History of Refrigerator In 1748 Dr.William Cullen did first experiment in artificial refrigeration.

. In the early 1800s, Michael Faraday discovered the liquefying ammonia gaswhich causes cooling. IN 1804, Oliver Evans, and American design the first refrigeration machine. In 1834, Jacob Perkins, an American invented the refrigerator in London. In 1844, an American physician, Oliver Evinces built a refrigerator to make ice tocool the air. In 1874, Raoul Picked of Switzerland, invented a a compres sor system usingsulfur dioxide instead of ammonia. In 1876, German engineer, Carl Von Linden made the process of liquefying gas, basic refrigerator technology. In 1915 Alfred Mellows starts to build first self -container refrigerator for homeuse. In 1920 there were some 200 different refrigerators in the market. In 1922 Baltzar Von Platen and Carl Munters introduce absorption p r o c e s s refrigerator. Refrigerator from the late 1800s until 1929 used the toxic gases , a m m o n i a , methyl chloride and Sulpher dioxide as refrigerant. In 1931 the first air cooled refrigerator launched by Electrolux. In 1947 GE launched two door refrigerators freezer combination. In 1955 80% of American homes now have refrigerators. Through out the 1960s to 1970s house hold refrigerators were improved to better suit consumers. According to the history channel, today refrigerators are more energy efficient With the advancement of technology from this era to current era ,now, there isquick change in the styles and quality. Timeline of Air Conditioning Events Here is a timeline of historical facts about the development of the air-conditioningindustry you may find interesting and help you appreciate the impact this importantindustry has on our lives. 1882

-- Thanks to Thomas Edison, the first electric power plant opens in New York,making it possible for the first time to have an inexpensive source of energy for residential and commercial buildings. 1889 -- Central station refrigeration is used in large cities to preserve foods anddocuments. 1902 -- Willis Carrier builds the first air conditioner to combat humidity inside a printingcompany. Controlling the humidity in printing companies and textile mills was the startof managing the inside environments. 1906 -- Willis Carrier patents his invention calling it an "Apparatus for Treating Air." 1906 -- Stuart W. Cramer coins the term "Air Conditioning." 1913 -- The first international exposition devoted exclusively to refrigeration is held inChicago. 1917 -- The first documented theater to use refrigeration is the New Empire Theatre inMontgomery, Alabama. In that same year, the Central Park Theater in Chicago is built toincorporate the new technology: air conditioning. 1928 -- The Chamber of the House of Representatives is air conditioned. 1929 -- The Senate is air conditioned. 1930 -- The White House, the Executive Office Building, and the Department of Commerce are air-conditioned. 1942 -- The Potomac Electric Power Company (PEPCO) becomes the nation's firstsummer peaking utility. 1946 -- After World War II, the demand for room air-conditioners begins to increase.Thirty thousand room air-conditioners were produced that year. 1947 -- Air conditioning becomes a bargaining issue when textile workers in NorthCarolina strike because of stressful heat and humidity in the workplace. 1950 -- A major study shows that families living in air conditioned homes sleep longer insummer, enjoy their food more, and have more leisure time. 1953 -- Room air conditioner sales exceed one million units with demand still exceedingsupply. 1953 The air conditioning and refrigeration institute is formed from two associations:the Refrigeration Equipment Manufacturers Association and the Air-Conditioning andRefrigerating Machinery Association. 1955 -- Mass marketing of frozen dinners begins: ads promote "TV dinners." 1957 -- The first rotary compressor was introduced, permitting units to be smaller,quieter, weigh less, and more efficient than the reciprocating type.

1969 -- Neil Armstrong and Buzz Aldrin walk on the moon in spaces suits with lifesupport and cooling systems. 1977 -- New technology allows heat pumps to operate at lower outdoor temperatureswhile heating on the reversed refrigeration cycle. 1987 -- The United Nations' Montreal Protocol for protection of the earth's ozone layer issigned. The Protocol establishes international cooperation on the phase-out of stratospheric ozone depleting substances, including the chlorofluorocarbon (CFC)refrigerants used in some refrigeration and air conditioning equipment. 1990 -- ARI, in conjunction with the U.S. Department of Energy, initiates the MaterialsCompatibility Lubricants Research (MCLR) program, which helps manufacturers to21 accelerate away from CFC refrigerants. 1992 -- The R-22 Alternative Refrigeration Evaluation Program (AREP) begins a four-year program to investigate alternatives to R-502 and HCFC-22. 1995 -- Chlorofluorocarbon (CFC) production in the United States ends December 31. 1997 -- North American Technician Excellence (NATE) formed to promote excellence intechnicians who install and service air-conditioning and refrigeration equipment. The NATE-certified logo is synonymous with "The Best." 1998 Research for the 21 st centaury a multi-year, million-dollar research program for air-conditioning and refrigeration equipment, begins. The objective is to decrease building energy usage while improving indoor air quality. 1998 -- Shipments of unitary air conditioners and heat pumps set a record of more than6.2 million units. 1998 -- After receiving five annual awards from the U.S envoi mental protection agencyfor contributions to environmental protection, ARI was awarded a Best of the Best awardfor continued environmental concern.

ISO 9001 Certification

PEL was 16th Company in Pakistan which got ISO 9002 Certification in 1997, since then PEL Management is applying this International Standard Practices for Effectively Managing Quality of Products and Services that Company Offers. The International Standard Practices in PEL have been Upgraded as per the Revised ISO 9001 Standards and its Scope of Application is expanding ever since and Top Management is Committed to make PEL a Total Quality Management (TQM) Company. In our Company Quality is the Subject of Management at all Levels. We focus on continuous improvement in our Systems thus establishing Good Management Practices, we are committed to and making continuous efforts in developing and strengthening our internal and external customers and suppliers. Employees training & development and their participation are the KEY forces which are increasing our Organizations Capabilities thus making it more competitive and fast growing Company. Top management is not only tremendously improving our Working Environment but also investing in Improving internal Communication Network for better Teamwork. Continuous Up-gradation in production facility/equipment in the pursuit of State-of-the-art production technology reflects management Vision and commitment for Quality. Over fifty years of manufacturing experience with cooperative and dedicated employees coupled with performance based system and Data Analysis enable management to take Preventive Actions before things really go wrong. One of the Mission of organization to promote good governance and corporate values with a strong sense of social responsibility. We are grateful to ALLAH ALMIGHTY, for enabling us to fulfill this tiring, but interesting job for the completion of our report. The present project is submitted to Mr.Col.Sohail Akram ( R ). We express our deep sense of indebtedness to him for his invaluable advice and encouragement and for giving us very useful information that helped us a lot in completing this project. We also want to pay a bundle of thanks to each and every person how has put indeed effort to make this project possible. It is also our duty to pay thanks to our parents for the moral and financial support. Last but not least we also feel please to thanks to the whole management of Pak Elektron Limitted

(PEL) in general for their cooperation in the formulating of this project.

All Group Members Dedications We dedicate this project to our Parents, Teacher and Mr. M YOUNAS who help us to complete this project and finally to each group member. Because; What ever we are its because of our parents. Our teacher makes us able to face different challenges and win those challenges. Last but not least group members, who support us a lot and contribute t heir full effort to make this project possible. Vision To excel in providing engineering goods and services through continuous improvement. Mission Statement To provide quality products & services to the complete satisfaction of our customers and maximize returns for all stakeholders through optimal use of resources To focus on personal development of our Human Resource to meet future challenges To promote good governance, corporate values and a safe working environment with a strong sense of social responsibility PEL (Pak Elektron Limited) PEL (Pak Elektron Limited): Pak Elektron Limited (PEL) is the pioneer manufacturer of electrical goods in Pakistan. It was established in 1956 in technical collaboration with M/s AEG of Germany. In October 1978, the company was taken over by Saigol Group of Companies. Since its inception, the company has always been contributing towards the advancement and development of the engineering sector in Pakistan by introducing a range of quality electrical equipments and home appliances and by producing hundreds of engineers, skilled workers and technicians through its apprenticeship schemes and training programs. The PEL comprises two divisions: Appliances Division Power Division . APPLIANCES DIVISION PELs Appliances Division is the flag carrier of the Saigol Group. This Division of PEL consists of appliances manufacturing. PEL Air Conditioners : Winner of Consumer Choice Award PEL window-type air conditioners were introduced in 1981 in technical collaboration with General Corporation of Japan. Ever since their launch, PEL air conditioners have a leading position in the market. PEL air conditioners cooling performance has been tested and approved by Copeland and ITS USA. With the shift of users preference from window type to split type air conditioners, PEL

has started manufacturing split type air conditioners. PEL Refrigerators The manufacturing of refrigerators started in 1986-87 in technical collaboration with M/s IARSILTAL of Italy. Like the air conditioner, PELs refrigerators are also in great demand. Today, PEL Crystal has 30% market share. Its cooling performance is tested and approved by Danfoss, Germany and its manufacturing facility is ISO 9002 certified by SGS Switzerland. PEL Deep Freezers PEL deep freezers were introduced in 1987 in technical collaboration with M/s Ariston of Italy. Because of durability and high quality, PEL deep freezers are the preferred choice of companies like Unilever. POWER DIVISION PEL Power Division manufactures energy meters, transformers, switchgears, Kiosks, compact stations, shunt capacitor banks etc. All these electrical goods are manufactured under strict quality control and in accordance with international standards. PEL is one of the major electrical equipment suppliers to Water and Power Development Authority (WAPDA) and Karachi Electrical Supply Corporation (KESC), which are the largest power utilities in Pakistan. Over the years, PEL electrical equipment has been used in numerous power projects of national importance within Pakistan. PEL has the privilege of getting its equipment approved and certified by well-reputed international consultants such as: Preece, Cardew and Rider, England Harza Engineering Company, USA Snam Progeti, Italy Societe Dumezm, France Miner & Miner International Inc. USA Ensa, France In spite of stiff competition from emerging local and multinational brands, PEL Groups appliances and electrical equipments have remained in the spotlight due to constant innovation. Strategic partnership with multinationals of repute have enabled the PEL Group to incorporate new technologies into existing product ranges, thus giving the Pakistani market access to innovative, affordable and quality products. In1981, PEL window type air conditioners were introduced, in technical collaboration with General Corporation of Japan. Today, PEL air conditioners hold approximately 45% market share. In 1986-87, the company started manufacturing in technical collaboration with M/S IARSILAT of Italy and PEL deep freezers were introduced. In1993, with technical collaboration of NECCHI of Italy, the company started assembly and manufacturing of compressors for refrigerators and deep freezers. Group Profile History : In 1948, the Saigols migrated from Calcutta and initiated their business in Lyallpur (later named to

as Faisalabad), the textile city of Pakistan, under the banner of Kohinoor Industries Limited. Kohinoor Textile Mills : The Saigols set up the first major textile unit The Kohinoor Textile Mills under the umbrella of Kohinoor Industries Limited. The Kohinoor Textile Mill has state-of-the-art quality control from raw material to finished product manufacturing. Its laboratory is top rated amongst the best laboratories in Pakistan for testing of textile raw materials, other inputs and yarn. Initial Capacity : 25,000 spindles Current Capacity : 71,648 spindles Pak Elektron Limited (PEL) : In 1978, the Saigol Group of Companies purchased major shares of Pak Elektron Limited. At that juncture, the company was only manufacturing transformers and switchgears. With the Saigols in management, PEL started expanding its product range by entering into Air Conditioner manufacturing. The PEL Group comprises two divisions Appliances Division Power Division Appliances Division PELs Appliances Division is the flag carrier of the Saigol Group. This Division of PEL consists of home appliances manufacturing. In 1981, PEL window type air conditioners were introduced in technical collaboration with General Corporation of Japan. In 1986-87, the company started manufacturing of refrigerators in technical collaboration with M/s IAR-SILTAL of Italy. In 1987, PEL deep freezers were also introduced in technical collaboration with M/s Ariston of Italy. In 2006, the Company has started manufacturing of split type air conditioners of various capacities as the customer choice has shifted from window type to split type air conditioners. The product has received good response from the market, which encourages the company to multiply its production in the coming years. Today, PEL has become a household name. Its products are not only in great demand in the local market but the Company has also started exporting its appliances to foreign markets. Power Division PEL Power Division is one of the major electrical equipment suppliers to WAPDA & KESC. Since 1956 the company manufactures transformers, energy meters, switchgears, kiosks, compact stations and shunt capacitor banks. PEL also has had the privilege of getting its equipment approved and certified from well-reputed international consultants such as: Preece, Cardew and Rider, England Harza Engineering Company, USA Snam Progeti, Italy Societe Dumezm, France Miner & Miner International Inc. USA Ensa, France Pak Elektron Limited alone has a turnover of over 180 million US Dollars. Saritow Spinning Mills & Azam Textile Mills

In 1987, the Saritow Spinning Mills and Azam Textile Mills were established under the banner of Saigol Group of Companies. Saritow Spinning Mills is a spinning unit with 25,440 spindles capacity. Facilitated with the most modern andefficient Japanese and European machinery, its knitted yarn is renowned in the Far East and Europe for its fine quality. Azam Textile Mills is reputed for its carded and combed yarn, which is quite popular for premier knitting and weaving. Kohinoor Power Company Limited In 1991, the first power unit commissioned in Pakistan, in the Private sector, was Kohinoor Power Company Limited. Its present production capacity is 15 MW. Kohinoor Energy Limited 1995, another power unit, Kohinoor Energy Limited, was established. Kohinoor Power Limited is a 120 MW power plant located on the outskirts of the city of Lahore. This project has an annual turnover of $80 million PELS ORGANIZATIONAL STRUCTURE PELS is mainly consisted of seven departments i.e. Finance, Marketing, HR, Import & Export, Information technology, Administration and Accounts Department. These departments play an important role in the success of the organization, due to the fact that the coordination between these departments is excellent. HIERARECHY OF PEL CEO is the main controller of the whole organization. Heads of all departments directly reports to CEO. These people are mainly involved in policy creation of the company. All the major operations of the company go under the review of these departmental heads. FINANCE DEPARTMENT MARKETING DEPARTMENT HR DEPARTMENT IMPORT&EXPORT DEPARTMENT I.T DEPARTMENT ADMIN DEPARTMENT ACCOUNTS DEPARTMENT Company Information BOARD OF DIRECTORS Mr. Naseem Saigol (Chairman/Chief Executive) Mr. Azam Saigol Mr. Murad Saigol Mr. Muhammad Rafi Khan Mr. Haroon Ahmad Khan (Managing Director) Mr. Homaeer Waheed Mr. Gul Nawaz (NIT Nominee) Mr. Masood Karim Sheikh (NBP Nominee U/S 182 of the Ordinance) Mr. Tajammal H. Bokharee (NBP Nominee U/S 182 of the Ordinance) Mr. Wajahat A. Baqai (NBP Nominee U/S 182 of the Ordinance)

AUDIT COMMITTEE Mr. M. Azam Saigol (Chairman/Member) Mr. Haroon A. Khan (Member) Mr. Tajammal H. Bokharee (Member) Mr. Gul Nawaz (Member) COMPANY SECRETARY Sheikh Muhammad Shakeel FCA CHIEF FINANCIAL OFFICER Syed Manzar Hasan FCA AUDITORS M/s Yousaf Adil Saleem & Co. Chartered Accountants LEGAL ADVISORS M/s Hassan & Hassan Advocates BANKERS Bank of Punjab Bank Alfalah Limited Faysal Bank Limited National Bank of Pakistan NDLC-IFIC Bank Limited PICIC Commercial Bank Limited Saudi Pak Commercial Bank Union Bank Limited REGISTERED OFFICE 17-Aziz Avenue, Canal Bank, Gulberg-V, Lahore. Tel: 042-5718274-5, 5717364-5 Fax: 042-5715105 E-mail: shares@saigols.com WORKS 14Km, Ferozepur Road, Lahore Tel: 042-5811951-7 (7 Lines) Website: http://www.pel.com.pk ISO 9001 Certification

PEL was 16th Company in Pakistan which got ISO 9002 Certification in 1997, since then PEL Management is applying this International Standard Practices for Effectively Managing Quality of Products and Services that Company Offers. The International Standard Practices in PEL have been Upgraded as per the Revised ISO 9001 Standards and its Scope of Application is expanding ever since and Top Management is Committed to make PEL a Total Quality Management (TQM) Company. In our Company Quality is the Subject of Management at all Levels. We focus on continuous improvement in our Systems thus establishing Good Management Practices, we are committed to and making continuous efforts in developing and strengthening our internal and external customers and suppliers. Employees training & development and their participation are the KEY forces which are increasing our Organizations Capabilities thus making it more competitive and fast growing Company. Top management is not only tremendously improving our Working Environment but also investing in Improving internal Communication Network for better Teamwork. Continuous Up-gradation in production facility/equipment in the pursuit of State-of-the-art production technology reflects management Vision and commitment for Quality. Over fifty years of manufacturing experience with cooperative and dedicated employees coupled with performance based system and Data Analysis enable management to take Preventive Actions before things really go wrong. One of the Mission of organization to promote good governance and corporate values with a strong sense of social responsibility. EPC Contracting Power Projects PD is a new addition to PEL with a purpose to establish a national source of catering specialized jobs of execution of turnkey and EPC electrical projects. At an age of just three years, Power Projects PD has recognized its presence in the market by undertaking 132kV substations and industrial and residential societies electrifications turnkey projects against multinational companies. Pakistan Engineering Council has granted it licence in C-1 (No limit) category. PEL, a strong base of manufacturing of power transformer, distribution transformers, MV/LV switchgears, energy meters, control and relay panels give confidence Power Projects PD to install these equipment for its projects. In addition, it has established technical association with GANZ, (Hungry), SEL (USA) and RMS (Australia). Activities Turnkey or customized projects Marketing Proposals/Tendering Primary and secondary engineering Project Management Project Execution Technical support and solution Turnkey Projects Under Execution:

Gujranwala Electric Power Company (GEPCO) 132/11kV AIS Grid Station, Ghuinke, Sialkot Lahore Electric Supply Company (LESCO) 132/11kV GIS Grid Station, Sheranwala Gate, Lahore Islamabad Electric Supply Company (IESCO) 132/11kV AIS Grid Station, PAC Kamra, Attock Islamabad Electric Supply Company (IESCO) 132/11kV GIS Grid Station, DHA Islamabad National University of Science & Technology (NUST), Islamabad External Underground Electrification System Kohinoor City Faisalabad External Underground Electrification System Iqbal Avenue Cooperative Housing Society Lahore External Underground Electrification System House Building Finance Corporation Lahore External Underground Electrification System GM (Projects) North WAPDA External Overhead Electrification System of 4 Towns on Turnkey Basis Mangla Dam Raising Project Projects Completed Islamabad Electric Supply Company (IESCO) 132/11kV AIS Grid Station, Satellite Town Rawalpindi Defense Housing Authority Phase-VI Package I&II 132kV Substation Equipment: Supply of MV switchgear Askri Villas (Phase-I) Lahore Cantt. External Underground System on Turnkey Basis Margalla View Housing Scheme D-17 Zone-II, Islamabad 132kV Grid station Sangjani: Supply of MV Switchgear Sapna City, Faisalabad Supply of 100KVA & 200KVA Transformers & 11kV Panels EDEN Developers, Lahore 132kV Substation Equipment: Supply of MV Switchgear Provisional Govt. Employees Cooperative Housing Society, Lahore 132kV Substation Equipment: Supply of MV Switchgear Sunder Industrial Estate Supply of 500KVA, 750KVA & 1250KVA Pad Mounted Transformers Ministry of Defense, Rawalpindi 132/11kV, Substation (ext), Details Installation of 10/13 MVA Power Transformer Bay, Complete with 132kV CBs, CTs, DS, Control & Prot. and Auxiliary Equipments M/s Leisure Textiles Pvt. Multan Road Lahore 132/11kV Grid Station Manga Mandi: Supply of MV Switchgear Ali Riasat Steel Industry Lahore 132/11kV Grid Station Shamkey: Installation and Commissioning of MV Switchgear and Cabling

Hattar Textile Mills Ltd., Haripur 132kV Substation Equipment: Supply of MV Switchgear Din Textile Mills, Lahore Substation Equipment: Supply of MV Switchgear Bashir Sons Steel Furnace, Gujranwala 132kV Substation Equipment: Supply of MV Switchgear Faisal Zabih Construction Company 132/11kV Grid station at Bargam, Afghanistan: Supply and Installation of Transformers Ravi Steel Co. Awami Complex Lahore 132/11kV Grid Station: Installation, Testing and Commissioning of Power Transformer, Capacitor Bank and MV switchgear at Steel Melting Furnace & Billet Making Plant to Tooalz Aktau City Kazakhastan Haji Muhammad Aslam Modren Engineering & Re-rolling mills Faisalabad 132/11kV I-10 Substation: Supply of MV Switchgear Sufi Rehman Textile mills Faisalabad 132/11kV Grid station Haveli Bahader Shah, Jhang: Supply of and MV switchgear M/s Madina Steel, Gujranwala 132/11kV Grid Station Hafizabad, Supply of MV switchgear Hashim Sharif Flour Mills, Islamabad Substation Equipment: Supply of MV Switchgear Pakistan Broadcasting Co., Karachi Substation Equipment: Supply of MV Switchgear Hi-Tech Spinning Mills Ltd. 132kV Substation Equipment: Supply of MV Switchgear Awais Qurni Spinning Mills Ltd. 132kV Substation Equipment: Supply of MV Switchgear Medigas Oxygen (Pvt) Ltd. Phool Nagar 220/132kV Grid Station Sarfraz Nagar: Supply of MV Switchgear DAD Works, Rawalpindi 132kV Substation Equipment: Supply of MV Switchgear Husnain Nordic, Lahore 132kV Substation Equipment: Supply of MV Switchgear Punjab Small Industries, Faisalabad 132kV Substation Equipment: Supply of MV Switchgear M/s Lalazar Spinning Mills. G.T Road Sahiwal 132/11kV Grid Station Old Sahiwal: Extension Work of MV Switchgear Builders & Developers (for New Aurega, Lahore 132kV Substation Equipment: Supply of MV Switchgear Wapda Town, Lahore 132kV Substation Equipment: Supply of MV Switchgear ORGANIZATIONAL BEHAVIOR AT PEL IMPORTANCE OF ORGANIZATIONAL BEHAVIOR

Organizational behavior is the new concept. Many organizations are now focusing on this new concept Organizational Behavior. Organizational Behavior is important because it scientifically enhanced the productivity of the employees. It studies the behavior of the employee and tries to change their behavior for the benefit of the organization. A field of study that investigates the impact that individual, groups and structure has on behavior within organization, for the purpose of applying such knowledge toward improving an organizations effectiveness MANAGING WORK FORCE DIVERSITY The concept that organizations are becoming more heterogeneous in terms of gender, race, ethnicity, sexual orientation, and inclusion of other diverse group is called work force diversity. There are number of work force diversities some of them are given below: Disabled Persons Gender Issues Age Factors Temporary Casual Contractors Other Back Word Castes

The same thing is happening at PEL (PVT) Ltd. Employees at PEL (PVT) Ltd belongs to different areas, different values and background55s. For example most of the labor belongs to Sheikhu Pura, ?, where as higher level managers belong to Lahore, Islamabad, Faisalabad and even from America. Therefore it is often difficult to communicate with each other at plant or at higher level meetings. But employees at PEL have over come these communication barriers and they work as the one unit in organization IMPROVING QUALITY AND PRODUCTIVITY (TQM) The concept of TQM was established in 1990s. This concept includes the constant attainment of customers satisfaction through the continuous improvements of all organizational pro cess. The concept of TQM suggests that every employee inn organization feel that he is responsible for all the activities 1. Intense focus on customer 2. concern for continuous improvement 3. improvements in quality of every thing the organization does 4. Accurate measurement 5. Empowerment of employees What is quality management? The same practices can also be seen at PEL (PVT) Ltd. Every employee at PEL (PVT) Ltd feels that he is the responsible for all the organizational functions and therefore he contributes effectively and efficiently. PEL (PVT) Ltd focuses on the continuous improvement in quality and they think that their products are still lacking the perfect quality, this thing always motivate PEL (PVT) Ltd to improve their quality continuously

BUSINESS COMMUNICATION AT PEL COMMUNICATION PROCESS COMMUNICATION Communication is an exchange of facts, ideas, opinions, or emotions, by two or more persons. OR Communication is a purposeful activity through which message are transmitted from one person to another through a language common to both. The process may be written as well as oral. FUNCTIONS OF COMMUNICATION Interpersonal Communication Organizational Communication INTERPERSONAL COMMUNICATION It is a communication between two or more person. This kind of communication is present everywhere and in all types of organization. COMMUNICATION PROCESS at PEL (PVT) LTD Communication process at PEL (PVT) Ltd consists of following components. Message Encoding Channel Decoding Feedback

MESSAGE The message is the idea/ideas the sender wants to communicate to the other party. When we speak, the speech is the message. When we write, the writing is the message. When gesture, the movements of our arms and the expression of our faces are the message. The sender must also keep in mind the party to whom the message is intended to be conveyed, and also the channel to be used. ENCODING The person who sends message initiates the process of communication. The sender must prepare the message of communication in such a way that the receiver receives it with the same spirit and the same meaning as intended by the sender. The message should be drafted in such a way that it achieves the result desired by the sender. CHANNEL It means the way by which the message is communicated. It includes printed words, electronic mail, or sounds. The choice of medium depends upon the relationship between the sender and the receiver. We normally choose oral or written communication.

DECODING The act of understanding the message is known as decoding. The process of translating a message into ideas is called decoding, and the receiver does this. Thus, listener and readers are often regarded as decoding. FEEDBACK It is the response by the receiver of the communication. He may accept or reject the message, but he must not change its meaning. Thus, it is an action or reaction on the part of the receiver in response to the message received by him from the sender. Sender needs feedback in order to determine the success or failure of the communication. METHODS OF INTERPERSONAL COMMUNICATION NON-VERBAL COMMUNICATION Body Language Verbal Intonation Body Language Gestures, facial configuration, and other movements of the body that convey meaning. A person frowning says something different from one whos smiling. Hand motions, facial expression, and other gestures can communicate emotions or temperaments such as aggression, fear, shyness, joy, and anger. Knowing the meaning behind someones body moves and learning how to put forth your best body language can help you personally and professionally. This type of communication is common in PEL (PVT) Ltd. Verbal Intonation An emphasis given to the words of phrases that conveys meaning. A soft, smooth vocal tone conveys interest and creates a different meaning from one that is abrasive and put a strong emphasis on saving the last word. Most of us would view the first intonation as coming from someone sincerely interested in clarifying the students concern, whereas the second suggests that the person is defensive or aggressive . ORGANIZATIONAL COMMUNICATION Organizational communication means communication common in organizational settings. In PEL (PVT) Ltd following type of communication takes place. 1. HORIZONTAL COMMUNICATION This type of communication is used in PEL (PVT) Ltd. This is horizontal form. In this horizontal form of communication, message flows from one department to another department like Mechanical Department communicates with the Electrical Department for the purpose of sharing of information. 2. VERTICAL COMMUNICATION It is a sort of communication takes place from top to bottom within the organization. Let suppose Manager of Marketing Dept. communicates with Associate Manager and Associate Manager

Communicates the matter with Assistant Manager and he communicates with lower level manager and so on. Vertical Communication Diagram at PEL (PVT) Ltd The upward communication flows from downward to upward, from managers at lower level to managers at higher level. Senior managers rely on them for information. Reports on daily basis are given to top level managers of the particular department to inform them of progress towards organizational goals and also about any problem if exists. It keeps management aware of how employees feel about their jobs, their co-workers, and the organization in general. 3. DIAGONAL COMMUNICATION In this communication the member of one department can also convey his message to another department officer. BARRIERS TO EFFECTIVE COMMUNICATION There are some barriers to effective communication, which are given below along with the ways to overcome those barriers. Filtering Emotions Information Overload Language

Filtering The manipulation of information to make it appear more favorable to the receiver. How To Overcome E-mail to communicate organizations reduces filtering. Organizational culture encourages or discourages filtering by the type of behavior. Emotions How a receiver fells when a message is received influences how he or she interprets it. You ll often interpret the same message differently, depending on whether youre happy or upset. Extreme emotions are most likely to hinder effective communication. In such instance, we often disregard our rational and objective thinking processes and substitute emotional judgment. How to Overcome Managers at PEL (PVT) Ltd have overcome it by following steps Its best to avoid reacting to a message when youre upset because youre not likely to be thinking clearly. Information Overload

The information we have to work with exceeds our processing capacity. Some managers at PEL (PVT) Ltd faces huge stress of work load and this thing create problem for the employees and as a result they can not communicate properly. How To Overcome Managers at PEL (PVT) Ltd have overcome it by following steps We have to minimize the overload information. The message should be compact and complete. Language Employees at PEL (PVT) Ltd are belonging to diverse cultures. Their language, age, education and core values are different from one an other. This thing some tomes create language barriers between employees at PEL (PVT) Ltd. How To Overcome Managers at PEL (PVT) Ltd have overcome it by following steps Use simple language Message should be uniform Effective communication is achieved when the message is both received and understood. HUMAN RESOURSES MANAGEMENT AT PEL Organizational behavior studies the human behavior and helps the managers to understand the humans behavior in different situations. Therefore we can say that organizational behavior has the strong link with the Human Resource Management. Therefore we often discuss O.B under the umbrella of Human Resource Management. From now on word, we will discuss O.B as Human Resource Management HUMAN RESOURCE POLICIES and PRACTICIES at PEL, PAKISTAN As a Chinese proverb suggests, If you wish to grow something for a season, grow mangoes. If you wish to grow something for a year grows rice. But, if you wish to grow something for a life time gro w man power. Human Resource Management is the future of organizations all over the world. Without a developed HR system, no country can compete in the global arena, and a country like Pakistan is no different, it needs Human Resource Management for its future growth. Today, therefore in truly world-class corporations the HRM function has assumed a greater significance and plays a comprehensive role in organizational management. In the 1980s and early 1990s the term HRM came into academic horizons and gradually used by the practitioners and researchers worldwide. The last two decades have seen a marked change in HRM particularly in those activities, which involve acquiring, developing motivating and utilizing human resources actively in the business.

HRM is quite often defined as productivity through people. It is considered a scientific process of continuously enabling the employees of an organization both in their individual capacities and as members of groups, both as managers or other ranks, to improve their competence and capability to perform their present as well as future expected roles so that the roles of the organization are achieved more fully and at the same time the needs of the employees are also met to an adequate extent. It is seen as getting the employees in the organization to add value to the organizational processes and to contribute to the organizational development. HRM is very important for future development of a nation, and a future development of a country depends a lot on its Human Resources. The major purpose of HRM is to increase and improve the productive contribution of personnel to the organization in more ethical, social, and administratively responsible way. This purpose emerged from commonly called industrial relations, personnel administration, industrial psychology and personal Management. HRM is not just another personnel management fad. Research shows that its aim is to create a whole organizational culture that binds workers to the companys objectives with full professional commitment, integration, and quality work. The 21st century will bring with it enormous opportunities but also enormous pressure, if the companies will not improve the productivity of the people and treat them human being which are the vital objects of all the economic activities leading towards development. Now there is worldwide consensus on human resource being one of the major means of increasing efficiency, productivity and prosperity of the firm. Usually small businesses (for-profit or nonprofit) have to carry out these activities themselves because they cant yet afford part- or full-time help. However, they should always ensure that employees have and are aware of personnel policies which conform to current regulations. These policies are often in the form of employee manuals, which all employees have. Note that some people distinguish a difference between HRM (a major management activity) and HRD (Human Resource Development, a profession). Those people might include HRM in HRD, explaining that HRD includes the broader range of activities to develop personnel inside of organizations, including, e.g., career development, training, organization development, etc. The main elements we are going to discuss are Recruitment & Selection Training & Development Appraisal Process ORGANOGRAM OF HUMAN RESOURCE DEPARTMENT HUMAN RESOURCE MANAGMENT RECRUITMENT AND SELECTION This section examines current practices and decision-making in recruitment and selection. They are critical elements of effective human resource management. We cannot discuss how recruitment and selection take place without asking why certain techniques are used in preference to others. Within the HRM paradigm, they are not simply mechanisms for filling vacancies. Recruitment and redundancy can be viewed as key push and pull levers for organizational change.

Recruitment and selection allow management to determine and gradually modify the behavioral characteristics and competences of the workforce. The fashion for team working, for example, has focused on people with a preference for working with others as opposed to the individualist stars preferred by recruiters in the 1980s. Attention has switched from rigid lists of skills and abilities to broader-based competences. Once the organizations human resource needs have been determine, they necessarily have to be filled. These staffing activities include the following. Recruiting job candidates Selecting the most appropriate job applicants for the available jobs Both procedures must be done in accordance with Equal Employment opportunity (EEO) guidelines. Recruitment is one of the core activities of any personnel department. Before the personnel department can proceed with the recruitment, two further documents are necessary. Competition for the best graduates requires employers to have a clear idea of what they mean by best. Recruitment needs to send a strong, distinctive message to these people. The Job specification A person specification The line manager should draw these up and it may be necessary for a member of personnel department to assist. Specifying the job and the type of person required is a line management responsibility. RECRUITMENT AND SELECTION PROCESS They start by getting the request by related department. Departments fill the slip named Man Recognition Slip in which they mention all their requirements about employee needed like age, when and why employee require, experienced or fresh employee, insurance and car etc. Then Head of Department (HR) send the slip to chairman and Managing Director. From their approval further procedure start. Potential candidates may come from an internal trawl of the organization, or from the external job market. The latter are reached through channels such as recruitment advertising, employment agencies, professional associations or word of mouth. The approach differs according to the organizations resourcing philosophy: INTERNAL SOURCES Organizations with a strong culture are likely to seek malleable new employees at school-leaving or graduate levels. More senior jobs are filled from the internal job market. Their internal methods include job posting and employee referral programs. JOB POSTING These methods of prominently displaying current job openings extend and open invitation to all employees in the PEL Job posting serve the following purposes Provide opportunity for employee growth and development Provide equal opportunity for advancement to all employees Communicate organization goals and objectives and allow each individual the opportunity to help find a personal fit in the organizations job structure. PROMOTE THE EMPLOYEES WITH IN THE COMPANY

It includes the Personnel replacement charts which the company record is showing present performance and promotion ability of inside candidates for the most important positions. Usually this option is for firms top positions. The management creates a card for each position, showing possible replacements as well as their present performance, promotion potential, and training EXTERNAL SOURCES Companies looking for the right (best fit for the job) person however may rule out internal applicants because they do not match the personnel specification prepared for the job. Equal opportunity demands equal access. This can only be achieved through public and open recruitment. The likelihood of attracting suitable applicants depends on the detail and specificity of the recruitment advertisement or literature. Key factors such as salary, job title, career and travel opportunities obviously influence response rates. But remember that employers do not want to be swamped with large numbers of applications from unsuitable people. PEL does not always produce enough qualified applicants internally so it needs external sources including bringing in people with new ideas. The external method includes media such as newspaper. GIVING ADVERTISEMENT IN NEWS PAPERS The purpose of the ad is to attract those applicants who are suitable for the job. The body of the advertisement contains a brief description of the job, a brief description of the person required, including the essential requirements of the person specification, Followed by the benefits offered and any other attractive features of the job. RECRUITMENT ON INTERNET One of the main recommendations is incorporating a link from the corporate home page directly to the careers section on the companys Web site. Another Best Practices feature is to make information available to candidates about a companys culture and work environment. This personalized assessment for companies helps them to measure their current performance against the standard for online recruiting and presents them with an opportunity to make a marked improvement in interacting with job seekers on the careers sections of their Web sites It is critical that all companies make the most effective use of their corporate career Web sites, to brand their companies with potential candidates, who may also be customers and shareholders. Benchmarking practices against those of the Fortune 500 provides a useful measurement and perhaps motivation to implement best online recruiting practices. A large and fast growing proportion of employers use the Internet as a recruiting tool. PEL recruit electronically through the Internet. They give ad on there web side http://www.Pel.com The company also give add on roozee.Com. EMPLOYEE REFERRAL PROGRAMS Word-of-mouth applicants are likely to stay longer and may be more suitable than recruits obtained by advertising. But word-of-mouth is discriminatory, since it restricts applications to established communities and excludes recently arrived minority groups who have not had time to become part of informal networks.

This method is a low cost per hire way of recruiting, even though the candidates, in many cases, come from outside the organization. This methods is useful for finding applicants in short supply and managerial candidates SELECTION This section looks at the early stages of the selection process often called pre-selection. The recruitment campaign should have attracted a pool of applicants from which selectors can make their choice. If a job analysis has been conducted, the criteria or competences which are deemed necessary have been identified. These may be well defined and focused on experience and skills, as in the right person approach; or general and related to education, intellect and personality for the cultural fit and flexible person models After the candidates have been identified , they must be selected. In PEL common procedures use in selection include Obtaining completed application forms or resume Checking education, background, experience and references Taking Tests & Interviewing the candidates The selection procedure result in a match between a candidates ability and the skills required by the job TESTS PEL test only the external employees not the internal employees, because they have the complete data of internal candidates. Tests provide use full back-up information and are an aid to selection but they cannot entirely replace the interviewer. It tests the candidates only for specific positions not for all the vacancies. INTERVIEW PEL conduct behavioral interviews to screen out the candidates. Behavioral interview is a series of job related questions that focus on how they reacted to actual situations in the past. They also conduct individuals multiple interviews. The HR management conducts the interview. Also the related department conduct interview. Their main purpose for the interviewer to ascertain if the candidate is suitable for the vacancy, and for the candidate to determine whether the job is suitable for him or her. PROBATION PERIOD PURPOSE PEL set probation policy regarding the serving of a probationary period for staff members covered by a collective bargaining agreement who are newly hired. Probation is for newly appointed employees only. RESPONSIBILITY The Head of Department Human resources is to ensure compliance with this policy. DURATION Probation period in PEL is six months for Managers and three months for executive. Probation periods may be extended, with reason, where the employer is not convinced with employee performance to the required standard, and some time if employee do not achieve the desired result the company will terminate the employee.

 Employment Letter is attached Confirmation Letter is attached Letter showing Different Allowances and Benefits is attached. DESCRIPTION OF SOME OF THE BENEFITS All of these benefits, allowances and salary vary proportionately from grade to grade. SALARY STRUCTURE Salary is based upon the market practices. They attract their employees from market pay levels. The basic salary structure is as: Basic salary House rent allowance @ 45% of basic salary Utilities @ 10% of basic salary PROVIDENT FUND Employees contribution @ 10% of basic salary after confirmation of service. The company will also contribute an equal amount for credits to the PF account of the employee. GRATUITY It is one gross salary (last drawn), for each completed year of service, which is payable on leaving the company. MEDICAL OUTPATIENT ALLOWANCE It is per month allowance in addition to the gross salary. But it doesnt form the part of the salary for any other benefits e.g. Provident fund, bonus. LEAVE FARE ASSISTANCE ANNUAL BONUS Bonus on salary is provided annually to the employees. TRAINING & DEVELOPMENT At the organizational level, enterprises need people with appropriate skills, abilities and experience. These qualities can be bought from outside the organization through recruitment, consultancy and subcontracting, or grown by training and developing existing employees. This section focuses on the second approach The process of teaching new employees the basic skills they need to perform their jobs is training. Training might thus means showing a mechanist how to operate his new machine, a new sale person how to sell his firms product or a new supervisor how to interview and appraise employees. Training at PEL Training in PEL. is basically of two types. Training to new employees Training to existing employees

External training Internal training TRAINING TO NEW EMPLOYEES PEL basically has a general induction-training plan for newly employed people INDUCTION TRAIING Induction training is regarded as an important of the overall training policy applying to all personnel joining the Company. Department training over an initial period of one to six months shall follow this. 3 DAYS ORIENTATION PROGRAM THE CONTENTS They basically have three days Orientation program for new employees in which they describe to employees with basic background information about the firm such as: Welcome note from management director Mission, Vision, Values Brief introduction of PEL Company profile Organization Product profile General guidelines o The working hours o Head office o Plant o Canteen mess o Bank account details o Fair price shops o Traveling o Department visit o Meeting with HOD o Colleague And other miscellaneous things GENERAL GUIDELINES WORKING HOURS HEAD OFFICE 08:30 TO 04:30 from Monday to Saturday. They (essential) staff of HR, GS and sales will be on duty for day-to-day matters. Lunch and prayer is 13:00 to 14:00 hours. Attendance currently is to be marked on the attendance sheet maintained by GSD and placed on reception. PLANT Operations at plant rotate clockwise in three shifts. Timings for morning shift are 08:30 to 04:30 from Monday to Saturday. CANTEEN MESS

Facility is available at head office as well as at Factory. At head office expenses are deducted from the salary. At plant expenses are paid directly as well as deducted from the salary. Employees can check their category from the relevant accounts section. BANK ACCOUNT DETAILS Salary is paid through bank to all the company permanent employees as well as contractual staff. HR & Finance departments, regarding opening of account in the designated bank nearest to your residence/ place of appointment is available for coordination. FAIR PRICE SHOPS Company has provided fair price facility to all its employees where company products are available at subsidized prices. Different quantities are allowed to different category of staff on monthly basis. The shops are located at head office, plant, Jhang and Arifwala zones. Timing may vary from season to season or otherwise. TRAVELLING Company allows all its employees the travel facility according to his or her category subject to approval from respective HOD for its business development. See the relevant portion of HR policy pertaining to this section. WHO SUPERVISES THE TRAINING PROGRAM Internal management supervise orientation program. This job has been given to their Manager Training and Development who made the panel of people to supervise orientation according to the nature of job. PROCEDURE OF ORIENTATION According to Managers the new employee has been rotated almost in every department in his orientation so he is able to practically see the things happening in the organization. It helps reduce the new employees jitters and the Reality shock he or he/ she might otherwise experience (the discrepancy between what the new employee expected form his or her new job, and the realities of it) DEPARTMENTAL TRAINING After induction training the employee has been shifted to the department he was employed for, to go through departmental training and the training of other relevant departments whom he has to interact in his day-to-day activities. This basically is the start of his probation period. ON THE JOB TRAINING PEL always prefer to give On the job training to the new employees because they think that on the job training is the best way to make employees learn the skills required to perform different tasks TRAINING OF EXISTING EMPLOYEES ANALYSIS OF ORGANIZATIONAL TRAINING NEEDS INTRODUCTION Analysis of organizational training needs (AOTN) is a process of taking an over view of the performance of the organization. Its purpose is to identify where training can make major contribution to improve organizational performance. It sets out the answer of the following questions about the way the organization is functioning now and is expecting to function in future:

What? When? Where? Why? Who? How?

In asking and answering these questions the process will allow issues and problems, which the organizations currently face to be identified. Important issues need a planned response and the cases of problem need to be established and possible solution identified. Training is one possible response and should be selected only when it is most appropriate. AOTN also allows potential further problems to be identified and appropriate action to be taken before a problem develops. The process of conducting an AOTN will allow decision to be made, on the basis of evidence, about where training will offer the best investment. It will strengthen for funding training and allow priorities between training need to be established. It will also provide information upon which to judge whether resources currently employed in training to be used more effectively. AOTN requires the collection, interpretations and analysis of information from across the to-day contact with the various activities need to be sought, compared, interpreted and use. Training needs eventually have to be dealt with at individual level. The question that needs to be asked is whether this person performance is satisfactory. If the answer is NO then come form of training may be considered. If the answer is YES then training for the development may be worthwhile for those with potential. This is usually the responsibility of line manager who sets the performance required and judges whether it has been achieved. A training gap can be set to exist if the performance deficiency is due to lack of knowledge and skill. The limitation of this individual approach is that it can result in demands for training fro every employee. These demands may be for training to improve current performance or develop the potential of the individual. IDENTIFYING THE TRAINING GAP PERFORAMNANCE APPRAISAL Performance appraisal is a process for establishing shared understanding about what is to be achieved, and an approach to managing and developing people in a way which increases the probability that it will be achieved in the short and long term. The purpose of performance appraisal is to improve the organizations performance through the enhanced performance of individuals. The main objectives of performance appraisal are: To To To To To To review past performance asses training needs help develop individuals audit the skills with in an organization set targets for future performance identify potential for promotion

PERFORMANCE APPRAISAL IN PEL

In PEL performance appraisal is recognized as an important element of the jobs of managers and supervisor. It provides significant help in meeting departmental and company objective. Given the vital role of performance appraisals, PEL needs to check appraisal system, and the uses of such appraisal system to determine whether key personnel decisions are affected by employees age, race, sex, religion, color, national origin or handicap. THE APPRAISAL PROCESS The foundations of performance appraisal is provided by what the job holder is expected to do as defined in a job description and by reference to agreed objectives. Performance appraisal discussions are often held annually. Each employee of PEL has annual targets, which are measured with his or her standard targets to compensate the employee on the basis of performance. Performance appraisal is totally based on employees annual work performance. They also offer bonuses and promotions to the working employees. When employees are working on projects, as working on new product design, there may be an appraisal after each assignment but there still be an overall review at the end of the year. They also hold meetings two or three times a year, the main purpose of which is to review and update the objectives. WHO CARRIED OUT THE APPRAISAL PROCESS Usually, the line managers are primarily responsible for conducting performance appraisals. They must tell employee how they are doing and make salary and training decisions. Personnel managers can aid line managers by providing information on how to use the performance appraisal forms and by making sure that the result of each appraisal becomes a part of each employees records, readily available for management decisions such as determining who to promote. The personnel managers are responsible for ensuring that all subordinates are appraised fairly and consistently. To fulfill this responsibility, personnel managers persuade all divisions of the organization to use the same appraisal form. They design the performance appraisal system for the entire organization. In addition, in PEL the process used to evaluate performance and make assessment is not 360 degree. In fact its on supervisor and mutually every employee. PROBLEM IN PERFORMANCE APPRAISAL AT PEL At PEL we have observed that supervisors and subordinates are often ambivalent about participating in the performance appraisal process. Supervisors are uncomfortable because there organizational role places them in the position of being both judge and jury. They must make decisions that affect people carriers and lives in a significant way. Further more supervisors are not trained to handle the interpersonally difficult situations that are likely to be arising when feedback is negative and supervisors would like to maintain a good relationship with the subordinates at workplace. Subordinates are likely to be very ambivalent about receiving negative feed back. Some subordinates prefer and want to discuss negative aspects of there performance, so they can improve and develop themselves for future appraisal. While others dont want to be criticized on there performance at all, because they think they are performing at there level best and there is no room for improvement in there performance. PEL Recommendations 1. They have raised very expensive loans so they should retire their expensive loans. 2. They should carefully study their competitors.

3. As mentioned earlier companys liquidity position is dismal. So they need to pay off their short term loans. 4. Their operating cost is very high so they should control their operating expenses. 5. When supervisor provide negative feedback he/she should immediately counterbalance it with positive statement for the purpose of encouragement in that situation. 6. There should be a continuous monitoring of performance. When performance deviates from plans one does not have to wait for the next periodic review to correct it. The supervisor and subordinate should discuss the situation immediately so the corrective actions can be taken at once in order to avoid the major disasters. 7. Whether performance appraisal discussions are held monthly, quarterly, annually appraise should be clear about what he/she is doing right and wrong ,and how he/she can overcome there deficiencies for the future appraisal. 8. Performance appraisal should be conducted in a way that employee should not perceive it as a fatigue or threat for there job but it should take it as an opportunity to add or contribute more value in work of there organization