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AN INTERNSHIP REPORT ON SABRO TECHNOLOGIES (PVT) LTD ISLAMABAD SUPERVISED BY SIR ASAD SHAH JEHAN PREPARED BY SYED ASAD ALI SHAH ROLL NUMBER 19078 MBA (HRM) 2009-11

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Page 1: Internship Report on SABRO Technologies Private Limited

AN INTERNSHIP REPORT ON SABRO TECHNOLOGIES

(PVT) LTD ISLAMABAD

SUPERVISED BY

SIR ASAD SHAH JEHAN

PREPARED BY

SYED ASAD ALI SHAH

ROLL NUMBER 19078

MBA (HRM) 2009-11

DEPARTMENT OF MANAGEMENT SCIENCES

HAZARA UNIVERSITY

Page 2: Internship Report on SABRO Technologies Private Limited

AN INTERNSHIP REPORT ON SABRO TECHNOLOGIES

(PVT) LTD ISLAMABAD

Internship Report Submitted To the Department Of Management Sciences

for the Partial Fulfillment of the Requirements for the Degree of Master of

Business Administration

DEPARTMENT OF MANAGEMENT SCIENCES

HAZARA UNIVERSITY

Page 3: Internship Report on SABRO Technologies Private Limited
Page 4: Internship Report on SABRO Technologies Private Limited

COMMITTEE APPROVAL FOLIO

External Assessor

Mr.__________________________________Signature___________________

Supervisor

Mr.__________________________________Signature___________________

Chairman

Mr.__________________________________Signature___________________

DEPARTMENT OF MANAGEMENT SCIENCES

HAZARA UNIVERSITY MANSEHRA

Page 5: Internship Report on SABRO Technologies Private Limited

AKNOWLEDGEMENT

Being the student of Master in any discipline report writing is a very tough job for any

student. But this becomes easy only on the basis of cooperation of the concerned staff.

Here I mention some of the honorable staff of my office, which really co-operated with

me in this regard.

I would also like to gave my best wishes to the following staff of SABRO

TECHNOLOGIES (PVT) LTD. Islamabad, by name particularly the Head of HR and

ADMIN Department Mr. Dilbar Khan his peon Mr. Nadeem Khan and Mr. Malik Wasim

Akhtar who guide me throughout my job responsibilities and all other individuals who

helped me in every aspect of my job responsibilities and in the preparation of this report.

Except these people I would also very thankful of all the individuals who working in

different departments of SABRO TECHNOLOGIES, who really co-operated with me

whatever I asked from them related to HR.

In the last I am very thankful of my supervisor Sir Asad Shah Jehan who really

appreciates me in building my knowledge.

Syed Asad Ali Shah

MBA (HRM)

I

Page 6: Internship Report on SABRO Technologies Private Limited

Table of Contents

Acknowledgement I

Table of Contents II

Table of Figures V

List of Acronyms VI

Executive Summary VII

Chapter 01 Introduction of Study 01

1.1 Background of studies

01

1.2 Purpose of the Studies 01

1.3 Scope of Studies 02

1.4 Limitations 02

1.5 Research Methodologies 02

Chapter 02 Overview of Sabro Technologies (Pvt) Ltd 04

2.1 SABRO Introduction and Background 04

2.2 History of Sabro Technologies 06

2.3 Location of Sabro 07

2.4 Mission Statement 08

2.5 Vision Statement 08

2.6 Quality Policy 08

2.7 Organizational Structure of Sabro 09

Chapter 03 Departments of Sabro Technologies (Pvt) Ltd 10

3 Introduction 10

3.1 Administration Department 10

3.2 Human Resource Department 11

3.3 Finance and Accounts Department 11

3.4 Production Department 12

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3.5 Researches and Development Department 13

3.6 Purchase Department 13

3.6.1 Local Purchase 14

3.6.2 Foreign Purchase 14

3.7 IT Department 15

3.8 Packaging Department 15

3.9 Design Department 15

3.10 Quality Control Department 16

3.11 Quality Assurance Department 16

3.12 Marketing Department 16

3.13 After Sales Department 17

Chapter 04 Human Resource Management Department of STPL 18

4.1 Human Resource Department 18

4.2 Human Resource Information System 18

4.3 Mission and Vision Statement of HR Department 19

4.4 Hierarchy of HR Department at Sabro 19

4.5 Functions and Roles of the HR Department at STPL 20

4.6 Employees Categories at STPL 21

4.6.1 Permanent Employees 21

4.6.2 Contractor Employees 21

4.6.3 Contract or Seasonal Employees 21

4.6.4 Probationer 22

4.6.5 Relatives of Employees 22

4.7 Human Resource Inventory 22

4.8 Recruitment and Selection 22

4.8.1 Planning for Recruitment process 23

4.8.2 Decision on Vacancies 23

4.8.3 Job Description and Specification 23

4.9 Recruitment Sources 24

4.9.1 Internal Source 24

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4.9.1.1 Direct Applicants and Referrals 24

4.9.2 External Source 24

4.9.2.1 Advertisements in Newspapers (Blind Box Ads) 25

4.10 Short List of Potential Candidates 25

4.11 Interviewing the Potential Candidates 26

4.12 The Screening Process 26

4.13 Personal Assessment Criteria 27

4.14 Training 29

4.14.1 Employees Training 29

4.14.2 Designing Effective Training System 29

4.14.2.1Conducting Need Assessment 29

4.14.2.2Creating Learning Environment 30

4.15 Training Methods 30

4.15.1 Classroom Instruction 31

4.15.2 Distance Learning 31

4.15.3 Audio Visual Techniques 31

4.15.4 On The Job Training 32

4.15.5 Off The Job Training 32

4.16 Employees Development 32

4.16.1 Formal Education 33

4.17 Orientation 33

4.18 Employees Transfer at Sabro 34

4.18.1 Promotion 34

4.18.2 Lateral 34

4.18.3 Interdepartmental Transfer 35

4.19 Compensation and Benefits 35

4.20 Wages or Salaries Plan 35

4.20.1 Working Hours and Overtime at Sabro 36

4.20.2 Deduction from Salaries or wages 36

4.21 Equal Employment Opportunities Issue at STPL 37

4.22 Employee Benefits 38

III

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4.22.1 Medical Facility and Allowances 38

4.22.2 Pick and Drop Facility 38

4.22.3 Uniform and House Rent Allowance 38

4.22.4 Eid Allowance 39

4.22.5 Death and Disability Insurance 39

4.22.6 Pension 39

4.23 Performance Appraisal 39

4.23.1 Purpose of the Performance Appraisal 40

4.24 Performance Management System 40

4.24.1 Identifying and measuring the Performance of employees 40

Chapter 5 My Internship Activities 42

5.1 Introduction 42

5.2 Marking of Attendance 42

5.3 Fulfilling Demand of Employees and Management 43

5.4 Calculating and recording of over time 43

5.5 Provision of First Aid 44

5.6 Issuance of EOBI and Social Security Card 44

5.7 Receiving and Distribution of Mail 45

5.8 Monitoring the Workforce 45

5.9 Acting as Receptionist 46

Chapter 06 SWOT Analysis of Sabro Technologies (Pvt) Ltd 47

6.1 Strengths 47

6.1.1 Strong Brand Image 48

6.1.2 Strong Dealer Network 48

6.1.3 Strong Quality, Sale and Service 48

6.1.4 Market leader in Commercial type & Split AC 49

6.1.5 Pakistan largest AC Manufacturing Company 49

6.1.6 Strong Grip in Home Appliance 50

6.1.7 Strong Management 50

6.1.8 Distribution of Authority 50

IV

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6.1.9 Strong Research and Development Department 51

6.1.10 Free Customer Service 51

6.2 Weaknesses 51

6.2.1 Lack of Advertisement 52

6.2.2 System Variations 52

6.2.3 Lack of Product Range 53

6.2.4 Less Utilization of Capacity 53

6.2.5 Financial Problems 54

6.3 Opportunities 54

6.3.1 Exploration of Market in Pakistan 55

6.3.2 Increase in Product Range 55

6.3.3 Export Opportunity 56

6.3.4 Increase in Production Line 56

6.4 Threats

56

6.4.1 Strong Competition 57

6.4.2 China’s Product 57

6.4.3 Price War 58

6.4.4 Instability of Government 58

6.4.5 Tax Department 58

6.4.6 World trade Organization 59

6.4.7 Investor’s 59

Finding and Suggestions 60

References 62

List of Figures

• Figure 01 Organizational Structure of Sabro 09

• Figure 02 Hierarchy of HR Department at Sabro 19

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• Figure 03 Personal Assessment Criteria 27

VI

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LIST OF ACRONYMS

STPL Sabro Technologies Private Limited

SABRO SA Brothers

Pvt Private

LTD Limited

HAVC Heating Ventilation and Air Condition

HR Human Resource

R&D Research and Development

ISO International Standard Organization

HP Hours Power

AC Air Condition

CNC Computer Numerically Control

CEO Chief Executive Officer

P&D Packaging and Designing

GM General Manager

VP Voice President

AVP Assistant Vice President

MRP Material Resource Planning

PPC Production Planning Control

IT Information Technologies

ACR Air Condition and Refrigerator

EOBI Employee Old Age Benefit Institution

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Page 13: Internship Report on SABRO Technologies Private Limited

EXECUITIVE SUMMARY

I consider myself fortunate to have got the opportunity to work on Sabro Technologies

(Pvt) LTD Pakistan for my MBA (HRM) Internship report. Sabro Technologies is a

pioneer heating ventilation and air conditioning System Company of Pakistan. This

company was started by three brothers in 1968, from Rs.500 and now this is one of the

largest multinational company of Pakistan. Sabro exports their products to Asian, Middle

East, Africa and some European countries like England and Turkey. In this report I focus

the HR department of the company, their functions and compensation strategies.

This report consist of seven chapters, Chapter 1, is Introduction to study which tells about

the report that how I prepare it from where I take data, what are the purpose of my

internship report, what are the scope of this report and what type of limitation occur to

me in preparation of report. Chapter 2, of this report is about the introduction of

organization where I did my internship their background, history, vision and mission

statement of the organization. Chapter 3 discusses the departments of organization and

their brief introduction. Chapter 4, is all about the HR department of Sabro technologies

their functions and roles.

Chapter 5 tells about the activities which I performed during my internship program at

Sabro. Chapter 6, explain the SWOT analysis of organization i.e. its strengths, weakness,

opportunities and threats. At the end in Chapter 7, the problems of Sabro Technologies

are discussed and proper suggestion of these problems is given. This report took one

month in completion, although time is a big constrains but I tried my best to cover all the

function of HR department in this report.

II

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Chapter 01

INTRODUCTION OF STUDY

1.1 Background of studies

For completion of Master of Business Administration Degree it is important for all the

student of this discipline to put their theoretical knowledge to practice, for that purpose

the students are required to undergo six or seven weeks internship with an organization.

The only purpose of that internship is to acquire the student with practice of knowledge

of their discipline.

This report is about Sabro Technologies (Pvt) Ltd. of Islamabad Pakistan. Sabro was

established in 1968 and after it has expended their network, and become one of the

multinational company of Pakistan. It offers different range of product for their

customers.

1.2 Purpose of the Studies

The main purpose of the study is to gather relevant information to compile the internship

report on the Sabro (Pvt) Ltd. Islamabad Pakistan. To observe and collect relevant data in

a useful manner. Such as to work practically in the organization and to develop

interpersonal communication.

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1.3 Scope of Studies

As an intern I worked at Sabro Technologies (Pvt) Ltd. And my main focus of study

research was on the HR department of the organization, there function activates and

operation such as recruitment, selection, employee’s performance and the overall

activities performed at Sabro.

1.4 Limitations

The period of seven weeks is a very limited time for understanding of HR

activities of the Sabro, so time pressure also limited my study.

The management of the company was not very supportive and cooperative

with me, and the information which they provide me is very limited.

The other limitation is that the Head Office of the Company is located at I-

9 Islamabad and the major HR activates are performed there.

1.5 Research Methodologies

This report is based on my seven weeks internship program in Sabro Technologies (Pvt)

Ltd. Islamabad Pakistan. The methodology used for the collection of data is the primary

and also the secondary. But the biggest source of collecting the information is my

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personal observation during working with staff and discussion with them. The formally

arranged interviews and discussions gave me great knowledge in this regards.

Primary data

The data collected for the first time is known as primary data and I collect

that data from the following sources.

Personal observation

Interviews of staff

Secondary data

The data which undergo through statistical and mathematical techniques

and after it has been collected is known as secondary data.

Organization broacher

Internet

Sabro Profile

3

Page 17: Internship Report on SABRO Technologies Private Limited

Chapter 02

OVERVIEW OF SABRO TECHNOLOGIES (PVT) LTD

2.1 SABRO Introduction and Background

Sabro (S.A Brothers (Pvt) Ltd.) is an ISO-9001 certified air-conditioning

manufacturing company located at Islamabad, Pakistan. This company was

established in 1968. There were three brothers named Sadiq, Siddique and Ashiq

who started this factory from Rs. 500 by taking loan. With the help of that loan they

started a small workshop in Satellite Town Rawalpindi and after the forty four year

continuous efforts and hard work that small workshop is now one of the leading

organization of Pakistan in the field of HVAC.

Today’s trend of making air-conditioning cinema building boosted the overall sales

of the air-conditioning industry. Sabro has the superior management and technical

personal which make right product for right person at right time according to the

customer’s satisfaction. Today Sabro is one of the leading air-conditioning

manufacturing organizations of Pakistan which has now achieving the goal of

exporting their products. For the past six years Sabro has been exporting their

product to middle and central Asia countries and is facing the American and

Japanese competition. In Pakistan Sabro is not only the name of quality and leader

of domestic competitor but is also irritating the foreign competition. In 1989 Sabro

introduce Concordia Split type air-conditioners which make Sabro visible to general

public.

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Sabro is the leader in manufacturing of split air-conditioners, cold storage units, air

handling units, air cooled water chillers, humidifier units, window units, hot boiler

units, air curtain, electric geezers and motors. The more than 600, employees of

Sabro are working through out Pakistan, in manufacturing, designing, marketing,

repairing and installing of air conditions. Sabro are active in 6, businesses, varying

from room air-conditioner to domestic air conditioner that is from 1.0 to 40 ton and

from remote control to software application.

Sabro is the largest Air-conditioning manufacturer of Pakistan having the biggest

product rage. The company is enjoying good credibility in Multinationals,

governments and Private Corporation since 1968. Sabro provide special, standard

and nonstandard air-conditioning units from domestic to industrial requirement

range. Sabro Technologies is a subsidiary of the Sabro group of companies which is

engaged in manufacturing of Sheet Metal cutting dies, Draw dies, Moulds and other

various kinds of machines.

Sabro are producing over 3,500 air conditioners and 5,500 electric-motor every

year, and the output of the company is increasing day by day. In every fifth air

conditioners Sabro made components are being used in Pakistan.

Sabro have the world class solution for cooling systems such as personal and

domestic uses. Sabro brand name is more reliable, more efficient and well known in

the industrial air-conditioner for more than two decades.

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2.2 History of Sabro Technologies

Sabro technologies were established in 1968, the three brothers laid down the

foundation of the company from the amount of Rs.500. In the early stage they only

take decision for manufacturing of coils, fans and other accessories. In 1970, Sabro

enhanced their production capacity, now they prepare Air Cooled Split unit up to

10HP and water Chillers up to 50HP. Next decade is the innovation and research

decade in which the R&D department was established. First mini split air condition,

water called chillers up to 40HP, hot water generator and installation of automatic

CNC machine. In 1990, Sabro extend their market worldwide and get the

certification of ISO 9000, in 1997. They introduce Split AC in plastic body and the

installation of 1800, ton plastic molding, 5/8 inch Fin punching machine and new

CNC control sheet punching press. The new millennium journey was started with a

vision in which they extend their product line. Development of microprocessor

controller in 2000, and launching of Sabro soft company in 2001, lunching of

polyurethane forming setup in 2004, launching of R&D village in 2005,

development of thermal break aluminum profile in commercial air handling units of

all types in 2006. Development of shell and tube type shell in 2007. Now Sabro has

expend their export to the Asian countries (Afghanistan, Kyrgyzstan, Kazakhstan,

Uzbekistan, Malaysia, Bangladesh, Iraq and Sri Lanka), Middle East (Bahrain, Saudi

Arabia, Kuwait, Qatar, Oman and UAE.), Africa (Kenya, Tanzania, Morocco and

Uganda.) Europe (England and Turkey).

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2.3 Location of Sabro

Sabro Technologies (Pvt) LTD Head office is situated at Plot No. 270, Industrial

Triangle, Kahuta Road, Islamabad Pakistan.

Branches of Sabro Technologies are located in different cities of Pakistan. These cities

include Lahore, Karachi, Peshawar, Gujranawala and Faisalabad.

Lahore branch office of Sabro is located at house no.2, 17-A, Block E-1, Gulberg III

Lahore, Pakistan.

Karachi branch office of Sabro is located at 95-B, Block-7/8, D.C.H.S, Main Tipu Sultan

Road, Shabbirabad, Karachi, Pakistan.

Peshawar branch offices of Sabro Technologies are located at Sabro House, Adjacent

Runway, University Road, Peshawar, Pakistan.

Gujranawala branch office of Sabro is located at Sabro Palace, Bismillah Market, Near

GMS Factory Near Pindi Chowk GT Road Gujranawala.

And Faisalabad branch office of Sabro Technologies is located at Computer Arcade

Office 909-B, 2nd Floor, Office No. 63, Near Alfatah Complex, People Colony,

Faisalabad, Pakistan.

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2.4 Mission Statement

Our mission at Sabro is

To follow all the laws and rules of Islam.

To fulfill our customer need and desire and manufacture good quality products

worth their price.

To support our employees through better career opportunity.

To provide the highest possible return on shareholders’ investments.

To sincerely back up our business alliances.

To contribute in the development and promotion of Hi-technology in the country.

To serve the society with fever and acts as a model for its uplift.

2.5 Vision Statement

To be standard as a company which provide its product and service quality, integrity and

commitment to all of its clientele and a mainstay in the business community?

2.6 Quality Policy

We want to increase our customers expectation through continues improvements in the

quality of our product and services.

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2.7 Organizational Structure of Sabro

9

Board of Directors

Chairmain Sabro Companies

President / CEOSales Head

Manage Sales OperationManager Customer Services

Assistant Sales

P & D

Manage SalesSales Head Karachi

Sales Head Lahore

Sales Head Faisalabad

Manager PurchasePurchase Officer

Assistant Purchase

Manager FinanceAssistant Accountant

G. M. AdminHead of HR Admin

Assistant Admin

Field Officer Admin

V. P. OperationProduction Head

Assistant ProductionSheet Metal Shop

Coal Shop

ACR 1, 2, 3, 4

Paint Shop

Fan Shop

Electrical Shop

Manager PPCI / C Store

Assistant Store

Chief EngineerManager Design

DraftsmenAssistant Electrical Mechanical

Quality ManagerQuality AssistantQuality Inspector

Manager Application Engineer

Figure 01 Organizational Structure of Sabro

Page 23: Internship Report on SABRO Technologies Private Limited

Chapter 03

DEPARTMENTS OF SABRO TECHNOLOGIES (Pvt) LTD

3 Introduction

In this chapter I briefly elaborated different departments of Sabro Technologies. This is a

multinational company; there are many departments in this company for every specific

field of work. Following are some of the important departments of Sabro Technologies.

3.1 Administration Department

Admin department of Sabro Technologies control the overall activities concerning the

factory. It consist of three peoples Mr.Dilbar Khan Head of HR and Admin Department,

Mr. Waseem Akhtar and Mr. Nadeem Khan. Major responsibilities of Administration

Department are:

Recording of Attendance

Maintenance of Stores

Maintenance of Factory

In and out and checking of material in Factory

Provide assistance to all departments regarding material

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3.2 Human Resource Department

In every organization the HR Department is very important because nothing is done

except the human ware, it is the Human who made an organization not building .Human

Resource Department of Sabro consist of two peoples at this time. That is Mr.Dilbar

Khan and Mr.Nadeem Khan. Mr.Dilbar Khan is the Head of Human Resource

Department and is an HR manager from last three years. MR. Nadeem Khan is an

assistant of the HR Manager. Human Resource Department is very important in the Sabro

that’s why a well furnished office was made by the Sabro management for this

department. Human Resource Department is now recruiting more peoples to increase the

number and work of this department. HR Department of Sabro Technologies is fully

discussed in chapter four, their function and roles.

3.3 Finance and Accounts Department

At Sabro technologies the finance and accounts department are combine. Management of

Finance in and industry is very important. In proper handling of this area will lead to

insolvency despite of all the resources and opportunities. Accounts department that

records daily transactions of both appliances and power division that prepares financial

statements such as Balance sheets, Income Statements, Cash Flow Statements, etc

Functions of finance are:

Perform as a workstation and as an integrated circuit amongst all department of the

company.

Allocation of resources / funds throughout the organization.

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Arrangement of money value resources or funds at favorable prices and on proper

time.

Dealing with banks, modarabas, investment firms, government section calculation

of the employee’s salaries and its recording.

Conducting of audit of the financial records which is prepare by the Accounts

department.

3.4 Production Department

Main responsibility of this department is to develop and make those products which are

required for any specific department. This department receive major plan for complete

financial year which show the models and numbers of every brand and deadline time for

each lot. Production department of STPL’s consist of different units according to

products. Following are some of the names of Sabro production department.

Sheet Metal Shop

Coil Shop

Paint Shop

ACR 1,2,3,4

Paint Shop

Fan Shop

Electrical Shop

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3.5 Researches and Development Department

A department of active and professional people, having distinctive characteristics, that

always remains engaged in designing goods better than before. This department experts

fully co ordinate with the marketing department and very efficiently and effectively

interprets their findings for introducing new features in the same products or designing

and launching new products into the markets. After interpreting plans and getting

approvals it forwards the design and procedure to the production department. Sabro

believes in quality and quality can only be achieved by continuous improvement. Our

newly established department consists of electrical and mechanical engineers who are

devoted, dedicated, determined and enthusiastic. Sabro’s R&D department has two top

priorities:

Researching and developing basic technologies that can be used to create future

business opportunities.

Researching and developing new technologies that can be utilized to further

expand current business opportunities

3.6 Purchase Department

Sabro Technologies has very good methods for production of goods. They purchase raw

material for their products not only from Pakistan but also from Asian countries. That’s

why STPL has two different departments for purchasing that’s are:

Local Purchase

Foreign Purchase

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3.6.1 Local Purchase

Local Purchase department is that department which is responsible for the acquisition of

raw materials which are used in making of various products of factory. Such products

includes from small things to large such as from nails to metal sheets. In the beginning of

each and every financial year this department receives a major plan from all over

management of the factory, which shows all the material that are required for each

product. Major plan also show the time limit and dates for raw material.

Procurement team makes small milestones and benchmarks from the major raw material

plan for the purpose to ease them to remember the limit which they required and this

department also reminds finance department for the proper arrangement of finance for

this purchase.

3.6.2 Foreign Purchase

Responsibilities of both the Local and Foreign purchase department are same but the

difference is only in dimension that the foreign purchase department arranges raw

material from abroad. This department also receive plan as local purchase for complete

financial year and on the basis of that they develop milestones to execute the plan

properly. It is one of the important function of this department to purchase raw material

in low cost which satisfy the need of production and finance department both in quality

as well as monetary terms.

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3.7 IT Department

Major responsibilities of IT department at STPL are:

Detection of problems and their maintenance in computers.

Software’s installation and deletion.

Copy Right protection and their issuance.

Maintenance and development of internal network.

Maintenance and development of domain for every one.

Creation and enhancement of internal software.

Issuance of Software and hardware

3.8 Packaging Department

In Sabro Technologies there are two different packaging departments one for the

Appliances such as Refrigerators and other one for the power products such as

Transformers, switchgears and energy meters. Both of the departments take care of all

safety requirements for the best delivery of goods to the customer and always do the final

audit of the finalized goods before distribution.

3.9 Design Department

Design department of Sabro makes and draw different types of design for the different

type of products of Sabro. This department design different parts of Air conditioner.

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3.10 Quality Control Department

Sabro gives great importance to delivery of high quality products to its customers. Design

and manufacturing facilities follow ISO 9001:2000 procedures. All products

manufactured must pass stringent quality testing procedures. A standard inspection and

testing plan is followed for all jobs.

3.11 Quality Assurance Department

Quality is a continuous process at Sabro where organization-wide action is taken to

increase effectiveness and efficiency of the engineering process. This means that they

continuously concentrate on improving our own performance to ensure that their clients

continuously benefit from it. Their aim is to meet their expectations every time. They

take proactive stance towards quality moving beyond Quality Control to provide Quality

Assurance, so you can be confident that your requirements will be met with best quality

consistently.

3.12 Marketing Department

Talking about Sabro marketing department, it always been and still it is considered to be

a backbone of the Appliances business unit. This department is having most hardworking

and talented staff that remain busy in searching new markets for its products and always

initiates different production programs to satisfy its customer needs and preferences. This

Marketing department has un-beatable marketing forces that on regular basis conduct

market surveys in order to look into Competitors position, customer’s taste, retailers and

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wholesalers needs under the supervision of four professional marketing managers plus

General and Senior Marketing Managers.

At time when the forces feel a change in customer preferences they immediately

undertake distinctive steps and make new sales plans. Such plans are forwarded to each

respective department by the marketing department in order to get their requirements to

make the plan successful.

3.13 After Sales Department

After Sales Services is another active department of Sabro’s which gives a sense of care

to its customer whenever it feel things are going wrong or against its desire. This

department has their own technicians available for the services in the company as well as

having after sales centers outside the company at different places in the cities. This

department assures 100 percent parts replacement of appliances if complains fall in the

warranty time period.

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Chapter 04

HUMAN RESOURCE DEPARTMET OF STPL

4.1 Human Resource Department

In every organization the HR Department is very important because nothing is done

except the human ware, it is the Human who made an organization not building .Human

Resource Department of Sabro consist of two peoples at this time. That is Mr.Dilbar

Khan and Mr.Nadeem Khan. Mr.Dilbar Khan is the Head of Human Resource

Department and is an HR manager from last three years. MR. Nadeem Khan is an

assistant of the HR Manager. Human Resource Department is very important in the Sabro

that’s why a well furnished office was made by the Sabro management for this

department. Human Resource Department is now recruiting more peoples to increase the

number and work of this department.

4.2 Human Resource Information System

The newly introduce computerized system used for the information about human

resource. This system is used for the fair implementation of HR activities and their

functions which are built around a central comprehensive database of all the employees

and is linked to all areas of Human Resource Management. This helps in smooth

functions of HR.

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4.3 Mission and Vision Statement of HR Department

Our mission at Sabro is to provide quality Human Resource services to develop, attract,

motivate and retain diverse workforce and a supportive work environment. This is done

by giving emphasis on the customer service and better communication with the

employees of the organization. Our vision at Sabro is to ensure a healthy, qualified,

diverse and highly motivated workforce who focused on achieving the critical outcomes

through cost effective and result oriented HR services, policies and practices.

4.4 Hierarchy of HR Department at Sabro

19

General Manager Admin

Head of HR Admin

Assistant Admin Field Officer Admin

Figure 02 Hierarchy of HR Department at Sabro

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4.5 Functions and Roles of the HR Department at STPL

Following are some of the important roles and functions of the HR department at STPL

Islamabad.

Supply of work force and manpower

Policies formulation and initiation

Testing jobs and application for that job

Recruitment and selection

Performance appraisal and compensation

Carrier development

Record maintaining of employees

Health and Safety programs

Training and Development

Advice and control

Transfer, promotion and layoff

Services and Benefits

Personnel information system

Personnel and Behavior Research

These are the roles and functions which are performed by the HR department of Sabro

Technologies (Pvt) Ltd.

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4.6 Employees Categories at STPL

In Sabro the employees are categorize under the following heads.

4.6.1 Permanent Employees:

Permanent employee is those employees who are given an appointment letter of STPL.

And there jobs are expected to continue for a period of more than 9 months. The numbers

of permanent employees are 70 at STPL Islamabad.

4.6.2 Contractor Employees:

Contract employees are those employees who are appointed by the contractor of Sabro

(Pvt) Ltd, and given with an appointment letter of the concerned contractor. The numbers

of contract employees are 160 at STPL Islamabad.

4.6.3 Contract or Seasonal Employees:

These are those employees whose length of services is less than 9 months. The numbers

of such employees at STPL are 20.

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4.6.4 Probationer:

Probation is a period of six months which is given to both the permanent and contract

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

probationer.

4.6.5 Relatives of Employees

Employment for the close relatives such as Son, Father, First Cousins and Uncle is

strictly prohibited.

4.7 Human Resource Inventory

Number of Employees at STPL Islamabad 250

Number of permanent employees 70

Number of contract employees 160

Number of semi contract employees 20

4.8 Recruitment and Selection

Recruitment and selection are very important functions of the HR department, Sabro

perform these function in the following manners.

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4.8.1 Planning for Recruitment process

The recruitment process is an important function of the HR department and they plans for

it.

4.8.2 Decision on Vacancies

Any department in the organization who need Human Resource they request to the HR

department and send their required demand to HR department to increase their inventory.

Before deciding on the existence of a vacancy, HR department checks that whether they

need and that need are full fill by the existing employees and if the existing employees

doesn’t full fill the requirement then they go for the external source and for that they

checks whether it should be permanent, full-time or whether it should be a contract

employees.

4.8.3 Job Description and Specification

If an HR department need an inventory for that they specify the qualification and

experiences that what the job holder should performed, where to perform when and how

to perform. If a candidate qualifies the required skills and abilities the HR department

selects that candidate for the required job.

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4.9 Recruitment Sources:

The STPL Recruit employees from two sources that is internal and external.

4.9.1 Internal Source

Internal recruitment is that type of recruitment in which the Sabro upgrade their present

employees. Sabro uses this method because the existing or present employees know more

about the organization and its activities.

4.9.1.1 Direct Applicants and Referrals

Direct Applicants are the peoples who apply for vacancy without promoting from the

organization while Referrals are those peoples who are prompted to apply by someone

within the organization. STPL use both the sources for recruitment.

4.9.1 External Source

External Source of is that type of recruiting in which if the current or existing employee

of the organization doesn’t fulfill the need then the HR department select employees from

external source that is from outside of the organization.

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4.9.2.1 Advertisements in Newspapers (Blind Box Ads)

HR department of STPL gives BLIND BOX Ads in the major newspapers of the country.

The management of STPL believes that this generate less desirable recruits and at a grater

expense. The HR manager of STPL noted to sight the two important points while

advertising a job that is what to say and to whom to say. In Sabro most of the posts are of

the special nature, so the company advertises these posts on Sunday in the Daily “Jung”

and the “Dawn”. In these advertisements the company only gave the PO Box#, and keeps

confidential the name of the company, because to avoid any sort of referrals that affects

their choice of the applicant.

4.10 Short List of Potential Candidates

The HR Management of Sabro decides on the length of the short-list that includes five or

six peoples mostly. The number of the short listed candidates varies from job to job but

mostly their number is 5 or 6 peoples. The HR managers also take help in this regard

from other staff such as supervisors and managers in the organization. The HR managers

also look the following when reading an application.

How well-matched is the candidate to the requirements

And the quality of Presentation.

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4.11 Interviewing the Potential Candidates

The screened candidates are then called for interviews. The date and time for the

interview are arranged by the HR mangers and the candidate must be appears for the

interview on that date. The questions which are asked in the interview are designed in

such a way to judge the personality and ability of the candidate. The interview is some

time structure and some time it is unstructured this depend on the nature of the job which

is under consideration. The interview which is conducted by the head of the department is

of technical nature interview while the HR management in Sabro mostly conducts the

non-technical interviews. But in most cases both the parties are present while taking an

interview.

4.12 The Screening Process

After taking the initial interview the set of panelists screened out the potential candidates

to minimize chances of error in selecting the candidates. The HR management in this

regard sometimes keeps a small number of candidates in reserve.

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4.13 Personal Assessment Criteria:

Scale Office Staff Qualification Experience

1 Peon, Office Boy, S.Gurd Literate Preferable

2 Drivers Metric/FA Driving Licence+2years+Test

3 Store Keeper, Purchaser &

Telephone Operator

FA 2 years of experience of Sabro

In the relevant field+ test

4 Accounts, Cashier, Sales and

Marketing Assistant

Graduation 3 years experience in the relevant

field+ Test

5 Accountant, C.S Officer, Excise

Officer, Store Officer

Graduation 5 years experience of Sabro in

relevant field + Test

6 Admin Officer, Accounts Officer B.Com / BSc 5 years experience of Sabro in

relevant field + Test

7 Trainee Executive, Executive,

Secretary, HRO

Post Graduate,

ICMA, CA Inter

Fresh

8 Executive, Exe Finance, Exe Sales,

Exe Marketing

Post Graduate,

ICMA, CA Inter

3 years or 1 year in Sabro

9 Manager Post Graduate,

ICMA, CA Inter

7 years or 5 years in Sabro as

Executive + Test

10 AVP Post Graduate,

ICMA, CA Inter

5 years in Sabro as Manager (Only

promotional post)

Scale Factory Staff Qualification Experience

1 Helper (Technical) Metric Fresh

2 Semi Skilled Worker Metric 3 years in Sabro + Test by promotion

committee

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3 Skilled Worker / Mechanic /

Welder

Technical

Diploma

Fresh or 5 years in Sabro + Test by

Promotion Committee

4 Junior Supervisor / Quality

Inspector

Technical

Diploma /

Graduation

2 years in Sabro + Test or DAE + 2

years in Sabro

5 Design Supervisor / Associate

Engineer / J. Sales Engineer

DAE / Technical

Diploma

DEA Fresh / 5 years in Sabro + Test

6 Tech Supervisor / Web Developer /

Foreman / Production Coordinator

DAE / Technical

Diploma

7 years in Sabro + Test

7 Trainee Engineer /

Gen. Forman

BSc / BE

/MCS / BCS

Fresh

8 Engineer / Software Developer MCS / BCS /

BSc / BE / DAE

3 years or Trainee Eng + 1 year in

Sabro / DAE + Test or DAE + 15

years in Sabro

9 Manager / Mould Designer BSc / BE / MSC

Eng

7 years or 5 years in Sabro as

Executive + Test or DAE

10 AVP BSc / BE / MSC

Eng

5 years as a Manager in Sabro

Note

All promotions are subject to the vacant post and minimum criteria are as mentioned in the

above given table. Promotion test will be designed by promotion committee keeping in

view the skill required for the post.

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Figure 03 Personal Assessment Criteria

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4.14 Training

Training teaches the organization members that how to perform their current job and

helping them to acquire the knowledge and skill which make them effective.

4.14.1Employees Training

Training is the organized procedure used for the enhancement of knowledge and skills of

the organization members. Every employee hired by the organization required some sort

of training for performing their job efficiently. Training will be given by the trainer to the

employees and many firms provide copies of description and specification for the job

which they have assigned to the employees.

4.14.2 Designing Effective Training System

Sabro management uses the “Instructional Design Process” which refers to a systematic

approach for developing the training programs. This program consists of the following

things:

4.14.2.1 Conducting Need Assessment

The assessment of employees in organization that what type of training and development

are required and what type of skill and knowledge they need to acquire. Different

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pressure points suggest that whether training is necessary that are the new technology,

performance problems, new legislation, job redesign, new services and the lack of skills

in the employees which compile the organization members to give training to their

employees. Some sort of training is very necessary for every organization such as fire-

fighting training for every department and there are fire-fighting teams which consist of

the young guys who are specially train for the fire-fighting.

4.14.2.2Creating Learning Environment

The training program applied by the HR manager includes specific learning principles. In

the following lines some of the principles are given which is followed by the Sabro

Technologies (Pvt) Ltd.

Employees of the organization need to know that why they should learn

Employees use their own experiences for learning

Employees need to have the opportunities to practice

Employees Feedback

4.15 Training Methods

Different types of methods are used by the STPL for training such as class room

instruction, distance learning and audiovisual techniques which is given below.

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4.15.1Classroom Instruction

In such type of training the instructions are given to the employees in a control

environment in a specific time at a specific place. The trainer gave a lecture to the group

and the participant is allowed with question and answer periods and discussion. In this

method the instructor tries to build the active participation of the employees, gave job

related examples and exercises into a classroom instruction so that trainees will learn

and use the information which they got during the training. Such type of training is done

for the managerial type job.

4.15.2 Distance Learning

STPL provide Distance learning training in which information are providing by the

Head Office about new services, procedures or policies as well as skills. This involves

two way communications; it includes audio, video and document conferencing.

4.15.3 Audio Visual Techniques

This method of training is very common in STPL it involves Slides, Video and

Overheads. In this method the video is more popular method it is used by the

organization for improving the communication skills, customer service skills,

interviewing skills. This method stats that how the procedures are follow.

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4.15.4 On The Job Training

Training on the work setting is known as on the job training. STPL used this method for

the newly hired employees. This method is used for the upgrading the skills of

employees when new technology introduced in the organization. Basic philosophy of the

HR management of STPL is that employees lean more through observing the peer

managers performing the job and trying to imitate their behavior.

4.15.5 Off The Job Training

Off the job training is that type of training in which the training is given to the

employees not on the work place, this type of training is give to the executive level of

employees and such training are not more than two to three days.

4.16 Employees Development

HR manger of STPL ensures that employees obtain necessary skills and abilities to

perform the current and future jobs, because of the new technology will rapidly change

in this field. The STPL believes in team work, for that managers and employees develop

skills to be successful in a team environment. The HR management of Sabro helps

employees to identify their interest in the work and goals and cope with issues such as

balancing work and family roles. This area of the human resource management of Sabro

deals with.

Sabro HR mangers ensure that employees need the skill to perform their current

job.

Sabro HR managers prepare their employees for future work roles

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Sabro HR managers identify the interests of employees, goals, values and other

career issues.

4.16.1 Formal Education

Formal degree or education programs are offered for the supervisors, executives and

middle managers and also special programs for particular jobs are also offered at Sabro.

Sabro provides 50% loan to their mangers, supervisor, or even to their lover level

management for the education purpose. Some time if the education help in skill

development the company fully support the employees in this regard. The company also

gave loan from its own budget for the formal education.

4.17 Orientation

Orientation is the process of introducing new employees to the organization and their

work unit. When new employee comes to STPL they make an orientation program for

them. They provide them a hand book, copies of necessary documents, organizational

charts and job description etc to the new employees about the organization. Head of the

department and HR management also introduce the new recruited employees to their

concerned department and their work place. STPL also make the arrangement of an

informal tea for the new recruited employees which is also attend by the higher

management such as executives and vice president. STPL give more stress on the

following points in an orientation.

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Emphasizing on the procedures and policies of organization.

Illustrating performance standards

Provision of balance work place

4.18 Employees Transfer at Sabro

The moment of an employees from one position to another position, whether inter or intra

departmental is known as transfer. In Sabro the transfer of employees falls into three

categories.

3.18.1 Promotion

If a position is vacant and that vacant position is filled by a current employee who moves

from one lower position to a higher position is known as promotion.

4.18.2 Lateral

Lateral transfer is that type of transfer in which an employee’s moves to another job at

the same level. Such type of transfer is very common at STPL.

4.18.3Interdepartmental Transfer

That type of transfer in which a vacant position is filled by an employee who is transfer

from one department to another department.

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4.19 Compensation and Benefits

Companies offer different type of benefits and incentives to their employees in exchange

of quality customer service. The pay and benefits are used to reward employee’s

membership in the company to attract the new potential employees. The positive

influence of new technology, new work designs and the quality movement on

productivity can be damage if the employees of organization are not satisfied with the

pay and benefits which the company provides or the pay and benefits are not equally

distributed by the company.

4.20 Wages or Salaries Plan

Salaries and wages are the important function of the management, which deals all aspects

of employee’s compensation. Wages or salaries are the remuneration given to the

employees in return of their services which they provide to the company. The salaries or

wages depends upon the position of the job if a job is of high value the remuneration paid

for that job is definitely high and if the position of the job is of low value the

remuneration will be lower. This measurement can be used as a foundation for the

calculation or determination of the wage or salary. Jobs are being evaluated on the basis

of physical and mental efforts of employees and their accountability, that’s why the job

are categorized in different grades according to the measurable differences in leaves and

responsibilities of duties. Sabro determined its wages and salaries structure to attract,

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motivate and retain the quality employee keeping in mind the local market the financial

commitment of the establishment. Minimum wage salary at Sabro is Rs.7000 per month.

4.20.1 Working Hours and Overtime at Sabro

Normal working hours at Sabro are 9 hours in a day which include 1 hour of break. 48

hours in a week. If any worker of scale 4 working hours exceed from normal 48 hours,

that is consider as overtime of the employee. For the drivers the minimum pay is 2900

and the overtime paid to them are single which is given to them according their basic pay.

If work is more at any department, the head of the department issue a written permission

to the employee to do an overtime when it is necessary even on holiday. Rate of overtime

payment will be given to any employee on pro rata basis according to the basis salary i.e.

Basic Salary / 30*2

4.20.2 Deduction from Salaries or wages

Following deduction is made from salaries and wages.

Fine

Absence from duty

Anything which is in the custody of an employee and will damage these

losses shall be deducted from the salary of that employee.

Deduction under the court order

Deduction for recovery of advance

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Deduction for the adjustment of over payment of wages.

4.21 Equal Employment Opportunities Issue at STPL

Equal employment opportunities at STPL based on.

Age

Race

Gender

Religion

Disability

Nationality

STPL has one of the major diversity issues that there is gender discrimination, there is no

female working in STPL, which are very surprising for such big organization. The 2nd

thing which I noted at STPL is that the average age limit in the organization is from 20 to

30 years. The third thing which I note is that they do not entertain the disable peoples at

STPL.

4.22 Employee Benefits

STPL provide the following benefits to its employees and

management.

Medical Facility and Allowances

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Pick and Drop Facility

Uniform and House Rent Allowance

Eid Allowance

Death Insurance

Disability Insurance

Pension

4.22.1 Medical Facility and Allowances

STPL provide medical facility and allowances to their employees, medical allowance is

given from grade seven and onward.

4.22.2 Pick and Drop Facility

STPL provide the pick and facility for both the worker and for the management of the

factory. Buses for the workers, carriers and cars for the managerial staff.

4.22.3 Uniform and House Rent Allowance

STPL provide both uniform and house rent allowance to their employees. These

allowances are given from scale 1 to scale 12 employees.

4.22.4 Eid Allowance

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

Ul-Fitar.

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4.22.5 Death and Disability Insurance

The employees are insured both in case of death and disability. Employees are insured for

the disability during the work from employer side. Permanent injury is insured along with

the medical treatment.

4.22.6 Pension

STPL provide pension to all the permanent employees who completed their ten year of

service.

4.23 Performance Appraisals

The HR manger at STPL set clear cut standards of performance appraisal for every job; it

involves getting information that how each employee is performing their job. And will

give reward to those employees who perform their job effectively and will improve the

performance of those who are not efficient and will provide a justification that why

employees are performing poorly. The performance of the employees based on their

qualification and experiences. Performance of the employees is calculated on the formula

of desired performance less Actual performance. The new performance appraisal system

developed at STPL is the 360 degree appraisal system, presently the STPL use the annual

appraisal system but now they are thinking to start monthly performance evaluation

system which will lead the organization towards success.

4.23.1 Purpose of the Performance Appraisal

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There are two basic purpose of the performance appraisal system at STPL one is to

increase the performance of employee and the other is employees development.

4.24 Performance Management System

Performance management system is a continuous process of identifying, measuring and

developing the performance of individual and team and linking that performance with the

organizational goals. At STPL the performance management system of employees

consists of the processes that is used to identify measure, improve, encourage, evaluate

and employee’s performance. Professionals of the HR department of the STPL provide

the following guidelines.

Give complete information to the employees about their

performance

Clarify the development needs of employees

Identify that what the organization needs

The performance of personal are documented

4.24.1 Identifying and measuring the Performance of employees

Employee’s performance show that what the employees do or does not do. In STPL the

employee’s performance consist of the following things.

Quality of output

Quantity of output

Time in which the output are produce

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Customer satisfaction

Cooperation

Except these dimension of performance some general are also applied to various jobs.

Specific job performance of the job identifies the most important element in a job. STPL

use more than one job criteria for a job. Some time one criteria is more important for one

organization and that is not so much important for the other organization. So we give

weights to show the importance of several job criteria in a job. At STPL the following

system is used for weighting.

Development of employee 35%

Increase in revenue 20%

Satisfaction of customer 30%

Cost control 15%

Total Performance Management 100%

Chapter 5

MY INTERNSHIP ACTIVITIES

5.1 Introduction

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For completion of MBA degree an internship program of seven or eight week is essential

for every student. As my specialization in MBA is HRM therefore I join the HR

department of Sabro Technologies (Pvt) LTD. Sabro is one of the largest air-condition

manufacturing company and I feel that my internship requirement will be fulfill there

fully, that’s why I join this organization. During my internship program I have done the

following activities as internee in the HR department of STPL.

5.2 Marking of Attendance

Marking of the employee and management attendance in the concerned register of Sabro

technologies is my first activity and I performed this activity in a well manner. There are

22, shops and different department in STPL. In charge of every department and shop is

responsible for sending daily attendance and over time record to the Admin and HR

department. According to the attendance sheets received, assistant Admin officer guide

me and I fills the attendance in concerned register, office staff sign in front of their names

at reception. After recording the attendance in the register these attendances will we put

in the computer software MRP which calculate the salary of each employee

automatically?

5.3 Fulfilling Demand of Employees and Management

Fulfilling the demand of employees and management is another activity which I

performed during my internship program at Sabro Technologies. If any employee or

management of STPL needs any type of things such as paper, pen, pencil, stapler, first

aid medicine and cleaning and washing sops I will gave them if they bring a voucher of

their required item and that voucher will be dually sign by the concerned authority. My

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duty at this stage is that I will check the sign of concerned authority on the voucher also

check the quantity and date on the voucher, if these things are correct I will then issued

him these things.

5.4 Calculating and recording of over time

Calculating the employee’s overtime and recording of this overtime is also my job at

Sabro. If it is necessary to stop any worker after factory hours for work, department in

charge fills overtime form and sign it from the general foreman and send it to the Admin

and HR department. In the HR department the calculation of overtime of employees is

my job responsibility. I calculate the monthly overtime record it and then prepare salaries

from it, the manager Admin and HR department send the monthly overtime report to the

president. Recording of the overtime of personal will be kept in register No:

ADMIN/REG-10 with Admin department.

5.5 Provision of First Aid

Provision of first aid in the factory to employees is also my duties at my internship

program. First aid box is available in every department for minor incidents. Approved

medicines and bandage is available in these boxes. Record of use of these medicines is

maintained in forms present in these boxes. Necessary medicines are provided in these

boxes in first week of every month. Record of these medicines is kept in ADMIN and HR

department in concerned files is my job responsibility. And if any worker is severely

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

company’s expenses.

5.6 Issuance of EOBI and Social Security Card

Social security card is issued to the regular and contract employees for medical facility.

EOBI cards are issued to the regular and contract employers for pension /old age grant of

benefits. Necessary steps are taken keep in view the age and duration of services of the

workers according to the rules. Being the internee in the STPL I record these activities.

Recording of the EOBI and social security cards is kept in Admin and HR department.

Separate record is maintained for EOBI and security cards.

5.7 Receiving and Distribution of Mail

During my internship program at Sabro I also performed the activity of receiving and

distribution of company mail and recording of them in respective register. And if any

type of mail is essential to any concerned authority I will forward that message to that

concerned authority in the company and also outside the company. As the Head office of

company is located at I-9 Islamabad, so different messages come from the general

manger and also from the voice president for different concerned authority then I will

forward that message to respective person.

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5.8 Monitoring the Workforce

Monitoring of the workforce is not so much easy activity which I performed during my

internship program, but this activity is much easier for me with the help of Mr. Dilbar

Khan Head of the HR department. Whenever he goes on the visits of factory to check the

performance of employees he also call me and he guide me that how you can take much

work from an employees or worker, and how can u guide an employee at work place.

When a worker cannot performed their work according to the requirement, then we will

guide them to performed in a proper way and if we cannot understand that work then we

will call the concerned deferment authority then they will guide them in more accurate

way and through this we will get more output through low cost.

5.9 Acting as Receptionist

Being the internee in Sabro technologies I also performed the activity of receptionist.

Two days at Sabro i did this job in a well manner. Any person or party comes to Sabro I

welcome them. And if they need any king of information about Sabro I will tell them and

guide them in a proper way, and if they want to visit any part or department of

organization I will call that department and they give a guide for their guidance.

I performed the above activities at Sabro technologies in a proper way with the help of

concerned authority, because their guidance is available for me throughout duties hours

and they always guide me in a proper way in performing my duties as internee in STPL.

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Chapter 06

SWOT ANALYSIS OF SABRO TECHNOLOGIES (Pvt) LTD

Following are the Strengths, Weakness, Opportunities and Threats of STPL which are

fully discussed below.

6.1 StrengthsSabro Technologies (Pvt) LTD posses following strengths in a competitive position in the

following areas and will do better than their competitors. Below are the main points of

STPL in which they are strong.

Strong brand image

Dealer Network is very Strong

Strong quality, sale and service

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Market leader in Commercial & Split type AC

Pakistan largest AC manufacturing company

Strong position in home appliances

Management is very strong

Authority of Distribution

Strong R & D department

Provide free services to the customers

6.1.1 Strong Bran Image

STPL created the strong brand image in their customer mind through high quality and

low price strategy. STPL customer always prefer to buy only Sabro home appliances such

as Split AC, Television and their commercial type AC when they want to buy. Sabro is

one of the most popular company of Pakistan and everyone knows their products what

they make for them and their brand name, that is the main reason that Sabro

manufactured AC selling rate are very high in the market compare to their competitors.

6.1.2 Sabro Strong Network Dealer

One of the plus point of STPL is that it has a strong network dealer in the market. There

are different dealer of Sabro. Their dealers are always trying to sell out the STPL

appliance to their customer because the dealer know about their high margin of profit in

the STPL product appliance. They get more money when they sell out more Sabro

product. Sabro Management also provides more incentives to their dealers than their

competitor do. Dealers of Sabro are very conscious about their product and they guide

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their customer in buying Sabro appliances and also tell them more quality of Sabro

product which they will gave as compare to other company product.

6.1.3 Strong Quality and their Sale and Service

STPL position is very strong that it provides the superior quality to the customers. This

makes a sense in the customer mind that the products of Sabro are better in quality from

other company products. Sabro Technologies also provide after sale service to their

customers which make the customer more delight. This is an other way of product

advertisement because when the customer is satisfied from a product then they tell about

it to other peoples to buy Sabro products. Which make free publicity of STPL products?

6.1.4 Market leader in Commercial type & Split AC

It is another strong point that Sabro is a market leader in Commercial and Split type AC.

Split and Commercial type AC of Sabro is more demanded by the customers than its

competitor’s air conditioners because it has more durability in operating systems and

cools the room and aria in few minutes. Sabro always strives to provide the innovative

features in AC. Sabro air conditioner is cheaper and has a higher quality than others AC.

That’s why customers always purchase Sabro Commercial and Split air conditioners.

6.1.5 Pakistan largest AC Manufacturing Company

Sabro is one of the largest Air conditioner manufacturing company. STPL always strives

to pursue the strategies adopted bye the competitors. As a consequence the price war

starts among the companies for that each and every company reduce their prices and tries

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to increase their product sales. STPL also making more efforts for the better quality and

improments than its competitor.

6.1.6 Strong Grip in Home Appliance

STPL is one of those companies which have strong grip in the home appliance such as

Split AC, Television, DVD Players etc which is a strong point for Sabro company.

STPL is penetrating market by introducing the new home appliance like Split AC and

always trying to get the maximum market shares in the home appliances.

6.1.7 Management is very Strong

Strong management is another plus point for Sabro that it has a Strong management. The

employees of Sabro are more competent and are fully skill and knowledge. They always

cooperate with their top management to achieve their goals which are assigned to him.

Employees of Sabro are well and fully aware about the company objectives and that’s

why they are fully committed to the company development.

6.1.8 Authority of Distribution

Top management of Sabro Technologies assigns power to their subordinates for

achieving the marketing objectives in a specified period of time. As we know that every

manger has an authority which they use to achieve their goals. They can easily handle the

customer complaints and try their best to satisfy them in good way. So this is a very

strong point of Sabro Technologies that there is the concept of decentralization.

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6.1.9 Strong R & D Department

Sabro Technologies has a very strong Research and Development Department which

continuously trying to develop new features in their products. Research and Development

Department spends huge amount of money for the development of their products.

Research and Development Department makes research for introducing new product and

asks the customer that what they want extra in their products.

For this they hire the highly qualified personal in the R&D department. This makes Sabro

more strong.

6.1.10 Provide Free Customer Service

STPL provides free customer services of one year to their customers. That is also one

reason that people buy Sabro products due to its free services and it becomes loyal

customer for STPL. STPL always provides help to their customer relating any problem

such as repairing AC and other items, and this company makes always the efforts to

satisfy their customers.

6.2 Weaknesses

Such like other companies Sabro Technologies also have some weakness in their business

operation. If STPL overcome this weakness then it can become a market leader in the

home appliance and Commercial AC. Sabro Technologies lose their competitive edge

due to following points.

Lack of Advertisement

System variations

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Lack of Product Range

Less Utilization of capacity

Financial Problems

6.2.1 Lack of Advertisement

One of the major weaknesses of Sabro Technologies is that it never makes advertisement

on TV or Print Media. Which create a big hurdle for it in selling their products and

customer does not know the changes which are made in the products by company from

time to time. Sabro Company is not in a position that it made advertising of their products

wide range because of its high cash requirement towards production side. Due to this

problem the company always makes some strong efforts to develop better relationship

with dealers.

6.2.2 System Variations

It is also the main weakness of STPL that there are rapidly a change in polices of selling

the products. That’s creates problems for the selling team how to sell the products to the

dealers because the top management requires the urgent amount of money. So selling

team sells the products sometimes on hard cash that will reduce the prices of products

that gives the benefits to the dealers and creates problems for the management.

6.2.3 Lack of Product Range

As STPL introduce more products for their customer but still these are less and there is

more need to develop new customer product times such like washing machines, vacuum

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cleaner and other items. Due to this lack of product range company cannot earn more

profit in the market because in the market there are more need of consumer product that’s

why customer say that if company invest more in these products then we can keep all

Sabro item and we don’t have to kept other companies products.

6.2.4 Less Utilization of Capacity

Company has not much finance that they cannot utilize all its resources on its full

capacity. It increases the cost of products per unit that decreases the profit margin of each

consumer item. Sometimes the company cannot allocate their resources according to the

company production department requirement that’s becomes the problem for the

complete utilization of company resource. For the company it is also the main point of

weakness.

6.2.5 Financial Problems

Sometimes STPL faces the financial problems the stocks of company are so much piled

up in the stores which creates problem of cash flow because when the stock are not sold

and production process are still continue 24 hours a day then the company faces such

problems. For that the companies aggressively research sources of cash and stress the

dealers to sell Sabro products to end consumers. Sometimes company sells their product

on credit bases to the dealers and gives them high margin of profit. That’s why company

is facing financial problems and cannot pay attention on alternative resources which help

in reducing company stocks. That is the customer demand and that’s why it is main

reason of company weakness.

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6.3 Opportunities

For Sabro Technologies there are a lot of opportunities available for the expansion of

there business. If the company realize that available opportunities then it will be more

fruitful and profitable for Sabro. And if the company cannot take advantage of these

available opportunities then it will lose its competitive position and high profit in the

market. And competitors will give him tough time to pursuing opportunities which are

adopted by them. Following are the available opportunities for Sabro Technologies.

Market Exploration in Pakistan.

Increase in Product Range.

Opportunity to Export their product.

Opportunity to increase their production capacity.

6.3.1 Market Exploration in Pakistan

STPL has the opportunity to explore over all market of Pakistan. And for that STPL

introduce its products in all the cities of Pakistan but still there are so many places which

have the capacity to absorb Sabro products. That places are the tribal areas of Pakistan

such as tribal area of KPK and northern areas of Punjab and KKP and central area of

SIND. If Sabro technologies introduces their products in there areas of Pakistan it can get

a large amount of profit and increase its market shares.

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6.3.2 Increase in Product Range

Main opportunity available for Sabro is to increase its product range which will be more

profitable for Sabro technologies. There are more needs to develop new consumer items

like Sabro Vacuum Cleaner, Sabro Washing Machines and such like other items. Due to

this lack of product range, Sabro Company cannot earn more profit because consumers

have high demand of these products. If STPL does not take this opportunity then it will

lose high margin of market share and profit. This will increase the efficiency of

employees and reduce fixed cost.

6.3.3 Opportunity to Export their Product

For Sabro company it is also a big opportunity to export their products to other countries

such as INDIA, IRAN and USA. This will not only reduce the on one market but will

also increase market shares and profits. Its will help the company to spread fixed cost on

all of its production which will reduce total cost and company will enjoy high profit.

6.3.4 Opportunity to increase their Production Line

Sabro Technologies have the opportunity to expend and increase their production level

which will increase employees efficiency and will also reduce total cost. If company

cannot allocate the resources according to the requirement of production department

which create a problem for complete utilization of resources. Company looks market

condition and after that it will produce products.

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6.4 Threats

In this competitive era Sabro Technologies face many threats as well, these threats are

both for present and futures situations. And for that company need to make its policies

and strategies according to these threats. Following are some of the threats which face to

STPL.

Strong Competition

Introducation of China’s Product in the market

Price War

Slow growth rate in Pakistan

Government Instability

Tax Department

World Trade Organization

Investors

6.4.1 Strong Competition

Competition for home appliances is very strong in the market. And every company want

to achieve 1st Position in the market for maximum shares. Different companies adopt

different strategies for the selling of their products. It increase the bargaining power of

the buyers and reduces the profit margin of each company, increase the bargaining power

of the buyer who will demand higher and good quality good and products at lower cost.

This is main threat for Sabro.

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6.4.2 China’s product

China’s made product is one of the threat for Pakistani companies and especially for

Sabro. Because these products are cheaper in price than Pakistani products so peoples

buy these products and their products demand increase and Pakistani made products

demand decreases. Quality of china products are not so good but the price is

comparatively low than other indigenous company that’s why peoples buy china’s

products. That’s why China products stress the indigenous companies to lower their

prices and quality but actually this will not profitable in long run.

6.4.3 Price War

As there is stiff competition in the home appliance market that will cause the price war.

So every company reduces their prices of products and increases their sales. It will not

only reduce the profit margin of the company but also reduce the quality of products. So

price war is the main threats for all the companies, which are operating in these products.

6.4.4 Instability of Government

Rapid changes governments also become a threats for the companies because whenever

new government comes they adopts new and their own policies for every industry. This

will lead to uncertainty for the investors who want to invest heavy amount in the new

projects and they resist investing. Which become a major threat for the company and will

decrease the company profitability? Due to this instability of politics many companies

will not invest heavy amount.

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6.4.5 Tax Department

Tax department is another major threat for this company that will restrain the business

expansion. There is more complicated tax procedure for the companies, which are

interested to increase the investment in their businesses. A tax department also asks the

company from where it receives the money and where this money will spend. Due to fear

of heavy taxes companies would not like to invest the heavy amount.

6.4.6 World Trade Organization

In 2005 World Trade Organization give permission to each and every company of home

making appliance to exports their products at paying fewer duties or duty free products.

Which increase pressure for every indigenous company to reduce their prices and

increase their quality? This will increase the competition among foreign and indigenous

companies. But most of our companies run under uncertain condition which decreases the

moral of each indigenous companies.

6.4.7 Investor’s

There are few big investors who imports Chinese product with their own brand name

which is also a very big threat for the companies and every company try to create some

attention for the investors to de motivate such investment.

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Chapter 07

FINDING AND SUGGESTIONS

Duration of my internship program is very limited and during which I can’t observe the

environment and culture of Sabro Technologies fully, but although I suggest them some

recommendation from my limited experience and knowledge. I consider that if Sabro

Technologies follow the following recommendation it will work in more efficient and

cost effective way.

I at Sabro observed that other than the basic salary, other compensation

packages are not good and are not enough to attract the potential employees

and retain them. Due to this the motivation level of employees decreases

which affects the production level of organization. And the level of production

will decrease.

To overcome this situation, Human Resource Department of Ad Creator

Advertising should try to make the company more attractive as possible for

the employees for this they offer incentives and compensation packages.

The main point which I note at Sabro is that there is an unequal distribution of

work. Some worker work more on a low reward. So some serious steps should

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be taken by the top management for this purpose to overcome this problem,

and allocate the work properly towards proper peoples.

Sabro used new technologies, but for the proper use of that technology there

are not competent people available to cope the changes and operate that

technology in proper way. For this purpose the employees should given the

opportunity to participate in the seminars and lectures and the training provide

will be more efficient.

One of the major weaknesses of Sabro Technologies is that it doesn’t make

advertisement on TV of their products. Which creates hurdle in the selling of

products and customer does not know the changes, which were made in the

products from time to time. So for this I gave suggestion to the company to

make advertisement of their product on TV and other Mass Media which will

make the company more efficient.

Sabro product range is very small so due to lack of products range company

cannot earn more profit because consumer have high demand of their

products. So I suggest that It is the main opportunity for Sabro Technologies if

they increase their products range it will be more profitable for the company.

Because there are more needs to develop new consumer type items like

Washing Machine, Vacuum Cleaner and other items.

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REFRENCES

Sabro Technologies (Pvt) LTD Profile

www.sabrotechnologies.com

Salary and Compensation Project on Sabro by Ahmareen Abbas & Sana Samad

Standard Organization Procedures documents of Sabro Technologies

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