BAWANY SUGAR MILLS: Finance Report

 

INTRODUCTION:

 

Bawany Sugar Mills are on of the oldest Sugar Mills in its area of lower Sindh.  Incidentally, the area covering Badm, Hydrabad Mirpurkhas, etc has lots of sugar mills, and new once keep sprigging up all the time the reason for this is the fertility of the once and the vast quality, sugar cane available in the area Another reason is accessibility., the area is written eary distance of Karachi and the road etc are good enough.

 

 

Bawany sugar mills is located on the highway between hyderabad and Badin near a small town called falter. It is situated and the untre of a very festile magarcare selt. The road conditions are good enough Which obviously. Favilatate an bound as well as out bound logistics.

 

 

The mills were established in 1965-66 by the Bawany Group. At the starting point its crushing capacity was 1500 tonnes, Which was not that big componed to other mills. However this capacity was merged during the ensuing years. One of the umjne featnes added was a “Tandern Operation”, Which is basically a totally separate or panadlel proceduce is  the original mills, with its own entrance the crushing belts. Currently the erushing capacity of the mills stands at 7000-8000 toner which is one of the largest in the area.

 

The mills have a large colony of their own which is situated on the main road b/w hydrabad and Baden and has all sorts of facilities ranging facilities etc

 

ORGANISATIONAL STRUCTURE

 

                                The organisational structure of the company is the following the old rules. It is very untralized and mostly vertical. It is headed by the retter Who one in the head office in Karachi. They have very little to as the mills. The mills one headed by the general manager Administration and technical. However there is another general manager in the mills Who Through interarclunilly under the Gul Adman . Actually is responsible only to the director. This is the general manager procurement or as is generally Know, Gul care. He hed the care provement department Which is a espascally very long in Bawany sugar Mills. It employs neadly half the strength of employers of the mills. The general manager care is Mr. Malik Mir Afzal, Who has been with the mills for around thirty years and is won well part his retirement age the care department has there man division the programming division, the development division and the procurement division. The man strength is in the procurement division, Which is hundred by a care procumental officer (cpo), Who is anisted by 5 assistant care provcement offices. The development in hundred by a care development officer (cdo), while the programming division is hundred by the programming officer.

 

The general manager administration has under line of main officer. The department general manager hard the technical manager, the production manager and the chief technical engineer the technical manager heads the actual technical running of the mills. For shift Engineer are under him in the structure. The production manager head the production of sugar the head the chemists. There are 6 shift chemists under him.

 

The chief Electrical engineer handles the electrical side of the production procen and the overall mills, he has working under him several electrical engineers.

 

This is the according department Which is headed by the chief Accountant (ca). He heads the several accountant and electric working in the accounting department and handle the according side of the mills.

 

The Labour officers Also come directly under the general manager administration. There officer have the responcebelity of dealing with the labour union and then collective bargaining agents (cba) on behave of the management of the mills.

 

 

Finally there is the assistance general manager (Administration) Who head the general administration of the mills and this is also reneged as the personal department in the mills. As in depth look in to the personal department follows.

 

PERSONAL DEPARTMENT.

 

       As I have Already mentioned. Bawany sugar mills is a selth owned organisation and the ultmetic say is of the selt in every matter. The mill has been in the family and handed lown with each generation. The practices of the mills are still of the old are of seth owned organisation, and there is no personal department as such. The personal function is handled by the administration department. Whose structure Follows

As mentioned before the Administration department is hended by the Assistant General Manager Administration. Before him are the seven officer that are given in the organisation chart of there the two most concerned with personal are the true office and the administration office.

 

TIME OFFICER

 

The time office is as the name suggest, responsible for the time heaping and attendance records of all Employers. The have office is headed by the him officer and assisted by emisstant true officers. Then function is to note the attendance  of all the Employed among in and going out and also note then hungs. They have to chief if anylong is late and if he is too late he is recommended for punishment. They also keep a record of all the holiday that a worker taken so that nobady needs the given limit. overall they wandle everything related to attendance and punctuality.

 

ADMINISTRATION OFFICE

 

The administration office is headed by the administration officer. He is anissted by various personal in the field of administration the job of this department is overall administration of the mills and the employees. It is responsible for the conduct of the employed on the job. It is also responsible for the disbursements of all benefits & services provided to the employed the administration officer report directly to the assistance general manager administration and helps him in controlling all the was of the organisation. He is the person directly responsibility for the administration of the along as well as the mill premers and is the first person to whom any problem is brought. He can refer any senous matter to the AGM Administration.

 

THE PERSONAL FUNCTION.

       

                          As is slowly becoming evident, there is no reat layout of the personal department in this mills, the Personal practies that are the norm in multinational organisation are headily noticeable here and the personal function has no real striation. The jobs or activities moiled in the personal function however are carried out by different people in the organisation in its own way.

 

The person in charge of personal, therefore, in these highly centralised organisation is the general manager administration as four as is him funsdiction Eventually, the director have the final say, but they realy of the mills, the reduce matters are therefore the responsibility of the GM, Who is his turn can delete. Them to the AGM administration, They are the people in large of denging and implementing any personal polices & practices. All effect to handle employed and motivate them are therefore centered in these two officer. And keeping in mind the connotation of the industry as well as the unique environmental factors in Pakistan, there are raaly any efforts going in this direction the personal function is basically in a state of mertia and no negative through is being given to new practices or solutions for the employed.

 

Another point that should be mentioned here is that the care department is almost independent of the main administration measure are centralised, most of the responsibility for the personal in the care department lies with the care manager. He can design any measure that he need for his work face and after setting them approved from the lighter ups can implement them.

 

The responsibility for various personnel or human reason function is distributed in a way that is suited to the organisation needs, and these activities are performed by the respectively anizned people. We can say that the personal function here is one of a functional nature and focuses  on the tasks at hand and how best to handle them. The basic personal functions are disused below.

 

SELECTION

 

The selected process at Bawany sugar mills is again as mentioned before, not really in touch with the modern HR practice, an there is no personal department, However it is not really that bad. May be the reason is the antonym given to the general manager by the selts Who are quilt young and therefore pertly in expentenced As a result the hiring is not as Seth as it could be and normally is in other Seth owned mills & Businesses. The selected precan that has them evoked is quite good on a functional basic and in tact is quite good considering that it is a Seth mills after all the mills, and only a few people are sent by the Seth for living.

 

SELECTED OF OFFICERS

 

The selected of personal of officers ranble is mostly handred at the mills. However, it has to be conclude with the head office as officers selection is given some importance by the Seth’s, The people involved in this selected are the general manager and the head of the concerned department, and they have to consult with the head office before a living division is made in this regard. Most people in this category are normally bachelors degree holders in fields libe agriculture, chemisting and electrical and mechanical engineering.

 

The producer referiver a resume of the concerned person. Work experience is a very eventual with the prospective employee are carved out by the GM and the concerned department head. The thing to note have is that the Assistance General manager Administration has Notting to do weth the selected process. Another note worthy factor is that even through consultation with the head office is requored, the actual process is man by the Mills staff. This leads to selections based on met and requirements of the job, because Who can Now these require mills better than the head of the department. the consultation with the head office service as a service check in this case.

 

SELECTED OF WORKERS.

 

The selection of workers bring with it a lot of problems. May be that is why total authority has been given to the general manger for their purpose . In workers selection the labour miror course into the picture Which by the way is prettyu strong at Bawany sugar mills. The selected of workers normally has no educational requirement. Experience in required to same Exteret but mostly, references are wasidered very important.

 

The selected of workers is done by a comitte of three people, and the absolute however rests with the general manager . the commented cousish of the administration manager (note that he come in here through not greenest at the officer land). The concerned department head, and as office because of the labour union. The means that labour union can get its own people selected or at least have a say in the selected of workers plus can obviously lead to favouritism and it is the job of the administration manager to control that plusalso demonstrate the however of the labour union in Bawany sugar mills .As we know the Turing of workers is on contract, and so terminating people once lived is really difficult. Plus males the selected proccers even more evital, and the selection process sometimes become a battle ground between the labour union and the management because of them reason. The general manager has to handle these with a lot of tact and through.

 

PROMOTIONS.     

 

Promotion are also a very important human reason function which is very important as a motivator of people and therefore can become veal esitical at times. Plus responsibility for this function too is with the general manager administration. The record of the concerned person is seen and evaluated by he deserves to be promoted.

 

WORKERS

 

In workers case, again the committee consists of the administration manager, the department head, and the union officer. The employed is avaluated for promotion. In this care However, the union again is very important. The union people try to care there promotion as a political hool and try to get their own people promoted. Plus can again become a bone of contention because a deserving person who is not promoted can become negative and cause much damage in morale.

 

OFFICER.

               

In the promotion for officer the general manager, and the head. Of the concerned department evaluate the person to be promoted based on past performance. Every final division in the head officers promotions. However a lot of importance is given to remority, and almost always the most senior person is promoted in case of a vacancy, unless he has done some thing really wrong. The promotion from within policy is very strong here.

 

TRAINING

 

The training & development of employees is a very eritical factor in most organisation. In Bawany sugar mills, Although no formal machine for training is prachised, the employees however have to be travel. Resoganinging this , the management does provide a sort of on the job trammy to the newly hired people. The was people one in the charge of their department head, who taken care of their traning needs. He assigns the new employees to experience worker and the new workers lesson from the experienced people by absolving them along the job. The experienced teacher in struts and watches over the new one until he has picked up the work. The department head monitor them activity.

 

APPRENTICESHIP    

 

Among development programmes, the company does have an apprenticeship programme however according to most of our souses this is a legal represent and not voluntary. The company has to take apprentices according to the law. There fare, these apprentices one taken and trimmed. However little interest is taken in their development and they don’t get lived as regular employed that frequently. This programme is family to full fill the legal requirement and not because of any far sighted talent hunt.

 

 

PERFORMANCE APPRAISALS

 

Conventional human resource wisdom suggests that the performance regularly to evaluate them and their result. The has future as well as present benefits, and these should be designed forms and such thing for this purpose, However come of these things is present in Bawany sugar Mills. Please is no tornnal performance appraisal system.

 

Perhaps this has to do with nature of the industry and the employees working in it. Plus is  little education and knowledge molved in this field for the workers and appraising their performance would be difficult, plus, establishing such a system would be pretty difficult too, with out a really.

 

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CANE DEPARTMENT  

                        The procurement department or care department as it is commecony called is of critical importance in any sugar mills. In Bawany, its control role can be judjed by the fact that it has a seperate general manager Who is responsible only to the director. The care department in Bawany has 162 permement employes, The largest by of all departments. To under stand the piotal importance of care department we can say that if there is no procumement of care, there is no ushing, and no crusing, no sugar and consequently, no mills,

 

In previous times care used to be distributed by quotar, but after the ligting of these question, care departments importance micreased lenfold. It was now essential to Bawany department course again. In districts badin, Hyderabad, and even mirpur khas. The care people keep traveling in these once, locating sources of came and meting the mitial contacs throughout the year. The care department has two main function which are enplaned below:-

 

CARE DEPARTMENT:-

This is to do with the development of care and consequently care supply. The care department people contact the care growers and help them develop then crop. The is with the purpose of developing a base for procurement of care. The growers are afferred advice help in the hope of fertilisers etc. and even loans so that they can grow then crops well. pobviously leads to a relationship b/w the mill and the growers and when the crop comes, the growers profer the mills ever others.

The care development department people are on the run throughout the years. then mission is to develop good PR for the mills around the area and identify possible target for procurement of care during the season.Plus department is essentially a friend of the growers and proves this to them by helping them is any way that they can.

 

 

 

However, the performance of the workers is everseen and evaluated by their supervisors injournally and if reprted to the administration office.  This can result in the withholding of the annual investments given to the workers.  The wirements  are in eases in salaries that are stiipulated by contract to take place every year.  These increments can be withheld for any number of years, though normally it is one to two years.  We can see that even in case of poor performance, there in no deduction in the wages and even bonuses (only in access in wages are concelled).  This is another indicator of the power of the nations.

 

SALARIES:

 

The salary structure is divided by the top management in conjunction with the head office.  His case of the workers, there has to be an agreement bargarivering against (CBA) about the salary structure. They have to decide  upon pay scales and increments for the workers.  The CBA keeps on asking for in aseases about every year.  The negotiations result in ministally acceptable pay scales for the workers.

 

The salary structure is based on grades i.e. salary of particular grades are fixed in advance.  When a person entirs a particular grad, he starts receiving the salary for that grade.  The head office can revise these grades when it feels required.

 

BONUS INCREMENTS

 

The main bonuses used here in the production bonuses.  It is given to workers on a particular level of production.  It actually has nothing to do with performance and case be considered as just a way to boost the salaries of the workers.  All workers are entitled to it, and it has nothing to do with efficiency etc.  It is just given out when a certain level of production is reached.

 

The bonuses is effored to one month’s ban’s salary.  The first bonus is payable at the production of 75000 bags.  As each bag is of 100 Kgs,  then makes 7.5 million bags.  The hent seven bonuses are payable at each additional 50000 bags of production.  These onwards, each additional 70000 bags willyield a bonuses:

 

 

 

 

PRODUCTION BONUS

 

 

 

1. AMOUNT PAYABLE AT          ADDITIONAL

ONE MONTH

BONUS SALARY

 

1. -“- 75000 bags                75000
2. -“-             125000 bags              50000
3. –“- 175000 bags              -“-
4. –“- 225000 bags              -“-
5. –“- 275000 bags              -“-
6. –“- 325000 bags              -“-
7. –“- 375000 bags              -“-
8. –“- 425000 bags              -“-
9. –“- 275000 bags              70000
10. –“- 565000 bags              -“-
11. –“- 635ooo bags              -“-
12. –“- 775000 bags              -“-

 

Some allowances are also be added or adjusted to in these bonuses, depending on the circumstances and other factors.  These are also payable to all workers.

 

As for as incentives are concerned, these can be used by the management to boost performance or productivity.  These are performance based, however nothing is as such fixed.  They are desided upon by the top management on case they are thought to be required.  They can be based on things like efficciency, cost reduction suger content recovery etc.

 

In case of really good crop gears or really projectable years, the management may decide to five increments specially to all workers as a reward and a motivating factor.

 

BENEFITS

 

One of the most notable thing about, Bawany Sugar Mills is the benefits given by them to their employees.  The benefits that they give are really very good and all encompassing.  The management take to provide all sorts of facilities to its employees so that hey remain satisfied with their jobs.

 

 

COLONY

 

Bawany Sugar Mills has its won residential colony.  The colony is situated between Hyderabad and Badin, right besides the Mills it is an old colony and has been there since the spart of the mills history.  The colony has around 240-250 houses.  These houses are allocated on the basis of seniority to the employees.  The colony also has a Mess for visitors and there are also bachelors quarters.  The colony has all parts of facilities for recreation and sports plain includes a football ground, a basketball court and a cricket stadium.

 

The colony also has schooling facilities in the form of a high school and a secondary school right inside the colony.  Inside the colony, all activities like water, electricity etc, are free.  The accommodation provided is fully house shed before head.

 

 

HOUSING:.

 

For those people who do not live in the colony.  The company given house rent.  The house rent is paid 55% by the company for all full-time employees.  This is droppedto 50%.  Another facilities is that bachelors receive 27.5% of their salary as house rent even though they already have accommodation at the colony.  The employees have to arrange for the house themselves.  But the company pays them the given amount.

 

The concerned Hospital or clinic, this benefit is provided to seasonal workers during the season too.  Retainee workers are allowed the medical benefit for off seaon too.

 

 

 

 

EDUCATION

 

As already mentioned, there is a secondary and high school in the colony for the education of children.  They try to provide the best educationthat they can written their limitations.  If, however the employees want to educate their children in nereby Badin, the company helps out these too by providing school bus from Badin to the colony.

TRANSPORT

 

One thing that in probably missing is transport facilities for the workers that come from out of town.  As such facilities is provided by the mills.  However, transport vehicles are provided on concessional rates for any employee willing to pay.

 

 

INSURANCE/GRATUITY

 

Life insurance is provided by the Mills to all its employees who are below the age of 60 years.  There was also a gratuity programme but it was replaced by a provident fund a few years ago provident fund is provided to every employee.  For officers, the rate is 10%, while for workers is is 12.5% of the basic salary.  It is payable to the employee after he retires.

 

 

CONCESSIONAL SUGAR:

 

Another unique benefit that is provided here is that the product of the Mills i.e. sugar is available to all employees at concessional rates.  10 bags of sugar is allocated to each worker at the concessional rates per year.  This benefit is applicable to officers too, who are normally not given such benefits.

 

 

DISCIPLINE:

 

Discipline is one aspect of administration that through unpleasement is very necessary.  If there is no discipline, there is no organization.  In most selth owned organization, discipline is tough in a very haphazard way.  However, with the introduction of the various, this problem becomes ever more complicated because now even these activities that are refused can not average be taken.  The various influence can severally disruption discipline in the organization.

 

In Bawany Sugar Mills, the head of department is in charge of discipline for their department.  He observe any act of disruption by any worker and keeps a check to see if all workers are working.  If any worker does something damaging or unworthy, or if he is not working  or a regular basis, then he reports the Master to the General Manger.  The General Manger takes a look into the master and takes action.  In case of minor problems he can crine an official warning and in case of a major offence he issued a charge sheet.  The officers\ who to responced to the charge sheet.  If the response is not acceptable, then he is suspended and an inquiry is started flim inquiry can lead to trimz of the employee.

 

SEPARATIONS

 

Separation are also handled by the general manager.  He has the authority to tire any worker.  However, these cases then to to labour courts and even high courts and are fonght by the action lawyers.  So actually terminating a worker is quite difficult.

 

In case of officers, they do not have a contract and can be tired at any time.  So it actually easier to terminate officers these workers.  The authority to tire officers also lies with the general manager, however, this must be in consultation with the head office.

 

 

LABOUR UNION

 

The labour union is perhaps the most conterversial issue in all of personnel management.  These unions have constructive benefits for the society (that is why they use formed)  However, in most cases.  They are acting very districtivity from the point of view of the management and even from the society point-of-views.

 

The labour mission is very strong at Bawany Sugar Mills and strangely enough insecting is being done to can not their power.  Most of their demands are met by the management and very really does a conflect ownerwhere the head officer has to become involved.  One reasons may be that the Kathiamarisect are young and un-experienced and so very confrontational.  They let the warious have their way if it means that the Mills keep running.

 

The union at Bawany has two major parts which are the president and the general secretary.  Electrician are held every two years to select people for these two parts.  The president is a ceremonial part through and the real power lies in the hands of the General Secretary the warrant general secretary is an old comperner who has been there for many years and labours old the rates of the games.

 

To deal with, the labour’s unions, the management has labour officers.  These labour officers meet and tall with the union people.  They are responsible only to the general manager, and of a problem oursis which they can not handle.  They take it to the general manager.  The general manager has the authority to make any decisions regardingly.

 

 

 

 

SAFETY

 

Safety practices are becoming  increasing important no a days.  Throughout the world in sugar mills.  There is danger of fires no and than.  For this purpose, Bawany Sugar Mills have a special fire fighting unit.  However, this remins their only tredential to safety practices.  There are no other training programmes regarding safety.  Safety training procedure are un known here and are likely to remain so in the near future.

 

CANE DEPARTMENT

 

The Procurement department or cane department as it is commonly called is of cretical improtance in any Sugar Mills.  In bawany, it central role can be judged by the fact that it has a separate general manager who is responsible only to the directors.  The can department in Bawany has 162 permanent employees, the largest by far of all the departments.  To understand the pivotal importance of cane department we can say that if there is no procurement of cane, there is no crushing,  no sugar and consiquently no mills.

 

In previous times cane used to be distributed by quotas, but after the lifting of those restrictions, cane departments importance increase ten fold.  It was now essential to locate and procure cane.  The Bawani department covers areas in districts  Badin, Hyderabad and even Mirpur Khas.  The cane people keep trevelling in these areas, locating sources of cane and making the initial contacts throughout the year.  The cane departments has two main functions which are explain below.

 

 

CANE DEVELOPMENT

 

This is to do with the development of cane and consequently cane supply.    The cane department people contact the cane growers and help them develop their crops.  This is with the purpose of developing the base of procurement of cane.  The growers are offered advice , help in the shape of fertilizers etc.,  and even loans, so that they can grow their crops well.  This obviously leads to a relationship between mills and growers and when the crops comes, the growers prefer the mills over others.  The cane development department people are on the run throughout the year.  Their mission is to develop good public relationing for the mills around the area and identify possible target for procurement of cane during the season.  This department is essentially a friend of the growers and proves this to them by helping them in any way that they can.

 

 

CANE PROCUREMENT

 

The main fraction however, is the procurement of cane.  This consist of locating sources of cane and bringing the cane from these for corps and the mills.  They have to connivance the growers to bring their cane to their mills and not to others.

 

For this purpose, they are constantly on the run.  They search the area for any source of cane and whenever they joined it, they go in and start their net.  They have to bushed relationships of trust with the growers.  That is very important  if they want to provide  cane.  These people also have to try and get the cane at the lowest possible prices.  They are the ones who haggle over the price with the growers.  During  this covers they also have to deal with brokers of cane.  This is really important at the end of the season, when cane is scare and the prices are shorting to soai.  It is at this time that they have to make save that the mills have a constant supply of cane at reasonable prices.  The people in the cane department are normally grow an agricultural university background.  However, this is not necessary.  What is essential is that these people have skills to interest with and from relationships with the growers.  They should have knowledge of farming and growing and good communication skills.  Integrity is another cove requirement as trust is the basis for business relationships.  And above all, they should be energetic and willing to run around the whole district looking for cane.

 

 

SPECIAL BROUGHTS:

 

The cane department is a whole different world in itself and the people in it have their own needs for this purpose.  They have special benefits that they refers’ve.

 

These people have to be working year in and year out, working showings, developing relationships or just hunting around to new ground.  For this purpose they are normally given motorcycles because their job entails much a lot of travel.  Similarly the drivers on the cane department get permanent allowances because of the nature of their jobs and their unessential and irregular timings.

 

These people also get special holidays or vacations schedules while is different from those of the rest of the employees because of the special nature of their job and its purchase demands.

 

The care department is a very unique feature of the sugar industry and has its on set of requirements which are quite different from other fields.  Consequently, it has its own dos and donts of selection and training is supervised by the general manager care.  Special care is taken to train the filed

 

people carefully and educate them as well as can be about the unique fetures of this job.  This work also required special characteristics in a person, which the selection process.

 

 

RELATIONSHIP BASIS:

 

As we have been saying all along, came procurement is very naturally relationship based.  The growers need a person they can relate to and trust.  Trust is very essential because they have to take payment after making the delivery.  Also, the growers have to be around that the mills will help them in every possible way for future crops too.  They also have to be certain that they will get a good price from the mill and not be cheated at the weighing point.  All these things can be assured only by a person who is trusted.  Moreover,, one culture is such that a relationship before the business associates is a must such a culture if drawnout in south eastern Sindh.  Where the mills are related.  This increases the importance of relationships with the growers.

 

A case in point is the incident of the Bawany cane General Manager Malik Mir Afzal.  He sent his resignation this season.  Suddenly out of now here within two days, around 150000 inarounds of cane was withdrawn by the growers who had promised.  They suriply backed out because the General Manger cane had resigned and this created a no-cane situation in the mills; they had to stop temporarily.  It was only after the seth came  in and persuaded Mr. Malik to stay, that the supply resumed.  This demonstrates the importance of relationships in this areas.

 

 

PECULIAR PROBLEMS

 

There are many problems that and faced by this industry alone and as a result by Bawani Sugar Mills for.  Some of these problems are related to the location of these mills, some to the seasonal nature of the business and some due to the unique is recumstrances that the sugar industry is feasinz

 

 

Ownership: Bawany Sugar Mills is owned by the Kathiawari Seths and the ownership is quite young   now.It is 90- 95% owned by the Seths .Thwere is a secret share branch of confidential people who buy shares on the propaganda about the share price falling.

 

Selection:

Workers:

The selection committee consist of one administration man , one union man and one department head.The criteria for selection is basiclly the requirements of the specific department and the activities that are to be performed by the individual worker.The different departments can be thhhhe boiler , the power house , process house,cane department,maintenance section ,sanitary ,canteen, security,time office, office mess,packet shop,drawing section,workshop etc.-

Officers:

For the selection of officers recruiters usually look for academic qualifications  according to job specification and skill  requirementThe rewcruiters involved are head of the department with the conultation of the head office.Most of the time the selections are merit based.

Promotion:

PROMOTIONS are usually from within and on the seniority basis and according to the performanceof the individual. Promotions are most of the time on th e merit basis and sometimes on personal references and biases. Indiiduals are evaluated on the basis of job performance by he haead of the department or the recruitindg staff of the personnel department.

Apprenticeships:

Due to the legal constaints officers and  workers are taken but other wise they are not hired . It basically consist of training with the experienced people and learning how to perform on the actual job situation and the atmosphere is practical so the trainer gets a good initial experience. Sometimes coaching is given to new workers in different departments so that they can easily operate the systemsan d face no difficulty in handlig different types of machines.

Performance Appraisal:

Ther is no such system of formal performance appraisal but the efficiecy influences the annual increment ,compensation,incentives and salaries etc.Performace feedback allows the employee , the manager and personnel specialistto intervene in order to pimprove the performance of the employee.Performance evaluations helps the personnel depatment to determine who shgould receive the additonal pay raises incentives and benefitsetc.and promotionsand transfers are are usually based on the past or anticipated performance.Appraisals that that actually meaasure the job related performance ensure theat internal placement decisions are not discriminatory.

Salaries:

Salaries are given according to the grades and pyscale that have been already established

BONUS/INCENTIVES:

According to the union agreement bonuses are given as

First bonus on seventy five thousand bags of 100 kg

Second to eight  bonus on additinonal fifty thousand bags each.

More than ninth seventy thousand bags each.

Benefits:

House Rent   55%

 For seasonal workers   50%

For Bachelor’s 27.5%

Therwe are about 240-250 houses in colony with electricity and water are free with furnished accomodation ,there is also the facility of telephone on personal expenses. Thereis one nice park for recreation and entertainment, a high school with a school bus upto Badin  and a hospital  for the residents in case of emergency and accidents.

Medical allowances are total free including the seasonal retainees in the off season . Life insurance is for everyone before the age of 60. Gratuity fund was offered before but now the Provident Fund which offers

For Officers 20%

For Workers 12.5%

There is no transport for out of town Workers however the facilities of gas ,water and electricity are avalable 24 hours a day

For workers 70 kg sugar is available at a concessional rate of Rs 10/kg

For officers 100kg sugar is available at the same rate .

Transport vehicles are available at the concessional rates .

DISCIPLINE:

In case of theft , pilferage , irregulezar attendance , poor performance or undesirable behaviour Head of the department reports to the General Manager who issues warning to minor offences and chargesheet for major offences including suspension and inquiry.

The General Manager makes firing decision and officers are fired in consultation with the seth of the mill.

LABOUR UNION:

In the Bawany Sugar mills Labour Union is strong like thye other sugar mills .The elections for the General Secretary and President is held every two years. Labour officers take active part in the elections.

CANE DEPARYTMENT:

THERE  are about 162 people in the cane department which covers the district Badin Hyderabad and Mirpurkhas .They carry on year in ‘ year out ,they conduct the surveys and also have to fix the prices etc. deal with the brokers , especially at season end.

There is a permanent travel allowance for drivers etc. whether they travel or not because of the range of duties and the timings and travel requirements.

CANE PROCUREMENT:

Cane procurement is completely the relationship based . The current General Manager is Abdul Wahab Tajwani . When the last GM Maliuk Mir Afzal gave resignation the result was that around 150,000 maunds from different people backed out and literally ther ewas noi cane situation the next day and the matter was resolved through negotiations and the consultation of owners.

SAFETY AND REGULATION:

In the case of fire or any other casualty in any department like the maintenance , cane department , power,mechanical etc. there is a fire fighting unit other wise there are no formal programmes for safety etc.

 

 

THARPARKAR SUGAR MILLS

 

Appointments :

All apointments are made by rpromotion and direct recruitment by the Competent authority that is th eChief Executive or the or the General manager of the company . Selections are basically on merit basis and those people are preferred who have some experience related to th sugar industry . New recruits are placed on aprobation peeriod of 3 months.Workers are also hired on the basis of previos work experience in the sugar industruy and medical exmination is compulsory for all the newly hired persons and theyb are to appear in geregular medical screening as decided by the administration    After the selection there is no formal trainijng or orientation program because most of ther time workersare eperienced or have some background of the industry.  All promotions are made on merit and seniority basis and people aree peromoted on the evaluation of job performance by the senior nanagement .

Qualified workers are fewer as compared to the labour and most of them are engineers and technicians and they have not yet hired any MBA. This is the b second season of the mill and it is in initial stages.

Performance Appraisal :

Employees are basically evaluated on the basis of related work performance in the concerned department .Their competence and performance is judged during the period ,let’s say ayear  and at the end of the year  aconfidential report is prwesented to the Haead office for incentives and increments which are finalized by the sole authority on the recommendations of the respective Head Ofices. Annual confidential report consist of the each individuals performance during a specific time period and adverse remarks and work performance  are put upon and handed over to the managementand Head Offices for decisions regarding promotions ,annual increments , incentives and benefits.

  ANNUAL AWARDS AND SPECIAL INCREMENTS:

These are awarded on the basis of ouitstanding performance and exemplary successs and  trackrecord with some consistency .

 

RETIREMENT :

Employees are required to retire at the age of 58-60 and all the gratuity , provident fund , incentives and benefits are provided to the reitree according to the grade in which he worked . It is at the discretion of the competent authority reappoint him on the contract basis for a stipulated period of time may be 11months. Any employee can be retired earlier on the basis of ill health or other medical problems etc.

 

LEAVE:

There is a comprehensive manual regarding employee leaves and vacations. For overtime worked on Sundays , double holidays are given in case of Sundaysand gazetted holidays worked in overtime.For both the officers and workers one month leave is allowed for permanent workersand have worked for more than 3 years.

 

 

DISCIPLINE:

Since Tharparkar is a newly established sugar mill so it has not that old policies and practices and once the policiecies are prepartesd and formulated after then the problems may arise. In case of misconduct , misbehaviour,disobedience,poorperformanceorinsubordination

Employees are given warnings for minor offences and chargesheet is given by the personnel departmentand all the process is conducted by the personnel department.

PROMOTIONS:

Are based on merit and seniorityand the past work performance.Employees are promoted usually from within and mostly on xtraordinary performance and success.

 

 

Dewan Sugar Mill

 

Ownership :

It is own by the large Dewan group of companies and sugar mill is a public limited company. The group is successful in the textile sector and is working satisfactorily in the sugar industry also. Dewan group has been there before the partition of Indo-Pak. It has made a good name in the industrial sector and is numbered as one of the premier local groups in Pakistan. It has earned its reputation by providing good quality of products to the consumers and at the same time maintaining satisfied, committed and motivated work force.

 

Apprenticeship:

Whenever there is a need for internees in the different department the personnel department select internees for a period of six to twelve months and they are provided training with experienced people.  They are basically oriented on the different activities and job related duties that are to be carried in the specific department.

In case the department find the performance of the internees satisfactorily he recommends the personnel department or the administration for the hiring of specific individuals.

 

Salaries:

Salaries are given according to positions held by different employees and are fixed for different grade and posts. Salaries are adjusted or changed by the personnel department with the consultation of the General Manager or the Head of the Department. Except for basic salary, for different grades there are many allowances which consist of house rent medical, transport, and company offered living expenses etc.

Salaries given are competitive according to the relative job worth in the market and in other mills of the same category. Dewan group is known for giving good compensation to its employees and providing benefits and incentives not less than the prevailing market rate. Annual increments in salaries or decreases are most of the time at the discretion of the department heads with the consultation of the senior management.

Selection:

Recruits are selected and finalized after being interviewed by Head Office or CEO. Selection are basically made according to the specific job requirements, qualifications and job description and type of skill and abilities required for a particular job. Initial screening interview is usually is taken by the Head of the Department or Executive Senior Officer of the Personnel department, if he is selected here than recommended to the General Manager or CEO where the selection is finalized and the job location and job duties etc are given by the personnel department.

Selection procedure is rather better than other sugar mills and is more sophisticated. Right candiadates are hired for the specific jobs so there is no problem of firing and termination etc.

 

Production Bonus:

It is given according to the boris of sugar produced by each worker.

First Bonus  ——————————-   180,000 boris

Second Bonus —————————–   350,000 boris

Third Bonus ——————————   500,000  boris

 

All bonuses are provided according to the basic salary and all next bonuses are at 170,000 boris plus intervals.

 

Inducements and Rewards:

Workers are basically the shift performance rewards to shift performing better or on the basis of crushing more. This is all taken care by the personnel departmentand it also sends the report to the respective departments for each worker performance.

Benefits:

Full medical allowance is given to all workers. Transport, housing and other basic facilities are provided to workers. Medical allowances are to be verified by the personnel department. Gratuity fund is accumulated as one and a half month’s salary per year of service. Gratuity fund is provided at the end of job i.e after retirement.

 

Discipline:

In case of misconduct poor performance, insubordination, disobedience, immoral behaviour or theft etc. First the warning is given for such minor offences and for major offences charge sheet is given and inquiry is made by the personnel department and upon the confirmation of the offence employee is suspended or terminated from the job. Charge sheet is given by the personnel department and in case of firing or seperation from the company personnel department has to initiate the inquiry process and provide the results to the senior management for further action on major offences  or are decided by the personnel department itself acccording to the laws and regulations.

 

 

AL-ABBAS

 

Administration:

The basic functions and activities consist of keeping the comprehensive database about all the employees including the current and past and past employees. Administration is regarded as Personnel department and consist of files records and complete data on background of employees etc.

It controls the housing benefit and allowances, transport and utility allowances etc. and allocates the percentages for different allowances excluding the basic salary for each grade and positions . Company Offered Living Expenses (COLA) are also provided according to to the current grade and status. However the COLA expenses are almost the same for all the grades. The transport charges ands boarding and lodging expenses are different for various grades from the GM to the common worker. Each grade is offered a specific percentage,or the type of hotels stay for when going out of the town. The allowances offered are almost in accordance with the relative market rate and benefits that are being offered to the similar jobs in the sugar industry.

Administration is one of the most important departments of the mill and handles all the personnel and issues and clarifies them. It renews policies and procedures once a year and takes into account the inflation, the changing market rate for the specific positions and different personnel and Administration practices that need to be renewed and reformed. The Administration infact is not that elaborate or complicated like the MULTINATIONAL Companies MNCs but good care is taken to recruit , retain and motivate the satisfied and committed workforce for future growth and prosperity the company . Like the MNCs the local companies are also realizing the need to meet all the employee needs and requirements. Al Abbas sugar mill has good capacity of sugar producing than other average mills and therefore its workforce is slightly bigger than other mills and Administration is more complicated and have more employee strength than other mills in the area.

Acccomodation:

There is no colony for the stay of employees but there is a n officers mess of about 20 rooms and are allocated according to grades (A,B,C,D) and company hired housing in city provided to everybody including the workers and officers . If an employee wants to stay on his own arrangement then allowance is given to that employee which is based on the grades and status.

Selection:

Final selection is made by the general manager and before that employeesare recommendedby the head OFFICE or the department heads.Theyb basically at qualifications,experienceand the applicant should match the posts,job description and specification . The criteria of selection is usually on merit and recommendations. Sometimes they look for employees who have experience in the sugar industry or have worked before.

Promotions:

Promotions from within are more preferrred and on the basis of job performance and seniority.It is at he discretion of top management to promote the employees and provide them annual or special increments and rewards which are based on the previous work perfoermance.For promotions Annual Confidenrtial Report at the year end (June) is sent to the Heasd office for evaluation abnd final decision.

 

 

 

Apprenticeships:

It is gprovided for a maximumtenure of 3 years and normally for one to two years depending on the job. The personnel or the Administration department keeps on evaluating the internees and if he qualifies then promotion occurs earlier.

It depends on the job performance and the past terack record of employment.

Salaries:

The drecision regarding salaries is taken by the Finance Department with the permission of the senior managemenrt. According to grade salaries are allocated.

Increments in salaries is made by the department head with the consultation of the competent authority.Underthe salaries braket allthe allowances are coveed like the house rent, utilites , trandsportexpensesand otherallowances.These allowances are mentioned in terms of percentagesagainst each head depending upooon the grade and position.Special increments or bonuses are calculated separately and rewarded basically according to  outstanding performance and success.

Production Bonus:                                                                                        It is given to workers according to the number of boris produced

First Bonus——————— 200,000 Boris

Second Bonus——————380,000 Boris

Third Bonus——————–550,000 Boris

All next are given at 170,000+ intervals

Profit Sharing:

5% distributed as

BASIC                  PROFIT

A                            1800                       3224

B                             2200                      1612

C                             3000                       806

 

Those above three thousands get nothing.

Rewards:

Rewards are given on the basis of crushing more or any working shift performing better than others.

 

Benefits:

Life Insurance is provided to all the workers.Dispensing is available free foe r everybody . In case of major problems and emergencies employees can avail the facilties at the hospitalfor which the company helps pay for it.

Gratuity fund is provided on the basis of one month salary per yearof bservice and is given after the retirement .

Transport from city is available at the concessional rates.,during season at the shift timings and during off season in morning and evening only.

 

Discipline:

Incase of any minor or major offenses like misconduct,disobedience,insubordination,theft or pilferage Departmental warning no. 1,2,3.is given then after that chargesheetis given by the persaonnel department and employee has to answer sall the charges levied against him.If replies are not meaningful than formal warning for separation ,termination,withholding of increment and according to labour laws the action is taken . For the termination of the employee the inquiry is to be made by the personnel department and finalized by it according to labor laws and policies.

 

Safety and precautions:

For handling the case as  of fir e and casualty there is firefighting staff to control any kind of loss and disater.Training to the workers are given about the handling of different equipment and machines.There are warnings all around the mill so that workers and outsiders remain cautious and careful while entering that area. Safety helmets are also provided to visitors and the workers.There is a good arrangement of safety and security in the factory.

Contracting:

Small activities like security for the mill are given ion the contracts to private companies and unloading the labor transport system,bagging, cutting,canteen is also given on contract basis. The system of contracting is good for the company and the employees because contractors can provide professional service at the competitive rates.

TimeOffice: It works under the personnel department and controls the attendance, punctuality,reports any latecomers,absences and overtime etc.

Itkeeps the complete record of employee performanceand all records of holidays gazetted holidaysare maintained by the tyime office.

Normally upto fifteen minutes latecoming is allowed after that it is recorded in the dataand files.If some worker is late then rification is made at the departmentfor those getting late more than fifteen minutes then asked by the officer to stay punctual otherwise will be marked absent.If absences exceed the maximum limitthen salary is deducted on the management instructionsand direction.

Overtime worked by each worker is also entered in the database and weekly report of each worker is sent to their respective departments heads which verifies at the end of the month .Absentees are required to inform a day before the reason in writing for the holiday which is given to the personnel department for future references

 

Fauji

 

 

STATE OF MANPOWER

Categories of workers

 

1. Permanent
2. Retainee
3. Seasonal
4. Temporary and
5. Daily Wage Workers

 

 

 

SECURITY SECTION

 

Strength :

 

Incharge Security              1

 

Security Supervisor           6

 

Watchmen                         39

—–

46

Total                               —–

 

 

 

 

 

 

ORGANIZATION OF CBA

 

1. CHAIRMAN _ SYED WARIS HUSAIN SHAH
2. PRESIDENT GHULAM MUSTAFA SHAH
3. VICE PRESIDENT HAJI SHER AFZAL

D.GENERAL SECRETARY               AZIZULLAH AFGHANI

1. JOINT SECRETARY MOHAMMAD ALI
2. CASHIER MOHAMMAD FIRDOUS

G.OFFICE SECRETARY                    BASHIR AHMED

1. PROPAGANDA SECRETARY NOORUR REHMAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ORGANIZATION OF PERSONNEL DEPARTMENT

 

 

 

1. PERSONNEL DEPARTMENT
2. TIME OFFICE
3. SECURITY SECTION

 

 

First of all workers are members of the union .The membership fees is  monthly donation of Rs.3/= to the union .The general secretary is the real power in the union and the  president is joint symbolic. The general secretary is personally responsible to all the workers. They can stop him at anytime and tell him their problems. Currently the  GS feels that he is cooperating a lot with the management, because there  are a lot of unfilled vacancies  and he is not pressing for them joint because the  null is in a loan  and needs to cut expenses.

The union has its own cabinet for different purpose the urgent  cabinet is of 31 people each G.S. chooses  his own cabinet the said in the cabinet are however distributed equally among all nationality segments and in taken not be Indian  to any body.

 

The union people seen to consider themselves an attentive management of the Mills they are of the opinion that the management  should the observation that unions can while life very easy or very hand for the management. His year the union people seeing the condition of the mills, co-operated with the management  and went on a loan recovery divide for the Mills the General Secretary make  a big issue  out of that however, the management skill does not trust him.

 

The General Secretary is responsible  each and every workers there is a suggestion  box  in  front of the gate which he opens every morning and take care of and problems  that the comes a cron he needs the people who made the suggestion , and discounts  it with them. He angers their behalf with the management and tries to same angers from any servious action

 

The union comes out with a charter of demand in e3ach tenure. It is not met by the management  then they go to an arbitrator  and at the same time mine a strikes notice the not call thing is that striker  and barmaid by law so these notion  are first pressmen taches.

 

Phelps molt is to support  the which is each and every care what the care may be they fight for the worker with the management he did say though that if the when is doing something  unuttered   or damaging to the mult (he mentioned stealing) then he is not supported by the union is also provided that the incident has a very recure  of it who terrifies that such as event did have place

 

The written has to be a workers and the. tesh wong of officer is not accepted. The  unpremion I got was that the union would support the even is that althrough he sand over wise.

 

CANE DEPARTMENT

The lane department  is really important to the union it counts  of a lot of field workers who  go general prorating for  come all year. Phase people and provided with land  and jeeps and motor cycles. To  jobs  they are also  given other benefits life additional and feeble timing most of these personal  have agricultural degree inter  then Betts and have impeirence of agriculture. In additional they should have good inter freehand skills.

 

The care department is done all around the Mills area phase are Vivian sector with sector officer in each to locates and procure came  in then are then office are staffed with  are procumbent officer who supervise propane  throughout the year the come manger visit all these office regularly.

 

 

 

 

 

 

 

 

 

 

 

 

GFFHDFHDH