Term Report On Engro Foods & Millac Pakistan-Organizational Behavior

ORGANIZATIONAL BEHAVIOR-2012

TERM REPORTORGANIZATIONAL BEHAVIOR ENGRO FOODS & MILLAC PAKISTAN

2012 SUBMITTED TO: MR.AMIN RAJANI SUBMITTED BY: ATHAR ANSARI-13034 ANSARI-13034 ATIYA MURSALEEN-138 MURSALEEN-13829 29 FARAH POONAWALA-13792 SAFEENA YEASEEN-13859

TERM REPORT-ORGANIZATIONAL BEHAVIOR LETTER OF AUTHORIZATION Mr. Amin Rajani Course Instructor Faculty of MBA IOBM Karachi th Date: 19 December 2012 Respected Sir, We have been authorized to prepare a report after analyzing the over all organizational cultures that are prevailing and what leadership styles are being followed in both Engro Foods and Millac Foods. The analysis has been been done according to our understanding of the “Organizational Behavior” learnt during the whole semester. The topic has been finalized under your supervision, as our course instructor for Organizational Behavior.

Sincerely, Students of MBA EXE

ORGANIZATIONAL BEHAVIOR Page 2

TERM REPORT-ORGANIZATIONAL BEHAVIOR LETTER OF TRANSMITTAL

Mr. Amin Rajani Course Instructor Faculty of MBA IOBM Karachi Date: 19th December 2012 Respected Sir, We hereby present our final report on “Organizational Behavior adopted by Engro Foods and Millac Foods ” as assigned by you as a mandatory part of the course. This report presents an in-depth and comparative analysis of the culture prevailed in the organizations stated above. Hopefully, our report will fulfill its purpose and prove to be beneficial for the students and other people w ho need information regarding these particular organizations. We further hope that this report will be up to your expectat ions. Any information or queries regarding the report will be highly appreciated by our team members.

Sincerely,

Students of MBA EXE


TERM REPORT-ORGANIZATIONAL BEHAVIOR ACKNOWLEDGEMENT We are extremely thankful to our teacher Mr. Amin Rajani, who has remained cooperative and encouraging throughout this project. He lent a helping hand whenever we needed and provided us with proper guidance throughout this project even after once been completed. We especially want to thank those who have given their precious time during survey and interviews. This report is a combination of hard work and dedication from our group members, their determination and enthusiasm. They were very supportive throughout the making and the compilation of this report. Hence, we would each like to thank the other o ther for extending their support and seeing this through, together as a team


TERM REPORT-ORGANIZATIONAL BEHAVIOR

EXECUTIVE SUMMARY Officially launched as a fully owned subsidiary of Engro Corporation, Engro Foods Limited is as a stepping stone of the corporation to get entered into the food business. Engro has established state-of-the-art processing units in various cities of Pakistan and has expanded its plant operations. Fueled by a vision to bring to the fore innovative food products packed with quality, value and nutrition, Engro Foods' made its foray into the consumer foods business. Whereas, established in 1967 by renowned Horlicks of England in Pakistan - Millac Foods sees its clients as a valuable asset and employees as the closest knit between services and their deliverance – without mutual coordination, this relationship would never have grown to be this strong. The Company has achieved so much by empowering the human resource because satisfied human resource leads to better production. That is why Millac ensure developing systems that facilitate efficient operations and a complete focus on total quality management. Millac Food is aware that without the trust and capital its stakeholders have invested in the company the Company would never have reached the pinnacle it has today. The purpose of making this report is to analyze the overall organizational cultures that are prevailing and the leadership styles are being followed in both Engro Foods and Millac Foods. The analyzation is being done according to HR practices implemented in both of the organizations.

The report carr ies overall information regarding Engro Foods and Millac Foods. Detailed introduction, organizational culture, business orientation and plant operations have been discussed on the basis of which studies have been further extended to draw conclusion over leadership style followed in both organizations, respectively.

To grasp over the relevant information firsthand knowledge and second hand knowledge techniques of gathering information were consulted. In this regard, the questioners were prepared and interviews were conducted at the office of both Engro and Millac.

During our research we found various differences between the said organizations despite carrying somehow same operations. Later on a comparative analysis has been drawn to provide a lucid understanding to the readers.

The overall attitude of Engro’s management was found people centered and sense of collaboration among employees was found. While management of Millac is somehow business focused.


TERM REPORT-ORGANIZATIONAL BEHAVIOR In last, few recommendations have been made in this report, some of which are even difficult to analyze due to our limitations of time and space. For more information kindly go through the whole document.


TERM REPORT-ORGANIZATIONAL BEHAVIOR Table of Contents

1.ENGRO FOODS COMPANY PROFILE …………………………………………………………………………………………………………………….9 1.2.VALUES-VISION OF ENGRO…………………………………………………………………………………………………….…………………………10 1.3. GOVERNANCE………………………………………………………………………………..…………………………………………………………………11 1.4.OBJECTIVES……………………………………………………………………………………………………………………………………………………….13 1.5. ENGRO FOODS BRAND PORTFOLIO…………………………………………………………………………………………….……………………14 1.6.ENGRO’S DEPARTMENTS……..…………………………………………………………………………………...........................................15 1.7 ENGRO’S OPERATIONS……………………………………………………………………………………………………………………………………..17 1.8 REVENUES……………………………………………………………..………………………………………………………………………………………..19

1.9 CULTURE OF ENGRO ……………………..…………………………………………………………………………………………………..……………..21 1.10 SWOT ANALYSIS ………………………………………………………………………………………………………………………………………………24 1.11ENGRO’S ORGANOGRAM …………………………………………………………………………………………………………………………………27

1.12. COMMUNICATION NETWORK ………………………………………………………………………………………………………………………..28

2. MILLAC FOODS ………………………………………………………………………………………………………………………………………………….. 2.1 COMPANY PROFILE …………………………………………………………………………………………………………………………………………..29 2.2 VISION OF MILLAC……………………………………………………………………………………………………………………………………………..29 2.3 TIMELINE OF MILLAC…………………………………………………….……………………………………………………………………………………30 2.4 MILLAC’S OPERATIONS ……………………………………………………………………………………………………………………………………..32 2.5 MILLAC’S BRAND PORTFOLIO…………………………………………………………………………………………………………………………….32

2.6 SWOT ANALYSIS OF MILLAC……………………………………………………………………………………………………………………………….33

3. ORGANIZATIONAL CULTURE OF ENGRO FOODS &MILLAC………………………………………………………………………………….35 4. LEADERSHIP GRID OF ENGRO FOODS ………………………………………………………………………………………………………………….39 4.1 LEADERSHIP GRID OF MILLAC …………………………………………………………………………………………………………………………..40 5. STRUCTURE………………………………………………………………………………………………………………………………………………………….41 6. BEST PRACTICES…………………………………………………………………………………………………………………………………………………..51


TERM REPORT-ORGANIZATIONAL BEHAVIOR 7. EMPLOYEE ENGAGEMENT…………………………………………………………………………………………………………………………………55 8. CHANGE MANAGEMENT MANAGEMENT ……………………………………………………………………………………………………………………………………..59 9. GAUGING BEHAVIOR…………………………………………………………………………………………………………………………………………62 10. RECOMMENDATIONS………………………………………………………………………………………………………………………………………68 11. REFERENCES………………………………………………………………………………………………………………………………………………………70



ENGRO FOODS 1. COMPANY PROFILE: How we started & grew In pursuit of excellence: our passion for innovation and promise of quality Engro Foods Limited was officially launched as a fully owned subsidiary of Engro in 2004. Using dairy as a stepping stone to enter into the food business, the Company has established state-of-the-art processing units in Sukkur and Sahiwal, along with an ice cream production facility in Sahiwal. Top quality brands like Olper’s, Olwell, Tarang, Omore and Owsum have been successfully launched under the helm of Company’s dairy products. To support these brands and their highes t standards of quality, Engro Foods has

invested heavily in milk processing and milk collection infrastructure. With an acquisition of Al Safa – a fast growing and established Halal meat brand – Engro Foods is now venturing into North American market starting from Halal Foods category. The new organization, Engro Foods Canada Ltd. with a subsidiary Engro Foods USA, LLC, intends to aggre ssively grow the business in this market. With the vision of Elevating Consumer Delight Worldwide, Company’s significant focus will be towards the global

operations in the years to come. Fueled by a vision to bring to the fore innovative food products packed with quality, value and nutrition, Engro Foods' made its foray into the consumer foods business in 2006 with the launch of Olper's, our flag-ship all-purpose milk, which soon became a house-hold name widely known for its rich, creamy freshness, high nutrition content and exciting, vibrant packaging. Since then, we have surpassed all expectations and given the foods business in Pakistan a new direction and a different spin with brands that go beyond the conventional and the ordinary by forging new standards in product innovation. So as we continue to deliver excellence, Engro Foods will continue to bring premium food brands in the market that will exceed consumer expectations in every way, every step of the way...with firm emphasis on our passion for innovation and promise on quality.



1.2. OUR VALUES-VISION 

VISION:

“Aims at transforming the company within the next five years into first a national food industry

giant, then into a regional force and finally into a global player” 

MISSION: “ Build

branded food business to improve quality of life by offering tasty affordable and highly

nutritional products to our consumers while maximizing stakeholders’ value”



ENGRO FOODS AIM: “Dominate

the food business and to achieve this we will settle for nothing less than

the cream”

VALUES At Engro, we support our leadership culture through unique systems and policies which ensure open communication, foster an environment of employee and partner privacy, and guarantee the well being and safety of our employees. Our core values form the basis of everything we do at Engro; from formal decision making to how we conduct our business to spot awards and recognition. At Engro we neve r forget what we stand for. Following are our core values: 

ETHICS & INTEGRITY

We do care how results are achieved and will w ill demonstrate honest and ethical behavior in all our activities. Choosing the course of highest integrity is our intent and we will establish and maintain the highest professional and personal standards. A well-founded reputation for scrupulous dealing is itself a priceless asset. 

HEALTH SAFETY & ENVIRONMENT

We will manage and utilize resources and operations in such a way that the safety and health of our people, neighbors, customers, and visitors is ensured. We believe our safety, health and environmental responsibilities extend beyond protection and enhancement of our own fac ilities. 

INNOVATION & RISK TAKING

Success requires us to continually strive to produce breakthrough ideas that result in improved solutions and services. We encourage challenges to the status quo and seek organizational environments in which ideas are


TERM REPORT-ORGANIZATIONAL BEHAVIOR generated, nurtured and developed. Engro appreciates employees for well thought out risks taken in all realms of business, and for the results achieved due to them, acknowledging the fact that not a ll risks will result in success. 

OUR PEOPLE

We strongly believe in the dignity and value of our people. We must consistently treat each other with respect and strive to create an organizational environment in which individuals are fairly treated, encouraged and empowered to contribute, grow and develop themselves and help to develop each other. We do not tolerate any form of harassment or discrimination. 

COMMUNITY & SOCIETY

We believe that a successful business creates much bigger economic impact and value in the community, which dwarfs any philanthropic contribution. Hence, sustainable business development is to be anchored in commitment to engage with key stakeholders in the community and society.

1.3. GOVERNANCE Our commitment to the highest standards of integrity and transparency shapes our governance framework and processes, which are aligned to the industry's best practices. Every employee at Engro Foods is a part of the governance system and is required to adhere to clearly laid out policies and procedures. 

THE BOARD

The Board is primarily responsible for ensuring the appropriate review of future company plans, good governance and effective control systems to protect shareholder value. In essence the Board establishes corporate strategy and the company's business objectives. It also approves Engro Foods' financial statements and assesses overall performance against corporate plans and objectives. At present the Board includes four independent non-executive directors, four non-executive directors and five executives of the company. The Board strictly follows the 'Code of Corporate Governance' of the Securities and Exchange Commission of Pakistan (SECP) which serves as a guide for formulating company fundamentals and policy framework. A Board of Directors' meeting calendar is issued annually that schedules matters reserved for discussion and approval. The full Board meets at least four times a year for approval of quarterly accounts and for long term planning. 

GOVERNANCE PRINCIPLES

The Board of Directors ensures compliance with the 'Code of Corporate Governance' as issued by the Securities and Exchange Commission of Pakistan.


TERM REPORT-ORGANIZATIONAL BEHAVIOR The Code primarily helps in establishing a system whereby a company is directed and controlled by the directors in accordance with the best governance practices to safeguard the interests of the stakeholders. The Code emphasizes upon openness and transparency in corporate affairs and the decision making process. Following policies encompass some of the different aspects of cor porate governance at Engro Foods:          

Anti-Restrictive Trade Practices Conflicts of Interest Directorships in Other Companies Ethics and Business Practices Gifts & Business Entertainment Health, Safety and Environment Human Resource Management Insider Trading Internal Control System Procurement of Goods and Services


TERM REPORT-ORGANIZATIONAL BEHAVIOR ENGRO’S LEADERSHIP Good leadership brings with it great success! At Engro Foods, we derive our success from the combined expertise, knowledge and skills of our leadership representing a group of highly successful and dynamic professionals, who bring in a wealth of knowledge and experience and steer the company to great ideas that pave the way for new product innovations - and our continued success.

1.4. STRATEGIC OBJECTIVES OF ENGRO FOODS THE 4 DS 

DIVERSIFY: moving beyond the traditional dairy portfolio and explore new categories to delight consumers



DECIPHER : bringing clarity in approach within our dairy portfolio to encompass a wider consumer segment



DISTANCE: the brand portfolio to allow further expansion



DEVELOP: extending physical reach to other geogr aphies for exploring the untapped possibilities



1.5. OUR BRANDS PORTFOLIO At Engro Foods, enriching consumer lives remains our primary focus, first and foremost. All our efforts are geared towards creating food products that can impact consumer lives in a meaningful way, ensuring their health, happiness and well-being day after day …and that is precisely what makes our brands a winning success succe ss in every category of every market that we explore. Sheer indulgence in every sip comes only with the rich creamy thickness of Olper ’s. Give your day a fresh start with Olper’s!

Embrace the lighter side of milk and feel years lighter with our low-fat milk Olper ’s lite, for a guiltfree existence!

Savor the flavor of tradition and enjoy the rich, aromatic flavors of badam, zafran and rose in every sip of milk with Olpers ’ flavored milk!

Enhance the culinary experience with Olper’s Cream – a rich celebration of life at its creamy best.

Experience sheer bliss in a tea-cup with Tarang, our special tea creamer for that perfect cup of tea.

Get nutrition and the best value for money with omung dobala.

Enjoy our heavenly nectars extracted from pure fruits to revitalize you with a much-needed boost, anytime anywhere. Only with Olfrute.



Rise up to a better life with our all purpose dairy brand Omung available at the ultimate price and in the best quality. A dash of Tarrka in your favorite cuisine is all it takes to bring out the flavor of your food and leave you craving for more.

With its rich, creamy taste, high nutrition content and wide-range of chunky flavors get more from your ice-cream with Omore!

Enjoy home-made Lassi in the convenience of a Tetra Pak. Refresh your day with our two delicious flavors.

1.6. DEPARTMENTS 1. Administration Efficient management of all administrative affairs of Engro Foods (Pvt.) Limited is the job of the Administration department. From legal matters to general day-to-day operations of the office, the Administration department ensures that all affairs run smoothly. 2. Finance and Accounts The Finance and Accounting departments at Engro Foods are responsible for the total financial management of the different businesses of the company. From the usual accounting statements st atements and sheets to risk and portfolio management, the team ensures that every rupee coming into and out of the Companies' pockets is properly documented and audited. 3. Human Resource The Human Resource department at Engro Foods (Pvt.) Limited spearheads the recruitment process to ensure that the finest human resource is taken on board atEngro Foods. Resumes of candidates are carefully care fully filed and documented for current or future reference. The department, besides carrying out succession planning, maintains and implements HR policies pertaining to employment, retention and superannuation. Assessing training needs of employees and ensuring adequate training is also carried out by the professional HR team at Engro Foods.


TERM REPORT-ORGANIZATIONAL BEHAVIOR 4. Marketing Consisting of leading marketing professionals of the industry, w ho are graduates of top business schools of Pakistan, the Marketing Department ensures that from product need identification to product development, launch and postlaunch, all strategic decisions are made based on authentic information and research. Identifying the target markets, effectively communicating to them and building the image of the brands as well as the Companies, is the job of the professionals running the marketing at EngroFo EngroFoods. ods.

5. Milk Procurement As all of our food products are milk based, the entire Milk Procurement department plays a critical role in defining the quality of the end product that reaches our customers. Ensuring regular collection of fresh and pure milk right from the farmer tothe factory and ascertaining the freshness of milk all across the milk procurement process, is the responsibility of Milk Procurement department, consisting of food Technologists working at the collection centers and vete rinary doctors providing service to the farmers.

6. MIS The MIS department at Engro Foods ensures that all automation is running error-free at all times. Regularly modifying and updating the Company's accounting software is also the MIS team's r esponsibility. 7. Production Modern technology is part and parcel of Production at Engro Foods. The state-of-the-art plant set up near Sukkhar has a processing capacity of more than 300,000 litres of milk per day, making it one of the largest in the country. Professionally qualified human resource efficiently works night and day to maintain highest hygiene standards. 8. Quality Assurance Quality Assurance is strictly followed in Engro Foods. Qualified food technologists at this department ensure that highest quality parameters are adhered to through all ste ps of production and that the products reach the consumers as per promise. 9. Supply and Distribution This department ensures timely and effective distribution of the products to different shops and stores spread all across Pakistan. From transportation management to obtaining route permits and approvals, is done by this department



1.7. ENGRO’S OPERATIONS

Everyday our brands touch the lives of our consumers in a multitude of ways, As Pakistan’s premier foods company

our products deliver quality, value and nutrition to more than 4 million people in over 300 locations across the length and breadth of Pakistan and beyond Our market share cover more than 8 regions and over 310 cities and towns locally whereas our global footprint spans 18 states in United States and 4 provinces in Canada

With each passing year our brands continue to tap new markets to encompass a wider consumer base and a greater market share. Our continued growth indicates our steady expansion across a diverse stream of product categories geographical networks and consumer demographies.



KEY HIGHLIGHTS OF 2Q 2012 DAIRY: • Launch of Omung Lassi in two flavors – Sweet and Salty

ICECREAM: • Introduction of “Buzz” in teen segment with two new SKU’s –

Tiramisu Cone and Strawberry Bliss • Launch of Magic Hat in the kids segment • Consumer promotion with Ice Age 4 on three SKU’s – Dasher,

Jigsaw and Lick-A-Flavor3



1.8.REVENUES





1.9. CULTURE OF ENGRO FOODS 

Engro is Japanese culture organization



Low power distance and open culture.



Engro Foods is working on open door policy



In Engro Foods suggestions are always we lcomed from the employees



Engro has always got the award of highest paying company since many years

OUR PEOPLE 

People at ENGRO FOOD LIMITED are very dynamic and vibrant with an attitudeof challenging the norms, at the same time these people are highly professional, ethical and result oriented.



These are people who want to shine, make a name for themselves and for that they are willing to go the extra mile.


TERM REPORT-ORGANIZATIONAL BEHAVIOR 

People at ENGRO FOODS are driven to achieve greater success they look for new and exciting ways to return value to their customers and shareholders.



There are more than 700 experienced employees and in ENGRO input of every employee is encouraged.



ENGRO is striving to become employer of choice by providing a work place where people feel confident, valued and provided with training.

OUR DREAMS 

ENGRO FOODS LIMITED dreams to be BIG. They want to be a major player in the food industry which is also evident in their vision.



ENGRO FOODS LIMITED wants to challenge the industry norms and surprise whoever has eyes on it

WORKING ENVIRONMENT At Engro, we strive to uphold the tradition of excellence and become the employer of choice. Ours is a workplace where our employees feel confident, valued, and most importantly, inspired. inspired.

WORK LIFE BALANCE We understand the importance of family and appreciate that our employees need to balance their professional and personal responsibilities. It is our intent to make it easier for our employees to manage their work/life balance more effectively. We also encourage our employees to take part in numerous programs aimed at strengthening their overall wellbeing.

EMPLOYEE FRIENDLY POLICIES Our constant pursuit towards the welfare of our employees has led to the formulation of many unique policies, to create a more positive work environment, promote greater gender diversity, provide opportunities for training and development and build career opportunities. Such policies include ethics policy, gift policy, non-discrimination and anti-harassment policy, maternity leave policy, part time work policy and off track policy. policy.

ENGRO WOMEN NETWORK We believe that networking, coaching and mentoring provide opportunities for people to grow personally and professionally throughout their careers at Engro. Engro is known to be an equal opportunity employer. As part of our diversity initiatives, “WEAVE” was formed to facilitate informal networks and relationships among women employees of Engro across functions and affiliates.



ENGRO & CORPORATE SOCIAL RESPONSIBILITY Engro fully supports employees who wish to positively impact the communities around them. Their volunteering efforts are supported through the company-wide initiative “Envision” (Engro Volunteers in Service of the Nation).

MISSION Envision seeks to connect employees to important social and public welfare c auses.

ABOUT ENVISION LOGO The logo has been designed such that the leaf in the centre represents Engro employees and the swirl is reflective of Engro employees’ commitment to volunteerism to bring about m eaningful change in the world around them.

ENVISION COUNCIL The initiative is managed by a team of Engro employee volunteers through an Envision Council. The Envision Council is jointly responsible for selecting, implementing and promoting volunteering opportunities for employees across Engro companies. Employees self nominate themselves to become part of the Envision Council; this process empowers employees to demonstrate strong leadership skills to bring positive social change.



1.10.SWOT ANALYSIS OF ENGRO FOODS

STRENGTHS 

Engro Foods is a well-established brand name, customers automatically have a brand assoc iation



They can e asily afford research and development costs in o rder to introduce new prod produ ucts cts



They have strong supply chain (good PR with farmers provides world class supply chain management)



The increasing sale figures form years to years showing customer satisfaction upon Engro Foods Limited products



Engro Foods involve in consumer and product research before and after launching a product



Engro Fo ods is having str ong relat ionship with global rese arch partners like AC Niel Nielse sen, n, JWT JWT Asiatic



Company is not relying on third parties for sale and distribution and has its own sale and distributing network



Engro

Foods

Limited

only

has

the

third-generation

UHT

milk

plant

in

the

country.E n g r o F o o d s L i m i t e d p l a n t i s t h e o n l y p l a n t i n P a k i s t a n t h a t u s e s Bactofuge technology to virtually eliminate bacteria and ensure premium quality and hygiene

WEAKNESSESS 

One major weakness of Engro Foods in dairy products, which is that 85% of its milk collection centers are in Punjab, while processing unit is in Sindh



Higher transportation cost



Dependency on TETRA PAK for the entire packing of its dairy products



Paying higher cost of packing of products results in higher overall products cost



The product range of Engro Foo ds narrows as compared to its competitors

OPPORTUNITIES 

Pakistan is the fourth largest milk producing country. So, it’s an opportunity for company to grow in this sector



Engro Foods can increase awareness though different media, by showing ads those are according to cultural requirements of Pakistan



By increasing the milk related products com pany can go globally



Engro can launch products like dry milk, cereal and Yogurts etc.



Growing dissatisfaction with milkmen’s milk and increasing awareness about health and hygiene issues have led to increased processed milk consumption

THREATS 

Engro Foods competitors Nestle and Haleeb are biggest threat



There are opportunities and doors for new players are open who can be the future competitors



Consumer is aware now, there is need to maintain the quality of products. If Engro Foods will not do so it loses its business in foods. There is threat from the customer side



Consumers perceptions and price differentials can cause a threat for the company



Consumer’s preferences change with time and prices might create certain barriers in terms of the profit margins for ENGRO FOODS



1.11.ENGRO FOODS STRUCTURE



1.12.Communication Network An understanding of managerial communication isn’t possible without looking at thefundamentals of organizational communication. Communication within anorganization is often described as formal or informal. 

Formal Communication: Communication that follows the official chain of command or is required to do one’s job. Informal Communication: Communication that is not defined by the organization’s structural hierarchy. 

Communication Network: The vertical and horizontal flows of organizational communication can be combined into a variety of patterns called communication networks. 

As a manager, which network should you use? The answer depends on your goal. Nosingle network is best for situations. If you’re concerned with high member satisfaction, the all channel network is best; if having a strong and identifiable leader is important, the wheel facilitates this; and if accuracy is most important, the chain and wheel networks works best.

In Engro Pakistan all channel network is working because they think that employees are our most important asset of our organization. All the company policies andinformation is shared with the employee that’s why they are going to progress EngroPakistan is one of the leading organizations in Pakistan and has a goodcommunication network within the organization as well as outside the organization. They are always in touch with employees and shareholders for the betterment of organization. From better communication network there logo “Growing with Pride” is fully understandable.



2.MILLAC FOODS 2.1. COMPANY PROFILE: Millac Foods: Millac has been providing best dairy products to its consumers for last 45 years; it is not just a milk product, but a complete milk experience.

Millac History: Ever since Millac Foods (Pvt.) Ltd. began its pioneering journey, it has strived to serve its consumers with brands of supreme quality. The taste preferences and well being of our consumer base is of paramount importance, paving the path of interpretation and imposition for any decisions taken here at Millac; after all, it is their demands that we need to meet so that we raise the bar on their expectations. Four exhaustive decades and more hits than trials and errors later, we have succeeded in making Millac the most trusted name when it comes to the choice of dairy in millions of households in Pakistan. Millac Foods believes that whatever is ‘made in Pakistan’ must be a direct representation of all the hidden potential, unrelenting hard work and emphasis on quality that our human resource base holds. Millac Foods will never compromise on these basics.

2.2 VISION Pakistan’s premium dairy family since 1967, Millac Foods has never compromised on its commitment towards providing its valued consumers with that extra special bit of care, responsibility and quality. Entrusted to nurture and secure the health and nourishment of our customers, Millac has been activating vigorous lifestyles and enabling healthy options due to its clean bill of distinction in all matters of corporate citizenship. We connect with our consumers, promising and delivering on all aspects of quality and thriving on your satisfaction. At Millac we believe in developing our concerns to best support Your discernment.



2.3 TIMELINE OF MILLAC Millac Foods, see its clients and employees as the closest knit of families – without their hard work and trust, this relationship would never have grown to be this strong. We achieve so much by empowering our human resource – our most valuable asset. That is why Millac ensure developing systems that facilitate efficient operations and a complete focus on total quality management. Millac Food is aware that without the trust and capital its stakeholders have invested in the company Millac Foods would never have reached the pinnacle it has today.

1967 – Renowned Horlicks of England established Pakistan Milk food Manufacturers Ltd. (PMML) in Jhang

1970 – PMML was bought by the soon-to-become Millac family and was authorized to use the Horlicks brand name

1972 – Reinventing itself, the company replaced Horlicks with ‘Malticks’, ushering in the beginning of a brand new era

1973 – Venturing into the import of high quality fat filled milk powder from Ireland, by the name of Millac, the company came to be known as just that: Millac Pakistan (Pvt.) Ltd. The name has stuck in the hearts and minds of our consumers as the most trusted name in the entire dairy market.

1974 – We became the exclusive agents for L E Pritchett, now known as Glanbia Ingredients, Ireland for fat filled milk powder, Millac

1986 - PMML invested in a sweetened condensed milk plant, and launched the brand ‘Comelle’. There has been no turning back for Comelle since then as no other condensed milk is a staple in almost every household in Pakistan. Truly a market leader, Comelle was the first of its kind

1991 – The company launched Irish milk powder for the bulk market and branded it Corolac, a nutritional favorite for all those who want the best at the most affordable price

1997 – Making leaps and bounds forward, we acquired ownership of the Millac brand for Pakistan, UAE, Afghanistan, Bangladesh and Sri Lanka

1999 – Our biggest milestone was the establishment of Millac Foods (Pvt.) Ltd. Our famous milk powder manufacturing capacity was enhanced by investing in a modern, state-of-the-art plant to produce spray dried milk powders with a capacity of 9000 MT

2000 – The brand ‘Nutramil’ was launched. Since then, it has proven to be supreme quality milk Powder available at a pleasingly affordable price


TERM REPORT-ORGANIZATIONAL BEHAVIOR 2003 – Sensing the need to revamp according to size constraints, the Millac 1kg pouch was launched. It is one of our fastest and most popular sellers. In the same year, ‘Skimillac’, our first ever skimmed milk category, was launched. It was a pioneer in an increasingly fitness aware market

2004 – The company re-launched Comelle, with brand new packaging and a plastic lid. The Comelle sachet was also added to the existing product line. In the same year, Perkup, a tea-whitener was launched to cater to the ever increasing demand for instant tea on the go.

2005 – Comel le Khalis Desi Ghe e was launched . Attuned to our cus tome rs need for e ase and accessibility, we also provided easy open end packaging and plastic lid. Furthering our wish to cater to the needs of the many, our ‘price fighter’ milk power called ‘NutraMil’ was launched in the waiting market. Because of its success, Skimillac also introduced the 1 kg pouch, which was an instantaneous hit. It was in this year that the Millac family was re-launched with a bolder, more modern look

2006 – Millac officially becomes an ISO 9001-2000 and ISO 14001-2004 & HACCP certified company 2008 – Redefining a landmark year, we launched Millac pasteurized milk operations with over 32 company owned retail outlets

2010 – The CIC launched Malticks with the brand name of ‘Malty’ in Sri Lanka pro cess of attaining PSQCA certification 2011 – Millac Foods is in the process

2012 – Launched number of brands including Fresh Milk, Skimillac Fresh Milk, Fruit Yogurt, NutraMil etc. Quality standards at Millac Foods: Millac Foods believes and boasts in maintaining the very highest possible standards of excellence. We are an ISO 9001 – 14000 HACCP certified company and have adopted winning strategies in the procu procure remen mentt of unbea unbeata tabl ble e valu value e for for your your cons consum umpt ptio ion. n. We ha v e pa in st ak in gl y i nv es te d in the necessary resources, whether capital or technical, human asset or knowledge based, to function in complete harmony with the needs and wants of our client base. We are a progressive food company having the highest quality standards, currently engaged in manuf manufac actu turi ring ng and and marke marketi ting ng of dair dairy y prod produc ucts ts.. We be li ev e in addi ng val ue to t he live s of our consumers and to hire, train and motivate the best human resources. We shall always strive to achieve & retain competitive advantages through consistent product development. We are geared to achieve Riba free operations within the next five years.


TERM REPORT-ORGANIZATIONAL BEHAVIOR We aspire to motivate you to lead a more active and healthier lifestyle. We know how important physical and mental well-being is, and for that responsible and nurturing heads and hearts are needed. Here at Millac, we like to think of ourselves as pledging the necessary guarantee to aid in the betterment of your health, lifestyle and active choices - we are the head that cares for your heart. By ethically sourcing only the best quality ingredients and freshest milk for all our dairy brands and products, Millac wants to give its consumers a sense of belonging to a health loving and fitness conscious community.

2.4 MILLAC’S OPERATIONS 

Karachi



Lahore



Islamabad



Dubai



Millac milk outlets are located on prime locations in metro cities.

2.5 MAIN BRANDS OF MILLAC 1.

Millac Instant Milk Powder

2.

NutraMil

3.

Millac Butter

4.

Millac Fresh Milk

5.

Skimillac (Instant Milk Powder), Yogurt and Fresh Milk

6.

Yogurt, Raita, Dahi

7.

Fruit Yogurt

8.

Bread & Egg

9.

Comelle Khalis Desi Ghee

10.

Comelle Condensed Milk

11.

Comelle Unsweetened Evaporated Milk



2.6 SWOT ANALYSIS OF MILLAC FOODS

STRENGTHS  The Thickest Milk  Taste  Nutritious  Hygienic  Packaging

WEAKNESSES Focus Shifted from Main Product to other products  Lack of Research & Development 


TERM REPORT-ORGANIZATIONAL BEHAVIOR OPPORTUNITIES Target market has big profit margins  Bright scope of dairy products.  Target Market can be located with cost effective media. 

THREATS Big Competitors  Inefficient Labor  Animal Diseases  Availability of Natural Milk 



3. ORGANIZATIONAL CULTURE OF ENGRO FOODS &MILLAC 3.1 SIMILARITIES: Consumer Centric Ever since Millac Foods (Pvt.) Ltd. began its pioneering journey, it has strived to serve its consumers with brands of supreme quality. The taste preferences and well being of the consumer base is of paramount importance, paving the path of interpretation and imposition for any decisions taken at Millac is to meet the bar of consumer demand so that their expectations could be met. On the other hand, Engro is working on the same grounds; Client’s satisfaction is our top priority. The Company’s culture is dynamic and energetic, with emphasis on core values and loyalty of customers. The work environment promotes respect for the clientele. The tone for corporate culture and the importance of customers was set after the Company was bought out by employees in 1991. As the Company grows, it is determined to keep our culture open and transparent, and inclusive for all our employees and customers.

Recall among Consumers: Four exhaustive decades and more hits than trials and errors later, Millac claimed to have succeeded in making the most trusted name when it comes to the choice of dairy in millions of households in Pakistan. Millac Foods believes that whatever is ‘made in Pakistan’ must be a direct representation of all the hidden potential, unrelenting hard work and emphasis on quality that our human resource base holds. Millac Foods will never compromise on these basics. Here at Millac Foods, recall among consumers valued alot – without the hard work and consumers’ trust, the relationship would never have grown to be this strong. Millac achieve so much by empowering the human resource for recalling the company name among consumer market – it remarked business recall as most valuable asset. That is why the ensure developing systems that facilitate efficient operations and a complete focus on total quality management. On the same lines Millac Foods brings out the multi tasker you never thought you had in you! We strive to perform in line with the aggressive business philosophy and culture of the company. Millac Foods is extremely dynamic – there are no limits to creative thinking and debate and questioning are welcomed. There’s little wonder Millac Foods is considered to be one of the most encouraging and progressive places to work for young professionals.”


TERM REPORT-ORGANIZATIONAL BEHAVIOR Health and Safety Environment: Environment: Engro manage and utilize resources and operations in such a way that the safety and health of our people, neighbors, customers, and visitors is ensured. The Company believes in safety, health and environmental responsibilities extend beyond protection and enhancement of their own facilities. On the other hand Millac has claimed to provide a dynamic work environment where working on a wide range of assignments related to accounts, management reporting, costing, forecasting, budgeting, variance reporting, coordination of management meetings, finance, taxation, legal and other corporate affairs takes place – Millac Foods strive to perform in line w ith the aggressive business philosophy and culture of the company. Millac Foods is extremely dynamic – there are no limits to creative thinking and debate and questioning are welcomed. There’s little wonder Millac Foods is considered to be one of the most encouraging and progressive places to work for young professionals.

Business Development: In overall conversation it was observed and it is quite natural that Business development is the foremost priority of both Engro foods and Millac foods.

3.2 DIFFERENCES: CSR Activities: We believe that a successful business creates much bigger economic impact and value in the community, which dwarfs any philanthropic contribution. Hence, sustainable business development is to be anchored in commitment to engage with key stakeholders in the community and society. On the other hand Millac is not actually initiating such projects.

People Centrism: Engro strongly believe in the dignity and value of the people. The organization consistently treat each other with respect and strive to create an organizational environment in which individuals are fairly treated, encouraged and empowered to contribute, grow and develop themselves and help to develop each other. The Company does not tolerate any form of harassment or discrimination. While at Millac Mill ac concentration is more drawn towards production.


TERM REPORT-ORGANIZATIONAL BEHAVIOR Innovation and Risk taking: Success requires Engro to continually strive to produce breakthrough ideas that result in improved solutions and services. The Company encourages challenges to the status quo and seeks organizational environments in which ideas are generated, nurtured and developed. Engro appreciates employees for well thought out risks taken in all realms of business, and for the results achieved due to them, acknowledging the fact that not all risks will result in success. Millac comparative to Engro is not that much acquainted with the culture of taking risk and experiences the thirst for success.

Voluntarism: Engro fully supports employees who wish to positively impact the communities around them. Their volunteering efforts are supported through the company-wide initiat ive “EnVison” (Engro Volunteers in Service of the Nation). The initiative is managed by a team o f Engro employee volunteers through an EnVison Council. The EnVison Council is jointly responsible for selecting, implementing and promoting volunteering opportunities for employees across Engro companies. Employees self nominate themselves to become part of the EnVison Council; this process empowers employees to demonstrate strong leadership skills to bring positive social change. On the other hand, in Millac we did not find such extra efforts.

3.3 INTERNAL COMMUNICATION PLATFORMS : Internal meetings for employee empowerment and other managerial meetings on weekly basis held where organizational issues are discussed On the other hand, in Millac we did not find such extra effort Work life balance Engro understand the importance of family and appreciate that the employees need to balance their professional and personal responsibilities. It is their intent to make it easier for our employees to manage their work/life balance more effectively. Engro claimed to encourage our employees to take part in numerous programs aimed at strengthening their overall wellbeing. While Millac is leg behind such modern organizational culture’s adaptability .

Engro women network: Engro believe that networking, coaching and mentoring provide opportunities for people to grow personally and professionally throughout their careers at the Company. Engro is known to be an equal opportunity employer. As part of our diversity


TERM REPORT-ORGANIZATIONAL BEHAVIOR initiatives, “WEAVE” was formed to facilitate informal networks and relationships among women employees of Engro across functions and affiliates.

At Millac equal opportunity employer is appreciated but no coaching and mentoring available.



4. LEADERSHIP GRID OF ENGRO FOODS Engro Foods basically has more of a democratic leadership as it has more concern towards its employees and each and every employee is welcome to give in his or her feedback and ideas for a task or decision that has to be made in accordance and keeping in view the higher authorities as well. Engro has more concern towar ds its employees as compared to organizations that are bending more t owards performance. Employees play an important role in Engro and its performance automatically goes up because their employees are highly motivated and satisfied with their jobs and the benefits that they are availing.

P E O P L E

People Centric

9

68

8 7 6

C

5

O

4

N C

3

E

2

R

1

N 1

2

3

4

5

6

7

8

9

Performance Based



4. 1 LEADERSHIP GRID OF MILLAC FOODS Millac on the other hand has an autocratic way of dealing and looking at things and decisions but at the same time it also has concern for its people so we can say that it falls under both democratic and autocratic because where employees are free to give ideas and feedback but at the same time only the chairman is the person who’ d have the final word and whose decision is the final decision. Employees at Millac need to be motivated by providing them with extracurricular activities and fringe benefits that allows and motivates them to work hard. So according to us Millac is both people and performance centric.

P E O

9

P

8

People and Performance Based

L E

7

66

6

C O N

5 4

C

3

E

2

R N

1

1

2

3

4

5

6

7

8

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Performance Based





5.1. The corporate hierarchy? Flat or vertical Engro Foods: The hierarchy is vertical and there is i s a proper reporting line.

Millac Foods: The hierarchy is vertical and there is a proper reporting line, but at production plant, company has a unity of command, each department has one head, which is responsible for the department progress, all people report him for their work. 5.2. How do you handle diversity? Engro Foods: Diversity is handled by being unbiased, fair dealing and setting a fair image initi ally promoting hard work from top to bottom this creates a good impression impression on the diversity of employees and they also work to maintain this image. No discrimination on ethnic or religious lines.

Millac Foods: Foods: Management is strict to avoid such situations which create any discrimination. The best way to avoid or control work place diversity is to promote an environment where people will concentrate on their work only. And those people who try to create any problem in such conditions are warned on spot.

5.3. Labor demand and Supply? Engro Foods After the emergence of new food companies, market has become much more competitive and employees are less loyal to the company. Whenever they get any opportunity better than the existing job, they just opt for that. Which is there right, however company is aware of this fact and that ’s why they do not have any formal strategy for succession planning. They do consider the people from inside but proper succession planning is not practiced in these days. When they entered into the market they used to have strategy regarding this matter. But now due to market trends they have transformed there new strategies. According to the management it ’s not useful to invest a lot in the employee at a larger extent. They do develop employees for their career planning but no formal succession planning is practiced.

Millac Foods: Foods: Usually we face labor demand and supply issue in marketing, sales or at outlets, otherwise at our production plants, labor do not switch their jobs very quickly.



5.4. How do you respond to Skilled Worker shortage? Engro Foods: Due to entering of new companies in food industry the competition has been increased. Like other areas HR departments is facing the threat of employees switching from our other companies. The skilled and qualified workers are being attracted by the other local or multinational companies. That is why we believe continuous learning program for employees, so that they keep learning and if someone in skilled workers left our company, any existing employee could take his responsibilities.

Millac Foods: Foods: Unfortunately employees are not so loyal with the companies, like other companies, we are also facing this shortage of skilled labor. To get rid of this problem, we have job rotation system s ystem at our production plant. There is not n ot a single person expert in one thing. Or we also focus on one thing that if someone has a command on one thing, should teach his subordinates about his expertise.

5.5. How do you identify and address labor needs? Engro Foods: At Engro Foods, we have suggestion boxes in each department, labor can give us their feedback through written applications or they can directly contact the concerned person for their needs and wants. However, supervisors/managers are responsible to identify lab or’s needs. Once the need is identified, management sits together and discusses the ways to fix it. Labor is also a part of this problem identification and solving it.

Millac Foods: Foods: Millac Foods also following the same pattern as discussed above by Engro Foods, but labor involvement/participation is comparatively low in Millac Foods as compare to Engro Foods.

5.6. Is your organization networked? How are people managed? enga ges employees in Engro Foods: Engro Foods have dedicated teams within our HR setup that engages a variety of different work life-balance activities, angling, camping, sports leagues, talk shows are just a few to names. Communication on healthy living is a major topic of discussion on all our employee communication forums. Millac Foods: Foods: Yes! Each department is connected with the other department. HR plays a vital role in it. Company have different employee involvement programs, marketing and sales team often visit production plant so that they would better networked and a friendly environment is developed.


TERM REPORT-ORGANIZATIONAL BEHAVIOR 5.7. Remuneration as compared to industry? Benefits and incentives Engro Foods: It depends from department to department and employee to employee, but we give better benefits and incentives that’s why people are reluctant to switch from organization, usually sales and marketing people are more privileged with perks as compare to other employees, however we offer following benefits and incentives 

Rent Allowances



Company Car



Travel Allowances



Medical Entitlement



Insurance Policy



Annual Vacations



Maternity Leaves



Employee Old Age Benefit

Millac Foods: Foods: Benefits and incentives are given to only those employees who are well deserved, it is true that we do not offer such incentives and benefits which are offered by multinational companies, but at each level we make sure that everyone is catered whatever he deserved.

5.8. What are the HR policies and practices? TNA, Performance appraisals HR Mission Statement

Engro Foods: “To lead the organization in enhancing its human capital and creating a winning environment

Where everyone enjoys contributing to the best of one’s ability” Engro Foods achieve this by: •Inspiring and motivating its people •Developing its people to strive for higher standards •Driving an open minded and enterprising corporate culture where people through leadership

At all levels dare to dream, dare to try, dare to fail and dare to succeed. •Attracting and recruiting the best talent.


TERM REPORT-ORGANIZATIONAL BEHAVIOR Engro Foods has a very defined and well structured department and its various policies of keeping each employee productive part of the organization organization are intoned intoned with the corporate corporate world’s requirement. Employees in the company are largely committed to their organization and have shown progress in the company. Employees are satisfied with the HR department. It has one of the best HR systems in Pakistan that gives it an edge over its competitors HR Practices:

These are few of the t he HR practices that we have learned from our resource person. 

Planning



Recruitment



Selection



Training & Development



Compensation



Performance Appraisal System



Occupational Health and Safety measures



Career Planning and Development



Research and Development

Performance Review: At Engro Foods, a review is intended to be an open and frank discussion between an employee and their Team Leader/Manager. Generally there are two elements: first is the element in which discussion takes place over the strengths and areas which need to be developed as displayed displa yed by the job holder over ove r the past 12 month onths. s. The performance perfor mance is of course judged comparing ing the per for man ce ag ai ns t the cor e in di cat ors of element

is concerned with

discussing the

Job.

The

training needs/inputs activities

second that are

considered to be appropriate to help the job holder overcome some of development development areas areas discussed in the review and also those activities that are deemed appropriate to build upon their current Strengths


TERM REPORT-ORGANIZATIONAL BEHAVIOR Objectives of Performance Appraisals      

To measure the work performance To motivate and assist employees in improving their performance And achieving their professional goals To identify employees with high potentials for advancements To identify employees training and development needs To provide a solid path for career planning for each individual

5.9. What are the compensation policies? How do you reward and employee? Engro Foods: The active and effective role played by HR in people development at different levels organizational, departmental and individual is considered to be one of the most critical factors leading to the development of a winning corporate culture. Reward System: Engro Foods considers its employees not just as a cost but also as a resource in which the ORGANIZATIONAL BEHAVIOR Page 46

TERM REPORT-ORGANIZATIONAL BEHAVIOR company has invested from which it expects valuable returns. Pay policies and programs are one of the most important human resource tools for encouraging desired employee behaviors. The advantage of paying above the market average is the ability to attract and retain the top talent available, which can translate into highly effective and productive work force. The incentive schemes and incentive objective have been clearly communicated to all individuals and weekly progress report is also communicated communicated to all concerned Compensation and benefit plans: Engro Foods has a separate department for compensation. That department deals in staffing and compensation planning. First of all this department has all the information regarding who is being employed and how it is performing. What so ever promises are made to the employees, they know that. So it ’s easy for them to design compensation plans because they know every employee which is being hired. Compensation and benefit plans are particularly based on performance. If performance is up to the standards and the employee has good conducts he is rewarded.

After p e r f o r m a n c e

eva lu at io n, re su lts

ar e

rech ec ke d

and

m a t c h e d w i t h t h e standa standards rds.. Base Based d on on that, that, proper proper compe compensa nsatio tion n plans plans are design designed. ed. Reward Categories at Engro Foods Intrinsic and Extrinsic rewards include:        

Smart/Quality work Exceptional performance in a project Targets achievements Special assignments Medical care Life insurance Vacations Relocation



       

Recreation Club Policy Travel Education assistance policy Mobile phone Business mobile phone policy Official Blackberry Policy Life insurance Medical entitlement

Medical Insurance is given to employees by Adam Jee Health Insurance between the band of Rs. 40,000 to 80,000 depending upon the rank or grade of the person. Hospitalization is given between Rs 10,000 to 50,000.

Millac Foods: We did not find any compensation for employees and facilities, however they offer following rewards and benefits to the employees. • Medical • Gratuity fund • Incentives • Bonuses • Recognition • Appreciation • Workplace program • Food Subsidy • Loan Insurance • EOBI • Children Education allowance • Overtime Claim • Medical Claim • Mobile deduction Claim • House Rent



5.10. Is there a gender bias? Engro Foods: No. Most organizations these days don't have any gender bias while recruiting for the required job. It is unethical and even illegal to deprive someone a job based on their gender. Millac Foods: Foods: There are few jobs at which you can not hire females, like at production plants you always need a male with enough strength to perform regular work, overall company does not believe in gender biasness; currently company company has all female brand managers.

5.11. What are the gaps in communication process at organization? Engro Foods: Yes there are People – system gaps: People-system gaps occur when when the information a person needs from a system is not easily accessible, readily available, or accurate. When people-system gaps occur, systems fail to provide people with the information they need to do their jobs and inefficiencies inefficiencies occur. Likewise, people-system gaps occur occur when people fail fail to enter the appropriate information back into systems. Take the example of a difficult-to-access database. database. People may neglect to update the database, database, rendering render ing it useless ess to anyone who who seeks up-to-date up-to- date information. informatio n.

Likewise, employees employ ees may

create a “work-around” solu soluti tion on,, defeating the purpose of having a database at all.

When

people can’t easily pull or push information to and from systems, the systems themselves risk becoming obsolete. System – system gaps: gaps:

Often times, system-system gaps gaps occur occur when a business process is is

cross-departmental or cross-functional. Sharing information among systems from different departments, or among multiple systems in different areas, can present a communication challenge. When different departments departments or business business units use different IT systems, data must must be entered and re-entered, leaving room for data entry mistakes and creating gaps between different parts of an organization. When communication lapses or errors occur in any of these information transfers, it can cause significant inefficiencies, waste, and business process delays . Millac Foods: Foods: In Millac Foods, when communication lapses or errors occur in any of these information transfers, it can cause significant inefficiencies, waste, and business process delays and to mitigate these issues we conduct weekly meetings to di scuss and resolve.


TERM REPORT-ORGANIZATIONAL BEHAVIOR 5.12. How do you handle the language barrier issue? Grapevine Engro Foods & Millac Foods: Foods : Language Barrier 



Hiring of local resources, all people across Pakistan can easily communicate and understand Urdu, so we do not face f ace this issue, but in sales and distribution team we hire People of that specific area to avoid this issue. Provide training for customer service personnel. Training should include language barrier procedures as well as common phrases in other languages that can be used when handling handling customer.

Grapevine The grapevine is always about people, and travels faster than any other mode of communication. People at the receiving end of gossip may even take the drastic step of quitting. An open culture with the freedom to approach the management is important to tackle the grapevine through, 

An open Culture



Communicate ASAP



Keep Employees busy



Eliminate uncertainty

5.13. What kind of relationship exists between the leaders l eaders and the followers? In both companies relationship between leaders and followers is a democratic one where there is good consultation and the employees can feel free to discuss their issues with the Management and seek help if wanted





6.1. Are there any best practices learned or adopted by the organization? Engro Foods: Company has earmarked funds for development activities; the enthusiasm of its employees for volunteer work has been the most pleasant pl easant surprise. Engro volunteers (known as Engro Torchbearers) Torchbear ers) can participate parti cipate in and all are surprised s urprised when events even ts planned for the weekend weekend drew the largest largest crowds. crowds. Employees Employees at all levels of the company compan y are willing will ing to sacrifice weekend hours to volunteer at hospitals, schools and in disaster hit areas. Millac Foods: Whether it's the playing field or the work arena, at Millac Foods you get the best of both worlds. Compan y’s diversity and wellness initiatives help employees to reach the heights of passion and achieve goals. In Millac Foods Milk Outlets help you see how your smile can make a difference. That's why we encourage you to spread smiles through volunteer work in the community. It is this culture of responsibility that makes a career here so rewarding for our e mployees.

6.2. How you improve ethical behavior? Engro Foods & Millac Foods: Ways to positively impact ethical behavior include: 

Act as a role model for the ethical behavior you wish to see in your employees



Ensure your company has established and regularly trains employees in business codes of conduct and business ethics



Work with your HR department to ensure potential candidates are screened for highly ethical conduct



Train all new employees on their expected ethical behavior such as arriving to work on time, treating company expenses as if it were their own personal checkbook, keeping personal time to a minimum.





Provide an employee ethics hotline.

Hold open discussions with your employees on how your company or department can improve their ethical behavior



6.3. What is the employee development program? prog ram? Engro Foods: Yes, we do. Two years ago, Engro Foods – our 100% shareholder – picked up quite a good team of people from each of the subsidiaries in the different countries. These people spent three to six months in

each of the subsidiaries subsidiaries

across

the

world. The world.

t r a i n i n g programme programme was was associa associated ted with with the London London Busine Business ss School School and has been been very useful. Now that those team members are back, back, they are adding a lot of value to company. Millac Foods: Foods: There is a continuous assessment of the technical and managerial skills. For the further enhancement of these skills formal training programs offered at all levels. The employees are provided with opportunities to put these skills into practice, in preparation for the move to a managerial role. 6.4. What is the most important factor at the time of selection? Engro Foods & Millac Foods: Both Companies have almost same criteria for employment. 

Attitude



Ability to express ideas



Drive/energy



Team player



Organization fit



Passion/enthusiasm for work



Believe in continuous working



Acceptability of new technology and ideas

6.5. Is there any stress management program? Engro Foods & Millac Foods: Both companies have a relaxation program to to mitigate stress and we conduct conduct exercises to burst stressors on employee day out usually in form of picnics and Pakistan/International Pakistan/ International Tour. Smoking areas, indoor games, coffee area are a part of of it. As compare to Millac Millac Foods, Engro Foods have more such programs.


TERM REPORT-ORGANIZATIONAL BEHAVIOR 6.6. Do you you conduct exit interviews? Engro Foods & Millac Foods: Yes we do conduct exit interviews.

6.7. How do you handle conflict? Engro Foods & Millac Foods: Both companies have training sessions to mitigate such conflicts, few training session are, 

Conflict management training



People management training



Communication skills



Anger management



Time management training



Teamwork training etc

6.8. What kind of leadership does your organization has and how they influence the subordinates? Engro Foods: The leadership in Engro Foods is democratic and open to discussion and friendly. As a consequence the employees feel free to talk to the superior management and discuss their problems that make for a healthy and good working atmosphere and good team work making a family like environment. Millac Foods: The leadership in Millac Foods is in between autocratic and democratic, company is owned by an entrepreneur and he is the one who takes final decision, however people are open to give ideas, and are appreciated for problem solving but final decision is taken by the Chairman.



7. EMPLOYEE ENGAGEMENT

7.1 What do you do to improve people ’s skills? Any example Engro Foods: Engro Foods is one of the organizations in Pakistan that have its own training and skill development departments in all metro cities. We offer trainings and skill development sessions throughout the year, and it is compulsory for every employee to attend these sessions. Company conducts sessions for employee motivation, skills grooming, personal grooming, and communication and presentation skills. Company also take employees to outside the office in different clubs and farm houses where people spend time together and play different games so that they can better understand each other and all these activities have a positive impact on their professional as well as personal life . Millac Foods: Millac Foods also follow almost the same practices, a lot of training sessions; they are in contract with skill development firm. They have skill development programs for other staff but they are less le ss focused on the technical staff.

7.2. How do you stimulate innovation and change? Engro Foods & Millac Foods: In both company’s policy, 6 common attributes are common in order to stimulate innovation and change, but the only difference is that for both companies, every point has its own value and give priority to that point as per their wish or requirement. 1. be open and receptive to new ideas


TERM REPORT-ORGANIZATIONAL BEHAVIOR Being open to new ideas implies that every idea can be discussed, challenged and enhanced, regardless of its origin. New ideas can come from customers, suppliers, partners or many other sources. The idea is the hero, not the person. Every idea that comes your way should be seriously considered, no matter who came up with it Or how similar it seems to something you’ve tried before. 2. Continuously experiment Progress requires a regular flow of new ideas that are then tested and experimented with. Just as soloists need to deal with work flow and cash flow, you also need to have an ideas flow. Write down every idea that comes to you, no matter how trivial or unlikely it seems at the time. You can later sift through these ideas to find the ones that are worth developing further.

3. Take risks and allow yourself to occasionally fail Trying new ideas involves taking risks and not all of the ideas will work. But if you don’t take any risks at all, you pass up the chance of finding a great idea that might break new ground for your business. 4. Have fun Fun is part of the journey of realizing your largely untapped creative potential. This involves a broader definition of fun - it’s not just the fun you have at a party or down at the beach but also the fun of trying things, taking risks, pushing yourself and achieving goals. 5. Retain a focus on results All the above are important points, but innovation should still be set against the backdrop of producing results including meeting deadlines and budgets, staying fit and healthy and leading a balanced life. 6. Operate on the edge of chaos Do you work in an environment that allows you to tolerate and work within the tensions and paradoxes that surface? You can occasionally fail as part of a focus on results. You can have fun while being serious about your work and you can make room for innovation and creativity at the same time as running an efficient and productive business.

7.3. How do you handle the work-life balance of employee? How many hours/days ORGANIZATIONAL BEHAVIOR Page 56

TERM REPORT-ORGANIZATIONAL BEHAVIOR does an average employee work? Bifurcate indoor and outdoor working? Engro Foods: It depends upon the nature of work, we have engineers and technical staff they work in shifts. Our marketing staff works very hard they spend mostly 10-12 hours daily in the office. Our company does not encourage late sitting culture. If you are done with your work you can go to your home. Outdoor employees and technical department also work in shifts. Millac Foods: In Millac foods most of the technical staff is hired by third party involvement and they are less bother for their work load and problems, as far as their own employees are Concerned Concerned they have stress management programs. They try to give the employees comfort And peace of mind at work place so that they can easy work late hours; company has a trend of late sittings because of work load.

7.4. Is there any job rotation, job enhancement or job enrichment procedure? Engro Foods: Foods: Yes , we have a job rotation process but this program is not applicable in every department, for example in engineering department department we often shift people so that they can learn more and get technically strong, in marketing, CSR, corporate communication, PR, media, research and development and HR department we do not have any job rotation program. We have a plan to introduce Management Trainee program very soon, in which we will rotate fresh graduate business and engineering graduates in diffe rent departments. Yes, off course job enhancement and job enrichment is the part of job. Millac Foods: In Millac Foods, in technical staff, when they hire people on entry level, they rotate them in different segments of the department so that they can better judge the interest of the employee, otherwise in other department they usually hire experienced people, expert in their own field and off course job rotation is not a problem for them. Job enhancement and job job enrichment is completely dependent of the skills and ability of the employee.

7.5. Do you have flexi timing? Engro Foods: Foods: No we do not have flexi time culture in our organization, although is a good technique but unfortunately in our organization nature of work or responsibilities does not allow employees to go for flexi time. Millac Foods: Yes, in few departments we have flexi timings, for example in our call centers, we often give liberty to the senior call center executives to select the shift as per their wish, and people get benefit out of it. But in office work it is not possible for us to manage people ORGANIZATIONAL BEHAVIOR Page 57

TERM REPORT-ORGANIZATIONAL BEHAVIOR in flexi time. 7.6. Do the employees feel proud working at this organiz ation? Engro Foods: Foods: Yes! Employee feel proud of working in company, satisfied employee ratio is very high, usually people resign from organization, when they find a better opportunity only, nobody resign because of internal issues or work load or salary issues. Company pays good salaries and gives the employees a very good professional development environment and employees are Happy with the company and its rules

Millac Foods: In Millac Foods, company has almost 96% of the satisfied employees, they love their job and happy with their packages, but the employees on the contract are not that much satisfied.

7.7. How do you involve people? Do you encourage participative decision making? Engro Foods: Foods: Since company has a vertical hierarchy, people have specific decision making power on their level. Yes we encourage them when we need solutions from them. We provide them complete freedom to express their ideas with the concerned authority, it they are shy they can even participate via text, email or phone call. We encourage employee s’ participation at every level. Millac Foods: Yes! In Millac Foods it ’s a part of our policy that company should encourage employees for new ideas and motivate them to bring positive change in the organization with their positive attitude towards work life. Employees who took right decision are appreciated a lot and their bonuses and other benefits reflect that correct d ecision making.

7.8. This organization encourages employees to exercise thei r own initiative? How? Engro Foods & Millac Foods: Partially, because both companies have their own system and they appreciate if people follow them. It depends upon the task and decision, sometimes when a lot of technicalities or customers problems are involved then it becomes necessary for an employee to take the initiative of the decision which he made by himself, it is a FMCG industry and company can’t waste time just j ust for the approvals from the managerial level.




TERM REPORT-ORGANIZATIONAL BEHAVIOR 8.1. How do you manage organizational change? Engro Foods & Millac Foods: Both companies manage or try to manage the organizational change in almost the same manner, since It is one of the major issues for HR people; the first step in managing any type of organizational change understands how to manage change with a single individual. individual . In essence, to make a change successfully an individual needs: •

Awareness of the need for change

•

Desire to participate and support the change

•

Knowledge on how to change

•

Ability to implement required skills and behaviors

•

Reinforcement to sustain the change

ADKAR describes successful change at the individual level .When an organization undertakes an initiative, that change only happens when the employees who have to do their jobs differently can say with confidence, "I have the Awareness, Desire, Knowledge, Ability and Reinforcement to make this change happen." Because it outlines the goals or outcomes of successful change, ADKAR is an effective tool for: •

Planning change management activities

•

Diagnosing gaps

•

Developing corrective actions Supporting managers and supervisors

•


TERM REPORT-ORGANIZATIONAL BEHAVIOR 8.2. Any example of managing a change? Engro Foods: They didn’t provide any details Millac Foods: with the change in managerial positions, employees working under that manager feel stress and starts thinking in a negative direction like new boss could be biased, he might wants to bring his own people in the department. Rumors and grapevine also started in the organization. So when we hire any person on managerial position we usually invite him for a lunch or tea with his or her her subordinates, so that they can get get to know each other. We try our best to decrease the communication gap between the bosses and the employee so that they can betterWork together.

8.3. How does the organization comply with the standards formulated by the government? Engro Foods: Foods: Company always designs policies as par government standards, because they have to follow the rules of government by hook or by crook. During making or designing policies for company or for customers we always keep the predefined rules and regulations in mind. That ’s why company does not face any big problem from government sector, changing of rules and regulation from the government sector is a big challenge. Millac Foods: Company does not have any other option to follow governments rules and regulations, no matter they are in favor of organization or not. That is why all policies are designed in such a way that amendments could be done at any time. 8.4. How do you respond the th e globalization impact? Engro Foods: Things are rapidly changing outside the Pakistan, new trends are introducing in the world like flexi time, working via internet from home but unfortunately we can’t adopt these practices in our organizations right now. But hope fully we will adopt such standards in our organization very soon. With reference to technological point of view, Engro is the pioneer in state-of-the-art technology; they always bring the latest technology in Pakistan. But over infrastructure is a big issue for us. Millac Foods: Company always gives priority to the best dairy products to the customers, they believe if people are satisfied with their products then they won ’t feel harm in using their new technology, company have a separate research and development department, they do research On new technology and come up with new technological changes beneficial for the customers. ORGANIZATIONAL BEHAVIOR Page 61



TERM REPORT-ORGANIZATIONAL BEHAVIOR 9.1. How employee attitude are measured? Engro Foods & Millac Foods: Both company measure employee attitude by conducting survey, in these surveys employees are asked questions which are based on physiology. When HR department check the results, they conclude the result that either employees are satisfied or not. If this unsatisfied attitude is due to any management issues, we try to solve it. Department heads are much concerned about the attitude of their sub ordinates, they are asked to observe the attitude of their sub ordinates from HR department, HR department itself also conduct interviews and surveys to get to know the employees attitude and job satisfaction level. Because we believe that if our employee is satisfied and happy our custom will also be happy and satisfied with our services.

9.2. How do you measure job satisfaction? Engro Foods: Foods: After putting a lot of money in employee’s satisfaction survey, Engro Foods have realized that job satisfaction is related to the salary, if the salary is good the person will be satisfied with his job, since company pays good salary to the employees, its employee’s are satisfied, but company conduct su rvey’s time to time to get to know more about the job satisfaction level of the employees. Millac Foods: Company conducts surveys and interviews, and the most important thing is that employee’s attitude reflects itself that he is satisfied with his job or not? If his absence is increasing, he is not concentrating on his routine work (without having any personal and work place issues) then it is a sign that he is not taking interest in job because he is not satisfied.

9.3. What do you do if the salary structure struc ture is known to everyone? Engro Foods: Company do not try to hide salaries, because it ’s almost impossible to keep salary structure confidential, moreover after good friendship employees do not hesitate to share their salaries. And the other thing is that, people working on the same scale lies in the same pay scale level. Millac Foods: In Millac Foods, it’s confidential and no one is allowed to disclose his salary with Anyone.



9.4. How do you cope up with temporariness? Engro Foods: Usually company does not face this problem, people feel proud in working in Engro Foods and company does not face this problem. Millac Foods: Foods: According to the HR person, it is on e’s right to switch his job, but we cannot stop anyone from this thing. We try our best to give the best to employees so that they do not switch quickly.

9.5. Do employees cut corners to meet the targets and deadlines? Engro Foods & Millac Foods: Yes! People especially in business development department are much concerned with their targets and deadlines. Company provides them extra benefits and incentives which motivate them to work hard to achieve targets and deadlines.

9.6. How you cater absenteeism and turnover Engro Foods & Millac Foods: We usually face absenteeism problem in our customer service/sales/technical departments, their working hours are higher than other employees, they deal with customers all the time, customers often misbehave with them, this attitude de-motivate them a lot. That’s why wh y company always has employee’s training programs to motivate them for better services. 9.7. How do you handle emotions and moods of the employees? Engro Foods & Millac Foods: With any change in policies, employee’s mood change, this change could be negative or positive. To avoid their negative moods company give them justification regarding that change. With a proper face to face discussion on issues with employees company can bring a positive Change in the society.


TERM REPORT-ORGANIZATIONAL BEHAVIOR 9.8. How do you identify issues down the line? Engro Foods & Millac Foods: Both companies have few options to identify the issues down the line, they are common everywhere. Communication meeting: Head of the department or president dedicate 1 or 2 days in a year in which employee calls him and discuss issues without showing their identity. Whistle blower policy: If you have any problem with any one you can direct send an email to the HR manager by bypassing your upper management. Face to face meetings: if there is some misunderstanding between the employees, HR arrange face to face meetings to resolve conflicts and all issues, this helps a lot and company usually use this method to resolve issues. Suggestion box: Both companies are suggestion boxes in each department; employees can drop a letter without showing their identity.

9.9. Is there any political influence in the organization? Engro Foods & Millac Foods: No, there is no any political influence in both organizations. Both companies also discourage employees not to discuss political issues at workplace because conflicting opinions and thoughts can disturb the peace of organization. 9.10. Does employee show respect to each other? Engro Foods: Foods: Yes! Employee give respect to each other, we always encourage them to keep good relations with their co-workers because your organization is a place where you spend the best time of your day in fact the best time of your life so you must be as good relations with them as you have with your family. Millac Foods: Yes people give respect to each other and in our training sessions we always educate them to respect each other and if they have any personal conflict on anything then do


TERM REPORT-ORGANIZATIONAL BEHAVIOR Not make it a part of your ego; your personal opinions should not have a bad impact on your professional life.

9.11.

Do

the

employees

feel

their

job

is

worthwhile

/

worse

than

most/enjoyable/desirable? Engro Foods: Company always encourages employees to discuss their job circumstances with concerned person in HR, they discuss their problems with us and we try our best to figure them out. Job rotation, if possible is the best way to solve their situation. Mostly people feel like that when they have a problem with their boss or sub ordinate. Millac Foods: Employees are satisfied with their job; they are happy with their jobs; pay levels and enjoy their work.

9.12. More experienced members of the organization take time to help new members? Engro Foods: Foods: We organize a lot of events like corporate dinners, picnics, Eid and Christmas parties, basant and Valentine’s Day where senior and junior employees mingle to create a better understanding level and it helps them to make a comfortable zone for communication and work. Millac Foods: Yes, off course without the help of senior staff a newly appoint or fresh person can’t get command on system and things, no matter you have a back ground from world ’s best FMCG but you need time and require assistance of seniors to settle in any organization. We always encourage senior employees to help junior and newly appoint people.

9.13. Do the executives in your organization lead by example? ex ample? Engro Foods: All professional working in organization are the master of their field, they know their work and have guts to impress people with their work. All senior people are role model for their juniors and special trainings are conducted to minimize gap between executives and managerial level employees. Millac Foods: Company’s executives share their experiences in seminars and sessions to motivate employees, these success stores motivate our employees to work hard for the Company and their career growth.


TERM REPORT-ORGANIZATIONAL BEHAVIOR Own assessment: After assessment, on the behalf of above asked questions, we concluded that both companies are ideal companies to work in; they care for their employees and believe that a satisfied employee can satisfy the customers. Both companies have vertical hierarchy. Managers often enjoy the benefits of legitimacy, but overall it’s a team work. Our opinion or conclusion is not one sided, we also had words with few employees of both companies (can’t disclose their names because of confidentiality) they confirmed to us that these HR policies are not only in documentation. Companies follow these HR practices in real. That is why both companies do not face the problems like temporariness, employee loyalty and job diss di ssat atis isfa fact ctio ion. n. People feel fe el proud pr oud to be th e par t of organizations. Companies r ecei ec eive ve thousands of resumes every month. Work place politics is everywhere, but these two companies have very strict policies, rules and regulations to get rid of these things. People are advised to do their work and let the others to do their work. Engro Foods Foods take care of his employee employe e in a very ver y special manner, birthday flowers, cards, Eid cards, new year cards and giveaways are send to employees . Engro has a democratic style of leadership, everyone is a part of decision making, people feel proud if the organization involve them in such things, However Millac has a leadership style in between autocracy and democracy, all decisions are made by the entrepreneur, although suggestions are appreciated but at the end of the day command of authority is in one hand. That is why people are less bothered or reluctant in sharing their views or experiences. Millac recently hired many brand managers and management team; they will definitely bring a positive change in the company. On the contrary, Engro Foods is spending millions of rupees on employee trainings, motivations, stress management and entertainment. entertainment. This is the point where Millac Foods is lack. Crux of the report: Engro Foods is employee oriented and Millac Foods is business oriented.


TERM REPORT-ORGANIZATIONAL BEHAVIOR 10. RECOMMENDATIONS 

ENGRO FOODS

Following are the recommendations for EFL. 

The co-ordination between different departments of EFL should be improved it will lessen the bureaucratic cost and increase the efficiency e fficiency of the company.



The activities like customer satisfaction day should be performed on regular basis so t he he c o m p a ny ny s h o u l d k n o w t h e f e e d b a c k a n d s a t i s f a c t i o n l e v e l o f c u s t o m e r s r e g a r d i n g t h e product product and and the the image image of the the company company..



The shopkeeper complains that EFL is not providing replacement for the expired products, EFL should provide prope r re placement to the shopkeeper to enhance the image of the comp compan any, y, and and create better working wo rking relations with such an important stakeholders.



EFL has shifted to branding concept but it really has not adopted it fully, for s mo mo ot ot he he r w o r k i n g o f t h e d i f f e r e n t b r a n d s , t h e s a l e s t e a m s s h o u l d m e r g e d w i t h re sp ec ti ve br an d management.



There is no check on the performance of the distributor, and this has led to huge problems in the delivery of many products in some areas of the city



They should also start to manufacture powder milk in order to meet the domestic demand and so that it can be helpful in saving the foreign exchange that is expensed in importing the powder milk from foreign countries.



The company should explore the market potential in a way, so that it can utilize its full capacity in order to gain economies of scale in the production.


TERM REPORT-ORGANIZATIONAL BEHAVIOR 

MILLAC FOODS



Millac Foods should allocate a healthy budget for the advert ising of its products.



HR Department of Millac should introduce HRIS to increase the efficiency of the company. c ompany.



Regular customer feedbacks



Analyzing the market demand before launching a new product



Keeping in view the customer perception their needs and wants



The shopkeeper complains that Millac does not provide replacement for the expired products so they should provide proper replacements to the shopkeepers to enhance the image of the company.



Millac Foods should improve its distribution system specially the retailers are not happy with distribution of Millac

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11 - REFERENCES www.engrofoods.com www.engro.com www.pta.gov.pk http://www.engrofoods.com/financial_reporting.html www.millacfoods.com www.wikipedia.com www.amcy5.com












Term Report On Engro Foods & Millac Pakistan-Organizational Behavior

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