Sitara Textile Internship Report Insights

INTERNSHIP REPORT
ON
SITARA TEXTILE INDUSTRIES (Pvt.)

LIMITED
FAISALABAD
Submitted by,
AWAIS MAHMOOD BUTT
MBA (HRM)
　
Virtual University of Pakistan,

Defence Road, Off Raiwind Road,
Lahore.
　
　
　
　
DEDECATION
　
The Holy Prophet Muhammad (S.A.W.) The greater Social reformer and
guide in every sphere of life. My affectionate parents who taught me the first
word of speak and supported me morally and financially throughout my
studies.
ACKNOWLEDGEMENT
“In the name of Allah, the most merciful and beneficent”
I would like to thank Almighty Allah who made me able to complete this
internship report by utilizing my skills and knowledge. I am also thankful for
giving me spirit of patience, consistency and courage during my internship.
I am also grateful to the Virtual University of Pakistan, especially regional

office that provided me a chance to explore my skills, qualities, abilities and
potentials through internship program. I am also thankful to my teachers for
giving me chance to show the best of my abilities during the period of my
internship.
At Sitara Textile Industries limited, I would like to thank Mr. Saleem Chaudry,
GM (HR & A) who provided me full opportunity to start internship and
accumulate first hand comprehensive information’ during my internship. I am
also obliged to different persons like Mr. Zafar Iqbal, Mr.Tariq Mehmood and
Mr. Ghulam Mustafa who provided ever information I needed during the
course of my internship.
Last but not the least, I am also thankful to my younger brother and best friend
of mine Mr. Umar Khatab who’s management experience and tips regarding
internship are always helpful for me. Without his encouragement and guidance
it might not be possible for me to complete my MBA so successfully and
smoothly.
I am responsible for errors and mistakes presented in the report and a positive
and constructive criticism will always be greeted warmth.
　
　
AWAIS MAHMOOD BUTT
List of Contents
Title Page 1
Acknowledgement 2
List of Contents 3
Objective of Studying Sitara Textile 6
List of Tables and Illustrations 5
Introduction 7
Establishment and Growth 9
Overview of Sitara Textile 10
Brief History 10
Nature of Organization 10
Business Volume 11
Profile of Employees 20
Product Line 22
Organizational Structure 24
Main Offices 24
HRM Operations 25
Structure of HRM 27
Employees Working in HRM Dept. 27
Functions of HRM 28
Critical Analyses 30
Shortfalls of HRM 34
Conclusions 37
Recommendations 38
References 40
　
　
List of Tables And Illustrations

Page NO.
Balance Sheet 10
Organ gram
　
1. Objective of studying the organization:
My objective of studying the Sitara Textile Industries
Limited is to know about the following things:
1. How management is analyzing work and planning for
people?
2. What factors are most important to consider in
developing a recruitment policy?
3. What screening and selection methods are available, and
which ones are most accurate?
4. To know how management respond to a union
organizing campaign?
UY2. Introduction:
The name “SITARA” emerged on the horizon of Pakistan
soon after its inception in the year 1947.the start was
modest with limited space to work and meager resources to
cater, but devotion and dedication blended with untiring
honest efforts soon flourished to bear the fruits.
Sitara meaning “A STAR” really proved to be the symbol
of bright future for the company and now Sitara is the most
successful group in Pakistan. Sitara Textile Industries gave
birth to the following units and become a “SITARA
GROUP OF INDUSTRIES “
1- Sitara Textile industries Ltd
2- Sitara Chemical Industries Ltd.
3- Sitara Spinning Mills Ltd.
4- Sitara Energy Ltd.
5- Sitara Fabrics Ltd
6- Sitara Enterprises (Pvt) Ltd.
7- Sitara Hamza (Pvt.) Ltd.
8- Yasir Spinning Mills
9- Sitara Peroxide Ltd.
10- Aziz Fatima Trust Hospital
11- Ghafoor Bashir Children Hospital
12- Aziz Fatima Girls High School
　
　
Sitara Textile Industries Limited
Sitara Textile is one of the largest manufacturer and

government accredited exporter of textile in Pakistan
having assets of worth more than US$ 4.00 Billions,
bleached, Printed and dyed fabrics. The total area of
the subjected premises consists of 102 Kinal 17
Marla’s (12 Ackers 7 Canal) (553844 sq. ft.) with
covered area approximately 332,718 Sq. ft.
　
Establishment and Growth
Sitara Textile established in late 50s with the name of

“Sitara Calico Printing” at Maqbool road Faisalabad.
Initially the printing was carried out mostly by orthodox
method but soon after its balancing modernization and
expansion the company was renamed as “Sitara Textile
Industries (Pvt.) Ltd.”in 1969. And it has been registered in
Security and Exchange Commission in 1996 At present its
posses most modern processing machinery form
Switzerland, Germany and England.
Sitara captures a wide market and its products are
appreciably accepted throughout the Pakistan most popular
SAPNA lawn and Mughal-e-Azam Lattha are its major
products, contributing towards the national economy,
export figures range from 10 to 13 million us dollars per
day.
Sitara Textile Industries are proud to be able to make a
major contribution to the general economy well being of
the Pakistani government and its people by earning
valuable foreign exchange and through their job creation
and training schemes.
3. Overview of the organization:
　
3.1 Brief History
The name of SITARA emerged on the horizon of

Pakistan’s textile industry in 1959,A modest limited
financial and other resources available, soon flourished to
bear full owing to the determination and dedication of its
workers, An honest approach in dealing , with customers,
vendors and related agencies, took the group a step ahead
and is a vital contributing to its’ success today. At the
moment Sitara Textile is the leading industrial group of
Pakistan, owing assets more than US$ 4 billion. The Sitara
Group of Industries deals in Textile, Chemicals, Energy,
Health and Education sectors.
3.2 Nature of the Organization
Sitara Textile Industries Limited a fabric woven with tender

care and dyed in the brilliant shades of nature adds
elegance and magnificence to this world.
Sitara Textile is a manufacturer of such fabulous fabrics:
fabrics that speaks of unparallel quality and unmatched
comfort. Sitara Textile specializes in producing high class
fabric product made of superior quality materials and
possesses state production facilities in made ups and fabrics
for various consumer needs. The company makes use of the
latest technical equipment to make sure that each product is
original in style and shows exquisite craftsmanship. Sitara
Textile is a company believes in originality as character
and quality as foundation. The entrepreneurial spirit of the
company assiduously seeks constant development, steady
progress and outstanding performance.
3.3 Business Volume
These balance sheets will show us the business volume of

Sitara Textile for the last five years.
3.3.1 Balance Sheets
SITARA TEXTILE INDUSTRIES LIMITED

BALANCE SHEET
AS AT JUNE 30, 2002

2002 2001
Rupees Rupees
Share Capital and Reserve
Authorised capital
600,000 ordinary
shares of Rs. 100/- each 60,000,000 60,000,000
issued, subscribed and
paid up capital 60,000,000 60,000,000
unappropriated profit 63,332,927 33,115,685
___________________________________
123,332,927 93,115,685
Non-current Liabilities
Long term loans 111,401,640 146,241,261
Liabilities against assets subject
To finance lease 67,611,805 1,947,384
Deferred liability
Staff retirement gratuity 8,392,744 7,421,504
Current Liabilities
Short term bank borrowings 335,000,000 325,700,000
Current portion of long
Term liabilities 13,167,572 16,171,032
Creditors, accrued and other
Liabilities 204,367,961 195,961,126

Provision for taxation
Income tax - -
______________________________________
552,535,533 537,832,158
Contingencies and commitments
863,274,649 786,557,992
Non-Current Assets
Fixed assets 269,527,667 191,450,794
Long term deposits 10,524,468 5,538,999
Current Assets
Stores, spares and loose tools 23,807,965 38,592,084
Stock in trade 273,919,232 231,419,567
Trade debts 117,499,627 76,364,550
Short term investments 27,534,225 30,458,119
Advances, deposits and prepayments 597,604 631,718
Other receivables 117,726,763 175,058,625
Cash and bank balances 22,137,098 36,803,536
_______________________________________
538,222,514 589,328,199
________________________________________
863,274,649 786,557,992
________________________________________
　
　
BALANCE SHEET
AS AT JUNE 30, 2003

2003 2002
Rupees Rupees
Authorised capital
600,000 ordinary
shares of Rs. 100/- each 60,000,000 60,000,000
paid up capital 60,000,000 60,000,000
___________________________________
120,406,455 123,332,927
Long term loans 106,401,640 111,401,640
To finance lease 60,189,181 67,611,805
Deferred liability
Current Liabilities

Liabilities 221,627,883 204,367,961
Income tax - -
______________________________________
741,976,776 552,535,533
______________________________________
1,037,766,825 863,274,649
______________________________________
Non-Current Assets
Fixed assets 239,780,372 250,027,667
_______________________________________
283,264,359 269,527,667
Current Assets
Stock in trade 275,743,980 273,919,232
Trade debts 246,140,416 117,499,627
Advances, deposits and prepayments 1,863,530 596,604
_______________________________________
749,952,334 583,222,514
________________________________________
1,037,766,825 863,274,649
________________________________________
BALANCE SHEET
AS AT JUNE 30, 2004

2004 2003
Rupees Rupees
Authorised capital
600,000 ordinary
shares of Rs. 100/- each 60,000,000 60,000,000
paid up capital 60,000,000 60,000,000
___________________________________
113,903,550 120,406,455
Long term loans 249,170,418 106,401,640

To finance lease 45,154,147 60,189,181
Deferred liability
Current Liabilities
Liabilities 236,041,801 221,627,833
Income tax 2,051,356 -
______________________________________
969,581,791 741,976,776
______________________________________
1,387,224,213 1,037,766,825
______________________________________
Non-Current Assets
Fixed assets 237,355,400 239,780,372
_______________________________________
407,376,532 283,264,359
Current Assets
Stock in trade 389,829,816 275,743,980

Trade debts 313,472,216 246,140,416
Advances, deposits and prepayments 2,427,305 1,863,530
_______________________________________
976,947,138 749,952,334
________________________________________
1,387,224,213 1,037,766,825
________________________________________
BALANCE SHEET
AS AT JUNE 30, 2005

2005 2004
Rupees Rupees

Authorised capital
600,000 ordinary
shares of Rs. 100/- each 60,000,000 60,000,000
paid up capital 60,000,000 60,000,000
___________________________________
127,184,820 113,903,550
Long term loans 362,098,587 249,170,418
To finance lease 109,771,594 45,154,147
Deferred liability
Current Liabilities
Liabilities 233,544,309 236,041,801
Income tax - 2,051,356
______________________________________
1,073,627,619 969,581,791

______________________________________
1,682,644,761 1,387,224,213
______________________________________
Non-Current Assets
Fixed assets 453,080,113 237,355,400
_______________________________________
578,182,168 407,376,532
Current Assets
Stock in trade 538,613,920 389,829,816
Trade debts 108,295,886 312,031,466
_______________________________________
1,101,912,050 976,947,138
________________________________________
1,682,644,761 1,387,224,213
________________________________________

BALANCE SHEET
AS AT JUNE 30, 2006

2006 2005
Rupees Rupees
Authorised capital
600,000 ordinary
shares of Rs. 100/- each 60,000,000 60,000,000
paid up capital 60,000,000 60,000,000
___________________________________
165,466,103 127,184,820
Long term loans 329,868,755 362,098,587
To finance lease 115,946,982 109,771,594
Deferred liability
_____________________________________
456,639,346 481,832,322
Current Liabilities

Liabilities 244,989,749 233,644,309
Income tax 22,846,641 -
______________________________________
1,307,857,547 1,073,627,619
______________________________________
1,929,962,996 1,682,644,761
______________________________________
Non-Current Assets
Fixed assets 597,278,955 578,182,168
_______________________________________
602,833,940 580,732,711
Current Assets
Stock in trade 709,655,037 544,866,136
Trade debts 165,148,491 108,295,886
_______________________________________
1,327,129,056 1,101,912,050
　
________________________________________
1,929,962,996 1,682,644,761
________________________________________
3.3.2 Profile of Employees
The success of an organization is dependent on what type

of management an organization is dependent on, what type
of management an organization has. Sitara Textile industry
is a well-reputed organization. They have very effective
and efficient management. There are five major
departments and over 1750 employees working including
top and middle level.
Departments are:
1- Administration
2- Processing
3- Finance
4- Export
5- Marketing (local)
All the departments have general mangers as their heads
except marketing (local). In top level hierarchy GMs works
in coordination with the board of director to meet with the
long term and short term goals. These goals are set and
checked at the end of each financial year.
Top Level Hierarchy
1. Chief Executive Officer
2. Director Finance
3. Director Export
4. Director Processing
5. GM Admin
6. GM Local Marketing
(Organogram is attached herewith)
3.3.3 Profile of Processing Employees
Processing department is that department where the product

is actually come to the condition of selling. Raw material is
changed to finished cloth by a systematic way. This
systematic way consists of 8 more sub departments that
play their important role to convert iron to gold. These
departments are:
Grey room
Bleaching Department
Dyeing Department
Engraving Department
Printing Department
Finishing Department
Packing Department
Laboratory
Engineering Staff
3.4 Product Line
Following are the products of Sitara Textile Industries.
Sitara Sapna Lawn

Sitara Sapna Lawn ( white and dyed)
Sitara Sapna Latha ( white and dyed)
Sitara Sapna Cambric ( white and dyed)
Sitara Mughal-e-Azam Latha
Sitara Mughal-e-Azam Lawn
Sitara Mughal-e-Azam Cambric
Sitara Mughal-e-Azam (Embroidery)
Sitara Mughal-e-Azam (Collection)
Sitara Universal Cambric (white and dyed)
Sitara King To U KT ( white and dyed)
Sitara Comandar Latha ( white and dyed)
Sitara Supreme Lawn
Sitara Supreme Cotton Cambric
Sitara Cotton Club Cambric (white and dyed)
Sitara Supreme Lawn (white and dyed)
Sitara Quilt Print
Sitara Medlean Print
Sitara Swiss Gold
　
4. Organizational Structure:
　
4.1 Main Offices

Following are the list of main offices of Sitara Textile:
Sitara Textile Industries Limited, 6-KM,

Sargodha Road, Faisalabad.
Sitara Sales Point, Ajman, Dubai

Sitara Sales Office, Islamabad
Sitara Sales Office, Karachi
4.2 HRM Operations
At a general level, it is important to analyze training needs

against the backdrop of organizational objectives and
strategies. Unless you do this, you may waste time and
money on training programs that do not advance the cause
of the company People may be trained in skills they already
possess the training budget may be squandered on rest and
recuperation sessions, where employees are entertained but
learn little in the way required job skills or job knowledge,
or the budget may be spent on glittering hardware that
meets the training director’s needs but not the
organization’s.
It is also essential to analyze the organization’s external
environment an internal climate. Trends in the strategic
priorities of a business, judicial decisions, civil rights laws,
union activity, productivity, accidents, turnover,
absenteeism, and on the job employee behavior will
provide relevant information at this level.
However, assessing the needs for training does not end
here. It is important to analyze needs regularly and at all
three levels in order to evaluate the results of training and
to assess what training is needed in the future.
At the organizational level, senior managers

who set the organization’s goals should analyze
needs.
At the operations level, the managers who

specify how the organization’s goals are going to
be achieved should analyze needs.
At the individual level, the managers and workers who do
the work to achieve those goals should analyze needs,
keeping in mind that performance is a function both of
ability and motivation.
4.2.1 Human Resource Planning
Human resource planning is all about measuring the

organization need to identify the numbers of employees and
skills required to do those jobs. Further, an understanding
of available competencies is necessary to allow the
organization to plan for the changes to new jobs required
by corporate goals.
At sitara, major changes according to economic and social
environments are required purchasing new and additional
office equipment to enhance efficiency e.g., computer
hardware or software, coping with the recall of a defective
product and dealing with the need for a new design e.g.
new automatic rotary machine.
This suggests several specific, interrelated activities that
together constitute an human resource planning system.
They include:
A talent inventory to assess current human

resources and to analyze how they are currently
being used.
A human resource forecast to predict future

HR requirements.
Action plans to enlarge the pool of people

qualified to fill the projected vacancies through
such actions as recruitment, selection, training,
placement, transfer, promotion, development and
compensation.
Control and evaluation to provide feedback on

the overall effectiveness of the human resource
planning system by monitoring of HR objective.
.
5. Structure of the HRM Department:
　
5.1 Number of Employees working in HRM Department
Now I’ll discuss the personnel management of Sitara

Textile Industries Limited under various steps of Human
Resources Management Sitara Textile also knows this fact
and has personnel department right at the entrance of main
gate of mill. Personnel Department of Sitara Textile can be
critically analyzed on the basis of various steps of human
resources management process.
First I would like to describe the ware bouts of department.
Department is situated in an old building which was
constructed at the time of establishment of Sitara Textile
and department was named as labor department. Recently
three or four years ago name of department was changed to
personnel department. There are only 5 personnel who
actually handle the department’s affairs and about 1500
employees are working. There is great work that is to be
done by 5 persons and they feel burden on themselves.
6. Functions of the HRM Department:
　
6.1 Major Functions
Every organization whether it is a multinational

conglomerates a small business, a religious institution or a
government agency depends on people. Appropriate
candidates for each job from chairman of the board to night
shift janitor must be located either inside or outside the
organization and they must be convinced by pay benefits
and working conditions to take and keep the job. They must
also be trained and motivated. Handling these functions is
part of human resources management’s job.
they feel burden on themselves.. There are six steps.
1. Human resources planning
2. Staffing
3. Training & Development
4. Compensation
Management
5. Employee Evaluation
6. Employee Movement and
Replacement
6.2 Supports to Other Departments
Through job rotation policies and by extensive interaction

with managers in all other functional areas. Unless these
executives are perceived as equals by their corporate peers,
their ability to make significant contributions to the firm
will be diminished.
Require the senior HR executive to report directly to the
CEO. At present this occurs in about 70 percent of
companies nationwide. Consider whether any corporate
resource is more important than its people. Ensure that the
top HR officer is a key player in the development and
implementation of business plans—providing early
warning regarding their acceptance and serving as the
CEO’s window on the organization and as a sounding
board.
Representatives from HR and line managers from the
business unit generate key business strategies for the
coming year. To do so, they identify major external and
internal factors that may have an impact on the future of the
business, together with future customer requirements. The
result? A business unit annual plan that outlines
Major driving forces in the business unit.

Major business initiatives in the business
unit.
Primary directions.
Major priorities for key executives of the
business unit.
Managers who have used the strategic blueprint process
emphasize that its single greatest benefit is this: if forces
HR managers to concentrate solely an critical, value adding
activities. Such an approach is sorely needed, as a recent
American Management survey of 1500 HR managers
found. When asked how well HR strategy is linked to
business results, 6 out of 10 respondents said it was either
not effective or just somewhat effective. Only 3 percent
characterized the linkage as “world class.”
　
　
7. Critical Analyses:
　
7.1 Requirement Analysis
Job analysis also provides the basis for developing job

specifications. Job specifications are a statement of the
human qualifications required to perform the job. Among
the qualifications which are often included in job
specifications are the following.
Educational standards which may spell out, for example,
degrees attained, such as a B.S. in engineering.
Experience requirements, such as two years of general
clerical experience for the position. This job requires
directing the work of from two to ten clerical employee,
and therefore would normally require some prior
experience in actually performing clerical duties.
Skills requirements, such as typing 80 words per minute, or
being able to take dictation by an executive etc.
Requirement analysis has performed thoroughly at Sitara
Textile for the purpose of job analysis by HR department.
7.2 Data Gathering
There are four basic technique generally used for gathering

about different jobs.
Interviews in some cases, job analysts may

interview the employee who is performing the
job, the supervisor, or both. This technique may
be time consuming, and the danger exists that
employees may exaggerate the importance of
their jobs. At Sitara Textile interviews are
conducted for certain types of investigations in
cases of breakage of rules and regulations.
Interviews are also conducted for search of a new
candidate but these interviews are just mere
formality rather than having professional
approach.
Observation A second approach to

information gathering in job analysis is having
the analyst actually observe the individuals
performing a job and record observations while
doing so. In some instances this method is very
useful, but under certain conditions it becomes
more difficult if not impossible. At Sitara Textile
this technique is implemented in some cases,
observations have done for performance
judgment and competency of work force.
Questionnaires Probably the least costly

method of collecting job analysis data is by using
questionnaires. Well designed questionnaires
have been claimed to be “the most efficient way
to collect a wide array of job data and
information in a short time. However, there is the
danger that a responder will not complete the
questionnaires, complete it inaccurately, or take
an excessively long time to return it Sitara Textile
usually does not use this sort of technique to
collect the data.
Diaries or Logs A fourth approach is to
utilize diaries or logs in which employees record
their daily activities and tasks. In addition, those
activities performed at infrequent intervals must
also be noted. Because of the difficulties
connected with this procedure, portable tape
recorders may be utilized to assist in maintaining
a record of such activities.
HRM department has not any systematic
procedure for using the diaries or logs for the
purpose of data gathering.
　
7.3 System Design
When choosing a system, always remember that the

selection is not expected to last forever. That thought
should provide a glimmer of hope and some optimism, too.
The selection is important and should be taken with great
care. At the same time, you should acknowledge that if
something better comes along or if circumstances change,
you might have made different choice.
Develop detailed project plan

Develop user groups
Purchase hardware
Develop independent focused computer
applications.
Implement independent applications as ready

Modify in house forms
Modify/customize initial systems
Establish procedure
Convert data Train HRIS staff
During my internship at Sitara Textile, I found that HR
department uses to develop various user groups for
example there is separate software running for the work
force of processing department and similarly for stitching
department. Oracle software’s are in use for the employee’s
pay roll system and pay breakup, all the programming has
been done by IT department. In pay roll system there is a
employee form where the data has recorded and pay break
up system is also the part of these pay roll forms. There
exists auto generation system at Sitara Textile, employees
attendance is being checked through hand scanning
recently changed from old procedure of card scanning.
7.4 Implementation
Following are the points which theoretically I read during

course of my study
Implement HR core
Train other HR users
Make system available to HR functional
specialists
Refine HR core
Establish mainframe micro link
Conduct field analysis
Develop procedures for distributed
processing
Prepare technical documentation

Develop/work on other modules
Test system and user acceptance
Implement additional modules
Maintain/enhance
　
　
　
8.Short-falls/Weaknesses of the HRM Department:
8.1 Planning
At Sitara Textile I think very small importance is given to

personnel as far as planning is concerned. Upper level
management like CEO and Director give low attention to
this department. Personal Department does not search for
and does not know whether there is need of new employee
at same job or not. They only know who is going out and
there is a vacancy at the place of out going employee. I
have examples for such employees who are doing work of
two or three men. There should be better planning for that
in order to achieve organizational goal. If the goal is to
minimize the expenses it is not proper way to control and is
not legally and ethical acceptable.
8.2 Recruitment
At Sitara Textile recruitment is done internally as well

externally. Recruiting is to attract qualified people to apply
for positions with an organization. Sitara Textile do not
advertise their job in newspaper but let the people be
informed by existing employees.
Most of new employees are hired on reference basis. There
are various authorities to hire the people for various
positions. If position of job is that employee would be paid
Rs.4,000/- monthly, personnel manager has authority to
hire this employee. The finance manager hires employees
having salaries below Rs.7, 000/- monthly. And job of
value higher than Rs. 7,000/- per month is up to CEO or
Director.
8.3 Training & Development
At Sitara Textile every new employee trains himself at his

own because training is not done or given properly by the
organization. Employee’s new colleagues teach him
manners of his job. Sitara Textile does appoint trainee
employees who are trained by the existing employees and
these trainees are sometime hired for actual jobs. These
hired trainees are beneficial for Sitara Textile because they
are already trained and understand their jobs. If there is
new employee hired who was not trainee at Sitara Textile
suffers because of that Sitara Textile do not have proper
training program.
8.4 Compensation Plans
As Sitara Textile is an industry of conservative type

therefore compensation and reward system is not very
much impressive. Compensation level of Sitara Textile is
low that is way qualified and talented people hesitating to
join Sitara Textile. There are low basic pays offered. One
good thing is that including allowances, pays become
double of the basic. But gross pay remains at the low level
as compared to the other industries. All the textile
industries in Faisalabad have low level of compensation
except few, so as Sitara Textile. Various allowances are
given to employees like medical allowances, attendance
allowances and etc. Attendance allowances are only for
those employees who are taking less than Rs. 5,000/- gross.
As compensation level is low therefore employees are not
very much motivated. Motivation level and morale of
employees are low which affects the periodicity of the
organization. It is fact that Sitara Textile is well reputed
organization and covering productivity requirement but if
morale and motivation levels are brought high the
productivity could increase. Anyhow Pakistani work force
are scared and compelled to take whatever any body gives
because of unemployment. Some think is better than
nothing.
8.5 Evaluation
Sitara Textile performance of the employees is evaluated

on the basis of what has been expected from them. The
upper level management evaluates performance. Upper
level management sees how an employee is performing on
his assigned position. It is done through observing and
comparing the productivity of the organization with the
expected productivity. The results of evaluation are used in
movement of employee inside the organization or outside
the organization.
8.6 Movement and Replacement
At Sitara Textile movement is of three types one is

promotion 2nd is voluntary severance and last is termination. In case of good performance
promotion or increment is given to the employee and is case of mistake or misbehave only one way
that is termination. Sitara Textile do not care employee turnover or things like that, they just replace
that employee. In this way movement of employees takes place at Sitara Textile.
This is all about the short-falls and weaknesses of HRM

department of Sitara Textile. Despite the fact that
department and personnel management is not very good
Sitara Textile has great productivity capacity. Emergence
of all other industries in Sitara group of industries is
example of excellent of Sitara Textile.
9. Conclusions:
　
All the sub departments of processing

department like bleaching, dyeing, printing and
finishing are working under laboratory
instructions so laboratory is playing role of
executive in quality control.
All the schedules of bleaching, dyeing

printing and finishing are prepared by the
laboratory instead of related management or HR
department.
There is lack of human resource planning,

lack of recruiting activities lack of job analysis,
compensation and reward system is not very
much attractive and employees are not well
motivated in Sitara Textile.
One good thing of this department is that the

department let the employees follow the rules and
regulations set by the organization strictly.
Attendance is strictly checked and leaves as well.
So there are good and bad both present in the
human resource department of Sitara Textile.
HRM department is not established and not

considered to be very much important. Low
attention is paid to this department by upper level
management.
There is lack of human resources planning,

lack of recruiting activities and lack of job
analysis.
Compensation and reward system is not very

much attractive and employees are not well
motivated in Sitara Textile.
10. Recommendations for improvement:
Organizations big or small profit or unprofitable have
problems and there are always chances of improvements.
This is also the condition for Sitara Textile. As problems
and difficulties have been identified, now here are some
suggestions that may help the organization to improve. This
is also the condition for Sitara Textile. As problems and
difficulties have been identified, now here are some
suggestions that may help the organization to improve.
In processing department there is a need of

skilled workers. There are certain departments of
processing in which employees have been
working since long but their efficiency is not
improved and unsatisfactory results come out
sometimes. The skilled labor will not only
improve the efficiency but also will improve
effectiveness. There should be chances given to
skilled workers to enter the organization.
There should be female artists and designers

in design department as females have naturally
more esthetical qualities than males. They will
really improve the quality of designs and will
introduce more innovative design.
Expanding product lines that will give more

variety to people of country could extend local
marketing and ultimately sales would be
increased. There should be more staff in local
marketing department to enhance the sales figure
and to capture wide area of local market.
There is need of better working condition in

personnel department. Employees of this
department are working in very poor condition,
chair are broken, air conditioning facilities are
not properly in some department like HRM
department. That is why morale of employees
working in department is low and they are not
motivated for doing jobs. This area should
carefully be examined and solved.
There is need to increase the staff in this
department only three or four persons are
working with all the affairs regarding let the
employees abide by the rules and regulations,
recruiting, selecting and other activities. This area
should carefully be handled to attract skilled
employees and ultimately to enhance efficiency
and effectiveness.
Job analysis should be done to know what are

the jobs needed in the organization. I know some
persons who are doing the job of two or three
persons.
Compensation and reward system should be

brought at higher level in order to let the
employees be motivated and happy.
There should be more fringe benefits for the

employees taking into consideration there
devotion skill and experience. This higher level
would make the employees more efficient and
effective.
There should be little compensation for

trainees as well as they can fulfill their day to day
traveling and food expenses. By doing this
trainees will show more interest, more devotion,
more potentials and will work with full mental
and physical efforts.
The first aid and other medical facilities
should be provided to the employees with in the
mill area. There is continuous working in the mill
and every time there are chances of any accident
or unpleasant incident. So in order to handle this
type of situation the first aid dispensary should be
there in the mill area.
REFERENCES AND SOURCES OF

STIL:
I collect the all information about the Sitara Textile
Industries Limited (STIL) for making internship report. The
references & Source of information are as fellows:
Mr. Muhammad Awais Director Export Marketing
Mr. Muhammad Hafeez G.M Banking & Finance
Mr. Muhammad Razzaq Director Finance
Mr. Muhammad Yaseen Senior Export Manager
Mr. Ashfaq Ahmad Senior Export Manager
Mr. Shahid Mahmood Deputy Export Manager
Mr. Abul-Qayyum Deputy Export Manager
Mr. Waseem Ahmad Assistant Export Manager
Mr. Muhammad Saleem Ch. HR& Admin Manager
Mr. Bashir Ahmad Banking & documentation Manager
Mr. Muhammad Khuram Export Documentation Manager
Mr. Huammad Ahmad Account & Finance Manager
Mr. Muhammad Zahid Deputy Accounts Manager
Mr. Muhammad Amjad Assistant Accounts Manager

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INTERNSHIP REPORT

SITARA TEXTILE INDUSTRIES (Pvt.)

Virtual University of Pakistan,

I am also grateful to the Virtual University of Pakistan, especially regional

Objective of Studying Sitara Textile 6

List of Tables and Illustrations 5

Establishment and Growth 9

Overview of Sitara Textile 10

Employees Working in HRM Dept. 27

List of Tables And Illustrations

Sitara Textile is one of the largest manufacturer and

Establishment and Growth

Sitara Textile established in late 50s with the name of

3.1 Brief History

The name of SITARA emerged on the horizon of

Sitara Textile Industries Limited a fabric woven with tender

These balance sheets will show us the business volume of

SITARA TEXTILE INDUSTRIES LIMITED

AS AT JUNE 30, 2002

Share Capital and Reserve

shares of Rs. 100/- each 60,000,000 60,000,000

issued, subscribed and

paid up capital 60,000,000 60,000,000

unappropriated profit 63,332,927 33,115,685

Long term loans 111,401,640 146,241,261

Liabilities against assets subject

To finance lease 67,611,805 1,947,384

Staff retirement gratuity 8,392,744 7,421,504

Short term bank borrowings 335,000,000 325,700,000

Current portion of long

Term liabilities 13,167,572 16,171,032

Creditors, accrued and other

Liabilities 204,367,961 195,961,126

Contingencies and commitments

Fixed assets 269,527,667 191,450,794

Long term deposits 10,524,468 5,538,999

Stores, spares and loose tools 23,807,965 38,592,084

Stock in trade 273,919,232 231,419,567

Trade debts 117,499,627 76,364,550

Short term investments 27,534,225 30,458,119

Advances, deposits and prepayments 597,604 631,718

Other receivables 117,726,763 175,058,625

Cash and bank balances 22,137,098 36,803,536

SITARA TEXTILE INDUSTRIES LIMITED

AS AT JUNE 30, 2003

Share Capital and Reserve

shares of Rs. 100/- each 60,000,000 60,000,000

issued, subscribed and

paid up capital 60,000,000 60,000,000

unappropriated profit 60,406,455 63,332,927

Long term loans 106,401,640 111,401,640

Liabilities against assets subject

To finance lease 60,189,181 67,611,805

Staff retirement gratuity 8,792,773 8,392,744

Short term bank borrowings 501,385,886 335,000,000

Current portion of long

Creditors, accrued and other

Liabilities 221,627,883 204,367,961

Provision for taxation

Contingencies and commitments

Fixed assets 239,780,372 250,027,667

Long term deposits 43,483,987 19,500,000