Submitted By:

Submitted to:

Miss. Sonia

Dedication

we would like to dedicate this project to our

parents who have always encourage us

throughout in our academic career and make

possible for us to stand where we today.

GROUP MEMBERS :

KASHIF ALI 9215

NAVEED-UL-HASSAN 9243

NAEEM SAJJAD 9212

PIRZADA ARSLAN 9234

ARSLAN GUJJAR 9229

M .IFTIKHAR 9218

We become able to complete this project by blessing of our God and the help of our teacher which give us guiding in every aspect of our project. And sure us that he is available when we need assistance. We would also like to thanks our family as specially our parents for being a patent and encouraging and motivating us. We dedicate this project to our respected teacher Miss.Sonia

History of PEL:

Pak Electron 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

programmes.

The company comprises of two divisions:

Appliances Division

Power Division

Appliance division:

APPLIANCES DIVISION

PEL’s 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”

In 1981 PEL window-type air conditioners were introduced 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 user’s 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 IAR-SILTAL of Italy. Like the air conditioner, PEL's 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

Mission:

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 employees to meet future

challenges

To promote good governance, corporate values and a safe working

environment with a strong sense of social responsibility.

Vision:

To excel in providing engineering goods and services through continuous

improvement.

Personality profile:

This company was in \corporate by siagol group which was come from

culcata India establish their industry in Faisalabad in 1948 they starts their

business form a textile company named Kohinoor textile limmited.

Reference:(www.pel.com.pk)

Personality Profile:

BOARD OF DIRECTORS

1. Mr. Azam Saigol (Chairman/Chief Executive)

2. Mr. Murad Saigol

3. Mr. Haroon Ahmad Khan (Managing Director)

4. Mr. Homaeer Waheed

5. Mr. Muhammad Rafi Khan

6. Mr. Gul Nawaz (NIT Nominee)

1. Mr. Masood Karim Sheikh

2. Mr. Tajammal H. Bokharee (NBP Nominee U/S 182 of the

Ordinance)

3. Mr. Wajahat A. Baqai (NBP Nominee U/S 182 of the Ordinance)

4. Mr. Naseem Saigol (NBP Nominee U/S 182 of the

Ordinance

PEL Company Structure:

PEL’S 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.

HIRERECHY

PAK ELEKTRON LIMITED

FINANCE DEPARTMENT

MARKETING DEPARTMENT

HR DEPARTMENT

IMPORT & EXPORT DEPT

IT DEPARTMENT

ADMIN DEPARTMENT

ACCOUNTS DEPARTMENT

CEO is the main controller of the whole organization. Heads of all

departments directly reports to CEO. These people are mainly involved in policy

CEO

FINANCE MANAGER

HR MANAGER

IMPORT&EXPORTMANAGER

MARKETING MANAGER

ADMIN MANAGER

IT MANAGER

ACCOUNTS MANAGER

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

FINANCE MANAGER

ASSISTANT FINANCE MANAGER

EXECUTIVE FINANCE MANAGER

MARKETING MANAGER

ASSISTANT MARKETING MANAGER

EXECUTIVE MARKETING MANAGER

IMPORT&EXPORT DEPARTMENT

I.T DEPARTMENT

HR MANAGER

ASSISTANT HR MANAGER

EXECUTIVE HR MANAGER

IMPORT&EXPORT MANAGER

ASSISTANT IMPORT&EXPORT MANAGER

EXECUTIVE IMPORT&EXPORT MANAGER

ADMIN DEPARTMENT

ACCOUNTS DEPARTMENT

I.T MANAGER

ASSISTANT I.T MANAGER

EXECUTIVE I.T MANAGER

ADMIN MANAGER

ASSISTANT ADMIN MANAGER

EXECUTIVE ADMIN MANAGER

PEL department

Finance department

Marketing department

Sales department

Trading department

Consumer marketing department

Credit control department

Customer service department

human resource management department

ACCOUNTS MANAGER

ASSISTANT ACCOUNTS MANAGER

EXECUTIVE ACCOUNTS MANAGER

Distributions department

Quality control department

Department working

Finance department:

Finance department provide money for the working of the

organization. PELcompany’s department borrows loan mainly from national bank

and settle terms and conditioned of the interest and time period of returning the

load with it. When the sale is made the company firstly returns the loan with

interest.

Human resource department:

Human resource department of the Pel Company is very much

conscious of hiring the employees for the company. The standards he set for hiring

the new poople.HRM department of the company mainly makes the external

recruitment .this is usually done through news paper web sites extra.HRM

department also set salaries, packages and TA, DA allowances.

Marketing department:

Marketing department is the back bone of any firm.

marketing department generally analyze the needs and wants of the customer. Then

this department tells about the customer needs to the company which in tern

launches the products according to the needs of the customers. Marketing

department is responsible for making strong advertisement for the products.

Sales department:

Sales department is responsible for making sales of the product.

This department generally takes orders from the market, gives information to the

credit control department. Area credit control department gives information to the

head office. Head office discuss situation with the finance department and then at

last finance department gives authority to area credit control department to settle

term and conditions with dealers.

Customer service center department:

This department is very much important for the company

because its makes the good will of the company. It’s provided services to the

customers who have their clams and makes the customer loyal. Its also gives the

feed back to the head office to provide the required spare parts.

Consumer marketing department:

Consumer marketing department gives

packages to the person who has low income to attract them to purchase their

products. They have their own area offices. This department works under credits

control departments.

Trading department:

This department is involved for importing products. This

department imports the required products according to the demand of the customer

such as split unit. This department is controlled by its head, which works directly

under the head offce.This department sends terms and condition of trade to the

head office and finance department for the financing.

Production department:

Production department is involved only producing the

products. This department purchases raw material from the suppliers. Then passes

the raw material from various dyes machines. Modeling machines etc…from the

assembly line according to the required shapes of the products.

Distribution department:

This department distributes the final products from the

production department to the dealers and then ultimately to the consumers. This

department only responsible for distributing the products according to the

requirement and demand of the product.

Reference (M.Afzal)relation ship manager.

Span of Control

The organizational hierarchy of Pak Elektron Ltd. has both flat and

tall span of administration. In case of lower level of hierarchy (the

worker and their supervisors) the span is wide but as the level goes up, it

becomes tall.

The managing director who is answerable to the Chairman holds

the top position. General Managers are answerable to the Managing

Director and are responsible for respective division, Managers are

heading some departments, and Assistant Managers is leading some by

Deputy Managers and other. There are senior engineers who are section

in charge Supervisors and foremen report to them.

Executive level

At executive level, three to five engineers report to a manager and

almost some numbers of managers’ report to a General Manager.

Workers level

At workers level, usually 10 to 30 workers report to a foreman. Three to

seven foremen report to a section in charge.

Division of Labor

In Pak Elektron Limited (PEL), two types of employees hired

1. Permanent Workers

2. Temporary Workers

Temporary workers are employed for about 6 months, and when the

season concludes the temporary workers are laid off. Temporary workers

are employed as helpers and assigned those jobs where skills are not

required.

Workers are divided into different teams based upon their skills and

nature of job. The team is lead by head worker who is responsible for the

work assigned to his team and directs the fellow workers to perform the

assigned task. These teams are masters of their jobs. With in a team,

tasks have been assigned in a sequential order and every individual is

assigned a specific task. This activity not only helps productivity but

also helps the quality standards of the workers as each of them tries to

keep an eye on the other to see that he is performing correctly because if

any thing goes wrong, the blame goes to the whole group.

Business portfolio

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.

After that they establish pel elektron company.

PEL Elektronic:

In October 1978 the company was taken over by the SAIGOL GROUP,

which is one of the leading industrial and commercial groups of Pakistan.

The products manufactured by PEL have always been of a high standard

and the name “PEL is synonymous with quality all over Pakistan.” PEL,

since its inception, has been acting as an institution working for the

advancement and development of engineering and modern technology in

Pakistan

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 and efficient 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.

Reference(Naeem Ahmad) design managers

Communication network at pel:

COMMUNICATION

Communication is an exchange of facts, ideas, opinions, or emotions, by two or more persons.

FUNCTIONS OF COMMUNICATION

1. Interpersonal Communication2. 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

ENCODING

Sender

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.

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.

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 who’s 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 someone’s 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 student’s 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.

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.

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.

Reference:(www.pel.com.pk)

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.

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 you’re 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.

Four management function in PEL

1. Planning

2. Organizing

3. Leading

4. Controlling

Planning

Refrigerator:

Planning is very much important function of the

management.PEL company makes the planning regarding refrigerator by observing

the market. How much a company can sales in a particular segment’s there any

chance of growth is also in the planning of the company refrigerator.

Split Unit:

The company planning regarding split unit firstly is the

observation of the market. Then after observation how much to import the split

units. Finance and trading department also give suggestion for planning regarding

split unit .Then set their plans according to the requirement.

Organizing

Refrigerator:

The organizing regarding refrigerator how to make availability of refrigerator assured. Taking in the account the policy regarding refrigerator of the company how much to produce and when to produce etc…Almost all the department are involved in organizing and also how much margin to give to the dealers.

Split Unit:

While organizing the company takes into account the last year sales and how much to sale in a particular area. Mainly quality control, finance department and trading department are involved in organizing for how much to import, when to import, where to import etc…

Leading

Refrigerator:

Head office mainly leads all departments regarding refrigerator .All the sub ordinate department officers lead the related department and employees and loyal to the head office for their working. Their is check and balance situation for every department.

Split Unit:

Head office mainly leads all the related department of the split units. Trading department is mainly the leader in split unit case for importing it and direct reliable to the head office. For leading it also give its requirement to its head office for finance and for the quality control of the product.

Controlling

Refrigerator:

Controlling is the main functions after making the pervious steps.

Managers of the each department control its own department working and are

liable to the managing director. There is check and balance situation. In

controlling, monthly and annual basis analysis are made. How much sale is made

and for the betterment of the product research and development department then do

its job.

Split Unit:

In controlling of the split units, trading department mainly

control the import of the splits units. it checks the quantity of the units and

quality control department checks the quality of the split units before

launching it in the market.

Challenges and issue faced by PEL:

The challenges of pel is faces by pel is because of its competitor, Waves, LG, and Haier etc. The Dawlance is market leader in the refrigerator and PEL is still on second number.

REFRIGERATORS:

Total market sale of refrigerator in 2006 is 2924905 units. Last year sale was

2091779 units. These figures show 30% market growth. But this is not the exact

figure of growth rate it varies from year to year.

DAWLANCE is a market leader in refrigerator with 46% share.

PEL has 38% market share

Waves has 10% market share.

6% shares are others

WINDOW AIR CONDITIONERS:

PEL is a market leader with a market share of about 60% in local manufacturing

industry. And overall has 35% market shares for this product.

LG has about 32% market share and stands on number two.And rest of the

manufacturers have 23% marker share.

SPLIT AIR CONDITIONERS:

The main competitor of PEL in Split air conditioner is DAWLANCE. Other

competitors are MITSUBISHI and HAIER

MICROWAVE OVEN:

In case of Microwave Oven DAWLANCE is the main competitor of PEL.

But the company claims to be the leader in this product line.

Challenges and issue faced by Pel:

COMPETITIVE POSITION:

According to AURTHER D. LITTLE a company will occupy one of the following

competitive position strategies:

Dominants:

At this position a firm controls the behavior of other competitor and has a

wide choice of strategic option.

Strong:

At this, a firm can take independent action without endangering its long-

term position and can maintain its long-term position regardless of the

competitor’s action.

Favorable:

This firm has an exploitable strength to improve it position.

Tenable:

This firm is performing at a satisfactory level to warrant continuing in

business.

Weak:

At this position, a firm has unsatisfactory performance and an opportunity to

improvement.

Non-viable:

At this position, a firm has unsatisfactory performance with no opportunity

to improvement.

PEL occupies the strong position in the market because, it has very good

market share of 38%. PEL is the market CHALLANGER.

PEL culture:

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 Organization's 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.

Reference (M.Afzal) relation ship manager

Stakeholder:

a) Customer b) Competitor c) Media d) Communicates e) Share holder

f) Unions g) Employee h) Supplier

Customer:

Some time customer influence sale. Customer want to purchase low quality product in low price pel products is high quality and flexible price some time didn’t become able to purchase the products and it affect on sale.

Competitor:

Downlance Waves Lg Hier Orient Split

Media:

Some time other companies give big heavy advertisement in that situation

people divert to other products so the sale affect from that.

Communicates:

Some time our communication affect at our sale because some time when

our sales man want to sale their products they could’t give proper brief to

their customer in that situation the company sale affect.

Shareholder:

Our share holder play main role in sale process some time when they

drawback their share form the organization then the capisty to

manufacturing effect from it then sale decrease.

Union:

Union are the major part in the organization they strike and sopped

working so the sale of the organization effect.

Employee:

When employee didn’t work properly then automatically sale process circle

damaged.

Motivation and team work in PEL

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 organization’s performance through the enhanced performance of individuals.

The main objectives of performance appraisal are:

To review past performance To asses training needs To help develop individuals

To audit the skills with in an organization To set targets for future performance To 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 employee’s 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 employee’s 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 employee’s 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 it’s on supervisor and mutually every employee.

PROBLEM IN MOTIVATION AND TEAM WORK IN 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 don’t 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 company’s 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

Reference :*(our finding)*