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Habib ADM Limited produce and market a

wide range of rice based starch sugars, protein


concentrates and derivatives which is used in
food, confectionery and pharmaceutical
industries.

REPORT SUBMITTED TO:


Sir Waqas Rana
Principal of Management
Monday 06:30 to 09:30

REPORT PREPARED BY:


Mr. Shahbaz Siddiqui Reg No 33210
Mr. Adnan Ali Reg No 33211
Mr. Usman Sameer Reg No 34049
Mr. Asif Ahmed Reg no 36904
Mr. Faisal Reg No 31951
TABLE OF CONTENTS

Introduction…………………………………………………………………………………. 01

Product Overview…………………………………………………………………………….01

Company History…………………………………………………………………………….01

Company Certifications………………………………………………………………………01

Corporate Information…………………………………………………………………….….02

Committees Composition…………………………………………………………………….03

Company’s Vision Statement...................................................................................................04

Company’s Mission Statement……………………………………………………………….04

Code Of Conduct……………………………………………………………………………..04

Organizational Culture……………………………………………………………………….06

Organizational Structure…………………………………………………………………...…07

Hierarchy Detail…………………………………………………………………………...…08

Standard Operating Policies………………………………………………………………….09

Company Structure Design & Elements……………………………………………………..11

Employees Motivation……………………………………………………………………….12

Leadership…………………………………………………………………………………....14

Recommendations……………………………………………………………………………15
COMPANY INTRODUCTION & OVERVIEW:
Habib ADM Limited has been in production since 1982 with over 34 years of experience in
the industry with its business partner Archer Daniels Midland Company (ADM) which is
engaged in food processing, situated in America, Chicago.

Habib ADM is producing the following products used in Pharmaceutical , Confectionary and
for Animal Feed & committed to consistently develop new products and also offers customer
specific and tailor made products. Habib ADM Limited market its product with a wide range
of rice based starch sugars, protein concentrates and derivatives in local & international market.

o Rice Syrup o Soluble Rice Fibre


o Rice Syrup 95 DE o Rice Protein Concentrate
o Rice Syrup Solid o High Fructose Rice Syrup
o Maltodextrins o Rice Sorbitol Syrup
o High Maltose Rice Syrup o Rice Maltitol Syrup

Habib ADM Limited has no competitor for its sorbitol product in Pakistan. Locally, Habib
ADM has few competitor who directly imports some of aforementioned products from India.
Internationally, Habib ADM has large number of competitors.

Habib ADM Limited is certified with various certification which is essential to follow the
proper guidelines in order to fill the requirement of the valuable customers.

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CORPORATE INFORMATION:

BOARD OF DIRECTORS
Executive Directors
o Mr. Owais G. Habib
o Mr. Tufail Y. Habib

Non-Executive Directors
o Mr. Gaffar A. Habib
o Mr. Howard J Synenberg
o Ms. Fatemah G. Habib
o Dr. Salma Habib
o Mr. Daniyal Ghani

CHIEF EXECUTIVE OFFICER


o Mr. Owais G. Habib

COMPANY SECRETARY
o Mr. Ali Asghar

CHIEF FINANCIAL OFFICER


o Mr. Yaseen Haroon Cochinwala

LEGAL ADVISOR
o Mr. Nasir

COMPANY ADDRESS & WEB PRESENCE


o Ahmad Habib Boulevard, Hub 90250, Baluchistan, Pakistan
o www.habibadmltd.com

REGISTERED OFFICE
UBL Building , II Chundrigar Road, Karachi.

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COMMITTEES COMPOSITION

BOARD OF H.R & REMUNERATION COMMITTEE


o Mr. Tufail Y. Habib
o Ms. Fatemah G. Habib
o Dr. Salma Habib

BOARD OF AUDIT COMMITTEE


o Mr. Gaffar A. Habib
o Ms. Fatemah G. Habib
o Dr. Salma Habib
o Mr. Daniyal Ghani

AUDITORS
o Earnst & Young Ford Rhodes Sidat Hyder Chartered Accoutants.

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VISION STATEMENT
We aim to be leading manufacturer and supplier of sorbitol, rice sweeteners and protein in local
and international markets. We aspire to be known for the quality of our products and intend to
play a pivotal role in the economic and social development of Pakistan.

MISSION STATEMENT
As a prominent producer and supplier of various pharmaceutical products especially sorbitol,
we continue to strive to achieve excellence in performance and aim to exceed the expectations
of all our customers. We target to achieve technological advancements to inculcate the most
efficient, ethical and time tested business practices in our management.

CODE OF CONDUCT
The Board has adopted a code of conduct for its members, executives and staff, specifying the
business standards and ethical considerations in conducting its business. The code includes:
o Corporate governance
o Health – Safety & Environment
o Service to Society

CORPORATE GOVERNANCE
Our primary purpose is to run our business efficiently and profitably to enhance shareholders’
value but we do it with responsibility to all stakeholders. Profitability is essential to discharge
this responsibility and the corporate resources are primarily deployed in the achievement of
this end.

o Our Shareholders: To protect shareholders’ investments and provide an acceptable


return to them.
o Our Customers: To win and maintain customers by developing and providing products
and services, which offer value in terms of price, quality, safety and environmental
impact supported by requisite technological expertise.
o Our People: To respect the human and legal rights of its employees with good and safe
conditions of work and competitive terms of service.

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HEALTH, SAFETY & ENVIRONMENT
We take maintenance of health and safety standards at our plants and offices seriously. We are
committed to actively managing health and safety risks associated with our business and are
actively working towards improving our procedures to reduce, remove or control the risk of
fire, accidents or injuries to employees and visitors. All our activities at all our campuses are
required to conform to international standards for health and safety certified by ISO.

SERVICE TO SOCIETY
We are increasingly conscious of the role we have to play as responsible corporate citizens in
fulfilling a wide variety of community needs. We believe in “giving something back” by
helping address issues such as education, healthcare, public safety, environmental health etc.
These principles are not just put forth on paper but we have over the years actively strived to
promote issues of education, health and environment.

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ORGANIZATIONAL CULTURE
Habib ADM Limited is fully customer oriented organization with its continuous modification
of products provided to customer on demand. Habib ADM Limited serves its product to
Pharmaceutical Industries as well as for Confectionary items. Hence it is ethically being
imposed on the organization to do its business with responsibility.

Production processes are consistently reviewed and upgraded wherever possible; new methods
are developed, tested, and implemented if found to be better; control systems repeatedly tested,
audited, and strengthened; all measures are taken to ensure Habib ADM Limited remains the
most advanced and dependable supplier offering customers the highest quality products.

Culture in Habib ADM Limited is Traditional. Habib ADM Limited, follows Centralized
instructions with one authority line.

All the policies, rules & regulations has been instructed by the authority with minimal
interference of functional department managers based on the situation in the meeting. As the
decision has been instructed by authority all the departments are being instructed via its
departments head to follow the new implemented policies, rules & regulations.

Environment in Habib ADM Limited is stable because all the members in the organization
follows the Centralized policies and also been instructed by their managers to maintain the
environment stable with flexibility.

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ORGANIZATIONAL STRUCTURE:
Organizational structure refers how information flows from level to level within the company.
It also refers the rules and policies designed for outlining that how various work roles and
responsibilities are delegated, controlled and coordinated.

BOD

Human Import &


Finance Production Marketing
Resource Export

CFO Manager Manager Manager Manager

Asst. to Asst. to Asst. to Asst. to


Manager
Manager Manager Manager Manager

Asst. to
Officers Officers Officers Officers
Manager

Officers

First Line Managers:


In Habib ADM Limited, Executive Director has the authority to approved the routine transactions work as
well as in minutes of meeting with minimal interference of his subordinates.

Middle Line Managers:


In Habib ADM Limited, CFO & Managers of different departments lie in the category of Middle Line
Manager, where they follow the instructions of Executive Directors & convey it to their subordinates.

First Line Managers:


In Habib ADM Limited, Officers related with lower level of staff who works under the Middle Line Managers
and they follow the instructions which is being conveyed by them.

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HIERARCHY DETAIL
Habib ADM Limited has Seven (07) Directors in which Two (02) Directors are EXECUTIVE
and Five (05) Directors are NON-EXECUTIVE.

Habib ADM Limited has One (01) Company Secretary and One (01) Legal Advisor.

Habib ADM Limited has Finance, Human Resource, Production, Import & Export and
Marketing Departments.

Finance Department control by the CFO who is reportable to BOD. Under the supervision of
CFO finance department has One (01) Finance Manager, one (01) Assistant to Finance
Manager and Twelve (12) Officers.

Human Resource Department control by Human Resource Committee it has One (01) HR
Manager, One (01) Assistant to HR Manager and Four (04) Officers.

Production Department control by the Manager with One (01) Assistant to Manager and
Three Hundred & Fifty (350) Officers or Labours. Due to sensitivity of products CEO of the
company himself control the production department.

Import & Export Department control by Manager for Import and Manager for Export, both
of them reportable to BOD. They have One (01) Assistant to Manager for Import & One (01)
Assistant to Manager for Export and Four (04) Officers – Two (02) are for Import Department
& Two (02) are for Export Department.

Marketing Department control by Manager who is also reportable to BOD with One (01)
Assistant to Marketing Manager and Eight (08) Officers.

On the whole, Habib ADM Limited has Four Hundred employees who play vital role for their
organization with their work specialization, skills & ability to make Habib ADM Limited a
profitable firm with their passion and responsibility.

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STANDARD OPERATING POLICIES

HUMAN RESOURCE

o Official timing for employees is 9 AM.


o Grace time is allowed for 15 Minutes. i.e. 9:15 AM.
o Employee who punches his/her card after Grace time he/she will mark as Late comer.
o 03 late comings of an employee will be marked as 01 Day absent.
o Official Off timing is 5 PM.
o Company will provide transportation service to its Employees.
o Company maintained CAR will be provided to Managerial staff as defined terms.
o Exit Interview will be held when employee will leave the Company.
o Employee will return back company Cards, Badges & Other accessories.

Candidate Selection
o Department will intimate about vacancy to HR Department.
o HR department will be observed candidate for the vacant position internally.
o For external appointments HR department made advertisement by using various
medium of channels.
o Analysis of Curriculum Vitae with job specification by the HR department.
o Call for Interview for short listed candidates.
o Commenced the interview for selected candidates by HR departments.
o Commenced the 2nd interview for short listed candidates by Head of relevant
department.
o Select the best candidate for the offered Job.
o Hire an employee with approval of relevant department head, HR head & from
Chairman (If the organization is hiring middle line managers)

FINANCE

o Treasury Officer should be responsible for the safety of Cash in hand.


o Cash in transit will be insured.
o Bank reconciliation statement will be made fortnight & monthly.
o Books of Accounts will be updated daily.
o Petty cash fund in Rs. 100,000 will be maintained to meet daily petty expenditure.
o Bank receipt voucher will be prepared for the amount received in Bank & will be
recorded in Bank receipt book.

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o Payment to suppliers will be made when it becomes due as per define aging.
o CFO and Non-Executive Directors are signatory for the cheques.

PURCHASES & WAREHOUSE

o Raw material purchased locally and through import according to the need.
o Local purchases will be decided based on supplier’s profile and past history.
o Letter of Credit account will be maintained with bank for the import of material.
o Purchase order will be issued, showing description quantity & quality of items.
o Gate pass should be made & will be signed by store department in case of store items,
production manager in case of raw material for every item received.
o All the material received from gate shall be kept in store and dispatched accordingly to
different departments based on requisition slip as requested by relevant department
head.
o Manager store will issue report of issuance and consumption of store items daily.
o Manager store will maintain economic order quantity of the store & general production
items.

SALES

o Sales made to the customers after receiving of 100% payment in advance.


o After receiving of payment goods will be dispatched to the customers.
o Outward Gate Pass will be made for every sale.
o Security will ensure the Quantity in outward gate pass and actual dispatched quantity
should be same in manners.
o With delivery of goods Delivery note signed by customer (locally) & return it back to
the company representative.

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STRUCTURE DESIGN AND ELEMENTS
Habib ADM Limited has functional organizational structure. It has common department in it
like Finance, Human Resource, Production, Import & Export and Marketing and it organize
the people by separating each of these areas and managing them independently of the others.
The advantage of this type of structure is that functions are separated by expertise, work
specialization & skills.

DEPARTMENTALIZATION
Habib ADM Limited follows the “Functional Departmentalization” because Habib ADM
Limited is organized into departments based upon the respective functions each perform for
the organization. Habib ADM Limited has following departments.

o Finance Department
o Human Resource Department
o Production Department
o Import and Export Department
o Marketing Department

ELEMENTS - WORK SPECILIZATION & CHAIN OF COMMAND


Habib ADM Limited uses work specialization into its respective departments like,

In Finance department, some of the officers has perform their specialized task for suppliers &
their payments, some of them perform their specialized task for customers and their payments.
Some of them has perform their specialized task for taxation.

In Production department, they have several departments like Grading, Mixing, Cleaning,
Drying, Boiler then final process. Each department has workers who perform their assigned
task with their expertise & skills to fulfil the requirement of the organization.

In Habib ADM, Limited chain of command is well defined because from CEO to lower level
of management knows about his / her reporting module regarding his / her task like who reports
to whom.

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EMPLOYEES MOTIVATION
With respect to early theory of management, Habib ADM Limited has some traits in it policy
or in culture which leads Habib ADM to fall in the category of the following theory.

MASLOW HIERARCHY OF NEEDS - THEORY


Maslow hierarchy is an arrangement that ranks people or concepts from lowest to highest.
According to Maslow, individuals must meet the needs at the lower levels of the pyramid before
they can successfully be motivated to tackle the next levels.

Maslow has proposed that within every person is a hierarchy of five needs:
o Physiological Needs
o Safety Needs
o Social Needs
o Esteem Needs
o Self-Actualization Needs

PHYSIOLOGICAL NEEDS
Habib ADM Limited follows the government of Pakistan yearly budget remuneration for its
employees. It also motivates its employees by providing them Bonuses twice a year, Life
Insurance for employees, Yearly Increment, EOBI & monthly rewards & appraisal on the basis
of their performance regarding their assigned task by their managers.

SAFETY NEEDS
Habib ADM Limited has provided the 100% job security until unless a employee misconduct
or violate the rules & regulations of the organization. It has approx. 60% employees who work
for Habib ADM Limited since last 18 Years.

SOCIAL NEEDS
Habib ADM Limited has great relationships with its employees as well as employees has good
interaction with their subordinates and upper level of management.

ESTEEM NEEDS
Habib ADM Limited has a platform where an employee can see a bright future for him/herself.
Monthly rewards of employee have a record with Human Resource department which will be
treated as appraisal or promotional document at the end of the year. Habib ADM Limited also

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provide its employees to attend workshops held by the different departments related to the
organization in order to polish the skills and expertise of the employees.

SELF-ACTUALIZATION NEEDS
Habib ADM Limited has few persons who are self-actualized because self-actualization is a
need for growth & desire to become everything a person is capable for & to realize potential,
capacities and talents of a person.

McCLELLAND’S THEORY OF NEEDS


McClelland indicates that individual are motivated based on three needs:

o Need for Achievement


o Need for Power
o Need for Affiliation

NEED FOR ACHIEVEMENT


Habib ADM Limited has employees who have high achievement of needs because they find
out personal responsibility for findings the solutions towards a problem even on that time when
the problem is not their problem. They are initiator in the eye of the head of the department
which may cause the result in the shape of appraisal of monthly rewards. This type of strategy
motivates other employees to do something more special in order to be rewarded well.

NEED FOR POWER


Habib ADM Limited has provided the authority to its employees with their strength which
enables them to get things done and make a difference in positive way among their departments.
Authority or Power in the organization is not a negative construct. It is essential to use these
processes to make change and to make a difference.

NEED FOR AFFILIATION


Habib ADM Limited employees enjoy being with colleague and being accepted and liked by
the employees around them. Employees from different department follows horizontal co-
operation rather than competition over departmental task. Employees in Habib ADM Limited
keep relationship with high amount of trust and mutual understanding.

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McGREGOR’S THEORY OF X AND THEORY OF Y
If we see in the light of McGregor’s Theory of X and Theory of Y, Habib ADM Limited has
fall in both category. Most of the employees in production department as well as in office staff
has fall in the category of Theory Y because they are very passionate with their work & they
all are rewarded well by the organization, but some of the employee in Habib ADM Limited
has fall in the category of Theory X because they are not very much passionate towards their
responsibility & they resist change. Management of Habib ADM Limited make different
strategy to overcome the problem of the employee who fall in the category of Theory X.

CONTEMPORARY THEORY OF MOTIVIATION

EQUITY THEORY
Habib ADM Limited has no favouritism in its decision while making rewards or appraisals. It
appreciates the performance of employees. If someone has put his all efforts beyond the
expectations of the management he/she is rewarded via distributive justice otherwise the
organization follows the procedural justice in the category of equity theory.

LEADERSHIP

BEHAVIOURAL THEORIES OF LEADERSHIP: AUTOCRATIC STYLE


Habib ADM Limited has autocratic style in its leadership, it we talk about the departments in
the organization managers of different departments used to assigned the task to their
subordinates with minimal participation of their subordinate suggestion.

SOURCES OF POWER
Habib ADM Limited has leaders in the shape of CEO and Managers at different levels of
different departments. Leadership has some power sources which include Legitimate Power,
Coercive Power, Reward Power, Export Power & Referent Power.

Managers of Habib ADM Limited uses the power of leadership based on the situation like they
use reward power in order to appreciate someone work by means of money or promotions.
Sometimes they use Coercive Power to control the situation by threating employees for
demotion or transfer into different departments (production). Legitimate power has the
authority in the organization which include coercive & reward power.

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RECOMMENDATIONS
We are very thankful to the team of Habib of ADM Limited who gave us an opportunity to
visit their organization for our project completion on organization.

During our visit or stay time in the Habib ADM Limited we have observed the following points
which you might treat as recommendation for the further betterment of the organization.

o There should be leverage in advance payment method for new & old customers. Habib
ADM Limited has the policy of 100% advance payment before the delivery of the goods
which makes hurdle for new customers. It is also one of the reason that local traders
who import the same product from India sell the product to the local buyer with
different payment mode strategy, on the long-term basis it will lead towards the loss of
the customer.

o Habib ADM Limited uses Plastic Drums for its local supply in Karachi which could
be used for 03 supplies only from Origin to its destination in Karachi. It impacts on cost
as per our observation. They can make steel drum with entail accessories in order to
supply its goods to the destination. It will have a longer life than plastic drum and safe
the time of procurement department and other staff who involve in purchasing of plastic
drum.

o HR department of Habib ADM Limited can play better role at their side, they have now
used RFID cards for employees while the biometric machine which Habib has in its
premises contains hybrid operating system of Thumb Impression as well as RFID card
options. We recommend to you that kindly issue RFID card to those employees who
has facing problem on impression attendance via thumb. RFID card might be used by
someone instead of some other person. We also recommend it to you kindly take
manual attendance from departmental heads on daily base in order to cross verification
of attendance.

o It has also been observed while visiting the factory premises that Habib ADM Limited
has much employees who fall in the category of retirement. Habib ADM Limited should
make retirement policy for its employees & provide them their retirement rights &
allow young blood in the organization in order the proceed for the more success & make
organization more profitable.

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