR AHMED is a seasoned sales trainer who FAIEZ H. SEYALMASOOD ALI KHAN studied and taught sales, manage- a best selling author, coach,has many years of experience of ment, customer service etc. at the speaker and a consultant,senior management and leading Dale Carnegie Institute, California. blessed of influencing positivepositions in USA & Pakistan. He He is also very much interested in change in the lives of hundreds ofhas been hotel group consultant writing thought provoking articles with guiding princi- people and hundreads offor Holiday Inns Inc., USA. ples of sales and marketing. orqanizations throughout the world.Presently, he is the chief execu- Email: lite4all@hotmail.com Learn more about and his work attive of one of the most innovative management, de- www.FaiezSeyal.com December - January 2009-10 | MANAGER TODAY 5
  4. 4. PCPB # 303-M MANAGER TODAY Editor-in-Chief IJAZ NISAR Editorial Advisor SHAKEEL AHMED Editor NABEELA MALIK COVER STORY Art Director FAIZ-UR-REHMAN Designer Job creation through developing entrepreneurship It is very important to assist and equip people with all the necessary information and 10 SHAH JAHAN (SHANI) guidance for establishing any of their own business to earn livelihood not only for Corporate Manager themselves but also for many around. RASHEED HAYYAT Operations Manager Innovationtocombatunemployment MUHAMMAD YASIR Business Development Manager M. JAVED IQBAL RAKIZAR The brave new world of tomorrow belongs to entrepreneurs and innovators. 16 Sales Manager HASEEB NISAR INTERVIEW Photographer KAMRAN One Team, one target—Haier Pakistan Social commitment is an essential principle underlying the corporate policy 18 Contributors guidelines of Haier Pakistan. MASOOD ALI KHAN FAIEZ H SEYAL BILAL ILAHI MANAGEMENT DR. NOOR-UL-AIN FATIMA ATIF TUFAILPROF. BASHARAT ULLAH MALIK What constitutes company culture? A company’s ‘culture’ combines three aspects: unwritten rules; implicit expectations of em- 20 SAGHIR ASHMED SHAKEEL AHMED ployees and kind of values demonstrated in SHAKEEL A. CHAUDHRY everyday work. Legal AdvisorMUHAMMAD ZULFIQAR ALI BUTAR ORG DEVELOPMENT Publisher LEADING EDGE Printer Future proof corporations Leadership makes the followers want to achieve high goals, rather than simply bossing 24 QASIM & NAEEM ART PRESS HEAD OFFICE MANAGERTODAY people around.PL-20 SIDDIQUE TRADE CENTREMAIN BOULEVARD, GULBERG III LAHORE Tel: 0423-5792066, 5817048 Cell: 0300 4521298 HUMAN RESOURCE Dilemma of performance management Performance management has turned into a 28 0300 8445208 ritual in Pakistan. 0323 4443482email: info@themanagertoday.com www.themanagertoday.com www.leadingedge.com.pk WOMAN OF SUBSTANCE In the face of beauty - Masarrat Misbah 30
  5. 5. 34 COMMUNICATION ABC of interpersonal communication The rules of communication; from A to Z and may be a good start to build or refine communication skills.38 EXCLUSIVE INTERVIEW Culture of commitment is the key to our progress-- CEO KSB42 SALES Sales objections are sales opportunities Almost all sales management gurus agree that selling doesn’t really start until the prospects raise objections.46 MANAGER TODAY FORUM IBA future managers Manager Today conducted a forum at the Institute of Business Administration (IBA) Punjab University to get to know how the youngsters see career opportunities for them.48 IN-CAMPUS Handling defiant students Any emotional discussion with the confrontational student will be sure loss to the teacher.52 HEALTH Superfoodsthatlowercholesterol54 EXCLUSIVE EVENT EidmillaneveningwithbankAlfalahclubs
  6. 6. 8 WISDOM CORNER WISDOM CORNER Quoteable QuotesTHE FEAR OF GOD The trouble with the world is that the stupid are cocksure and the intelli- gent full of doubt. MAKES ONE .................................................................................................... Bertrand Russell It takes a strong fish to swim against the current. Even a dead one can SECURE. float with it. ................................................................................................................John Crowe...................HAZRAT ALI (A.S) Man is always more than he can know of himself; consequently, his accom- plishments, time and again, will come as a surprise to him. ...................................................................................................................Golo Mann Whoever seeks and follows the advice of another, avoids many errors: whoever acts, following no counsel but his own, exposes himself to the risk of making many mistakes. ........................................................................................................ Hazrat Ali (A.S) I wonder at the arrogance of a haughty and vain person. Yesterday he was only a drop of semen and tomorrow he will turn into a corpse. .........................................................................................................Hazrat Ali (A.S) If you want to make enemies, try to change something. ......................................................................................................Woodrow Wilson Take counsel even of an enemy, if he is wise: follow not the advice of an ig- norant friend. .........................................................................................................Hazrat Ali (A.S) He who knows best knows how little he knows. ....................................................................................................Thomas Jefferson The man of great meritoriousness is the one who can smoother his anger, and not take advantage of his power. .........................................................................................................Hazrat Ali (A.S)8 MANAGER TODAY | December -January 2009-10
  7. 7. 10 COVER STORY
  8. 8. IJAZ NISART here is always a saying that Pakistani economy ever offered scarce employment opportunities which is a big hurdle in the way of a progressing economy. Unemployment is called a cen- tral problem because when unemployment is high, resources are wasted and people could not find work to earn their liveli- hood in a satisfactory way. In a depressed economy; not only that people suffer financially but as its consequences they start living tensed and mentally and emotionally disturbed. Un- employment is measured annually as the percent of the labor force that cannot find a job. The labor force comprises adults who want to work and earn for them independently. At present there are nearly three million people unemployed in Pakistan. The year 2008 proved economically difficult for all the world nations. A wave of economic meltdown came from Wall Street and the economies of almost all developed and developing na- tions flew with it. Multinationals faced a dire time to deter- mine lay offs that tremendously increased the unemployment ratio, dollar soared high and peoples’ purchasing power de- clined sharply. The International Labour Organization warned that two years of global financial and economic meltdown could leave over 50 million more people unemployed by the end of 2009, risking social unrest, new estimates indicate that "global un- employment in 2009 could increase over 2007 by a range of 18 million to 30 million workers, and more than 50 million if the situation continues to deteriorate. Economic depression forced companies to lay off a huge num- ber of employees in an effort to survive by minimizing expendi- tures, consequently unemployment surfaced as an instant problem of every nation. Many multinational companies did large scale downsizing. Pakistan has reached a critical stage and joblessness is increasing daily. Moreover, downsizing in many government offices and within the private sector have exacerbated the problem. The situation affected middle class strata of society the most while middle class is the backbone of every economy being the main buyer of consumer goods. This class enjoys the comforts of life and is the principal buyer of cars, television, refrigerators, washing machines, microwave ovens, vacuum cleaner, personal computers, laptops and air conditioners. Only eight months back when the dollar was valued at Rs62 the family earning only Rs1.06 million a year qualified in the middle income group. If the purchasing power parity principle was applied the family earning Rs830000 per year was among the middle class. The recent wave of retrenchments has also pushed many middle class families among low income groups. No doubt a hundred per cent employment cannot be ensured in any country, however, in the Pakistani context, factors min- imizing employment opportunities are manifold i.e. December - January 2009-10 | MANAGER TODAY 11
  9. 9. disturbance in the country is also squeez- ing chances of foreign and even local in- vestment. SOCIAL STIGMA The other big issue in Pakistanis the so- cial stigma attached to losing a job. Losing a job has more than just financial implica- tions because people work long hours at the workplace and are paid very well; their families tend to believe that they play a cru- cial role within the organization. If they were to suddenly lose their jobs it is perceived as a reflection on their competence. The so- cial environment does not understand that one can be asked to leave a job because there is an economic downturn. The job cut in Pakistan is more painful than developed economies because there are no social protection net work for the unemployed in our society. DOCILE INDUSTRIES The local textile industry buys cotton at import substitution rates because the local production has fell short of industry de- mand. This adds to cost as cotton consti- tute 70 per cent of total input cost of yarn. Construction industry that generally pro- vides employment on daily wages basis has not been impacted by the increase in mini- mum wages. The informal sector that also provides substantial employment has also not implemented the minimum wage di- rective as they operate outside the ambit of law. The agriculture sector is also im- mune from minimum wage law. Only the registered productive sector has been af- fected by this directive. The workers now face the dual dilemma of managing to keep their jobs intact and balancing their budgets on the increasedPOLITICAL INSTABILITY tion in Pakistan about which little attention minimum wage. Twenty three per cent in- has been paid and which continues to de- creases in petroleum rates in past six Political instability is one with the suc- teriorate. Budgetary allocations are very weeks, nine per cent increase in electricitycessive governments failing to come up small for such an important sector with the rates and high food inflation during this pe-with any substantial plan to tackle growing result that we are unable to produce qual- riod has increased their expenses moreunemployment. There is a vicious cycle of ity graduates at a tertiary level. The cur- than the increase in their wages.unemployment and the mandarins at the riculum is outdated and the teachers are The creation of productive income-earn-top don’t have a clue as to how to reduce not trained to meet modern day chal- ing opportunities to absorb the existing un-it. lenges. employed people and the future labor force remains a formidable task in the context ofLOW QUALITY OF EDUCATION LAW AND ORDER SITUATION resource constraint that Pakistan has It all boils to the primary or basic educa- The day to day eruption of law & order been facing since last two decades and the12 MANAGER TODAY | December -January 2009-10
  10. 10. inability of its planners to boost its indus-trial sector through increased market ac- Social experts warn that if the economy failed tocess. turn around Pakistan might loss a sizable chunk In the wake of such a deteriorating situ-ation there is a dire need of planning for of its middle class.creating new opportunities for learned andskilled lot. That may equip people to earntheir livelihood without falling a victim of job all the necessary information and guid- the customers.search and depression of being unable to ance for establishing any of their own After considering these factors minutely,find a suitable work opportunity. business to earn livelihood not only for a new business initiative can prove very In this article, we would try to find solu- themselves but also for many around. successful where difficulties and chancestions to the problem of unemployment The areas, about which they should be of failure would be little. However, in ourthrough exploring new options for creating guided include; a deep study of market country it happens very frequently that peo-new jobs and developing entrepreneurs. based on a realistic and detailed analysis ple consider only on securing a healthy cap- in relation to the demand and supply of ital that they may invest in plenty. WhileJOB CREATION STRATEGIES the product or service, it should also capital alone can not ensure the success A real assessment of circumstances make the margin of profit or loss very of any business if not backed by practicalshow that the government alone cannot obvious; some formal education relating approach relating to all the factors dis-ensure jobs for every person in the coun- to the business that may enable people cussed above. To improve employment op-try, therefore promotion of businesses is to take suitable measures for the activ- portunities on the whole, there are someessential to cope with rising unemployment ity; sufficient capital to meet expenses in- suggestions in the following;and poverty. dependently to avoid financial troubles; The government is realizing that busi- legal implications of the particular busi- SUGGESTIONSness activities are engine of growth for ness meeting all the requirements of law 1. Economic Revival package should beeconomy and it is taking practical steps to in practice; the social value of a chosen announced by the government for the re-create more business friendly environment business is also of vital importance, be- vival of industries sector, to stimulate pro-so that business can flourish that would fore investing in any business it should be duction and investment.create more jobs for economic develop- analyzed very carefully how society and 2. Government should try to boost ex-ment. common masses perceive it because ports through broadening the tax base and It is very important to assist people with they have to be the ultimate clients and lowering tariffs. 3. Government should announce multiple packages for the development of agricul- ture sector. 4. A number of fiscal and monetary measures should be taken to attract in- dustrialists and particularly foreign invest- ment. 5. Technical training facilities should be provided. In this way unemployed people will get a chance to enhance their skills and be- come able to earn more reason able in- come. In conclusion, another erupting chal- lenge standing before Pakistan is wide- spread unemployment. Thousands of educated graduates are jobless. Hun- dreds of thousands of unemployed work- ers are forced to lead their lives below an average status. Large scale unemploy- ment has serious effects on the country’s production also. But as these days self employment through entrepreneurial ac- tivities is high, I hope ratio of unemploy- ment will become low soon. n December - January 2009-10 | MANAGER TODAY 13
  11. 11. 14 COVER STORY Coping unemployment with AASIA SAAIL KHAN s the world got hit by major A recession, we had a Domino effect on Pakistans economy too. Though, other domestic factors have also played a role in affect- ing the economy of Pakistan. Se- curity lapses have decreased sales in the country. Improving the situation of law and order is a HASSAN AMJAD must. Frequent acts of terrorism he economy of Pakistan is facing an industrial must be controlled to improve T slump at present. The dire reasons of this worsen- ing situation are war, energy crisis, political instability production; more production will increase more employment op- SURVEY RESPONSES ON JOB OPPORTUNITIES IN PAKISTAN and lack of visionary leadership. Actually creating job portunities. opportunities in the present situations is like making Ending the heavy load shedding is bubbles in air. Thus we have to work a lot for eco- a must. Expensive electricity nomic growth. Once economy get on the move every means high cost of production; in- thing would be fine. flationary prices and conse- Soaring crime rate and the aggravated security is- quently less demand. To improve sues are playing a very negative role. I think in the employment, we need to establish present day conditions we need to train our youth in more industries. the vocational and technical fields. There is also a Aasia Saail is serving as the need of supporting self employment. CEO and designer, ‘Aasia Saail- The government should also start mega projects for Designer Collection’. She has development that may create work opportunities, i.e. also been the founder of Almas building big dams and big infrastructures. Zaka Ur Rehman Foundation Mr. Hassan Amjad belongs to a renowned busi- and the executive committee ness family. He has established himself as an im- member of LCCI 2008. porter and trader of various agri equipments. He is the member of executive committee of the La- hore Chamber of Commerce & Industry. S. M. NAQI o meet the challenge of unemployment in Pakistan we need to develop entrepreneurship extensively. T Gone are the times when looking for a job in the market was a sole option for degree holders; pres- ent day world belongs to innovative entrepreneurial ideas. There is a dire need to explore creative ways to remove bottlenecks in existing businesses. We can create more work opportunities in that way. Dr. S. M. Naqi is a PhD in Business Administration (USA), a Chartered Engineer and Fellow of the Institution of Mechanical Engineers (UK). He is the Chairman, SPEL Group of Companies. He has established his repute as a teacher, trainer, consultant, and an author of several books. PROF DR. EHSAN MALIK To create jobs in Pakistan, encouraging private public partnership is the most essential factor at present. In the era of an aspiring entrepreneurship, private enterprises must be supported and encouraged as much as possible. SMEDA is working quite well in this regard however still there is room for small businesses develop- ment. Inculcating creative knowledge and innovative ideas in the existing business can also increase work op- portunities. Professor Dr. Muhammad Ehsan Malik a Ph.D. from Leicester University Management Centre, UK, is serving as Director General, Punjab University Gujranwala Campus, Dean, Faculty of Economics and Management Sciences, Punjab University and Director, Institute of Business Administration, Punjab University, Lahore.MANAGER TODAY | December - January 2009-10
  12. 12. 16 COVER STORY BILAL ILLAHI Usinginnovationtocombat unemployment The brave new world of tomorrow belongs to entrepreneurs and innovators.T he global financial meltdown of the past two years signifies the end of the cradle-to-grave security offered by corporate jobs. The brave new world of tomorrow belongs to en- trepreneurs and innovators, thosewho anticipate and fulfill society’s needs cre-atively. Innovation has become the buzz wordof our times and not without reason. Busi-nesses, both large and small, see it as thekey to increased profits and market share.Governments automatically reach for it whenattempting an economic turn-around. Inno-vation has been traditionally defined as thesuccessful implementation of creative ideas. ognize. and creativity were once the responsibility ofWhile creativity refers to thinking of a new Among the keys to innovation are the abil- the entrepreneur, the marketing depart-product, service or a process, innovation ity to imagine the future, to think in quantum ment, or the advertising agency—now they’rerefers to successfully carrying that idea to leaps rather than in small increments, and the responsibility of the entire private sector,the market- place. When Jeff Bezos thought also most importantly, being prepared to fail. the government and society as a whole.of selling books on the net it was ‘creativity’, An innovative person in other words has to The exciting part of innovation is the possi-when he set up Amazon it became ‘innova- be imaginative and has to be a risk taker; bility of being able to create something outtion’. There is widespread recognition of the someone for whom failure is just another of nothing. Capital is not a prerequisite. A de-fact that innovation is crucial to the success learning experience. A culture of innovation gree is not a must, though knowledge is. Inof a business and the economy at both the and entrepreneurship has to be developed in other words, knowledge can be formal or in-micro and macro levels. As innovative busi- Pakistan. This is something which has to be formal. Creativity comes in when a person isnesses and the economy grow, they positively encouraged by government policy. And of able to combine various strands of knowl-impact unemployment and poverty. This is course as a society we have to change our edge in a way it has never been done beforesomething which we in Pakistan need to rec- world view and become innovative. Innovation and come up with an idea of a new product,MANAGER TODAY | December - January 2009-10
  13. 13. As innovative businesses and the economy grow, they positively impact unemployment and poverty. This is something which we in Pakistan need to recognize. intuitional, inspirational and ideas generating over the years to provide reasonable educa- (all components of creativity). Innovative peo- tion to our citizens, opportunities exist, ple have to be recognized and encouraged. It amongst other things, for innovative persons is now believed that creativity can be taught to develop web-based models of education and innovation can be managed. This delivery. All innovative solutions need not be process, however, has to start at the school technological in nature; innovation does not and continue to the university level. Ideas have to be technology based. The crisis of il- should be germinated in university and cor- literacy in all its dimensions, offers huge op- porate incubators. Trade bodies can play an portunities to the innovator. The government active part. Government has to have a policy on its part has to look into the possibility of of supporting a whole culture of innovation. public-private partnerships. The impact of an innovative culture can be Also, our agriculture sector is underde- huge. Wealth creation will follow and have a veloped. Rural based businesses like dairy positive affect on GDP growth and employ- farming, storage and supply chain manage- ment opportunities. A small sole proprietor- ment can benefit immensely from creative ship or a large multi-national can reap profits ideas. There is a huge scope for technology through innovation. Lots of opportunities based innovation in agro-industry. Process exist for innovation and entrepreneurship to innovation is required to develop more effi- thrive in developing countries like Pakistan. cient systems. Presently bright young peo- Pakistanis have strong innovative and entre- ple do not even think of taking jobs and preneurial instincts. Areas such as I.T, health doing business out of the big urban centers. care, education and rural marketing are un- Again, provision of incentives has to come derdeveloped in our country. from both the public and private sector. And Many information technology firms in needless to say both need to work on this India and some in Pakistan have been inno- on an urgent basis. Government organiza- vative and have been able to develop niche tions like SMEDA need to be empowered toservice or a process. In the case of Jeff products. They have quickly been able to in- play a more active role.Bezos (Amazon’s founder), the combination crease their revenue manifold. In many Unemployment is now a global problem.was of knowledge of two types; knowledge of cases these firms were started by a couple The major source of new job generation isIT and knowledge that the book buying public of young IT specialists with a little capital not going to be the public sector and the tra-was not happy with the way they had to pur- base but because of their expertise now ditional large corporations. Future job op-chase books. In retrospect, these two count some of the well known corporate gi- portunities, globally and in Pakistan are goingstrands of knowledge were hardly a secret. ants in the west as their clients. Encourag- to come from innovative organizations andJeff bezos was creative in combining the two ing IT graduates to think on these lines has the entrepreneurs. The goal to become anand innovative when he set up Amazon. to come from the universities and the gov- innovative and entrepreneurial society /Today Amazon’s annual revenue is $ 20 bil- ernment. The absence of venture capital in economy sounds like a tall order but otherlion (Pakistan’s annual budget is $30 billion.) Pakistan is also an impediment to the countries have tried and succeeded. Once awhich is truly remarkable if you consider that growth of IT start-ups and needs to be ad- consensus develops among all stakeholdersit all started with an idea in one man’s head. dressed. a determined effort can help us take this big An innovative person has to be imaginative, Similarly, as the public sector has failed leap forward. n December - January 2009-10 | MANAGER TODAY 17
  14. 14. 18 INTERVIEWMANAGER TODAY | December - January 2009-10
  15. 15. IJAZ NISARTalking about himself Mr. Song said that after get-ting his degree in industrial automation from theShandong University of Technology. He startedworking in refrigeration department of HaierChina in July 1998. From there he went to Amer-ica as assistant production manager but wascalled back to China as director for the refriger-ator workshop. In 2000 he was assigned as themarketing manager in Europe but was again sentto America to overlook production facility devel-opment. As the chief operating officer for over-seas business division. He trained a team ofqualified operating managers and added themanagement procedures to the network andmade it a success. In July 2007, he was madethe CEO of Haier Pakistan. Haier Pakistan has en-tered the local market with the commitment tohelp its consumers reap the benefits of modernlife style and to provide the world class innovativeproducts. Pakistan is No. 1 in producing home ap-pliances with modern technology. Mr. Song saidthat very soon Haier products in Pakistan will beexported to Iran, Turkey, Afghanistan and CentralAsia. Due to energy crises in Pakistan, there hasbeen a decrease of 40 % in purchase of homeappliances. With the power shortage situation inthe country the company has introduced energysaving products in the market. Mr. Song said thatthe objective was to facilitate the consumer withthe high quality products and solutions for theirqueries. Creating a work environment that in-spires every life style by offering a most authen-tic product experience to the end consumers. December - January 2009-10 | MANAGER TODAY 19
  16. 16. to fulfil the customers’ needs and staff’s re- tivating employees. quirement; we believe in effective listening Continuous and fair appraisals also ensure and communication between the manage- the right path and growth. ment and the employees to minimize possi- Leaders must motivate employees through ble gaps in the organization. We work on communicating the vision of the organization target to monitor the performance in all lev- and providing inspiration through personal els of the hierarchy. role model. Not all executives could do this How do you balance the need for reform well; many do it poorly. But, to get true orga- and quality? nizational traction, we link financial bonuses I do not think there is any conflict to be re- for all employees in a large part to the per- solved or to get reformed. However, in a con- formance indicators against targets from stant urge for improvement; we are looking their cascaded scorecards. Their financialDue to energy crises in for bringing up innovation in our products. bonuses are also augmented by traditional What do you think is the outcome of soft and subjective assessments, such asPakistan there has been your change efforts at Haier? their personal growth and attitude towarda decrease of 40 % in Management system and partner’s expe- working together cohesively.purchase of home rience push Haier Pakistan improve day by What do you expect from your employ- day. As CEO, I am only the representative of ees?appliances. With the the execution of the policies of Haier brand Commitment and devotion - consideringpower shortage situation and the culture of Haier. Haier as their own family business and taking I am very happy with the achievement of it forward with the same ambition and to topin the country the Haier in Pakistan, this is mainly because of the it all I expect creativity and new ideas. I am al-company has introduced belief and support to Haier brand from Pak- ways open to new ideas from my employees.energy saving products istan customers. What is Haier’s strategy regarding cor- What is your response towards eco- porate social responsibility?in the market. nomic downturn; is it affecting your busi- Social commitment is an essential principle ness? underlying the corporate policy guidelines of What are your major concerns as CEO It is certainly the worst I have ever experi- Haier Pakistan. We believe in bringing theof Haier Pakistan? enced, and I can not guess how long this economic objectives of corporate Being the chief operating officer; my target tough situation would continue. Even the Activity into alignment with broader socialis to secure satisfied employees, customers economists do not seem to have anything and environmental aims. To do so, we abideand very satisfactorily happy shareholders. useful to say; failed to figure out what hap- by some principles that document our social To achieve this target I plan the manage- pened to the banks. responsibility. The assumption of responsibil-ment issues with an inclination toward inno- Owing to the worse economic situation, ity for society and future generations has avation. I always put my international consumer electronics companies have to long tradition at Haier. We have a welfare pro-experiences into practice to improve man- lower their costs. However, I am far from pes- grams called Haier EHSAAS Welfare Societyagement and the use of technology. simism because a crisis is also an opportu- which promotes health care, welfare, educa- I emphasize on developing products in ac- nity if one is determined to continue tion, training through monthly visits of a placecordance with the real needs of Pakistani struggling. I feel this is a golden opportunity that needs support and motivation from thecustomers; to provide them with a distin- for Haier Pakistan to regain its dynamism. corporate world.guished level of satisfaction and service. For Haier, this means that it is now a lot eas- Where do you see Haier after five years What is your strategy to grapple with ier for everyone to understand that our cost down the road?any business obstacles in Pakistan? structures are too high, that we need to After 5 years, Haier will be the leading If the workers of any enterprise believe in change with the rest of the world. home appliance and white goods manufac-the doctrine of One Team, one target, any I would like to mention that due to the en- turer in Pakistan As per the most preferredkind of obstacles can be removed success- ergy crisis in Pakistan there has been a de- home appliance brand in Pakistan by all cus-fully. crease of 40% in purchase of home tomers; we understand our customers the We define a clear action plan for every in- appliances. With the power shortage situa- best. We are confident enough to enjoy adividual with emphasis on a team spirit. This tion in the country the company has intro- leading position in the future market.helps everybody staying connected to one duced energy saving products in the market. Please share with us your recipe ofanother. IT support is also a pre-requisite to Could you please coin the key factors in success.cope with challenges and obstacles in the employee motivation? Ingredients of recipe include hard work,business world. Value and appreciation are the main keys. honesty, motivation; focus on quality, knowl- How will you describe your management Increasing the participation of employees in edge, advice from those who have suc-style? management decisions and encouraging ceeded. When these factors blend, success Our management style is manly concerned open communication plays a vital role in mo- is inevitable. n20 MANAGER TODAY | December - January 2009-10
  17. 17. 22 MANAGEMENT What salaries because they disliked employers’ poli- constitutes cies and a ‘bad’ company culture. I found fresh MBAs from reputable univer- sities were more concerned about ‘cultures’ of companies and they used to study the cul- company tures of different enterprises such as Pakistan Tobacco, National Foods, PIA or big mergers of banks etc. I felt it was time to look more closely at this culture? phenomenon, we call ‘company culture’. Though I looked at Terrence Deal’s ’Corporate Cultures’ and Geert Hofstede’s ‘Cultures & Or- ganisations’, I decided to try and analyze what factors actually make the cultures of all the companies I worked with during 1992-2008. This is a preliminary attempt that I shall (clients A company’s ‘culture’ permitting) later structure into a formal study. PHILIP S.LALL combines three aspects: Instead of making up a definition of ‘company unwritten rules; implicit culture’ I gathered the thoughts of 12 very sen- expectations of employees and ior Pakistani managers (including people such as Tariq Saigol of Maple Leaf Cement, Abrar kind of values demonstrated in Hasan of National Foods, Arif Ejaz, ex-MD, KSB everyday work. Pumps, Saulat Said, ex-GM, Packages). I found their experienced views helped me a lot to f you frequently interview job applicants you deepen my concept of ‘company culture’, ar- I might have found that, when you ask why they want to leave an employer, they usually refer to ‘company culture’. Years ago, when employers began asking me to assess job applicants, I initially thought that candidates blame company culture only to hide their real motif of leaving an employer i.e. higher salaries and more financial advantages. riving subsequently at this tentative under- standing of the concept: “A company’s ‘culture’ combines three as- pects: (1) unwritten rules that govern the con- duct of supervising managers and subordinates; (2) implicit expectations of em- ployees from their seniors or peers, and (3) kind of values demonstrated in everyday work”. However, as the number of interviews grew, Let me illustrate each aspect of my Conduct- I came across young men and women who Expectations-Values model of company culture were willing to accept lower-than-market by ‘live’ examples.MANAGER TODAY | December - January 2009-10
  18. 18. The unwritten rules that govern the find ways to bend the rules. In a Pakistani accept lies, versus insisting on the truth and1. conduct of supervising managersand subordinates. company that regularly employs people who are sons or relatives of past/present em- (c) the extent to which managers practice favouritism, versus encouraging merit. In one Pakistani company, no supervising ployees, subordinates regard the directors To a degree I have found this company cul-manager including the 70-year-old chairman as ‘elders’ and thus have implicit expecta- ture model most helpful in consulting work;will ever call a female employee into his office. tions that they will be ‘looked after’ con- it often points out where the ‘real’ problemsA newly-appointed manager, unaware of this cerning salaries, medication and marriage may lie. In one family-managed company, theunwritten rule, did this and received a repri- expenses, etc. In another company, despite MD repeatedly said the ‘real’ problem laymand from his superior. The unwritten rule at many team-building courses, employees re- with the company’s zonal managers; theymeetings in one Pakistani company is that all tain strong departmental feelings. Their im- were an unnecessary ‘extra’ layer betweensupervising managers should ensure every plicit expectations are that managers will the Marketing Director and the regionalsubordinate speaks up. In another company, not ask them to cooperate and do ‘extra managers. On careful analysis, I found thethe unwritten rule is managers should not be work’ for peers in other departments. problem originated in values demonstratedharsh on late-comers, since employees are al-lowed to come late. Another unwritten rule is In a Pakistani company that regularly employsthey should not ask subordinates to work late.In another company, every manager is under- people who are sons or relatives of past/presentstood to have the right to ask subordinates to employees, subordinates regard the directors asoffer Namaz. If subordinates miss Namaz, an ‘elders’ and thus have implicit expectations that theyunwritten rule allows the manager to talk toerring subordinates. In another company, a will be ‘looked after.’written rule says the HR Manager alwayshas an ‘open-door’ for all employees; the un-written rule expects junior employees tofirst ask the HR Manager’s PA for an ap- The kind of values demonstrated by the marketing director in everyday work;pointment. The implicit expectations of 3. in everyday work. Three kinds of everyday work-values in a he didn’t mind if RSMs took short-cuts (often with serious consequences), and his2.peers. employees from their seniors or company constitute a major part of its ‘cul- ture’; ‘favourites’ were his product managers at head office (which left field sales staff very In one MNC, the written policies don’t (a) the extent to which managers & staff frustrated).allow managers to oblige their subordinates take short-cuts, versus doing it right the first I believe many corporate training pro-on things like coming late, extra leave, time. For example, a factory planning man- grams (in leadership, team-building, attitude-TA/DA bills, or new furniture, etc. But over ager tells the stores officer to hurry up and change, decision-making, etc) fall short ofthe past 10-12 years, employees have de- send head office the closing stock balances making an impact because the blocks lie inveloped implicit expectations that, in return without first checking these thoroughly. Conduct-Expectations-Values components offor loyalty and results, their managers will (b) the extent to which senior managers company culture. n December - January 2009-10 | MANAGER TODAY 23
  19. 19. 24 ORGANIZATION DEVELOPMENT Future proof Financial crisis, recession and uncertain economic environment are testing the abilities of manage- ment teams to foresee, prepare and lead. Main- taining the commitment of senior management to “strategic conversation” remains a continuous corporation challenge. How can enterprises get more value from future-focused work? How can they put “fu- ture” in the center of decision-making processes? How can they build systems that link future-related activities to core business processes, and bring tangible and immediate benefits to stakeholders Leadership makes the across the enterprise. followers want to achieve To be a Future Proof Corporation, OrganizationsMASOOD ALI KHAN high goals, rather than simply should focus on these six dimensions: bossing people around. Innovation Innovation is a chaotic activity, particularly at the early stages of idea generation, and can be unruly if left without a clear strategy. Innovation strategy defines how top management intends to use the organizations innovative capacity to enhance per- MANAGER TODAY | December - January 2009-10
  20. 20. It is the culture of an organization that naturally emphasizes continuous improvement of processes, one that results in a healthy workplace, satisfied customers, and a growing profitable company. ponent of time management skills. A significant part of decision making skills is in knowing and practicing good decision making techniques. One of the most practi- cal decision making techniques can be sum- marized in those simple decision making steps, which help an organization to be a fu- ture proof organization. 1) Identify the pur- pose of your decision. 2) Gather information.formance and attain the targeted competi- written, spoken, and electronic interactions 3) Identify the principles to judge the alter-tive position. with your audiences. A corporate commu- natives. 4) Brainstorm and list different pos- Innovation strategies play two roles. First, nications plan puts in writing: your objectives, sible choices. 5) Evaluate each choice inthey form part of the competitive strategy of purpose, goals or program of work, audi- terms of its consequences. 6) Determinethe organization by defining the areas in ences, evaluation, timings, and process of the best alternative. 7) Put the decision intowhich new products will be introduced (i.e., feed back. action. 8) Evaluate the outcome of your de-the markets and segments they will com- If your employees are aware with the pur- cision and action steps.pete in). Second, innovation strategies pose and goal of the company and if you NOW “It is not the fruits of past suc-shape the mix of the innovation portfolio and have a corporate communication plan in- cess but the living in and for the future inthe way innovation is managed across the cluding your purpose and goals, that will help which human intelligence proves itself.”whole organiza¬tion at the operational level. you to sustain and get greater productivity Friedrich von Hayek Innovation is not only product develop- of your employees and will make you a fu- Only those organizations survive whichment or services but its how you manage ture proof corporation. plan their future while living in “now”.comprehensibly at every level in the organi- Organizational decision making process An organization begins strategic planningzation. also plays a crucial role to make it future by taking a critical look at itself and the envi- proof. If it is centralized, the decisions will be ronment in which it operates. The processEffective Communication imposed on employees without their partic- begins with an internal analysis of each For an effective communication, organi- ipation, but if it is decentralized, employee major operation, e.g., marketing and sales,zation should clear its Purpose and Goal to empowerment will increase as well as the production, administration and finance etc.its employees. Then there should be a Cor- loyalty and productivity will also increase. This internal analysis is overlaid against anporate Communication Plan. It includes all Decision making skills are also a key com- analysis of external developments such as December - January 2009-10 | MANAGER TODAY 25
  21. 21. customer needs, preferences, and satis- Creating sense of ownershipfaction levels, economic and market condi- and culture of entrepreneur-tions, technological advancements and ship within the organization andcompetitive pressures. departments is very important for After the organization planning organizations to be a future proofteam assesses the firms internal corporation.strengths and weaknesses Most workers are conditionedagainst future external opportuni- to view themselves as one-dimen-ties and threats, a vision is developed along sional in relation to their com-with a mission statement that defines the pany, as a salesperson, or anfirms business purposes and values, identi- engineer, or a manager.fying the ways in which the firm distinguishes Social responsibility is Imagine the possibilities if everyone in yourit from its competitors. the obligation of organization started thinking and acting like organization’s entrepreneurs—like owners of the business.Core Values Imagine if your employees shared the same Cultural norms are behavior patterns that management to make beliefs, both in their abilities and in the pur-are typical of specific groups. Such behav- decision and take pose of your business, and focused all theiriors are learned from parents, teachers, energies on making that business success-peers, and many others whose values, atti- actions that will ful—knowing that they, in turn, would becometudes, beliefs, and behaviors take place in enhance the welfare successful as well. That is the power of anthe context of their own organizational cul- and interests of ownership culture.ture. It is the culture of an organization that It is also important that an entrepreneur’snaturally emphasizes continuous improve- society as well as the desired culture must match the businessment of processes, one that results in a organization. strategy outlined in the business plan. Hehealthy workplace, satisfied customers, and needs to remember that it is easier toa growing profitable company. change a person’s behavior than to change A great strength of TQM and the systems the person’s attitude. Leadership needs toview is that it shows us that growth, prof- establish core values and provide the ap-itability, customer satisfaction, and a healthy • Measure the effectiveness of human propriate tools so that employees can ef-work environment are not mutually exclu- capital policies and practices. fectively complete their jobs.sive. In fact, they are mutually supportive and While making any kind of decision, itnecessary to succeed over the long haul. should be keenly focused if they are benefi- Environment Future Proof Corporations keep focus on cial to shareholders, clients and the em- All outside factors that may affect an or-its ‘Human Capital Issues’. ployees as well. ganization make up the external environ- For this purpose they should: ment. • Treat Human Capital Management as Visionary Leadership/ Personalities The external environment is everythingbeing fundamental to strategic business Although your position as a manager, su- that is outside of the organizational bound-management. pervisor, lead, etc. gives you the authority to ary. Although organizations must interface • Integrate human capital functional staff accomplish certain tasks and objectives in with customers and suppliers in order tointo management teams. the organization, this power does not make survive, there are enormous, but subtle dif- • Leverage the internal human capital you a leader, it simply makes you the boss. ferences between being inside the organi-function with external expertise. Leadership makes the followers want to zational boundary as an employee, and being • Hire, develop, and sustain leaders ac- achieve high goals, rather than simply boss- outside in the external environment as acording to leadership characteristics iden- ing people around. customer, supplier or competitor.tified as essential to achieving specific Visionary leaders/personalities are the Future proof corporation lives in present,missions and goals. agents of a new dawn, working with imagi- plan strategies, and invests for future; while • Communicate a shared vision that all nation, insight, and boldness. They present be a social responsible organization to its ex-employees, working as one team, can strive a challenge that calls forth the best in peo- ternal environment. Invest in human capitalto accomplish. ple and brings them together around a while focusing on its goal and purpose. It cre- • Hire, develop, and retain employees ac- shared sense of purpose. Their eyes are on ates sense of ownership and culture of en-cording to competencies. the horizon, not just on the near at hand. trepreneurship within the organization and • Integrate employee input into the design They are social innovators and change departments and it also produces the lead-and implementation of human capital poli- agents, seeing the big picture and thinking ers which help the organization to be a fu-cies and practices. strategically. ture proof corporation. n26 MANAGER TODAY | December -January 2009-10

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