PRINCIPLE OF MANAGEMENT FINAL PROJECT

Principle of Management – Ummara Yousaf

PRINCIPLE OF MANAGEMENT FINAL PROJECT

Principle of Management – Ummara Yousaf

Select an organization visit them, based on your observation and

Interviews prepare a comprehensive Project Report

Final Project

• Fizzah Jamshaid (211360102)

• Ch Sohaib Ur Rehman (211360018)
• Ch Sajawal Sindhu (211360006)
• Hassan Butt (211360060)

Last Submission Date: 31 August 2022

 PRINCIPLE OF MANAGEMENT FINAL PROJECT

Table of Content

Introduction to Industry ………………………………………………………………………

• Global level ……………………………………………………………………………

• Country level …………………………………………………………………………
• Local level ………………………………………………………………………………

History of Company ……………………………………………………………………………

Management of Function ………………………………………………………………………

Organizational Culture ……………………………………………………………………

Effect of Globalization
………………………………………………………………………………………………

Pakistan health Commission ………………………………………………………………

Strategic Management ………………………………………………………………………

SWOT analysis ……………………………………………………………………………

Structural Audit ……………………………………………………………………………

• Physical outlook ………………………………………………………………………

• Departments …………………………………………………………………………

Hierarchy …………………………………………………………………………………….
PRINCIPLE OF MANAGEMENT FINAL PROJECT

• Chain of Command………………………………………………………………….
• Span of Control ………………………………………………………………………
• Line of authority………………………………………………………………………

Centralization …………………………………………………………………………………

Formalization …………………………………………………………………………………….

Departmentalization ……………………………………………………………………………

Organizational leadership ……………………………………………………………………….

 PRINCIPLE OF MANAGEMENT FINAL PROJECT

Q: Select 2 companies from the same industry, visit them, based on your observation

compare the following management concepts:

• Introduction to industry

• History of the company

• Management of company

• Organizational culture based on Organizational dimensions

• Social Responsibility

• Management style of company

• SWOT analysis

• Hierarchy Mode

• Formalization of organization

• Departmentalization

• Leadership

• Services

• Human resources management

• Problems faced by organization

 PRINCIPLE OF MANAGEMENT FINAL PROJECT

✓ INTRODUCTION TO INDUSTRY:

Steel is a hard, strong grey or bluish-grey alloy of iron with carbon and usually other elements,
used as a structural and fabricating material. It is the economic backbone of any country and is the
most versatile material It is the most recycled material we depend on steel in thousands of ways
around the world even beyond our planet in Space From the time you wake and until your day is
down steel is working to make your life safer, stronger and better It supports homes, schools,
building, sky-scrappers, bridges, roads and dams.

Steel products are generally classified into four broad categories: long steel products (re-rolled
bars); flat steel products such as Hot Rolled Coils (HRC), Cold Rolled Coils (CRC), and Hot
Dipped Galvanized Coils (HDGC); piped products for use in road construction, etc.; and semi-
finished products that are sold to other manufacturers or consumed internally for processing into
finished products.
 PRINCIPLE OF MANAGEMENT FINAL PROJECT

✓ INTRODUCTION TO COMPANIES:

Rehman steel is an industrial plant for the manufacture of steel. It may be an integrated steel works
carrying out all steps of steel making from melting iron or to rolled product.

Rehman steel is a Pakistan-based company that produces long-rolled steel and heavy metal
products in the country.

Rehman steel as Stockiest, Importers, Wholesalers & Suppliers of Iron Steel Materials &
Products:

International & Local Trading of HRC Coils & Sheets

Structural Steel - H Beams / I Beams / Channels / Angles

CRC / GP / PPGI / P&O / EG (Secondary Lots)

HRC / CRC End Cuts & Un assorted Secondary Lots

HMS 1/2 Scrap

 PRINCIPLE OF MANAGEMENT FINAL PROJECT

Visit & Interview:

Q1: How do your middle and frontline managers perform their role?

Ans: We have distributed our work among two managers who are giving their best for the
development of the country. The work is distributed among them on the basis of production and
salary under them. There is task team at least more than 55 peoples. Between these 55 people they
distribute their work load.

Q2: What do you do to compete with your competitors in the market?

Ans: There are various policies which are follow to complete in the market. We mainly focus on
our product quality which us our first priority and second in quality of the raw material.

Q3: How external environment affects your industry?

Ans: Mainly, there is a big hand of Government policies related to tax and import product policies
that are directly related to our industry and affect us.

Q4: What policies you impose to keep your industries internal environment maintain?

Ans: We mainly maintain our internal environment by fulfilling the legal demands of employees.
 PRINCIPLE OF MANAGEMENT FINAL PROJECT

Q5: How much your organizational function has affected your employees?

Ans: Our employees are awaited of our needs and results and by the basic functions. So, they are
hardly affected by the policies and functions imposed by us on them.

Q6: Does your culture reflects your values and norms?

Ans: There is no proper culture which can define our organization. There is just a normal routine
of employees doing their work activities. Since, we have started from a low-level industry and had
gone through a long journey m to achieve such success that defines where we are today. So, we
don’t think we have prominent culture which affects our employees.

Q7: What is the main hazardous thing in steel plant?

Ans: The main hazardous thing according to us in this industry and for our employees is working
in heat.

Q8: What are different ways of doing Quality control for steel?

Ans: For the quality control of steel the basic element is hardness of steel. So, hardness is common
method used in steel quality control to check the hardness of steel. These tests are performed by
impressing a test specimen, which is resting on a rigid platform under a static load.

Q9: What are the main challenges does steel industry is facing now?

Ans: The main challenges steel industry is facing today are high raw material prices and energy
prices.

Q10: Describe how you delegate tasks to team members?

Ans: The tasks are divided among the team members on the basis of manufacturing and
production. Furthermore, Steel sheets cutting and melting tasks are distributed among them.

Q11: How do you motivate your team?

 PRINCIPLE OF MANAGEMENT FINAL PROJECT

Ans: There are weekly sessions held by us to motivate our employees. We give them suggestions
and give them relief on their work load and also give them commission on their monthly exclusive
work ratio.

Q12: Tell me about a time you deal with difficult employees?

Ans: The employees which are tough to handle are fired out and there is no time to deal with them.

Q13: How do you see manager role on a team?

Ans: Managers are important as they give relief to the upper authorities and are necessary to handle
conflicts.

Q14: What is your biggest management weakness?

Ans: There is no weakness in our management as if our management would be weak. We couldn’t
get the success which we have achieved in the recent past years.

Q15: Describe your management style?

Ans: Our management style is consultative. We ask our employees for feedback consistently and
take employees concern seriously.

Q16: How do your handle conflict between team members?

Ans: We encourage open communication depending on the nature and seriousness of the issue.
We suggest that the employees work through the same issue themselves.

Q17: When you improved your ideas on tour teammates suggestions?

Ans: I improve my ideas on teammates suggestions with my co-assistant but there is no specific
time to do that.

Q18: What are your policies to advance your work?

Ans: Our policies include the advancement of technology and how to reduce prices and the
inclement of innovations manufacturing to advance our work.
 PRINCIPLE OF MANAGEMENT FINAL PROJECT

• APPLY HENRY’S FAYOL’S 14 PRINCIPLES:

1. DIVISON OF WORK:

The whole work of the factory is divided equally to everyone according to their qualification,
Capability, and Experience. Because if a person will do again and again same work he will be
specialized in that work. Everyone is involved in different preparation like one who has account
knowledge he is doing only the same work. Some people who are workers here like they are
working in a labor they are making sheets and some are doing works with scrap some people are
molting the iron work is divided according to their specialization. And it improves the efficiency
of organization.

2. AUTHORITY AND RESPONSIBILITY:

Rehman Industry has a separate responsible team that manages the work and authority is itself
responsible in their twins.

3. DISCIPLINE:

In Rehman Industry discipline include the cooperative behaviors among the employees and don’t
break the organization basic rules.

4. UNITY OF COMMAND:
 PRINCIPLE OF MANAGEMENT FINAL PROJECT

In Rehman steel there is only one boss who gives orders to the employees and employees should
only work for that boss. Because if there will be more than one boss and everyone will give orders
so employees will also get confused for whom they should work. And they will not complete on
time.

5. UNITY OF DIRECTION:

Rehman Industry goals includes providing the best team which gives the proper direction.

6. SUBORDINATE OF INDIVIDUAL INTEREST TO THE GENERAL INTEREST:

In Rehman Industry Before buying raw materials the manager must compare the prices and
qualities of all the suppliers and give orders to the best rather than giving orders to his relative by
misusing his power.

7. REMUNERATION OF PERSON

In Rehman industry employees get fair salaries and wages according to their work which could
satisfy the need and wants of the employees.

• CENTRALIZATION & DECENTRALIZATION:

➢ Rehman steel is both centralized and decentralized.
➢ Strict control by top-level management.

• PRINCIPLE OF SCALAR CHAIN:

Rehman Industry follows principle of scaler chain as information is passed from higher level to
lower level.

• PRINCIPLE OF ORDER:

Rehman industry has a proper way of order as they have substitutes and dont waste time in finding
raw materials.

• PRINCIPLE OF EQUITY:
 PRINCIPLE OF MANAGEMENT FINAL PROJECT

Rehman industry ignores racism and gives equal rights.

• STABILITY OF TENURE OF PERSONNEL:

Rehman industry provide the feeling of job security among the employees because with the feeling
of insecurity of job the contribution of employees will be less.

• INITIATIVE:

In Rehman industry only, manager executes plans rather than Every employee in the organization
must be allowed to take some initiative in making and executing plans.

• ESPRIT DE CORPS:

To bring better coordination and corporation in the organization the management of Rehman
industry encourage and promote team spirit, unity, and harmony.

* SEVEN CULTURAL DIMENSIONS

✓ Innovation and Risk-taking.

✓ Attention to Detail.
✓ Outcome Orientation.
✓ People Orientation.
✓ Team Orientation.
✓ Aggressiveness.
✓ Stability.
 PRINCIPLE OF MANAGEMENT FINAL PROJECT

➢ QUESTION NO 5:

• INNOVATION AND RISK-TAKING:

In Rehman industry the managers and leaders, be innovators and risk-takers.

• ATTENTION TO DETAIL:

In Rehman steel there are skilled professional who creates technical drawings for steel fabricators
and directors. So, they provide a specific good detail to authorities.

• OUTCOME ORIENTATION:

Rehman industry follow outcome orientation and correct and employees are responsible to
authorities in those orientation.

• PEOPLE ORIENTATION:

People-Orientation value fairness, supportiveness, and respect for individual rights. This
organization supports this concept very much and respects every individual.

• TEAM ORIENTATION:

Companies with team-oriented cultures are collaborative and emphasize cooperation among
employees. The company facilitates a team-oriented culture by cross-training its employees so that
 PRINCIPLE OF MANAGEMENT FINAL PROJECT

they are capable of helping each other when needed. With the help of this members tend to have
more positive relationships with their coworkers and particularly with their managers.

• AGGRESSIVENESS:

Companies with aggressive cultures value competitiveness and outperforming competitors. By

emphasizing this, they may fall short in the area of corporate social responsibility. The Rehman
industry has faced a number of antitrust lawsuits and disputes with competitors over the years. In
this company people, be like as “We will kill our competition.”

• STABILITY:

Stability is predictable, rule-oriented, and bureaucratic. The Rehman industry organization aim to
coordinate and align individual effort for greatest levels of efficiency. When the environment is
stable and certain, these cultures may help the organization be effective by providing stable and
constant levels of output. This prevent quick action, and as a result may be a misfit to a changing
and dynamic environment.

➢ QUESTION NO 6:

Rehman steel has a variety of responsibilities to its stakeholders, including employees, customers,
vendors and stockholders. But it also has a social responsibility -- conducting its business in a
manner that benefits society as a whole. This responsibility extends to individuals who may not be
stakeholders -- those who do not directly participate in the company's financial success or use the
company's products or services.

• Environmental Responsibility:
 PRINCIPLE OF MANAGEMENT FINAL PROJECT

This responsibility was once limited to not contributing to air or water pollution. Increasingly, the
concept of sustainability has become an aspect of corporate responsibility as well. Sustainable
business activities include making products with recycled or renewable materials.

Rehman industry is dedicated to environmental responsibility continually review their

manufacturing, distribution and purchasing systems to move toward greater sustainability.

• Community Involvement:

Company benefit from the skilled workforce available in the areas where they operate and from
infrastructure provided such as highways, airports and rail transportation systems. Members of the
community are many times also their customers. In return for these benefits, a company is expected
to get involved in making the community a better place for everyone. Company use their media
visibility to make people aware of social needs or causes the company management believes are
especially worthy. They can encourage their employees to volunteer to serve in charitable
capacities, or better yet provide paid time off for employees to do so.

• Financial Support:

Rehman industry make direct contributions to charities but also get others involved in such ways
as matching donations made by their customers. Not just large corporations recognize their
charitable responsibility. Many small businesses, for example, support school or youth activities
such as sponsoring sports teams. A large corporation might make a multimillion-dollar donation
to support an art museum. A smaller company might be a sponsor of the local community theater.
In either case, without corporate support these charitable organizations might not have sufficient
funding to reach their goals.

✓ QUESTION NO 7:

• PLANNING:
 PRINCIPLE OF MANAGEMENT FINAL PROJECT

In Rehman steel the production process consists of a production system consisting of several inter-
connecting processes whereby raw materials are converted into finished steel utilizing fuels,
utilities, and other materials. In this production system, some by-products are also generated. The
production system has got a wide number and variety of processes differing in their nature,
technology, and work environment. Some of these processes work in series while the other
processes work in parallel. The primary objective of the steel plant is that the operation of these
diverse production processes is carried out in efficient, economical and integrated manner to
produce and dispatch steel products in quantities and qualities needed by the customers.

Production function is that part of the organization, which is concerned with the transformation of
a range of inputs into the required outputs (products) having the requisite quality level. Production
can be understood as ‘the step-by-step conversion of one form of material into another form
through metallurgical, chemical, or mechanical process to create or enhance the utility of the
product to the user. Hence production is a value addition process and is an organized activity.

• ORGANIZING:

Rehman steel is must develop a strong discipline among the organizers and workers in order to
prevent the movement from being wrecked by company-inspired local strikes and other disruptive
tendencies. It must realize that if the steel workers are to be organized they can only rely upon
themselves and the support they get from other workers.

1: The steel workers cannot be organized by agitation alone ; it requires thorough organization.

2: The work must be coordinated and planned—per organizer, per locality, per day, per week,

3: The organization work must be carried out upon the basis of an energetic drive.

4: Loss of momentum are very dangerous in the drive by weakening the confidence of workers.

5: A strong discipline should prevail all through the campaign, but each unit must develop a healthy
initiative, based on a vigorous trade union democracy.
 PRINCIPLE OF MANAGEMENT FINAL PROJECT

• LEADING:

Leading involves the social and informal sources of influence that you use to inspire action taken
by others. If managers are effective leaders, their subordinates will be enthusiastic about exerting
effort to attain organizational objectives.

The behavioral sciences have made many contributions to understanding this function of
management. Personality research and studies of job attitudes provide important information as to
how managers can most effectively lead subordinates. This research tells us that to become
effective at leading, managers must first understand their subordinates’ personalities, values,
attitudes, and emotions. The ways in which workers can be energized to put productive effort.

Provide direction as to how managers can effectively and persuasively communicate.

The situations in which manager leadership styles is most appropriate and effective.

• CONTROLLING:

Controlling involves ensuring that performance does not deviate from standards. Controlling
consists of three steps, which include

(1) establishing performance standards,

(2) comparing actual performance against standards

(3) taking corrective action when necessary.

In Rehman industry the measurement of performance can is done in several ways, depending on
the performance standards, including financial statements, sales reports, production results,
customer satisfaction, and formal performance appraisals. Managers at all levels engage in the
managerial function of controlling to some degree.
PRINCIPLE OF MANAGEMENT FINAL PROJECT

✓ QUESTION NO 8:

• Strengths:
1. Availability of raw material.
2. Availability of labor at low wage.
3. Quality manpower.
4. Developed transport & shipping system.

• Weakness:
1. Systemic deficiencies.
2. High cost of capital.
3. Low labor productivity.
4. High cost of basic inputs and services.
5. High rate of taxes.
6. Quality issues and less expenditure on R&D.
7. High cost of manufacturing.
8. Inability to adopt technological advancement.

• Opportunities:
1. Unexplored rural market and other sectors.
2. Export penetration and increase in demand.
3. Mergers and acquisition.
4. Infrastructure development in India & abroad.
 PRINCIPLE OF MANAGEMENT FINAL PROJECT

• Threats:
1. Slow industry growth.
2. Technological change.
3. Price sensitivity and demand volatility.
4. China factor -dumping of low-price steel

✓ QUESTION NO 9:

• POLTICAL ANALYSIS:

The main aim for the introduction of this policy is to fill the gap between the demand and supply
of the steel. To maximize the production is also main activity is designed under this policy. To
increase the production up to million ton is also the main objective of the policy.

Under this policy the government is encourage to the use the full opportunities available in the
PUBLIC AND PRIVATE PATNERSHIP (PPP). With the growing industry the government is
increased the sales tax from the 15%to 20% where as 75% FDI (foreign direct investment) is
allowed in the industry this scheme also provides the various concessions in the custom duties.
Though there is a rise in the infrastructure facilities in the country but considering the steel industry
the present condition of the infrastructure is not sufficient in the nature. because of the lack in
infrastructure steel industry is facing many problems.

• ECONOMICAL ANALYSIS:

STEEL industry is concern to be a very booming industry from past decades. Opening up with the
various economies the foreign direct investment is the happened in this sector the various foreign
players are interested to invest in the country. Under the various economies schemes there is
 PRINCIPLE OF MANAGEMENT FINAL PROJECT

permission in advance licensing scheme which allows the duty-free imports of raw material for
exports. But, with the boom in the industry GDP is rising at very slow rate. The steel industry is
also facing the problem of the subprime crisis occurs in the united states before 15 months. Because
of the subprime crisis there is ill effect occurs in the automobile industry, infrastructure and other
business which are related with the steel industry. There is huge gap between the demand and the
supply of the steel in the society.

• SOCIO CULTURE:

The socio culture is one of the important aspects in the analysis of the industry it describes the
impact of the particular industry on the society. Likewise, the steel industry also gives the
encouragement to the permanent employment to the people but on the other hand it divides the
area in to the rural and urban sector because the industry is only in the particular area only which
leads to the particular development of that area only and not overall the development. because of
the working conditions the people which are employed in the steel industry faced many health
problems which are incurable in the nature and many industries are not paying the attention on the
health of the employees. Any kind of the allowances are not given to the employees. Steel industry
is also responsible for the development in the rural sector which leads to the rise in the standard of
the living of the people.

• TECHNICAL:

The traditional technologies are being used from many years in the industry. There is no innovation
in the use of the technique in the production process. The Tata steel is developing the same
technique is by which the encouragement is given to the trading of the steel. Tata and sail introduce
the online trading of the steel. Only the electric furnace is being used now days in the production
process but because of the fluctuations in the energy there is wastage in the raw material. The basic
technologies are used in the production process are basic arc, induction furnace and electric furnace
which are outdated in the nature.

• ENVIRONMENTAL:

Though the steel industry is encouraging the many sectors and the encouraging the development
it is creating the unfavorable environment in the nature. The all leading industries are following
 PRINCIPLE OF MANAGEMENT FINAL PROJECT

the environmental acts which are declared by the governments, though it is creating very bad
impact on the environment. Many industries are using the pollution control equipment and energy
saving equipment but that is not sufficient in the nature. The least importance is given to the
environmental aspect. But the Tata steel is encouraging the ecofriendly system, to reduce the
emission the co2 gas during the production process. Tata is developing the Ultra-Low Carbon steel
making where there will be reduction in the environmental loss.

• LEGAL:

Government is introducing the various rules and regulations of this particular industry. The
government is about to paying the more attention in the health policies of the employees which are
working with the steel industry. Special health incentives and rules are introduced in the steel
industry.
 PRINCIPLE OF MANAGEMENT FINAL PROJECT

✓ CONCLUSION:

From above discussion and surveys, we come to know about how the pestle analysis is done in the
industry we also come to know about the political, economic, and technical aspect are important
for the development of the particular industry if these factors are not in the supporting in the favor
of the industry then the industry may face some consequences