Report on JDW Sugar Mill Ghotki

Submitted to:
Dr. Naveed Wassan

Group Members
Aafaque Ali (121-18-0030)
Abdul Rehman (121-18-0002)
Muhammad Nouman (121-18-0030)
Muhammad Rajab Ali (121-18-0028)
Table of Contents
Introduction of the Organization [1]............................................................................................................2
Constraints on managers [2].......................................................................................................................2
Introduction.............................................................................................................................................2
Question and Answers.............................................................................................................................2
Summary:................................................................................................................................................5
Recommendations:..................................................................................................................................6
Organizational Design [2]........................................................................................................................6
Introduction.............................................................................................................................................6
Questions & Answers..............................................................................................................................6
SUMMARY:..............................................................................................................................................8
RECOMMENDATIONS..............................................................................................................................8
Planning – Strategic and operational [2].....................................................................................................8
Introduction.............................................................................................................................................8
Questions & Answers..............................................................................................................................8
Summary:..............................................................................................................................................10
Recommendations:................................................................................................................................10
Role of ethics in management.................................................................................................................11
Conclusion:..............................................................................................................................................11
References.................................................................................................................................................11
Introduction of the Organization[ CITATION JDW18 \l 1033 ]
JDW Sugar Mill Ghotki is one of JDW Group's industrial company of Pakistan. It is located in
district Ghotki. Its core business is to manufacture sugar. It is well-known for supporting innovative
culture of farming techniques that increase its core business. It has a pride in taking the social
responsibilities activities like development of women enterprise, social mobilization, supporting
primary and technical education, development of infrastructure etc. These activities have the motive to
ameliorate the economic and social conditions of the poor in rural areas. JDW Sugar Mill is one of the
largest sugar sector contributing about 15-17% of Pakistan’s sugar production. Its managing director is
well-known person Jahangir Tareen.
As we discussed the introduction of the company, it was on the basis of the person who was
interviewed. He was a General Manager named as Mr. Muhammad Attique, General Manager, JDW
Sugar Mill Ghotki.

Constraints on managers[ CITATION PRo19 \l 1033 ]

Introduction
Managers of any company or organization are the people who manage and oversee the work being
done to achieve the goal of organization. To manage and oversee managers do planning and then make
decisions. In the process of decisions there are components which pose constraints on managers they
are demographic, economic, political/legal, global, sociocultural and technological components. These
components are termed as external factors. Low occurrence of external factors makes environment
predictable and stable and high frequency makes organization environment dynamic and unpredictable.
The culture of any organization also sets challenges for managers in the process of decisions. Culture
can be strong or weak in nature. Employees of any organization learn organizational culture through
stories and rituals.

Question and Answers

Q1: Does JDW has omnipotent view or symbolic view of management? Does JDW consider
manager responsible for the success or failure of the company?

JDW has symbolic view of management, upper management does not consider any manager
responsible for failure or success. In case of failure or any target is not achieved, problem or cause
(external factor) is identified instead of blaming managers or deputy managers. Like in 2017 the target
of sugar production was not achieved so, instead of blaming production manager investigation of
performance of all departments was made by third party and on investigation external factor was
identified that it was because of naturally low quantity of sugar in cane.

Q2: When there is a recession in the country, what is your reaction towards job and
employment?

In case of recession we analyze the cost of raw material (cane) and the percentage of profit and then
we demand government to fix the price of cane in order to avoid the loss of both parties, JDW and cane
growers. Sometimes cane is purchased on the cost other than fixed by government for the survival and
to avoid loss. Also in recession instead of firing our employees we either reduce the level of input or
improve our by-products to cover the cost, like we are producing electricity as by-product and selling
to Government Sector. And also we are exporting fine sugar. So, these all things help us to survive in
case of recession.

Q3: What was the reason behind selecting Ghotki for your third unit?

We, JDW, are producer of sugar and goal is maximum production with available resources, for
third unit of JDW different areas were analyzed to find the area with maximum supply of input (Cane)
and best recovery of sugar and on analyzing Ghotki was found with best supply of cane and maximum
recovery of sugar from cane all over Pakistan. SO that’s why Ghotki was selected.

Q4: Do the income level and education level of farmers affect your organizational
performance/decision?

Yes, the education level of farmers regarding the production and growing of cane matters to us. But
majority of growers are not well educated regarding cane production for that we have developed Farm
sector where we have introduced best marketable things regarding cane production. There we portray
the standard of production, harvesting and transportation etc. And educate farmers to produce cane of
best quality.

Farmers whose income is not enough to produce cane we JDW, provide them loan and also
fertilizers and sprays are provided on subsidies to help them in growing cane.

Q5: Do the changes in government policies affect your decision making and performance?

We are working in Pakistan and have to follow the rules, regulations and policies set by Govt. What
JDW does? It sets its policies according to the policies of government to avoid any case of violation
against laws of State. Also the owners of sugar mills are sitting in the Parliament and they never pass
any bill that could harm their mills.

Q6: Does JDW focus on technology and innovation? What are your recent technological
changes?

Yes, JDW focuses on technology and innovation. In sugar industry of Pakistan JDW is the only
group which is working with latest technology. To overcome energy crises we have best steam system.
Over farm we have Australian officials to train about harvesting and cutting of cane. One more thing,
ten years ago we had made link with Australian’s sugar mills regarding latest technology either of
production or process. Any latest technology they adopt is followed by us.

Q7: Considering the frequency of change, is your environment stable or dynamic? In other
words, do these external factors change frequently?

Answer: JDW has a stable environment. The external factors do not change frequently. Because if any
change occur it can be predictable. e.g. generally as we set the estimate of sugar recovery from cane we
get same results but last year our sugar recovery goes down and after research and analysis we come to
know that due to action of some dangerous parasites attack on cane causes decrease in the productivity
of cane.

Q8: Who are your stakeholders? How do you maintain relations with them?

Answer: The key stakeholders of JDW are farmers, shareholders and government. We have good
relations with our stakeholders. We maintain relations with farmers by giving them loans on easy terms
and conditions. We provide them fertilizers, pesticides and agriculture equipment for better grow of
cane at fair prices. We also give importance to our shareholder equally and make efforts to maximize
the profit and reduce the cost. We also have good relations with government. We align our policies
with government policies and make transparent our financial reports through complete auditing.

Q9: Does your organization possess weak or strong culture?

Answer: Yes, JDW has a strong culture. We have good relations among the departments and people
working in them. We collectively held meetings where we share the problems of each other and define
the solutions.

Q10: How your employees learn your organization culture?

Answer: JDW always facilitate his employees. Our employees learn our culture through different
technical and non-technical training programs. Moreover, they learn our culture through the
motivational stories of senior staff who joined the JDW at low rank and now they are in good position
through their hard work and efforts made for the success of it.

Q 11: How you consider risk in your decisions? Do you take risky decisions?

Answer: I consider risk at very low extent in my decisions because we have stable environment and we
face the situations and problems mostly are certain and predictable.

Q12: What are the major issues and problems that your organization is facing currently?

Answers: The major issue we are facing now a days is the low recovery of sugar from cane. Because it
is a major component that effect our cost of production. We are working on it and introducing new
varieties of cane that are suitable for this area and have a capability of high sugar recovery.

Summary:
JDW has a symbolic view of management. In case of recession they do not fire their employees rather
they decrease their input level or improve their by-products. The main reason for setting third unit in
Ghotki was best recovery of sugar from cane. Majority of the cane growers are not well educated so,
JDW has developed farm sector under the supervision of Australian officials to educate the standard
process of harvesting etc. JDW formulates its policies according to the policies of Govt. JDW is the
only group in sugar industry who has links with foreign sugar mills and working with latest technology.

Recommendations:
As we questioned JDW’s manager, on the basis of answers, their organization’s management was
performing efficiently. We conclude that they are working very well. We recommend JDW to maintain
the performance of their management in such a way they have done so for

Organizational Design[ CITATION PRo19 \l 1033 ]

Introduction
When a firm intends to do a business, first off, it sets goals. To achieve those goals, it plans some
strategies. Doing all that requires a place where management work in. So managers create a structure
that helps them achieve those goals. That structure is named as organizational design. Any organization
design has six elements they are chain of command, work specialization span of control, centralization
and decentralization and formalization.

Questions & Answers

Q13: Which organizational structure do you have, mechanistic or organic? And what
organizational structure do you prefer and why?

Answer: We have mechanistic organizational structure. Because we have high formulization, narrow
span of control, a clear chain of command and high centralization. I prefer the mechanistic structure
because it has a formal pattern of work distribution and responsibility is divided among each other.

Q14: How do you divide work among employees? What does your organization prefer: work
specialization or generalization of work?

Answer: JDW follows work specialization. It divides work according to the major skills of the
employees. At all levels, the employees are well-skilled on the basis of work specialty. To avoid too
much specialization, JDW promotes its employees yearly or after every two years

Q15: How many functional departments are there in your organization?

Answer: As JDW is so large, it has functional departments such as mechanical department, finance
department, chemical department (production department), electrical department. And other
departments like security department and administration department.

Q16: How many organizational levels are there in your organization?

Ans: JDW has multiple organizational levels. At top level, it has a director then a CEO, then General
Managers of different departments, then at each department after general manager, it has a Head of
department and then at first line, it has a manager and a deputy manager, then supervisor who oversees
the work of the employees.

Q17: Does your organization follow centralized system or decentralized system or a balanced
system of both?

Answer: It depends upon a decision. Sometimes upper management of JDW decides on what the
organization needs to do or not. Oftentimes it has a collaborative meeting in which everyone gives their
suggestions. In simple words, JDW has maintained a balance between centralization and
decentralization.
Q18: What is your span of control at each organizational level? Is it wide or narrow?

Answer: At each organizational level JDW has a narrow span of control. Managers at each level can
handle three to four sub-managers.

Q19: To what extent do you have authority to make decisions or suggest something to upper
level?

Answer: It has a balance between centralization and decentralization. Sometimes, the decision is taken
by top management and oftentimes it involves other employees in decision making. They have monthly
meetings to make decisions collectively.

Q20: Do you have any training programs for your employees to enhance and polish their skills?

Answer: At first JDW keeps its new employees as a trainee for two years. Once he or she learns how to
work on particular things, JDW's management allows them after that. Also, it has training programs for
new employees. It trains them by working with senior employees and so that they can learn to work on
specific things. In other words, it first polishes them and then allows them to work on.

SUMMARY:
JDW has an organic organizational structure. It employs workers on the basis of work specialization. It
has many functional departments such as production or chemical department, finance department,
administration department, electrical department and cane department. It has a clear chain of command
- i.e, at top level is a CEO, then General Manager of different departments, then at each departmental
level it has a head of departments, then at each department, it has managers then deputy managers. It
has narrow span of control which means head of departments can handle two to three subordinates. It
has a balance between centralization and decentralization system and it has less formalization.

RECOMMENDATIONS
As JDW is too large an organization, it should follow generalization of work so as to cut costs. It
should have a wide span of control that will also help its top management cut costs. The top
management of JDW must develop some training programs and campaigns that help the employees
learn multiple skills so that they can perform multiple tasks that will help workers avoid boredom,
absenteeism, etc. Because doing the same tasks for long time results in such conditions. It must train its
farmers so as to get qualitative sugarcane from their farming sector.
Planning – Strategic and operational[ CITATION PRo19 \l 1033 ]
Introduction
Planning is the function of management in which goals are set strategies are established to achieve
organizational goals. Planning varies from type of organization to type of situation. When a planning is
made by managers and it applies or has effect over the whole organization is called strategic planning.
The target of strategic planning is business model which focuses on whether customer will value their
product or not and second can company make business out of it or not, whereas planning which is for
any specific operational area of the organization is called operational planning.

Questions & Answers

Q21. Do your Real goals differ from stated goals?

Ans. JDW’s real goals are exactly the same as their Stated goals. There stated goals are following.

 To be the market leader and a world-class organization by meeting and proactively anticipating
customer needs.
 To maximize the wealth of stakeholders by optimizing the long term returns and growth of the
business.
 To be amongst the most efficient and lowest cost producers in the industry

The real goals of the JDW are the same as there above stated goals.

Q22. Do you take input/suggestion from your subordinates and employees while making a
decision?

Ans. JDW involves their employees while making decision. Whenever the upper management take
decisions which concern about the employees they involve their employees. JDW’s upper management
don’t impose their orders directly to their employees.

Q23. What is your source of external environment information?

Ans. JDW’s source of external environmental information is social media and their employees which
give them the information. However to know about the quality of supply and how much the recovery
can be from the sugarcane for that JDW has a laboratory. The laboratory test the quality of the raw
materials.

Q24. Do you think planning really affect performance?

Ans. JDW is of the view that the planning really affect performance. Better planning leads to better
performance. JDW always do plans to achieve their goals. The managers of the JDW do planning to
increase the performance of the organization. And JDW increase its performance by making plans to
increase the pays of employees and by giving bonuses and promotions.

Q25. Do you have any competitive advantage? If yes, which are they?

Ans. JDW has two competitive advantages which are briefed below.

 The first competitive advantage which they have is this that they give payments to their
suppliers at the time of supply or within a week however there competitors give payments to
their suppliers even after one year.
 The second competitive advantage which the organization has is the recovery of the sugar
from the sugarcane. In 2016 they had the most recovery from sugarcane than their competitors.

Q26. Are you working on the betterment/improvement of your competitive advantage?

Ans. JDW is currently working for the improvement or increase in the recovery from the sugarcane. In
2016 they got the maximum recovery however in 2017 they were unable to get that much recovery due
to the low quality of sugarcane supplied by growers. On this the organization gave different chemicals
and fertilizers to their suppliers of sugarcane to improve the quality of sugarcane to maximum
recovery. So, they are expecting better recovery this year.

Q27. What do you think about that your competitors can achieve your competitive advantage?

Ans. JDW sugar mill is leading sugar mill in Pakistan. They are affiliated with Austrailia about ten
years ago to get latest technology. The JDW believes that their competitors would need time to achieve
such technology and have such recovery from sugarcane.

Summary:
In JDW goals are given by upper management to lower management which are directional in nature.
The interpretation is left for lower management. The real goals of the organization are the same as their
stated goals. The organizations upper management take input from their subordinates and employees
while making decisions. The management of organization believe that planning affect planning. JDW
sugar mills have competitive advantage like their better recovery of sugar from cane. And second is
that the organization gives payments to their suppliers at the time of supply or within a week.
Recommendations:
The goals given by upper management are directional which means that the interpretation is left for the
lower management. We would recommend that the upper management should pass the goals which
should not require any interpretation. The goals should be specific and clear.

Role of ethics in management

Ethics play a vital role in management. Ethical conduct in the workplace strengthen a trust among
employees and organization. It help in structuring a culture where decisions are made based on ethics.
It also encourage accountability and transparency while undertaking any business decisions in unstable
and turbulent situation.

Similarly JDW also focus on ethical values in his operations. Ethical values are strongly appreciated
because this is the thing which gives us confidence and become reason of our success. This thing which
just not develop a fairness, merit and trust environment in the organization but also help in making
good relations with our stakeholders. Moreover, JDW also arrange various seminars and training
programs to enhance the ethical values of his employees.

Last year JDW had bought cane at that rate which was fixed by government. But the sugar recovery
from cane decreased due to pesticides attack on cane and our competitor bought cane at lower rate than
the rate of government. Due to which JDW had to bear a huge cost of production and it accepted a
decrease in profits. And second is that JDW show its real net income and due to which they pay huge
amount of income tax however other organizations show less income than the real one and pay less
amount of tax.

Conclusion:
JDW sugar mills Ltd. is an organization which is far better than its competitors. JDW has its own
electricity power plant which uses the waste of cane and produces the electricity. Even they give some
megawatts to WAPDA. JDW is a very successful organization. In 2011 JDW was selected as one of the
top 25 companies by The Karachi Stock Exchange (Guarantee) Limited. JDW also shares its hands for
the charity. Every year they give some percentage of their profits in charities. This is an organization
which give credits to its managers and employees for his success. As a whole the JDW is an
organization with strong organizational culture and strong ethical values.
References

[1] JDW Offiial weeebsite, "JDW Official," 28 November 2018. [Online]. Available: http://www.jdw-group.com.

[2] P. Stephen, Principles of Management, Pearson, 2018-19.