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Table of Contents
1. Introduction..........................................................................................................................................3
1.1.Background ....................................................................................................................................3
1.2.Problem Discussion........................................................................................................................4
1.3. Research Question.........................................................................................................................4
1.4. Aim & Obecti!es .........................................................................................................................."
2. Theoretical Frame Work:...................................................................................................................6
2.1. Peo#le$ %nno!ation and learning...................................................................................................&
2.2 'anagement Accounting(...............................................................................................................)
2.2.1. Balanced Scorecard ...............................................................................................................7
2.2.2. Control Systems ....................................................................................................................8
2.2.3. Motivation and Empowerment...............................................................................................8
3. Empirical ata.....................................................................................................................................!
3.1. 'anaging *uman Resource..........................................................................................................+
3.2. Peo#le or ,m#lo-ees.....................................................................................................................+
3.3. %nno!ation....................................................................................................................................1.
3.4. 'oti!ation and ,m#o/erment.....................................................................................................11
3.". 0raining & 1earnings..................................................................................................................12
". #nal$sis...............................................................................................................................................13
4.1. Peo#le$ %nno!ation and 1earning................................................................................................13
4.2. Balance 2core 3ard.....................................................................................................................14
4.3. 3ontrol 2-stems...........................................................................................................................1"
4.4. 'oti!ation and em#o/erment ....................................................................................................1"
%. Conclusion and &u''estions..............................................................................................................16
".1. 3onclusion ..................................................................................................................................1&
".1. 2uggestions .................................................................................................................................1&
6. (eferences...........................................................................................................................................1)
). #ppendices..........................................................................................................................................1*
).1. 3om#an- %ntroduction.................................................................................................................14
).2. 1ea!e Polic-.................................................................................................................................1+
).3. Recruitment Process....................................................................................................................2.
).4. *R 1ong term Re/ards$ Bene5its$ 1eisure Acti!ities(.................................................................21
)." A##raisal 6orm %nterloo#(............................................................................................................22
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1. Introduction
!e st"dy o# !eme 2 regarding st"dy o# management control over $"man %eso"rce
o# a company& !e '"t!ors selected ()nterloop *imited+ a soc,s man"#act"ring
company esta-lis!ed in Pa,istan. o move wit! t!e st"dy !e '"t!ors !ave st"died a
n"m-er o# t!eories regarding $"man %eso"rce Management and e.isting $% system
o# )nterloop. !e st"dy incl"des correlation o# t!e t!eories wit! t!e act"al practices in
c"rrently r"nning $% system. !o"g! t!e st"dy only re#lects #ewer areas o# $%
#"nction in t!e company.
'n analysis among t!ese strategies and act"al implications in t!e company !ave -een
disc"ssed in t!e analysis section& on t!e -asis o# t!ese disc"ssions and implications
res"lts and own re#lections !ave -een !ig!lig!ted in t!e later part o# t!e paper.
!e appendi. section incl"des some act"al #acts and #ig"res regarding "nit pict"res
and an introd"ction to t!e company.
1.1. Background
!e comple.ity o# managing an organi/ation today re0"ires t!at managers -e a-le to
view per#ormance in several areas sim"ltaneo"sly& 1aplan and 2orton 314425. Many
companies are "ndergoing organi/ational c!anges encompassing innovative
approac!es to organi/ing prod"ction processes& restr"ct"ring wor, practices and
developing new planning and control mec!anisms& C!en!all 314485.
o apply reso"rces prod"ctively& it is necessary to ,now w!ere t!ey s!o"ld -e "sed
and !ow t!ey will yield t!e !ig!est ret"rn& 6o!anessen et al. 314445 and among
reso"rces& people can -ecome more e##ective -y trying to ma,e t!em "nderstand t!e
importance o# t!e processes in w!ic! t!ey are involved& 6o!anessen et al. 314445. !e
personal "se#"lness o# a c!ange is t!e most compelling revelation& people in t!e
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organi/ation can !ave& w!en considering a c!ange e##ort& and& all people !ave
somet!ing t!ey wo"ld li,e to address in t!eir 8o-s. 9!en t!ey e.perience a c!ange
initiative as -eing one t!at allows t!em to improve t!eir own per#ormance& t!ey will
not only s"pport t!e c!ange& t!ey will "nderstand clearly w!at it is and w!y it is -eing
cond"cted. Meyer 32::15. !e "ltimate s"ccess depends "pon eac! individ"al in t!e
organi/ation ;;claiming<< t!at vision to -e !is own and t!e main t!ing is to motivate.
6o!anessen et al. 314445. 'n aligned organi/ation enco"rages -e!aviors s"c! as
innovation and ris, ta,ing -eca"se individ"als= actions are directed toward ac!ieving
!ig!>level o-8ectives. 1aplan and 2orton 32::75
1.2. Problem Discussion
)n today<s glo-al economy& no organi/ation can e.ist #or a long period o# time i# it
does not !ave t!e capacity to c!ange and adapt to new circ"mstances& and )t is ris,y
to not innovate 6o!anessen et al. 314445. !e dilemma is& !owever& t!at innovation
!as its ris,s. 9!en as,ed !ow to identi#y t!e vario"s negative and positive #orces&
!indering or enco"raging innovation& t!e world>class per#ormers emp!asi/ed
in#ormation gat!ering& analysis and comm"nication. !ro"g! t!e analysis t!ey c!ec,
t!e in#ormation gat!ered against t!eir own pict"re o# t!e sit"ation. !is in#ormation is
"sed to create strategies #or innovation& 6o!anessen et al. 314445. Even s,illed
employees& provided wit! s"per- access to in#ormation& will not contri-"te to
organi/ational s"ccess i# t!ey are not motivated to act in t!e -est interests o# an
organi/ation or i# t!ey are not given #reedom to ma,e decisions and ta,e actions&
1aplan and 2orton 3144?5.
1.3. Research Question
$ow t!e innovation and learning process loo, li,e at )nterloop. $ow interloop control
people to adopt t!e c!ange and innovation #or organi/ational e.cellence@
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1.4. Aim & Obecti!es
)nterloop limited is managing a strong $% system w!ere t!ey are trying t!eir -est to
#acilitate t!eir employee -y o##ering -ene#its and #acilitating t!em in t!eir learning
process& in terms o# leaves& wel#are #"nds& cond"cting t!eir training sessions. !e
p"rpose o# t!e st"dy is to get some practical ,nowledge o# a real time organi/ation i.e.
()nterloop *imited+ and t!eir practical implications. $ow t!ey are managing and
controlling over t!eir $% system& and managing t!eir people in t!e innovation and
c!ange process& and analy/e t!em in t!e lig!t o# relevant t!eories.
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2. Theoretical Frame Work:
2.1. Peo"le# $nno!ation and learning
)n innovation researc!& #ive ,inds o# individ"als !ave -een identi#ied to play ,ey roles
in recogni/ing t!e potential o# an innovation and e.ploiting itB idea generators&
gate,eepers and -o"ndary spanners& c!ampions& sponsors& and pro8ect managers. !e
more e##ective eac! o# t!ese individ"als is& t!e -etter t!e c!ance o# a #irm recogni/ing
t!e potential o# t!e innovation& '#"a! 314485. Employee morale is especially
important #or many -"sinesses& w!ere& #re0"ently& t!e lowest>paid and lowest>s,illed
employees interact directly wit! c"stomers& and satis#ied employees are a
precondition #or increasing prod"ctivity& responsiveness& 0"ality and c"stomer
service. 1aplan and 2orton 3144?5.
)nnovation and C!ange is "sed alternatively -y many a"t!ors& almost -y de#inition&
innovation and e.perimentation involve a depart"re or deviation #rom traditional or
e.pected ways o# doing t!ings. )nnovations can originate #rom C"tside D c!anges in
government policies& competitive environment& prod"ct mar,et or )nside D o"tdated or
mal#"nctioning tec!nology& c!anges in top management& operational pro-lems in t!e
organi/ation. )n most cases innovation will -e sim"lated -y a mi.t"re o# t!ese
c!anges& Clar, 3144A5. 'lso& Sc!"mpeter 314375 re#ers )nnovations as -eing at t!e
!eart o# t!e entreprene"rial roleB t!e creation o# a lin,age -etween new ideas and
mar,ets and *eede and Looise (2005) state it as a deli-erate and radical c!ange in
e.isting prod"cts& processes or t!e organi/ation in order to ac!ieve a competitive
advantage over competitors+.
Organizations do not perform the actions that produce the learning. It is individuals
acting as agents of organizations who produce the ehavior that leads to learning.
Organizations can create conditions that ma! significantl! influence what individuals
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frame as the prolem" design as a solution" and produce as action to solve a prolem.
Learning ma! not e said to occur if someone discovers a new prolem or invents a
solution to a prolem. Learning occurs when the invented solution is actuall!
produced. #rg!ris ($%%%). &ingle loop learning occurs when erros are detected and
corrected without altering the governing values whereas doule loop learning occurs
when" in order to correct an error" it is necessar! to alter the governing values of the
master programs" &mith and 'itt (2005).
2.2 %anagement Accounting&
Management acco"nting ena-les participation in activities directed at ac!ieving
organi/ational planning and control and& review o# t!e empirical management
acco"nting literat"re is t!e e.tent to w!ic! researc! is driven -y c!anges in practice.
B!imani 32::?5.
2.2.1. Balanced Scorecard
!e -alance scorecard identi#y t!e parameters t!at t!e company considers most
important #or competitive s"ccess& -"t t!e targets #or s"ccess is ,eep c!anging.
1aplan and 2orton 314425. !e #inal management process em-eds t!e Balance
scorecard in a strategic learning #rame wor,& and ena-les managers to monitor and
ad8"st t!e implementation o# t!eir strategy and i# necessary& to ma,e #"ndamental
c!anges in t!e strategy itsel#. !ey can also e.amine closely w!et!er t!e -"siness "nit
is ac!ieving its targets #or c"stomers& #or internal processes and innovation and #or
employees& systems and proced"res. 1aplan and 2orton 3144?5. !e -alance
scorecard contains t!ree levels o# in#ormation. !e #irst descri-es corporate
o-8ectives& meas"res& and targets. !e second leaves room #or translating corporate
targets into targets #or eac! -"siness "nit. Eor t!e t!ird level& t!e company as,s -ot!
individ"als and teams to artic"late w!ic! o# t!eir own o-8ectives wo"ld -e consistent
wit! t!e -"siness "nit and corporate o-8ectives& as well as w!at initiatives t!ey wo"ld
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ta,e to ac!ieve t!eir o-8ectives. )t also as,s t!em to de#ine "p to #ive per#ormance
meas"res #or t!eir o-8ectives and to set targets #or eac! meas"re. Personal score card
!elps to comm"nicate corporate o-8ectives to t!e people and teams per#orming t!e
wor,& ena-ling t!em to translate t!e o-8ectives into meaning#"l tas,s and targets #or
t!em selves& 1aplan and 2orton 32:::5.
2.2.2. Control Systems
's per 3C"c!i& 148:5& in an e##ort to minimi/e transactions costs in environments
w!ere actors p"rs"e di##erent goals& and individ"al per#ormance cannot -e per#ectly
rewarded& managers implement t!ree types o# control systemsB t!e mar,et& t!e
-"rea"cratic& and t!e clan control system. 'arket 3ontrol 2-stemB 9it!in t!is system&
manager=s contact wit! and monitor employees. Bureaucratic control s-stemsB
Mangers apply #ormal control mec!anisms s"c! as r"les and reg"lations t!ro"g!
speciali/ation and !ierarc!ies. 3lan control s-stems: $elps t!e mangers to direct
employees "sing common val"es& traditions and -elie#s. 3C"c!i& 148:5.
2.2.3. Motivation and m!o"erment
Esta-lis!ing control and reward systems t!at motivate employees& and w!et!er t!ese
people are motivated or not& and ma,e rig!t decisions wit! t!e availa-le in#ormation
tells organi/ations to w!at e.tent people s!are common goals& '#"a! 314485.
Motivation incl"des t!e processes t!at acco"nt #or an individ"al=s intensity& direction
and persistence o# e##orts towards attaining a goal. %ntensit- D is concerned !ow !ard a
person tries Direction 7 t!at -ene#its t!e organi/ation and Persistence 7 !ow long a
person can maintain !is e##ort. %o--ins 32::A5.
Empowerment can -e re#erred as delegation o5 tasksB Strategies #or delegation wit!in
o"r sample incl"de t!e #ollowingB give responsi-ility and #reedom& develop and
stim"late people& give a"t!ority. Felegation means to tr"st in people& -"t it does not
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mean a-dication. 6o!annessen 6. '. 314445 Empowerment is empowering employees
in c!arge o# w!at t!ey do& %o--ins 32::A5.
3. m!irical #ata
3.1. %anaging 'uman Resource
)n addition to -eing t!e leading Soc,s Man"#act"ring Crgani/ation in t!e Co"ntry&
)nterloop is also a large scale employer. Presently& )nterloop is !aving more t!an
7&2:: employees and people are s"pported -y more t!an 78: e.ec"tive o##icers& w!o
are providing managerial inp"t and g"idance to employees. )nterloop claims t!eir -est
practices among t!e ind"stry managing t!eir employees. )nterloop !ave speci#ied
-"dgeted strengt! o# employees #or eac! department and also cost constraint to meet
t!e costs o# -ene#its and compensations #or employees. ' complete process o#
per#ormance appraisal 3see appendi.5 is carried o"t every year -y $% department
w!ere opinion #rom employee=s manager& !is presence at wor, and learning capa-ility
and a n"m-er o# ot!er t!ings are eval"ated and yearly increments and -ene#its are
given to employees.
!e departmental managers adopt t!eir own way o# doing t!ing and sometimes de#ine
new processes& -"ild teams or set independent individ"als or !old a s"pervisor to t!e
w!ole wor,#orce in !is department& and it all depend on manager=s way o# controlling
people in !is department and getting wor, done #rom employees.
3.2. Peo"le or (m"lo)ees
)nterloop is #oc"sing on its (human capital as a part o# t!eir strategy towards
ac!ievement o# company=s goals. $"man %eso"rce department is mainly responsi-le
#or managing !"man capital i.e. 3managing pool o# people& 0"ali#ied personal& wit!
relevant s,ills& e.pertise& 0"ali#ications& and e.periences.5 and respond to t!e relevant
department at t!e time o# s!ortage o# wor,ers. !e s,ill development is also a
strategic process o# )nterloop to train t!e employees t!ro"g! wor,s!ops& seminars&
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practical training session& or e.ternal training visits to di##erent ind"stries and
sometimes o"t o# co"ntry. 'n orientation program is carried o"t #or ,nowledge
development a-o"t t!e company=s processes& strategies& and goals& #or a newly
recr"ited employee 3See appendi.5 & w!ere introd"ction to departments&
organi/ational set"p& !ierarc!al distri-"tion o# people& c"lt"re& norms& social and
et!ical val"es are decoded to employee. Moreover )nterloop maintains some limit on
strengt! o# employees #or eac! department. Eor e.ample in Einance department 3Cne
Manager& two 'sst Manager& #o"r assistant o##icer acco"nts and eig!t data entry
operators5. 2evert!eless )nterloop always maintain a potential pool o# people #or
recr"itment at any time& -"t still )nterloop meas"re t!e #actors t!at involve in
employee dissatis#action and t"rnover -eca"se recr"iting new employee costs more as
compared to retain e.isting employee. $ence t!ey cond"ct e.it interviews #or as,ing
t!e reason o# leaving and also as, some s"ggestions #or improvements in
organi/ation.
3.3. $nno!ation
Innovation in )nterloop can -e #o"nd in t!e #orm o# development o# new tas,s or new
designs o# soc,s& -"t t!e new development o# designs depends "pon c"stomer demand
and )nterloop !as a separate department i.e. %GF department t!at deals wit! new
0"ality& designs and #as!ion development t!at maintain t!e c"stomer re0"irements. '
new design is made and sent to t!e c"stomer #or approval or amendment and !ence
t!e prod"ct innovation process ta,es place. Moreover& Innovation regarding
processes is t!e collective e##ort o# t!e managers& wor,ers& t!e prod"ctivity and o"t
comes meas"red. )nnovation or c!ange in processes arises d"e to t!ree main reasons.
315 C"rrently r"nning process gone old and re0"ire "pdating 325 c"rrently r"nning
process is costly and time ta,ing. 335 or processes does not respond to speci#ic
re0"irements. !o"g! managers always ,eep an eye on t!e systems and e##iciencies&
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-"t t!e improvement and re#inement o# processes and operations is a contin"o"s
process and employees #eed -ac, in t!e r"nning system is vital #or innovations in
processes. 't times implementation o# any new proced"re is re0"iredH managers call a
meeting o# all sta## mem-ers o# relevant department to provide t!em s!ort orientation
regarding t!e proced"re and t!en send email to all o# t!em& w!ic! contain all data&
in#ormation and proced"re #or wor,ing as per. I"idelines& policies& #or previo"s or
already r"nning systems. ' proper #ollow>"p #or implementation o# new proced"re is
made& to ma,e t!e system e##ective.
3.4. %oti!ation and (m"o*erment
)nterloop is also strongly conscio"s o# t!e monetary and non>monetary -ene#its #or
employees in order to drive t!e !ig!est levels o# e##orts #rom t!em. )n t!is regard t!e
)nterloop is providing a lot o# #acilities to t!eir employees to motivate t!em. Company
!ave good leave policy #or employee rela.ation 3i.e. *eave Eare 'ssistance& 9ee,ly
%est& S!ort *eave& EestivalJIa/etted $oliday& Marriage 'nniversary *eave& Maternity
*eave& 'nn"al *eave& Personal *eave+ see appendi,-+ and some performance
re.ards+ benefits and leisure acti/ities+ 0i.e. Cne Fay in Par,& Eamily Kisit& Sport
Fay& 'nn"al Finner& Pilgrimage Bene#it& *ong erm 'ward& Employee Cld 'ge
Bene#its& Social Sec"rity& C!ildren Care %oom& see appendi.5 and all t!ese -ene#its
are #or employee motivation. )n addition to t!is managers ,eep motivating employees
w!en t!ey good and appreciate t!eir wor,.
!e delegation o# powers at )nterloop moves in vertical direction in t!e !ierarc!y.
Fepartments wor, in teams w!ere s"pervisors and managers o# t!at department !ave
t!e a"t!ority to control people and t!ey are independent to ta,e many occasional
decisions. $owever& t!ere are some critical decisions w!ic! are merely s"-8ected to
CECs discretionary power. Employees w!o are wor,ing and giving good
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per#ormance lead t!em to promotions and increase t!eir powers to ma,e decisions and
!ence also a so"rce o# motivation #or employee to #oresee a -etter #"t"re and career.
3.+. ,raining & -earnings
'lso company=s #oc"s on !"man capital ma,es t!eir employee motivated& and
employees comes wit! new ideas #or improvement and innovation& wit! eagerness to
learn more& loyal to -e more prod"ctive& concerned wit! company citi/ens!ip. '
career tract #or employees !e $% department is arranging di##erent types o# training
#or new and already e.isting employees. 315 $% Fepartment arrange one mont!
training program #or t!e new employees. !e main p"rpose o# t!is training is to
"nderstand t!e prod"ction activities involved in all departments= o# operations. 325
9!en )nterloop !ires some e.perienced personals t!en t!ey arranged one mont!
orientation program #or t!ose employees. 335 $% department also provide t!e #acility
to t!eir employees to en!ance t!eir comm"nication s,ills. Some wor,s!ops& seminars
and training programs are arranged to ed"cate employee to en!ance t!eir
comm"nication s,ills. $% department also arrange di##erent types o# e.ternal training
program #or t!eir employees on di##erent topics. Most o#ten send t!eir engineers to
learn operations carried o"t -y newly installed mac!inery and its e##ective prod"ction.
)nterloop state& (Feed back session wit! all t!e E.ec"tives !as -ecome an important
part o# o"r two>way #eed-ac, process. )n t!is process all Firectors disc"ss wit! t!eir
teams vario"s topics s"c! as company strategies and disc"ss etc. )n t!ese sessions any
team mem-er can s!are any type o# in#ormationH it is a sort o# general disc"ssion wit!
o"t any agenda t!en acc"m"lates all min"tes o# t!ese sessions so t!at t!e most
common points or good ideas regarding wor,ing conditions or any area w!ere
improvement can ma,e t!e di##erence co"ld -e implemented in tr"e letter and spirit.
9e m"st appreciate o"r e.ec"tives w!o contri-"te some very interesting ideas and
made t!ese disc"ssions m"c! #r"it#"l.+
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$. %nalysis
)nterloop at its $% practices& is striving to do m"c! wit! t!e $% and management
control over t!e $% #"nction. !eir management policies to #acilitate employees are
compara-le in t!eir ind"stry as mentioned in t!e empirical data. Even t!en -eing at its
e##ective #"nction can -ecome t!e -est in t!e ind"stry in t!e local mar,et -y
en!ancing t!eir ongoing and contin"o"s improvement process& and strong
management control on t!eir system and all t!is is possi-le wit! some new ideas and
t!at may lead )nterloop to -e t!e -est in t!eir management practice and !ence t!e -est
prod"ction "nit team.
4.1. Peo"le# $nno!ation and -earning
Eive categories o# people identi#ied -y '#"a! 314485 -o"ndary spanners& c!ampions&
sponsors& and pro8ect managers are signi#icant in practice #or innovation and
improvement. )n contrast wit! t!is identi#ied categories )nterloop not speci#ically
identi#y people into s"c! categories -"t still t!ey !ave potential pool o# people wit!
traits o# -eing c!ampions& pro8ect managers& -"t not t!e -o"ndary spanners or
sponsors. )nterloop control t!e people "nder t!e s"pervision o# managers and -eca"se
managers are decision ma,ers so only t!ey implement t!e new processes and ideas.
)nterloop also recogni/es t!e importance o# people #or organi/ational improvement
and also ta,es a n"m-er o# meas"res to satis#y t!em to get t!e desired prod"ctivity&
responsiveness& and 0"ality.
(rom the definitions given in theoretical part innovation and change can simpl! e
stated as initiate new ideas towards improvement). 'owever comparison with the
outside change and inside change descried ! *lar+ ($%%5)" outside change can e
referenced to as" customer as+s for new designs" ,ualities colors and development of
soc+s" and compan! ta+e initiatives ma+ing new product where -esearch and
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.evelopment department designs new products. #lthough inside change is the other
innovation area that is within the organization where processes are changed and new
processes and practices are carried out.
)ndivid"al learning in interloop ta,es place #rom internal and internal training sessions
w!ere t!e old employees "nderstand and learn new practices and new employees
learn already e.isting process& val"es and norms o# t!e company. ' #eed -ac, session
in every department -rings #orward sometimes pro-lems and sometimes new ideas
t!at !elp t!e organi/ation to improve t!eir processes. )mplementation o# new
processes is carried o"t in a systematic way w!ere managers arrange wor,s!ops #or
ma,ing employees to "nderstand new way o# doing t!ings. ' single loop learning
p!enomenon comes #orward speci#ically #rom s"c! #eed -ac, session w!ere t!e
pro-lems are detected and correction is made. $owever do"-le loop learning is not
t!at m"c! #re0"ent at interloop& t!e need to c!ange t!e governing val"es only arise
-eca"se o# -e!avior o# people in t!e organi/ation and also considered as comple.
p!enomenon as in all ot!er organi/ations.
4.2. Balance .core /ard
Balance scorecard is a good management acco"nting tool -"t )nterloop is not
practicing it in any way& even t!o"g! some parts o# processes and management
control can -e re#erred to as -alance score card idea in )nterloop. !e -"dgeted
strengt! in departments and speci#ied monetary and non>monetary -ene#its are
e.amples o# -alance score card practice. $owever setting targets #or individ"als and
teams depend "pon t!e way o# management idea& o# di##erent managers in di##erent
departments. 'ligning t!e -"siness strategy towards innovation& setting targets& ta,ing
some meas"res& speci#ically wit! t!e !elp o# "sing -alance score card is merely not
availa-le at t!e )nterloop.
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4.3. /ontrol .)stems
'll t!e t!ree control systems given -y C"c!i 3148:5 can -e #o"nd at interloop as
mentioned in empirical data. Mar,et control system& is in practice in a department
w!ere manager set individ"al responsi-ility o# employees meet t!em and monitor
t!em. B"rea"cratic control is also in practice in almost t!o"g!t t!e organi/ation w!ere
managers control people -y governing r"les and reg"lations. Managers also "se Clan
control system #or controlling people wit! organi/ational val"es& norms& and -elie#s.
4.4. %oti!ation and em"o*erment
# dozens of measures are eing ta+en ! Interloop to satisf! emplo!ees and +eep
them motivated towards wor+ing productivel! for the organization. # comparale
leave polic! for either genders along with remar+ale monetar! enefits i.e. long term
awards" and social securit! enefits" old age enefits are signification for emplo!ee
motivation. #ll this shows a good recognition of the need of motivation and this
strateg! is also significant in the adoption of change and innovation process" as
usuall! people in an organization resist changing. Interloop is doing well in this
regard. 'owever" three elements for determination motivation i.e. intensit!" direction
and persistence given ! -oins (2005) also does not seem to e more visile as it
varies in etween departments. #lso" the tactic of appraising emplo!ees on doing
well is worthwhile. /owers in the empirical data meant" power of ta+ing decisions"
delegation of powers is found vertical in the hierarch! at interloop" or we can sa!
powers narrow down in the hierarch!. 0he emplo!ees who do good" find the power of
doing things and ta+ing decisions" and that also motivate emplo!ees.
Page | 1? |
&. Conclusion and Su''estions
+.1. /onclusion
)nterloop is #oc"ses on a well str"ct"red $% system and adopting a n"m-er o#
management tools and tec!ni0"es t!at is !elping t!em in contin"o"s process o#
improvement. 'lt!o"g! an aligned -"siness strategy towards innovation and
meas"res ta,en #or adopting c!ange is not #o"nd& e##ectively #"nctioning in )nterloop
and neit!er )nterloop is #oc"sing on innovation in an e##ective way t!at may lead it
towards e.cellence. Management acco"nting in internal processes controlling people&
ta,ing motivation meas"res& and empowerment criterion vary wit!in t!e departments
o# interloop and all t!is is not aligned to innovation t!at wo"ld lead interloop to
ac!ieve organi/ational goals regarding improvement and per#ormance e.cellence.
+.1. .uggestions
Setting targets #or improvements can -e a good idea #or innovation and c!ange agent
and -alance scorecard is a good tool #or setting targets& ta,ing meas"res& and
monitoring per#ormance o# people& w!ere overall ac!ievement o# t!e strategy can -e
translated.
's no #ormal meas"re -een #o"nd at interloop t!at may lead t!em towards
improvement so we s"ggest interloop to adopt (Benc!mar,ing+ tec!ni0"e to ta,e
some initiative to #ind o"t some possi-ilities& circ"mstances& s"ggestions and ideas
t!at may -ecome a so"rce o# innovation and company=s improvement and can go #or
-enc!mar,ing in a n"m-er o# ways& e.g. Benc!mar,ing t!eir wor, #orce to t!e
ac!ievement o# t!e set goals& Benc!mar,ing t!e met!odologies o# training employees
in some ot!er company Benc!mar,ing t!e prod"ctivity o# employees t!at res"lts #rom
training activities. Benc!mar,ing s"c! areas wit! internal operations and e.ternal
operations as t!e case may -e& and e.ploring t!em to #ind new ideas #or innovation.
Page | 17 |
(. )e*erences
'llan '#"a! 314485& (%nno!ation management( 2trategies$ im#lementation and
#ro5its+& p"-lis!ed -y o.#ord "niversity press.
'rgyris& C.& 314445 On Organi8ational 1earning& 2
nd
edition& Blac,well B"siness&
'v6on Clar, 3144A5& ('anaging %nno!ation and 3hange( Peo#le$ 0echnolog- and
2trateg-+& p"-lis!ed -y av Sage.
Bidragare 1en I. Smit!& Mic!ael '. $itt 32::A5& (9reat 'inds in 'anagement( 0he
Process o5 0heor- De!elo#ment+& p"-lis!ed -y C.#ord Lniversity Press.
C!ris 'rgyris 314445& (On Organi8ational 1earning:$ Second Edition& P"-lis!ed -y
Blac,well P"-lis!er *td
Fe *eede& 6. G 1ees *ooise& 6.& 32::A5& (%nno!ation and *R'( 0o/ards an
integrated 5rame/ork+& Creativity and )nnovation Management& vol 17& no 2& pp. 1:8>
117
Ilenn 'llen>Meyer 32::15 (;hat<s in a name= A##roaching organi8ational change+&
Strategy G *eaders!ip& Kol. 24 )ss"e ?& pp. 7>7& p"-lis!ed -y MCB Lp ltd.
)an Smit! 32::A5 (Benchmarking human resource de!elo#ment( an emerging area o5
6o!annessen& 6>'.& et al.& 314445 Managing and organi/ing innovation in t!e
,nowledge economy& ,uro#ean >ournal o5 %nno!ation 'anagement& vol 2& no 3& pp.
11?>128
6o!nsson& $. .& 314425 Rele!ance Regained( 5rom to#?do/n control to bottom?u#.
Longottom" .. (2000)" Benchmarking in the UK: an empirical study of
practitioners academics)" 1enchmar+ing2 #n International 3ournal" 4ol. 5 6o. 2"
pp. %78$$5.
C"c!i& 9. I. 3148:5. ('arkets$ bureaucracies$ and clans+. 'dministrative Science
M"arterly& 2A& pp. 124>171.Practice: Kol. 27 ppB 7:1>71:
%o--ins& S. P. 32::A5& (Organi8ational Beha!iour+ 11
t!
Edition.
%o-ert S. 1aplan and Favid P. 2orton 314425& (0he balance scorecard measures that
dri!e #er5ormance+& $arvard -"siness review& 6an>Ee-
%o-ert S. 1aplan and Favid P. 2orton 32::75& (2trategic Readiness o5 intangible
assets+& $arvard -"siness review& Ee->2::7
&chumpeter" 3.#. ($%9:) The Theory of economic Development An inquiry
into Profits !apital !redit "nterest and the Business !ycle" O;ford
<niversit! /ress" London.
Page | 18 |
+. %!!endices
0.1. /om"an) $ntroduction
!e rise o# t!is Company epitomi/es
a tr"e s"ccess storyB )nterloop started
o"t in 1442 wit! 8"st 1: ,nitting
mac!ines& now !as 2::: mac!ines
and a wor,#orce o# more t!an 72::&
and !as trans#ormed itsel# into
SCL$ 'S)'<S largest soc,
man"#act"rer and e.porter o##ering
t!e !ig!est 0"ality soc,s at a level o# service "n,nown in o"r ind"stry. )t is located in
Pa,istan<s )nd"strial !"- Eaisala-adH also ,nown as t!e NManc!ester o# Pa,istanN.
)nterloop is an integral part o# t!is -"siness comm"nity& contin"o"sly striving to
revol"tioni/e -"siness practices in t!is region.
)nterloop is a complete vertical "nit o##ering a wide range o# price points and needle
co"nts and is on t!e c"tting edge in terms o# t!e latest tec!nology #or eac! prod"ction
process. 9e -elieve o"r s"ccess is d"e to a !ig!ly #oc"sed concentration on 0"ality
and speedy t"rnaro"ndH a com-ination w!ic! increases o"r c"stomers< edge in a
!ig!ly competitive mar,etplace. )n p"rs"ance o# o"r goal to ac!ieve and maintain
good 0"ality& )nterloop !as now set "p a !ig!>tec! spinning "nit t!at will ens"re #inest
0"ality yarn made #rom t!e -est availa-le nat"ral cotton. !is pro8ect will en!ance t!e
val"e o# money #or o"r c"stomers -y o##ering even more competitive rates to o"r
clients.
$ard wor, and "tmost commitment #rom its employees and management& strict
0"ality control meas"res& timely s!ipments and relia-le service standards !ave -een
paramo"nt towards )nterloop<s p!enomenal growt!. )t is one o# t!e very #ew #irms in
Pa,istan wit! an impressive social responsi-ility port#olio& reali/ing t!at a
commitment to s"staina-ility in all areas o# commercial activity endorse t!e long term
interests o# a -"siness. 3///.interloo#?#k.com5
Page | 14 |
0.2. -ea!e Polic)
1ea/es 2 3olida$s
'll E.ec"tives are allowed to avail t!e #ollowing types o# leaves in a calendar year as
per proced"re laid down in s"-se0"ent cla"ses o# t!is policy
1. 4ersonal 1ea/e 0Casual 1ea/e 2 &ick 1ea/e-: 'll e.ec"tives s!all -e entitled to
18 wor,ing days leave #rom t!eir 8oining date. Personal *eaves s!all not -e granted
#or more t!an #o"r days at a time. )n case o# sic,ness& Personal *eaves can -e availed
#or more t!an 7 days at a time on t!e provision o# a medical certi#icate. 'ny leave
availed over G a-ove t!e prescri-ed limit will -e co"nted as leave wit!o"t pay.
2. #nnual 1ea/e: 'll e.ec"tives s!all -e entitled to 17 days 'nn"al *eave a#ter
completion o# one year contin"o"s service. 'nn"al leave s!all not -e granted #or less
t!an 2 days at a time. )# an e.ec"tive does not avail w!ole or part o# t!e 'nn"al *eave
allowed in a calendar year& t!e -alance 'nn"al *eaves s!all -e added to t!e ne.t year
-alance provided t!at 'nn"al *eave -alance does not e.ceed 28 days at any time. 't
t!e time o# separation& 'nn"al *eave -alance will -e en>cas!ed -"t no encas!ment
will -e made on acco"nt o# "n"sed personal leaves.
3. 5aternit$ 1ea/e: 'll #emale e.ec"tives will -e entitled 12 wee,s calendar leave
at #"ll pay. S"c! e.ec"tives will in#orm t!e management one mont! prior to
proceeding #or leave and will also s"-mit a Medical Certi#icate iss"ed -y a registered
medical practitioner. !e leave will -e "tili/ed -y ta,ing at least 7 wee,s -e#ore t!e
e.pected date o# con#inement G at least 7 wee,s a#ter t!e con#inement.
". 5arria'e #nni/ersar$ 1ea/e: 'll married e.ec"tives will avail one wor,ing day
leave on t!eir anniversary date. )# Marriage anniversary leave #alls on
#estivalJga/etted !oliday or rest day t!en t!e e.ec"tive will -e allowed to avail t!is
leave on t!e ne.t wor,ing day. !is leave can only -e availed on t!e anniversary date
and can not -e carried #orward.
%. Festi/al67a8etted 3olida$: 'll employees are allowed EestivalJIa/etted $olidays
wit! pay. )# an employee is re0"ired to wor, on any EestivalJIa/etted $oliday& t!en
t!e #ollowing r"les will applyB E.ec"tive #rom grade )K to K) will -e paid overtime as
per company policy. E.ec"tive #rom grade K)) to O will -e allowed an additional
Personal *eave on acco"nt o# at least 7 !o"rs wor,ing in a day.
4ersonal 1ea/e Incenti/e
M>Irade E.ec"tives 2o )ncentive
K)) to O Irade
E.ec"tives
A:P gross pay o# t!e "n"sed
personal leaves
)K to K) Irade
E.ec"tives
1. 1::P gross pay o# "n"sed
personal leaves i# -alance is e0"al
to 8:P or more.
2. 8:P gross pay o# "n"sed
personal leaves i# -alance is e0"al
to A:P -"t less t!an 8:P.
3. ?:P gross pay o# "n"sed
personal leaves i# -alance is less
t!an A:P.
Page | 2: |
&hort 1ea/e: 'll e.ec"tives o# grade )K to K)) s!all -e re0"ired to s"-mit written
application #or s!ort leave. Eo"r s!ort leaves o# 3: min"tes to 2 !o"r d"ration will -e
co"nted as one personal leave and leave in e.cess o# 7 !o"rs s!all also -e treated as
one personal leave. Eo"r !o"rs grace period will -e allowed per mont! G over and
a-ove t!is grace period t!e time will -e ad8"sted against t!eir personal leaves.
E.ec"tives o# grade K)) will avail t!e #acility o# #le.i-le timings.
Weekl$ (est69ff a$ 'll e.ec"tives will -e provided one day o## every wee, as
wee,ly rest. )# an e.ec"tive is re0"ired to wor, on !isJ!er wee,ly rest t!en !e will -e
paid overtime or additional Personal *eave as per company policy.
1ea/e Fare #ssistance 01F#- 'll e.ec"tives o# grade K G a-ove are entitled to avail
t!eir *E' a#ter completing 12 mont!s o# service wit! t!e company. 'll e.ec"tives o#
grade )K w!o !ave completed 3 year o# service in t!is cadre are entitled to avail *E'.
*E' can -e availed once in every calendar year. $owever& #or t!e period #alling
-etween 1.:7.:? to 31.12.:7 only C2E *E' can -e availed Q 1A:P o# normal
entitlement. Minim"m ? days ann"al leave need to -e availed to claim *E' G leave
application s!all -e p"t "p two wee,s prior to proceeding on leave. 'll entitled
e.ec"tives will -e entitled #or ?:P o# t!e gross salary. Eor grade )K to K) *E' will
-e paid wit!o"t t!e need to prod"ce any doc"ments. Eor grade K)) G a-ove A:P
amo"nt o# *E' will -e paid on prod"ction o# travelingJ-oarding and lodging receipts
3Car mileage G ot!er incidental e.penses will not -e treated5 and t!e -alance will -e
paid wit!o"t any doc"ments. *E' will not -e paid wit!o"t accompanying ann"al
leave. Company may sanction A:P o# *E' entitlement as advance on sanction o#
ann"al leaves.
&anctionin' #uthorit$:
Nature of Leave Grade Sanctioning
Authority
PL/Annual Leave /
Maternity Leave
Grade IV to VIII Sectional Head/HOD
(As the case ay !e"
PL/Annual Leave/
Maternity Leave
Grade I# and
a!ove
$oncerned Director
0.3. Recruitment Process
)nterloop is wor,ing on a well str"ct"red recr"itment process and managing a pool o#
potential wor, #orce to move wit! t!eir recr"itment process.
3irin' of E,ecuti/es
!e process o# recr"itment starts wit! an advertisement in t!e newspapers& and on
t!eir we-site and receives application #rom e>#orms on t!eir we-site& and via direct
post mail. ' s!ort listing o# people o# relevant #ield ta,es place at t!e $% department
w!en a demand o# employee arises in some department. !en t!ey send call letters to
s!ortlisted candidates #or a written aptit"de test. '#ter t!e eval"ation o# t!e written
test t!ey call t!e s"ccess#"l candidates #or gro"p disc"ssion #ollowed -y a panel
interview -y t!e Manager $%& Ieneral Manager& and Concerned Fepartment
Manager is cond"cted. !en a #inal assessment on t!e -asis o# mar,s o-tained is
carried o"t -y $% department and t!en t!e selection o# employees is made and
employee s"c! recr"ited is granted (E.ec"tive grade )K+ position.
Page | 21 |
3irin' of Workers and &uper/isors
!e process #or !iring a s"pervisor or wor,er moves wit! t!e same steps -"t instead
o# gro"p disc"ssion and panel interview. !e concerned manager cond"ct t!e
interview o# employee a#ter test and similarly t!e selection o# employee is made.
0.4. 'R -ong term Re*ards# Bene1its# -eisure Acti!ities&
Children Care (oom: $% department o# )nterloop !as also developed a c!ildren
care room in t!eir "nits #or t!eir #emale sta##. Eemales e.ec"tives can -ring t!eir
,ids wit! t!em in o##ice. !ey will drop t!eir ,ids in t!at room& w!ere special
sta## will ta,e care o# ,ids. Eemale e.ec"tives can go to meet t!eir ,ids d"ring
l"nc! time and in case o# emergency
Emplo$ee 9ld #'e :enefits: ' govt. organi/ation t!at collected some
contri-"tion #rom employee as well as #rom company w!ere employee wor,s t!e
percentage is 2:P #rom employee and 8:P #rom company. 'n employee re0"ires
contri-"ting latest #or ? years. Employee t!en can entertain pension #"nd #rom t!is
instit"tion at t!e age o# ?:.
&ocial &ecurit$: Social Sec"rity )nstit"tion is an organi/ation operating $ospitals
#or di##erent type o# mem-er companies in t!e city. )nterloop is also a mem-er o#
Social Sec"rity )nstit"te and !ence employees get medical -ene#it in t!is way.
1on' Term #.ard
)nterloop is more conscio"s a-o"t t!e royalty o# t!e employees. !ey are giving
rewards to t!eir employees on t!e -asis o# time spend in t!e company and giving a
long part o# li#e to t!e company.
4il'rima'e :enefit
)nterloop is also providing t!eir employees wit! Pilgrimage #acility w!ere
company arranges t!e cost #or 7 employees every year -y l"c,y draw.
#nnual inner
$% department also arrange ann"al dinner #or all wor,ers. !is #"nction provides
an opport"nity to all employees to get more close to t!eir seniors and company
directors.
&port a$
)nterloop also arranged sport day #or t!eir employees. )n w!ic! employees ma,e
t!eir teams department vise and played cric,et matc!ed wit! eac! ot!ers. !ey
also arranged trop!y and cas! price #or winging team.
Famil$ ;isit
E.ec"tives are allowed to invite t!eir #amily mem-er to visit t!e company. $%
department provide pic, and drop service to t!e #amily o# e.ec"tives and also
arranged l"nc! #or t!em
9ne a$ in 4ark
$% department also ma,e arrangement to spend w!ole day in par,. 'll e.ec"tives
are allowed to come in par, wit! t!eir #amilies and en8oyed t!e w!ole day. !is
activity ena-led t!e employees to introd"ce t!e #amilies wit! ot!ers colleag"es
#amilies and it also !elp t!em to develop relations wit! eac! ot!ers.
Emplo$ee 9ld #'e :enefits: ' govt. organi/ation t!at collected some
contri-"tion #rom employee as well as #rom company w!ere employee wor,s t!e
percentage is 2:P #rom employee and 8:P #rom company. 'n employee re0"ires
contri-"ting latest #or ? years. Employee t!en can entertain pension #"nd #rom t!is
instit"tion at t!e age o# ?:.
Page | 22 |
&ocial &ecurit$: Social Sec"rity )nstit"tion is an organi/ation operating $ospitals
#or di##erent type o# mem-er companies in t!e city. )nterloop is also a mem-er o#
Social Sec"rity )nstit"te and !ence employees get medical -ene#it in t!is way.
0.+ A""raisal 2orm $nterloo"&