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SUBMITTED TO: SUBMITTED

BY:
MA’M TASNEEM AKHTAR AMBER GILL
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ERUM
KHAN 07
SANA
QAYYUM 48
NIGHA
T SHABIR 35
SANA
RIAZ 16
SONIA
ARIF 52
ADNA
N YOUNAS 22

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DEPARTMENT OF BUSINESS MANAGEMENT
SCIENCES
UNIVERSITY OF AGRICULTURE
FAISALABAD

DEDICATION

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This Project is dedicated to our Teacher and
parents. Without their knowledge, wisdom, and
guidance, we would not have the goals we have to
strive and be the best to reach our dreams!

The assistant of HR manger Ms. RASHIDA AFZAL helped us

to complete this research report. We would like to express
our gratitude for her support and assistance.

The HR assistant Ms. RASHIDA AFZAL has provided a

tremendous knowledge: she taught us how to think about
the problems; she had provided us the opportunities and
support.

A lot of thanks to Mam TASNEEM AKHTAR for providing us

great help and knowledge so that we could fulfilled this
task and finally lot of thanks to those individuals who
(directly or indirectly) helped us throughout this project.

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 EXECUTIVE SUMMARY

Arzoo Textile Mill has grown from a cotton export house into the
premier business Today, Arzoo is considered to be at par with
multinationals for quality products and management skills.

We recently have done research in Arzoo Textile Mill, in which we

got the information of HR practices

The difference between the success & failure is doing things right
and doing things nearly right, & Arzoo textile mill has always tried
for success & that is why it is known to be one of the known
organizations in Pakistan. Irrespective of all these positive points
of Arzoo Textile Mill, we have noticed a few areas where the
improvement can really increase the efficiency of Arzoo Textile
Mill.

In this report we have given a very brief review of what we have

seen during our visit to the mill. We also mentioned about the
Textile industry in Pakistan and discuss in detail each and every
aspect regarding HR strategic.

Then we have discussed about our learning that we gathered

from the mill. We have made it possible to write each and every
thing that we have learnt there. We have all practical efforts in
the form of this manuscript that’s the asset for my future career.
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LIST OF CONTENTS

1. MISSION 07

2. VISION, CORE VALUES 08

3. INTRODUCTION OF ORGANIZATION 08

4. HISTORY OF ORGANIZATION 11

5. STARATEGIES 13

6. INTRODUCTION TO HR DEPARTMENT 15

7. FUNCTION AND RELATIONS 16

8. ROLE OF HUMAN RESOURCE 17

9. HR AS PLANNING PARTNER 18

10. HR DEMAND 18

11. HR FORCASTING 19

12. HR SUPPLY 19

13. HRMS, HRIS 19

14. PREDICTIONS FOR FUTURE 20

15. SUCCESSION PLANNING 21

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 16. RECRUITMENT PROCESS 23

17. OUTCOMES OF STUDY 25

18. CONCLUSION 26

19. SUGGESSTION 27

ARZOO MISSION STATEMENT

Although Arzoo is providing Quality Products with satisfied customers

worldwide, there is a desire to achieve perfection and excellence. This could
be reflected in decrease of customer complaints and an expanding market
on the global level. The strong commitment and desire for fulfillment is
structured into operations and Quality System in a manner that ascertains
achievement OSF stated objectives in a positive manner. These objectives
are achievable through the following actions:

• System & Process Reliability

• Employees Involvement
• Fair Dealings
• Community Welfare
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 VISION
To transform the company into a modern and dynamic yarn, cloth and
processed cloth and finished product manufacturing company with highly
professionals and fully equipped to play a meaningful role on sustain able
basis in the economy of Pakistan.

CORE VALUES
Our core brand values like quality to excel, innovation & beyond, integrity &
trust set us apart, they underlie our vision of the future, our strategies &
decisions. We live by them.

INTRODUCTION OF ORGANIZATION
Over the years, Pakistan is said to be the single crop economy i.e. cotton and
textile that claims the lion's share in terms of the contribution in the national
economy of Pakistan.

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

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

Arzoo Textile Mills Limited came into existence in 1992,it started its business
with backup of manufacturing the registered capital or ARZOO TEX MILL is
US$50 Million - US$100 Million It is located in Faisalabad 2. 6 KM JARANWALA
ROAD KHURRIANWALA.

The product and services produced by Arzoo are:

• QULT COVER SET

• SHEET SET

• COMFORTER

• CURTAIN

• BED IN BAG

• TABEL COVER

• SOFA COVER

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 • CHAIR COVER

• FABRIC

• GARMENTS

MAJOR COMPITETORS
Competitors of Arzoo Textile Mill are following:

• Crescent
• Chenab
• Alkarms
• Sitara
• Kohinoor
• Amtex

EXPORT MARKET

Arzoo has a substantial share in the export market mostly in the following
areas of the world:

• North, central and South America

• Australia
• New Zealand
• Europe
• S. Africa
• Far East
• Middle East
• Scandinavian Countries

INDUSTRY INFORMATION

Factory Size: 5,000-10,000 square meters

QA/QC: In House

No. of R&D Staff: 5 - 10 People

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No. of QC Staff: 41 - 50 People

Management Certification: ISO 9000/9001/9004/19011: 2000 ISO

14000/14001

Company Website: www.arzootex.com

HISTORY OF ARZOO TEXTILE MILL

The ARZOO Management Board consists of 6 family members of Late Hajji

Abdul Majeed Sheikh who dominated as a leading businessman from 1930 to
1971 in this region. He started his carrier from Calcutta (India) in 1930 &
managed to expand his export &

import business throughout the World and established offices/ branches in

New York (USA), London (U.K), and Milan (Italy). He extensively traveled all
over the world during the period 1930 to 1970 and dominated in commercial
business.

Mr. Azhar Majeed Sheikh, now the eldest member of the family, had a
dream of an ideal industry to be setup not for the profit only but also to
create job opportunities, contribute to the country's economy and to develop
the sense of welfare for general public. This dream began to execute on the
crutches of Mr. Azhar Majeed Sheikh with the intention of pious contribution
towards the country and the community committed to sound determination.
To make the project viable and successful we made restless efforts. And
today Arzoo is one of the leaders in Printed Fabric and Home Textiles.

Mr. Azhar Majeed Sheikh, the Chairman & Head of the family, has formed
company under the name & style Arzoo International (Pvt.) Limited in 1983
with the objective to enter into Textile business with manufacturing backup
of cloth weaving machines. In 1992, Mr. Azhar thought of manufacturing &
marketing value added items such as bed linen made-up and garments so
Arzoo Textile Mills Limited came into existence of the Arzoo who are now one
of the few exporters having a turn over of more the US$ 70 million.

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Arzoo is striving hard to maintain a position in the international home textile
market. Over the years, the Arzoo has responded to the varied demands of
the export market. Today, the uncompromisingly high standards in style,
fashion and quality control, use of modern production and packaging
technology are proof of this determination to compete in the world market
share of different segments in the growing sales of the company is given in
the table below:

HIERARCHY OF ORGANIZATION

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 STRATEGIC PATH SO FAR

At the starting stage Arzoo textile only focused on market penetration so

that more and more people know about Arzoo textile but with the passage of
time it choose different types of strategies to keep itself alive and cope-up
with dynamic environment and the competitors.

The strategic path followed by Arzoo textile so far is as follows:

INTEGRATION STRATEGIES

From this type of strategy Arzoo adopted two ways:

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 • Forward integration

It means Arzoo textile gets control over its distributors because it has
its own fair price shop.

• Backward integration

Arzoo textile also adopted the strategy of backward integration. Which

means Arzoo gets the control over its suppliers because of the
following reasons.

i. Maintain quality

ii. Delivery time

iii. Price fluctuation

iv. Independency

INTENSIVE STRATEGIES:

Arzoo textile adopted product and market development strategies because it

exports the products to different countries according to the demands of
customers.

DIVERSIFICATION STRATEGIES
From diversification strategies Arzoo textile only focuses on related
diversification because it also manufactures/produces kitchen products like
tea cozies etc.

EVALUATION OF VISION & STRATEGIES

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The vision of Arzoo textile describes that it want to work in modern and
dynamic environment and at the same time fulfill the demands of customers
in an efficient way that create value for Arzoo. According to this point of
view, the strategies adopted by Arzoo are matched with the vision of Arzoo.

• Arzoo is working in the right direction for the achievement of

objectives/goals which are set.

• There is perfect alignment between the vision and the Strategies

adopted by the Arzoo.

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 INTRODUCTION TO HR DEPARTMENT

The department of Human resource in Arzoo textile mill was established in

2003 which take control over the working and managing of employees.HR
department of Arzoo performed many functions which include:

• The motivation of employees.

• Recruitment and selection of potential workers.

• Trainings and development courses within the organization.

• The department also help the textile mill in providing the benefits and
allowances to employees.

HIERARCHY OF HR DEPARTMENT

CHIEF EXECUTIVE OFFICER

GERNAL MANAGER

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 DEPUTY GERNAL MANAGER

MANAGER

ASST. MANAGER

HUMAN RESOURCE OFFICER

SUPERVISORS

FUNCTIONS & ITS RELATION TO WHOLE STRATEGIC

SETUP

With the HRM point of view, the company performs the four functions:

• Staffing

• Training & development

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 • Motivation

• Maintenance

1.Staffing
Staffing is the first function which the Arzoo textile performs. In
staffing Arzoo searches the competent employees.
Staffing has further 3 sub functions:

• HR Planning
A process by which the Arzoo’s managers insures that they have right
number of people in the right place at the right time.

• Recruitment
In this step Arzoo identifying the capable applicants.

• Selection
In this step Arzoo select the best one applicant.

• Training & development

Arzoo textile only focuses on:

• Orientation
• Training issue
• Development issue
But not on career development because extra resources are utilized on
career development.

• Motivation & maintenance

Arzoo textiles evaluate the performance of the employees and then motivate
the employees for the achievement of motivation of goals.

RELATION TO WHOLE STRATEGIC SETUP

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HR department align the HR functions with the strategies by seeking the
assistance from chairman & managers of different departments.

ROLE OF HUMAN RESOURCE

The following are the key roles of HR.

• Supporting management by developing center policies.

• Evaluating staff through retraining.

• Providing guidance to committee, investigating complaints related

to employees.

• Assisting management in establishing avenues of assistance at all

duty stations.

DEVELOPMENTS

The role of HR manager must parallel the needs of his or her changing
organization.
Successful organizations are becoming more adaptable, resilient, quick to
change direction & customer centered.
So these are the important elements which the Arzoo textile covers &
provide the satisfactory products to the customers & made its position in the
market.

FUTURE PLANS

The future plans of HR of Arzoo textile includes the following roles which it
want to become in the future.
• Business & strategic partner

Although HR us the part of strategy making but it want to take keen interest
in strategy making & gets all the information that will help in the strategy
making.

• Employee advocate

The HR manager wishes to provide employee empowerment, employee

development opportunities, employee assistance programs, gain sharing
& profit sharing strategies, organizational development, interventions &
regularly scheduled communication opportunities.

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 • Change champion

The HR manager wants to become change champion which means the

constant evaluation of effectiveness of the organizational results in the need
of the HR professional to frequently champion change.

Both knowledge & ability to execute successful change strategies make the
HR professionals exceptionally valued.

Knowing how to link change to the strategic needs of the organization will
minimize employee dissatisfaction and resistance to change.

HR AS PLANNING PARTNER

In Arzoo textile mill hr works as partner in planning process and in

implementation of strategy. The whole organization depends on labor and hr
is only department that control and manage the labor. Hr also help the
others departments. In making the policies and in maintaining the database.
Arzoo hr department keeps the records of whole organizations and
employees so it’s easy for organization to control each department and
make planning. When strategies are made hr managers will review the
strategy and plans hr can also modify the strategy process. Hr manager can
also analyze the report presented by financial, marketing and operational
managers. Its not only helps the organization in hiring the best employees
but also helps the organization in solving major problems like employees
dispute.

HR Demand
The process is the calculation of organization’s requirement or demand for
human resource.
Starting of winter season is peak season of Arzoo textile mill to recruit the
employees so the demand of hr is very high at that time. In Arzoo textile mill
two types of employees are working;
• Permanent
• Contractual
The number of permanent employees are 6200 and number of contractual
employees are 14215 while 6000 are wage employees. But in Arzoo textile
the demand for contractual employees are more then permanent employees
because of following reasons;
• Cost saving
• Less benefit /rewards are given to contractual employees
• More ideas are generated as the fresh blood enters the organization
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 • No stock piling
HR Supply

Arzoo is fulfilling both internal as well as external supply, in peaks season i.e.
start of winter season ,supply of employees are more required. Arzoo textile
preferred to hire the employees internally but in time of need they also hire
employees externally.

HR Forecasting

HR forecasting means to forecast the demand and supply of human resource

now and in future.
In Arzoo textile mill there is no proper system available for forecasting but
HR department give the authority to all department of organization to
forecast their demand according to their requirements. After forecasting all
department inform the HR department that how many employees are
needed, then all the department provide the strength list to HR department.
Forecasting take place on current basis due to dynamic environment which
means long term forecasting is not their main focus.

HRMS, HRIS

Human Resource Information System (HRIS) is a software or online solution

for the data entry, data tracking, and data information needs of the Human
Resources, payroll, management, and accounting functions within a
business.

Arzoo textile implemented the information system in 2003 in the

organization, now they have complete data base system in the organization.
The Human Resource Information Systems (HRIS) helps the Arzoo in:

• Management of all employee information.

• Reporting and analysis of employee information.
• Company-related documents.
• Benefits administration including enrollment, status changes, and
personal information updating.
• Complete integration with payroll and other company financial
software and accounting systems.
• Applicant and resume management.
• Attendance of employees
• Pay raises and history,
• Pay grades and positions held,
• Performance development plans,
• Training received,
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 • Disciplinary action received,
• Personal employee information, and occasionally,
• Management and key employee succession plans,
• High potential employee identification, and
• Applicant tracking, interviewing, and selection.

The effective HRIS of Arzoo textile provides information on just about

anything the company needs to track and analyze about employees, former
employees, and applicants.

Before the implementation of this system in Arzoo textile mill, the record
keeping, salary making, etc was the duty of senior personal manager.

Historical Data Related to Demand & Supply

Arzoo textile seldom forecast the changes in workforce. HR department must

look at those factors that can either increase or decrease its employee base.
But sometimes they try to estimate the retirements, voluntary quits, and
some advance notice of one’s retirement intent. So that, they can fulfill their
demand of workers especially in those days when load of work is high in mill,
like in the start of winter season. For normal demand, they fulfill the
requirements by internal workers but in peak days, they hire workers outside
the organization to meet the seasonal needs of mill on contract bases.

Turnover Rate

Arzoo textile industry is facing high turnover rate, and this trend is high in
almost every industry due to;

• Economic recession
• High inflation
• Sometimes organizations want to cut their cost by reducing employees
• Less loyalty in employees

Due to high turnover Rate Company faces many problems like;

• Loss of money
• Wastage of time
• Hurdles in the operations of tasks
• Uncertainty

Prediction for Future Shape of HR, HC:

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Human capital refers to the stock of competences, knowledge and
personality attributes embodied in the ability to perform labor so as to
produce economic value. It is the attributes gained by a worker through
education and experience.

Arzoo textile is enriched with HC; it has skilled, experienced, knowledgeable

workers and always tries to manage them.
Human Capital Management helps the Arzoo textile to analyze workforce
strengths and vulnerabilities, while surfacing opportunities and strategies
that allow business to proactively manage human capital. By having a
holistic view of the work force, the mill finds the solutions of their problems
and accurate answers needed for strategic decision making. The company
also makes estimation that how much Human Capital is available in the
company and how much is required in future needs. This knowledge helps
the company while they make strategies and decisions.

Efficient and effective management of "Human Capital" has progressed to an

increasingly imperative and complex process. The HR function consists of
tracking existing employee data which traditionally includes personal
histories, skills, capabilities, accomplishments and salary. To reduce the
manual workload of these administrative activities, organizations began to
electronically automate many of these processes by introducing specialized
Human Resource Management Systems. HR department of Arzoo textile rely
on internal IT professionals to develop and maintain an integrated HRMS.

Benefits

• Measure and improve workforce productivity.

• Minimize risk by changing likely outcomes.
• Proactively plan for future workforce needs.

Succession Planning

Succession planning module facilitates efficient career planning and

streamlines the decision-making process. This is achieved by blending
individual aspirations with the organization’s view of those individuals,
thereby minimizing the potential of making incorrect assumptions about
career moves. This module leads a firm through every step of career and
succession planning and tracks information about candidates' levels of
potential, performance over time as well as retention risk.
Arzoo textile is involved very little in succession planning; mill does it only
for higher posts. Normally they do not do this. The method through
which they fill the vacant seats is that; if a person leaves the job without
any notice or with notice. They normally sort his duties to some other
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person for 6 to 10 days, in this period they hire a person externally for that
vacant job.

Organizational considerations for job design

• Effectiveness

In the context of job design, to remain effective, organization may

have to redefine jobs, monitoring, and using technology so that the
firm can even compete against giant rivals.

• Efficiency

Maximum outputs through minimum inputs of time, effort and other

resources. In the context of job design, efficiency in time, effort, labor
costs, and training should be done accordingly.
• Job analysis

Job analysis is the procedure for determining the duties and skill
requirement of a job and the kind of person who should be hired for it.
The supervisor or HR specialist of Arzoo textile normally collects one of
the following types of information:

• Work activities:

First they collect information about the job actual work activities such
as marketing, production, etc. This list also include how, why and when
the worker performance each activity.
• Education and qualification:

Collects the information about education background and qualification

• Experience:

On experience, Arzoo textile gives emphasis for any job. But it is not
compulsory for entering level jobs.

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Recruitment process in Arzoo textile Mill:

Recruitment is the process through which the organization seeks applicants

for potential employment.

Source of recruitment:

There are two kinds of source Arzoo uses for recruitment .They are

1. External source
2. Internal source.

1. Internal source:

Arzoo thinks that current employees are a major source of recruits for all but
entry-level positions. Whether for promotions or for ‘Lateral’ job transfers,
internal candidates already know the informal organization and have
detailed information about its formal policies and procedures. Promotions
and transfer are typically decided with little involvement by HR department.
• HR department become involved when internal job openings are
publicized to employees. HR department of Arzoo textile helps the
organization to find appropriate person for vacant seat.

2. External source:

When job opening cannot be filled internally, the HR department of Arzoo

textile must look outside the organization for applicants. The external source
of recruitment at bellow:

2.1 Unsolicited Applicants:

Unsolicited applicants means those people who reach the HR department of

Arzoo in search of a job whether by letters, e-mail, telephone or in person.
People drop their CVs and applications in Arzoo. Usable applications and CVs
are kept in an active file until a suitable opening occurs.

2.2 Employee referrals:

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Employees may refer job seekers to the HR department of Arzoo .Employee
referrals have several advantages .Employees with hard –to –find job skill
may no others who do the same work. Employee’s referrals are excellent
and legal recruitment technique.

2.3 Advertising:

Arzoo textile also uses print media for advertisements of jobs. Want ads
describe the job and the benefits, identify the employer, and tell those who
are interested how to apply .They are most familiar form of employment
advertising .For highly specialist requites, ads may be placed in Jhang and
Dawn newspaper.

Selection process in Arzoo

Arzoo employs a strategic recruitment and selection process to ensure that

they have the right people in the right jobs, to help them achieve their
mission and their strategic direction. Their selection process is summarized
below.

Testing:

For certain positions like for IT posts, short listed candidates are scheduled
for testing

Interviews:

Candidates, who have successfully completed testing, if required, are invited

to attend an interview before the panel (G.M, 4 to 5 directors, experts and
HR manager). Interviews are predominantly behavioral-based, meaning that
candidates are asked to draw on their specific experiences in responding to
questions pertaining to the job.

References:

During the selection process, candidates are asked to provide employment

references. References will be checked for those candidates who are still
being considered at this stage of the selection process.

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 OUTCOMES OF STUDY

The Visit to Arzoo textile mill helped us to look at the new side of working of
HR department. We came to that there is lot of difference between the
procedures we studied theoretically and the procedures followed practically
by the Mill workers.

It enhanced our knowledge about the working methodology of

manufacturing organization. The team work and the discipline we observe
their revealed that the HR department of any organization play a very
important role to manage the human efficiency and motivation level

We further observed that all the stages of production i.e. from supply of raw
material to the formation of finished goods are handled by the Arzoo textile
mill on its own which help them to maintain the quality of their product at all
stages.

ROLE OF HR AND HR DEPARTMENT TO SUCCESS AND

FAILURE OF ORGANIZATION
• HR plays a vital role in the working of whole organization without their
active participation the other department cannot achieve their goals as
it support the other department e.g.

• Provide training to workers according to their needs

• Responsible for the appropriate supply of the workers

• It helps to manage and control the cost of the organization for example
if Finance department wants to reduce their cost it help out by
providing low cost labor

• Help the other department as well.

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 • All these points’ leads to success of organization and as result the
organization furnish more and more

CONCLUSION
Arzoo textile mill is one of the leading manufacturing mills in Pakistan. The
system, the management style, the policies & decision making environment
is really remarkable. This report is basically an attempt to identify the areas
which need to be improved.

In this era of technology, the “Information” is the key to success in the

business. This means that the successful businessman will be one who will
have the right information at the right time. This comment leads to the
conclusion that the Information Sharing Process should really be improved.

The overall analysis is indicating that the company’s progress has mainly
attained through dedication of employees. The effectiveness of its
management, their willingness to take advantage of opportunities and face
challenges of changing economic picture, this all contributes to the very
much improved and sound position of company. This is really appreciable for
the devotion and hard work of all the employees of the company.

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SUGGESTIONS

Recommendations for improvement are:

• Proper succession planning should be conducted; replacements chart

should be made so that if any vacancy prevails in organization there
will be back end to fulfill that need in urgent manner,
• As the turnover rate is high this affects the working condition of an
organization so efforts should be made to reduce the annual turnover.
• As mentioned above the problem of forecasting exists in Arzoo textile
mill, no system is available which measures the current demand and
supply, the mill does not forecast their need due to which the
disturbance occurs in human resource
• Arzoo textile mill should more focus over external supply of HR as they
can generate more new ideas, fresh blood should be introduced to
organization not only in peak season but throughout the year
• Special incentives should also be given to Head on Eid and on other
special days should be given to the workers.
• Different training courses should be arranged for the up lifting and
improving the quality of work for employees.

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