Organization Behavior , Turn Over, Sim

CONTENTS 1. 2. 3. 4. 5. 6. 7. 8.

TOPIC What is Organization Behavior Introduction to Farooq Group of Industries Rules and Regulation followed by Farooq Group of Industries Productivity Turn Over Absenteeism Recommendations Bibliography

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ACK NO WL EDG EM ENTS We have no word at our command to express our deepest sense of gratitude and innumerous thanks to the most beneficent, the most compassionate and the most gracious ALMIGHTY ALLAH, whose bounteous blessing and exaltation flourished our thoughts and thrived our ambition to have the cherish fruit of our modest efforts in form of this manuscript from the blooming spring of blossoming knowledge. We also offer our humble thanks to Holy Prophet MUHAMMAD (Peace be upon him), the cause of creation of the universe, who is forever a source of guidance and beacon of knowledge for the mankind. We feel highly privileged to ascribe the most and ever burning flame of gratitude and deep sense of devotion to our estimable resource person, Mr. Razaq Tahir, project and business manager of Farooq group of industries, under whose auspices we took in stride the completion of this work. Their thorough analysis and rigorous critique improved not only the quality of this dissertation, but also our overall understanding of organization behavior. We are grateful to their ever inspiring guidance, keen interest, scholarly comments, scholastic and constructive suggestion and polite behavior throughout the course of our research. We will be missing our duties if we do not thank our Teacher Ms. Sadaf Nagi, who stood by us mentally and spiritually during the whole project. Who always helped us in solving all of trouble with their love, affections, encouragement, inspiration and boosted our morale to fly high to accomplish our goal and every time wished to see us glittering up on the skies of success. Our utmost indebtedness is also reserved for our “Parents” for their esoteric attention and amplitude efforts to make our study fruitful. Also we are passionately thankful to them for their moral support and devoted prayers to keep our spirits up for the different tasks of lives.

What is organization behavior? Organization behavior is the field of study that investigate the impact that individual, group and structure have on behavior with in organization for the purpose of applying such knowledge toward improving an organization’s effectiveness. So it’s a field dedicated to better understanding and managing people at work. This field is research and application oriented. For this purpose manager of an organization is responsible, as he/she is responsible to get the work of organization done through others so he/she has to understand the individual, groups of people and organization structure. In order to understand the organization manager must have knowledge about the people, product and processes that can have an effect in the organization and which is essential for the continues improvement. People  Skill development  Motivation  Team work  Personal developing and learning  Readiness to change and adopt  Increased personal responsibility for organization out come  Great self management  Decreased stress Reduced network  

Processes  Technological advancement  Faster product development and production cycle time  System flexibility  Effective administration  Improved communication and Information flow

product Greater customer satisfaction Better quality goods and service

Introduction to Farooq Group of Industries: Farooq group of industries has started its operation in 1985 with establishment of Farooq Flour Mill from Haji Ghulam Sarwar. With the passage of time, they expend their business in different fields. Now they are operating two flour mills namely Farooq flour mill and Dawood flour mill which was established in 2004, Farooq beverages where they started their business in 1997 and Farooq ghee mill which was brought in to work in 2003. Farooq group of industries is one of the biggest names in the manufacturing industry in Balochistan, which is equipped with latest and modern technology in their factories. Main division: Following are the main divisions of Farooq group of industry 1. Administrative division Mr. Abdul Samad heads this division. This division concern with the administration of the Farooq group of industry. 2. Finance division. Mr. Abdul Samad is the manager of finance of Farooq group of industry. They deal with the finance policies of the group. 3. Marketing division Mr. Razaq Tahir has the authorities of marketing. Where the makes different kinds of marketing plans for their products 4. Merchandising division This division is run through Mr. Anwar Baloch. Their duty is to monitor the industry, the planning of their competitors and suggest different plans to over come these challenges. 5. Sales division This division deals with the sales of the products. Mr. Anwer Baloch is the head of this department 6. Production division This department deals with the production process. How to produce, where to produce and when to produce are the main questions which are tackled by Mr. Razaq Tahir head of this department. Import and exports: Farooq group of industries is importing its raw material and technology from U.S.A, France, Switzerland, Singapore and Austria. They are exporting their products to Afghanistan and Central Asia.

Future plans: In these days Farooq group of industries is producing 33% of market share in soft drink industry and is also having major contribution in ghee and flour industry in Balochistan. Yet they have planned to increase their exports and local share of market. Technology: Technology is a particular science that creates new products and opportunities. Technology is the most dramatic force shaping our destiny, technology has released such wonders as antibiotics, organ transplants, notebook computers and the Internet. It also has such horrors as nuclear missiles, chemical weapons and assault rifles. Our attitude toward technology depends on whether we are more impressed with its wonders or its blunders. The technological environment changes rapidly. Most of the products that are commonly used today were not available 100 years ago or even 30 years ago. New technology creates new markets and opportunities. However every new technology replaces an old technology. When new technology fought or ignores new technology their business declined. Thus the industries should watch the technological environment closely. Companies that do not keep up with technological change soon will find their products out dated. They’ll miss new products and opportunities. Farooq groups of industries have considered all these facts and have availed the chances and opportunities of their field. The flourmills of Farooq group of industries: The flourmills of Farooq group of industries are the largest industry in Pakistan with the latest technology. In other flourmills of Pakistan only one type of machinery is used that separate superfine flour (maidah) and granulated wheat flour (sooji) from flour. But in Farooq mills there are more than one type machinery that can extract the components as well the other type of machinery can refine the components of flour to get the best quality products. Beverage plants: Beverage plant is also the largest and best-equipped plant in Pakistan. The plant has many sub units in which different tasks are performed. Water refining unit: Water contains lots of minerals for example bicarbonates, magnesium and other microorganisms, which can’t be seen through necked eye. To make a fluid food eatable the water should be purified.

In the unit of Farooq beverages water is boiled at 4000c and by use of catalyst the carbonates and magnesium are made insoluble in water, so that it could be easy to separate those minerals. The deductor deducts the microorganisms and separates them from water. For remaining germs water is passed through chlorinateen process. Production of co2: In the unit of Farooq beverages co2 is extracted from air. Co2 is used in production of soft drinks. As co2 is produced as byproduct nitrogen (N2) hydrogen (H2), oxygen (O2) these products are then sold. O2 is supplied to hospitals. H2 is used in their ghee production and N2 is used in welding process. In this case the cost of production is reduced. Syrup production and quality control: The syrup is produced through a complex process. The pepsin, which is used in production of fluid food, is made in the Farooq beverage plant and is not imported or extracted but it’s produced synthetically. Again the cost of production is reduced. The syrup and water is mixed in a particular temperature and then it’s ready to pore into bottle. Production of bottles and container: Farooq group of industry produces their own bottles of different types and size. They also produce the container of Hayat Banaspati and ghee.

Rules and regulation followed by Farooq group of industry: -

Following are the rules and regulation, which are strictly followed by Farooq group of industry. 1. Working hours: The working hours in Farooq group of industry is minimum 8 hours. 2. Salaries: Minimum salary of an unskilled labor is Rs 5000/= 3.

Over time salary: Over time incentives are provided to the employees and it is double of basic salary per hour.

4.

Leaves: Farooq group of industry gives 14 casual leaves, 14 medical leaves and 14 entertainment leaves to their permanent employees.

5. Old age benefits: The employees are registered in organization that provides old age benefits. 6. No unions: Employees are not allowed to take part in politics or any kind of politics. The organization does not favor politics. 7. Promotion of employees: Employees are promoted and salary increments are provided to the employees after regular intervals. 8. Deficiency showing employees: Employees are given targets and the excuses are not accepted. If any employee is showing deficiency regularly so, he is fired out. 9. Employee’s age: Farooq group of industry is against the child labor and minimum age limit is 18 for employees and they can work until 56 years of age.

Productivity: -

An organization is productive if it achieve its goal and does so by transferring inputs to outputs at lowest cost. As such, productivity implies a concern for both effectiveness and efficiency. The main goal of Farooq group of industries is to capture the maximum market share and maximize their profit in the fields of their operations. We can measure the productivity of Farooq group of industries by their plants in operations. Flour Mills: Farooq group of industries had started its business in 1985.they started their business this business by a mill namely Farooq flourmill. Now they have expended their business, due to increase in demand, by establishing new flour mill namely Dawood flourmill. They are producing their flour in Pakistan as well as in Afghanistan. They have latest technology in their plants so they are utilizing every wheat by making flour, super flour and fine flour. They are producing their product at their full level of production capacity. Hayat Ghee mill: In 2003, Farooq group of industries has started their business of “Hayat Ghee Mill”. This is the latest plant with latest technology in it. The daily production of this plant is 260 tons. Farooq group of industries is producing its product of Hayat ghee Mill at full level of production. They are producing Banaspati ghee, cooking oil and soybean oil. They produce these things within the country as well as in Afghanistan. Farooq group of industries is planning a new Ghee mill in coming few years to meat the demand of it products. Beverages: Farooq group of industries has started this business in 1995 with the cooperation of royal Crown Company. They are producing RC Cola, Apple sidra, Bubble up, Sunkis, Real Cola, Real Lemon and Real orange. The daily production of their beverage plant is 15000 cases per day. This plant is for multi purpose and it worth’s 180 million rupees but other companies with the same plant worth’s 360 million rupees. Farooq group of industries has it own plant to produce bottles and tin packs. Farooq group of industries is not only fulfilling their requirement of bottles but also they are producing and exporting these things. Farooq group of industries is using the same plant for purified water, which they are using for cola’s. Farooq group of industries is not only producing their product of beverages in the country but they are also exporting these plants. They are exporting their products in Afghanistan and Central Asia. The labeling and packaging is done in the same plant. Gas unit: -

Farooq group of industries has a plant in which they are producing different gases. They are producing oxygen, CO2 , Nitrogen, Hydrogen. Farooq group of industries is producing these things and sells them to different organization for different purposes. Pepsin production: Farooq group of industries has their own plant for pepsin syrup. They do not import pepsin syrup for cola’s. “Effectiveness and efficiency of Farooq group of industries”: Farooq group of industries is very effective. It is effective in a sense that it successfully meets its goals. A Farooq group of industries is successfully running 3 different plants and have achieved their goal quit effectively. They had major market share in all the field of operations i.e. 30 % to 40% in every field. Farooq group of industries is efficient as well because they are cost effective. They are producing high out put by low input. Farooq group of industries is producing each and every thing within their own plants. In that way they are getting high out put by low input. They export their products as well and so by this way they maximize their profit. So we can say that Farooq group of industries is very productive.

Turn over: -

The voluntary and involuntary permanent with drawl from an organization is called turnover. Turn over in Farooq group of industries is 3% to 5% which is very less if we consider the society we are living in. Here people are never happy with their parent, neighbors, government or their jobs. The main reason of this turn over is that the newly graduate search for new job. Following are the reasons of very low turn over of Farooq group of industries. 1. Salary package: The minimum salary of an unskilled labor is Rs 5000 per month in Farooq group of industries. Which is a handsome amount for a labor .the salary increases along with the position as the employee gets skilled and experienced. So this is one of the most attracting reasons that labor want to stay in Farooq group of Industries. 2. Calm and Kind supervision: In Farooq of industry there are many sections in every plant. In each section there are almost 50 workers each and these worker are supervised by a plant manager, who is accountable to GM. The supervisors of Farooq Group of industry are very cooperative, respective and most interestingly are followers of Theory Y for the account of treating their inferiors. This is another reason that the workers don’t leave this organization. 3. Local people are preferred: The majority of employees of Farooq group of industries are local and they don’t have any kind of problem to reach at their jobs at time. This is one of the most important reasons that labor want to remain attaches to Farooq group of industries because it’s industries are near to their houses. 4. Employees selection is based on merit: The selection of employee is made only on the bases of talent and skill. Selection is totally unbiased, which creates the felling of job satisfaction. 5. Working environment: Working environment in the factories of Farooq group of industries is very friendly and calm. There are different sections in every factory. They’re no noise in the factories of this group and the relation of labor and supervisor are quite astonishing, which makes the employee feel easy in the factories. 6. Promotion strategy: -

Working well and efficiently is being rewarded in promotion and increase in salaries, which demand more devotion and passion of belonging among employees. The promotion of employee is made only on the bases of talent and skill. Promotion is totally unbiased, which creates the felling of job satisfaction. And this thing encourages them to work at Farooq groups of industries. 7. No salary cut policy: If the employee misbehave at work place or creates loss or gets absent more then official leaves then he is never being punished by salary cut but is given warning. Of course this is the manner to let your employee know that how much you care about his rights and needs. 8. Medical facilities for employees: If the employee is suffering of any disease and this thing makes the employee to be absent. The employee is continuously rewarded his salary until he gets fine, not only this but he is given medical allowances further to facilitate him. And if the worker is not able to work at same position where he was before ill ness Farooq group of industries doesn’t fires that employee but to put him some easier place. This is also one of the important reason of low turn over. 9. Benefits for workers who gets injures in work place: If any employee gets injured on work place is being given complete medical treatment from organization and if any one dies on work place, his family is being helped to overcome the losses by awarding them one lack rupee and his relative is also being employed on his place. This reason makes an important contribution in decision making of employees to stay in this very organization. 10. Employees can enjoy a lot of vacation: There are many official leaves for employees.14 days for medical leaves, 14 days for entertainment, 14 days for casual leaves and all the government leaves are also observed in Farooq group of industries. So an employee can have up to 42 or even more leaves a year. 11. Over time pays:The employees who do over time are paid double of there per hour pay for their extra work. Which is an attractive offer and employees usably can’t enjoy this any other work place. So this thing minimize the turnover of the Farooq group of industries.

So these were some of the facilities and benefits which was provided by Farooq group of industries to their employees and which creates job satisfaction in the employees and do not let them quit their jobs.

Absenteeism: Absenteeism is failure to report to work. Or absenteeism is the non-attendance of workers who are expected to be at work. It’s very difficult for an organization to achieve it goal if employees fail to report to their jobs. Farooq group of industries has a very low absenteeism rate, which is 2% to 3%. This absenteeism in the Farooq group of industries is due to following two reasons. 1. Employee sickness: Mostly employees do not come on work due to sickness. As majority of the labor of Farooq group of industries belong to lower class of the society and they do not have health facilities and regular checkup as compare to upper class. So when ever they get ill, they do not care about that and some time their illness becomes swear. Which results in the shape of absenteeism. 2. Family responsibilities: In our society especially in lower class joint family system is prevailing so family responsibility on working person is must. Not only the working person has to take care his whole family needs as well as earning responsibilities. A working person usually faces the problems like attending weddings, other occasions of the family, some mishap i.e. sudden death or swears illness of any person of the family, which disturbs his working duty. So he tends towards absenteeism. Mostly females of these workers community do not go out side so all the problem of their children i.e. any type of school problem, illness etc are deal by them. These employees also have to deal with the house problem like paying the bills and maintenance of their houses and other small problems, which make them, absent from their jobs. The above two reasons are main causes of absenteeism in Farooq group of industries. Now if we compare Farooq group of industries to other organization then their absenteeism rate is quite low. Following are the reasons of low absenteeism in Farooq group of industries a. Highly motivated and satisfied staff: As the minimum salary of individual in Farooq group of industries is Rs 5000/=. Also the atmosphere in the Farooq group of industries is very friendly and supervisors are very calm and kind so the labor is highly motivated and satisfied and this tends to low absenteeism in Farooq group of industries.

b. Security: -

If any employee gets injured on work place is being given complete medical treatment from organization and if any one dies on work place, his family is being helped to overcome the losses by awarding them one lack rupee and his relative is also being employed on his place. This reason also contributes in low absenteeism. c. No termination, without reasoning: If Farooq Group of industries terminates any employee so they give him the reason for that and organization also gives the chance to employee to prove his innocence. But there is a proper process before the termination of an employee. If the organization is not satisfied with an employee so first the give him warning to improve his self and if the employee can not do o then he is terminated. So this is one of the reason for low absenteeism in Farooq group of industries. d. Local staff deployment: The majority of employees of Farooq group of industries are local. This is one of the most important reasons of low absenteeism in Farooq group of industries because factories of Farooq group of industries are near to labor houses. e. Minimum 42 leaves available: There are many official leaves for employees.14 days for casual leaves, 14 days for entertainment, 14 days for medical leaves and all the government leaves are also given to the labor in Farooq group of industries. So an employee can have up to 42 or even more leaves a year. This is also one of the most important factor of low absenteeism in Farooq group of industries.

Recommendations: Although Farooq group of industries is following all the rules and regulations made by the government of Pakistan and is also providing some extra facilities to the employees of his group. Yet Farooq group of industries to make its organization more effective and efficient can do some extra work. In this way productivity of labor can be increased and turn over and absenteeism can be eliminated. Following are some area where work can be done. 1.fascilities for families: Farooq group of industries is providing health and training facilities to employees but labor can not work whole heatedly if he or she is facing some kind of family problem. His or her attention will be diverted due to these problems. So Farooq group of industries can provide the health and other facilities to the family members of employees like telephone charges, electricity charges, railway charges etc. these facilities will increase the performance of employees and in this way productivity of labor will be improved. 2.social responsibilities: Corporations are socially responsible citizens and corporation can do a lot of work for the betterment and welfare of the society and for the betterment of employees as well. a) Education facilities: -

Farooq group of industries can play their role in the improvement of literacy rate. Unfortunately the literacy rate in Pakistan is near about 35%, which are much lower than the other developing countries; big industrial unit can establish school and colleges. In this way they will be able to play their role in the increment of literacy rate and in the long run skilled and educated labor will be available for production. b) Environmental protection: -

Environment pollution is the burning issue of the present era. Government and many non-government organizations are playing their role in the reduction the pollution. Unfortunately, big industrial units are mainly responsible for pollution. Lavishly use of natural resources has made this problem more serious. Farooq group of industries can play the role in the reduction of pollution. These units have strong financial resources and it is not difficult for them to build parks and plantations of trees. They can also reduce environment by adopting modern machinery.

3. Labor colonies: In these days those businesses can be successful whose labor is more satisfied. Although Farooq group of industries is providing rent allowances to administrative staff but there is no labor colony for labor. Quetta has small population and majority of labor of Farooq group of industries lives in outskirts of Quetta. So the labor may have difficulties to reach at their job place on time and they may not be able to work late at nights or overtime. So the productivity of labor will decrease and chances of absenteeism and turn over will be increased. By the establishment of labor colony, the employees will feel satisfaction and productivity will improve. 4. Permanent employment: Efficiency of the labor can be improved by providing good working conditions and security. When the employees think that they are secure and there is no danger for their lives and jobs, they will be more productive. More than half of the employees is working on contract basis. If Farooq group of industries provide job on permanent basis, the productivity will be increased and absenteeism and turn over will decrease. 5. Extension in product line: Farooq beverage is one of the biggest and modern units of beverage industry. And is supplying 33% of the demand of soft drink. They can improve their productivity by extending product line and introducing new products like Real cola diet, sugar free real Lemon etc. In this way not only the revenue of the firm will increase but also the employment of Pakistan and especially in Balochistan will increase. 6. Reduce THAKADARY system: Farooq group of industries is adopting THAKADARY system in hiring of the low-level labor, Where they have the contract with the contractor to provide them labor. In this system the contractor can exploit the labor and therefore the efficiency of labor can reduced. So Farooq group of industries should reduce this system and try to have direct contracts with the labor to improve its productivity. 7. Awareness program for women: Women are 52% of our population and most of them are housewives. It is the need of time to create awareness among women to become working lady because we can not become developed countries with out the active contribution of women. There is hardly a woman worker in Farooq group of industries so Farooq group of industries can launch a program to enhance the awareness among women to work.

8. Insurance policy for employees: Security is among the basic human needs. Insurance policy is providing this basic human need. The efficiency of labors can be improved by providing them security so Farooq group of industries should introduce insurance policy for employees.

Bibliography: We gathered this all data from Project and Business manager of Farooq group of industries MR. Razaq Tahir.