Professional Documents
Culture Documents
ACRJ
Performance Challenges at
This case was prepared by
Dr Zafar Iqbal Qureshi of the Masood Textile Mills
Lahore University of Man-
agement Science as a basis
for classroom discussion rather In early November, 2001 on a cool, breezy morning in
than to illustrate effective Faisalabad (Pakistan) Shahid Nazir, CEO of Masood
or ineffective handling of
an administration or business Textile Mills (MTM), sat at his desk and reflected on the
situation. highly competitive environment that his company operated
Please address all corre- in. According to the World Trade Organization (WTO)
spondence to: Dr Zafar Agreement, 1994, on Textile and Clothing, special protection
Iqbal Qureshi, Visiting Pro-
fessor, Lahore University of for textiles would be phased out by 2005, and in these
Management Sciences, Opp
Sector U, DHA, Lahor Cantt. changed circumstances, only those producers who were cost
54792, Pakistan. E-mail: and quality conscious would survive as exporters. Aware
zafar@lums.edu.pk.
of the emerging situation, Nazir wanted to enhance the
competitiveness of his company.
To realize his aim, Nazir decided that he had to trans-
form his employees into ‘corporate athletes’ by enhancing
their physical, emotional and mental capacities. He knew that
his employees were a valuable asset and that their enhanced
abilities would contribute significantly to his organization’s
effectiveness and towards achieving his mission for MTM.
Earlier in the year, results from employee surveys and
focus groups on performance appraisal had showed that
the performance evaluation system was perceived by the
employees to be inadequate and that they had little faith in
it. In addition, employees considered it to be a bureaucratic
system with no employee participation encouraged in goal
setting or self-assessment. As appraisal did not necessarily
translate into promotion and other expected rewards, it
created a culture where communication was poor between
the upper and lower levels of management. This, in turn, was
creating problems of commitment and motivation amongst
the employees.
COMPANY BACKGROUND
1A. Malik, “Demand for Textile and Clothing Exports of Pakistan”, Pakistan Institute
of Development Economics, 2000.
64 ACRJ
MANAGEMENT STRUCTURE
(Pak Rupees)
(Pak Rupees)
CHALLENGES
CHANGES ADOPTED
ii) 5% of profits
i) Responsibility factor
THE FUTURE
450000
400000
350000
300000
250000
200000
150000
Rupees in Million
100000
50000
985 986 987 988 989 990 991 992 993 994 995 996 997 998 999
1 1 1 1 1 1 1 1 1 1 1 1 1 1 1
Years
Total Exports Textile Exports Clothing Exports
Source: International Trade Statistics (Various Issues); International Financial Statistics, yearbook (1997, 1999).
Exhibit 2. Performance of Textile and Clothing Exports of Pakistan Internationally
200000
175000
150000
125000
100000
75000
(Million US$)
50000
25000
0
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997
Years
CEO
Shahid Nazir
Director
Finance
Farooq Azam
DPM DQM
APM AQM
Supervisor Inline
Inspector
Worker
Employee Code/Name
Position Department
Employee Comments
Total
Max. Score
100
Employee Code/Name
Position Department
Summary
Total
Evaluator comments
Max. Score
100
UNIT # : 10
JOINING PRODUC- AUDIT FAULT
SR.# CODE NAME DAYS %AGE
DATE TION PCS. PCS.
Major Points:
6 5 4 3 2 1.5 1 .9 .8 .6 .4
• Fixed Opportunity Factor: Personnel contributing equally to all POs and Units will
have opportunity factor 0.1 [1/10]. This was meant to determine the rewards of the
employees in the service departments
Calculation of reward:
• Reward per Level: Share in the whole reward for a particular level
Reward = [Opportunity Factor × Responsibility Factor × No. of Persons involved in
that PO]
So,
• Per Head share: contribution of certain hierarchical level/Total # of Employees for that
level.
_______
Source: Company documents.