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TRA
CT
Nish
at
Textil
e
Mills
Ltd.
is
one
of
the
large
st
Textil
e
Wamic Hassan
L1s15mbam0010
Arslan Asghar
L1s15mbam0008
Daim-ur-Rehman
L1s15mbam0009
Hareem
Submitted to: Mam Madiha Hamid
ACKNOWLEDGEMENTS
First of all we would like to thank Allah for blessing us with such knowledge and giving this
opportunity to do this work. He gave us knowledge, skills and ability to perform in such a good
way marking our excellence.
We would like to thank Mam Madiha Hamid for giving us this task and helping us understand
the key points of this task. We are thankful to Ms. Arooj (Marketing Manager at Nishat Linen)
for helping us with gathering the information about Nishat Textile. Finally Mr. Jawad
Bukhari( Manager Operations at LaLa Textile) helped us with understanding the planning
process in textile mills and leadships skills. We are thankful to all other fellows too.
ACKNOWLEDGEMENTS 2
EXECUTIVE SUMMARY 4
HISTORY OF THE ORGANIZATION 4
INTRODUCTION 4
VISION STATEMENT 5
MISSION STATEMENT 5
GOALS & OBJECTIVES 5
OPERATIONS OF THE BUSINESS 5
Planning function 6
Formal Planning Process Five Steps 6
Level of management involvement in planning: 7
PORTERS 5 FORCES ANALYSIS OF NISHAT MILLS LTD 7
Contemporary Issues 8
Organizing function 9
Managerial Hierarchy 9
Types of Departments 10
Organizational Structure 11
Application of Organization Design 12
Leading Function 12
Application of motivation Techniques: 12
Efforts towards development and training of Employees: 12
Application of team work: 13
Contemporary issues in Managing human resources: 13
CONTROLLING FUNCTION 14
SWOT ANALYSIS 15
RECOMMENDATIONS 17
CONCLUSION 18
EXHIBITS 19
REFRENCES 20
EXECUTIVE SUMMARY
Nishat have continued on this journey from cotton export to now marking its roots in 4 core
businesses. Textile, Cement, Power Generation and Banking. Nishat is serving international level
quality range of products with the help of its exceptional management skills. For electricity
generation they have their own power generation plant and they are also selling electricity to
government.
They have five divisions; Spinning, Weaving, Dying, apparel and processing each working
separately with huge capacity. Nishat is also running its product range with flagship stores all
over the country with the name Nishat Linen.
They are serving with the help of different departments and are using well established
management information system (MIS) to integrate the functions of the organization in a wellmanaged way. We promise to deliver despite the odds.
INTRODUCTION
Nishat Mills Limited enjoys the benefits of large scale and uses the modern technology and get
an edge. They have implementation of tactical management and effective policies. They have
market oriented market strategy with aim of continues growth. The company provide various
range of products with company having different production facilities such as spinning, weaving,
processing and power generation.
VISION STATEMENT
To turn the Company into a well-positioned and modern yarn, cloth and processed cloth and
finished product manufacturing Company that is fully resourceful to play a meaningful role on
sustainable basis in the economy of Pakistan. To turn the company into well-developed and
modernized power generating company that is completely resourceful to play its meaningful role
on sustainable basis in the economy of Pakistan.
MISSION STATEMENT
To give its customers quality products and also discover new marketplace to expand sales of the
company with good management and foster a sound and dynamic team, so with the purpose of
achieving optimum prices of products of the company for sustainability and equitable growth
and prosperity of the company
Planning function
Formal Planning Process Five Steps
Nishat linen goals are set by top management and then divisional plans are made to
achieve those goals such as Production plans, Quality assurance plans, Marketing plans
etc.
Step 1: Situational Analysis:
Nishat linen have different product lines such as Pret, Nisha, Naqsh, Kids, Homelinen etc. so
they plan accordingly for each product line and gather information about customers and then
check for trends going on and what competitors are doing then they forecast and gathers all
related information with respect to their product and different trends.
Step2: Alternative goals and plans:
They are well established at this point so they dont need to have much alternative plans they
create just 2-3 plans all are made very carefully and with smart objectives.
Step3: Goal and plan evaluation:
Nishat uses flagship stores, exports and sell online so they just need the plan with the best
possible reach. The one that satisfices the goals set by top management.
Step4: Goal and Plan Selection:
The product designs that will appeal the masses with best budget and marketing plan is selected
whereas branding plan is most important these days in the competitive market with other brands
such as Khadi, Warda and LaLa.
Step5: Implementation:
Finally the plan is set in action each line of seasonal range is produced and launched with proper
plan execution. Our own distribution channel is very strong it helps us in organizing our work in
a better way.
Step6: Control:
After implementation we keep in contact with our store managers on weekly basis getting reports
about customer response and if we dont get much response we put more in advertisement and
check our design range with that of our competitors. Plans are made by top management in
Design heads, Marketing department head, Apparel division head.
Contemporary Issues
There are a lot of temporary issues faced by organizations. Time bound is the major issue
managers must know their project timelines and how to finish their tasks in time or otherwise
overall production will face delays.
Another issue is availability of resources managers must be aware of resources available and
their consumption and their restocking and delivery time.
Miscommunication takes place creating a lot of major problems at all levels.
Managers must know the abilities of their team and plan accordingly.
Legalities related to plans made must be known some plans face legal issues afterwards and
suffers due to faults in research phase.
Technological role must be kept in mind and its capacity plans made without these things in
mind creates problem to meet targets or overexert the usage of resources.
Financing is important plans made without keeping in mind the finance sources are useless.
Plans should be feasible financially.
Organizing function
Managerial Hierarchy
CEO
Director
Processing
Manager
Folding
Manager
Processing
Dy. Manager
Folding
Dy. Manager
Processing
Printing
Dy. Manager
Processing
dying
G.M Local
Marketing
Incharge Fair
Pricing
Dy. Manager
Quality
Sr. Assistant
Manager
waste
Assistant
Manager fair
pricing
Assistant
manager
quality
assistant
manager
waste
Exhibit 1.1
Nishat textile mills follow the formal structure and there is chain of command and
centralized decision making. CEO with his subordinates such as G.M Sales and
Division heads such as Director Processing are top managers while the managers
processing or manager fair pricing or manager of regions or areas are middle
managers. The managers of factory and managers at offices are low level
managers. Nishat strictly follows the formal structure with respect to authority.
Types of Departments
Exhibit 1.2
Human
Resource
Manageme
nt
Internal
Audit
Corporate
Sectariat
Finance &
MIS
Production
Supply
Chain
Manageme
nt
Marketing
Organizational Structure
Exhibit 1.3
Leading Function
CONTROLLING FUNCTION
Control Process is very important for the smooth running of the company there are e steps of
control process.
Step 1: Measuring actual performance:
Manager are required to measure the performance of the employees. Managers at Nishat keep an
eye on the employees because they have monthly evaluation system. They keep observing the
employees from time to time but there are flaws in observation. Then they check the work and
get data on work done, Managers also get information from other employees. In the final phase
managers get written reports about performance of employees.
Step 2: Comparing actual performance:
Manager have set some standards for instance the amount of work done at Nishat is scheduled in
1 hour, managers compare the work done with the standards they have set. If the work scheduled
for 1 hour is done in one hour or not. Manager compare actual work performance with standards
and compare the results to know if there is any problem or everything is going as planned.
Standards are a measure of smooth working of organization. They evaluate if work is overdone
or underdone and make decisions accordingly to take corrective actions or give rewards.
Step 3: Take Managerial action:
Managers after evaluation take corrective actions. They decide if they should take immediate
actions to correct the problem or need to take decisions to solve the problem from the base
sometimes it is not the fault of the employee but the standards set are wrong such as over
expected quota etc.
SWOT ANALYSIS
Strengths
Technology is its major strength as it uses the modern international standard technology
for production of world class products.
Nishat have strong security system for its employees especially for labor which retains
the employees and give them satisfaction.
Nishat is a part of a large industrial group having its roots in different industries so it have
strong financing position.
It workforce is highly motivated and best management team with great working
environment.
They have their own power generation plants.
Quality control have best machinery to keep check on the quality of their products on
different stages.
Nishats ISO certification gives a sense of satisfaction to its employees.
Nishat have Good image in international market as well which gives it more prominent
place.
Weaknesses
The major drawback is Nishat is still following the formal type of organization and its
decision making is centralized. Nishat centralized decision making takes long time and
results in delays sometimes.
Price is high for international market as other competitors are providing products made in
China or Bangladesh while Nishat is making its product in Pakistan with a bit high cost.
Giving high salaries keeps the turnout rate very high which in return results in slow
growth.
Centralization hinders the delegation function which stops the employees to work freely
and be innovative.
International market share is small due to China and Bangladesh share.
Nishat spend more on employees but less on advertisement and promotional activities so
they dont get to attract much in the market.
Opportunities
Exports can be increased with following the procedures laid down by WTO following
international standards and offering products at a competitive prices.
Should implement new ISO standards to capture the international market as they are
more concerned with knowing the in-depth detail of products being provided.
New export zones can be discovered reaching new markets can increase overall
profitability.
Nishat can introduce new products or start new project as people believe in the name of
Nishat so they will have a competitive edge.
Recent brands trend can be used to promote their products more with advertisement as
people now-a-days believe more in brands.
More skilled graduates are stepping in the market and can be hired to skillfully improve
company policies and increase efficiency.
Threats
WTO implementation can be fruitful but if Nishat cannot keep their cost low or maintain
their quality they can suffer heavy losses and lose its place.
Rapid changes in Government policies can be harmful for long planning
Any terrorist incident in Pakistan can cause major unrest in international market which
can impact the marketplace of textile exports.
Increase in competition is a major threat which remains there at all times.
Increase in taxes keeps the company in bad position.
Energy crises is a pest for the profitability of the organization.
Chinese products market penetration challenges the market.
Currency fluctuations makes it difficult to make long term contracts.
RECOMMENDATIONS
These are few recommendation for improving the current condition of Nishat Textile
Mills Ltd.
Females should be promoted in the design division as they having natural esthetical
qualities. They would just introduce new production designs and improve innovation.
Product lines should be expanded with new products range as customers are willing to
buy and there are still wide range of products that can be still used to penetrate new
sectors of garments division such as knitwear etc.
Internal job analysis should be done to know the conditions of the employees working
and improve the system. It will not only result in employees satisfaction but will also
improve motivation level and improve the production.
Males like females should be given transport facility as well because it will save time and
motivate them too.
Medical facility should be given to office administration too not only workforce working
in the mill.
Inventory purchasing should be made better as sometimes there is overstocking making
the funds smaller for other purposes and sometimes understocking which also creates
problems.
CONCLUSION
Nishat textile Mills Limited is one of the largest Textile group of Pakistan having its
root in other industries as well. It still follows the centralized formal system which is
not making things better but slowing the processes and limiting the manager
innovation. Nishat is trying to make itself big in the international market but still
facing some issues with having high cost compared to its competitors.
Nishat is using the latest modern technology to produce the world class products.
Information system is not performing as it should be but management is overall
good so these problems are not so big. Nishat is providing its customers what they
need and quality control makes sure that its quality is not compromised. The major
thing is that at Nishat employees are well motivated although motivation activities
are never enough but still managers are satisfied and are performing well which is
the main cause of Nishat success up till now. Nishat is having some problems but
still having rising sales figures and is expected to be the major component of the
textile industry and be the big time in the international market.
All organizations big or small face problems but it is good management that help
them get out of crises and reach the sky.
EXHIBITS
Exhibit 1.1:
Exhibit 1.1 is about the organizations managerial hierarchy showing the authority levels of
employees and chain of command. There are not much layers and commands come from top
management to low management.
Exhibit 1.2:
Exhibit 1.2 is about different departments at Nishat Textile Mills Ltd.
Exhibit 1.3:
Exhibit 1.3 is about the organization structure it is a matrix organization with divisions and
departments.
Exhibit 2.1:
Exhibit 2.1 is about the control process how control process works in case of different outcomes.
REFRENCES
http://www.nishatmillsltd.com/nishat/pdf/annual15.pdf
http://nishatlinen.com/page/about