Services shoes industry

Services shoes industry4

INTERNSHIP REPORT ON SERVICE INDUSTRY

Internship Report submitted to the Faculty of Management & Administrative Sciences in Partial Fulfillment of the Requirements for the Degree of Master of Business Administration.

BY

Program Session: MBA(6th semester)

UNIVERSITY OF GUJRATDate of Submission 27 june 2014

Signature of Program Coordinator ____________

Name of Program Coordinator ___________________

In the Name of

Most Merciful and Compassionate the Most Gracious andBeneficent whose help and guidance I always solicit at everyStep, at every moment.

ACKNOWLEDMENT

To Him belongs the dimension of the Heavens and the Earth, it is He who gives life and death and He has power over all things. (Al-Quran)

All praise to Almighty Allah, the most merciful and compassionate, who give me skillsand abilities to complete this report successfully.

I am really pleased here to acknowledge the sheer efforts of my family and teachers whoare always been a source of encouragement for me in the completion of my internshipreport at Service shoes industry ltd Gt Road Gujrat.

I would like to thank my supervisors in the industry during my internship period of 6 weeksHere in Service industry.

I am thankful to all my staff members, I found everyone very cooperative and helpful forproviding me the Theoretical and practical knowledge about the functions andoperations of the organization.

Then I would like to thanks my internship adviser and supervisor Mr. Saleem Nawazfor the valuable advice and support he has given me in writing of this report.

Executive Summary

Internship Report submission is an essential requirement of MBA. It is important as course subjects. For my internship I have chosen a Service industry. I have done my internship in service industry ltd Gt Road Gujrat.

In this report I am going to discuss about products and services , all departments of industry, fields of work, economical factor , pest analysis of industry, then I am going to write about my learning and recommendations for industry.

I worked with lots of attention and motivation here and kept a deep eye on its operations and tried to give my best on whatever I was given by my supervisors.

During my internship I have found that the essence of industry is to caring customers at your best and solving their problems as soon as possible and provide them with better solutions and recommendations.

Finally it concludes some of the recommendation for the industry on the basis of my observation at work. It was a good learning and working experience that is going to add in my future professional life.

Table of Contents

Contents Page No# Chapter-lIntroduction to Report1.1 Background Of The Study 71.2 Purpose Of The Study 71.3 Nature Of The Study 71.4 Objectives Of The Study 71.5 Methodology Of Research 8 Chapter-2Overview of the Organization2.1 Nature of business 8 2.2 History Of service industry 102.3 Factories 10 2.4 International business 112.5 Reward honors and success 122.6 Product lines of service 122.7 Brand partnership 15 2.8 Franchising 152.9 Competitors 152.10 PEST Analysis 16 2.11 Contribution 182.12 Responsibilities 18

Chapter-3Organization structure 3.1 Organizational hierarchy chart 203.2 Management of sil 21 3.3 Number of employees 21 3.4 Main office 22 3.5 Introduction to all departments 23 3.6 Comments on the organization structure 28 Chapter-4 Internee work4.1 Internship period 284.2 Internship Department 294.3 internship schedule 294.4 Supervisors 294.5 weekly time table 294.6 Detail description of internees department 33 4.7 Human resource department 34 4.8 Detail description of activities performed by internee 37 4.9 Detail description of activities performed by internee in HR department 37 4.10 HR information system 374.11 Summary of the learning 39

Chapter-5Conclusions5.1 summary of key conclusions 40 5.2 General observation about the sectors 40 5.3 Management style 405.4 Swot analysis 42 5.5 Recommendations 455.6 References 46

Chapter No 1Introduction to Report

1.1 Background of Study.It is the partial requirement of university of Gujrat to do the internship and submit the report on activities and learning we got from the organization, to the Faculty of Business of management and Administrative Sciences for the degree of Bachelors of Business Administration. I am interested in specialization in HRM, so I did internship in HR and IR Department.1.2 Scope of the organization.Service industry Limited is a large and well reputed organization in Pakistan. It also has well established HR system and department. So, it was a good opportunity for me to involve in Human Resource Department of a huge and well established industry and to know how a manage workforce.1.3 Purpose of the organization.The main purpose of the study in hand is to gather the relevant information to compile internship report on Service Industry Limited Gujrat and practical training about some operations of an organization. My Aims of doing internship are: To work practically in an organization. And correlate my class room knowledge with reality. To develop interpersonal skills. To get knowledge about the organizational environment. To get awareness with the management work. To acquire working experience for my future career. To develop human and hardworking skills1.4 Objectives of the organization.Following are the objectives behind my Internship at SIL.

To complete partial requirement for degree. It is our course to do 6 weeks internship in a well reputed organization. Learn the practical activities of HR department. Get some field experience about job. Check that how bookish knowledge implements in practical field. And what is the difference between theory and practicality. Enhance the confidence related to field. Work with different background of people. Develop managerial skills.1.5 Methodology of the organizationI used both Primary and Secondary data collection methods to gather information for the preparation of internship report. PrimaryI collected the data from the employees of the department with the help of discussion. I used my observations to learn activities. I converted my practical knowledge gain at workplace and observed patterns into written form. SecondaryI also collected data from the website of Service Industry Limited, Annual Reports and magazines. I used some other relevant websites as well.Chapter No 2Overview of the Organization2.1. Nature of Business : Service is the leading manufacturer and retailer of footwear in Pakistan. Service Industry is well known for its consumer products and its contribution to the diversified Industrial growth of the country. Service Industries Limited is a flag ship company of the Group. It operates two modern shoe factories. The two factories are producing the Following products. All categories of leather footwear and sports shoes.

Canvas shoes of Men, Women and Children. Rubber Sandals and Slippers Safety shoes and Footwear for defense force Canvas shoes of Men, Women and Children. Rubber Sandals and Slippers Safety shoes and Footwear for defense force.The company's registered brand name is 'SERVIS'. It is the largest exporter of footwear From Pakistan and has maintained its top position. Service footwear is available Throughout Pakistan at fixed price through a chain of 258 retail stores and 15 whole Sale depots run by Service Sales Corporation Lahore (Pvt.) Ltd.

In addition to the companys own retail stores, thousands of shoe dealers / stockiest are selling Service Shoes in the country. Service has been a trend setter in footwear fashion in Pakistan.it introduces colorful joggers for the first time in Pakistan in early eighties. Product innovation has been an important part of Company's Marketing Strategy. New product range is offered twice a year, at the beginning of summer and winter seasons.According to Service.

At the heart of all our endeavors lies the spirit of our countrymen. Servis and its roots are grounded firmly in Pakistan and its people. We understand their needs, their lives and their dreams. Sharing in their moments both big and small, Servis has been their companion in happiness for over 50 years. And with our commitment to constant innovation and uncompromising quality, we endeavor to delight our customers with the very best products and services.Groups of the organization.

Service Group is one of the most respected corporate citizens of the country and has a Rich heritage spanning over half a century. Today the Group is Pakistan's largest Footwear manufacturer and exporter with interests in wholesale and retail sectors. With a growing portfolio of brands and nationwide network that touches millions of lives every day, Service is one of the leading brands in the country. Followings firms are Included in Service Group; Service Industries Limited. Service Sales Corporation (Pvt.) Limited. Shoe Planet (Pvt.) Limited.

2.2 History of the organization.

The Service Industries is a Public Limited Company Incorporated as a private limited company on 20th March 1957 in Pakistan under the Companies Act 1913 and converted in to public limited company on 23rd September 1959, having its registered office located at Lahore.The story of Servis begins with a group of fresh, young and energetic friends who established Service Industries more than 50 years ago. These young men, 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. At that time, they were only manufacturing handbags and some other sports goods.

In 1954, they installed a shoe manufacturing plant at industrial area Gulberg, Lahore. The industry started manufacturing various types of shoes. Later management shifted the factory from Lahore to Gujrat. The organization was then built up in a most organized and scientific manner. The company had opened its own whole sale and retail shops all over the country, enlacing the consumers to buy shoes at fixed prices which were a new trend at that time. Service Sales Corporation is the Groupsmarketing company established in 1959. 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 in Gujrat and Muridke. SIL is also the leading exporter of footwear. Service Sales Corporation (Pvt.) Ltd. (SSC) is today Pakistans leading footwear retailer which is also diversifying into other businesses.

2.3 Factories of industry.

At present the company has the shoe manufacturing factories at GUJRAT and MURIDKE. The Gujrat factory was set up in 1964 and Muridke factory commenced production in 1989. The Gujrat complex consists of four manufacturing units whereas the Muridke complex hosts three production units. The wide range of products manufactured includes Leather footwear, Textile, Cycle, Motorcycle & small car tyres/tubes, Respiratory Anti Gas masks, Medical syringes and water purifiers. There are four factories operating at Gujrat. These are:

Leather Shoe Factory Cycle Tyre & Tube Factory Motorcycle Tyre & Tube Factory RAG DivisionThe factory has highly sophisticated test laboratory manned by qualified and trained personnel. It is here that the further products are developed & tested thus ensuring the success of the company. Leather Shoe Factory and MCTT are ISO 9001 certified where as other companies are under process. Each factory comprises of about five hundred to thousand workers depending upon the workloads. The factorys peak season starts from September to April. During this period, the factory hires extra workers and lays them off after the period once the production is normal.2.4. International Business.

Servis has not only captured local market but also exporting its products internationally.SIL is well recognized in domestic and international market because of its quality products and innovation. It is serving its foreign customers since 25 years. They design products according to the customers choice. Servis technical experts regular attend formal trainings at internationally recognized design schools. Computer aided design and manufacturing tools combined with the best practices at par with global standards are used. With a major focus on European market we follow all the prerequisites of EU standards.The major clients of footwear with major brands are as follow

U. K. Germany Denmark Holland France Italy

With their rich experience in exports, Servis is now moving towards retailing globally. They have started establishing brand network in UAE, Qatar & KSA (Kingdom of Saudi Arabia). Our brands are available at leading hyper marts like Carrefour, LuLu and K.M Stores in Dubai. Our highly motivated team is exploring international frontiers aiming to make Servis a globally acclaimed brand.

2.5 Reward honors and Success. Service Industries Limited (SIL) is a public limited company listed in Karachi and Lahore stock exchanges. It is purely engaged in the manufacturing and sale of footwear, tyre tube and technical rubber products. Company has celebrated its 50 years of great success. Now it is leading footwear brand and retailer in Pakistan. The Company started its journey single retail store and now has more than 400 outlets all over Pakistan and progressing internationally. It exports in Brands in Europe, Middle East and many other countries.It is a great source of pride for servis that Service Sales Corporation has been nominated Emerging Market Retailer of the Year Award by the World Retail Congress. It is one of the most esteemed Awards for any Business. This is a global level competition, with major retailers from all over the world vying for this honor. SSC is the only Pakistani company to be short-listed in any category. Servis has achieved the Brand of the year award in 2008. In domestic market Service offers its unique range of polyurethane shoes, which no competitor has equaled or excelled. Service sports shoes are the most popular brand in the market. The company has been awarded several trophies of awards as an acknowledgement of its pure hard work of dedicated efforts. Servis is the largest footwear exporter of the Pakistan. It has won FPCCI trophy for best export performance six times. Product innovation is the most important element in companys marketing strategy.The govt. appreciated the efforts of the company, for the first time in 1968 when it awarded the Presidents Export Trophy Class I. Since then, the company is the lancets Exporter of manufactured articles; Leather, canvas shoes. Service has been a trend setter in footwear fashion in Pakistan. It introduced colorful joggers for the first time in Pakistan in early eighties.2.6 Product lines of Service.Two major product lines of Servis are FootwearTyres and Tube Footwear Products.Service is continuing its journey on the road to feel good by connecting three generations in the thread of happiness. Service Sales Corporation is responsible for marketing the footwear products in local market. Servis is producing variety of footwear.

Following are its registered Brands in this product line. DON CARLOS.Don Carlos is the first mens mega brand in Pakistan. It is the mens style leader in the footwear industry. The brand features excellent craftsmanship and unique designs with hand-crafted details and cutting-edge quality. It includes casual and dress shoes along with sandals. CHEETAH.Cheetah is Pakistans leading sports and performance footwear brand. It has come to symbolize the sportsmans spirit and passion having no parallel on the ground. The brand offers a variety of sports shoes including Cricket, Football, Tennis, Hiking, Outdoor and Basketball. The brand also includes sport and casual shoes for women a well. It known for its durability and comfort and has won the brand winning award in 2008. SOUL COLLECTION.The brand is casual fashion footwear for women. The product range covers shoes for formal, casual, and party wear. Soul Collection is based on trendy, fashionable and affordable ladies footwear. It is for ladies who prefer graceful appearance and to look beautiful and stylish.

CALZA.

Calza is a cultural brand of Pakistan. It is a brand for those men who accepts challenges of everyday life with a smile; motivated for more, but doesnt forget their background. Calza product range contains affordable slippers, sandals and shoes for varying weather conditions, but mostly used in summer.

LIZA.

Liza is the most acknowledged womens footwear brand in Pakistan. Basically its a casual and a comfort wear shoe, for different occasions and moods of a woman with a happening lifestyle. The product range comprises slippers, sandals, and shoes. It is lightweight, comfortable and stylish brand for smart look.

SKOOZ.

It is boys and girls footwear range specially made for school purpose. These are very light weight and comfortable. TOZ

TOZ is a brand for Kids that brings fun in their world. It includes shoes for boys and girls with animated colors and attractive styling. TOZ product line contains verity of chapels, sandals and close shoes for kids. It requires extra care for ensuring comfort, fit and safety in product design.

Tire and Tubes.

Service has been the pioneer in tires & tubes manufacturing in Pakistan. At present Service is market leader in bicycle tires & tubes and hold solid share of motorcycle tires & tubes market. Major supplier of these products to Japanese motorcycles Manufacturers like HONDA, YAMAHA, SUZUKI, and other local motorcycle assemblers In Pakistan. The major brands of Tire and tube for auto and bicycle are following. Long Life (Auto and Bicycle) Long Life Load (Bicycle) Cheetah (Bicycle) Cheetah Plus (Auto and Bicycle) Hi-Speed (Bicycle) Super star (Bicycle) Racer (Bicycle) Golden Star (Bicycle) BMX Silver (Bicycle) Super Trail (Auto)

Other productsFollowing are the some other products being produced at service industries Limited Gujarat. IV Tube (Surgical) Gas Mask (Defense) Auto Parts (Auto) Hand Grenade Body (Defense) Mine Body (Defense) Tank Track Pad (Defense) Bough wheel (Defense) Footwear for Defense Forces (Defense)2.7 Brand Partnership.

Service is associated with leading international and national footwear brands, and feel proud of it. The availability of these brands at retail stores of Service provides more choice to customers and explores opportunities for company.

Nike Hush Puppies Pierre Cardin (Paris) Urban sole Caterpillar (CAT) ECCO2.8 Franchising.

According to Service entrepreneurship is an economic driving force. So they create ne Opportunities for the business community by franchising, Service helped local Entrepreneurs to grow and succeed. The Service Franchise Program gives entrepreneurs The opportunity to be partner with the Service and begin their own business under the Service name.2.9 Competitors.

The main competitor of SERVIS is BATA. Bata is a Multinational company operating in more than 70 countries, engaged in manufacturing and retailing of shoes. Global presence of company is its strength. Many potential competitors of Servis are following, Brogan Starlet English Shoes Hush Puppies Milli Shoes Hang Tan Slazenger Metro Shoes Stylo Shoes2.10 PEST Analysis.The factors that are beyond the controls of the company are called the PEST analysis. These are the macro environment factors that externally effect the organization thats why they are also called the external factors. These are the political, economic, social and the technology factors. These are discussed below. Political Factors.The political situation of Pakistan is not satisfactory. Due to the rapid change in the Government every government sets its own new trade policies. Following are the effects Of political system on service. High taxation on growing industries like Service. Employment practices, Unions, Associations are very challenging. Political Interference and harassment leave no independence in work. Governments policy on the economy Change in complexion and composition of Legislatures Terrorism.

Economic Factors.

The economic condition of Pakistan can also affect the foreign investors increasing inflation rate make the cost of production high and thus reduce the profit margin of the investor. But now the economic conditions are getting better. Following are some Economic factors. Labor costs Business cycle stage (e.g. prosperity, recession, recovery) Exchange Rate Mechanism Inflation rate Interest rates Efficiency of financial markets Economic growth rate Infrastructure quality Skill level of workforce Heavy operating cost occurs in daily working. Staff Cost is very heavy

Social-Cultural Factors.

The change in the lifestyle of the people affects the growing demand of the footwear products. The change in the lifestyle and needs in different demographics also affect the demand of the customers. Following are the Social and cultural issues faced by service. Changing Life Style Adequate empowerment Social culture (gender roles, etc.) Demographics Joint living and nuclear families Different Age Groups Entrepreneurial spirit Class structure Reach of the media to the population Cultural restrictions to save the money Declining education and work ethics Inadequate accountability

Technological Factors.

Technological advancement in all the sectors of the country has changed the entire socio economic environment. The technology can cause tremendous change in quality and quantity of products and this effect the market position of company. But unfortunately Service industry has less focus toward technology. Inadequate computer facilities. Technology's impact on product offering Lack of networking facilities Online selling network Impact on cost structure Inadequate communication infrastructure

Legal Environment.

Labor Law is the basic legality imposed by the government. Service industry limited is a legal public limited company. It is fulfilling the entire legal requirement for becoming public limited company. It is also satisfying all the legal requirements of workers e.g. all the workers are associated with social security and they are getting every benefit which is legally required b Government of Pakistan. Following are the legal concerns: Restrain on import material Quota polices Restrain on export2.11 Contribution of organization.SIL is contributing a lot of toward economic development. Service factory in Gujarat remove the unemployment in Gujarat and other cities providing jobs also improve the living style of peoples. It is providing jobs to 6000 people. Due to increase the revenue of industries contribute to economic development. Service industries export its main head of generating revenue. Service also pay healthy amount of tax to the government every year. Its provides internship opportunity to number of student throughout the session. Service is also contributing to social development.2.12 Corporate Social Responsibility.

Corporate Social Responsibility (CSR) is the commitment of corporate entity to participate in economic and social development of its employees and society. The goal of CSR at Service Industries Limited is to hold responsibility for its actions and promote a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of public sphere. SIL Practices CSR through the followings: Occupational Safety and Health Environmental Protection Measures Energy Conservation Flood Relief Operations Welfare of Under Privilege Class Consumer Protection Measures Employment of Special Person Business Ethics and Anti-Corruption Measures Contribution to National Exchequer Contribution to community welfare, charities, and causes Free shoes Sponsorships Donations Share Happiness program with collaboration of Shaukat Khanum Memorial Cancer Hospital & Research Center.

Chapter No 3 Organizational structureThe entire organizational authority is represented with the help of Organizational Chart,

which is headed by a Resident Director. The management structure of SIL is as follow.

3.1 Organizational Hierarchy ChartResident Director

General Manager

Chief & Security staffManager H.RManager ProcurementManager I.TManager CostingManager Account

Chief Engineering SupportChief Technical ManagerManager Industrial Engineering

Manager Industrial Relation

Manager Ware House FootwearManager Warehouse tyre

Factory Manager Footwear DivisionFactory Manager Tyre & Tube DivisionFactory Manager Rag Division

C.T.TM.C.T.TP.ULSFProduction ManagerM.Technology support

Planning ManagerPlanning Manager

Production ManagerProduction ManagerProduction ManagerProduction Manager

3.2. Management of SIL.

The visionary leadership and hardworking management team has led SIL to hold this top position in the business arena. The Management comprises ofChairman: Mr. Ahmad JavedCEO: Mr. Omar Saeed

Management Team

Mr. 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)

3.3 Number of Employees

Company was started the operations with few numbers of employees. Now it become group of industry and accounted in large organizations of Pakistan. It currently employs close to 9000 people in its following companies.

Service Industries Ltd Service Sales Corporation (Pvt.) Ltd. Service aid Pharmacy (Pvt.) Ltd.

Service Industries Ltd. is operating number of business but it has two shoe factories, head office in Lahore and branch office in Karachi. The total numbers of employees related to footwear division are more than 8,000 out of which more than 5,000 are working in Gujrat factory and about three thousand at Muridkey factory and reaming at head office and branch office. The Gujrat factory further divided in to three portions first is footwear second is tyre and third is RAG division. The employees ratio among these is 55%, 35% and 10% respectively.

3.4 Main Offices.

The Service factories have their Head Office at Lahore. Their Finance, sales and marketing departments are also working at head office. Following are its main offices.Service Industries LimitedHead Office:

Service Industries Limited Gulberg, Lahore, PakistanFactories.

G T Road, Gujrat. Sheikhupura Road, Muridke, Pakistan.

Service Sales Corporation (Pvt.) Ltd. Head Office:

Service Sales Corporation (Pvt.) Ltd. Gulberg, Lahore, Pakistan.

Product Development Center

Service Sales Corporation (Pvt.) Ltd. Office No. 204, Siddiq Trade Center Gulberg, Lahore, PAKISTANShoe Planet Private Limited

Corporate Office Shoe Planet, Servis House, Gulberg, Lahore, Pakistan.

Servics aid Pharmacy

Servaid Pharmacy (Pvt.) Ltd. 6-D EFU House, Gulberg, Lahore, Pakistan.

UAE Office

Service Sales Corporation Murshad Bazar, Diera, Dubai 3.5. Introduction all Departments.

Service has divided its departments according to functions. Each department is responsible to handle different tasks. It has number of employees being headed by a departments head, which is mostly a manager. The departments are inter-related to each other. Thus the performance of one sector affects the activity of others. Managers have authority, so they responsible for group performance. Following is the list of departments working at Service Gujrat

1. Human Resource Department.

The H.R department plays vital role in the prosperity of the organization. In S.I.L Gujrat the 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 departments. This department receives demand of the employees from the department heads where needs the employees. Then H.R officials evaluate the job with the head of department and after approval by the G.M the H.R assistant manager appoint the person.2. Industrial Relation Department.

This department maintains the record of workers like HR Department. In the Service industries Ltd. Gujrat record of staff is prepare and maintains by H.R and workers record is maintain by IR. This department arranges the classes of newly appointed work in the training school. Three employees are working in this department leading by a Manager. It takes necessary Disciplinary Action against complaints to settle down the disputes and differences. It maintains good relations among employer and workers.3. Production Department.It involves the process of producing the product. In manufacturing concern the largest and most important department is production department. The production department is divided into following departments according to their product and brands they produce and operations they perform Leather Shoe Factory.

Shoe Factory (LSF) is concern with the production of footwear. It is headed by the Factory manager. Further this department comprises several departments and sub departments. In Leather shoe factory main departments are Lasting and PU. In lasting departments assemblies lines produce sandals, chapples and children shoes and in P.U department automatic direct injections machines are used and it made close supports shoes. Other departments included in LSF are: Planning Upper Cutting Upper Closing Assembly Lasting P.U Sole making

Tyre & Tube Department.

The Tyre and Tube Department produces tyres and tubes. It is also controlled and managed by Factory Manager. MCTT and CTT are its two main departments. Its is tough for workers to work in these departments. So the turnover rate is high. Following are its sub departments. Planning Motorcycle Tyre Making Bicycle Tyre Making Motorcycle Tube Making Bicycle Tube Making4. Account & Finance.At S.I.L Gujrat one manger along with the deputy manager and assistant manager is leading the accounts department. Double entry book keeping system is being used by the company. The E.R.P system is being used to run functions smoothly. This department is divided in to two sections. One section is purely accounts in nature while other is dealing with wages and salaries issues. This department deal with wages, salaries, provident fund, budgets, bill verification, payments A/P, receipts A/R, pensions loans day-today expenses and accounts management. The wages to the workers are paid fortnightly while salaries are paid monthly.5. I.T Department.I.T department is working as the system support department for all the other departments so that they can perform their activities efficiently and efficiently. I.T department of the S.I.L Gujrat is responsible to manage all the activities relating to computer systems and database. Basically there is numerous motivation of implementing management information system. This system should be capable to provide the necessary data for decision making immediately to top management, managers and front line managers.6. Costing Department.

Costing department performing very important function it allocate the materials and their quantities to be required for the bulk production and prepare the cost sheet of each article. It is divided in to two sections. Costing Footwear Costing Tyre DivisionDepartment receives the orders from planning department raise bill of material that Includes how much material to be required to produce the order and how much value it carries. It works on the basis of specifications received from model room and standard rates of material received form material management.7. Material Management.

Material management perform vital role in the organization this department made of all type of purchases. Department is divided in two segment local and foreign purchases separately. Local department further divided in to 6 sections that include Leather, Packing, chemical, synthetic, Grinderies and Technical equipments. Moreover working on inventory management and arrange the material timely is the key responsibility of this department. Manager of material management is responsible to ensure the delivery in time and manage the raw material inventory level stable. Whole production is depending on it. Manager of material management is responsible to controlling various sub departments which are reporting to him that are8. Procurement Department.

Procurement department raise the purchase order on the basis of bill of material that receive from costing department and made all adjustment of material to avoid dead stock. Department establish and maintain relations with suppliers and ensure them to delivery within the lead time. Lead time for local purchase is 40 days and for import are 3-months.

Raw material Receiving Room

The receiving room receives and inspects the material to make sure that the material is according to documents enclosed which is called delivery challan. It only ensure the quantity and not quality. Raw material Stores.

Stores are built in the organization to hold the stocks and for safety of material. Material is lying in the stores is very organized manners along with their bin card and computer codes. The stores include chemical store, technical store, leather store, packing store, synthetic store, grindery store, technical store and sole store. Stores receive the materials from the receiving room. Finish Goods Warehouse.

The shoes which are manufactured in the production hall are sent to the finished goods godowns, where they are stored until they are dispatched to its destination there are four stores for the finished goods which are retail store, wholesale, export godown and MCTT and CTT godown.9. Industrial Engineering.

It is new department exist recently in service Gujrat. Purpose to create this department is to measure and improve the output and operational efficiency of the production unit. To check the discrepancies in production hall i.e. in plant or worker output if any found then try to remove it. So that productions not suffer and product can be produce with their full capacity. It has two sub departments Footwear Tyre & Tubes

10. Engineering Support.

It is supporting department chief engineer heads this department with number of engineer and technicians. This department supporting in term of Maintenance of Tyre and Footwear section It comprises Electronics and Electrical division To monitor and controlling the compressor work efficiency To monitor and controlling the Boiler work efficiency Power house working Maintenance of various types of moulds which is used for production Checking and controlling carpentry section.This department is responsible to maintain the all factory asset running smoothly if undertakes preplan maintenance of all the machinery after the specified period. Each department who owns machinery is designated with a team of engineer and technician who keep the machine running.11. Technical Support.

Chief Technical Manager is the head of this department. All material that includes process of chemicals is control by this department. It includes Raw Rubber processing Main Laboratories P.V.C Molding and pressingThere are two laboratories at SIL Gujrat one for shoe division called main laboratory other for tyre division. There are number of qualified technician are sporting him. The laboratory inspects the incoming material which required lab test that they are free from band chemical and recording to their specification12. Quality Assurance Department.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. It is duty of Quality assurance manager look after the claim goods. This department receives these shoes and makes report of its defects and sends to the relevant persons to check whether the claim is justified or unjustified The company ensures that its quality policy is understood, implemented and maintained at all levels of the organization to guarantee maximum benefits and achievements in the shortest possible time.13. Security.

In the S.I.L Gujrat the security department is responsible to keep the law and order inside the factory. They are responsible to handle any misconduct and to keep the eye on the workers to stop theft. This department is being run by the retried major in a much arranged manners. The security staff is appointed at gates and other important places inside the factory. They are responsible to check the vehicles and coming persons. Now automatic security system is installed in the factory close circuits cameras are fixed to check out activities inside the factory.3.6 Comments on the Organizational Structure.

The structure of service industry limited Gujrat is functional. 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. There are very few cases at SIL Gujrat where two or more department are being headed by a single person like canteen and shoe division. Typical functional form of organization has several major advantages that the service is enjoying that are. In-depth development of expertise is encouraged. Employees have clear career paths within their specified function. Resources are used more efficiently. Economies of scale may be possible because of specialized people and equipment. Intradepartmental coordination is facilitated and it improves efficiency. Specialized technical competencies may be developed and may constitute a competitive advantage.There is a long chain of command, each chain member having one or more subordinates there are large number of level like resident director, general manager, managers, Assistant managers, executives, staff, supervisor, and workers. A very short spans of control each member having. Every manager at SIL is trying to keep most of the authority in his own hands; they are not willing to delegate these powers to the subordinates and or at continuous try to increase their power by holding maximum resources. They also keep the key decisions at their own and do not interested to share the key matters with team members.Chapter no 4Internee work4.1. Internship Period.

My internship period at Service industry limited was from 15 july 2013 to 22 August 2013. During this period of six weeks I focused on my work and tried to learn as much as possible.

4.2 Internship Departments.

The following are the departments where I worked as an internee and experienced a goodtime with the Servis employees.

Industrial Relation Department Human Resource Department

4.3. Internship Schedule.

I spend three weeks in Industrial Relation Department and three weeks in Human Resource Department. The HR and IR departments work side by side and their activities are interlinked with each other. But the difference is that IR department performs most of the manual work and HR works on software and Database. Usually activities are started by the IR and after manual work they are shifted to the HR department. But nevertheless HR department has some broad functions as well.4.4. Supervisors.During three weeks spend in IR department I worked with three different supervisors.

Mr. Ghulam Shabbir Bajwa (Assistant Manager IR department) Mr. Muhammad Siddique Mr. Arshad Mehmood In HR department my supervisors were

Mr. Khurrum Murtaza Mr. Hafiz Muhammad Arshad

4.5. Weekly Time Table.

Following was the schedule or time table of mine at workplace, which contains the

summary of my activities and task performed.

1st Week:Supervisor name: Signature: ______

IR departmentMonday15 July 2013I was introduced by the staff, and Mr. Ghulam Shabbir Bajwa gave me brief overview of department & its function.

Tuesday16 July 2013Information and Instructions were given to me about recruitment forms and I learnt how to fill them.

Wednesday17 July 2013I fill up the recruitment form for new workers and issued them these forms after validating all the requirement.

Thursday18 July 2013After having the instructions of medical form, I issued them and gave direction to worker about their medical.

Friday19 July2013I made the list of employees eligible for old age employees benefits as per instructions of my supervisor.

2nd Week:Supervisor name: Signature: _____Monday22 July 2013I did posting on long roll. And made bundles of form to keep theme save.

Tuesday23 July 2013Received recruitment form from new worker and made sure that they are complete as I was instructed.

Wednesday24 July 2013Made the list of all employees holding social security card for their revalidation.

Thursday25 July 2013i Made the files of new employees with another internee. And did posting on nominal register.

Friday26 July 2013Managed and arranged the files of workers according to their serial number.

IR department

3rd Week:Supervisor name: Signature: ______ IR department

Monday29 July 2013I learnt about charge sheet, and wrote the charge sheets against the misconduct of worker. And collected the charge sheets, previously issued and awaited for the answers, from the concerning department.

Tuesday30 July 2013My supervisor explained me how to fill transfer slip and where these slips are moved for necessary further actions. Then I was asked to make some transfer slip.

Wednesday31 July 2013I was instructed about making ten days notice and second showcase notice.

Thursday1st August 2013Difference between termination and dismiss was illustrated to me with different condition.

Friday2nd August 2013I was absent.

4rth Week:Supervisor name: Signature: ______ HR department

Monday5th August 2013Labor day.

Tuesday6th August 2013I learnt how to use Smart Term and HRIS

Wednesday7th August 2013 I was instructed about entering the personal data of new employee in smart term &HRIS.. Then I did practice.

Thursday8th August 2013I entered the data of new workers in Database. And made probationers of new hires.

Friday9th August 2013My internee colleague told me how to approve leaves. And I approved leaves.

5th Week:Supervisor name: Signature: ______ HR department

Monday12th August 2013Eid holiday

Tuesday13 August 2013Eid holiday

Wednesday14th August 2013Eid holiday

Thursday15th August 2013I was absent.

Friday16th August 2013I learned how to prepare daily attendance report. Then I made daily attendance report with hrlp of another internee.

6th Week:Supervisor name: Signature: ______HR DepartmentMonday19th August 2013Independence day

Tuesday20th August 2013I updated the Status of employees who transferred or left the organization.

Wednesday21st August 2013I updated the Status of employees who transferred or left the organization.

Thursday22nd August 2013I made roasters, helped a new internee about the works of HR department.

Friday23rd August 2013 I was Absent.

I performed multiple tasks during my internship period; the timetable contains the major portion of my daily activities.

4.6 Detail description of Internees Departments

Industrial Relation Department

Industrial relation is the department which regulates the relation between worker and the employer. This department is found in big labor intensive organizations. Its major function is the regulation of relations between employer and workmen, by avoidance and settlement of any differences or disputes arising between them. Industrial Relation is one of the most important and beneficiary ingredient for successful industry and it is the part and parcel of the management.

Functions of Industrial Relation Department.

IR performs two types of major functions for any organization.

Within the organization for the benefits of workers Outside the organization, not only for the welfare of workers but also for the goodwill.

Within the organization IR department perform Functions for regulation of relations between the employer and workmen after written agreement between both legal parties.

Ticket allotmentAs per recruitment every worker is allotted with ticket (token no), who appear before IR Para staff, his personnel file is prepared along with long roll which must be presented for the proceeding in favor or against the worker.

Settlement of workers filesIR department make and update the file of every worker that may easily be used in favor of worker while he/she apply for following:

For gaining help from management As a special case for re-employment For omitting or forgiving one month notice Benefits gaining from social security institute For issuance of social security medical card

Provide Benefit to worker

IR department work for employees to facilitate them with different benefits, with collaboration of external bodies. The communications with external bodies on these issues is done by IR department. These benefits include.

Death grant to the deceased legal heirs Scholarships to children of workers, getting education from colleges or universities Marriage grant for those workers whose daughters are getting married Traveling fairs Medical leaves and treatment Administrative work of IR department.

IR department also perform Administrative work as well. Such as

IR attends all layoffs. Approval of demand as per approved strength Verify and attest for workers Appointed as a duty manager Sunday working or gazette holiday Operate complained box Attained phone calls during working hours

Importance of IR department

IR department is a pain killer in any organization; it provides mental relief to both workers and management. It is no doubt; in the absence of this department no industry can run its business effectively. Because if the workers have negative thoughts about the organization, it cannot produce the best brands and more production.

4.7 Human Resource Department

Human Resource Department manages the workforce of any organization. It is the most tough task to manage human rather than managing any resource else. The HR department acts like a bridge between the organization staff and the top management. The functions of HR department are: to attract, hire and retain the workforce of sufficient quantity and quality, organize duties and profiles of each and every personnel, develop welfare policies, monitor and improve efficiency of the staff, solving the problems of staff, payroll management, ensure training of new personnel and taking care of Legal Requirements like Labor Law, Factories Act etc.

Functions of HR Department.

Primary objective of this department is to provide and maintain Human Resources of requisite competency. It also works to complete business effecting needs of the company. HR department is also liable for HR policies that are matched with the business objectives. It is responsibility provide good working environment to employees and resolve conflicts among employees. Following are the major functions HR department is playing in Service industry limited.

Organization strategy

The HR department develops the human resource planning for assessment of current staff available and forecast the future demand of workforce needed. They make staffing strategies and suggest the top management that how human capital affects organizational success. It works to improve the KSAOs of company's bottom line managers and workers. Thus HR strategic management participates in corporate.

Recruitment.

The HR department recruits both the workers and staff. The recruitment process starts with the placement of demand by departments. Mostly recruitment of workers and lower level staff is done internally and references are used. But for the posts of upper level staff and managers, news paper and companies website is used to display ads of jobs. They also consider the relevant available CVs as well. They also can fire the employee for bad performance.

Selection.

They select the employees according to the organizations workforce need. There is a well defined, valid and consistent criterion for selection. For worker eight days trial period and medical fitness is required to be selected. And upper level posts relevant screening tests and interviews are conducted for final selection.

Employee management.

After the selection of new employees the HR department record, manage and update the data in smart term and human resource information system. All the office work in hr department is done on these databases. It also makes the file of top level posts and keep updated them until they are transferred to dead files.

Job Evaluation

The major duty of HR department includes evaluating different jobs according to their ranks, positions, tasks, salaries etc. with respect to their value and worth to the organization. HR department is responsible for listing out the general tasks or functions of every job. Typically, it also includes describing the position and his immediate supervisor whom he has to report.

Compensation structure

The HR department is responsible for compensation structures to set and maintain company wages competitive with other businesses that are located in same area, or fall in the same industry or requires similar skills. They conduct extensive surveys about wages and salaries to maintain compensation costs in line with the organization's current financial status and anticipated revenue.

Reward Management.

Beside Salary and Wages, HR also provide some rewards such as Health Insurance,

Screening.A large pool of CVs is collected. From that pool only six to seven CVs are considered. And they are selected on the basis of: Merit Name of Universities Work experience Performance of employee (if selected through internal recruitment) ReferenceWhen 6 or 7 CVs are selected then HRM call the applicants for test and interviewing.

4.8 Details description of Activities performed by Internee.

IR Department.

I performed following tasks in IR department.

Posting.

Posting is the process of transferring data of new hired worker on the nominal roll register (long Roll). This data is dragged from the recruitment form of the workers. Every long rout contains the record of thousand workers.

Disciplinary Actions taken against the complains.

Warning letter. Charge Sheet. Suspension. Termination. Dismiss.

4.9 Detail of Activities performed by Internee in HR department.

Majority of activities I performed in HR department.

Approval of Leaves. Personal data entry. Employee status Updating. Employees Roster.

4.10 Human Resources Information System.

HRIS is the software that is used in most HR departments to perform the activities of employee management. It is used for data entry, data management, data tracking as it is needed by the department, and payroll management. It works with the support of Database. Every organization has different type of HRIS according to their need. The HRIS being used in Service Industry contains most of the function. But following are the some functions on which I worked during my internship.

Personal management.

Personal.

In Personal we enter the personal data of new employees. This task need keen focus because it is difficult to alter wrong entry, specially the entry of Date of Joining. When the data is entered we say the employee account is activated.

Employee status.

By using this option we update the record of employee. Employee status is updated when he is transferred to another department or when he leaves the industry.

Employee Schedule.

Employee schedule is managed with these options. In schedules there are options of roster feeding and editing. Group roster are also there but I did not worked on it.

Leaves.

All type of Leaves are recorded and approved in this option. When Leave application is

received first leave request is filled then it is approved.

Leave request form Leaves Approval

Attendance.

Manual Attendance

In manual attendance we record the attendance of employee manually if there is

problem in time machine

Attendance view

We can view the attendance record of a particular employee by using this option

Reports

Every kind of reports about employees and departments can be generated. I used

Following reports related options.

Overtime Leaves Employee schedule

4.11 Summary of the Learning.

The internship program was very helpful for me as for as learning is concern. I got many experiences that contributed in my learning. I learnt variety of skills and qualifications as well. I learn how to behave with workers in different situation.

The interaction with employees should be friendly, so that employee can feel comfortable while sharing his problems. Give respect to your workers because they are the ultimate producers of the product. When workers are satisfied then they are loyal with the organization. Organizations success depends on the devotion of the workers. If you are unable to keep your employees satisfied then it is not productive for the organizations.

Another skill I have learnt is the adaptation. The process of adjustment is very tough. I observed the smoothness works are being done in the departments and the Integration of activities with each other.. I have also faced some hard time during my internship which helped me to be responsive and strong.

The important skill that I gained is the skill of management. I learned that how to manage different kind of activities, and workers and how to resolve their queries in order to keep them satisfied. I also learned in different situations which disciplinary actions can be taken. I deeply observed the hiring process of the organizations which helped me to understand the organizational point of view about recruitment and selection.

Chapter no 5Conclusions

5.1. Summary of Key Conclusions.

Internship is very important element in our MBA course. It is imperative for every student of Business to have some practical knowledge; we cannot rely only on books to be a Good Businessman. Internship not only increases our knowledge but also play a vital role for having job in any organization. It is counted as experience of field work. It enables us to face hard time because many of us struggle for their internship, especially when we go for finding the organization of your interest. Internship provides us chance to create links with professional people.

5.2 General Observations about the Sector.

My observation about the companys environment, working, system, and staff is as

Follow.

The security system is very alert and strong in service industry. They are facilitating their employees very well. They have already done a lot of for their workers. Management is very supportive but the lower level staff is no helpful. The coordination between departments is very good. There is no compromise on price and quality of products. HR department is doing very well. They utilizing their workers efficiently to cut down their cost. There are very strict rules of company for their employees.

5.3. Management Style.

Managers handle an internal environment that is commonly called an organization. Here they perform actions that are significant to the success of the organizations. These are called managerial functions relating to the desired outcomes of managerial action. Following are the managerial functions of Servis Company

Planning.

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 Forecast the demand in market Finalize their investment Evaluate the sale margin Feed back

Organizing.

They have centralized organizational structure but quickly pass out their decisions to grass root level. They have fixed employees for a particular job for getting job specialization. They divide the order into small plans and distribute the planning sheet to the different departments. Material date is confirmed before 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.

Leading.

Servis have very effective leadership which involves managing people and the work through the means of motivation. They MOTIVATE employees Provide security and insurance Promotion Provide working environment Better hygienic conditions Free medical facility Free education for their Children Cheap food facility at canteen Commission (over time)

Controlling.

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.

5.4 SWOT Analysis.

The SWOT analysis consists of analyzing organizational strengths and weaknesses and its environmental opportunities and threat. It helps to identify a strategic niche that the organization might exploit. SWOT analysis of SIL is as follows.

Strength.

Product development: Companys main strength is Product development. Our in-house team of shoe designers work closely with the customer to develop customized designs in accordance with their needs.

Online System: SIL has got a well reputed on -line system in most of its branches.

Strong Security System: Service industry limited has a strong security system.

Efficient Procurement department: Procurement department is working very efficiently in transferring the inputs into outputs.

Stable Growth: SIL has stable growth for paying its debts since its emergence.

Quick Response Time: Very important aspect of SIL is its fast services. Everything goes very quickly. They respond the customers very quickly.

Adequate financial resources: The Service group has adequate financial resources to meet their requirements

Quality Management: Because of its quality management, marketing, innovation in products and services they have established a good reputation in the industry.

Employee Benefits and reward: SIL is providing health, pension and transport facilities to its employees.

Local availability: Local availability of raw materials, machinery, parts and skilled labor is also strength of Service.

Qualified leather technologists: Presence of qualified leather technologists in the field.

Business portfolio: Service is producing variety of products that reduces the risk Of company.

Weaknesses

Lack of new products: SIL is not introducing new products these days.

Centralized decision making: The decisions are made by the upper management which is weakness of the SIL, because authority is not delegated to branch level. Manager cannot take initiative regarding different decisions. They cannot work freely.

Less promotional activities: The majority of people are not well aware about the products of SIL. It is due to their very low services of promotional activity.

Lack of Motivation: There is low level of motivation in the employees of the SIL.

Traditional Methods: SIL Management has adopted traditional methods for production and problem solving.

Low grade Technology: Low level of technological up-gradation.

Resistance to change: There is very frequent change in design, technology, Process.

Opportunities

Cost Reduction: Organization can reduce the cost by proper utilization of resources.

Fresh Talent: SIL has great opportunities to target the young talent for their new products.

Replacement of infrastructure: SIL has to replace the old infrastructure with new one for best working environment.

Fresh Graduates: They have an opportunity to focus on fresh graduates of University of Gujrat. Attract them with best employment facilities.

Cheap Raw material: Competition is going to make availability of inputs cheaper and sufficient.

KSAOs: Increased awareness is likely to improve the skill base of the workers.

Threats.

Political instability: Political instability effects because of the quota system the company can be restrict by government to export. Moreover government policies can change because of this instability.

Competition: Competition is going to increase because of setting up modern unit elsewhere.

Technology: Technology can impose a major threat unless it is changed/ modernized.

Changing Trends: Fast changing fashion trends are difficult to adapt.

Dynamic environment: The changing business environment is always a problem for our business.

Price: No compromise on Price is also a threat for Service industries.

5.5 Recommendations.

On the basis of my observation I would like to suggest some recommendations to the SIL Gujrat.

Company can expand its operations to Middle East market it has the chance to become multinational due to shift in politics in Middle East. Using the internet and E-commerce technology to drastically cut costs the management is reluctant to consider roll of information technology factor in reducing cost. Special incentives should be given to Head on Eid and on other special days should be given to the workers. Different training courses should be arranged for the up lifting and improving the quality of work for employees They provide transportation facility to only female employees I think male shouldalso be provided with conveyance convenience. This will create the easiness forworkers and reduce the wastage of time. There should be a proper accommodation for the vendors and visitors. There is also a problem of work overload for the employees and it should be control properly so that the employees are motivated. It was also observed that distribution of work load was not proper. So, the duties and tasks should be rearranged for the staff. They should have to decentralize the management decision. That will build truston low level managers and they will be confident. The HR department should arrange the programs for the motivation of employees. The selection of employees should be on merit and not by the references. They should have to induct some fresh and energetic staff by replacing the oldEmployee.

6. References.

http://www.servis.com/page/the_group ( 14 July 2013 10:12 A.M)

http://www.servis.com/page/the_history( 16 July 2013 12:02 A.M )

http://www.servis.com/page/FRANCHISING(16 July 2013 12:12 A.M)

http://www.servis.com/page/BRAND_PARTNERSHIP ( 20 July 2013 9:00A.M) http://www.servis.com/page/the_brand ( 23 July 2013 12:00 A.M)

http://www.servis.com/page/sil (26 July 2013 11:15 A.M)

http://www.servis.com/page/financial_results (8th August 2013 9:10 A.M)

http://www.servis.com/contact( 17 August 2013 10:00 P.M)

http://www.servis.com/page/ssc ( 18 August 2013 03:00 A.M)

http://www.servis.com/page/CSR(20 August 2013 9:00 A.m)

http://www.servis.com/page/GLOBAL. ( 22August 2013 11:00 P.M) http://www.servis.com/page/CAREER. (23August 2013 01:00A.M)

FAMS