Group Introduction

Service Industries Limited

• The young man, named Ch. Nazar Muhammad (Late), Ch. Muhammad Hussain (Late) – both from Gujrat district and Ch. Muhammad Saeed (Late) from Gujranwala District, started business in 1941 at a small scale in Lahore.

• In 1954 they installed a shoe manufacturing plant at industrial area Gulberg, Lahore. In these days it known as Service Sales Corporation (Pvt.) Ltd.

• Today, the production side of the company has flourished into Service Industries Limited (SIL) which has world-class shoes, tyres, tubes, and rubber production facilities

History

Products

Management Of Service Industry Ltd

The entire organizational authority is represented with the help of Organizational Chart, which is headed by a Resident Director. Hierarchy of each department is defined according to need of organization. It has large number of departments in which positions are grouped according to their main functional (or specialized) area.

Organizational Structure

The visionary leadership and hardworking management team has led SIL to hold this top position in the business arena. The Management comprises of:

Management of SIL

Chairman: Mr. Ahmad JavedCEO: Mr. Omar SaeedManagement TeamMr. Ghulam Muhammad (GM SIL Gujrat Factory)Mr. Adnan Wasal (GM SIL Muridke Factory)Mr. Jawwad Faisal (Chief Commercial Officer)Mr. Sohail Chaudhry (GM Domestic Sales)Mr. Muhammad Usman Amjad (Chief Financial Officer)Mr. Hassan Ehsan (Head of Exports)Mr. Rao Humayun Suleman (Head of Human Resource)Number of Employees:Company was started the operations with few numbers of employees. It currently employs close to 9000 people

Organizational Hierarchy

• Product Development and better quality

• Increase export of their product

• Open new franchise in populated area

• Customer satisfaction

• Suitable price

Management Priorities

Management Functions

Management factionManagement faction

They do both long term planning and short term planning to get their corresponding outcome or profit. They forecast their future conditions, opportunities and problems. Their planning process involves following steps:

• Preparation of physibility report• Forecast the demand in market• Finalize their investment• Evaluate the sale margin• Feed back

PlanningPlanning

Future Planning

Servis plans before the beginning of the year and the season. Like June is going on and the Management is planning for Eid and winter. they plan like:

• 5 years planning, • next year planning, • this year planning, • Event planning, • seasonal planning etc.

Organizing

• WORK SPECIALISATION

• DEPARTMENTALIZATION

• CHAIN OF COMMAND

• CENTRALIZED ORGANIZATION

ORGANIZATION STRUCTUREORGANIZATION STRUCTURE

MECHANISTIC ORGANIZATION

ORGANIZATION DESIGNORGANIZATION DESIGN

Chain Of Command

* Continuing operations

SIL fixed employees for a particular job for getting job specialization

AND each Manager is made responsible for only a particular function, which is his expertise.

WORK SPECIALISATION

DEPARTMENTALISATION

DEPARTMENTALISATION

It involves the process of producing the product. In manufacturing concern the largest and most important department is production department.

MANAGEMENT OF THIS DEPARTMENT

PRODUCTION DEPARTMENTPRODUCTION DEPARTMENT

Supply chain management

Hierarchy of SUPPLY CHAIN

•Definition of a set of policies that govern short-term operations.

•Fixed by the supply configuration from previous phase.

•Starts with a forecast of demand in the coming year.

•Planning decisions:

•Which markets will be supplied from which locations

•Planned buildup of inventories

•Subcontracting, backup locations

•Inventory policies

•Timing and size of market promotions

•Must consider in planning decisions demand uncertainty, exchange rates, competition over the time horizon

Supply Chain Planning

Hierarchy of this Department

• Double entry book keeping system is being used by the company.

• ERP System is used for to run functions smoothly

ACCOUNT & FINANCE DEPARTMENTACCOUNT & FINANCE DEPARTMENT

Hierarchy Chart Account & Finance

Quality assurance manager is appointed to check out the qualities matters and responsible to deliver the goods to finish godowns to avoid end customer complaints and to goodwill for the company.

QUALITY ASSURANCE DEPARTMENTQUALITY ASSURANCE DEPARTMENT

HRM DEPARTMENT

H.R develop job descriptions and Organizational chart and define

responsibilities and authorities of the employees who manage, perform and verify their work accordingly. The HR

department is responsible to provide the man power to the all other

Hierarchy of this department

Marketing

Ice Cream & Beverages

Personal Care

Savoury, Dressings & Spreads

MECHANISTIC MECHANISTIC ORGANIZATION ORGANIZATION

SIL has mechanistic design SIL has mechanistic design in which it has rigid in which it has rigid

departmentalization and departmentalization and tightly control structure, tightly control structure,

downward communication, downward communication, little participation in little participation in

decision making, clear decision making, clear chain of command.chain of command.

ORGANIZATION DESIGNORGANIZATION DESIGN

Servis have very effective Servis have very effective leadership which involves leadership which involves managing people and the work managing people and the work through the means ofthrough the means of

•MotivationMotivation•Communication Communication •Coordination of employees and Coordination of employees and employersemployers

LeadingLeading

• By annually bonuses these bonuses are provided in the month of April,

• Provide security and insurance• Promotion• Provide working environment• Better hygienic conditions• Free medical facility• Free education for their Children• Cheap food facility at canteen (20

Rs. per Head)• Commission (over time)

They have very strong communication pattern and

network. Meeting are occurs on regular basis. Sometimes

emergency meetings are called in conflict situation. Mostly their

conflicts are occurring in production, planning and

purchase departments. These conflicts are resolved in

emergency held meetings.

The coordination occurs among the employees and manager by visits. Managers have good ability of

command. They issue orders and instructions without arousing any resentment among the subordinates.

They are able to secure willing obedience from their subordinates without destroying their initiative and creativity. They have good relationships with labor

union.

There are certain performances standards for evaluating results. There is strong culture of making records and reports which tells about the progress of the company. So, they use these reports for comparing their performance. Corrective actions are taken to regulate operations, remove deficiencies and improve performance. There is a helping department which oversees the activities of all the departments. If any wrong action occurs it take notice and provide help about the issue. There are suggestion boxes for the employee. These suggestions are noticed on weekly basis.

ControllingControlling

Staffing (includes recruiting, selecting, hiring and firing of employees) is among the skills that become more important as the complexity and over all level of performance organization increases Both external and internal recruitment takes place in SIL by different methods as follows:

Staffing of new employees

Staffing of new employees

Staffing

Strengths

Largest footwear group in Pakistan

60 years experience

Variety of products

Image of durable shoes

Weaknesses

Recommendations• The company must reduce its operating expenses in order to The company must reduce its operating expenses in order to

compete in the market on price basis because operating expenses compete in the market on price basis because operating expenses are controllable factor.are controllable factor.

• Footwear industry is highly fashion industry; hence SIL must improve Footwear industry is highly fashion industry; hence SIL must improve the efficiency of the product development in order to bring new the efficiency of the product development in order to bring new design and style in the market to satisfy the consumersdesign and style in the market to satisfy the consumers

• Different training courses should be arranged for the up lifting and Different training courses should be arranged for the up lifting and improving the quality of work for employeesimproving the quality of work for employees

• They provide transportation facility to only female employees I think They provide transportation facility to only female employees I think male should also be provided with conveyance convenience. This will male should also be provided with conveyance convenience. This will create the easiness for workers and reduce the wastage of time.create the easiness for workers and reduce the wastage of time.