Course: Human Resource Management

(8502)
Semester:
Level:
ASSIGNMENT No. 2

SUBMITTED BY

ROLL #
SUBMITTED TO

ALLAMA IQBAL OPEN UNIVERSITY

 Acknowledgements
In the name of Allah, the Beneficent, the Merciful. First of all, we are very thanking full to Allah
who provide us knowledge, energy and skills to avail opportunities and increase our knowledge
and experience by completing this Project. For the successful completion of project, we are
thankful to organization's staff, who given us in-depth knowledge of subject and equipped us
with current market trends. We were not able to accomplish this task without the help of class
teacher. We are thankful to our parents how gave us opportunity to study and provide a better
living standard.
Topic

Introduction

Nishat Mills Limited

Executive Summary
Nishat has grown from a cotton export house into the premier business group of Pakistan

with 5 listed companies, concentrating on 4 core businesses; Textiles, Cement, Banking

and Power Generation. Today, Nishat is considered to be at par with multinationals

operating locally in terms of its quality products and management skills. The difference

between the success & failure is doing things right and doing things nearly right, & NML

has always tried for success & that is why it is known to be one of the leading

organizations in Pakistan. Irrespective of all these positive points of Nishat Mills Limited, I

have noticed a few areas where the improvement can really increase the efficiency of

NML.

Vision
To transform the company into a modern and dynamic yarn, cloth and processed cloth

and finished product manufacturing company with highly professionals and fully equipped

to playa meaningful role on sustain able basis in the economy of Pakistan. transform the

company into a modern and dynamic power generating company with highly

professionals and fully equipped to playa meaningful role on sustainable basis in the

economy of Pakistan.

Mission
Provide quality products to customers and explore new markets to promote/expand sales

of the company through good governance and foster a sound and dynamic team, so as to
achieve optimum prices of products of the company for sustainable and equitable growth

and prosperity of the company.

Quality Policy
We work together as a team for implementation and continual improvement of total quality

system in order to achieve satisfaction of our internal and external customers.

The Textile Industry:

Over the years, Pakistan is said to be the single crop economy i.e.

cotton and textile that claims the lion's share in terms of the contribution in the national

economy of Pakistan. Despite efforts to bring in diversification in country's overall

economic get-up the textile sector continues to be the most important segment of the

national economy. Its share in the economy, in terms of GDP, exports, employment,

foreign exchange earnings, investment and revenue generation altogether placed the

textile industry as the single largest determinant of the economic growth of the

country. Despite harsh and hard international economic conditions, Pakistan's textile

industry has weathered the storm by coming out of the international crisis in a very

positive manner. During the year exports were controlled from falling and significant

investment was made in value-added expansion and in Balancing-Modernization

Replacement (BMR).Besides fall out of the events of September 11, the implementation

of WTO's agreement, various bilateral agreements have been signed and implemented.

As a result global scenario has changed. Government and the corporate textile sector

adjusted their policies to achieve maximum benefits of free trade. So, local structure of

the corporate culture, investment pattern and fiscal and monetary policies were

significantly changed.

IMPORTS textile machinery

Import of textile machinery and equipment has picked up since 1997-98 when a bumper

cotton crop was harvested and the Textile Industry reaped massive profits due to lower
input cost. In the last five years more than Rs9 billion have been invested for the import of

spinning machinery. Nishat is one of the major customers in terms of importing Textile

Machinery from almost all developed countries. It is expected that an additional Rs 10

billion would be required for Balancing, Modernization and Replacement (BMR) in the

spinning sector during the next three years for producing superior quality yarn besides

several units are in various stages of installation in Karachi also. These facilities would

improve value-addition in fabrics, besides increasing the volume of fabrics and quality

garments exports the country. Textile is the only sector where investment has been

substantial and regular during past three years. The most encouraging factor of this

investment is diversity. The entrepreneurs, who earlier concentrated on Spinning and

Weaving, have now established compact units adding state-of-the-art finishing units and

knitting machines to add value to their products. The latest addition to this is the setting

up of denim cloth producing units. At present, the export competitiveness of the textile

industry can be improved by aggressive marketing techniques and quality improvements

which have to be taken care of micro-level that is each textile unit should make its own

independent efforts to sell its products in different international markets. All the individual

textile units should implement the ISO 9001 program for quality standard and ISO 14000

for environmental standards to counter the threat of globalization. The average unit price

of Pakistan's textile quota exports dropped considerably i.e. 30 per cent in case of US,

9.6 per cent for the EU and 16 per cent in case of Turkey. The only increase 0.21 per cent

was recorded in average unit price of exports to EU. The WTO agreement provides for

making textile trade completely free from 2005.The textile export figures for the first ten

months of the current year released by the Export Promotion Bureau revealed that the

textile quota exports to the US improved by 24 per cent while the increase in exports to

EU countries at the end of October 2002 registered an increase of 16.6 per cent in terms

of value and 13 per cent in terms of quantity.

Major competitors
Nishat competitors are

Crescent

Chenab

Arzoo

Alkarms

SWOT Analysis
Strengths:
ISO 9001-2000:

Strong Security System

High quality product

Latest mechanized machinery.

Tremendous market positioning

Highly qualified and skilled management

Highly Motivated Workforce

Adequate financial resources

Competitive advantage

Equipped with MIS System

Own power generation plant

Weaknesses:
High cost of production

Centralized decision making

Weak image in the international market

Small international market share

Less promotional activities

Lack of benefits and rewards for the employees

Opportunity:
Organization can expand product lines

Organization Can capture new market segments around the world

Organization Can reduce the cost by proper utilization of resources

Organization Can hire more well-educated and experienced person

Threats:
New Entry of competitors

Buyer needs demands changes

Political instability

Changed of government policies

Globally Economic instability

Detail of SWOT Analysis

Strengths:
ISO 9001-2000:

Nishat textile is certified under ISO 9001-2000 and so it meets the requirement of

international standard and has a value in the mind of concern people.

Strong Security System

Nishat textile limited has a greater security system. There are different hidden security

cameras which capture the all moments.

OKTEX 100:
Nishat is also Oktex 100 certified its mean that Nishat is satisfied to not using hazard

chemical using.

High quality product

Nishat textile limited using advance technology like they have modern machinery by

which the quality of product produced is very high.

Latest mechanized machinery.
They are using modern looms which they have purchased from Japan and France. And

by using that latest machinery the productivity of the employees are very high.

Tremendous market positioning

Nishat textile is one of the pioneer textiles in the Pakistan so it got the position in the mind

of its customer. And being an old textile company people are loyal with it. Nishat has a

better position in the mind of its customers.

Highly qualified and skilled management

The management of Nishat is skilled they have hired the foreign graduate people in their

management and also experienced people from all over the country.

Highly Motivated Workforce

They are providing better pay to their employees and also bonus to them which motivate

the workforce and they are doing well at work setting.

Adequate financial resources

The owner of the Nishat is one of the richest persons of the Pakistan and they have more

plant and investment in other industries like cement, Bank, They have adequate financial

resources to meet their requirements.

Competitive advantage
Because it is an old textile and it has still keep its position in the textile market on all

others competitors in the nationwide which is its competitive advantage.

Weaknesses:
High cost of production
The production cost is high because of not properly utilization of its resources.

Centralized decision making

The decisions are made by the upper management which is weakness of the Nishat
because they have no proper idea about the situation and their decision can be not fruitful

for the company.

Weak image in the international market Because of the other textile specialized

countries like China, Bangladesh etc the international image in the textile sector is very

weak. Those countries providing cheap product to the market then Pakistan's textile

industries.

Small international market share

Although Nishat has very strong in the national wide but it has small market share in the

global textile industry due to the sound competitors like china, and Bangladesh etc

Less promotional activities

The advertising and promotional cost of the Nishat textile is very low it can take

advantage for more turnouts.

Lack of benefits and rewards for the employees

Some facilities that other providing to their employees like Transport and medical fee etc

Nishat not providing to their employees because of which the productivity of the

employees decrease.

Opportunity:
Organization Can expand product lines
Currently the Nishat not dealing in knitwear they can expand their product line by

producing knitwear. They have plants and the extra cost for the production will be low for

Nishat. And they also have better market repute.

Organization Can reduce the cost by proper utilization of resources

If the cost of different matters which is not utilizing properly is controlled by the Nishat

management they can produce more in a few costs. It has to develop a further systematic

process for controlling and managing resources.

Organization Can hire more well-educated and experienced person
They can take advantages by hiring more skilled people and they should hire young, fresh

and energetic staff for their betterment.

Threats:
Buyer needs demands changes
Because of the research and development the design and the product of Nishat is just

satisfactory as compare to competitors in the globally and they are not fulfilling the

demand of customer.

Political instability
Political instability effects the Nishat because of the quota system the company can be

restrict by the government to export. Changed of government policies Government

policies are changing day to day so it is a threat for the Nishat to survive in such a

changeable situation ..

Conclusion
Nishat Mills Limited is one of the leading groups in Pakistan. The system, the

management style, the policies & decentralized decision making environment is really

remarkable. This report is basically an attempt to identify the areas which need to be

improved. in this era of technology, the "Information" is the key to success in the business.

This means that the successful businessman will be who will have the right information at

the right time. This comment leads to the conclusion that the Information Sharing Process

should really be improved. overall analysis is indicating that the company's progress has

mainly attained through dedication of employees. The effectiveness of its management,

their willingness to take advantage of opportunities and face challenges of changing

economic picture, this all contributes to the very much improved and sound position of

company.

Recommendations for Improvements are:

At present facility of bonus is given only to production staff but such incentives should

also be given to Head office Staff. They provide transportation facility to only female

employees I think male should also be provided with conveyance convenience. This will

create the easiness for workers and reduce the wastage of time. There is also a problem

of work overload for the employees and it should be control properly so that the

employees are motivated.

Reference-Finance department of Nishat Mills Limited