ACKNOWLEDGMENT

By the grace of Almighty Allah who has given us the opportunity,energy,will, sense to commitment,dedication,patience,time to undertake and complete this report. All thanks to Him. My heartiest thanks to all the assistant managers, managers and deputy managers of various departments for educating, guiding and helpful insight regarding conducting and accomplishing this project report. It was really enlightening experience and as this report was our ever attempt into management issues. It proved to be a great learning experience. Last but not the least we would like to thank our friend Mr. Adel Afridi,who who has recently done her internship in Pakistan Steel, has enticed my interest to pick this industry as a center of research and also put me to the right reference of source. We owe a considerable amount of thanks for the convenient amount of time and knowledge which they delivered to us very proficiently and all above mentioned names for their noteworthy help and guidance.

INTRODUCTION
Pakistan Steel is strategically located 40km south east of Karachi in close vicinity to port Muhammed Bin Qasim. Pakistan Steel is a costal site which lies on the National Highway and is linked to the railway network. Spread over an area of 18,600 acres (29 square miles)

with 10,390 acres for the main plant, 8070 acres for the township and 200 acres for the water reservoir Pakistan Steel is Pakistan's largest industrial complex, comprising component units numbering more than 20. Pakistan Steel specialise in the production of flat steel products including, billets, slabs, hot rolled coils, cold rolled coils, galvanised sheets/coils/formed sections and corrugated sheets and are vital to the supply of high quality and cost effective steel products to the domestic market. Pakistan Steel's constant efforts in continuous improvement and quality management have resulted in accreditation in ISO 9001, 14001, 17025, SA 8000 and OHSAS 18001.

Biographical Characteristics of Employees (Age, Gender, Race, Religion, Social Group) Along with complete dedication to their customers they are fully committed in our social and environmental responsibilities. They are continuously adding facilities and supporting projects for the welfare of their workforce and neighbouring communities. Pakistan Steel holds a recently refurbish shed and renovated state of the art 100 bed hospitals for its workforce and their families. In addition state of the art sport facilities have been built and an active campaign initiated by the chairman to promote the importance of regular exercise and health with the recent completion of a running track made available to the inhabitants of Steel Town. With an active plantation and forestry program we have transformed barren land into beautiful forestry and parkland for all to benefit from.

HISTORY
After independence in 1947, it did not take long for Pakistan to come to the realization that progressive industrial and economical development would be impossible without the possession of a self reliant iron and steel making plant. The dependence on imports would cause serious setbacks to the country along with an extortionately high import bill which would be impossible to support.

The initial idea for a domestic iron and steel mill was put forward in the first five year plan of Pakistan (1955 - 1960). In 1968 besides other factors, it was considered by the Government of Pakistan that a basic steel industry should be established in the public sector, as public sponsorship of the project would enable integrated development of the steel industry in the country. In light of this, the government decided that the Karachi Steel Project should be sponsored in the public sector for which a separate Corporation under the Companies Act be formed. As a result on the 2nd of July, 1968 Pakistan Steel Mills Corporation was setup as a private limited company in the public sector in accordance to the Companies Act of 1913, with the objective to establish and run steel mills at Karachi and other places in Pakistan. In January, 1969, Pakistan Steel concluded an agreement with V/O Tiajproexport of the then USSR for the preparation of a feasibility report into the establishment of a steel mill at Karachi. Subsequently in January, 1971 Pakistan and the USSR signed an agreement under which the latter agreed to provide techno-financial assistance for the construction of a coastal based integrated steel mill at Karachi. The foundation stone for this gigantic project was laid on the 30th of December, 1973 by the then Prime Minister Mr. Zulfiqar Ali Bhutto. The mammoth construction and erection work of the integrated steel mill, never experienced before in the country, was carried out by a consortium of Pakistani construction companies under the supervision of Soviet experts. ................................................................ Pakistan Steel did not only have to construct the main production units but a host of infrastructure facilities involving unprecedented volumes of work and expertise. Component units of the steel mill numbering over twenty and each a big enough factory in its own right were commissioned as they were completed between April, 1981 to August, 1985 with the Coke Ovens and By Products Plant coming online first and the Galvanizing Unit last. Commissioning of Blast Furnace Number 1 on the 14th of August, 1981 marked Pakistan's entry into the elite club of iron and steel producing nations. The project was completed at a capital cost of Rs. 24,700 million. The completion of the steel mill was formally launched by General Zia-Ul-Haq the then President of Pakistan on the 15th of January 1985. Organizational culture that Exist Currently Today Pakistan Steel is the country's largest industrial undertaking having a production capacity of 1.1 million tons of steel. The enormous dimensions of the project can be visualized from the construction inputs which involved the use of 1.29 million cubic meters of concrete, 5.70 million cubic meters of earth work (second to Tarbela Dam), 330,000 tons of machinery, steel structures and electrical equipment. Its unloading and conveyor system at Port Qasim is the third largest in the world and its industrial water reservoir with a capacity of 110 million gallons per day is the largest in Asia. A 2.5km long sea water channel connects the sea water circulation system to the plant site with a consumption of 216 million gallans of sea water per day.

Administration and Personnel Department

This department is responsible for allow the affairs of the employees including works and officers, daily wages and regular. All the records of the employees are held with this department. This department maintains separate files for each employee. All the affairs of the employees including promotion, retirement, pension, document verification, leave, disciplinary issues etc are controlled and coordinated through this department. This department is further divided into sub sections including Personnel A section Personnel B section Employees old age benefit (EOBI) Establishment ACR Disciplinary cell Dues settlement & Verifications cell Policies and coordination section

Organization Structure (Groups / Teams)

Personnel A section

This section deals with the files of the officers. All the issues regarding leaves, retirement, termination, promotion, law suits etc are record and maintained there. The officers classification by the department is Regular Contract Deputation Probationers

Grades and cadres:

Management grades Chairman Director PSMC-1 M-2 PSMC-2 PSMC-3

Principal Executive Officer General Manager

Executive cadres Deputy General Manager Manger Deputy Manger Assistant Manger Junior Officer PSE-5 PSE-4 PSE-3 PSE-2 PSE-1

The filing of the document is such that the files of an officer are divided into two caters Noting file: This file consists of the entire document including applications, recommendations and remarks etc about the officers. Correspondence file:

This file consists of all the other documents of the offices like promotion letter, personal documents, warning letters, and certificates etc.

Personnel B section
This section is doing almost the same work as personnel A sections but the difference in that this section deals with files of the work and the files of the workers are maintained in there on department by there departmental heads and this section works on requirement and approval of the department of the worker. The workers are divided into categories on bases of pay scale from PG- to PG-VII. The leave schedule and other benefits of the workers are different from officers.

P&C SECTION
This department has following functions which are as under:

Amonimotin/Proparation of the Service Rules. To deal with all the policy issues relating to Rules and Regilations and other service matters. Issuance of various circulars on policy matters. To deal with all the personal policy issues and matters. To manmain the record of Pay Scales and decision thereon. Arrangements/Preparation of paper work of Department Promotin Committee (DPC). Preperation of Pay fixation on Promotion/Demotion for transmission to Audit for verification and submission to Pay roll for implementation. Preparation and maintenance of seniority lists of Officers of all the grades of Pakistan Steel. Maintenance of minutes of DPC. Co-ordination in between various Sections/Deptts and other units from personal issues point of views. All other Misc cases on various issues marked to P&C section by higher authorities and various quarters of Pakistan steel. Maintenance of P/file of Officers/Staff of A&P Deptt. And maintenance of leave and daily routine matters. Maintenance of P/files of Ex-employees of East Pakistan for pension.

To deal varios matters with MOI&P. Mantainance of monthly attedance and its proparation for submission to Pay Roll Department for salary purpose with regard to officers and staff of A&P department.

Job satisfaction EOBI

Pakistan steel mill is a semi government organization working under ministry of industry and production. As some of the government organizations give pension to its employees Pakistan steel is not doing so. So to provide the employees so of the benefits of pension it is registered in EOBI, a company which provide pension facility to the employees of organizations where pension facility is not available. The EOBI starts its working in 1976 when they started by giving pension facility to employees having pension less than 1000. Then in 1986 they remove income limitation and through this they involve all the employees of the private and semi government organizations in their policy. The amount on which the amount for pension is deducted is 1500 RS from which 5% is paid by employer and 1% is paid from employees pay. In 1993 there is an amendment in which the contribution of employers is increased to 6% but again it is set at 5% in 2001. The latest amount is 300 by employer and 60 by employee which is 5% and 1% of 6000 respectively. 6000 is the current minimum wage rate. Following are the types of the EOBI pension payment.

Old age pension:

In this mood of payment pension is given to the employee after the age of 60 for men and55 for women in a fixed amount till his or her death.

Old age grant:

This is the pension applied on the employees who work in organization with 2 to 15 years. In this mood of pension EOBI pays an accumulated to the employee as per the given formula in the manual of EOBI.

Survivors pension:
In this case the person who is died during its service his or her pension is given to his or her wife or husband.

Invalidity pension:
If some of the employee got unsound or full it such other injury that he is not able to continue the job in such case EOBI give him or her pension facility.

Dues settlement & verification cell:

The two main responsibilities of this department are: Dues settlement of the employees at the time of retirement Verification of the important document of the employees

Ways to Motivate Employees (Monetary & Non-monetary)

Disciplinary cell
This department deals with all disciplinary issues given in the clauses:

On any Complaint or Report, Disciplinary Cell (A&P Deptt) initiates a note for approval of the Competent Authority to nominate Investigation Officer (Flag A ) and then Internal Department Note (I.D.N) issues for investigation (Flag B ) After receiving the Investigation Report, case initiates for the approval of Competent Authority to conduct Enquiry (Specimen enclosed as (Flag C ) and then Order of Enquiry (Flag D ) alongwith specimen of Statement of Allegation & Charges (SOA&C) (Flag E ) issues. The Procedure to be followed by the Enquiry Committee / Enquiry Officer is enclosed as (Flag F ). A copy of stepwise procedure for the implementation of Removal from service (Special Powers) ordinance, 2000 enclosed as (Flag G ).

After receiving of Enquiry Report from Enquiry Committee / Enquiry Officer, Disciplinary Cell Scrutinize / Examine / Minutely Legal Vetting the same and if it is found proper, submits a NOTE for approval of Competent Authority to serve SCN which is Mandatory before Final Decision / Imposing of Penalty upon Accused (Flag H ). Specimen of SCN (Flag I ). After receiving the Reply to SCN, Disciplinary Cell submits a NOTE for Final Decision / Imposing of Penalty upon Accused (Flag J ). Specimen of Denovo Order of Enquiry (Flag K ). Specimen of SOA&C for Denovo Enquiry (Flag L ). Specimen of Censure letter (Flag M ). Specimen of Warning (Flag N ) & Suspension (Flag O ). Specimen of Removal from Service Order / Dismissal Order (Flag P ). Specimen of Termination Order (Flag Q ). Specimen of Compulsory Retirement (Flag R ). Specimen of Withholding of One Annual Increment (Flag S ).

Following are the minor and major penalties:-

(a) Minor Penalties:

Censure; Withholding, for a specific period, not exceeding two years promotion or increment otherwise than for being unfit for promotion or

financial advancement in accordance with the rules and order relating to the service, cadre or post; Recovery from pay of the whole or any part of pecuniary loss caused to Pakistan Steel by negligence or breach of orders or any act of omission or commission in the discharge of his official duties. (b) Major Penalties:

Reduction to a lower post or time scale, or to lower stage in a time-scale; Removal from Service; and Dismissal from service. Compulsory Retirement

Establishment:
The main responsibility of department is to manage the man power and keep records of the increase and decrease in the man power. This department made estimation for how many employees like officers and worker are required which is called rationalization, but the actual man power may deviate from the rationalize one. This actual man power is called holding, like the rationalize for officers is 3466 but the actual holding is 6895 and the rationalization for staff is 9397 but the actual holding is 5244 as per the result of June 2008. Thos department also maintains and decides the hierarchy of monogram of the organization. This department also account for the quota of different units and other districts. The quota classification of Pakistan steel mill is given below: 50 % Punjab 7.6% Sindh Urban 11.4% Sindh Rural 11.5% N.W.F.P 6% Baluchistan 4% Fata 2% Azad Kashmir Another responsibility of the establishment is to give loans to the employees which are as follows:

Employees Personal Loan:

This is a revolving loan it is given from the provident fund of the employee and must be returned within 3 years the interest for this is 8%.

House Building Loan:

It is a mortgage type of loan, the minimum loan in this type is 100000 and the maximum is 500000. The same interest percent is charge on it.

Car Loan:
It is given to the employees at 5% interest rate and the document of the car remains with Steel Mill till the employee fully pays the loan.

Welfare Loan:
It is a special kind of loan given to the employees having no interest rate.

CORPORATE SECRETARY
Corporate secretary is a designation which deals with all the issues which are related to other organizations having some relation with steel mill including answering to the questions of senate, giving information to the ministry of production and industry, issues with other companies like lease of land etc. For doing so corporate secretary divides its working into two separate departments named as: Corporate planning Corporate secretariat

CORPORATE PLANNING
As the name show this department deals with planning and evaluation of the new project and enhancement of the projects related to steel mill. This department is working from the start of steel mill. When the initial development was done,Pakistan steel is the country 1st& so far the only integrated steel plant having production capacity of 1.1mty (millions tons per year) and established with the techno economic assistance of farmer USSR. This agreement was signed in 1969 b/w the two countries. The foundation stone of this project was laid by EX late Prime Minister Z.A BHUTTO in DEL 1973. The construct of walk this project was started in 1975, and this plant was commission in stages b/w 1981-85 with the present capacity of 1.1mty Pakistan Steel shares in the market is hardly 17% while the rest of market demand is met

through local mentors and imports. The major projects & by-products of Pakistan steel are coke, pig iron, rold billets, cast billets, HR Products, CR Products Galvanized products and the by-products are: coal tar, Ammonium Sulphate, Granulated slag. The capital cost of the project is 25 billion rupees Pakistan steel paid about 88 billion tax sector in the form of duties and taxes since its operation excluding 1 billion of dividend to the government which is paid in September 2007 the main raw of feed material in Pakistan are Iron ore manganese ore and Ore the man power strength is on 36-06-2009 was about 17000 including 12000 regular employees and 5000 contract and salvages showing the labour productivity per employee per month is 74916 tons.

FUNCTIONS OF CORPORATE PLANNING DEPARTMENT

To make promotional efforts for attracting prospective private entrepreneurs for setting up downstream industries based on products & by-products of Pakistan steel. To carry out detailed analysis and technical appraisal of projects/feasibility reports received from intending investors in downstream industries. To process in coordination with other concerned departments of Pakistan Steel, required documentation / formalities related to allocation of land in the Downstream Industrial Estate. Recovery of annual dues i.e. ground rent and maintenance charges in respect of Downstream Industrial Estate. To coordinate with law department / legal consultants regarding legal cases in respect of downstream industries.

SOCIAL APPLICATION:
Pakistan steel also providing residential medical educational sports facilities etc to employees in Pakistan as well as to the people of adjoining areas that is 100 bed hospital, Cadit College, Quaid-e-Azam Park and cricket stadium.

DOWNSTREAM INDUSTRY:
To promote industrial growth in the area of Pakistan steel downstream industrial units were created on the basis of products and by-products of Pakistan steel is a result 44 downstream industrial units are setup in area of 452 acres the remaining 224 acres of land will be allocated to the applicants in compliance with policy on merit basis. The land is given on rental bases which an other source of income for steel mill. Thats why the company is making plans to allocate the remaining land to the industries related to steel products.

Leadership Style that is Prevailing

FUNCTIONS OF CORPORATE SECRETARIAT
This section is mainly responsible to coordinate with all the departments and answer to the questions and queries of different organization on behalf of these departments. Following is the list of jobs the department is doing. To arrange Board meetings as per directive of the competent authority and Extra Ordinary General / Annual General Meeting as per SOP. To file Returns with Securities and Exchange Commission of Pakistan (SECP) on change of Directors (from-29) and clearance of annual audited accounts in AGM (Form-A) To exchange correspondence with all functionaries of provincial / Federal Governments, Foreign Embassies/missions on behalf of the corporation. To coordinate with all departments of the corporation and outside agencies in different issues. To sign agreement on behalf of the corporation with Govt. departments agencies. Submission of replies to senate and National Assembly question on related matters.

To arrange foreign experts for various complexes for the plant and to sign agreement in connection with their deputation.

BOARD MEETINGS & AGM

Number of meetings to be held in a calendar year is neither mentioned in company ordinance nor in memorandum and Articles of Association. Mostly, Board Meetings are held on the advice of the chief Executive / chairman. However, at least 04 meetings on quarterly basis as proposed below may be held during the calendar year to transact business of the corporation.

1st Meeting

: 2 Meeting rd 3 Meeting : th 4 Meeting :

nd

March/April : Sep/Oct Nov/Dec

June/July

Annual General Meetings (AGM) is to be held once in a year with 21-days notice in advance to the share holders after approval of the Audited Accounts by the Board of Directors. As per recent instructions, Form-A has to be filled with SECP by 30 Sept., so AGM must be convened in Sept. 08.

MEETING PROCESS:
To collect the information from concern department for preparation of agenda items.

Submission of notice of board meeting along with agenda items and working paper

Holding of meetings

Recording of meeting minutes.

Submission of minutes to board director to attended the meeting.

Communications of board approval.

STATIC & COORDINATE CELL

Preparation of monthly, quarterly & annually activity report for the cabinet on the performance and achievements of Pakistan Steel. Monthly reports in respect of production & generation data to federal bureau of statistics, Government of Pakistan. Annual census report on manufacturing industries to Government of Sindh. Annual report as input material for economic survey journal of Pakistan. Data / information pertaining to production sales $ capacity utilization on my /quarterly basis to state bank of Pakistan.

Miscellaneous data / information asked by provincial and federal government/other agencies from time to time. Preparation of brief for the visit of the president, prime minister and high dignitaries to foreign countries. Preparation of write-up briefs for joint Ministerial Commission of Pakistan and friendly countries for possible co-operation highlighting areas of interest in respect of Pakistan steel.

Budget section
This is a very important section of finance department. It is cumbersome and complicated to continue the smooth running of such a huge industrial complex. Budgets are made so that this huge complex could run smoothly and its smooth running requires arrangement of on time funds and for arrangements on time funds provisions for sales and bad debts due to credit sales, repairs and replacement estimates, personnel related costs, raw material estimates and production plan, estimates of all types of expenditures whether capital in nature or revenue in nature etc are necessary to determine, therefore, in Pakistan Steel budget is prepared each year covering the period from 1st July to 30th July this budget is known as consolidated budget the other budget is known as revised budget that is an enhancement of the consolidated budget revised budget is made after 8 months of the preparation of the consolidated budget. The budget exercise is started well before the start of the financial year. All the production and services departments are informed to submit their revised estimates for current year and estimates for the next year with full justification the revised budget contains the estimates and actual the parameters on which the departments enhance their required amounts for the next four months are as follows. Production Sales Rates of inputs Consumption ratios Personnel related costs Repair and maintenance

Financial charges Rupee/dollar parity rate

Any changes in the above mentioned parameters provide justification for enhancement in budget that is again approved by the board of directors.

Types of Budgets
There are five types of budgets prepared every year by the management of Pakistan Steels management. Revenue plan budget Working capital budget Purchase budget Sales budget Finished product/stock budget

PROCEDURE TO BE FOLLOWED BY THE ENQUIRY OFFICER 1. Communicate Statement of Allegation & Charges (SOA&C) to the
accused 2. R e q u i r e t h e a c c u s e d t o p u t u p w r i t t e n d e f e n c e w i t h i n a week 3. Inform date, time & place of enquiry on receipt of written defence of expiry of stipulated time which ever is earlier. 4. Record or receive a recorded statement of Prosecutor in the presence or accused who shall be allowed to cross examine Prosecutors statement and to see the documents produced by Prosecution side during enquiry. 5. Record or receive a recorded statement of accused in the presence of Prosecutor who shall be allowed to cross-examination the accused & to see documents produced by defence side during enquiry. 6. S h a l l n o t p r o v i d e c o p i e s o f E n q u i r y P r o c e e d i n g s t o t h e accused. 7. S h o w C a u s e N o t i c e t o b e i s s u e d , i f h e l d G u i l t y . 8. R e p l y t o b e s u b m i t t e d w i t h i n 0 7 d a y s . 9. C a s e t o b e s u b m i t t e d f o r f i n a l o r d e r s . 10.Record the statement of defence witness / witnesses, if any in the presence of Prosecutor and allow his / their cross-examination by Prosecutor one by one.

RECOMMENDATION
Pakistan Steel has over all a very good business set up and can attract internees to increase their applicants but there are a few things that they lack and need to improve; Selection of employees should be purely merit based instead of selection on politcal bases.

Pakistan Steel should decrease the number of employees. There are excessive number of employees as compare to the workload on the organization; it can affect the efficiency of the employees in long run.

Internees can do a great deal of work for the organization, presently few internees are working. I suggest that organization should let more internees join Pakistan Steel. It will be beneficial for hte organization as well as for internees.

Management should offer exclusive programs for the current employees that can help them further train internees. Management should introduce new methods of motivating employees. Sales and marketing department, which has now been separated, should have managers that can motivate employees on the spot and recognize them in front of the organization.

Pakistan Steel should make Human Resource practices more formal i.e. they should have proper advertisements for the internship programs, proper method of selecting internees and training them.

CONCLUSION:
We have concluded through our experience in several departments of Pakistan steel mill that this industry posses bundles of knowledge.Pakistan Steel is the ray of hope for Pakistan. We have got much experience and knowledge in our internship. The employees of steel mill are very cooperative and well aware of their part of job. There is a great scope in this organiztion but the only need is to manage the man power and increase the efficiency of the labors.