Final Project

Of Principles of Management on Structure, Culture, Strategic Management, and Corporate

Social Responsibility of an Organization.

Pakistan Institute of Development Economics Islamabad

Course Instructor : Mr. Hassan Rasool

Group Members: M. Usman Khalid (Group Leader)

Hameed Ullah Khan

Naila Ashraf

Muhammad Umar

Muneeba Hassan

Shahbaz Ellahi Awan

Submission date: 19/01/2009

Acknowledgement

Interviewees:

Table of Contents

Brief Introduction of Kohinoor Textile Mills Ltd. Introduction

History

Mission Statement

Structure

Culture

Strategic Management

Corporate Social Responsibilities

Financial Review

Conclusion and Suggestions

Brief Introduction of Kohinoor Textile Mills Ltd. Pakistan

Kohinoor textile Mills Ltd is part of Kohinoor Maple Leaf Group, which was born from the trifurcation of the Saigol group of companies and is a reputable and leading manufacturer of textiles and cement. KMLG comprises of Kohinoor Textile Mills limited (KTML) and Maple Leaf Cement factory limited (MLCF). Both companies are incorporated in Pakistan and are listed on three stock exchanges of the country.

KTML was established in 1953 at Rawalpindi and is one of the oldest companies of Pakistan with over 50 years experience in textile manufacturing. It was initially set up as a spinning and weaving project with 25,000 spindles and 600 looms. However, after decades of aggressive expansion and modernization KTML has emerged into a fully vertically integrated home textiles company with state of the art capabilities for spinning, weaving, dyeing, printing and stitching. The company has a diverse customer base with sales in both the local and export markets. The main international markets include Asia, Europe, USA and Australia.

Current Capacity

Kohinoor Textiles comprises of two spinning divisions located at Rawalpindi (KTML) and Gujjar Khan (KGM). There are a total of nine units with 151,000 spindles capable of spinning a complete range of coarse and fine count yarn from natural and manmade fibers. In particular, Kohinoor specializes in fine count yarn for high thread count home textile products. The total production of yarn is 28,800,000 Lbs per annum. Five units with 85,500 spindles are at Rawalpindi and four units with 65,500 spindles are at KGM.

The dyeing and printing capacity is 48 million meters per annum and the capacity for pre-treatment and bleaching is 6 million meters. The maximum width capacity for bleaching is 3.4 meters and for dyeing and printing is 3.2 meters.

OBJECTIVES OF THE COMPANY

1. To carry on the business of , cotton spinners, and doublers, linen and cloth manufacturers, jute, flax, hemp, cotton and wool merchants, dyers and manufacturers of bleaching and dyeing materials in Pakistan and all over the world.

2. Throughout Pakistan and throughout the world, to purchase , weave and otherwise manufacture, buy and sell and deal in all kinds of cloth and other goods and fabrics, whether textile netted or looped.

3. To carry on the business of drapers, furnishers and dealers in waterproof materials and fabrics, silk weavers, cotton spinners, cotton ginners, cloth manufacturers, furriers,

haberdashers, hosiers, Pauline, American cloth, floor cloth and all kinds of imitation leathers and rubbers.

4. To carry on all or any of the businesses of silk mercers, s manufacturers, importers and wholesale and retail dealers of and in textile fabrics of all kinds.

5. To carry on the business of mechanical engineers and manufacturers of machinery and implements of all kinds .

6. To lease, let out on hire, mortgage, sell or otherwise dispose of the whole of any part of the undertaking of the Company, - or any lands, business, property rights or interest therein.

MISSION STATEMENT

Kohinoor Industries has always adhered to high ethical standards and strived to be the industry’s preeminent manufacturer. The company’s Mission Statement encompasses four parts: Vision, Mission, Values, and Principles.

Vision

To be achieved through our Mission, Kohinoor Industries’ Vision is "to be a world-class company as defined by the customers we serve."

The Kohinoor Textile Mills Limited stated vision is toachieve and then remain as the most progressive and profitableCompany in Pakistan in terms of industry standards and stakeholders interest.

Mission

"We will exceed our customers’ expectations in quality, service, and value; continually increase shareholder value; and provide growth opportunities for our people." The Mission is supported by our Values and principles:

Values

"Honesty, integrity, and hard work."

The company’s success, as well as the success of individual employees, can be traced to embracing and practicing these values. Flowing from the values of honesty, integrity, and hard work are a set of principles that we believe in and use to govern our behavior as Kohinoor Industries employees.

Principles

"People, relationships, customer, citizenship, innovation, and results."

People

Kohinoor’s philosophy is to attract, develop, and retain the best people. We focus on growing and developing these people through continued education, training, and work experience.

Relationships

We strive to establish and maintain honest relationships with all stakeholders in the company. This is to include employees, shareholders, customers, suppliers, and the communities in which we live.

Customer

- We recognize that our customers and our ability to exceed their expectations are critical to our total success

Citizenship

In the communities in which we live and the industry in which we work, we will actively strive to contribute to a better environment for everyone.

Innovation

In an ever-changing marketplace, new products, services, and technologies are the lifeblood of our business.

Our corporate mission:

Put the customer first always.

Be flexible to the customer’s needs. Adhere to the highest quality standards.

Think innovatively but make informed business decisions.

Deliver results

Quality Certifications:

SA 8000:2001

Confidence in Textile from BTTG Manchester(According to Oeke-Tex Standard 100)

Cerficate of Approval ISO 9001:2000 En ISO 9001: 2000

BS En ISO 9001:2000HEMA Certificate

What is an Organizational Structure?

An organizational structure is a mostly hierarchical concept of subordination of entities that collaborate and contribute to serve one common aim.

Responsibilities, authorities and relations organized in such a way as to enable the organization to perform its functions.

Organizational Structure of KTML

The organizational structure of Kohinoor Textile Mills Ltd. is flat and the flow of authority has a proper channel as shown in the organizational chart. The chart is divided into a systematic manner into different boxes while each box denotes a department or section headed by an incharge who supervises plans and controls the operations and affairs of the company.

This organizational chart shows the flow of authority and responsibility from top management to lower management. But according to any observations and personal judgment, there is a diagonal and formal relationship between management whiles the flow of authority in the chart as formal, which encourages bureaucratic trends.

　　　

ORGANIZATIONAL STRUCTURAL DIMENSIONS

1) Formalization High Implementation according to document.

2) Standardization Low Work is defined so standardization is high.

3) Specialization High Dividing work activities into separate job tasks. As there is a separation of departments e.g. spinning, weaving stitching, and dying. So at KTML phenomenon of work specialization is deeply held and widely shares.

4) Centralization Moderate Managing Director holds the most of the authority.However, decentralization exists at middle level of management to some extent.

5)Hierarchy of authority combination Hierarchy of authority is blend of both horizontal and vertical

7) Professionalism moderate Top management has moderate orientation. The line staff has average

8)Control Mechanist Company needs enough control for stability.

9) unity of command exists Unity of command exists every department.

10) Span of control Span of control is narrow. Therefore organization is less efficient but more effective.

11) Unity of direction exists Managers and workers are provided with single plan of action.

12)scalar chain Exists Scalar chain exists from the top level management to the lowest level.

13)Chain of command high We clearly see from the organ gram that there is certain chain of command being followed e.g. finance KTML is reporting to General Director Finance.

14)Process departmentalization

exists Process departmentalization is adopted at middle level of management at KTML.

15)Functional departmentalization

exists There is functional departmentalization implemented at upper level of management e.g. Purchase, IT, Shipping and Logistics, Finish Folding, Training Centre. All above

departments are reporting to director.

EXPLANATION OF ORGANIZATIONAL CHART

LEVELS OF MANAGEMENT

We can subdivide the mill's management into the following three main levels.

1. TOP MANAGEMENT

Consisting of Chairman, HR & Admin Manager, Senior Manager Finance & Accounts, Senior Marketing Manager and General Manager. The Top management formulates policies and makes decisions about the company activities for achieving the objectives. General Manager implements these policies and decisions in the mills. While General Manager's authority consisting of the following. Makes decisions within the scope of his own authority. Assigns tasks to subordinates in their areas. Expects and requires satisfactory performance form subordinates.

2. MIDDLE MANAGEMENT

This level of management consisting of Assistant Manager, Spinning Master, Labor Officer, Security Officer and Time Officer. This type of management receives orders from General Manager and implements them through the co-operation of lower management.

　

While the main responsibility of middle management is to control and direct the operations with the consent of General Manager to get work done. It involves in standardized production, supplies, good working conditions and definition of standard performance and reporting of flow of work.

3. LOWER MANAGEMENT

This department is headed by Assistant Manager who is also the incharge of accounts section. Assistant Manager controls all the activities of the mills according to the rules and regulations receive from General Manager. While he performs the following main function: to maintain good relations with outside public. Good relations between Govt. and mills. Good relations with general public. Administration of the resident area of the mills. Administration of the employees who are working outside the production department in the mills. Dispatching of goods according to the orders of the Head Office and pay excise duty on those goods.

Receiving of raw materials for production department and pay custom duty on the material. Receiving orders from Head Office and implement those orders under the supervision of General Manager. Giving daily information about the production and other activities to the Head Office.

Major department of KTML

GINNING DEPARTMENT

SPINNING DEPARTMENT

WEAVING DEPARTMENT

STITCHING DEPARTMENT

PROCURMENT DEPARTMENT

QUIALITY ASSURANCE DEPARMENT

MARKETING DEPARTMENT

PRODUCT DEVELOPMENT DEPARMENT

CULTURE

Organizational culture is an concept in the field of management studies. This describes the psychology, attitudes, experiences, beliefs and values (personal and cultural values) of an organization. It has been defined as "the specific collection of values and norms that are shared by people and groups in an organization

KTML CULTURE DEFINED

Organizational values known as "beliefs and ideas about what kinds of goals members of KTML should pursue. Organizational values develop organizational norms, guidelines or expectations that prescribe appropriate kinds of behavior by employees in particular situations and control the behavior of organizational members towards one another.

Strong culture

Strong culture is one in which key values are deeply held and widely shared, having a grater influence on employees. The more employees accept the organizations key values and the greater their commitment to those values the stronger the culture is. Strong culture helps firms operate like well oiled machines.

Strong Culture observed at KTML

At KTML, we observed that there is very strong culture. All the employees are punctual. There is no compromise on cleanliness. Neatness and cleanliness is strictly observed. There is separate uniform of workers in every department. Similarly separate security passes are required to enter into each department. There is strict check and balance on security. Guards are highly alert every time. And snap shooting is strictly prohibited due to security concerns. At that place, if someone is found holding camera or mobile in his hand, strict action is taken and respective things are confiscated at moment by security guards. At KTML, there is a culture to warmly welcome the visitors. We were privileged to

have 3 hrs even from the busiest GM HR/ADMIN. We were cordially allowed to visit the various departments of the mill. We observed different processes of production e.g. ginning, spinning, weaving, dying, stitching and packing.

For KTML, the employees are considered as a value able asset to the organization. There is culture of care and welfare of their employees. For health and safety purpose, a great deal of initiatives are taken and implemented e.g. the workers are provided with ear plug, face masks and protective head helmets’ so that they may avoid injury and protect their vital organs during work. We also observed that the administration has provided the work space with proper ventilation and air conditioning system. Moreover, most of the supervisors were certified first aid providers so that in case any accident, they may provide with first aid at the spot.

New employees are taken on merit basis. Merit is the criterion, which is strictly followed at KTML. There is an internship of 4 to 6 six weeks in which fresh graduates are trained and informed about KTML culture. Minimum incentives are given during this period. At the end of this probation an evaluation is conducted and if the employee is considered fit for the company then he is hired and provided with handsome salary and good incentives. All these factors contribute to the growth and development of the strong culture which is already deep routed in KOHINOOR TEXTILE MILLS LTD. People at KTML do the things expected of them. They do these things because they consider them right.

Seven dimensions of culture at KTML

Attention to detail.

It means degree to which employees are expected to exhibit precision analysis and attention to detailAt KTML, employees do show accuracy in their work and they are kept under the keen observation and they analyze the different situation as well. They gather the detail and they come up with deep analysis and they are attentive towards detailed information by the management.

Outcome orientation It is degree to which managers focus on results or outcomes , rather then how these outcomes are achieved. At KTML, the managers both consider the outcomes and they also pay attention to how these results are achieved to maintain their quality.

People oriented

Most of the decisions at KTML are taken at managerial levels and higher management do consider people important. And they are also concerned about the effects these decisions can have on the people concerned. Management consults with the employees on important issues as well.

Team orientation.

At KML team orientation is an essence of work at non managerial levels to perform specific jobs in respective departments.Aggressiveness:

Employees are cooperative and competitive at non managerial level but they are aggressive and competitive at middle level of management.

Stability:

There is strong status quo being observed at KTML. Organizational decisions and actions strong stress upon the above.

Innovation and risk taking:

Innovation and risk taking is given considerable attention at middle level of management for e.g. in marketing and product development department. Reason behind is to adopt the ever changing trends and to cope with the customers demand. But as KTML is a manufacturing concern, so they discourage these terms at non managerial levels as they have to adopt sequential process to get their job done.

Aggressiveness:

Degree to which employees are aggressive and competitive and cooperative. Employees are cooperative at non managerial employees but they are compitive at middle level of management.

Strategic Management:

Strategic or institutional management is the conduct of drafting, implementing and evaluating cross-functional decisions that will enable an organization to achieve its long-term objectives.Managers make strategy for the long term planning to achieve the goals. Strategic Management is what managers do to develop strategies of an organization.

Strategic Management process is a six-step process that encompasses strategy planning, implementation, and evaluation. First four steps describe the planning that must take place, implementation and evaluation are just as important.

SWOT Analysis:

SWOT analysis is a methodology of examining potential strategies derived from the synthesis of organizational strengths, weaknesses, opportunities and threats (SWOT).  The partnering of the different elements and the extensive data collected as a result of the analysis can serve as a spark for roundtable discussions and refinement of current strategies or generation of new strategies. These strengths, weakness, opportunities and threats play vital role in determination of what sort of strategy should be adopted by an organization.

STRENGTHS

HAVING OWN ELECTRICITY PLANT

KML having own electricity power plant which is producing not only for the KWML but also providing

electricity to other companies and to govt. at subsidy rate.

ERP SOFTWARE

ERP (Enterprise Resource Planning) has been installed in KML that’s why company is saving all

records in systems and having huge database.

POWER LOOMS

KML has purchased latest power looms Toyota Air Jet Power Looms. That’s why they have reduced

the production cost and have increased the quality and efficiency of their textile products.

CROSS CULTURAL COMMUNICATION

In KML there are near about 4500 employees who are from different environments and having different

cultures but fortunately there is no cross cultural communication.

MARKET REPUTATION

KML is one of the major Mills in Pakistan that’s why they have little bit reputation in local market and

having trust from investors

WEAKNESSES

EMPLOYEE’S MOTIVATIONAL LEVEL

The one weakness of KML is that their employees are not motivated that’s why they are getting off and

putting their resigns in front of managers and executives. This is the responsibility of HR department to

find out at to see at the time of hiring them that what the thing is that their employees can be motivated.

EVERY BOOKED ORDER IS DELIVERED LATELY

The delivery of each contract is always not done on time. The customer has to wait for 4 to 5 weeks to

get his/her desired product. The main reason is that late purchasing of raw material. Raw material just

like Yarn and Sizing material is not available on time and some time it happens that there is shortage

of raw material during the running contract that’s why production department has to wait for the raw

material.

ADMINISTRATIVE EXPENSES

There are high overhead charges through out the year particularly administrative expenditures.

Management whether it is lower management or upper management, the expenditures are same but

company is getting equally profit from them that’s why expenditures are increasing.

RELIABILITY ON FOREIGN CUSTOMERS

Always organization has to rely on foreign customers. KTML is too much depending upon their foreign

customers but because of rapid changes in political situation, trade & export laws it would become

risky and loss of customers.

COMMERCIAL DEPARTMENT

Commercial department of KML is showing its little bit bad performance. Means always the yarn is

purchased late and on credit and payments are done by the department always very late. There is no

proper or pre-plan for the month or for couple of weeks so that amount should be received to pay the

suppliers. Each time purchasing of yarn is done belatedly so that looms not run and hence per day cost

increased and depreciation also.

GODOWN POSITION

There is no proper placing for final products to place them safely and at the time of their dispatch there

is possibility of mistake.

ERP SOFTWARE

It’s good that KML has ERP software in their systems. But there are number of errors that are occurred

much time. For example, during the dispatch of product, you have to click all the rolls manually. There

is no option to select them all and other problem is to calculate the weight of packed rolls. You have to

do all these things manually.

COMMUNICATION GAP

There are a little bit gaps in communication between the departments. May be these confirm each and

every thing from each other but still they make mistakes and blame each others to safe them.

MARKETING OF TEXTILE PRODUCTS

KML has no proper planning for the Marketing. They advertise about their selves only from

newspapers. That’s why limited number of people knows about them.

OPPORTUNITIES

NEW TECHNOLOGY

The technology has been improved for the textile industry and these technologies are being

acquired by the international competitors as well as by local competitors so they are producing

good quality textile products and increasing the efficiency as well as decreasing the cost of

production. KWML has the opportunity to invest for the new technology. By acquiring the latest

technology, they can increase the production quality, efficiency and can decrease the cost of

production.

MOTIVATING THE EMPLOYEES

HR department can prove and show them they are here for employees by motivating the

employees performing their best. They can find the motivation level of their employees and

give them incentives to motivate them.

PROJECTS FOR THE LOCAL MARKET

KWML has the opportunity to capture the market share locally by launching new projects just

like they have launched “Dhanak “in August 2008. They can start new projects in garments,

Apparel or Home Tax, Dyeing, Hosiery.

ADVERTISING

KML has the opportunity to advertise about their selves to promote their textile products.

They can advertise in international magazines about themselves

KML can publish its own local business magazine to promote themselves

Can also be advertised over the internet (electronic Marketing)

KML’S OWN SHOPS

KML can open its own shops in local market where they can display their garments products

(socks, Trousers) and Apparels as well as curtains.

ONLINE SHOPPING STORE

KML can open its online store where they can show their garments variety and apparels. The

advantage of this step would be

Online Marketing

Capturing the market over internet internationally

Capturing the market over internet locally

The material which you put on your fair price shop can be sold out at online shop

THREATS

POLITICAL INSTABILITY

As we all know that the political situations of Pakistan are one of the worst situations of

the whole world. Each new government establishes its new rules and regulations which impact

the industries badly. there are many major issues which are affecting the textile industry as

well as other countries .

increment in the prices of Gas

Per liter increment in price of petroleum .

No subsidy for the research and developments in the textile industry.

Against these rules and implications, All Faisalabad Textile Mills boycott in July 2008 by

shutting down their Mills and factories. Now the government has provided them some subsidy

in gas field.

HIGH CONSUMPTION OF PETROLEUM

The high consumption of the petroleum is also the major issues because in international

market, their prices are going up and touching sky, due to which the freight costs are

increasing day by day and hence the cost of production, is also increasing rapidly which is

becoming the reason of losing foreign customers of Pakistan.

INCREMENT IN FREIGHT CHARGES

The prices of petroleum have been increased and still increasing rapidly. That’s why the

freight charges have been increased and the cost of productions has also been increased by

the huge amount. Due to these increments, the sale price has also been increased but

customers are not ready to pay more for a good quality instead of better quality. And transport

companies are demanding more increments to use their transportation services.

INTERNATIONAL AND LOCAL COMPETITORS

One of the major threats at international level which KML and textile industry of

Pakistan has to face, is international competition which is growing up and competitors are

capturing the market share rapidly that’s why Pakistan’s market share in foreign market is

cutting down gradually due to high cost but poor quality of their textile products.

PEST ANALYSIS

POLITICAL FACTOR

Uneven political conditions, deteriorating law and order situation and instability in gas and electricity

prices are adversely affecting the textile sector, while government has hardly taken any step to give

some relief or incentives to the mill owners. Textile mill owners and exporter have strongly denounced

the recent increase in the gasoline prices and demanded from the government to withdraw the recent

increase and take serious steps to help textile industry survive through difficult times According to the

sources, if prices continue to increase at current rate, the textile industry would find it difficult to survive

as the recent increase has already proven deadly and many mills have started to shutdown in the wake

huge price increase. It was also witnessed that due to prices increase in gas has not only adversely

affected the productivity of the textile industry but has also caused sudden increase in the production

cost and has badly affected the economy of the country. On the other hand, textile and the other

exporters also facing a lot of challenges due to increase in the production cost of the specific export

goods, while such hurdles badly affected the Pakistani exporters to meet the challenges and compete

in the local and international markets. Exporters are demanding that government should give them

facilities to cope with the existing challenges and not get involved in favoritism.

ECONOMICAL FACTOR

Economical factors are also disturbing the all industries of Pakistan as well as the textile industry. From

1999 to 2008 the inflation rate has been increased by 100%. The last and current Government has

been failed to control the economy. As the prices have been increased, the suppliers try to get and

save more profit from their investments. That’s why prices are decided and put with a high return in

terms of profit. Before 2008, textile industry was getting number of incentives from the government just

like R&D (Research & Developments) and subsidies on the utilities. But some companies misused

these opportunities and unfortunately Govt. pulled back these types of incentives.

The main problem with the textile industry is shortage of electricity, gasoline and petroleum, due to

which Textile industry is bearing too much cost that why they have to increase their prices to earn profit

or for break-even. There are some companies which have their own electricity plants but they have to

spend a lot of money to run them.

Other problems which are facing by the textile industry of Pakistan are

Not availability of skilled labors.

Labors cost is increasing rapidly

Loosing quality of its products in both markets domestically and internationally

Poor monitory and Fiscal policies of the Govt. of Pakistan

Uneducated people

Investors are pulling out their capital from the market quickly

Foreign Investments are not coming towards Textile industry

These are the factors which are disturbing the textile industry strongly economically.

SOCIOLOGICAL FACTORS

Textile industry affecting the society and environment in number of ways, some of them are mentioned

below.

Polluting the air by pushing out ruins of chemicals. Different gases in air react with these ruins

which become dangerous for human beings.

No proper system to throw out the useless materials and chemicals.

Most of the useless materials and acids are thrown into the fields which are react or disturb the

agricultural products seriously.

Since the cost of the production and labor cost are increasing day by day. That’s why the final

product cost is also increasing that’s why people are buying low quality products and not

spending too much to purchase.

Textile companies are firing the labors and employees as well because of high production cost

and salaries that’s why the unemployment rate is increasing day by day which is not good for

the industry as well as for the country.

TECHNOLOGICAL FACTOR

The technology has been improved and updated in the textile industry of Pakistan and some of the

companies in textile industry are acquiring these technologies. By using new technology not only they

improve their quality and efficiency but also improve their production as well as reducing the cost of

production.

Corporate Social Responsibilities:

Corporate social responsibility (CSR), also known as corporate responsibility, responsible business, sustainable responsible business, or corporate social performance, is a form of corporate self-regulation integrated into a business model. Ideally, CSR policy would function as a built-in, self-regulating mechanism whereby business would monitor and ensure its adherence to law, ethical standards, and international norms

Corporate Social Responsibilities of Kohinoor Textile Ltd:

COMPENSATION BENEFITS & FACILITIES:

Kohinoor Industries Ltd. provides following benefits and services to it's employees:

Bonus:

Profit Bonus is paid to all employees every year depending on profitability of the company.

Recreation Allowance:

Recreation allowance equal to one month basic pay is allowed to an employee who has completed yearly service without having absence or leave without pay to his credit during the year.

Attendance Allowance:

All employees whose basic wages + coat living allowance do no exceed Rs.1000/-P.M are paid Rs.40/- P.M. as Attendance Allowance if they have no absence or leave without pay during the month.

House Rent Allowance:

All employees who are not entitled accommodation by the company are paid house rent allowance at the rate of 10% of the basic pay per month.

Insurance:

All employees of the mills are insured under State Life insurance. In case of any accident or death of employees, the insurance company pays insurance money to nominee.

Leave:

Three types of leaves are given to the employees:1. Privilege Leave (Annual Leaves) 2.Medical Leaves 3.Casual Leaves( For staff, 8 casual, 10 medical and 15 annual) For officers 10 casual, 10 medical 15 annual.

Gratuity:

Gratuity is granted by the mills on resignation from services or termination from services for any reason other than misconduct. While 20 years of services prescribed for the payment of gratuity by the company. The rate of payment of gratuity is 20 days wage for every completion year of services.

Economic and other Incentives:

Company also provides credit facilities to its workers without any interest. While this scheme is known as advance payment scheme and small amount is deducted from the employee’s wages to recover the credit granted by the company.

Dearness Allowance:

Like government employees this mills also pays dearness allowance to its workers.

Traveling Allowance:

Traveling allowances are paid to those workers who travel for the mills work.

Free Uniforms:

The company issues uniforms to foremen, peons, watchmen and security staff at free of cost.

Accommodation:

Accommodation is provided to about 80% of the employees. Electric, gas, water supply and flush system facilities are made available by the company.

School:

High school for boys and girls, and primary school for both are functioning in the mills colony. The company provided beautiful buildings for schools. Till 1971, the Company was running these schools at it's own cost. After that the same were nationalized.

Welfare Centre:

In the Welfare centre workers club building is provided. Shopping complex to provide essential goods also exists.

Canteen:

Company is running the mills canteen round the clock for workers welfare. Meals and tea are sold at subsidized rates. Company is contributing monthly subsidy Rs.24,000/- P.M. on this account.

Medical Centre:

In addition to the Social Security Hospital the company has it's own Medical Centre for those employees and their families who are not covered under the Social Security Scheme. Medical Officer and Para-medical staff is employed in the centre.

Mosque:

For the convenience of its employees the company has provided a very beautiful and commodious Mosque in the mills premises. The company bears all expenses of the Mosque including pay of the staff employed therein.

Social Obligations

We comply with all applicable labor laws;

Company Profits Act, 1968 (Workers’ Participation) Act regarding participation of workers in company profits.

Employee Old Age Benefits Act, 1976 Act relating to old age pension.

Employment of Children Act, 1991 Act to prohibit child labor

Factories Act, 1934 Law regulating labor in factories.

Provincial Employees Social Security Ordinance, 1965 Scheme providing health benefits to employees or their dependents.

Industrial Relation Ordinance, 2002 Law relating to trade unions & regulations of relation between employer &

worker.

West Pakistan Industrial and Commercial Employment Ordinance, 1968 Law relating to industrial and commercial employment

Workers’ Compensation Act, 1923 Act provides for the payment by employers to workmen for compensation

relating to injury by accident.

Bibliography:

For successful completion of this project we have utilize different available resources, from which wehave obtain required data. These resources lie in both digital and analog form. Most of the information is obtain from Internet, while a visit to company is also made to get further information. We are thankful to company management who had welcome and cooperate with us.