Final Project Report – How to Enhance Performance of Assigned
Industrial Project
IHSAN Sons (Pvt) Ltd.
COURSE: ORGANIZATIONAL BEHAVIOR (MGMT 5013)
Submitted By:
Kainat Iqbal – L1F20MBAM0038
Muhammad Mubashir Ali – L1F20MBAM0110
Asfand Yar Khan – L1F20MBAM0172
Muhammad Arslan – L1F20MBAM0167
Asim Khan – L1F20MBAM0177
Company Profile – Ihsan Sons Private Ltd.
IHSAN started its textile business in 1947 and went into exports in 1956, with its
initial facility being processing of cotton waste, a byproduct of cotton textile
industry. After catering to the local market, the family business expands to meet
export orders and within a few years, to a full export production facility to meet the
growing demand from overseas.
Over a period of time, IHSAN saw steady growth and now working in different
companies;
1. IHSAN Sons (Pvt) Ltd
2. IHSAN Cotton Products (Pvt) Ltd.
3. IHSAN Safety Wear (Pvt) Ltd.
IHSAN Cotton Products (Pvt) Ltd.
IHSAN Cotton Products a name based on the core foundation on trust and high
quality belong to a 100% export-oriented group that has been running its family
business since 1930 and have been part of the textile industry since 1947.
IHSAN started its spinning unit in 1992 with the establishment of European market
Textile machinery like Trutzchular, Schlafhrost and Rieter. Ihsan continued
investment by adding another new and original concept of producing hydroentangled non-Woven fabrics from 100% cotton. The nonwoven hydroentangled
fabrics are made from 100% Cotton to carter to manufacturers of medical and baby
wipes. The unit was setup at end of 2005 with highly sophisticated technology
incorporated from Fleissner as well as Truetzscler and Spinnbau.
IHSAN Cotton is the trend setter in cotton industry for tapping in innovation and
creating products that help us in our daily lives some of them, are Yarns both ecru
and colored, makeups’ house hold cleaning products like Mops, Drop Cloth, Twine,
Clothesline, Meat Stockinette, Cotton Blankets, Sports socks and recently added
vertical Terry Towels units to its line thus consuming its own yarns and finishing the
final product in house. With regards to recognition and promise to deliver products
that assure quality, the company exports to UK, USA, Canada, Australia and Middle
East.
VISION STATEMENT:
“Our goal is always to create products that are a symbol of quality‚ comfort and
perfection. While aiming to attain customer satisfaction by delivering nothing but
the best, by means of utilizing the highest quality of resources and world-class
systems.”
MISSION STATEMENT:
“IHSAN manufactures products using the most advance technology that helps to
cater to the growing demands across the globe.
IHSAN believes in improving our way of working and our focus has always been to
improve lives through innovation.”
VALUES:
IHSAN focus has always been the well-being and takes pride in satisfying our
customers and never missing and opportunity that allows it to grow and increase
market share. IHSAN products are a combination of innovation mixed with
technology. We believe in improving and adding values to daily lives.
IHSAN success has a lot to do with faith in its employees and the spirit of a team
work. All these factors define who IHSAN’s are and what they do.
QUALITY POLICY:
The management and employees of IHSAN COTTON are committed towards
utilization of all available resources to obtain maximum output.
THIS BASIC POLICY IS FOLLOWED AS;
Continuous improvement of quality system at all levels of management
and application.
Our foremost objective is the highest quality excellence of product, management
and services.
Customer satisfaction and search for excellence.
Organizational Structure:
An organizational structure is a system that outlines how certain activities are
directed in order to achieve the goals of an organization. These activities can include
rules, roles, and responsibilities. The organizational structure also determines how
information flows between levels within the company. For example, in a centralized
structure, decisions flow from the top down, while in a decentralized structure,
decision-making power is distributed among various levels of the organization.
Putting an organizational structure in place can be very beneficial to a company. The
structure not only defines a company's hierarchy but also allows the firm to layout
the pay structure for its employees. By putting the organizational structure in place,
the firm can decide salary grades and ranges for each position.
The structure also makes operations more efficient and much more effective. By
separating employees and functions into different departments, the company can
perform different operations at once seamlessly.
Organizational Structure of Ihsan’s:
Project Introduction:
The primary objective of this project is performance enhancement of the selected
business organization, Ihsan Sons Pvt Ltd. Pakistan, with the intent to bridge the
gap between the industry and academia sector of Pakistan. Building upon the
theoretical framework of principles of management and organizational behavior, the
aim is to provide a detailed analytical framework incorporating various elements
which can be effectively utilized in strategy formulation and implementation in
future in order to uplift the overall productivity in different dimensions.
With the fast-paced technological and social elements globally, as well as the everincreasing uncertainty of the global corporate environment, business organizations
operating in Pakistan should be proactive and dynamic in their approach to
recondition themselves for future challenges, and to capitalize on potential
opportunities. The most needed transformation required is in organizational
behavioral management aspect, concerning the well-being, motivation and
emotional intelligence of the employees.
The key elements of the analysis will incorporate insights into the study of micro
and macro environments through SWOT Analysis and environmental model,
organizational cultural analysis through Hofstede Model, incorporation of aspects of
diversity through Diversity Management Model, and analysis of decision making
through the Decision-Making Model. Another crucial element to be incorporated is
the ethical leadership framework, and its implementation in the organization’s
strategies.
SWOT ANALYSIS:
Strengths
Internal Factors
Flexible and cheap
Lack of research and
labor market
development
Availability of
Dependency on
excessive raw
cotton
material
Low labor
Export focused
productivity
sectorial and
Machinery and tools
divisional structure
importation
Opportunities
External Factors
Weaknesses
Threats
International
International
marketing and
competition
collaborations
Increased costs
Regional
Energy crises
cooperation
Unstable political
Domestic market
and economic
Developments in
situations
global economy of
Fast and modern
cotton goods
development in
competing firms
HOFSTEDE’S MODEL IMPLICATION
Hofstede’s Cultural Dimensions Theory, developed by Geert Hofstede, is a
framework used to understand the differences in culture across countries and to
discern the ways that business is done across different cultures. In other words, the
framework is used to distinguish between different national cultures, the dimensions
of culture, and assess their impact on a business setting.
Hofstede’s Cultural Dimensions Theory was created in 1980 by Dutch management
researcher, Geert Hofstede. The aim of the study was to determine the dimensions
in which cultures vary.
HOFSTEDE MODEL IMPLIED IN IHSAN’S
Hofstede identified six categories that define culture:
Power Distance Index
Collectivism vs. Individualism
Uncertainty Avoidance Index
Femininity vs. Masculinity
Short-Term vs. Long-Term Orientation
Restraint vs. Indulgence
Power Distance Index – At Ihsan’s low power distance index is observed which
indicates that company’s culture encourages organizational structures that is flat and
feature decentralized decision-making responsibility, participative style of
management, and place emphasis on power distribution.
Individualism vs. Collectivism – At Ihsan’s collectivism approach indicates that
there is a greater importance placed on the goals and well-being of the group. A
person’s self-image in this category is defined as “We”.
Uncertainty Avoidance Index – At Ihsan’s a high uncertainty avoidance index
indicates a low tolerance for uncertainty, ambiguity, and risk-taking. The unknown
is minimized through strict rules, regulations, etc.
Masculinity vs. Femininity – At Ihsan’s there is a low distinction between gender
roles, with major job responsibilities are not gender-biased, having characteristics of
fluid gender roles, modest, nurturing, and concerned with the quality of life.
Long-Term Orientation vs. Short-Term Orientation – At Ihsan’s long-term
orientation shows focus on the future and involves delaying short-term success or
gratification in order to achieve long-term success. Long-term orientation
emphasizes persistence, perseverance, and long-term growth.
Indulgence vs. Restraint – At Ihsan’s inclination is towards indulgence, focusing
on the employees’ personal gratification. Indulgent cultures place more importance
on freedom of speech and personal control on enjoyment of life.
Corporate Social Responsibility (CSR) At Ihsan’s
Corporate social responsibility (CSR) is a self-regulating business model that helps
a company be socially accountable—to itself, its stakeholders, and the public. By
practicing corporate social responsibility, also called corporate citizenship,
companies can be conscious of the kind of impact they are having on all aspects of
society, including economic, social, and environmental. To engage in CSR means
that, in the ordinary course of business, a company is operating in ways that
enhance society and the environment, instead of contributing negatively to them.
At Ihsan’s – The organization strongly believed in the integration of corporate social
responsibility into its business, and has consistently worked for the uplift of
communities that are influenced directly or indirectly by company’s business. The
Corporate Social Responsibility (CSR) programme of IHSAN Safety is based on the
principles
of
transparency,
accountability,
integrity
and
sustainability.
Community and stakeholder needs are carefully assessed and strategic support is
extended in line with the Company’s Policies, Code of Business Ethics and business
objectives.
Traditionally IHSAN Safety’s CSR programme has focused on education,
healthcare, environment and the welfare of the less privileged in society. The
initiatives undertaken seek to ensure that there is clear value addition and that the
real impact is made at the grassroots level.
CSR Program – The CSR programme of IHSAN Safety is enacted in partnership
with qualified well-respected and reputable individuals who are well equipped and
motivated to bring a change in the society. One of the major projects of IHSAN
Safety is ‘Chiniot General Hospital’ a state-of-the-art hospital which is solely built
for provision to the poor and the needs of the unfortunate. The Chiniot General
Hospital serves the needy and deserving class of people regardless of caste and creed
without compromising the quality of services provided. As such, a number of highly
successful projects is presently being operated in Karachi as well as in Punjab
through which the Hospital is meeting its objectives by providing high quality
services to the poor masses of Pakistan.
SUSTAINABILITY MODEL
Sustainability is most often defined as ‘meeting the needs of the present without
compromising the ability of future generations to meet theirs.’ It has three main
pillars: economic, environmental, and social. These three pillars are informally
referred to as people, planet and profits.
Environmental Sustainability at Ihsan’s – Company is focusing on reducing
their carbon footprints, packaging waste, water usage and their overall effect on the
environment. Organization has realized that having a beneficial impact on the planet
can also have a positive financial impact. Lessening the amount of material used in
packaging usually reduces the overall spending on those materials.
Social Sustainability at Ihsan’s – the organization is in process and striving for
creating sustainable successful place that promote wellbeing, by understanding what
people (employees) need from the place they live and work. Ihsan’s social
sustainability combines design of the physical realm with design of the social world,
inculcating the infrastructure to support social and cultural life, social amenities,
systems for healthy and productive employee engagement, and space for people and
organization to evolve at unified level.
Economic Sustainability at Ihsan’s – under the economic pillar, the firm focus is
on compliance, proper governance and risk management, to make the organization
economically sustainable. Good economic sustainability approach is utilized in such
a way that resources are used responsibly and thoughtfully in order to nurture stable,
long-term growth. The firm’s good profit ratio, while maintaining economical
pricing structure, is strengthening consumers ability to actively engage in the
marketplace, leading to profit for business.
Managerial Grid Style of Leadership
This model originally identifies five different leadership styles based on the concern
for production (On X Axis) and the concern for people (on Y Axis). It ranges from 1(Low) to
9(High). The resulting leadership styles are as follows:
(1,1) - The Indifferent style also called Impoverished style
Managers use this style to preserve job and job seniority, protecting themselves by avoiding getting
into trouble. The main concern for the manager is not to be held responsible for any mistakes,
which results in less innovation decisions.
(1,9) - The Accommodating style also called Country Club style
Managers using this style pay much attention to the security and comfort of the employees, in
hopes that this will increase performance. The resulting atmosphere is usually friendly, but not
necessarily very productive.
(9,1) - The Dictatorial style also called Produce or Perish/ Task Management style
Managers using this style find employee needs unimportant; they provide their employees with
money and expect performance in return. Managers using this style also pressure their employees
through rules and punishments to achieve the company goals. This dictatorial style is based
on Theory X of Douglas McGregor, and is commonly applied by companies on the edge of real or
perceived failure. This style is often used in cases of Crisis Management.
(5,5) - The Status quo style also called Middle-of-the-Road style
Managers using this style try to balance between company goals and workers' needs. By giving
some concern to both people and production, managers who use this style hope to achieve suitable
performance but doing so gives away a bit of each concern so that neither production nor people
need are met.
(9,9) - The sound style also called Team Management style
As suggested by the propositions of Theory Y, managers choosing to use this style encourage
teamwork and commitment among employees. This method relies heavily on making employees
feel themselves to be constructive parts of the company. The leader feels that empowerment,
commitment, trust, and respect are the key elements in creating a team atmosphere which will
automatically result in high employee satisfaction and production. Here manager is capable
of acting sensibly to bring about effective results, maintaining consistency but finding
innovative solutions to fit unique problems, and unusual circumstances”. Another of the
manager’s primary goals in this system is to identify barriers that his subordinates may be
encountering and then finding a way to remove them. This creates a team environment based
on trust and respect which leads to high satisfaction and motivation and, as a result, high
production.
Managerial Grid Style Leadership Applied at Ihsan’s
At Ihsan’s Team Management Leadership style is adapted from managerial grid;
According to the working pattern at Ihsan’s, Team Management is the most effective adapted
leadership style. It reflects that the firm is passionate about its work and who does the best it can
for the people the firm works with.
At Ihsan’s team managers commit to their organization's goals and mission, motivate the people
who report to them, and work hard to get people to stretch themselves to deliver great results. But,
at the same time, they're inspiring figures who look after their teams. As it’s the core belief if the
firm that an employee led by a team manager feels respected and empowered, and is committed to
achieving the goals. Team managers prioritize both the organization's production needs and their
people's needs. They do this by making sure that their team members understand
the organization's purpose , and by involving them in determining production needs.
At Ihsan’s adapting the team leadership style, projects firm’s belief that when people are
committed to, and have a stake in, the organization's success, their needs and production needs
coincide. This creates an environment based on trust and respect, which leads to high satisfaction,
motivation and excellent results. Team managers likely adopt the Theory Y approach to motivation
for their employees to meet the organizational goal.
Conclusion and Recommendations of the Project
The detailed analysis of observed patterns at Ihsan’s to understand the organizational behavior
indicates and ensures that firm is functionally well with adaption of some right approaches of
management and leadership. Though the scale of production is not very high in magnitude at
industrial scale but still as an exporters of cotton goods, the firm is doing well with its outcomes
while striving towards meeting its goals. In terms of employee management and task orientation,
the firm is maintaining healthy balance with respect to its priorities. The theories of organizational
behavior are also rightly implemented by adapting the positive and modern patterns of
organizational and employee management tools and grids.
Although, following are some of the recommendations for Ihsan’s to inculcate and consider for
their more efficient and effective performance:
Update Processes and Technology – Automation is a powerful tool for increasing efficiency
and reducing error. New software solutions can help with scheduling inventory, and
monitoring workflow. Improvements in equipment can improve production speed and quality.
Train and Educate Employees – Schedule training sessions for all operators when new
equipment is installed. Keep accurate records of training and schedule refreshers if needed.
Offer educational opportunities for employees who wish to advance or obtain new skills.
Maintain Optimal Inventory – Use software to track inventory and create automatic
notifications of shortages. To be able to allow vendors direct access to inventory counts and
automatically fulfill needed supplies. Create favored vendor relationships to gain
accountability for the quality of parts and timeliness of deliveries. Make predictions about the
impact of particular shortages and put processes in place to mitigate production delays.
Incentivize Goals – Create some healthy competition and reward employees with incentives—
tickets to a game or the theater, gift cards, dinner for two, time off—for meeting or exceeding
expectations. To be healthy, competition has to be fair.
Advanced Sustainable Development – Develop more resource efficient machinery that
generates less effluent, waste and pollutants. Apply a circular economy mindset when
designing products so that there is improved end-of-product lifecycle reuse and recycling.
Develop and implement improved processes (e.g., closed loop manufacturing) to reduce, reuse
and recycle water, raw materials, non-renewable minerals, other inputs, by-products and waste.
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