ORGANIZATIONAL BEHAVIOR

ATLAS HONDA LTD.

SUBMITTED TO

COL (R) SUHAIL AHMAD

SUBMITTED BY

MUHAMMAD ATIQUE 28S-608

BILAL JAMIL 28S-601
 Table of Contents

Executive Summary………………………………………………………... 1
Introduction………………………………………………………………… 2
Vision & Mission Statement………………………………………………. 3
Company Profile…………………………………………………………… 3
Management Profile……………………………………………………….. 4
Organizational Structure…………………………………………………… 6
Milestones………………………………………………………………….. 7
Products Overview………………………………………………………… 8
Functions…………………………………………………………………... 9
Strategic Goals……………………………………………………………... 9
Quality……………………………………………………………………... 10
Core Competencies………………………………………………………… 11
Core Values………………………………………………………………... 11
SWOT Analysis……………………………………………………………. 12
Market Position…………………………………………………………….. 13
Code of Ethics……………………………………………………………... 14
Human Resource Philosophy………………………………………………. 15
HR Mission & Objective…………………………………………………... 15
HR Functions………………………………………………………………. 16-18
Mgmt By Objectives (MBO)………………………………………………. 19
Culture……………………………………………………………………... 19
Suggestions………………………………………………………………… 19
Sources of Information…………………………………………………….. 20
Organizational Behavior

Executive Summary

Atlas Honda is one of the leading and most growing Automobile (Two wheeler)
company of Atlas Group. It is a Joint venture with Honda Motor Co. Japan. The
Company is manufacturing and marketing four models of motorcycles. It is growing
since 2000 ~ 2001 at the rate of 25 percent per annum. Due to absence or very poor
infrastructure of mass transit and public transport, motorcycle has now become
necessity of life for a large segment of urban and rural population as well.

The company’s objective is to maximize profit through providing high quality

motorcycles and through gaining the high level of customer satisfaction. In this report
company’s vision and mission statement is clearly defined. Then company’s strategic
goals, core competencies and core values are described. In addition company’s
SWOT analysis are also included in this report. After that organization’s different
functions are discussed. The company’s cultural values are also described and at the
end of the report some suggestions are recommended.

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Organizational Behavior

Introduction:
Atlas Honda Limited is a joint venture between the Atlas Group and Honda Motor
Co., Japan. The company was created by the merger of Panjdarya Limited and Atlas
Autos Ltd. in 1988. Both these motorcycle manufacturing concerns were established
by the Atlas Group. In addition, a third concern, Atlas Epak Ltd. was taken over by
the Government of Bangladesh. Atlas Honda Limited manufactures and markets
Honda motorcycles in collaboration with Honda Motor Company. The Company also
manufactures various hi-tech components in-house in collaboration with leading parts
manufacturers like Showa Atsumitech, Nippon Denso and Toyo Denso. Honda
motorcycles are by far the largest selling motorcycles in the country with an
unmatched reputation for high quality, reliability and after-sales-service.

Atlas has undertaken to develop local manufacturing capabilities to the highest,

economically feasible level. While a major role in localization has been assigned to
vendor industries, Atlas has the country’s largest in-house manufacturing capability at
its Karachi and Sheikhupura plants. To support the production facilities, the company
has established an R&D wing and tool making facilities through CDA & CAM which
are growing rapidly in size and function as the company expands. Atlas has managed
to execute 14 Joint Venture/Technical Assistance Agreements between local vendors
and foreign manufacturers for transfer of technology. Besides, Atlas has directly
executed 5 Joint Venture/Technical Assistance Agreements other than Honda.

Atlas management is striving to modernize company operations by adapting

applicable aspects of research and theory and more specifically, Honda’s unique
philosophy of hard/soft technologies to the realities of Pakistani conditions. Company
management structure, systems and processes are changed according to the demands
of the customer, growth and new technology.

Efforts are being made to develop participation at all levels of personnel in decision-
making and a substantial and effective delegation has been established at levels where
applicable. Various participation programs such as ‘Ala Mayar’ Quality Circles
movement, launched in 1985, are strongly encouraged to allow constructive self-
expression and teamwork. The Company training and development programs
encourage all members to develop themselves and contribute to their full potential.

Atlas Honda is playing a pioneering role in creating conditions for easy and confident
use of motorcycles all over the country. A vast and growing network of over 1600
motorcycles sales service and spare parts dealers has been established. In order to
back up this system, Atlas has set up Technical Training Centers in Karachi and
Lahore which provide several courses of varying duration and complexity for
motorcycle mechanics and users each year. Mobile training facilities take the latest
know-how, technology and maintenance of motorcycles to major rural and urban
centers around the country.

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Organizational Behavior

Vision:
“Market leader in the motorcycle industry, coming up as a globally competitive center
of production and exports”

CEO’s vision is very clear. AHL is currently market leader in motorcycle industry by
a wide margin and would definitely like to retain this distinction, with current 55%
market share, company is well positioned. However, in future after WTO complete
implementation, protection from foreign competition would reduce, as duty on
imported motorcycles will be further brought down from the current level of 75%.

Mission:
A dynamic, profitable and growth oriented company through market leadership,
maximizing export and excellence in quality and service; to ensure attractive returns
to equity holders; reward employees according to their ability and performance; to
foster a network of researchers and engineers ensuing unique contributions to the
development of the industry; customer satisfaction and protection of the environment
by producing emission friendly green products and to remain a good corporate citizen
fulfilling its social responsibilities in all respects.

Company Profile:
C.E.O: Mr. Saqib Hussain Shirazi

Plants Locations: ƒ F-36 Site Karachi

ƒ 26/27 Km Lhr-Skp Road, Sheikhpura

Products: Environment friendly 4-Stroke Honda Motorcycles

ƒ CD-70
ƒ CG-125
ƒ CD- 100
ƒ CG-125 DLX

Export: ƒ Nepal
ƒ Srilanka
ƒ Bangladesh
ƒ Afghanistan

Annual Capacity: 600,000 Units

Atlas Honda Ltd. 3

Organizational Behavior

Management Profile:

BOARD OF DIRECTORS

Chairman Yusuf H. Shirazi

Chief Executive Officer
Directors
Company Secretary
Saquib H. Shirazi
Koji Nakazono
Nurul Hoda
Sanaullah Qureshi
Sherali Mundrawala
Toshitsugu Kaneko
Yoshitaka Kitamura
Zaryab Tarique

GROUP EXECUTIVE COMMITTEE

Chairman Aamir H. Shirazi

Members Frahim Ali Khan
Iftikhar H. Shirazi
Jawaid Iqbal Ahmed
Saquib H. Shirazi
Secretary Theresa Dias

GROUP PERSONNEL COMMITTEE

Chairman Yusuf H. Shirazi

Members Aamir H. Shirazi
Bashir Makki

GROUP SYSTEMS & TECHNOLOGY COMMITTEE

Iftikhar H. Shirazi
Chairman
Members Mushtaq Alam
Zia Ullah Begg
Secretary Sarfraz Hassan

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Organizational Behavior

AUDIT COMMITTEE

Chairman Sanaullah Qureshi

Members Sherali Mundrawala
Nurul Hoda
Head of Internal Audit Aamir Shakoor Khan
Secretary Ashfaq Ahmad

MANAGEMENT COMMITTEE

Chief Executive Officer Saquib H. Shirazi

Vice President Marketing Nurul Hoda
Vice President Technical Toshitsugu Kaneko
Chief Financial Officer Suhail Ahmed
General Manager Plants Col. (R) Khalid Aziz
General Manager CAMA Maqsood A. Basraa
General Manager Development Yoshitaka Kitamura
General Manager Quality Assurance Lt. Col. (R) Sultan Ahmed

General Manager Human Resource Razi-u-Rehman

General Manager IT Mushtaq Alam
General Manager Logistic Talha Saad

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Organizational Behavior

Organization Structure

Mgr CAD CAM KHI

Mgr R & D
KHI Plant
GM E & P DGM E & P
Vendor Develop.
KHI Plant

GM R & D Vendor Develop.

Kitamora SKP Plant

VP Tech Mgr R & D

Kaneko SKP Plant

Mng. Parts Develop.

National Mgr. PPC &
Stores
GM Plants
Manager Operations SKP
Manager Projects
Planning
Manager Operations
KHI Plant

Mgr Cost
Karachi Plant
Mgr Accounts
GM Finance KHI Plant

Mgr Accounts SKP

Mgr Cost
SKP Plant
CEO
Saquib H Shirazi National Mgr
Customer Care R Mgr Sales LHR I

National Mgr Sales R Mgr Sales LHR II

GM Marketing

National Mgr Service R Mgr Sales South

National Mgr Parts R Mgr Sales Multan

Planning

National Mgr Logistics

KHI Plant R Mgr Sales RWL

GM Logistics
National Mgr Logistics
SKP Plant National Mgr Commercial

Mgr QA KHI Plant

GM Quality
Assurance
Mgr QA SKP Plant

MAIR KHI Plant

GMHR Mgr Human Resource

MAIR SKP Plant

GM CAMA Mgr CAMA

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Organizational Behavior

Milestones:
The company is engaged in the manufacturing, sales of motorbikes and auto parts.
Since its inception the company has experienced an unprecedented growth in its
operations from a small manufacturing company to the leading motorbike
manufacturer of Pakistan. Following is the chronological order of the major events in
the company's history:

Contribution to national exchequer reached Rs. 3.18 billion - 72% of wealth generated,
2004
out of Group 7.56 billion (1.48% of the Government total revenues)
2003 Major re-adjustment of prices to pass on the benefits to customers
2003 Best Corporate Report award by joint committee of ICAP & ICMAP
2003 Achievement of landmark sales of 100,000 motorcycles
2002 Deletion level reached to 87% and 80% for CD70 & CG125 respectively
2002 Introduction of Gratuity Scheme for staff
2002 Best Corporate Report award by joint committee of ICAP & ICMAP
Concept of 5S dealership - Sales, Service, Spare Parts, Second hand exchange and
2001
Special (Credit) sales launched
2001 New Block for hi-tech engine plant
2000 Investment in Crankshaft Project
1999 ISO 9002 certification for both factories
1998 New models (MMC) of CD70 & CG125 launched
1997 Investment in Gear Project
1995 Exports to Bangladesh
1995 Export Agreement signed with Honda Motor Company Limited
1994 Mr. Kawamoto President, Honda Motor Company Limited, visited AHL
1992 Change of name to Atlas Honda Limited (AHL)
1991 Inauguration of CG125 Engine Project at Sheikhupura Factory
1990 Merger of Panjdarya Limited into Atlas Autos Limited
1989 Export of built up motorcycles to Nepal
1988 Production capacity expansion III
1988 Joint Venture agreement signed with Honda Motor Company Limited
1987 Inauguration of CD70 Engine Project at Karachi Factory
1982 Deletion Project financed by PICIC
1981 Commercial Producton started at Panjdarya Limited
1981 Production capacity expansion II
1979 Incorporation of Panjdarya Limited as Joint Venture with Honda Motor Company Limited
1976 Production capacity expansion I
1965 Public offering of Shares
1964 Commercial Production started
1962 Technical Assistance Agreement signed with Honda Motor Company Limited
1962 Incorporation of Atlas Autos Limited

Atlas Honda Ltd. 7

Organizational Behavior

Products

CD-70 CG-125

CD-100 CG-125 DLX

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Organizational Behavior

Functions:
ƒ Human Resource & Administration
ƒ Finance
ƒ Supply Chain
ƒ Production
ƒ Quality Assurance
ƒ Engineering & Projects
ƒ Marketing
ƒ Research & Development
ƒ Information Technology

Strategic goals:
Customers:
Our customers are the reason and the source of our business. It is our joint aim with
our dealers to ensure that our customers enjoy the highest level of satisfaction from
use of Honda Motorcycles.

Local Manufacturing:
To be the industry leader in indigenization of motorcycle parts.

Technology:
To develop and maintain distinct business advantages through continuous induction of
improved hard and soft technologies.

Shareholders:
To ensure health and viability of business and thus safeguarding shareholders interest
by maximizing profit. Payment of regular satisfactory dividends and adding value to
the shares.

Employees:
To enhance and continuously up-date each member’s capabilities and education and
to provide an environment which encourages practical expression of the individual
potential in goal directed team efforts and compensate them attractively according to
their abilities and performance.

Corporate Citizen:
To comply with all government laws and regulations, to maintain a high standard of
ethics in all operations and to act as a responsible member of the community.

Atlas Honda Ltd. 9

Organizational Behavior

Quality:
A dynamic, profitable and growth oriented company through market leadership,
maximizing export and excellence in quality and service; to ensure attractive returns
to equity holders; reward employees according to their ability and performance; to
foster a network of researchers and engineers ensuing unique contributions to the
development of the industry; customer satisfaction and protection of the environment
by producing emission friendly green products and to remain a good corporate citizen
fulfilling its social responsibilities in all respects.

Quality Policy:

ƒ Commitment to provide high quality motorcycles & parts

ƒ Right work in first attempt and on time
ƒ Maintain and continuously improve quality
ƒ Training of manpower & acquisition of latest technology
ƒ Safe, clean & healthy environment
ƒ Market leadership & prosperity for all

Quality Standards:

In Atlas Honda Limited quality has priority over production. By producing the best
quality motorcycles we can attain No.1 Customer Satisfaction, fulfilling AHL’s goals.
Quality is built into our production methods and Systems and it is important that all
associates understand and strictly comply with all quality regulations.

In order to maintain quality, all associates should be quality conscious, therefore,

every one is required to strictly following guidelines.

ƒ Always remove wrist watches, bracelets etc. before entering the production area.
These can cause scratches.
ƒ Associates working in paint shop must use safety equipments.
ƒ Dandruff and falling hair can also cause quality defect. If you suffer from these
conditions, be sure to consult with your supervisor so that these can be
immediately corrected.
ƒ Dirt and dust are other sources of quality defects, be-sure that you are clean when
you enter the production area. Check that you do not have dirt or stains on your
body and that your uniform is free of stains, mud, dirt, dust, oil or grease.
ƒ Long fingernails may cause scratches and other defects, be sure to keep your nails
short and clean.
ƒ Production workers are advised to always keep their hair short and clean.
ƒ Standardized safety shoes are allowed in the production area, be sure to wear
appropriate shoes when working.
ƒ Eating and drinking material is not allowed in production area.

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Organizational Behavior

5-S Activities:

5-S is a Japanese technique that is used to ensure clean and pleasant work
environment. All associates should perform 5-S activities at their respective
workplaces.

ƒ Sort: Clear out rarely used items by red tagging

ƒ Set in Order: Organize and label a place for everything
ƒ Shine: Clean the work place
ƒ Standardize: Display the operation standards at every work place
ƒ Sustain: Use regular management audits

Core Competencies:
ƒ Largest Capacity Motorcycle manufacturing facility
ƒ Vertically integrated high precision engine parts
ƒ Flexible manufacturing facility
ƒ Only company using ED-Paint Coating System
ƒ Largest nation-wide exclusive Sales and Service network
ƒ Capable of new model development by local R & D

Core Values:
AHL core values have remained the same through out the years and are as follows:

ƒ Strongly believe in that “Customer is King”

ƒ Respect for individual
ƒ Winning – remain ahead of competition through quality
ƒ Continuous innovative & Value added services
ƒ Best return on investment
ƒ Hard-work & Continuous self-improvement & development
ƒ Un ambiguous excellence in all aspects of the Company
ƒ Corporate social responsibility

Atlas Honda Ltd. 11

Organizational Behavior

SWOT Analysis:
SWOT analysis is a strategic planning used to evaluate strengths, weaknesses,
opportunities and threats involved in a project or in a business venture. AHL SWOT
analysis are as follows;

Strengths:

ƒ Largest manufacturing plant in Pakistan (Global Standard factory)

ƒ World-renowned “HONDA” Brand
ƒ Market leadership with precision quality
ƒ Largest product lineup with four popular brands CD70, CD100, CG125 and
CG125 DLX to meet the future challenges
ƒ Widespread dealers network
ƒ Professional management and high skilled staff

Weaknesses:

ƒ Low manufacturing ability of vendors to supply parts for 500K motorcycles

annually
ƒ Difficult to maintain high quality production at high market demand
ƒ Complexity in coordination and communication among facilities, vendors and two
geographical locations i.e. Karachi and Sheikhupura plants
ƒ Slow response or long lead-time from the vendors
ƒ High warranty claims pressure due to premium price product

Opportunities:

ƒ Poor infrastructure of mass-transit. i.e., limited substitution of 2 wheelers

ƒ Rapidly changing Market dynamics
ƒ Being a largest manufacturer can enter India, China and other countries as per
WTO rules and regulations
ƒ Purchasing/Buying behavior is changing (more quality conscious)
ƒ More investors in the vendor business to invest in latest technological specialized
manufacturing processes
ƒ More inflows from the companies, growth in installment

Threats:

ƒ Low barrier of entry of major players after WTO implementation

ƒ Unpredictable frequent changes of government or its policies
ƒ Bargaining power of suppliers (Vendors)
ƒ Bargaining power of buyers (dealers/customers)
ƒ Price war
ƒ Threats of copy products
ƒ Substitute services
ƒ Indian & Chinese entry in Pakistan Market

Atlas Honda Ltd. 12

Organizational Behavior

Market Position

BRAND 2006/07 Sales 2007/08 Sales

HONDA 190,000 58% 287,000 57%

YAMAHA 47,000 14% 70,000 14%

SUZUKI 21,000 6% 25,000 5%

CHINESE 82,000 22% 118,000 24%

TOTAL 340,000 100% 500,000 100%

Atlas Honda Ltd. 13

Organizational Behavior

Code of Ethics:
ƒ Atlas Honda Limited conducts its operations with honesty, integrity and openness,
and with respect for human rights and interests of the employees. It respects the
legitimate interests of all those with whom it has relationships. AHL is committed
to comply with the laws and regulations of Pakistan.
ƒ AHL is committed to create the working environment where there is mutual trust
and respect and where everyone feels responsible for the performance and
reputation of the company. AHL is equal opportunity employer, which recruits,
employs and promotes employees on the sole basis of the qualifications and
abilities needed for the work to be performed. AHL is committed to safe and
healthy working conditions for all employees. We will not use any form of forced,
compulsory or child labor. AHL is committed to provide branded products and
services, which consistently offer value in terms of price and quality. Products and
services will be accurately and properly labeled, advertised and communicated.
ƒ AHL conducts its operations in accordance with principles of good corporate
governance. It provides timely, regular and reliable information of its activities,
structure, financial situation and performance to all the shareholders.
ƒ AHL is committed to establish mutually beneficial relations with its suppliers,
customers and business partners.
ƒ AHL strives to be a trusted corporate citizen and, as an integral part of society,
fulfills its responsibilities to the societies and communities in which it operates.
ƒ AHL is committed to make continuous improvements In the management of
environmental impact. It works in partnership with others to promote
environmental care, increase understanding of environmental issues and
disseminate good practice.
ƒ AHL make innovations to meet consumer needs. It respects the concerns of
consumers and of society. It works on the basis of sound research, applying high
quality standards.
ƒ AHL believes in fair competition and supports development of appropriate
competition laws. AHL and employees conduct their operations in accordance
with the principles of fair competition and all applicable regulations.
ƒ Compliance with business principles is an essential element. The Board of
Directors of AHL is responsible for ensuring that these principles are
communicated to, and understood and observed by, all employees. Assurance of
compliance is given and monitored each year. Compliance with the Code is
subject to review by the Board supported by Audit Committee of the Board. The
Board of AHL expects employees to bring to their attention, or to that of senior
management, any breach or suspected breach of these principles.

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Organizational Behavior

Human Resource Department:

HR Philosophy:

The AHL Human Resource Philosophy is based on the conviction that the well being
of the company and the well being of its people are one and the same. The company is
dedicated to the belief that its most valued asset is its people. Our commitment is to
employ on the basis of Merit, Intellect, Integrity and Character to ensure that every
employee is treated with dignity and respect and in a fair consistent and equitable
manner; to create a stimulating and supportive atmosphere in which they may work;
and to aid and encourage them in the realization of their full potential.

We recognize that the success of this philosophy depends in the large measure on the
manner in which employee’s at every level carry out their obligations to each other
and to the Company. Our philosophy will not work if employees do not have a feeling
of mutual confidence and loyalty, as well as respect of each other as human being.

In the same context of obligations and mutual trust and confidence, all employees are
expected to maintain certain standard in relation to their work, and in representing
themselves as employees of AHL.

Employees of AHL must be committed to the following principles:

ƒ Accept total responsibility for the success of the Company’s HR philosophy,

policies and programs.
ƒ Have through knowledge of the Company’s HR philosophy and programs, and
review them with subordinates to ensure their total understanding.
ƒ Ensure consistent and fair interpretation of personnel policies.
ƒ Exercise leadership by demonstrating integrity, professional knowledge, the
courage of their convictions, and concern for the feeling of others.
ƒ Establish a relationship with subordinates that encourage a free flow of
information in both directions, permit open discussion of differing views and
allow decision making at the most appropriate level.
ƒ Accept and support decisions made contrary to their expressed positions.
ƒ Apply the highest standards of ethics, integrity and honesty.
ƒ Comply with Company policies and procedures.

HR Mission:

ƒ To inculcate organizational culture which supports optimum performance.

ƒ Encourage the employees to analyze and evaluate his/her own performance in a
realistic manner.
ƒ Be friendly and supportive to the employees of the company and make them feel
relaxed and in a positive frame of mind.

HR Objective:

To achieve the Company’s objective the HR Department of AHL will recruit, develop,
utilize, evaluate, maintain and retain the right number and types of employees to
provide the organization with an appropriate workforce.

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Organizational Behavior

Management Policy:
ƒ Proceed always with ambition and youthfulness.
ƒ Respect sound theory, develop fresh ideas and make the most effective use of time.
ƒ Enjoy your work and encourage open communication.
ƒ Strive constantly for a harmonious flow of work
ƒ Be ever mindful of the value of research and endeavor.

HR Functions:

1. Recruitment and selection

2. Training and development
3. Performance appraisal
4. Motivation
5. Employees services safety, health & welfare
6. Manpower planning
7. Salary administration
8. Industrial relation
9. Communication system
10. Negotiation with union
11. Terms and condition of employment

1. Recruitment and selection:

ƒ Forecasting for the vacant positions to be filled

ƒ Advertisements for vacant positions
ƒ Receiving applications and complete bio data
ƒ Building a pool of candidates
ƒ Short listing the candidates and building a secondary and purified pool
ƒ Written test
ƒ 1st interview
ƒ 2nd interview
ƒ Final interview
ƒ Medical test

2. Training and development:

ƒ Apprenticeship training
ƒ Informal learning
ƒ Job instruction training (JIT)
ƒ Tele-training
ƒ Videoconferencing
ƒ Job rotation

Off-Job Trainings:

ƒ Corporate universities association (LUMS), (PIMS)

ƒ ATLAS development centers (ADC)
ƒ seminars
ƒ Japanese tour for training

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Organizational Behavior

3. Performance Appraisal:

ƒ Employee’s objectives setting

ƒ Self evaluation
ƒ Measuring the achievement of objectives
ƒ Following concern department’s recommendations
ƒ Recognizing the hard work
ƒ Rewarding the deserving employees

4. Motivation:

Reward System:
Company revises salaries of all management staff on the basis of economy inflation
and individual performance. Group personnel committee decides inflation rate and
salaries of all management staff then increases. Second portion of annual increment is
decided on the basis of individual performance.

Promotions:
Employee is moved whenever vacancy is available. Normally company believes on
promotions from within the company.

5. Employees Services Safety, Health & Welfare:

ƒ Car/Motorcycle
ƒ Bonus
ƒ Gratuity
ƒ Provident Fund
ƒ Group Life Insurance
ƒ Health Insurance/Hospitalization Plan
ƒ Personal accident Insurance
ƒ Conveyance & Meal Allowance
ƒ Compensatory Leaves
ƒ Inconvenience Allowance
ƒ Personal Loan
ƒ Welfare Loan
ƒ Traveling Allowance
ƒ Marriage Gift
ƒ Award on retirement
ƒ EX-Gratia Grant upon Death

6. Manpower Planning:

ƒ Computerized forecasting and planning

ƒ Human resource information system
ƒ Qualification inventories
ƒ Forecasting Techniques
ƒ Candidates availability
ƒ Computerized personnel placement
ƒ Division of labor according to production and shops

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Organizational Behavior

7. Salary Administration:

ƒ Upward communication
ƒ T.M.S (time management system)
ƒ Leaves adjustment
ƒ Sandwich deductions
ƒ Salary slip
ƒ Transfer of salary in employee account

8. Industrial Relations:

ƒ Relations with dealers

ƒ Relations with internal customers (employees)
ƒ Relations with external customers
ƒ Relations with vendors

9. Communication System:

ƒ Upward communication
ƒ Downward communication
ƒ Parallel communication
ƒ Mediums of communication
ƒ Lotus notes (email)
ƒ Internal communication letter (i.Com)
ƒ Letters
ƒ Fax
ƒ Land lines and mobiles

10.Negotiation with Union:

ƒ Increase in basic pay

ƒ Conveyance allowance
ƒ Staff welfare loan
ƒ Gift on marriage of daughter
ƒ Disability coverage
ƒ Award on retirement

11.Terms & Condition of Employment:

ƒ Probation
ƒ Duties
ƒ Transfer within the company
ƒ Transferred to sister concerns
ƒ Termination
ƒ Participation in union activities
ƒ Registered Medical Practitioner

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Organizational Behavior

Management By Objectives: (MBO)

Every year all management staff prepares their next year objectives and action plan in
align with company objectives. These objectives are discussed and approved by
immediate supervisor/manager. These objectives also been reviewed by the senior
management on half yearly basis. Annual performance appraisal also based on
achievement of these objectives and reward recognition follows accordingly.

Culture:
AHL culture is a blend of Pakistan & Japanese culture.

Its main characteristics are as follows;

ƒ Friendly & Safe environment

ƒ Respect for every individual and recognition
ƒ Easy access to the Higher Management
ƒ Openness to share ideas
ƒ Always welcome to suggestions
ƒ Equal opportunities for personal growth
ƒ Same uniform for everyone (White)
ƒ Same cafeteria and meal for everyone

Recommendations: (In the aspects of OB)

ƒ To be a market leader, “Quality” should be improved in all aspects.
ƒ HR Mgmt must promote organization culture.
ƒ HR Mgmt must conduct ethical audit.
ƒ Performance Appraisal system must be more clear & transparent.
ƒ There must be a regular system of learning employees the organizational culture.
ƒ The Mgmt should take initiate in motivational activities. (Positive Reinforcement)
ƒ At present Reward System is annual based. It should be quarterly to keep
employees motivated throughout the year.

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Organizational Behavior

Sources of Information:
ƒ Human Resource Deptt.
ƒ Administration Deptt.
ƒ Quality Assurance Deptt.
ƒ Research & Development Deptt.
ƒ Sales & Marketing Deptt.

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