PRINCIPLE OF MANAGEMENT

SONICA GROUP OF INDUSTRIES

GROUP NAME
Armghan Azeem Roman Jajj AndleedRiaz Snober Javaid 10209004 10209001 10109015 10109004

MSC (Accounting & Finance)

Cource: MGT505 - Principle of Management

INSTRUCTOR NAME
Ameer Abdul Basit

SUBMITTED DATE: January 19, 2010

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Executive Summary

Mr. Ameer Abdul Basit who is our instructor for Principle of management given as a research bas project on Industry. For that purpose we visited different factories. And we will chose Sonica Group of Industries. He cooperates with us very much. We got very useful information from him. Then we use Microsoft word for composing and Power point for presentation.

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Dedicate to our beloved parents and respected teachers, who guide & teach us in every aspect of life. We are nothing without them. May ALLAH bless them all

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Acknowldgements

I would really like to thank my friends for their anticipation. Computer Lab staff was very cooperative while collecting the data, they really make us feel comfortable in the Computer lab. The staff in the computer lab also helps me in resolving problems while composing my project.

Finally a special thanks to my Respected Teacher Mr. Ameer Abdul Basit Meer who really make this project more convenient for us.

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TABLE OF CONTEXT Page no#

6 7 7 8 8 8 9 10 10 11 11 11 12,13 14 16 16 17 17 18 19 19 20 21 22 23 28 29

Context
Introduction Capital Investment Types Of Customer Market Share Number Of Managers No Of Workers Vision Statement Mission Statement Goals Marketing Finance Majour Competiors Swot Analysis Orgizational Chart Processing Work Specialization Span Of Control Chain Of Command Departmentalization Centralization Or Decentralization Organization Design And Structure Hr Planning Policies And Benefits Method Of Recruitment And Selection Analysis And Recommendations Conclusion And Recommendations Bibliography

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SONICA
A sign of Quality & Durability HISTORY:
Sonica Plastic industries started its business in 1978 by manufacturing spare parts of Plastic washing machines on a small scale under the supervision of Muhammad Munawar. But continuously and gradually this small unit started manufacturing of Plastic Furniture on a large scale in 2009.Sonica Plastic Industries has its own automatic machinery. This is all achieved by sharing committed management and experienced employees. Sonica Plastic Industries is now become a prominent name in Plastic Furniture industry in Pakistan. Sonica Plastic Industries satisfying hundred of million customers all over Pakistan and abroad too. Today, as we are witnessing a new era of industrial, economic and commercial advancement, we have developed all our efforts for the development. In search of excellence, we have invested in the complete training of our engineers and setup state-of-the-art equipment and now specialize in service and maintenance of varied Parts of Plastic Furniture. The concluded aspect of our diversified services is our quality application to achieve the standards set forth by the demands of time and development. Hence, we are committed and dedicated at all times to be the best at what we do for our customers and their permanent satisfaction. MOTOR CYCLE: Sonica Auto industries started its business in 2001 by manufacturing spare parts of MOTOR CYCLE on a small scale under the supervision of Muhammad Waqar. But continuously and gradually this small unit started manufacturing of MOTOR CYCLE on a large scale in 2005.Sonica Auto Industries has its own automatic paint shop, assembling department etc . This is all achieved by sharing committed management and experienced employees.

ADDRESS: PLOT# 8-A, St# 2 NEAR PINDI BYPASS, G.T.ROAD, GUJRANWALA. Tel: +92-55-3893707, 3893895, 3891663 Cell: 0301-8646555 / 03217429000 Fax: +92-055-55-3891684 Email: sonica@gjr.paknet.com.pk URL: www.sonica.com.pk

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CAPITAL INVESTMENT In beginning the Sonica has total capital investment is 15m, after few years the Sonica has expand its business. In copper wire the total capital is 10m.In washing machining the total capital is 30m.In motorcycle 40m capital. In furniture the total capital is 10m. Now the total capital of the Sonica group of industries is 90mill.

Copper Wire Washing Machine Motor Cycle Furniture Total investment

10m 30m 40m 10m 90m

TYPES OF CUSTOMER

B to B production They can supply all big and small industries following things: Copper wire Parts of machines Parts of Motorcycle

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PRINCIPLE OF MANAGEMENT MARKET SHARE The SONICA INDUSTRIES market share is very high because of The high production Quality production High sales Export in Afghanistan and Bangladesh

NUMBER OF MANAGERS

In Sonica there are four managers in motor cycle department-four managers in the washing machine department-four are in copper wire department and again four managers are in plastic furniture departments. They hired four managers for every department to for the betterment of their output.

MOTOR CYCLE WASHING MACHINE COPPER WIRE PLASTIC FURNITURE TOTAL

4 4 4 4 16

NO OF WORKERS Sonica plastic industries hired 150 workers in washing machines. And they have 150 members in motor cycle department. Sonica plastic industries hired 50 workers in copper wire division and get best of their efforts. This industry also owned fan industry and hired 50 workforces to get output. Sonica plastic industry hired 50 recruits for plastic furniture section. All their employees are well trained, experienced. They put best of their of efforts to make output more reliable and durable.

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In Washings Machinating In Motor Cycle In Copper Wire In Fan Industry In Plastic Furniture TOTAL

150 150 50 50 50 450

A sign of Quality & Durability

STRATEGIC MANAGEMENT:

Vision Statement To position ourselves be regional suppliers of quality packaging and tissue products. To improve on contemporary measures such as, cost, quality, service, speed of delivery and mobilization. Customer satisfaction with high Quality Create Trust in all customers No labor turnover

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Mission Statement To Be ... a market leader by providing quality products and superior service to our customers, while learning from their feedback to set even higher standards for our products. ... a company that continuously enhances its superior technological competence to provide innovative solutions to cater to customer needs. ... a company that attracts and retains outstanding people by creating a culture that fosters openness and innovation, promotes individual growth, and rewards initiative and performance. ... a company which combines its people, technology, management systems, and market opportunities to achieve profitable growth while providing fair returns to its shareholders. ... a company that endeavors to set the highest standards in corporate ethics in serving the society. ... a company higher production in Pakistan. ... a company supply all types of parts of machines. ... a company produce all parts of Motor Cycles

GOALS Production no1 In future use all CNC Machines

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MARKETING In marketing Company focusing an organization's energies and resources on a course of action which can lead to increased sales and dominance of a targeted market niche. A marketing strategy combines product development, promotion, distribution, pricing, relationship management and other elements; identifies the firm's marketing goals, and explains how they will be achieved, ideally within a stated timeframe.
In each factory marketing department is worked together following are the marketing strategies:

The company can survey in all market in the world. Create seminars in all universities in Pakistan. Distribute questionnaire, in workers and other markets for good decision.

FINANCE In beginning the Sonica has total capital investment is 15m, after few years the Sonica has expand its business. In copper wire the total capital is 10m.In washing machining the total capital is 30m.In motorcycle 40m capital. In furniture the total capital is 10m. Now the total capital of the Sonica group of industries is 90mill.

MAJOUR COMPETIORS IN WASHING MACHINES: Super Asia Stylo

In Motor Cycles: Atlas Honda Yamaha Superasia

In Plastic Furniture: Boss Citizen

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SWOT ANALYSIS
Strength

Following are the strengths: Permanent job. Once an employee, always an employee. Old organization. Learning is great for fresh graduates. Internal systems like internal audit, standard operating procedures are very strong. Benefits like further education, financial assistance, provident fund .etc. Provides a link between industry and research work like LUMS and LSE.

Weakness

Following are the weakness: Slow growth for employees. Low payroll. Old machinery. Strong culture somewhere. Theft

Opportunities

Following are the opportunities:

In Pakistan there is the high production department in Copper wire. The Sonica company wires are supply in all over the Pakistan. They can replace their machinery to make more efficient production.

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Threats

Following are the threats:

No diversity, only investing in single industry. New company with advance plant and machinery can overcome. Mostly raw material is made in Pakistan. Because of Electricity short fall production are not in proper. In case of some political instability, results can be very drastic. They are enjoying the whole market as their clients as there is no any perfect competitor, so they have a large threat of competitor.

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ORGIZATION STRUCTURE AND DESIGN

ORGIZATIONAL CHART

PURCHASING PURCHASING

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A sign of Quality & Durability

CHART DETAIL These are the manarers detail in the orginazation.On the top the Directors name than manager names.

AQEEL AMJAD Tayyab Bilal Furqan

FAISAL BASHEER Muqeem Azeem Raza Farooq

ALI RIAZ Faisal Usman Irfan

SALMAN FAROOQ Umair Asad Amir Loan

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PROCESSING

RAW MATERIAL

DESIGN

QUANTITY CONTROL

MANUFACTURING

PACKING

WORK SPECIALIZATION The Sonica Company can separate all work activities. The company specialization, employees are isolated and do only a single, tiny, boring job. Organization enlarges jobs or rotate assigned tasks to provide greater challenges.

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SPAN OF CONTROL In Sonica group of Industry the every manager must handle the all workers and other employees. They control the all orginazation.The production manager control the all labour.There are more than 100 workers in every department.

CHAIN OF COMMAND Sonica Group of Industry In chain of command the manager must link to the workers so that the problems are easily handled. Everyone can report to the other so the problems and hurdles are easily handled. The worker can easily excess to manager. If the problem is tackled the manager can help the workers.

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DEPARTMENTALIZATION

Yes, as it is a very huge organization, having more than 400 employees and lots of Plant and equipments valuing in billions of rupees. There are several departments and each department have many managers under it: Business unit manager Production manager Marketing manager Accounts manager Planning manager

* There is a General Manager who supervises all the above departments...

Business unit manager

Marketing manager

Production manager

Selling manager

Accounts manager

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CENTRALIZATION OR DECENTRALIZATION

We found there DECENTRALIZATION as the management is involved in planning and performing actions. They equally participate in the meetings and have full rights of interfering in organizations planning and implementing.

ORGANIZATION DESIGN AND STRUCTURE

It is a Mechanistic organization as there are different departments for different tasks like printing, sorting, marketing etc. So the employees there are highly specialized. There is clarity in chain of command. It is highly formalized. But it has also some aspects of Organic organization like wide span of control.

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HUMAN RESOURCE MANAGEMENT

HR PLANNING People are heart of any organization. Its not the machinery, the money or the structure that is important. It is the people. The companys main asset is its people. Many organizations acknowledged the important role that employees play in organization success. Sonica Group of industries uses four basic components for HR planning: 1. Acquisition Manpower planning to recruit right personnel for the right position at the right time. 2. Training Training is the process in the employee lifecycle. 3. Maintenance This is an ongoing process again which ensure company health during difficult times. 4. Motivation Motivating the morale of employees is a very delicate job and HR has to accomplish it. METHOD OF SELECTING Once organization get pool of candidates, the next step Is the selection of candidates. Selection is the process of screening job applicants to ensure that the most appropriate candidates are hired. In citizen, once candidates apply for jobs and send their job application and CV, according to their need they call candidates for interview. In citizen employees are selected by giving interviews to directors. After getting interview from candidates, citizen filter suitable candidates and again they call selected candidates for final interview and select from these.

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HUMAN RESOURCE PLANNING CHART

Call for interviews

Call for interview

Recruitment

Selection

Suitable candidate hire on job

POLICIES AND BENEFITS

Your job is an important part of your life, and to do it well, you need an appropriate environment for your mind as well as your body. We like to make sure that you do: our corporate culture emphasizes people, and the need to satisfy their potential. The attractiveness of any company's corporate environment can be gauged by the employees it hires and retains. An impressive 42% of our employees have been with us for more than 10 years, and almost 26% for more than 20. This is just one of the reasons why you would consider Packages as a prospective employer. Another is the technical excellence of our employees. 33% of our employees working as technical personnel have a bachelors or advanced degree. We take pride in the diversity of our staff, with chartered accountants, MBAs, engineers and even qualified lawyers on board. For us, the resources running Packages are not the machines, but the people. We do not seek employees. We seek people who will think, feel, express themselves, learn, teach, and grow with us. Their growth is the company's growth. That's how personal it is, for us. We have designed an impressive range of facilities and services to free our people from worries and allow them personal and professional freedom. These are just a few of the benefits we provide for employee welfare:
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Bonus - A cash bonus is paid annually to the employees. Conveyance Allowance - This is also paid to all employees. Employees are also offered the option of buying vehicles at reduced prices. House rent allowance - This is paid to all employees as a hefty percentage of their basic salaries. Employees' Old Age Benefit Scheme - The company contributes a percentage of workers' wages towards this government scheme, which ensures a reasonable pension on retirement. Subsidized Food - The Company has extensive cafeteria facilities which serve breakfast, lunch and dinner to all employees at highly subsidized rates. Employees' Children Education - The Company pays an education cuss to the government to ensure free education up to high school level of at least one child of each employee, subject to rules and regulations.

METHOD OF RECRUITMENT AND SELECTION The employee selection process which includes interviews,tests,backgrounds,checks and so forth should be viewed as an opportunity to learn about individuals level of moral development, locus of control, ego strength and personal views. But even a carefully designed selection process is not fool proof.eve number the best circumstances, individuals with questionable standards of right and wrong may be hired. However, this should not be a problem if other ethics controls are in place. Recruitment is the process of locating, identifying, and attracting capable applicants. Some organizations have interesting way to finding employees

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ANALYSIS AND RECOMMENDATIONS

Mission A statement of the purpose of an organization. ANALYSIS The Sonica purpose to improve on contemporary measures such as, cost, quality, service, speed of delivery and mobilization. GOALS A goal or objective is a projected computation of affairs that a person or a system plans or intends to achievea personal or organizational desired. ANALYSIS The company objective production no1 In future use all CNC Machines.

SWAT ANALYSIS

STRENGTH Any activities the organization does well or any unique resource that it has.

ANALYSIS The company is unique because permanent job. Once an employee, always an employee. Old organization. Learning is great for fresh graduates. Internal systems like internal audit, standard operating procedures are very strong. Benefits like further education, financial assistance, and provident fund .etc.Provides a link between industry and research work like LUMS and LSE.

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WEAKNESS Activities the organization does not do well or resources it needs but does not possess. ANALYSIS The Sonica industry slows growth for employees. Low payroll. Old machinery. Strong culture somewhere. These are the problems that can face the company.

OPPORTUNITIES Positive trends in external environment factors

ANALYSIS In Pakistan there is the high production department in Copper wire. The Sonica company wires are supply in all over the Pakistan. They can replace their machinery to make more efficient production. THREATS Negative trends in external environmental factors ANALYSIS No diversity, only investing in single industry. New company with advance plant and machinery can overcome. Mostly raw material is made in Pakistan. Because of Electricity short fall production are not in proper. In case of some political instability, results can be very drastic. They are enjoying the whole market as their clients as there is no any perfect competitor, so they have a large threat of competitor.

ORGINATIOANL CHART A Chart That Shows the Arrangement of Jobs RECOMMENDATION The Sonica company chart shows the arrangement of jobs like production manager, selling etc...The company should manage the all departments so easily show in all the documents.

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PRINCIPLE OF MANAGEMENT WORK SPECIALIZATION Dividing work activities into separate job tasks RECOMMENDATION The company specialization, employees are isolated and do only a single, tiny, boring job. Organization enlarges jobs or rotate assigned tasks to provide greater challenges. The Sonica Company can separate all work activities. The company must allocate all matters, so the employees can not feel disagree.

DEPARTMENTALIZATION The company has following managers: Business unit manager Production manager Marketing manager Accounts manager Planning manager RECOMMENDATION The Company must hire more managers For example: Designer manager, Finance manager, HR manager etc
PROCESS

MANUFACTURING

FINISHING

PACKING

This is normal Departmentalization in small industries.

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PRINCIPLE OF MANAGEMENT CHAIN OF COMMAND The line of authority extending from upper orginational levels to lowest level, which clarifies who reports to whom. RECOMMENDATION In chain of command the manager must linked to the workers so that the problems are easily handle. Everyone can report to the other so the problems and hurdles are easily handled. SPAN OF CONTROL The number of employees a manager can efficiently and effectively manager Example of Book diagram:

ANALYSIS AND RECOMMENDATIONS: Sonica Group of Industry In chain of command the manager must link to the workers so that the problems are easily handled. Everyone can report to the other so the problems and hurdles are easily handled.

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HUMAN RESORCE MANAGEMENT PROCESS

ANALYSIS AND RECOMMENDATIONS The Company can use also this process. The employee selection process which includes interviews,tests,backgrounds,checks and so forth should be viewed as an opportunity to learn about individuals level of moral development, locus of control, ego strength and personal views. The company must train our employees because of career development. Human resource planning is the process by which managers ensure that they have the right number and kinds of capable people in the right places and at the right times.

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CONCLUSION AND RECOMMENDATIONS

Having analyze the policies and procedure through interviews with lower and higher management level and also work grade IV inferred some recommendations which are as follows:

First of all, the human resource management has not assumed its mature shape in true sense of the world. The activities are limited only to pay roll and record keeping. While HRD has limited roles and responsibilities which should be enhanced. Secondly, on employees level, there is a dissatisfaction regarding pay and benefits, thats why employees motivation level is low. Employees are not sure about companys concerns about their grievances. Career ladder for each employee should be defined well. Negligence of workers should be supervised strictly. Work safety precautions should be told properly to the employees. Workers should be properly trained.

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Book: Principles of Management, Author: Stephen P. Robbins Bibliography We met their: Production Manager Syed Asim Shameem Planning Manager - Mr. Siddique Finishing In charge Farhan Amin

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