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Noon Pakistan ltd.

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Noon Pakistan Limited
The company we have taken under study is Noon Pakistan Ltd. Commonly known as Nurpur.
For our project we have interviewed the Director HR Col. Abdul Khaliq Khan (retd) and GM
sales Gulam Muhammad Ghazali. We had two different sessions of questions answers with both
of them. We have been able to gather very useful information regarding the company and its
operations and procedures. Some of the information has been given below as this is the rough
draft of our project
About Noon Pakistan
Noon Pakistan Limited was incorporated in Pakistan on 26 September, 1966 as a Public Limited
Company and its shares are quoted on Karachi Stock Exchange and Lahore Stock Exchange,
NOPK Ordinary Shares
NOPKNV Non-Voting Ordinary Shares
Company Registration: No. 0002355
National Tax Number. 0786271-7
Companys Vision:
Our vision at Nurpur is to be a transformative force in our community and world at large and
to serve as a model of a sustainable business alternative that nurtures social and economic well-
being in an environmentally sensitive manner.
Core values:
Customers are at the forefront of everything the company does.
Ideas are constantly challenged to develop next generation solutions.
Business is conducted openly and fairly but we compete fiercely.
Team-work is encouraged with individual flair for the best results.
Tough goals are set and we enjoy the challenge of beating them.
Environment We value preservation of the environment and sustainable organic
agriculture.
Community We value mutually supportive relationships among members of our local
and global communities.
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In the private sector, Noon Pakistan Limited is the first Company in Pakistan to operate a Spray
Dryer for processing of milk powder. Currently, the Company is involved in processing and sale
of various dairy products and juices with the brand name of Nurpur.
Nurpur is a member of Noon Group of Companies and is being overseen and managed by highly
qualified, experienced, technical & business professional Directors and Senior Executives. The
Head Office of the Company is situated at 45 F, 1st Floor Mustafa Center, Main Market,
Gulberg, Lahore and the Plant is located at Bhalwal, District Sargodha.
Noon Pakistan Limited is committed to make sustainable efforts towards optimum utilization of
its resources for the best possible results for not only to safeguard the interests of all its
stakeholders but also to fulfill their obligation to serve the Community and to become a leading
food company in Pakistan maintaining the highest quality standards.
Noon Group has been successful in building a great reputation over the last 45 years, Noon
Pakistan Limited continues to be at the forefront of quality products. It has achieved market
leadership in several food categories with a very strong portfolio consisting of Butter, Cheese,
UHT Milk, HCLF, Pasteurized Milk, Tea whitener, Flavored Milk, Cream, Desi Ghee, Fruit
Juices, Honey and Jam.
Operations:
The products are made with great area, and marked with quality seal of recognition. The
company undertakes various quality control tests at all stages of procurement & processing to
ensure quality end products. All processes are undertaken by employing state of the art
technology and equipment. Noon Pakistan Limited is recognized and appreciated by the
Customers as one of the leading Companies in Pakistan that are providing pure and quality
products.
Achievements:
The Company has achieved a growth of 682.73% in turnover in a span of four years i.e. turnover
of the Company has grown from Rs.311.27 million in 2004 to Rs.2,436.41 million in 2011,
through a dedicated and experienced sales team.
The organization has alsowon the most prestigious and acclaimed brand recognition award
Brand of The Year 2006-07 in category Butter & Brands of The Year 2007-08 in
categories Butter, Cheese &Flavoured Milk & Brand of The Year 2008-09 in category
Butter & Brand of The Year 2010 in category Butter, Cheese &Falvoured Milk and It is
also considered the first Dairy Company in Pakistan to be certified under ISO 22000:2005.




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Analysis:
The Company was incorporated in 1966 with a paid up capital of Rs.115.2 Million and a total
investment of Rs.553 Million. The company uses a spray dryer for powdered milk processing.
The installed capacity of the plant is 150,000 ltr/2 shifts. The plant commenced its operation in
June 1972 and its products were marketed throughout Pakistan under the brand name of
Nurpur. Annual sales revenue amounts to Rs.2.926 Billion. In 2004 Company put up a UHT
Tetrapak Milk Plant. The total number of employees is 700.

Competitors: there are 5 major competitors of Nurpur foods.

Nestle (Milk pak)
Engro foods (Olpers)
Haleeb foods (Haleeb)
Shakarganj foods (Good milk)
Premier foods (Millan)
The Change:
The CEO Mr. Salman Hayat Noon and Board of directors decided to make a change in the
company because company was going in loss from last financial year and was also losing market
share.
Recently the company underwent a massive change. New Top management was appointed in
July 2013 and new responsibilities were handed to the new top management. The newly
appointed COO was also responsible for looking after all the maters of supply chain, finance,
production, sales, and marketing. Similarly the CFO was given the responsibility to deal with all
the circulation of money in the company. GM sales has been appointed at the head office in
Lahore. The GM sale is responsible for all the sales, sales staff and marketing. He/she will also
be responsible for increasing the sales and make availability of their products. GM Plant is
responsible for dealing with the problems related to production.
The company basically changed all the key positions of the company and no hiring was done
internally.



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Change Initiation:
Company had a net loss in the financial year of 2013 as compared to 2012. So the CEO decided
to make a change in the top management of the company. The company found new talented
professionals who can compete against thechallenges of current market. Hence new COO, CFO,
GM sale and GM plant were hired.
This is the summarized detail of sales and gross profit of the year 2012 and 2013.
2012-13 2011-12 Change
(Million Rs) (Million Rs)
Sale 2962.23 3305.49 -11.47%
Gross Profit 291.79 404.23 -27.82%
Operating (Loss) / Profit 91.62 112.64 -181.28%
Net (Loss) / Profit 114.8 36.00 -416.00%
Earnings per share (Re) 8.18 2.58 -417.56%

Some of the problems faced
Initially there were problems like employees attitude, (Middle management) they got the fear of
losing their job. Some of the employees resigned due to new top management. Following is the
list of professionals leaving.
NSM (National sales manager)
ASM Islamabad (Area Sales manager)
ASM Faisalabad
Accounts officer
Controller finance
With this change these five posts were empty, all of them just left the organization just because
of this management change.




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Employee Morale was low:
Some of the above mentioned key positions were vacant and the turnover rate of the company
increased. The least interested employees left the organization. Issues like job security spread
among the existing employees. Secondly the culture of the organization was very traditional and
most of the employees were used to the old environment. When new management took the
charge they initially changed the organization culture and most of the employees felt discomfort
with all the new working procedures, we can also say they took the organization to a very
professional working environment from a very informal working environment.They started
setting the standards, different reporting techniques; redefined the job descriptions, introduced
the new ways to handle the problems. And the most importantly they organized a proper
hierarchy, they build boundaries and revised the duties and responsibilities of the employees and
limited access. Therefore the reporting system and the chain of command were changed.
The second biggest problem faced by the employees was the communication gap in every way.
Majorly the main cause behind the communication gap was difference in reporting techniques.
The new top management introduced reporting through the use of technology i.e. emails,
internet, etc.Many of the employees who have been part of this organization from the past 20
years, they have been accustomed to the old reporting style through the use of papers. This major
shift intechnology has proved to be a major challenge for employees with orthodox ways of
operating and therefor creating a huge gap between the top management and old employees.
Organizational structure
Number of employees:
700 employees are working in Noon Pakistan Limited which includes all level of employees like
executive level employees, managerial level employees, officer level employee and lower level
employees like labor or technical staff. Further division of this staff is as follows, means in
which department and branch, how many employees are doing jobs.








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At Milk plant there are about 11 departments are functions and 2 departments are functioning at
Head Office. Detail of employees in each department is as follows.
Departments No. employees
Human Resource and administration
Department
42
Accounts Department 11
Milk Procurement Department 202
Laboratory (Quality Assurance Department) 27
Transportation 30
Engineering department 73
Production department 69
UHT production Department 106
Packing Department 64
Store of UHT products 20
Store For Spare parts 25
Marketing And Sales Department (Head
Office)
31
Total Employees 700






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Main offices:
Head Office Plant Karachi Office
Address:
1st Floor, Mustafa Center,
Main Market,
Gulberg, Lahore, Pakistan.
Info@Nurpurfoods.com
Address:
Sargodha Road,
Bhalwal, District.Sargodha,
Pakistan.
Address:
A-278, Block 2, Ground Floor,
Gulshan-e-Iqbal,
Scheme No. 24
Karachi, Pakistan.

In Karachi Office only sales activities are being done and in head office main accounts
Activities, Marketing Activities are done and at plant production is done and activities which
performed at plant regarding all departments exist at Plant Office.
Our own findings during the interview of NPL Top Management.
During our interview at Noon Pakistan limited, as we have observed by viewing activities within
the organization, it was evident that the NPL follows centralized decision making policy. Lower
level employees, first line managers, supervisors are not allowed to take part in decision making.
Executives are all in all at their best and top down communication is being done in NPL. to some
extent it seems that there is functional structure in the organization but when it is analyzed
deeply, then one can come to know that higher level managers and executives have saved the
rights of decision making at upper level only so as per the situation and observation, we come to
this point that There is PRE-BUREAUCRATIC Organizational structure is followed in Noon
Pakistan Limited. Next thing that is, what type of departmentalization is followed in NPL? So,
there is FUNCTIONAL DEPARTMENTALIZATION is followed. All activities are grouped
by function performed and departments are established as per their functions like, Human
Resource Departments, Engineering Department, Production Departments, transportation
department, IT department, accounts department Etc.
In our opinion, Non Pakistan limited should change its structure, because there is a lot of talent,
skills, knowledge in employees and they do have the creative and innovative ideas about their
concerned departments and jobs but they are not allow to share this with those authorities who
can change the environment and can bring change in an organization. The adopted structure
doesnt fulfill the requirements of the organization. The most important thing that we observed in
NPL is that most of the staff is old age and have an orthodox background so they do not allow
someone to bring any change moreover they are very rigid to adopt any change themselves. Most
Employees are not happy with their jobs and are not aware by the terms and conditions of jobs
and other facilities. In other words, NPL is in the Bhalwal because of which no one is allowed to
bring change, neither in organizational.
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No. of employees and sub Department of HR:
Noon Pakistan limited is consist on employees which includes HR and administrative manager
and two are its subordinates one Assistant HR and Administration Manager and Time keeper and
two assistants are there one is office assistant, and second one is Assistant time keeper.
There are total 5 employees working under HR department. And one sub department working
under HR department is time keeping department which is handled by time keeper named
Mr.Ghulam Rasool and its assistant Mr., Liaqat Ali who look after the basic activities of the HR
department like attendance sheets preparation, record of files regarding all departments of the
organization, look after the applicants applications record, preparation of waiting list files
according to job descriptions, qualifications etc.
Functions of HR department
Human resource planning and forecasting:
Human resource department functions are carried on by the HR department and other
management officers in order to direct the activities of work force of an organization. Human
resource functions are different in different organization and these based on the size of the
organization. Larger the organization, more structured HR department will be there.
Main HR department functions include Recruitment, de recruitment, selection, and protection of
rights of labor according to labor act of Pakistan.
In Noon Pakistan limited, Human resource planning process is in structured manner. Time to
time Requirement for labor and workforce is shared with the HR department and most of the
time shuffling is take place within the organization. The procedure which I have observed in
Noon Pakistan limited is:
In whichever department, any need of employees is felt, head of that department report to the HR
department. For example, in milk procurement department, new field workers are required to
collect the milk from collection centers, MPD will inform the HR department about their
requirement and HR department will analyze the internal environment to transfer employees
from one department to needed department. If this is not possible then advertising is made within
the organization and notice is pasted on notice board of HR department that, if anyone interested
for this job, he can contact with HR department on specified dates.
If there is no response internally, then employees are externally hired but not by advertising in
rather candidates are called from waiting list. This is procedure for Human Resource
requirements.
Methods to Forecast HR needs:
Above was the activity when Head of any department requires employees when needed, but
there is methodology followed by the Noon Pakistan limited to forecast HR needs. Following are
methods to forecast HR needs.
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Managerial judgment:
Once in a month a meeting is held at plant office and all managers analyzed the employees
strength department vise and take decision about new hiring and made prediction that in which
department new skills, knowledge, and training is required. Furthermore analyze the
performance of employees and take decisions about transfers, if needed within the organization.
Project based hiring:
Whenever new project is started within organization employees are hired on contract from
duration of 3 moths to 5 years and contract is terminated whenever the project is finished.
Group technique:
This technique is simple as managerial judgment method because, in this method drops are made
from different departments and after analyzing there work performance, a conclusion is made
that what type of employees and in which department needs to be hired.
Only these two methods are followed in Noon Pakistan limited. Other methods of forecasting
required a lot of working thats why they are not used to forecast.
Source of candidates:
Employees hiring source is internal in Noon Pakistan limited. Externally advertisement is done
by Noon Pakistan limited as HR manager told me that within the organization, transfers are made
and there are very rare chances to advertise by any source for candidates hiring. So Employees
are hired from internal source or those candidates are hired who are in waiting list and ask by
themselves for job vacancy.


Training and Development:

Training needs assessment:
Whenever new machinery is purchased, technical training is needs to be done for operating
maintenance purpose. Further more, NPL is always remain in touch with different institutes, who
organize seminars on different type of trainings. These institutes send a letter regarding there
offered courses either of management, technical or about health related issues or preservations of
products according to standard. Then Management of NPL decided that who should go for
training and how many employees or supervisors should be trained from each department.
Following type of training are conducted by the NPL during the year. These are typical training
programs which are conducted by the employees of NPL during the entire year.


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Civil defense course of management for industrial/commercial undertaking
Technical guidelines for the consideration of consumers needs in standard development
and conformity assessment.
Training on milk evaporation and drying for plant operation of milk and production.
Workshop on labor laws for labor policy amendments every year.
Integrated pest management in food, textiles, pharmaceuticals and other industries
Job orientation in all departments for newly hired employees.
Basic Food hygiene
Computer courses and training of operating of different software within the organization
Business English language courses for management staff.
Processing of dairy products training
Fire and safety training
Cooling tank operations and maintenance
Computer training for old staff in session system
Orientation is arranged when new software is implemented by IT department

Performance management:
Performance evaluation for permanent employees:
A performance evaluation is assessed every year for the purpose of increments, promotions in
order to recognize and appreciate employees achievements and value addition in related
experience.
Compensation for inflation
For the assessment of employees potential
Work out improved plans, if deficiencies are noted in performance.
Work out development plan in time with employee potential for future
responsibilities/assignments.
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Critical analysis
During our interview at Noon Pakistan we have tried to observe as much as possible and make
critical analysis about the strategies of the company, its structure, its terms and conditions, its
policies relating to safety and environment, relationship of employees with each other and with
management all I observed and my findings are as under.
Noon Pakistan limited has strong position in the market and has brand loyalty in market butt its
most of employees are not happy with their jobs and salaries. Companys environment is
politically influenced by higher-level employees.
Favor is main fault of the company, means, applicants comes with the favor of higher level
employees and hired ignoring the job description and specification.
Our final judgments are as under.
Most of employees are not happy with their jobs earning, means by their salaries.
Job description is clears at higher level management but is not cleared at working level
employees.
The companys overall standard environment is up-to-date according to the needs of
global wants but its need some improvements.
The hierarchical structure does not support the efficient way of working that reports and
mange departmental operations in quite proficient way.
Employees need to improve communication skills among themselves and managers to
increase the productivity and their performance.
Labor turnover is very high.
It is facing narrow span of managerial control that is need to be improved.
The point of job security is very low pointed that causes threat amongst employees to be
fired any time.
Employees are not getting benefits as per their qualifications and experience, because of
which most employees resigns without any prior notice.
The company has systematic recruitment criteria but sometimes employees hired without
any proper documentations or any proper process of recruitment.
Employees are not satisfies by their supervisors and managers in some departments
because of which most of the employees are always in search of new and better jobs.
In case of load shedding of electricity and gas, NPL use fuel to continue its plant working
which cause to increase in cost.
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Noon Pakistan gives much importance to the production department and its other
departments are at average level.
Huge cost of delivery is beard by the company because their transportation is not fully
owned and hired privately for product deliveries.
Noon Pakistan limited needs to improve the teamwork capabilities. That is most
important to increase the productivity and revenue of the company.


Conclusion:

During our visit we also observed that critical and tactical analysis is much important for the
organization because it is the only way to get knowledge about the performance of the company.
By getting the final judgments and center of theory we are able to imply better performance.
On the other hand we observed that is well-established company especially in business-to-
business world market. It got all the possible resources to gain the competitive advantage over its
competitors products and brands through the marketing and strong customers correspondence.
It has the strong communications relationship with the customers that are because it has a strong
image and positive reputation in the Pakistan. It has the possible ability to avail the opportunities
in the global world.
Some middle level managers of Noon Pakistan believe that the organizational environment can
change through the involvement of employees by giving them importance to role their input
performance but the top level managers or higher management are not in favor of this change
and avail this facility whenever any new project needs to start then They have been followed the
teamwork approach. Its objective is to provide the result of encouragement in the spirit of co-
operation and mutual trust among management, employees and labor in the organization within a
specified period.
Its objective is to provide the result through different departments under the sage of performance
and accountability. The senior employees and management members continuously trained the
junior employees and internees. Noon Pakistan prevails strict and closed management style that
do not allows employees to bring new and unique ideas.




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Recommendations for improvement
During our interview, We have spent most of time in HR department and tried to take the
overview of the organization at our best and after conducting critical analysis, and in the light of
these points following improvements needs to follow in NOON Pakistan limited. Following are
recommendations as we observed:
Employee needs continuous training for the encouragement of better performance.
All departments should be given equal importance instead of only production department
because all departments have their role in development of company.
Employees jobs descriptions should be cleared at the time of hiring.
Employees salaries should be according to labor act of Pakistan and terms and
conditions about salaries increments should be shared with the employees so they can be
encouraged.
The company should motivate the spirit of mutual trust and teamwork among labor,
employee and top management.
HR department should continuous keep an eye on the performance of employees.
The managers should be professional and must be expertise in their job role.
Their should be arrangement of one day training for higher level managers, supervisors,
Head of Departments to make them understand the importance of ethical behavior with
all employees.
There should be democratic and energetic management style that enables and encourages
the employees, labors and low-level management to come up with unique ideas.
The problem of misunderstanding and communicational gap between the departments to
departments and management to management may be removed.
The lean (the cure idea to maximize customer value while minimizing wastage of
material) department must perform in energetic way to reduce the wastage of resources.
In addition, helps the company to gain the benefit of available opportunities and
resources.
Company should purchase its own motor vehicles for delivery of products; this will
reduce the cost of delivery and cause to increase in companys assets.
Fast and reliable distribution channels should be avail for fast delivery to the customers.