TABLE OF CONTENT

Table of Contents
FAUJI FERTILIZERS COMPANY LIMITED ......................................................................................... 4 FAUJI FOUNDATION ........................................................................................................................ 5 HISTORY .......................................................................................................................................... 5 34 YEARS OF CONTINUED GROWTH ............................................................................................... 7 Vision .............................................................................................................................................. 9 ORGANIZATIONAL CULTURE ........................................................................................................ 10 Centralization/ Decentralization ................................................................................................... 10 Employees Relationship ................................................................................................................ 10 Types of plans and planning practice organization wide: .......................................................... 13 Growth Drivers: ......................................................................................................................... 13 Our Key Assets:.......................................................................................................................... 14 How we leverage our assets: .................................................................................................... 14 Corporate Objectives: ................................................................................................................... 14 OBJECTIVE 1 .............................................................................................................................. 15 Priority:...................................................................................................................................... 15 Status: ........................................................................................................................................ 15 Opportunities / threats: .............................................................................................................. 15 Strategy...................................................................................................................................... 15 Priority:...................................................................................................................................... 15 Status: ........................................................................................................................................ 15 Opportunities / threats: .............................................................................................................. 15 Strategy: .................................................................................................................................... 15 Priority:...................................................................................................................................... 15 Status: ........................................................................................................................................ 15 Opportunities / threats: .............................................................................................................. 15

OBJECTIVE 4........................................................................................................................... 16 OBJECTIVE 5........................................................................................................................... 16 OBJECTIVE 6........................................................................................................................... 16 Priority:...................................................................................................................................... 16 Status: ........................................................................................................................................ 16 Opportunities / threats: .............................................................................................................. 16 Strategy: .................................................................................................................................... 16 Priority:...................................................................................................................................... 16 Status: ........................................................................................................................................ 16 Strategy: .................................................................................................................................... 16 Priority: ...................................................................................................................................... 16 Status: ........................................................................................................................................ 16 Opportunities / threats: .............................................................................................................. 16 Chairman .............................................................................................................................. 19 Members ............................................................................................................................... 19 Fun Fare at FFC plant Goth Macchi ................................................................................ 24 Fun Fare at FFC plant Mirpur Mathelo ........................................................................... 24 Fun Fare at FFC plant Goth Macchi ................................................................................ 24

Definition ................................................................................................................................... 24 Morale and Productivity............................................................................................................ 25 Job opportunities ..................................................................................................................... 26 Pay structure: ............................................................................................................................ 27 Celebrating events: ................................................................................................................... 27 LEADERSHIP PRACTICES ............................................................................................................... 27 INTEGRATED MANAGEMENT SYSTEM: ..................................................................................... 27 QUALITY COUNCIL:............................................................................................................. 29 OUR VIEWS: ........................................................................................................................... 29 CODE OF ETHIC AND STANDARD CONDUCT: ..................................................................... 29 OUR VIEWS: ........................................................................................................................... 29

EMPLOYEES ENGAGEMENT: .............................................................................................. 30 OUR VIEWS: ........................................................................................................................... 30 PROCESS IMPROVEMENT: ................................................................................................. 31

RECOMMENDATIONS: .................................................................................................................. 32 CONCLUSION ................................................................................................................................. 33 REFERENCES: ................................................................................................................................. 33

FAUJI FERTILIZERS COMPANY LIMITED

As Pakistans economy is agriculture based therefore the fertilizer sector assumes a central role in the development of the country. A good quality fertilizer increases yield therefore increasing production of crops and earning foreign exchange for Pakistan through exports. FFC occupies a special niche in the industrial and agricultural development of the country with a successful track record of excellence business performance. The company moved from one high level of achievement to other establishing records year after year and is now ranked as a top tier player in the fertilizer industry with highest production capacity and market participation. Fauji Fertilizer Company Limited (FFC) is a leading fertilizer production group in Pakistan, with over 48% market share in the sector.

FFC Energy Limited (FFCEL), a separate wholly owned company, has been incorporated in November 2009, to develop a wind power project with an estimated investment of US$ 130

million. This project is being installed at Jhimpir, District Thatta, Sindh, with the capacity to produce 50 MW electricity for onward supply to the National Transmission and Dispatch Company (NTDC). Commercial production is scheduled for end 2011.

FAUJI FOUNDATION
Fauji foundation is one of the largest foundation in Pakistan. Some of the organizations owned by this group are as follows: Fauji fertilizer company Fauji Cereals Foundation Gas Foundation University Fauji Cement Industry Fauji Sugar Mills Fauji Fertizer Bin Qasim

HISTORY
With a vision to acquire self - sufficiency in fertilizer production in the country, FFC was incorporated in 1978 as a private limited company. This was a joint venture between Fauji Foundation (a leading charitable trust in Pakistan) and Haldor Topsoe A/S of Denmark. The initial share capital of the company was 813.9 Million Rupees. The present share capital of the company stands above Rs. 8.48 Billion. Additionally, FFC has more than Rs. 8.3 Billion as long term investments which include stakes in the subsidiaries FFBL, FFCEL and associate FCCL.FFC commenced commercial production of urea in 1982 with annual capacity of 570,000 metric tons.

Through De-Bottle Necking (DBN) program, the production capacity of the existing plant increased to 695,000 metric tons per year.

Production capacity was enhanced by establishing a second plant in 1993 with annual capacity of 635,000 metric tons of urea.

FFC participated as a major shareholder in a new DAP/Urea manufacturing complex with participation of major international/national institutions. The new company Fauji Fertilizer Bin Qasim Limited (formerly FFC-Jordan Fertilizer Company Limited) commenced commercial production with effect from January 01, 2000. The facility is designed with an annual capacity of 551,000 metric tons of urea and 445,500 metric tons of DAP, revamped to 670,000 metric tons of DAP.

In the year 2002, FFC acquired ex Pak Saudi Fertilizers Limited (PSFL) Urea Plant situated at Mirpur Mathelo, District Ghotki from National Fertilizer Corporation (NFC) through privatisation process of the Government of Pakistan. It has annual production capacity of 574,000 metric tons urea which has been revamped to 718,000 metric tons urea in 2009.

This acquisition at Rs. 8,151 million represented the largest industrial sector transactions in Pakistan at that time.

34 YEARS OF CONTINUED GROWTH

1978 Incorporation of Company

1982 Commissioning of Plant I, Goth Machhi with annual capacity of 570 thousand tonnes 1991 Listed on Karachi and Lahore Stock Exchange 1992 Through De-Bottle Necking (DBN) program, the production capacity of Plant I was increased to 695 thousand tonnes per year

1993 Listed with Islamabad Stock Exchange Commissioning of Plant II, Goth Machhi with annual capacity of 635 thousand tonnes of Urea Initial investment in Fauji Fertilizer Bin Qasim Limited, a DAP and Urea manufacturing concern which currently stands at Rs 4.75 billion representing 50.88% equity share 1997 With achievement of Quality Management System certification in Goth Machhi, FFC became the first fertilizer plant in Pakistan to achieve this distinction 2002 FFC acquired ex Pak Saudi Fertilizers Limited (PSFL) Urea Plant situated in Mirpur Mathelo (Plant III) with annual capacity of 574 thousand tonnes of urea which was the largest industrial sector transaction in Pakistan at that time. 2003 FFC obtained certification of Occupational Health & Safety Assessment Series, OHSAS-18001:1999 2004 Investment in Pakistan Maroc Phosphore, Morocco (PMP) S.A. of Rs 706 million, FFC has equity participation of 12.5% in PMP 2008 Investment of Rs 1.5 billion in Fauji Cement Company Limited, currently representing 6.79% equity participation 2010 Establishment of subsidiary Company FFC Energy Limited, Pakistans first wind power electricity generation project. 2011 SAP - ERP implemented in the Company, improving business processes by reducing time lags and duplication of work.

MISSION
_ FFC is a market focused process centered organization delivering successful performance

through a strong focus on quality. _ Our mission is to stand above the competition and provide our customers with premium quality fertilizer products in a safe, reliable, efficient and environmentally sound manner, deliver exceptional services and unparalleled customer support, produce predictable earnings for our shareholders, and provide a dynamic and challenging environment for our employees. Its main objective is to sustain its role as the leader in industrial and agricultural advancement in Pakistan by setting and achieving new and higher goals and taking initiatives. The company is committed to ensuring safe and conductive work environment, providing high quality products and allied services to its customers and profitable returns to its shareholders.

Vision
A vision without a plan is just a dream. A plan without a vision is just drudgery. But a vision with a plan can change the world
In a nation of increasing population, we believe there is substantial opportunity of growth for FFC in the years to come. FFCs vision is to play a leading role in the industrial and agricultural advancement of the Country pursuing new growth opportunities offering the convenience of multiple products, brands and channels within and beyond the territorial limits of Pakistan, to the

benefit of our customers and our shareholders, elevating our image as a socially responsible and ethical company that is watched and emulated as a model of success.

ORGANIZATIONAL CULTURE
The culture of the organization is very much differentiated with their competitor. The culture of the organization is too much dynamic that is encouraged to the individual to do hardworking & show the achievement. Following are the practices that make the culture of the organization dynamic.

Centralization/ Decentralization
The culture of the organization is centralized and also decentralized that everyone has followed the orders of the Top management and decentralized in the sense that some decision are taken into consideration and solved by the specific department head.

Employees Relationship
The culture has focused on the good relations among the employees. each and every person is working in the friendly environment and co-operate with each other.

OUR CORE VALUES

At FFC we seek uncompromising integrity through each individuals effort towards quality product for our customers, maximizing returns to the shareholders and sizable contribution to the national exchequer.

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Our business success is dependent on trusting relationships. Our reputation is founded on the integrity of the Companys personnel and our commitment to the principles of:

Honesty in communicating within the Company and with our business partners, suppliers and customers, while at the same time protecting the Companys confidential information and trade secrets.

Excellence in high-quality products and services to our customers.

Consistency in our word and deed.

Compassion in our relationships with our employees and the communities affected by our business.

Fairness to our fellow employees, stakeholders, business partners, customers and suppliers through adherence to all applicable laws, regulations and policies and a high standard of moral behavior.

Traditions
Fauji Fertilizer Company Limited is a premier fertilizer manufacturing and marketing company listed on all three stock exchanges of Pakistan. The Company produces and markets Sona Urea (Prilled). The Company also markets Sona Urea (Granular) Sona DAP produced by FFBL. FFC also markets imported DAP, imported SOP and imported Boron with the brand names of FFC DAP, FFC SOP and Sona Boron respectively. The Company has a 41 % Urea market share and one of the largest urea manufacturing company of Pakistan with total capacity of (Goth Machhi

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& Mirpur Mathelo Plants) 2,048 thousand tonnes per annum. The Company has two associated companies namely Fauji Fertilizer Bin Qasim Limited (FFBL) and Fauji Cement Company Limited (FCCL). The Company has one subsidiary i.e. FFC Energy Limited (FFCEL). Details of these companies are mentioned below:

Fauji Fertilizer Bin Qasim Limited is a fertilizer manufacturing company producing Granular Urea and Di-Ammonium Phosphate (DAP) fertilizers. The Company is a sole producer of DAP fertilizer with 45 % market share. FFBL has 11 % market share of Granular Urea. FFC carries out the marketing activities of the products produced by FFBL. The manufacturing plant is located at Eastern Zone of Bin Qasim, Karachi.

FFC energy limited is a subsidiary company established to run wind power project of 50 MW with future expansion to 250MW. The project is under construction and 50% of the work has been completed. The projects will be completed by October 2012.

Fauji Cement Company operates a cement plant at Jhang Bahtar, Tehsil Fateh Jang, District Attock in the province of Punjab. The Company has a strong and longstanding tradition of service, reliability, and quality. The cement plant of Fauji Cement is one of the most efficient and best maintained plants in the country and has an annual production capacity of 1.165 million tonnes of cement. This report covers only FFC operations and includes information on manufacturing plants, marketing and corporate offices of the Company. The information about subsidiaries and associated company is not included in the report.

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FFC is headquartered at Rawalpindi with marketing group office at Lahore and manufacturing plants at Goth Machhi, and Mirpur Mathelo. The marketing group office controls marketing offices which are located all over Pakistan. The Company is well positioned in fertilizer market and offers premium fertilizer products to its valuable customers. The Company has market presence in whole Pakistan with major emphasis in Sindh, Punjab and Khyber Pukhtoonkhwa provinces The total headcount of FFC was 2,295 at the end of the financial year 2011. The bifurcation of the total headcount includes executives & workers for the manufacturing units, marketing offices and head office. The Company has strong assets and financials comprising of fixed assets, investments and current assets. The net assets of the Company were Rs. 15,448 million at the end of financial year. The Companys total turnover for the year reached Rs 55,221 million, an all time record, 23% higher than the turnover of last year. FFCs urea market share was recorded at 41%. The Company production during the year was 2,396 thousand tons at 117% utilization of nameplate capacity of 2,048 thousand tons. The Company is strengthening its economic front being one of the important pillars of sustainable development including environmental, health and safety, social performance and governance.

Types of plans and planning practice organization wide:

Growth Drivers:
FFCs growth is primarily driven by expansion in sales revenue, powered by strong demand for our product and effective distribution network all over the Country. Efficiency enhancement is our long term goal. We continuously seek opportunities to improve efficiency of our business

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processes to optimise costs, utilising less to produce more. Our sales are largely cash based, which gives us the margin to effectively utilise available cash resources to fulfill Companys working capital requirements, and hence minimise external funding requirements resulting in reduced finance costs.

Our Key Assets:

Human capital is by far our most treasured asset, directly affecting performance of the Companys business processes, ensuring success every year. Among our most valuable assets is our brand name Sona, which is the soul behind our existence, growth and prosperity. We are continuously investing in our production facilities to enhance operational efficiency and fuel the key growth drivers. Our extensive distribution network, extends to all provinces of the Country, ensuring maximum market presence.

How we leverage our assets:

Our assets in turn are leveraged by our management excellence and our consumer centric approach. Our strategies are focused around consumer satisfaction and quality perfection. The pursuit of excellence in every sphere of operation is our aim which ensures continued success. Our farsighted management strategies are focused on development of our key assets which form the foundation for future growth.

Corporate Objectives:

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OBJECTIVE 1
Drive land productivity through balanced fertilizer application

OBJECTIVE 2
Maintain Industry leadership

OBJECTIVE 3
Expand Sales

Strategy:
Educate farmers regarding fertilizer usage through Farm Advisory Centers all over the Country.

Strategy:
Keep ourselves abreast of latest technological advancements and upgrade our production facilities to enhance efficiency.

Strategy:
Sales expansion through geographical diversification and improved farmer awareness.

Priority:
High

Priority:
High

Priority:
High

Status:
Ongoing process - Plans for the year achieved

Status:
Ongoing process - Targets for the year achieved

Status:
Annual targets achieved

Opportunities / threats:
There are still untapped opportunities to expand our distribution network within and outside the Country. The prevailing shortage of gas is however a cause for concern and would impede progress in the long run if not addressed by the Government.

Opportunities / threats:
Per acre production in our Country is lower than recorded in developed parts of the world. We are committed to change this through our continuous efforts to maximize the Countrys agricultural yield.

Opportunities / threats:
Our policy of upgrading our plants with state of the art equipment ensures that we keep pace with advancements and avoid redundancy. However, with the passage of time, upgradation and maintenance may result in high costs.

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OBJECTIVE 4
Create new businesses to augment profitability for sustained economic growth

OBJECTIVE 5
Maintain operational efficiency to achieve synergies.

OBJECTIVE 6
Economize on costs by eliminating redundancies

Strategy:
Continuously seek avenues to diversify within and outside the Fertilizer Industry.

Strategy:
Keeping our resource utilization at an optimum level through strict governance policies.

Strategy: Keep our business

processes in perfect harmony, reducing time and money losses.

Priority: High Status:

An evolving process, plans for 2012 achieved

Priority:
High

Priority: High Status:

State of the art ERP system implemented

Status:
Ongoing process - Targets for the year achieved

Opportunities / threats:
Foreign investment in Pakistan is low, creating a gap for local investors to tap unexplored potential in emerging markets. Current pattern of growth might not be sustainable considering the shortage of gas. Diversification in unexplored emerging markets could minimize this risk.

Opportunities / threats:
There is always room for improvement in efficiency. With focused management strategies, operational efficiencies can be enhanced.

Opportunities / threats:
The time for flow of information can be further reduced through reorganizing business processes in line with our newly implemented ERP system.

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Decision Making Policies

In FFC decision making done by TEAM WORK. Leaders consult with individual or group subordinates, obtaining their ideas and opinion and then make the decision.

While doing decision making FFC identifying and diagnosing the problems or facts or both, generalizing the alternatives, choosing best alternatives and after implication evaluation the results.

Evaluating results

Identify and diagnosin g problem

Generating alternative solutions

Evaluating Alternative

Choosing best alternative

Implication Decision

FFC decision making sometimes very lightly affected by organization politics, emotions and personal preferences but FFC management quickly overcome on it due to good controlling.

In FFC, There are four essential styles of Decision Making:

Directive
The group leader solves the problem, using the information he possesses. He/she does not consult with anyone else nor seek information in any form. This style assumes that the leader has sufficient information to examine all the relevant options and make an effective decision, but that is rarely the case.

Analytical

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When the leader does not possess sufficient information to make an effective decision, they will need to obtain information or skill from others. They may not tell them what the problem is; normally, they simply asks for information. The leader then evaluates the information and makes the decision.

Conceptual
The leader explains the situation to the group or individuals whom he provides with relevant information, and together they generate and evaluate many possible solutions. This style tends to be have a long-term perspective and, as a result, will be more creative and expansive in their approach entailing a higher level of risk for the long-term benefict of the organization.

Behavioral
The leader explains the situation to the group or individuals and provides the relevant information. Together they attempt to reconcile differences and negotiate a solution that is acceptable to all parties. The leader may consult with others before the meeting in order to prepare his case and generate alternative decisions that are acceptable to them.

Corporate Social Responsibility

For Fauji Fertilizer Company Limited, social responsibility means facilitating communities and empowering its people. Sustainability shall always remain quintessential for the performance of CSR. Historically, FFC has always been socially a responsible corporate entity. The Company

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started its CSR per se as early as in 1982 by introducing Agri-Services thus helping in poverty alleviation of common farmer and assisting them in sustained empowerment. Gradually FFC started interventions in most of the defined sectors and has developed a history of about 30 years of contributions to the society. FFC, further plans to bring sustainability in its interventions and desires to achieve international standards by aligning CSR with our business objectives. FFC is also committed to improve quality and quantum of its interventions by maximizing on the available resources.

Since FFC has become member of covenants like UNGC, the CSR has to be aligned with international guidelines. It is necessary to standardize the interventions and monitor the quality of interventions at a central level. We need to stay committed to its principles. Keeping the vision of responsible corporate entity in mind, FFC has moved in this direction. FFC has made quality as its core value when it comes to CSR intervention at any level, and in future this will remain as the prime objective.

FFC has also recently constituted a CSR Committee for a meaningful progress in social responsibility. The committee is composed of following members:-

Chairman
Lt Gen Naeem Khalid Lodhi, HI (M) (Retd) - Chief Executive & Managing Director

Members
Mr. Syed Iqtidar Saeed - GGM - M & T

Mr. Syed Shahid Hussain - CFO

Mr. Muhammad Munir Malik - GM - MKT

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Brig Sher Shah (Retd) - Company Secretary

Brig Sajid Nisar Khan (Retd) - CCO

Brig Munawar Hayat Khan Niazi (Retd) - SM-CSR & CC (Member & Secretary)

CSR Objectives

Companys obligations of paying back to the society from which it derives its economic gains.

Address stakeholder concerns and invest in the communities in the vicinity of our fertilizer plants.

Empower the small and medium farmers all over Pakistan Incorporating UNGC Principles in our governance. Contribute in achievement of UN Millennium Development Goals.

Current CSR Interventions

As most of the sustainability conscious organizations around the world do, FFC is playing its part actively in this direction. Being the brand leader in fertilizer sector with the biggest market share and counted among one of the leading corporate entity in Pakistan, FFC understands its obligation in nation building and well being of deprived communities around the plant sites. Under the charter of FFC CSR interventions, following sectors have been made part of the program

Education Health Care

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Environment Poverty Alleviation Sports Annual Fun Fares

Education
FFC has put its emphasis on education at grass roots level. In the past few years FFC has taken many initiatives in order to improve quality and accessibility to education around the plant sites as follows:

Sona Public School Sona Computer Institute Scholarship Program Adopted and Assisted Schools in Goth Macchi and Mirpur Mathelo

Health Care
Availability of medical facilities is essential for a productive society.FFC has embarked on a mission of upgrading and building new modern facilities for the natives living in Rahim Yar Khan and Ghotki districts under its CSR intervention in the field of health. Some of these interventions are:

Sona Welfare Hospital Hazrat Bilal Trust Hospital Coronary Care Unit

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Free Medical Camps

Environment
We do not inherit the earth from our ancestors; we borrow it from our children (American Proverb) FFC has over the years strived to adopt best security and precautionary measures in order to safeguard environment and lives of its working staff. Following are the initiatives undertaken by FFC in this direction

Recycling Green Planet Renewable Energy

Poverty Alleviation
FFC CSR has undertaken concrete measures for poverty alleviation in Pakistan. Some of these are as follows:

Technical Training Centre Sona Vocational Centre Agri Service FFC Contribution to Agriculture Research Globally

Sports

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FFC has always been encouraging healthy activities and continues to support sports events in the areas of Rahim Yar Khan and Ghotki as well as on national level. Some of the sports events sponsored by FFC are :

All Punjab Sona Cup Girls Handball Championship National Tae Kwondo Championship 3rd Jashan-e-Baharan Handball Mela All Pakistan Football Tournament Sona Cup Kabbadi Tournament Jashan-e-Pakistan Volley Ball Tournament

2nd Twenty 20 Deaf Cricket National Champsionship 3rd M. Shamim Memorial Football Tournament 2nd Summer Season Dist. Football Tournament Sponsorship for 15th Tour De Cycle Race

Quaid e Azam Football Tournament District Hockey Championship-2009 Hockey Coaching Camp at Sadikabad Interschool & College Handball 9th Sona Golf Championship League Football Championship 3rd Anti Narcotics District Hand Ball Mela Jashan-e-Aazadi District Throw Ball Tournament

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FFC also sponsors numerous district and national level events and has assumed the role of patron in this field. This contribution has also helped in encouraging and developing new talent in Pakistan.

Annual Fun Fare

In its effort of providing relief to the maximum people, FFC organizes annual Fun Fares at both its plant sites in Goth Macchi and Mirpur Mathelo. The event not only provides quality time to the surrounding localities, but the revenue generated from this activity is used on different social work carried out by FFC under its CSR program. A brief preview of this activity is as under Fun Fare at FFC plant Goth Macchi Fun Fare at FFC plant Mirpur Mathelo Fun Fare at FFC plant Goth Macchi

MOTIVATION TECHNIQUES
Definition
The term motive implies for action to satisfy a need. Motivation can be defined as a willingness to expand energy to achieve a goal or a reward. The management styles adopted by the FFC affect greatly, and employees are motivated in order to enhance their performance and achieve their derived goals. This is because FFC focused on the motivation of employees to do work and for this purpose FFC give them appreciations in the form of: Incentives

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Bonuses

Just like it, FFC creates a community for employees by providing them medical facility, residential facility, fair well and annual dinner. The company has built model Township for its employees at this remote location, which consists of residential accommodation along with allied facilities. In caring for the community in health, education, environment and sports Fauji Fertilizer Company Limited follows its key objective. To use all skills and techniques in building the image of the company by strictly adhering to the company Core Values, that makes its employees to contribute towards society in a way and enhance its image as a leading Fertilizer Business company in Pakistan. By providing the employees with motivation actually enhances their productivity and morale which results in positive.

Morale and Productivity

The employees of the FFC possess high morale, and thus exhibit high productivity. The employees are happy and are productive workers. Job attitudes and morale are quite positive for two reasons. Firstly, employees gain social satisfaction from interactions at the work place. Working conditions and supervision good, secondly high morale result from high motivation to supervision good, secondly high morale result from high motivation to produce. In other words, we can say, management should put its eggs in the basket that creates a high-motivated work force.

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Job opportunities
Job design for motivation is another personnel approach that has been increasingly emphasized in recent years. Job contents, methods, and relationships are structured not only to satisfy technological and organizational requirements but also to accommodate human needs for meaningful and self-fulfilling works. Jobs are being designed to fit the people who hold them in the hope that greater employee motivation (which is essential to higher productivity) will result.

TRAINING:
Two schools, FFC grammar school and FFC Model School are operating in parallel in the FFC Township, offering education up to the higher secondary level. Imparting computer literacy to children is one of the main elements of FFC schools, modern education. We operate two separate Management and Staff clubs, offering sports, and recreational as well as social facilities. This is the best way to keep the employees or members motivated. The clubs are equipped with basic facilities like swimming pools, Tennis/squash courts, Health gym and much more. A lush green golf course is a panoramic element of FFC sports facilities and it has promoted many good golfers in the community. Motivating the employees not only by providing free but also a friendly environment results in positive improvement and the employees with great passion take the organization to a new and broader level. As we can say, good training is an art if not a science and should be entrusted only to those within an organization who have an aptitude for it or who have received special training in the instruction of others. Thus, FFC emphasizes both cases i.e. to challenge the employees so that they will continue to be interested in FFC and will realize the need for continued training as their responsibilities become greater.

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Pay structure:
FFC has leaded the market pay strategy that is that they have the pay more than the 5-10% which has developed the external motivation in the employees.

Celebrating events:
Many sport events like Annual Sports, Married vs. Bachelors and sports gala etc, are held from time to time, imparting healthy environment to the residents.

LEADERSHIP PRACTICES
INTEGRATED MANAGEMENT SYSTEM:
FFCL uses the Integrated Management System for the purpose of quality management. Integrated Management Systems International Standards like ISO 9001, ISO 14001 and OHSAS 18001 have the common purpose of assisting organizations for risk management, improved product quality, customer satisfaction and continual improvement. These standards provide a foundation for organizations to achieve business excellence. Quality in all areas has been a hallmark of the FFCLright from the beginning and their product "SONA UREA" has already established its prestigious place in the market. One major landmark for Fauji Fertilizer Company over the years is Management Systems Certifications for International Standards (Quality, Occupational Health & Safety and Environment) for its plant sites at Goth Machhi and Mirpur Mathelo.

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To bring Management Systems (Q, OH&S and E) in line with the internationally recognized Standards, FFCL achieved International Standards certifications for ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007. Quality Management System certification at FFCL plant in Goth Machhi was first achieved in November 1997. This was an honour for FFCL because it became the 1st Fertilizer Plant in Pakistan to achieve this certification. Good operating practices established by FFCL are consolidated in its Integrated Management Systems (Q, OH&S and E) and aligned with the requirements of Quality, Occupational Health & Safety and Environmental Management System International Standards. The implementation of these standards is the most important corporate strategy of FFCL

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 QUALITY COUNCIL:
This is also where the Quality Council comes in. Its purpose is to watch the overall quality of the organization keep a close eye on every aspect of the organization through a properly formulated quality policy. It consists of the senior managers and the directors of the organization. They ensure that the company follows the guidelines and does not deviate from its quality principles.

OUR VIEWS:
In our view every company has to have an effective quality council so as to have its quality policy implemented. Therefore FFC has constituted a quality council consisting of the senior most members of the organizations hierarchy. This means that the top management will ensure the enforcement of the quality policy which will be beneficial for the organization.

CODE OF ETHIC AND STANDARD CONDUCT:

It is the policy of FFC to follow the highest business ethics and standards of conduct. All the employees are obligated to act responsibly i.e. to be honest, trustworthy, conscientious and dedicated to the highest standards of ethical business practice. The companys reputation depends on the conduct of its employees therefore each employee must endeavour to act according to the highest ethical standards and abide by the rules and regulations.FFC enforces its Code of Business Ethics and Standards of Conduct at all levels fairly and without any prejudice or bias.

OUR VIEWS:
In our view the company has developed an exemplary Code of Ethics. FFC has been following this code of ethics as well as these standards of conduct which is proved by the various quality

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achievement awards that they have won over the years. This is testament to good management skills and an excellent grasp of Total Quality Management.

EMPLOYEES ENGAGEMENT:
FFC trains its managers to handle customer complaints and also to motivate employees. This is done via business courses, marketing modules and leadership seminars. Employee morale is also improved by various other methods. FFC encourages innovation from its workers and wants them to think outside the box. That is why they are rewarded for their creativity. This recognition and reward system positively affects employee performance and motivates the thus increasing the organizations productivity and contributing to an overall happy environment.the reward and recognition are given for the performance of an employee during a quarter i.e. 3 months. Another method that improves employee morale and keeps them happy is taking their input in the decision making process. Every major decision that the organization makes is taken after consultation with its employees. This gives the employees a sense of ownership as well as responsibility which makes them feel like a pivotal part of the organization. This not only improves morale, it also boosts productivity leading the organization to post higher revenues and therefore higher profits. Most importantly, FFC believes in open communication among its employees and between the top management and the lower level employees. The employees know everything that goes on in the company. This prevents grapevine and gossip from developing which in turn creates a stable environment in the organization.

OUR VIEWS:
TQM gives us eight basic concepts to achieve a motivated workforce and FFC employs at least five of those concepts i.e. establish a positive attitude, share the goals, develop interesting work, communicate effectively

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and celebrate success. With the implementation of these concepts, FFC has achieved a motivated workforce which works for the betterment of the company without being constantly prompted by the supervisors.

PROCESS IMPROVEMENT:
FFC seeks uncompromising integrity through each individuals effort towards quality product for their customers.. FFC also strives to achieve consistency in its products i.e. not only achieving high quality but also maintaining it. This is a difficult task but FFC tries its best to consistently achieve the high standard that it has set for itself. Another component of their quality policy is fairness to employees, stakeholders, partners, suppliers and customers through adherence to merit and the applicable laws. As an organization FFC is always improving so as to remain up to date with the ever changing external and internal environment. Training programs and performance evaluation systems are part of this continuous improvement process. Training is given to employees regarding the use of machines, handling of customer complaints and dealing with suppliers. This is done so as to ensure the highest standards of quality and to maintain the prestige of FFC.

OUR VIEWS:
Continuous Process Improvement is the cornerstone of Total Quality Management. It means that the organization is constantly trying to improve and increase its productivitywhile keeping its employees happy. The customers are given the best possible products and better production facilities and techniques are developed. FFC also follows continuous process improvement and is always looking to improve its production process by bringing innovation in the various techniques employed in the organization.

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RECOMMENDATIONS:
We recommend that FFC should continue to follow these quality principles. These principles have served it well. They have made FFC the company that it is today. It is recommended that FFC should use its position as a market leader in the fertilizer sector and expand its operations in other countries as well. Neighbouring countries like Afghanistan and Iran are ideal for this type of expansion. FFC is also advised to maintain its high quality because in a situation like this it is very easy for a company to get complacent and start neglecting the quality of its products. The company is also advised to start working hard because Engro is gaining market share quickly and if FFC does not do something about it then very soon FFC will have to relinquish its status as the market leader.

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CONCLUSION:
Fauji Fertilizer Company Limited is a chemical fertilizer company. It is the largest fertilizer company in Pakistan. We looked at the quality practices of Fauji Fertilizer Company Limited. FFC employs the best quality practices at its production plants as well as in the entire organization. Its production plants are located in Rahimyar Khan and Ghotki while its head office is in Rawalpindi. Overall FFC is in a strong position both financially as well as in terms of quality practices. They just need to continue these practices so that they not only retain their position as the market leaders but build upon it and further expand their market share.

REFERENCES:
Data Sources: 1. Introduction to FFC.http://www.ffc.com.pk/

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2. Integrated Management Systems.http://www.ffc.com.pk/ims.aspx 3. Vision and Mission..http://www.ffc.com.pk/vision-statement.aspx

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