University of Gujrat: Internship Report

Prepared By: Bahjat Ijaz
Roll No: 07021020-075

Faculty of Management & Administrative Sciences
University of Gujrat
GFC (PVT.) LTD

GUJRAT
INTERNSHIP REPORT
General Fan Company (Pvt.) Ltd.
INTERNSHIP REPORT
A six weeks internship report submitted in partial fulfillment
of the requirement for the degree of the
MASTER’S OF BUSINESS ADMINISTRATION
in
Human Resource
from
by
Bahjat Ijaz
Under Roll No: 07021020-075
The Internship report of Miss Bahjat Ijaz
is approved:
-------------------------------------------------------------
Internship Supervisor
Prepared by: 07021020-075 Page 2 of 55

Hafiz Hayat Campus, University of Gujrat.
Letter of Transmittal
The Coordinator,
Subject: Submission of Internship Report
Dear Sir,
I acknowledge with my cordial thanks the co operation & encouragement you

provided and it gives me great pleasure in submitting my report to you.
With regard to the opportunities you provided, I tried entirely to figure out something
about fan industry and its requisite prospects.
During my 6 weeks training session I have gathered & learned a great experience for
myself .finally I entirely enjoyed this assembling of term paper with your renowned
institution, mortal support & encouragement.
I should be glad and ready to co-operation with whatever you may ask for further
clarification.
Thank you.
Yours Sincerely,
-------------------
Bahjat Ijaz
Roll No: 07021020-075

ACKNOWLEDGEMENT
I dedicate this internship report to all the employees of GFC (Pvt.) Ltd.Whose kind
guidance and help, during my stay in metro, made me to learn a lot about different
tasks at professional level.
At this moment I also want to give a tribute to my teachers by dedicating this report to
Faculty of Management & Administrative Sciences, University of Gujrat.

TABLE OF CONTENTS
Contents Page No.
Letter of Transmittal 05
Acknowledgement 06
Executive Summary 07
1. Introduction of Organization 08
Brief History 08
Company’s Credential 14
Company’s Achievements 16
Company’s Certificates 17
Type Of Company 19
Hierarchical Level Of Company _____20
Boards Of Directors _____21
Communication Model
22
2. Company’s Departments__ 23
2.1. Purchase Department 24
2.2. Inspection Department 26
2.3. Production Department 27

2.4. Sales and Marketing Department 30
2.5. Research and Development 31
2.6. Internal Audit 31
2.7. Export & Import Department 32
2.8. Accounts Department 34
2.9. Human Resource Management 37
2.10. Field of Activity 37
3. Other Learning 43
4. Objectives of Studying the Organization 44
5. The Business Principles of GFC 44
6. Suggestions 48
7. References 51
8. Appendix 52
9. Contacts of Internee and Organization 54

EXECUTIVE SUMMARY
General Fans Company (Pvt.) Ltd. Is one of the top most Fan manufacturers
in Pakistan which is recognized for best quality and design in Fan Industry. It
is a great honor for me that I have completed my six week internship as per
degree requirements in HR department of GFC. There are several
departments working in GFC which include:
 Purchases
 Raw material inspection
 Production
 Sales and Marketing
 Research and Development
 Accounts Department
 Human Resources Management
 Internal Audit
 Export & Import
I was first assigned to the HR department for first four weeks and then
rotated to different departments in the last few weeks so that I may
understand the workings and collaboration of different departments.

It was a very good experience in GFC and I observed every department and
its working keenly and gave my suggestions to the top management for the
betterment of GFC.

INTRODUCTION OF ORGANIZATION
1.1. Brief History
General Fan Company (Pvt.) Ltd. was formed in 1954 as a small manufacturing
unit for electric fans. The company grew rapidly from its modest start because of the
quality of its products. The company was one of the major exporters of fans in 1960's
to Iraq. However, the company was in trouble in late 1970's due to differences in its
partners. The present management took over the company in 1978 and Mechanical
Engineer Muhammad Ilyas took over as Chief Executive of the company. Under his
dynamic leadership the company grew rapidly and G.F.C became major recognized
brand for fans in the Pakistani market.
Mr. Muhammad Ilyas, the Chief Executive who is a foreign trained Mechanical
Engineer, brought in new technologies for fan manufacturing from developed
countries and improved G.F.C products in a continuous process.
Automatic Capstan Lathe Machines and Die Casting Machines were introduced in
1982. Automatic Winding Machines were brought from Taiwan in 1985. A Japanese
made modern Enameled Wire Manufacturing Plant was installed in 1987 for the
manufacturing of quality enameled copper wire for own consumption as well as for
the sale in the local market. Plastic Injection Molding Machines were installed in
1993 to manufacture own plastic parts for plastic fans like Exhaust Fans, Bracket
Fans, Circumatic Fans and Table Fans.
A modern tool room was set up for the manufacture of Dies, Molds and Models etc.
The tool room consists of Wire Cut Machines, EDM Machines, Surface Grinders,
Cylindrical Grinder, Shaper Machines, CNC Milling Machines and Copy Milling
Machines. Automatic Rotor Balancing Machines were introduced in 1995 to further
improve the quality of fans. Modern Continuous Stamping Presses were installed in
1997 for manufacture of motors of all type of fans such as Ceiling, Pedestal, Bracket,

Exhaust and Circumatic Fans etc. Slitter Machine for slitting the electrical steel sheet
coils was installed in 1999.
The company started manufacturing Washing Machines in 1996. Due to its quality
and excellent finish the product has become an instant success. Gas & Electric
Geysers are being manufactured since year 2000.
The Chief Executive Mr. Muhammad Ilyas is a pioneer in the export of electric
fans from Pakistan. To initiate the export from Pakistan he attended an International
exhibition for electrical appliances in 1993 in Abu-Dhabi. The company also
participated in many trade delegations as well as exhibitions arranged by Export
Promotion Bureau and Federation of Chamber of Commerce & Industry in
Bangladesh, Yemen, Saudi Arabia, and Dubai, Bahrain. Qatar, Sudan, Egypt, U.S.A.
etc. G.F.C was the first Pakistani company to export fans to the Middle-East. G.F.C
Fans became an instant success due to their quality and durability in all the markets
where these were introduced.
General Fan Company has also set up a unit to manufacture capacitors used in electric
fans, Washing machines and motors. Mr. Muhammad Ilyas (Chief Executive) and
Mr. Muhammad Ijaz (Finance Director) are always on the look out for the latest
technology for manufacturing of electric fans as well as for corporate management of
the company. Now G.F.C has established a new Computer department which keep its
Executives update about any inquires. This shows the interest of management not
only in manufacturing technology. But they also know the importance of information
technology. G.F.C has stepped in this Millennium fully equipped with manufacturing
and information technology for Corporate Management and Marketing.
G.F.C can rightly claim that they have all the best technologies in its workshops,
which are available for Design, Production. Our products are now of International
Standard, and we are truly an International Company. Our 800 Employees and
Management are committed to Excellence in Quality.
G.F.C. was the pioneers in export of fans from Pakistan. G.F.C. has got eight Export
Trophy Awards for Fans and other Electrical Products like enameled Copper Wire.

1.2. Main Competitors:
General Fan Company has perfect competition in the market for different products,
mainly in fan manufacturing field. The main competitors of G.F.C (General Fan
Company) are;
 Pak fan
 Royal fan
 Younis Fan
1.3. First mover advantage:
General Fan Company is currently enjoying the first mover advantage of exports.
G.F.C is the only company which starts to export to other countries. That's the reason
company has been rewarded export trophy for 08 times.
G.F.C being the most popular brand as for the electric fans in Bangladesh most of the
fan manufacturers in Bangladesh are using "G.F.C" trade mark beside the
manufacturers of China who are exporting their electric fans to Bangladesh with the
same Trade Mark. To stop the manufacturing and selling of fake G.F.C Fans which
are registered vide Trade Mark Registration No. 62674 dated 22.11.1999 the Chief
Executive of the company, Engineer Mohammad Ilyas, visited Bangladesh.
1.4. Our Core Values:
 Competent
 Committed
 Creative
 Cooperative
 Caring

1.5. VISION STATEMENT

We believe that we have
A unique product which has been developed by G.F.C,
And no other country manufactures a pedestal fan like ours.
This product is most useful in the hot tropical humid climates.
We want to mark this product throughout the world,
And we foresee this product to dominate the entire International market.
We want to set up an excellent after-sales-service,
And spare parts supply service to each and every country.
We also want to set up home service centers throughout the world.
We believe that within 10 years;
We can achieve an export target of US Dollars 40 Million.

1.6 MISSION STATEMENT
To produce such quality products,
Which provide entire satisfaction to all our customers
the world over.

1.7 QUALITY POLICY STATEMENT

Quality policy of G.F.C is to produce such quality products,
which provide our customer the entire satisfaction the world over.
to meet this obligation, we continually update employees’ skills
by introduction of new technologies.

1.8. COMPANY’S CREDENTIAL

General Fan Company (Pvt.) Ltd. is a pioneer in the export of electric fans from
Pakistan. To initiate the export from Pakistan we participated in International
exhibition for electrical appliances in 1993 in Abu-Dhabi. The company also
participated in many trade delegations as well as exhibitions arranged by Export
Promotion Bureau and Federation of Chamber of Commerce & Industry In
Bangladesh, Yemen, Saudi Arabia, Dubai, Bahrain. Qatar, Sudan, Egypt, U.S.A. etc.
G.F.C. was the first Pakistani company to export fans to the Middle-East. G.F.C. Fans
became an instant success due to their quality and durability in all the markets where
these were introduced.
By the grace of God:
 G.F.C. has been getting the Export Trophy from FPCCI for the export of
electric fans for many years. The growth rate of fan export from G.F.C.
has been continuously more than 100% per annum for the last 5
years.1/3rd of the total fans exported from Pakistan.
 G.F.C. has large International orders many times more than the previous
years for the financial year 2001-2002 and we are looking forward to
export fans to all parts of the world including United States and Europe.
 Water and Power development authority has issued the renewal of

Registration in 1997. Registration Renewal is an honorable success that
G.F.C. has achieved.
 ISO-9002 Certificate assures that Manufacturing Quality of Electric Fans

are according to International Standards.
 Engineer in Chief Branch has given the certificate of

Enlistment/Registration dated: 23-2-2000 on best technical performance.
 Contract agreement for supply of G.F.C. Fans for "Army Housing

Directorate" at 30 April 2001 and is a big achievement for G.F.C. Fans.

 Pakistan Standard Institution has certified according to 1961 ordinance.

The institution hereby grants to G.F.C. Fans. (Hereinafter called "the
License") this License is used as standard mark.

1.9. COMPANY’S ACHIVEMENTS

1.10. Company’s Certificates


1.11. TYPE OF COMPANY

General Fan Company (Pvt.) Ltd. is a partnership company of two brothers.
Partners
Of
General Fan Company
Brothers
Muhammad Ilyas
Muhammad Ijaz
(Chief Executive
(Director Fin. & Purch.)
Officer)

1.12. HIERARCHICAL LEVEL OF COMPANY
Board of Directors
Chief Executive Officer
Director Director Director

Fin. & Pur. Marketing Production
Assistant
General Manager
Accounts
Manager Manager Manager Manager Manager Manager

Sales Auditing H.R.M Exp. & Imp. Ceiling & Pdstl Quality Ctrl
Cashier
R&D
Internal External Department

1.13. BOARD OF DIRECTORS
Nighat Ilyas
Muhammad Nabeel
Ilyas Ahmad Ilyas
Board
Muhammad Of Mobeen
Ijaz Ahmad Ilyas
Directors
Farhat Ijaz
Nazim Ijaz
Asim Ijaz
There are two families of jointly managing the General Fan Company. All boards of
directors are family members.

1.14. COMMUNICATION MODEL

There is no well defined model of communication. I observed that following
communication model.
Director
Finance
Director Director
Marketing Production
General Manager Manager H.R.M
C.E.O
Manager Manager
Exp. & Imp. Auditing
Manager
Cashier Quality Control
Manager
Sales

2. COMPANY’S DEPARTMENTS
To run an organization many departments work in it, so that an organization may

achieve its aims and objectives efficiently. To ensure efficient working of G.F.C the
departments that are working in it are as:
There are 09 departments working in the Organization
 Purchases
 Raw material inspection
 Production
 Sales and Marketing
 Research and Development
 Accounts Department
 Human Resources Management
 Internal Audit
 Export & Import

2.1. Purchase Department
Purchase department in every manufacturing organization is of most importance.

Because this department provides the other departments as production department
with their basic needs. This department is also responsible for the quality of the
products produced in that organization, as the quality of product depends upon the
quality of raw material.
In G.F.C raw material is also purchased from outside that's why they are in need of a
production department to fulfill the purchase requirements. This department purchases
raw material for the production department. It is the responsibility of this department
to provide quality material within minimum cost.
To achieve this purpose, the production department of G.F.C purchases raw material,
in the supervision of two managers i.e. Mr. M. Kamran and Mr. Zia Hussain, from
both sources i.e.
 By domestic purchases
 By importing raw material
In Domestic Purchasing, G.F.C purchases raw material regarding the manufacturing

of, fans, washing machines, room air coolers, etc. and mostly for this purpose markets
of good standards are visited.
G.F.C purchases raw material locally from Gujranwala, Lahore, Gujrat, etc.
In imports, G.F.C mostly imports those materials that are either expensive or of low
quality in Pakistan. Importing is done to keep the standard of production high as well
as keeping per unit cost at some reasonable point.
The material that in included in imports of G.F.C are

 Aluminum Sheets.
 Copper Rods.
 Plastic raw material.
 Mini Motors
 Chemicals
Here is lists of those countries from which mostly imports are done by G.F.C are
from:
 China
 Taiwan
 Korea
 United Kingdom
 Japan
 Hong Kong
Material From Purchase Inspection

Market Department Department

2.2. Inspection Department
Those organizations that don't compromise on quality keep an inspection department

whose work is to inspect the raw material for quality of raw material and its quantity.
If any material is of less quality or of that quality that is not acceptable to the
organization, this department doesn't give permission to enter such material within the
boundaries of organization and material is returned as it is.
In G.F.C there is an in charge for the inspection of raw material and it is his
responsibility to make sure that the purchase made for organization is for that material
which is of best quality.
This department restricts the entry of such material that is either of:
 Less quality
 Defective
 From unauthorized dealer
 Not useful
This department ensures that material purchased is of:
 Best Quality
 Contains no defect
 From authorized dealer

2.3. Production Department
Production department in any organization is of immense value. Performance,

working, profitability, etc. depends upon this department.
All the products of organization are manufactured here. It is the department where
force of organization either in labor form or in financial form is applied over material
to make products for the organization. So that organization may sell those products in
the market to get profit.
Like other organizations G.F.C is also paying great attention towards Production
Department. According to C.E.O of G.F.C, Production and Selling Departments are of
more importance to them.
This department works under the supervision of Mr. Asim Ijaz who is the Director of
production and he has 4 foremen under his authority so that authority is delegated to
others in order to make sure that work is going as at should be.
Staff in production department is highly skilled although most of them are not too
much educated but they are skilled person in whom 20 members of management and
700-800 are labors and these are the true assets of the company
In G.F.C production department is divided into further sub departments as:
 Motor Section
 Body Section
 Fitting Section
 Packing Section
2.3.1. Motor Section
I. In this section of production department motors for various products of

G.F.C are produced. In this section motors for ceiling fans, pedestal fans,
room air coolers, etc. are manufactured.

II. Ceiling fans use a variety of motors i.e. 36" 48" and 56" are used. And
this section produces the motors for all.
III. In Pedestal fans motors used are entirely different from the motors used
in ceiling fans. This section also produces the motors for pedestal fans.
IV. Meanwhile room air coolers also use motors in two ways.
V. Motors for fans
VI. Motors for water pumps.
This section produces the motors for all. This section covers sub sections as:
a. Winding Section
In this section copper wire is made winded, for type of motor that is going to be used
in the Production of other products.
b. Coil Testing Section
In this section coils made in winding section are tested whether they are in working
condition or not. Only approved coils are sent to motor section.
2.3.2. Body Section:
In this section of production department bodies of various products are manufactured.

No matter whether the body is made of plastic or it is made of metal. In this section,
bodies of fans, washing machines, coolers, heaters, and other products are
manufactured.
This section is comprised of the following:
 Blade section
 Plastic Molding Section
 CNG milling section
 Copper Wire Section

i. Blade Section:
In this section blades for different kinds of fans are produced. Fan blades, blades for
air coolers, etc. are produced here keeping in mind that blades should be good looking
and efficient in working.
ii. Plastic Molding Section:
In this section production department plastic is molded in various shapes to make

bodies of fans in plastic those parts of ceiling fans that are of plastic. In short this
section makes all the plastic parts of products.
iii. Copper Wire Section:
This section makes the copper wire for own use and also as a product of G.F.C to be
sold in market and for using in its own production process e.g. in making motors.
iv. Fitting Section:
This section is responsible for the assembling of different parts that make up a
product.
In this section rotor and stator are combined to make up a complete motor.
Similarly in blade section blades are assembled with their connecters. In this
department other things like pedestal fans are assembled. This section makes the
product in final shape to be packed and sell.
v. Packing Section:
In this section products are packed to be delivered to selling and marketing

department to sell them in the market to have income.
This department provides the facility of safe packing and making the products in
attractive packing to catch more and more customers.
Production Finished
Raw Material Department Goods

2.4. Sales and Marketing
Marketing and selling department is very important for every company either is
multinational company or domestic company. This department is a link between
organization and customers. It s the responsibility of this department to make the
customers aware about the products produced in the organization. On the other hand
this department is also responsible to sale the products that are manufactured in the
market.
There is only one Director of marketing i.e. Mr. Nabeel Ahmad Ilyas, son of C.E.O
Mr. Muhammad Ilyas, and one manager in sales department is Mr. Abdul Rehman.
Marketing department is responsible to provide the goods in the market according to

the need of the customers. Focus the marketing department is to providing products at
proper place at proper time. Staff of this department is highly qualified and skilled.
This department concentrates on qualified staff who analyze the market and suggest
the manager how and where they should to present it.
In the off-season, G.F.C also sells its products in large quantity by offering the
special discount. They give special discount on buying their products. According to a
survey made by G.F.C only 40% fans in the market are from recognized and
registered firms remaining 60% are private and unregistered firms. Their product's
sale in KARACHI is stronger and their market share is 18% out of 40%.

2.5. Research and Development
Research and development (R&D) department in any organization can lead the
organization away from others because this department makes a research in the
market regarding future trends, expected changes that are going to be in customer's
taste and demand.
It also suggests to the organization what was the response of previous version of
product and what is to be innovated.
In G.F.C R&D is not working in the form of a well arranged and not in a proper form
of a department. Few employees Mr. Engineer Shehbaz as the manager of this so-
called department do this work of R&D department. He is alone responsible for the
research work.
2.6. Internal Audit
Internal Auditing is done to check the working of Accounts Department. Mostly it is

done to prevent the errors in cash matters of the organization either intentional or
unintentional.
G.F.C has also its internal Account Department that works in the supervision of Mr.
Malik Tafheem has taken the responsibility of internal Auditor.
The work of this department is to show actual position of accounts that should be
error free. As chances of fraud and misappropriation prevail in every organization so
this is the responsibility of this department to fail all the tries that are made in this
regard.
Note: External Audit is done by the “M.A Chaudhary.”

2.7. Export & Import Department
This department is revenue generator for the organization and it ensures that
organization is gaining in the market. This department is accountable for the delivery
of products to the markets where the organization wants to compete and capture
market by satisfying customers with their quality
The strength of G.F.C fans depends on this department. Department has been
comprised on highly skilled and experienced people, they perform their duties and
boost the exports with in well-established structure.
The manager of this department is MR.Shahid Ali. This department is responsible for
contacting with foreign raw material suppliers, search for the new suppliers when
needed, import all the raw material required by production department.
When company started its exports, there was no planned procedure. But now after
growing the company uses latest technology for the export of products.
This department plays an essential role to capture well challenging global market and
deal with all import and export contemporary challenges under high responsibilities
and company strategy and policy department endeavor to augment the export
channels.
G.F.C fans company first time export their products in AMERICA.
Export is a major part that distinguishes it to the other companies.
Export countries of GFC fans are,
 SAUDI ARABIA
 YUMAN
 AFGHANISTAN
 INDONASISA

 DUBAI
 UNITED KINGDOM
 UNITED STATE OF AMERICA

2.8. ACCOUNTS DEPARTMENT

Accounts Department in any Organization is important because of its working. This department shows
the progress of organization and allocates the amount to purchase department for purchases. It also
pays the rewards to other factors of production in the form of rent, wages, salaries, interest on loans,
electricity bills, payments to suppliers, managing company accounts etc.
In G.F.C accounts department works under the responsibility of Mr. Shahid-Ur-

Rehman who is the General Manager of the organization.
This department is liable to allocate amount approved by C.E.O to various department

on their need. This department also decides about the suitable method of paying
wages to labors.
In G.F.C accounts department has set the method of wages to production labor as
PIECE RATE SYSTEM. This department prepares annual reports of the
organization in the month of September every year because September is the closing
month of annual year in G.F.C.
This department is also held responsible for the distribution of annual bonuses and
relieves to the workers that C.E.O declares to them.
2.8.1. SOURCES OF RECEIPTS:
 Recovery from sales through show room
 Sales proceeds of left over raw material
 Export fans
2.8.2. PAYMENTS:
 Wages
 Staff Salaries
 Utilities expenses

 Govt. Dues
2.8.3. GOVT. PAYMENTS:
 Custom Dues
 Sales tax
 Electricity, Sui gases and telephones expenses
2.8.4. PAYMENTS TO SUPPLIERS:
 The suppliers are paid on credit/cash basis
 Venders are paid on cash basis
 Foreign suppliers are paid up to a limited level
2.8.5. Functions & Operations of Accounts department;
Double entry accounting system is used in G.F.C.
Following are the main duties performed by the Accounts department:
 Voucher preparation
 Coding & Posting of Vouchers
 Prepare a statement of daily receiving & payments
 Preparation of Financial statements
 Cash disbursement
 Monthly Trial balance preparation
 Ending adjustments
 Monthly Cash flow projection
 Bank Reconciliation Statements

 Sales Invoices
 Sales Tax Invoices
 Report to FBR
Account department also performs following functions:
 Comparison of cash flow, Budgeted Vs actual
 Capital investment
 Fixed assets schedule report
 Comparison over heads report budgeted Vs actual
 Fixed overheads
 Variable overheads
 Preparation of production statement
 Preparation of Stock statement
 Month wise production and its sales value
 Wages and salaries statement
 Preparation of report on working Capital
 Receivables
 Raw material including stocks on way
 Finished goods stocks
 Advances and prepayments
 Cash/Bank balance on hand

2.9. HUMAN RESOURCE MANAGEMENT
2.9.1. HUMAN RESOURCE AND SUCCESSION PLAN
Human Resource Policy is to hire young, fresh, energetic and active associates to
meet the existing and future workforce requirements and providing its associates
maximum opportunities for internal mobility through personal training and
development to enable them to take higher positions. Human Resource Division has
to have succession plan for each key job/area to make sure the continuity of
operations in the relevant division and to fill the temporary/permanent vacancy.
2.9.2. FIELD OF ACTIVITIES
My field of Specialization is M.B.A (HR), so I work 6 weeks under the supervision of

General Manager in General Fan Company, 5 weeks in Human Resource Department,
and 3 weeks in observing other departments.
General Manager is responsible of handling all company records, and HR related

activities. The G.M of G.F.C is very hardworking and very honest person.
I prepared the whole company report in my internship period, in which I discuses all
the departments and their functions. Most of my internship time was spent in HR
department, now I will discuses the all functions and operations of HR department,
their critical analysis and recommendations.
Human Resource Department is actively working in G.F.C fans private limited Gujrat.
Basic responsibilities of this department are as follows:
 Hiring Employees
 Firing Employees

 Developing Training Plans for Employees
 Maintaining Appraisal Reports
 Maintaining the Records of Employees
2.9.2.1. HIRING EMPLOYEES
There is a proper process for hiring an employee in G.F.C fans private limited and this
process has several steps which are as follows:
 Need Analysis
 Job Requisition
 Job Advertisement
 Sorting the Applications
 Initial Interview
 Testing
 Second Interview
 Final Assessment
 Orientation
 Training
2.9.2.2 Reference base Hiring:
In G.F.C Gujrat employees also hire through references of already active employees
but test and interviews are conducted for them as well.
2.9.2.3. FIRING EMPLOYEES:
If an employee does not work according to defined rules then it is responsibility of

HR Manager that employee should be fired. If any employee commits any

unauthorized work during his job then he will be fired. If any employee is not
working up to the mark and not achieving his targets then HR Manager can fire him.
2.9.2.4. Recruitment and Selection Process
In GFC the recruitment and selection is made mostly on employee referrals and sometimes if needed
advertisement is made on the newspapers for the filling of vacancies. The recruitment and selection
process of metro includes the following steps:
CV with professional reference
Evaluation of application and CV
Call for Interview
Temporary job letter after success of interview
Clearance certificate from previous organization
Medical certificate
Completion of trial period
Issuance of permanent or contract job letter
2.9.2.5. JOB DESCRIPTION
Job is described at the time of interview and a complete job description is made on the
permanent job letter of the employee. A job description form has been developed for
the job description of every employee.
2.9.2.6. DEVELOPING TRAINING PLANS FOR EMPLOYEES:
HR Manager is also responsible for developing training plans for employees (workers
& staff) and Internees.
I. Identification of Training Needs:
The training needs of employees (staff & workers) are identified by the function that
they perform and by the respective departmental head.
For a new employee the training needs are identified in the job descriptions.

For existing employees (in case of workers) the training needs are identified in the
“Training Needs Assessment Form”. The relevant departmental head fills the Training
Needs Assessment Form. For staff members the training needs are assessed on ACR
that is filled by the relevant departmental head at the end of every financial year.
Training needs are identified in G.F.C fans private limited. Gujrat to enable
employees to execute routine task and to enhance their professional capabilities,
enable all persons to reach their full potential, to introduce new techniques and skills
in a timely manner and to improve the efficiency and effectiveness of the company’s
activities. The qualification and experience required for persons performing tasks
affecting quality are documented in the job descriptions.
II. Training:
Based on the TNA (Training Need Assessment) for the workers HR Manager
develops an annual training plan. This training plan is then forwarded to the
respective departmental head along with the training attendance sheets. The
designated trainers conduct training on the dates mentioned in the plan.
The TNA (Training Need Assessment) for the staff members is conducted by the
respective Departmental Heads on their ACR (Annual Confidential Report). The
General Manager is responsible for developing Annual Training Plan (for executives)
based on the recommendation of the departmental heads, as desired by the
departmental head or management time to time.
For a new employee who has been hired at the staff level the HR Manager and
relevant head of department develop an orientation plan. After the orientation phase is
over the employee submits a written report. Based on this report, the departmental
head gives his recommendation that the employee needs further training or not. If
further training is required a further orientation plan is developed and subsequently
the training is provided.
III. Evaluation of training:
Departmental heads monitor the training assigned by the trainers. After proper testing
and getting the recommendations of the trainer about the trainees, the departmental

heads does the evaluation of the training imparted. Assessment of effectiveness of

training of employees (staff members) is done on their Annual Confidential Reports.
Assessment of effectiveness of training imparted to (non-executives and workers) is
done on the Training Plan.
IV. Training records:
Training record is maintained in the HR Department. The HR Manager is responsible

for up-dating the training records of the employees.
These training records are maintained in the respective files till the retirement or
transfer of that particular employee.
All executives and staff are made aware of the departmental quality objectives and
role of their activities and their contribution in the achievement of objectives.
2.9.2.7. MAINTAINING APPRAISAL REPORTS:
Appraisal Report is assessment of employees which is done by head of department. At

the end of the year head of departments make the Appraisal Reports for each
employee (Staff only) working in their department. These appraisal reports then
forward to HR Manager who further manage these reports according to the remarks
which are given by the head of department about the employee. According to the
remarks record of employees are upgraded. Appraisal decides the percentage of
increment in pay of employees or for promotion. Report also decides whether
employees need any further training or not.
2.9.2.8. MAINTAINING THE RECORDS OF EMPLOYEES:
Managing the record of employees is also responsibility of HR Department. When the

employee is hired all of his data and documents are stored in a file and this file is
stored. Employee’s data is also stored in computer by assigning him with a computer
code. Now with the passage of time all new documents including training certificates
and appraisal reports are updated into the files of employees. Any employee’s file has
the same number which is computer code of employee.

2.9.2.9. ATTENDANCE SYSTEM
Attendance is made on daily basis at the main gate with entry and exit time
transferred to the HR department. Overtime attendance is taken by the supervisors of
the concerning department and conveyed to the HR department for the overtime
wages etc.
2.9.2.10. JOB ANALYSIS
Job analysis of every employee is made by the HR department with the help of
departmental managers and employee performance according to their job description.
2.9.2.11. COMPENSATION AND REWARD MANAGEMENT

SYSTEM
On the basis of the job analysis annual increments and promotions are given to the
employees twice a year. For outstanding employees special pay packages are offered
and rewards and given in different ways to the employees for their motivation.
2.9.2.12. LEADERSHIP STYLES
In Metro I observed two types of leadership styles that are: Autocratic leadership and
Democratic leadership. Autocratic style of leadership is observed in functional
managers while democratic style of leadership is observed in middle and corporate
level managers.
2.9.2.12. HEALTH AND SAFETY ISSUES
A proper system of health and safety is established at metro by providing the workers
with safety devices, trainings, and by providing proper uniforms. Metro Hi-Tec
provides medical and safety services to its employees in different ways.

3. OTHER WORKS CAUSED TO EXPERTISE ME DURING

INTERNSHIP
Apart from the before mentioned tasks .I worked on certain other assignments in GFC
as well as got to learn certain other works such as.
 I learnt the exact way of punching the documents. Because this to the first
thing that one who gets to learn while in an office as instead of abruptly
punching it one should first fold it and than keeping in line with the
middle of page one should punch.
 I learnt how the documents are filled and used to do a lot of filing.
 I went through typing certain application and letters.
 I worked how data is feed in the computers.
 I learnt how the phones are attended.
 I used to go to banks for obtaining the statements for settlement of

accounts.
 I passed daily entries in the Journal and ledger accounts.
 Documents relating to taxation purposes were also filled by me

4. OBJECTIVES OF STUDYING THE ORGANIZATION
a) To promote efficiency and effectiveness by providing competent and high-

caliber professionals in the area of Management Accountancy.
b) Identify the duties of the financial manager within the firm.
c) Understand why wealth maximization, rather than profit maximization, is

the firm's goal and how economic value added (EVA),
d) To analysis what plays the role of Banks with the Firm.
e) To estimate a firm's profitability relative to its sales, asset investment, &

owners ‘equity investment.
f) In fact, we have studied in GFC Private Limited Company because it is

committed to these following Business Principles.
5. THE BUSINESS PRINCIPLES OF GFC
A. Corporate Philosophy
Maintaining a global viewpoint, GFC is dedicated to supplying products of the

highest quality yet at a reasonable price for worldwide customer satisfaction.
a) Dynamic manufacturing and marketing of prestigious products to the

entire satisfaction of customers.
b) Create ideal working environment for continuous development of

product and personnel.
c) Provide adequate return to share holders and fulfill corporate civic

obligations.
B. Management Policy
a) Proceed always with ambition and youthfulness.

b) Respect sound theory, develop fresh ideas, and make the most effective
use of time.
c) Enjoy your work and encourage open communications.
d) Strive constantly for a harmonious flow of work.
e) Be ever mindful of the value of research and endeavor.
f) Respect for all – man has priority over others.
g) Man is the key in controlling i.e. machines, methods and materials.
h) Follow 3S spirit i.e. small, smart and speed.
i) Believe in 3A “GFC on Approach” i.e. be on Actual Spot, look at the

Actual Spot and confront the Actual Situation.
j) Be a good corporate citizen; assume a responsible role in community.
C. Priority Standards Of Conduct
a) Safety: There can be no production without safety.
b) Quality: To achieve the No.1 customer satisfaction, Metro is dedicated

to supply the prestigious products of its highest quality, through our
smart team work.
c) Productivity: With safety and quality each of it will strive to excel the
performance in all fields of its activities i.e. Production, Marketing &
Planning, After Sales Service, Finance, Logistics & Imports and Human
Resource & Administration etc.
D. Quality policy
To achieve the No.1 customer satisfaction, GFC is dedicated to supplying the

prestigious products of its highest quality through its smart team work defined by
the regulatory parameters & continually improving its strategies and goals for
better performance.

E. Environment policy
GFC (Pvt.) Ltd Gujrat (Pakistan), being responsible member of the society
considers the preservation of the global environment as a crucial concern. GFC’s
environmental philosophy is firmly based on the following guidelines:
a) Recognize the impacts of the significant aspects on the environment

resulting from activities, products and services;
b) Formulate objectives and targets to control the effects of activities on

local environment as for as technically feasible;
c) Operate in compliance with relevant environmental laws, regulations

and other requirements that apply to its activities;
d) Create environment friendly attitude among associates;
e) Commitment to continual improvement of the environmental

performance and review of the environmental management system to
ensure its suitability, adequacy and effectiveness.
F. Safety, Health and Environment
GFC (Pvt.) Ltd Gujrat (Pakistan) conducts its business responsibly and in a way to
make sure Health, Safety and protection from Environmental aspects of its associates
and the society. GFC implements and maintains the programs that provide reasonable
assurance that the business will do the following:
a) To comply with all applicable government and internal health, safety

and environmental requirements.
b) Design facilities and conduct operations in a way that avoids risk to

human health, safety and the environment.
c) To examine and communicate the known hazards of operations with

relevant health, safety and environmental protection information to
potentially affected persons.

G. Operating principles
a) Always keep the deadline.
b) Never make excuses.
c) Teamwork.

6. SUGGESTIONS
During the training I have observed number of problems and here are some
suggestions of my observations. G.F.C management has strong capability to increase
the production rate by reducing the cost of production. It can be achieved by investing
more in time span; research studies and reengineering related department structure.
Concluding points:
 In accounts department there is no well define job description. There must

be a list of duty for each employee.
 There is no management in working environment. They should adopt a

management functions in their department.
 Human Resource and Accounts department should hire at least two

employees more.
 In HR department, there must racks for files.
 Vision Statement is to long, it must be one or two sentences
 G.F.C still emphasizes on production concept
 There is very less monitoring so there is need to be tightening the control

by using digital monitoring system in account department.
 Local market of gujrat area can be captured
 G.F.C system is based on Microsoft window 98, so it should be upgraded

as in market window xp is available.
 MIS system should be very efficient that manual work can be eliminated.
 R&D department in G.F.C is not very much active so management should

have to investigate and invest more to overcome this.

 Every department should initiate research work that provides technical

support to find out hidden facts that are the primary source of
irregularities.
 Efficient employees and fresh management team with latest and modern
techniques and valuable exposure can figure out managerial problems.
 There is less commitment among the workers. To improve this situation

worker’s problems should be addressed properly.
 Top management should be awarded by stocks (shares) for getting more

efficient work and involvement in the organization.
 There must be proper uplifts and reward system for the encouragement of
employees.
 G.F.C has very few targeted markets they have to explore more to enhance
their profitability and worth.
 Salary packages are not very much attractive for the employees which
should be revised.
 G.F.C is doing well but it should add-up the doing good factor (Society’s
benefits). For awareness workshops and seminars should be conducted
regularly.
 Appraisal report should be prepared on merit rather than on personal

biasness.
 Up to date promotional strategies should be adopted (print and electronic

media).
 For selection of price and new consumers need, company should conduct
market survey.
 G.F.C is presently targeting only a small number of markets and there are
still a large segment of markets which can be explored.

 More the export the more the profit will be; because of this G.F.C can
enjoy a lot more profit than existing.
 G.F.C can easily expand its businesses through external debt because of its
already built credibility.
 By the reduction in cost of production G.F.C can enjoy the more profit
margins.
 If the employees discipline and control mechanism should properly apply

then it will results more involvement and output.
 By introducing more brands and designs by adequate use of R&D G.F.C

can grow more
 G.F.C still adopting production concept. There must be forward thinking
 G.F.C must investment in outside the business.
 Less monitoring or check and balance. There must be check and balance.

7. REFERENCES
 Director marketing (Nabeel Ahmad)
 Director Finance and Purchase (Ijaz Ahmad)
 General Manager Finance (Shahid-ur-Rehman)
 www.gfcfans.com
 www.google.com
 Chief Accountant(Muhammad Imran)
 Accounts Officer (Nasir Khan)
 Assistant Accountant (Mian Abdul Haseeb)

8. APPENDICES
 Job Description Form
Job title: ________________________________________
Summary description: _____________________________
_______________________________________________
Major tasks and responsibilities: _______________ _____
___ _______ ______________ ______________________
___________ ________________ ___________________
Minor functions: _ _______________ ___________ _____
_ ________________ ____ _______ ___________ ______
Supervised by & report to:____________ ______________
_ ________________ ____________ ____________ _____
Supervise:_ _______________ _______________________
Assist with other jobs:_ ________________ ____________
_ ________________ ___________ ________ ____ _____
Qualifications & training: ___ ____________________ ___
_ ________________ ___________ ___________ ______
_ ________________ ___________ ___________ ______
Skill requirements:___________ _________ ___________
_ ________________ ___________ __________ ______

_ ________________ ___________ ____________ ______
Experience: _________ ___________ _______ ___ ______
Personal characteristics required:__ _____ _____________
_ ________________ ___________ ________ __________
Physical requirements:__________ _______ ____________
Salary range: minimum:_____ ______ maximum:__ ______
Work hours: _____________ _______________ _________
Average hours: ___ _________ ____________ _________ _
Days off per week:_ ________________ ______ _________
Overtime: never: _______seldom: ________ often: _______
Other benefits:_ ________________ ______________ ____
________________ _______________ _________________
Work environment:_ _______________ ________ ________
_ ________________ ______________ ___________ _____
Safety responsibilities:_ ________ ________ ____ ________
_ ________________ ______________ ______ ________ _
_ ________________ _______________ _____ ________

9. CONTACTS OF INTERNEE & ORGANIZATION:
Internee’s Contacts Organization’s Contacts
Afzaal Ahmad S/O Muhammad General Fan Company, Private Limited

Inayat
Mailing Address: Mailing Address:
General Fan Company G.T. Road, Gujrat-

Pakistan.
Cell :+92-300-5448133 Telephone: +92-53-3520301-03
E-mail ID: Fax:
[email protected] +92-53-3521427-3515303
[email protected] Email:
[email protected] [email protected]


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Prepared By: Bahjat Ijaz

Roll No: 07021020-075

GFC (PVT.) LTD

of the requirement for the degree of the

MASTER’S OF BUSINESS ADMINISTRATION

Faculty of Management & Administrative Sciences

Under Roll No: 07021020-075

The Internship report of Miss Bahjat Ijaz

Prepared by: 07021020-075 Page 2 of 55

Faculty of Management & Administrative Sciences

Subject: Submission of Internship Report

I acknowledge with my cordial thanks the co operation & encouragement you

Roll No: 07021020-075

Prepared by: 07021020-075 Page 3 of 55

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Hierarchical Level Of Company _____20

Boards Of Directors _____21

2.1. Purchase Department 24

2.2. Inspection Department 26

2.3. Production Department 27

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2.4. Sales and Marketing Department 30

2.5. Research and Development 31

2.6. Internal Audit 31

2.7. Export & Import Department 32

2.8. Accounts Department 34

2.9. Human Resource Management 37

2.10. Field of Activity 37

4. Objectives of Studying the Organization 44

5. The Business Principles of GFC 44

9. Contacts of Internee and Organization 54

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degree requirements in HR department of GFC. There are several

departments working in GFC which include:

 Raw material inspection

 Sales and Marketing

 Research and Development

 Human Resources Management

 Export & Import

rotated to different departments in the last few weeks so that I may

understand the workings and collaboration of different departments.

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1.1. Brief History

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1.2. Main Competitors:

1.3. First mover advantage:

1.4. Our Core Values:

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1.5. VISION STATEMENT

A unique product which has been developed by G.F.C,

And no other country manufactures a pedestal fan like ours.

This product is most useful in the hot tropical humid climates.

We want to mark this product throughout the world,

And we foresee this product to dominate the entire International market.

We want to set up an excellent after-sales-service,

And spare parts supply service to each and every country.

We also want to set up home service centers throughout the world.