AMERICAN UNIVERSITY IN LONDON

Canadian Sudanese College

School Of Business

Human resource development in industrial sector

A thesis submitted in partial fulfillment of the Bachelor degree of

Business Administration (BBA)

By;
Faris amir gabir el-bakri

Supervisor;
Sahar said

2009
CONTENTS

PREFACE…………………………………………………………………3
ACKNOLEDGEMENTS…………………………………………………4

CHAPTER ONE…………………………………………………………5
Introduction
The statement of the problem
The study hypothesis
Methodology
Sources of data
Limitation to study:

CHAPTER TWO………………………………………………………….9
Introduction
Managing change
Managing Change Is Managing People
Types of change
Managing change through HR
Developing human capital
Competitive advantage through people
Human capital and HR
Employee empowerment
CHAPTER THREE……………………………………………………19
Back ground of the factory
Objectives for the project
Production capacity
Product
Quality
Raw Material
CHAPTER FOUR……………………………………………………24
Analysis study (QUESTIONEER)
CHAPTER FIVE………………………………………………………30
Recommendations
Conclusion

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Appendix…………………………………………………………………33
Preface
This research consists of five chapters. These chapters cover various aspects
of human resource development in manufacturing sector, such as
management change affection in human development, types of change,
developing human capital, and employee empowerment.
Chapter one of this research papers shows the problem surround this topic
and how we can treat these problems in a suitable manner. In chapter two
more details in managing change role and in developing human capital
issues. The case study for this research talk about one of the important
example in industrial sector which in steel manufacturing (Jacob factory for
steel manufacturing) this is what’s shown in chapter three. Chapter four give
an analysis of the research, the data obtained through a questionnaire which
was answered by 3 labors. Finally, we have chapter five which include the
suggested recommendations and give the final conclusion of this research…

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 ACKNOLEDGEMENTS

After thanking GOD

I am heartily thankful to my supervisor, Mrs. Sahar Said, whose

encouragement, guidance and support from the initial to the final level
enabled me to develop an understanding of the subject.

This research project would not have been possible without the support of
many people. Dr. Mohammed Ahmed Ramadan who was abundantly helpful
and offered invaluable assistance, support and guidance. Deepest gratitude is
also due to the members of the supervisory committee, Mrs. Sahar Said and
Mr. Wleed Qubanni without whose knowledge and assistance this study
would not have been successful.
Special thanks also to all graduate friends, for sharing the literature and
invaluable assistance. Not forgetting to best friends who always been there.
I wishes to express my love and gratitude to my beloved families; for their
understanding & endless love, through the duration of my studies.

Lastly, I offer my regards and blessings to all of those who supported me in

any respect during the completion of the project.

Faris Amir Al-Bakri

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Chapter one

Introduction

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1.1 Introduction

Manufacturing sector is one of the most important sectors that play a major
role in improving economy of nations. Some countries depend on this sector
as No.1 sector and others countries give it the second level of importance in
the country budget.
Human is the primitive and the complex resource in general and especially
in manufacturing industries. In the past, observers feared that machine might
one day eliminate the need for people at work. In reality, just the opposite
has been occurring people are more important in today’s organizations than
ever before. (In many fast-growing economies, it may be easier to access
money and technology than good people competitive advantages belongs to
(3)
companies that know how to attract, select, deploy, and develop talent)

Almost a huge number of labors which are the most important element in
this sector are low-educated persons so we need to double the doze of
developing them in order to get the highest effort of them in cycling the
sector.
1.2 The statement of the problem
In order to increase the development of human resources in manufacturing
sectors, we need to practice the suitable techniques of human resource
management principals in a way or another.
The major techniques or systems we need to act on are, leading for
managers, training or coaching for employees and labors and engineers if
necessary, motivation for all levels, updating or follow up with what’s new

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in the industry nowadays in term of machines or knowledge for all levels,
take care for all questions and comments that initiated specially from labors.
For doing so, there are three main issues that have to be fulfilled to insure
this increasing in this sector which are,
- Standardization of the system in human resource management.
- Continuity of the system
- Satisfaction of the system.
To insure the issues in the right manner we have to combine leading,
training, motivation, updating and feed back of in a right way to gain the
results we are seeking for.

1.3 The study hypothesis

- Developing human capital results in holding and tidying the performance
of workers with in the organization.
- Managing change has great results i.e. feed back from labors.
1.4 Methodology:
We will use an extensive method to acquire data, these data will be acquired
through direct interviews with the persons in question, and we will also
prepare a questionnaire to get data about the existing system which is used
by the company.

1.5 Sources of data:

1.5.1 Primary Data:
The data will be obtained from :( books, newspapers, magazines, previous
researches, knowledge, and internet).

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1.5.2 Secondary Data:
The data will be obtained from: (direct interviews, relevance, and
questionnaire).
1.6 Limitation of the study
1. Time span. The duration of the study and the time available for

making the research is not that enough, during the final semester of
the academic year.
2. Difficulty to get information and testing of statistical analysis with 30

populations do not reflect the exact/real situation with high level of

accuracy because I have to make the interviews during the work hours
of the factory when labors are working. This is prohibited by the
administration of the factory.
3. Tallying the primary data collected with the secondary and thus
reaching a major consensus needs in depth analysis.
4. Comparative analysis of such research is a difficult task.

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 Chapter two

Literature review

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- 2.1 Introduction
By seeking the input of chief executives and HR managers, these
organizations keep a finger on the pulse of major trends. For the past decade
or so, there has been a constant theme around the following issues:
Managing change
Developing human capital
- 2.2 Managing change
Organizations can rarely stand still for long. In highly competitive
environments, where competition is around the country and innovation is
continuous, change has become a core competency of organization.

Managing Change Is Managing People

Changing the way an organization operates is tough. You can spend a lot of
money on new software, redesign your business processes, and offer
training, but, will this guarantee change? No.

Technologies may change, but organizations usually stay the same. If you
want to change the way your organization works, you have to make it
happen. The right way to manage change begins with a simple model but

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involves a process that can be complex and delicate. It entails careful
planning, detailed design, and thorough implementation. (1)

The Plan

Defining change. Your first step is defining the change you want to
implement. Most important is defining the operational model: What do you
want your organization's structure to look like? What roles need to be
performed? How future business should processes look? What technology is
needed?

The first requirement for success is keeping your goals realistic. Whatever
the nature of the changes you're seeking, you need to know your
organization's limits. You also need to understand how change can be
affected within your organization -- can the change be enacted at a business
unit level and pushed down? Or should the change start with smaller groups
(like project teams) and work its way up the organization?

Assessing readiness. The next stop is to assess how ready your organization
is for change by analyzing two key factors:

 Stakeholders. Who stands to gain or lose the most through the changes
you're planning, and who among the "losers" will present an obstacle? Who
are the key change agents -- that is, who are the people that everyone else
follows?
 Business processes. How radically will you change the way you conduct
business? And what will it take to make that change? (2)

Design, Implement and Sell

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The design and implementation of organizational change are separate stages,
but they are best seen as one continuous process, broken out into three
streams: The communication side, the training side, and the incentives side.

Communication. Effective communication is a lot more than just giving

people regular updates. People are naturally resistant to change, and you've
got to sell them on the benefits of it. To communicate (i.e., sell) the change,
do what any good marketing manager would do. Define segments and then
develop key messages for each segment.

The key to communicating with stakeholders is to understand their pain-

points. Addressing these pain-points should be a common thread throughout
your communications.

Develop a strategy around the best medium for reaching everyone --

newsletters, e-mail, workshops, brownbag lunches, etc. -- and how often
people will need to be reached. To reach larger audiences consider setting up
monthly presentations with a forum for questions and answers.

Training. It is critical to give people the skills they will require through
effective training. Training requirements should be planned around the
specific skills employees will need and how quickly they can learn them.
Take care in determining the best medium of instruction -- is it in a
traditional face to face classroom setting? Or learning from a manual or
computer tutorial? Or through a virtual seminar?

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Maybe your needs are less complicated? If all you require is a low-level
program for a simple change in a process, you might be able to deliver the
training through a single group presentation or even send it out by e-mail.

Incentives. Change can be greatly aided with the use of incentives, but
designing the most appropriate incentives can be tricky. Incentives can be of
the "carrot" or "stick" variety. Sticks can be very effective and certainly do
not need to be that painful. For example, if taking a training class is part of
the required change, present a list of people who have and have not attended
training during a company meeting. The public dis-recognition might be just
enough to get people to act.

Carrots, though, are better, positive incentives. It's important your incentive
strategy be consistent with your organization's culture. What do your
employees value, and how can that guide you in designing incentives?

Maybe try tying the incentive to a bigger objective. For instance, if you are
rolling out a new project management application, look into having the
training classes apply toward PMI certification. This not only provides
additional incentive, but also clearly ties the change to career development
goals.

Success

While successfully implementing change is difficult and requires careful

planning and rigorous activity, and most of all, an understanding of people
and how to change the way they do things, it can be done. Doing it right
means you only have to do it once. Doing it wrong? Well, ... we all know the
answer to that one. (2)

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Types of change
Programs focused on total quality, continuous improvement, downsizing,
reengineering, and the like are all examples of the means organizations are
using to modify the way they operate in order to more successful. Some of
these changes are reactive, resulting when external forces have already
affected an organization’s performance. Other changes are more proactive,
being initiated by managers to take advantage of targeted opportunities,
particularly manufacturing industries.
The main thrust of the change-management program was to involve
employees in instituting continuous innovation and excellent customer
service. These types of change initiatives are not designed to fix problems
that have arisen in the organization so much as they are designed to help
renew everyone’s focus on key success factor. (1)
Managing change through HR
Most employees---regardless of occupation--- understand that the way
things were done five or ten years ago is very different from how they are
done today (or will be done five or ten years from now). Responsibilities
change, job assignment change, work processes change. And this change
is continuous--- a part of the job--- rather than temporary. Nevertheless,
people often resist change because it requires them to modify or abandon
ways of working that have been successful or at least familiar to them.
To manage change, executive and managers have to envision the future,
communicate this vision to employees, set clear expectations for
performance, and develop the capability to excite by recognizing people
and reallocating assets. Of course, this is easier said than done. There for
all managers, including those in HR, have an important role in facilitating

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 change process, particularly in helping communicate business needs to
employees and in listening to employees concerns. (1)
- 2.3 Developing human capital
The idea that organizations “compete through people” highlight the fact
that success increasingly depend on an organization’s ability to manage
human capital. The term human capital describes the economic value of
knowledge, skills, and capabilities. Although the value of these assets
may not show up directly on a company’s balance sheet, it nevertheless
has tremendous impact on an organization’s performance.
Competitive advantage through people
While people have always been central to organizations, today they have
taken on an even more central role in building a firm’s/industries
competitive advantage. In fact, a growing number of experts now argue that
the key to success is based on establishing a set of core competencies---
integrated knowledge sets within an organization that distinguish it from its
competitors and deliver value to customers. Core competencies tend to be
limited in number, but they provide a long-term basis for technology
innovation, product development, and service delivery. (4)
Organizations can achieve sustained competitive advantage through people
if they are able to meet the following criteria:
1. The resources must be of value. People are a source of competitive
advantage when they improve the efficiency or effectiveness of the
company. Value is increased when employees find ways to decrease
costs, provide something unique to customers, or some combination
of the two. Empowerment programs, total-quality initiatives, and
continuous improvement efforts at companies such as internationally

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 designing to increase the value that employees represent on the
bottom line.
2. The resources must be rare. People are a source of competitive
advantage when their skills, knowledge, and abilities are not equally
available to competitors. Large companies invest a great deal to hire
and train the best and the brightest employees in order to gain
advantage over their competitors.
3. The resources must be difficult to imitate. People are a source of
competitive advantage when employee capabilities and contributions
cannot be copied by others. Big companies are known for creating
unique cultures that get the most from employees (through teamwork)
and are difficult to imitate.
4. The resources must be organized. People are a source of competitive
advantage when their talents can be combined and deployed to work
on new assignments at a moment’s notice. Teamwork and cooperation
are two other pervasive methods for ensuring an organized workforce.
These four criteria highlight the importance of people and show the
closeness of HRM to strategic management. In recent years it appears
that HR expenditures are now viewed as a strategic investment rather
than simply a cost to be minimized. Because employee skills, knowledge,
and abilities are among the most distinctive and renewable resources
upon which a company can draw, their strategic management is more
important than ever.
Human capital and HR
Human capital is intangible and elusive and cannot be managed the way
organizations manage job, products, and technologies. One of the reasons for
this is that the employees, not the organization, own their human capital. If

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valued employees leave a company, they take their human capital with them,
and any investment the company has made in training and development
those people is lost.
To build human capital in organizations, managers must continue to
develop superior knowledge, skills, and experience within there workforce.
Staffing programs focus on identifying, recruiting, and hiring the best and
the brightest talent available. Training programs complement these staffing
practices to provide skill enhancement, particularly in areas that cannot be
transferred to another company if an employee should leave. In addition,
employees need opportunities for development on the job. The most highly
valid intelligence tends to be associated with competencies and capabilities
that are learned from experience and are not easily taught. Consequently,
managers have to do good job duties and requirements are flexible enough to
allow for growth and learning. (5)
Beyond the need to invest in employee development, organizations have to
find ways of using the knowledge that currently exists. Too often,
employees have skills that go unused. If the grater data base in the company
is housed in the individual minds of the associates of the organization, then
that is where the power of the organization resides. These individual
knowledge bases are continually changing and adopting to the real world in
front of them. We have to connect these individual knowledge bases
together so that they do whatever they do best in the shortest possible time.
Employee empowerment
Job enrichment and the job characteristics are specific programs by which
managers or supervisors can formally change the jobs of employees. A less
structured method is to allow employees to initiate their own job change
through the concept of empowerment. Employee empowerment is a

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technique of involving employees in their work through the process of
inclusion. Empowerment encourages employees to become innovators and
managers of their own work, and it involve them in there jobs in ways that
give them more control and autonomous decision-making capabilities.
While defining empowerment can become the first step to achieving it, in
order for empowerment to grow and thrive, organizations must encourage
these condition:
 Participating. Employees must be encouraged to take
control of their work tasks. Employees, in turn, must care
about improving their work process and interpersonal
work relationship.
 Innovation. The environment must be receptive to people
with innovative ideas and encourage people to explore
new paths and to take reasonable risks at reasonable
costs. An empowered environment is created when
curiosity is as highly regarded as is technical expertise.
 Access to information. Employees must have access to a
wide range of information. Involved individuals decide
what kind of information they need for per formation
their jobs.
 Accountability. Empowerment does not involve being
able to do whatever you want. Empowered employees
should be held accountable for their behavior toward
others, producing agreed-upon results, achieving
credibility, and operating with a positive approach.

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 Chapter three
Case study “Jacob steel manufacturing factory”

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3.1 Back ground:
Proportion to our experience during the thirty years in the steel trade (1978-
2008) and the largest iron markets in Sudan (The guard) and the impetus to
accelerate progress of industrial and urban development underlying the
country was necessary for us to be one of the leading contributors in this
process in order to achieve sufficiency self-reinforcing iron and good work
on to be one of the countries exporting to these important items that become
difficult to do without them in light of the progress of urban revolution in the
region, particularly in third world countries and developing countries that
seek to progress and keep pace with developed countries.
Project name: Jacob Factory for Iron and Steel
Owner: Jacob International Investment Co. Ltd.
(James Muhammad Ali - Chairman of the Board and Director-General
- Sudanese nationality)
3.2 Objectives for which the project is
1 / Production of rebar local world-class high-quality competition
importer and excel on it.
2 / To provide competitive price in order to serve all segments of society.
3 / To ensure that all standard sizes required and as recommended by the
Standards Authority of Sudan.
4 / work in order to reach self-sufficiency and we hope to export the
surplus.
Production capacity: --
• The factory system is a rosy one start and achieves productivity ranging
between 100 - 150 tons per day.
• seek to work 3 shifts system to achieve higher productivity.

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Product: --

-- :Quality
The quality of the product is the most important elements of marketing
of the product and then establish our presence in the market was that we gave
this side of specifications and standards and quality of the necessary attention
by creating a special lab to examine the quality of the product prior to
submission to clients and periodic examination of a specialized laboratory in
this area [represented in the College of Engineering Laboratory - University
of Khartoum] as a neutral trusted by the client and the issuing of certificates
.of quality enhance our credibility in dealing with our customers

RAW:
Are imported iron ore from the State of Ukraine - leading iron and steel
industry in the world - with high quality and are testing and sampling

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laboratory, University of Khartoum, Department of Chemistry for the
General Authority for Standardization and Metrology of Sudan and to issue
a certificate of quality.

Address:
Sudan / Khartoum - Jabra box 35 South local market
Tel: 739653 120 00249 - Plant
P: 118351 155 00249 - Plant

Distribution centers:
Tel: 461132 183 00249 – Al-Sajanna
P: 460351 183 00249 – Al-Sajanna
Tel: 474024 183 00249 – Al-Sajanna
Email: Jacob_steel_sd@yahoo.com www.jacob-steel.net

After the experience that lasted almost thirty years in the steel trade (1978
- 2008), in the biggest markets in the steel trade in the Sudan (The guard)
and we just love excellence, and nothing is being distinguished, we managed
to outdo ourselves settled Steel Rebars and add a new number in the field of
industry and achieving logo-making in the Sudan for a commodity I daresay
it is one of the important commodities involved in the formation of
infrastructure projects in the giant building and construction of dams and
bridges, residential towers, service and so forth.
Hello to you in:
Jacob's International Investment Limited
Founded Jacob International Investment Limited in 2006 under the
Companies Act of 1925, a private limited liability company to operate in the

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field of iron and steel industry in all its forms and scope of global trade,
import and export. Is the owner of the Name of the factory Jacob Iron and
steel works in the production of rebar in various sizes and high quality
specification, according to the specifications and standards of Sudan.

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 Chapter four

Data analysis and discussion

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This chapter is devoted to the analysis of the research; the data was
obtained through a questionnaire which was answered by 30 labors
working in Jacob factory for ion and steel. The questionnaire includes
10closed-ended questions, in order to investigate the application of the
development concepts.

Q.1
You work for the organization for more than 3 years

3 years working

Labors Percentage
No.
Yes 26 88%
Yes
No
Total

No 4 12%

Total 30 100%

This is a good indicator for the standardization and the low turn over rate
percentage for labors in the work.

Q.2
Hiring in the factory is through testing and selection

Hiring in the factory is through testing

and selection
Labors Percentage
No.
Yes 30 100% Yes
No
Total

No 0 0%

Total 30 100%

Selection according to the educational certificates, previous experience in the field,

and other related factors. And testing is through applying these experiences and
test them in the field.

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Q.3
You take training and practices before start working

training and practices before start

working
Labors Percentage
No.
Yes 30 100% Yes
No
T otal

No 0 0%

Total 30 100%

This is because machines differs in its origin and how it works so, it is important to
learn the labors how to deal with the machine they are dealing with.

Q.4
Training and development is in a continual basis to update the industrial
development

Training and development is in a

continual basis
Labors Percentage
No.
Yes 25 75% Yes
No
Total

No 5 25%

Total 30 100%

This may be because the majority of work areas within the factory need high skilled
labors with continual up-dating acting. Also the industry always has new machines
introduced and the factory have to up-date the work to insure accuracy and high
quality presentation.

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Q.5
The wok process match your ability and vision

ability and vision matching

Labors Percentage
No.
Yes

Yes 30 100% No
Total

No 0 0%

Total 30 100%

The work environment has its affection in the work. Here we can feel the
satisfaction of labors which reflect in the production process.

Q.6
Technological development in the factory increase your productivity

Technological development with

productivity
Labors Percentage
No.
Yes 30 100%
Yes
No
T otal

No 0 0%

Total 30 100%

Machines differ in its control and usage. To keep this percentage in a high level, the
continual up-dating of knowledge of using new machines is required.

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Q.7
The policies of motivation, vacations …etc. is good in your opinion

policies of motivation, vacations

…etc. is good
Labors Percentage
No.
Yes 30 100% Yes
No
Total

No 0 0%

Total 30 100%

That is because it encourages and reinforces labors to increase the productivity and
to keep using of equipments in the right manner without mll which help in
development in a large scale.

Q.8
In case, there is any comment or request is the response from management come
quickly
quick response

Labors Percentage
Yes
No. No
Total

Yes 30 100%

No 0 0%

Total 30 100%

This indicate that the management concern with anything that may cause delaying
for the work and tries to resolve it as quick as possible ( avoid problems may occur
delaying the process of working which may be costly for the administration) ,
another indicator is that the successful leading for the responsible manager of labors
by putting labors in his first priorities.

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Q.9
You feel satisfied with your job

satisfied with your j ob

Labors Percentage
No.
Yes

Yes 30 100% No
Total

No 0 0%

Total 30 100%

The application of the development in the factory is matching the labors

expectations and the level of satisfaction.

Q.10
Your advice is continue with the same rotten for the coming years

advice is continue
Labors Percentage
No.
Yes
Yes 30 100% No
Total

No 0 0%

Total 30 100%

Continuous revision of the feed back for labors shows you what is going on (if they
are satisfied or not)

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 Chapter five
Recommendation and conclusion

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5.1 Recommendation based on the findings:
From the data obtained through the questionnaire conducted in the case
study factory (Jacob) after the analysis of these data I arrived at the
following recommendations.
First, I recommend that the company should make written policies and
procedures in HR department handle and signed by labors to insure
standardization of work. Also make refreshment and/or revision for these
policies in annual basis.
Second, training and learning have to be continuously that is fact and
applied well. My suggestion is to make international exchange labors
opportunities i.e. by international agreements between factories that will
improve and insure there are more and more skills received. This point also
helps the country development of labors.
Third, I recommend that the factory have to choose the suitable and the right
time of changing or updating machines to increase the production level and
increase the competitive advantage in the market share.
Fourth, I in monthly basis let labors have meeting with the supervision of
management talking about the problems that face the work, giving
rewards,...etc. by doing so the HR department can know the feed back of
there suited policies.
Fifth, I recommend that the HR manager should always keep eyes on what is
new in the personnel management world and apply what’s matching the
work to insure constancy in development of people.

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5.3 Conclusion:
The study is about the human resource development in manufacturing sector
and how the factory management deal especially with labors by applying the
three main issues that have to be fulfilled to insure this increasing in this
sector which are,
- Standardization of the system in human resource management.
- Continuity of the system
- Satisfaction of the system.
To determine if the factory management (HR department for labors) is
meeting the best managerial activities in dealing with labors, case study
approach is used to identify human resource management used by (Jacob).
During a factory visit, a direct interview with the factory human resource
manager (the biggest labor) questions is conducted to investigate the
application of the best management practices. Generally it was found that
(Jacob) factory has to make written polices of the dealing with labors and
handle to them, make international agreements with global factories in
exchanging labors to improve skills continuously, choose the right time in
up-dating machines to increase productivity, meeting with labors to discuss
what is going on with them in the field and solve problems if founded,
always keeping eyes on what is new in the HR management world…

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Appendix

Page 33 of 36
 Questionnaire
‫بسم ال الرحمن الرحيم‬
Canadian Sudanese College

Faculty of Business Administration

This information will not be disclosed for any other company or any other
academic institution. It will solely be used for the purpose of this research.
And it will remain confidential.

1. time duration of work is more than 5 years

Yes
No
2. hiring in the company is through testing and selecting
Yes
No
3. you take training for what will perform
Yes
No
4. there are regular training sessions to adapt new technology
Yes
No
5. the work process match your ability and vision
Yes
No

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6. Technology development within the organization has an impact in
increasing your productivity
Yes
No
7. the policy of motivations, vacations, . . .etc are satisfied
Yes
No
8. in case, there is any comment or request is the response from
management come quickly
Yes
No
9. You feel satisfied with your job?
Yes
No
10. I advice the company to continue with this effort for the coming years
Yes
No

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 List of references

1- Managing Human Resource 13th edition by BOHLANDER

SNELL 2005
2- Human recourse management 10th edition by GRAY
DESSELER 2001
3- The Talent Solution by ED GUBMAN 1999
4- Various internet web sides (notes by Ron DeWitt and others)
5- Sources from lectures:
Lectures given by: Miss Saher Said, Canadian Sudanese College

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