Fatima Group Diversified Set Of Business Units Commerce Essay

Fatima Group is a well-known company bring forthing industrial goods in Pakistan. The company has pursued conglomerate variegation by spread outing into diverse set of concern units. Fatima Group has been lending in the growing and development of the industries like Fertilizers, Textile, Sugar, Energy and other industrial commodities.1 The Company has invested vastly in the cardinal sectors of the economic system and is reinvesting the net incomes in large undertakings to excite and speed up the economic growing. Fatima Group is bring forthing industrial trade goods to deter inordinate imports and in return advancing the export exercise.2


Fatima Group has a diversified set of concern units which are:

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Reliance Weaving Mills Ltd

Reliance Weaving Mills was established in 1990 and is headquartered in Multan. The company is involved in the fabrication of narration and fabric weaving ; furthermore, it is involved in exporting the fabric to the states like USA, Middle East, China, Europe, Far East and other Asiatic countries.3 The company has carved a niche for itself in the fabric industry by diversifying into assorted types of narration and cloths. The company has purely set quality criterions to run into the specifications of export quality cloth ; it is in the best place to provide the majority demands with an confidence of unflawed finish and timely bringing of the ordered goods to its clients. The company has made immense investings in put ining the latest engineering to bring forth finest quality cloth in a cost-efficient manner.4

Company has carved a niche for itself in the fabric industry by diversifying into assorted types of narration and cloths. The company has purely set quality criterions to run into the specifications of export quality cloth ; it is in the best place to provide the majority demands with an confidence of unflawed finish and timely bringing of the ordered goods to its clients. The company has made immense investings in put ining the latest engineering to bring forth finest quality cloth in a cost-efficient manner.5

Reliance Commodities Pvt. Ltd

Reliance Commodities was incorporated in 1996 and is a celebrated exporter and importer of industrial trade goods linked with Fatima Fertilizer. The company has its ain state-of-the-art storage country at the oil installings country in Keamari, Karachi for molasses and warehouses for fertilizer.6

Pakistan Mining Company Ltd

Fatima Group has pursued backward integrating by diversifying into the excavation concern to mine stone phosphate which is used as a natural stuff for the production of fertilisers ; and the parent company has presently two fertiliser workss PakArab and Fatima Fertilizer.7 This attempt of locally mining natural stuffs for the production of compound fertiliser has reduced the imports dependence.

PakArab Fertilizer

Since its origin, PakArab Fertilizer has been the lone manufacturer of compound fertiliser. It was formed in 1972, in coaction with National Fertilizer Corporation and International Petroleum Investment Company. In 2005, it was privatized and acquired by Fatima Group and Arif Habib Group.8 The new direction brought enormous alterations in the organisation such that to forbear the works to let go of harmful emanations.

Fatima Fertilizer

The focal point of this study will be on Fatima Fertilizer. Fatima Fertilizer was incorporated in December 24th 2003, with the coaction of two major concern groups Fatima Group and Arif Habib Group. Fatima fertiliser possesses a to the full incorporate production installation at Sadiqabad Rahim Yar Khan, which is capable of bring forthing four types of concluding merchandises i.e. Urea, Calcium Ammonium Nitrate ( CAN ) , Nitro Phosphate ( NP ) and Nitrogen Phosphorous Potassium ( NPK ) . 9The production installation has 56MW power workss and the off-sites public-service corporations as good which includes houses for employees, school, medical centre and athleticss installation. The composite has been allocated 10 MMCFD of gas from Mari gas Fieldss. Fatima fertiliser is presently bring forthing 2.1 million dozenss of fertiliser in entire with a market portion of 17 % . The one-year production is as follows: 10

500,000 Metric dozenss of urea

420,000 Metric dozenss of CAN

360,000 Metric dozenss of NP

420,000 Metric Tons of NPK

Fatima Fertilizer Company is the first and the lone fertiliser bring forthing company which has been following Fertilizer Policy 2001 of the Government of Pakistan which encouraged development in this sector due to the inordinate demand of fertilizer.11


“ To be a universe category maker of fertilisers and accessory merchandises with focal point on safety, quality and part to the national economic growing and development. We will care for the environment and the communities we work in while go oning to make stockholders value. ” 12


“ To be the preferable fertiliser company for husbandmans, concern associates and providers through quality and service. To supply employees an exciting, enabling and supportive environment to stand out in, be advanced entrepreneurial in an ethical and safe working topographic point based on meritocracy and equal chance. To be responsible corporate citizen with a concern for the environment and the communities we deal with. “ 13


Fatima Fertilizer Company has a cardinal focal point on concern moralss ; the concern is run harmonizing to their codification of moralss and shared values of transparence in operations. The employees are expected to cognize the codification of moralss and are obliged to follow with ethical practices.14

The company has a sheer emphasis on prosecuting new thoughts and working on invention, research and development countries. 15

Teamwork is encouraged in the company within the sections every bit good as across the sections to make synergies.16

Customers are valued to a great extent as the company ‘s premier aim is to fulfill their mark market with its offerings and to supply them value through their merchandises. 17

Employees are the most indispensable plus for Fatima Fertilizer ; hence, the employees of the company are valued by supplying equal growing chances and extended preparation to broaden their skyline of cognition and accomplishments. 18

The company seeks to prosecute with providers who follow ethical codification of behavior and the Torahs and ordinances which guarantee environmental protection every bit good as the safety and wellness issues.19

Business Ethical motive

Fatima Fertilizer is highly peculiar about runing under the ethical concern patterns which are in conformity with the Torahs. The basic purpose is to carry on the concern as an environmentally responsible entity maintaining the wellness, safety and environmental issue in consideration. The company stresses upon the stakeholders holding complete cognition about company ‘s ethical criterions. Following are some of the ethical patterns that the company focuses upon: 20

Avoidance of every sort of unethical behaviour that can damage the trade name name.

The processs of the company are non to be disclosed in the market.

Exchange of any sort of gift is purely prohibited in the concern.

The act of bribing is out. If any stakeholder does so, the company will acquire to cognize through market intelligence.

Escape of company ‘s confidential information for any sort of personal addition should be prevented.


The production installation of Fatima Fertilizer is located at Sadiqabad, Rahim Yar Khan. The installation produces two intermediate products- Ammonia and Nitric Acid which are further used in the production of four concluding products.21 The current merchandises by Fatima Fertilizer that are ready to sell are:

Beginning: Fatima Group website 22

Beginning: Eqan Ali Khan, Engro Eximp 25Calcium Ammonium Nitrate is produced as granule fertiliser which is a solid signifier every bit good as in prillet signifier that is a liquid signifier. CAN is a compound fertiliser with a alone chemical science merely produced by Fatima Fertilizer. 23The Company is importing some sum of fertiliser due to the gas deficits. Fatima Fertilizer is bring forthing 2.1 million dozenss in entire with a market portion of approximately 17 % . The company is still under bring forthing due to gas shortage.24

Beginning: Eqan Ali Khan, Engro Eximp 26

Beginning: Fatima Fertilizer Annual Report 2011 27

The focal point of production is fundamentally in the Khareef season which has continuance of 1st April to 30th September. The of import harvests like cotton, rice, sugar cane are ploughed and harvested in khareef. During the season of Rabi, from 1st October to 31st March, fertiliser production is focused on nurturing of wheat. The merchandises offered by Fatima fertiliser under the trade name name of “ SARSABZ ” contain the foods that can speed up the growing of crops.28 CAN has a rapid consequence on the dirt and it enables the harvests to quickly turn. Similarly, NP possesses such chemical science of Nitrogen and Phosphorous that makes workss turn, strengthens rooting and encourages fruit production. One of the major strengths of Fatima Fertilizer is that it has uninterrupted licensed gas supply as the production composite has been allocated 110 MMCFD of gas from Mari Gas Fieldss. 29

The production composite located at Sadiqabad has a 56MW power works with extra public-service corporations. The composite is spread on 950 estates of land which includes houses for employees, school, medical centre and athleticss installation every bit good. 30


The merchandises produced by Fatima Fertilizer are most suited for dirt. Nitro phosphate, Calcium Ammonium Nitrate is good for the harvests and gives a good output to the husbandmans. These signifier of compound fertilisers are merely produced by Fatima Fertilizer and distinguish their merchandises from the competitors.31


Beginning: Fatima Group website 32

The organisational construction of the company is a functional construction that is divided by different sections of the company. All the sections of the organisation operate for both the companies- PakArab and Fatima Fertilizer except the finance section which is separate for both the companies and is headed by the main fiscal officer.33 Each of the section is headed by the group heads or managers.


The company is headed by the Board of Directors, HR commission and the Audit commission. There are eight BODs of the company including a president and the CEO itself. Out of the eight BODs, seven have been elected by the stockholders and one is a campaigner of National Bank of Pakistan.34 The function of BODs is to keep the involvement of all the stakeholders of the company reviews the overall public presentation, approves the budget and regulate the corporate aims of the company. The Chief executive officer implements the corporate policies as actions set by the board. The Audit commission consists of five of the members from board, who monitor the overall quality of the company ‘s patterns, performs the internal audit, coordinates with external hearers and operates the company in conformity with the legal requirements.35 The HR commission consists of four members from the board and is responsible for urging compensation and fillip schemes in conformity with the one-year budget of the company.



Fatima Fertilizer possesses a competitory work force, as their work force consists of extremely qualified every bit good as experienced employees holding a background with big multinationals or the forces had a good sum of experience with the direct rivals like FFC and Engro. 36


The company is concentrating on engaging the fresh alumnuss more as they invest a big sum of clip in engaging from the enlisting thrusts in universities. 37Fatima Fertilizer Company requires every bit good as prefers fresh blood to derive new advanced thoughts and is unfastened to alterations in the organisation harmonizing to the competitory concern environment. Fatima fertiliser does non avail services of caput huntsmans for deriving new employees alternatively the company has its ain enlisting bomber section under the HR section.


Similarly, a sub section of Training is besides operated under the HR section. Under the preparation section, full fledge preparation is provided to the employees. Now, to find the preparation demands of the employees, the demand analysis is performed by the preparation section and after placing the accomplishments and competences that are critical for success, a preparation plan is developed on an one-year basis.38 Following are the preparation plans conducted by the company in 2011 to heighten the cognition construction of the employees: 39

Leadership Grid

Management By Aims

Succession direction

Advanced preparation for MS Excel

Brand Matrix

High Performance Gross saless Management

Leveraging- Organizational and cultural alteration

Leadership- great leaders, great squads, great consequences


Performance assessments are done on an one-year footing with a co-coordinating attempt of the preparation and compensation section so that the preparation demands can be clearly identified for non-performers and the compensation is similarly developed for the employees. Compensation system in the company is wholly public presentation based. Wages are handled by the compensation and benefits section runing under HR section. Wages offered at the company are competitory with the rival ‘s basic salary.40 The fringe benefits and benefits at Fatima fertiliser include free medical: the company gives monthly allowance of medical to its employees and along with that it has opened up a dispensary for the employees, nomadic policy at managerial degree, company auto policy at managerial degree and one-year fillips. Competitive fringe benefits are offered to the employees working in the operations section in Sadiqabad as it is highly hard to retain employees in such an country, hence to actuate them company has provided the Sadiqabad composite with the basic installations for employees and their households which include houses, school, athletics composite and medical centre. 41

The company performs rival analysis excessively when make up one’s minding the compensation programs. The one-year assessments are performed harmonizing to the aims, marks achieved, developing strong web with traders every bit good as efficient web with retail merchants is highly of import for the forces in gross revenues section. This web should be 80 % active to be competitory. 42

The undertaking of communicating is done along with assessments in which the employees responsible for it reports the HR caput sing the one-year assessments, communicates the feedbacks of direction and sometimes the employees take enterprises to fix studies and manuals for the company.43


One of the most critical issues confronting HR sections is the demand to back up the concern by cut downing costs through increased efficiency and higher productiveness. As such, HR must go a strategic concern spouse and seamster its functional activities to positively impact the bottom line. For this purpose Fatima Fertilizer has implemented the Service Delivery theoretical account. This section is a new add-on to the Human Resource section It follows the multi-tiered theoretical account of service bringing which has three basic components:44

Centers of Excellence

Business Spouses

Service Delivery

The HR Service Delivery Team operates at the intersection of the proficient and functional universes and provides a systematic and comprehensive attack to shaping: 45

What services are offered

Who will back up the services

How will be they delivered

When will they be offered

Where will they be located

It plays a critical function in take downing the administrative load of HR and allows it to concentrate on more strategic issues. It leverages economic systems of graduated table by streamlining procedures, therefore ensuing in: 46

Lower costs

Increased productiveness and efficiency

Less duplicate of resources

Its chief aims include: 47

Enabling HR to concentrate on strategic issues:

Fring the map from everyday undertakings enables HR to concentrate on strategic ends taking to concern and organisational betterment.

Improved service quality:

Efficient/simplified processes aid in presenting seasonably and accurate solutions to employees.

Improvement in pull offing human capital and communicating between HR and the concern units enabling more knowledge-sharing and continued procedure betterment.

Decrease in operation costs and betterment in procedure efficiency by:

Extinguishing duplicate of work

Consolidating, Standardizing, and Automating procedures.

Beginning: Fatima Group Internal Source 48Connecting – Peoples, Process and Performance


Service Delivery



Beginning: Fatima Group Internal Source 49

Components of the HR Service Delivery Model


The Human Resource Information System ( HRIS ) is a package or on-line solution for the informations entry, informations trailing and informations information demands of assorted departments50. At Fatima Group Oracle is used for this intent. HRIS provides overall: 51

Management of all employee information

Reporting and analysis of employee information

Benefits disposal including registration, position alteration and personal information updating.

Complete integrating with paysheet and other company fiscal package and accounting systems.

With Oracle, HR enables employees to make their ain benefits updates and reference alterations therefore liberating HR for more strategic maps. Additionally informations necessary for employee direction, cognition development, calling growing and development and equal intervention is facilitated. Finally, directors can entree the information they need to lawfully, ethically and efficaciously back up the success of their coverage employees.

Centers of Excellence ( COE )

The HR Centers of Excellence are the HR sections, where the existent experts work and plan new HR processes for the organisation. The HR Centers of Excellence besides keep the HR processes running and they implement the alterations into current HR procedures as they collect responses from the users of the HR processes.52

The success of Human Resources depends on the consequences of Centers of Excellence. The HR Centers of Excellence have to be in contact with the external market and they have to supervise the tendencies in HR Management as they can convey the cognition in the house and they can implement the best patterns suited for the organization.53

The HR Centers of Excellence are organized around the expertness they are concentrating on. Following are the COE ‘s at Fatima Group: 54

Recruitment and staffing

Compensation and Benefits

Training and Development

Organizational Development

HR Business Partners

The Human Resource section participates in strategic planning to assist the concern meet present and future ends. Rather than concentrating entirely on HR responsibilities such as benefits, paysheet and employee dealingss, HR departments seek to add value to the company by supervising recruiting, preparation, promotion and arrangement of new and current employees.55

HR concern partnering is a procedure whereby HR professionals work closely with concern leaders and/or line directors to accomplish shared organisational aims, in peculiar designing and implementing HR systems and processes that support strategic concern aims.56 This procedure may affect the formal appellation of the ‘HR concern spouses ‘ that is HR professionals who are embedded within the concern, sometimes as portion of a wider procedure of restructuring of the HR map.

The concern spouse relieves force per unit area from direction to hone employee occupation accomplishments for efficiency and productiveness, every bit good as identifying, developing and preparing cardinal employees for advancement.57HRBP is besides responsible for analysing employee reappraisal informations which allows it to acknowledge strengths, which they may farther develop to put employees more efficaciously and besides placing failings which they may rectify with farther occupation skill preparation or disciplinary action.

HR Service Center

The HR Service Center is cardinal to the bringing of the function of HR as administrative expert. It provides focussed administrative excellence that ‘s thrusts fiscal efficiency and HR credibleness through the quality of its end product ‘getting the rudimentss right, every clip ‘ . Whereas the COE is able to supply the focal point for the concern expert cognition on HR, the HR Service Center provides a focal point for efficiency. 58The service is delivered through multiple channels, to do certain everyone has entree to it, when and for what they need it.

The construct of HR Service Center rests on three rules: 59




Entree to HR Service

Beginning: Fatima Group Internal Source 60

There are four degrees of entree to HR services:

Flat 1:

As cardinal clients it is anticipated that both directors and employees will entree the bulk of HR services via web enabled systems ( HRIS ) . This is referred to as Level 1 access.61

Flat 2:

Degree 2 refers to entree to the Employee Service Center. This will offer two degrees of service.62

The first degree 2a offers information on transactional procedures and general policy advice and counsel. They will besides offer a Customer Support Service 2b that will supply specialist advice on more complicated HR questions that require greater degree of judgment.63

Flat 3:

Degree 3 refers to the HRBP community. This squad will be strategic spouses working with the concern to drive through alteration and present public presentation. 64Any HR questions that can non be answered through the first two degree of support will be referred to your concern spouse community or where a question will hold important people implications the HRBP may have the question straight.

Flat 4:

Finally flat 4 HR support will be provided by Centers of Excellence in corporate HR. This service will be accessed by the HR community looking for adept advice for the concern on legislative policy issues. Merely 1 % of all HR issues are anticipated to make this level.65

Service Delivery Structure

Beginning: Fatima Group Internal Source 66

Selling Department

The selling services section headed by manager selling ( Mr. Zahir ) and is immense in footings of undertakings performed by the section. Following are the sub divisions of the selling services section at Fatima Fertilizer: 67

Beginning: Fatima Group website 68


In the stigmatization division handled by the selling services section, several undertakings are performed. It is headed by Mr. Waqas. After the analysis of the selling section, it was found that Fatima Fertilizer pays strict attending to its stigmatization. Majority of the stigmatization undertakings are outsourced by the company.69 The cardinal maps handled under the stigmatization subdivision are:


There is no R & A ; D section in the company as the fertiliser industry is non a technological industry. However, the company avails the market research for trade name edifice and deriving the consumer penetrations. The market research activities are outsourced to the selling research houses which include AC Nielsen and JWT which conducts different studies for the company to estimate the consumer penchants and other of import factors for the merchandise ‘s success.70

MEDIA Planning

ATLs & A ; BTLs

Lapp as the market research, media planning is besides outsourced by Fatima fertiliser to Mindsquare bureau which develops telecasting ads for their merchandises, plans strategies offered to the husbandmans and conveys it through aggressive advertising.71 JWT designs Point of Purchase stuff and literatures for the company along with the printing of the literature.

The media be aftering includes all the ATLs and BTLs designed for the trade name edifice of Sarsabz. Above the line advertisement for Fatima fertiliser includes telecasting advertizement and the media contrivers focus on the Television ads the most as the mark market is uneducated and it makes more sense to advance the merchandises through visuals which the mark market can easy understand. 72Still the media planning section is confronting troubles in communicating the benefits of the merchandises to the husbandmans. Below the line advertizements include literatures for publicity of the merchandises. Fatima fertiliser has assorted literatures conveying the benefits and use of its merchandises and how can it be good for specific harvests and more significantly the literatures are printed in Urdu which is appropriate harmonizing to the demographics of the mark market.

Gross saless

Beginning: Fatima Group website 73

Beginning: Fatima Fertilizer Annual Report 201174

Divisional Districts

The gross revenues construction of the organisation is divided into three zones: South zone which includes 10 parts and the metropoliss like Hyderabad, Sakhar and Rahim Yar Khan ; Central zone which once more is divided into 10 parts and includes the metropoliss like Multan, D.G. Khan and Bahawlapur and the 3rd zone is North zone which includes Lahore that is farther divided into 4 parts harmonizing to the demand, Sahiwal, Faislabad and Peshawar. Each part consists of 57 gross revenues territories and one gross revenues territory is tantamount to one political district.75 The District director is existent adult male working in the field and interacting with the market. Covering with jobbers is discouraged by the company as they undersell the merchandise which hurts the trade name image84. The District directors are responsible for: 76

District Gross saless

For developing a strong trader web

Pull offing warehouses

Keeping up to day of the month with the rivals activities for that territory


The company does non cover in hard currency ; the company merely accepts wage orders or bill of exchanges as payments. Monthly marks are given to the District Managers ; Traders issue orders in the signifier of wage order.77 This is handled by the Order Management section from the Planning section. If the order is placed on the warehouse, it is straight transported to the traders. In the other instance, if the order is non available at the warehouse and it is for the works, so it is transferred to the District Manager and he further transportations it to the Head Office in Lahore.78 This procedure of order pickings is computerized and is performed through the Enterprise Resource Planning system. The company is non accountable for the transit costs and they are paid by the clients.


The pricing of Urea is unvarying throughout Pakistan i.e. Rs. 1650/ bag. Although Fatima Fertilizer has priced its merchandises expensive from the rivals as they are differentiated. However, these expensive merchandises merely include Sarsabz CAN and Sarsabz NP that are merely produced by Fatima Fertilizer. Other than the fixed cost, the entire merchandising monetary value includes the variable costs excessively, which vary in footings of the cargo charges. The merchandising monetary value fundamentally incorporates the Ex- mill monetary value and the cargo charges, depending on the bringing location.79


During the field work done, it was found out that Fatima Fertilizer concentrates to a great extent on their promotional activities. The implicit in ground found behind this was that the trade good offered i.e. fertiliser is a low distinction merchandise and the mark market of the company is husbandmans and unsweet C who have either minimum or no instruction. Therefore in order to efficaciously pass on the benefits of the merchandises to that category, the company has devised a clear scheme that is apprehensible to that category. Their extended focal point is on the printing of the literatures as the husbandmans can easy derive entree to the literatures and read through the benefits of utilizing merchandises offered by Fatima fertilizer.80 Monthly publicities are prepared harmonizing to the market demands, rival ‘s actions every bit good as the company ‘s scheme. All the planning of the promotional activities is outsourced and is handled by the selling department.81

Supply Chain Department

The basic map of the supply concatenation section is to pull off repositing and bringings of the merchandises ; so they can add extra value to each of the undertaking. The major undertaking of distribution performed by Fatima Fertilizer Company is divided into two sections that are elaborated below:

Beginning: JS Research 82


One of the constituents of distribution is pull offing the warehouses. Fatima fertiliser has maintained a sum of 95 warehouses all over the zones. By estimating the country potency of each district the concentration of warehouses has been determined by the company. Fatima fertiliser has an intense distribution of warehouses as they perceive it to be an indispensable manner of accomplishing operational efficiency.83The works at Sadiqabad fundamentally has a limited storage capacity and the stock list can non be stored at the location after a certain degree, therefore the company has immensely expanded its base of warehouses. The Sadiqabad works is at a long distance from the two zones, so there is a immense restriction of transit and lading the inventory.84 However, in order to extinguish these hinderances, they have a broad spread of warehouses to run into the orders of clients in clip. The pattern of increased repositing enables the fiscal efficiency to increase.

The other constituent of distribution is to straight present from the Sadiqabad works. The orders of retail merchants and whole Sellerss that that are already available at the works in footings of measure and type of fertiliser, is straight transported to the client ‘s location. In instance of faulty bringings. The District directors fundamentally prefer to sell Urea near the works country. The ailments are received by the District directors and are transferred to the Head office for farther rectification. One of import fact is that the company performs steps to minimise and forestall the stock list from wet or any sort of harm in the monsoon season. 85

Quality Control Department

The quality control section examines both the workss Fatima and PakArab. The company is ISO 2001 certified. Regular quality cheques are performed on the works to guarantee the merchandise quality every bit good as the safety of the workers at the works. 86If the merchandises are found faulty or defected, they are sent to the caput office for review by the quality control section and farther are sent to the works for rectification and replacing.

Audit Department

The cardinal maps performed at Fatima fertiliser by the Audit section are: 87

Inspection and checking at the warehouse for processs

The Audit section prepares the audit studies and nowadayss it to the top direction.

Channel Department

Fatima Fertilizer is acute to develop long term relationships with their providers every bit good as the ultimate consumers. For this intent, they have programs to develop a new section “ Channel Department ” ; which will be headed by the Channel Manager ( Mr. Aneel Zia ) . The chief intent to put up this section is to develop channel trueness plans for traders in order to derive the trade name trueness. 88The company wants to now concentrate on set uping highly good relationships with their clients and hence, customer- provider familiarity is highly of import to the company.

The company is besides be aftering to develop a call centre for giving advises to husbandmans sing the use of the merchandises, work outing their leger issues and replying their bringing jobs.

Corporate Communication Department

This section T is headed by Mr. Ali Nasir. All corporate proclamations, publication of the Sarsabz magazine and internal and external communicating, societal media is handled by this section. Fatima Group takes its corporate societal duty really earnestly and has taken several enterprises. The direction of those besides comes under this division.89

Corporate Social Responsibility

Fatima Group works diligently for the community ‘s public assistance and realizes that it has a major function to play in lending to the national economic system so that it can further spur the society ‘s growing. The company follows specific set of CSR activities which includes: puting up of a dispensary for the employees, ensures environmental and employee safety, supported the inundation victims by supplying relief goods and more significantly the company is undergoing a undertaking to construct up a small town with 50 houses near Muzaffargarh, a medical centre constructed for the safety and inoculation of the employees at the works site and hard currency parts to assorted educational webs for supplying instruction to underprivileged children.90


Organizations all over the universe are now looking to spread out and re specify the function of HR by taking new enterprises, reengineering cardinal procedures, using new theoretical accounts and refocusing the function of concern spouses. This altering position of organisations has reaped them a batch of benefits. This thought has been researched and explained in item by Towers Watson in the research it conducted on service bringing.

“ Consequently, the top enterprises undertaken by HR over the last 18 months, reengineering cardinal procedures, refocusing the function of HR concern spouses, and implementing and leveraging self-service- have supported the larger end of enabling HR to rethink and redesign its ain function, ideally conveying greater strategic value to the concern. “ 91

Organizations all about now do n’t merely look at cost efficiency instead they are concentrating on scheme. They are detecting new ways to present their services. These include streamlining of procedures, outsourcing, constructing service bringing maps and debut of new technological tools. Technology now plays a really critical and of import portion in assisting organisations achieve their strategic ends. It is imperative in edifice shared services organisations.

“ We are seeing a displacement from organisations throwing old engineering at jobs to looking at flexible new engineerings that leverage self-service and shared services maps, deliver more streamlined capablenesss and robust analytics, and form bing systems around heightening HR service bringing more loosely. “ 92

Firms have woken up to recognize that engineering has now evolved to go a critical strategic support for all of HR. It helps to present the procedures non merely expeditiously but besides efficaciously. This new mix of HR and engineering has resulted in greater receptivity of organisations to engineering which makes it more powerful than earlier.

“ Once-discretionary HR engineering disbursement is now a needed-to-play outgo and far less capable to decrease when the economic system turns. “ 93

The position is now to look at more flexible engineerings that empower service bringing maps, provide streamlined procedures and robust analytics and forming the already bing systems around this new theoretical account. This new holistic position has made organisations view investing in engineering a necessary thing alternatively of looking at it like an excess cost.

The findings in the article harmonizing to me are spot on looking at the altering position of organisations. This is true for developed states but organisations in Pakistan are besides seeking to follow this. HR Service Delivery has now become an of import portion of HR and engineering moves manus in manus with it. One point the article has non emphasized on demands before recommending this whole thought is that non all organisations are able to switch to this theoretical account of HR because it is a long procedure which needs clip and relentless attempt. Besides houses need to understand their organisational construction before they move frontward with this.

Supporting the above statement sing altering HR functions and engineering is another research done by Towers Watson.

“ The universe of service bringing and engineering is possibly the most ever-changing in the industry of human resources. Our ends and timelines are most frequently measured in hebdomads and yearss ; our border for mistake is nonexistent. “ 94

As organisations embrace the new function of HR, they now need to be really efficient and effectual in what they do. The Service degree understandings ( timelines ) they need to follow are now going shorter and due to that the room for mistake is really little. The other side of the image is that the consequence of the work done is besides instantly realized and that is because of the engagement of engineering in HR.

“ HR engineering disbursement remains steady and strong and investings are directed largely toward growing and new functionality. “ 95

This statement confirms the fact that now organisations are willing to put their money in engineering as they now see it as an plus alternatively of an extra cost. This investing has been steady over the past twosome of old ages particularly in mature houses as they understand now that in order to remain in concern and spread out their capablenesss they need to make this.

“ As new options emerge for efficaciously and expeditiously presenting HR services, organisations are including HR construction alterations in the range of possible accommodations. “ 96

“ Shared services is emerging as the most valued ( and most prevalent ) pattern for presenting HR services to the concern, though single-process outsourcing remains a stabilising force. “ 97

HR has been a stable country for some old ages but now the alteration is coming. More and more organisations are traveling towards following the new function of HR. Harmonizing to the article this alteration is because of two forces: pull and push. The push force comes in the face of technological promotions. In order to maintain gait with the progressing universe houses can non afford to disregard the altering engineering. The force per unit area to work expeditiously and efficaciously pushes them to implement engineering in the HR map. Besides holding the same HR maps over a twosome of old ages puts the organisations at hazard of losing chances. Software as a service is the new thing being used in the Service Delivery.

To back up this alteration the HR construction besides needs to be changed. There is more demand of expertness and specialised services like Centers of Excellence and Business Partners. Shared services give organisations the ability to be more flexible so they can react to alter rapidly and besides greater quality control. Some companies who do non hold specialized expertness are traveling towards outsourcing of these maps which make it cost effectual for them

The article has done a good occupation at summing up the altering tendencies of companies and their HR sections. If companies manage to alter their HR construction merely so they are able to properly implement the new theoretical account of service bringing. If non so they have the option of outsourcing these countries. If we look at Pakistani companies, service bringing is still a new phenomenon here and attempts are being made to implement it in the HR map. One dorsum draw is that HR outsourcing is non really common and due to the newness of the whole HRSD theoretical account companies can non outsource these maps.

Implementing new theoretical accounts and reconstituting the HR is non without troubles. Organizations have to confront legion jobs during the procedure and success is non guaranteed in the terminal.

“ There are many possible attacks to HR service bringing. The multi-tiered HR service bringing theoretical account is by and large regarded as the best pattern attack to service bringing. “ 98

The first issue that organisations need to screen out is what sort of service bringing theoretical account do they desire to implement and which matches their organisation.

“ Inefficient service operations can ensue from a deficiency of clearly defined service bringing best patterns every bit good as a continued trust on manual, paper-based HR processes. “ 99

When houses do non hold a set of clearly defined service bringing patterns and policies, that so leads to an inefficient service bringing section. This leads to internal employees holding a assorted set of experiences with the section which would finally take to low satisfaction degrees with the service.

“ Another potency cause taking to inefficient service operations is dispersed and unaccessible HR cognition. “ 100

This job works two ways ; both employees within the organisation and HR tend to confront it. When functions and duties are non clearly defined within the Service Delivery, employees do n’t cognize who to reach in instance of any job. Besides at times proper information is non available within the HR and when an employee comes to them with a grudge they do n’t hold the information.so it is really of import that organisations decently define the functions and duties of each and every individual within the service bringing section.

Traveling on, one of the biggest force per unit areas faced by houses is the cost of service bringing. If it does non work expeditiously so the costs for the organisation is increased. The whole thought of the service bringing section is to streamline the procedures and salvage costs for the house. If they are non able to make that so organisations can bury their end of being cost efficient. This plus ill-defined duties end up blowing the expertness and accomplishments of employees as explained below in the research:

“ HR service bringing costs are amplified when an organisation ‘s resources are non decently utilised, go forthing higher-paid HR specializers to reply basic employee enquiries alternatively of concentrating on more strategic enterprises that would profit the organisation ‘s bottom line. Conversely, HR generalists with accomplishments better suited to deciding basic enquiries waste clip and energy seeking to decide issues that should hold been escalated to a specializer. “ 101

This paper is one of those few which really take into history the jobs which are and can be faced by organisations when traveling towards a service bringing theoretical account.

As mentioned above one of the best theoretical accounts of HR service bringing is the multi-tiered attack. Barbara Levin supports this statement in her article by explicating legion benefits of this theoretical account and how it transforms HR. One of the biggest advantage of this multi- tiered attack is it is low cost and uses fewer resources. More accent is put on the tier 0 of the theoretical account where more than 60 % of the enquiries are sorted out by the employees themselves.

“ The multi-tier attack helps cut down escalations to HR experts by more than 70 percent – liberating endowment to take on more value-added undertakings. “ 102

Software as a service plays an of import portion in enabling the employee finish their ain minutess and salvaging clip and money.

To make to the success organisations have to confront jobs besides along the manner. Barbara Levin negotiations about the issues faced by organisations which fundamentally support the above survey. Harmonizing to her the portals are looked upon as one of the tools without many jobs that make the service bringing map work but this is non wholly true.

“ Most HR portals are heavy on self-service minutess, but light on the communications and determination support tools required to finish minutess. Most portals do non hold a individual interface to entree HR information – nor do they hold a individual sign-on that makes them easy to utilize. “ 103

Due to the above mentioned jobs the employees might merely halt utilizing the portal and the tier 0 of the theoretical account might merely fall in doing the remainder of the degrees shaky.

When implementing this theoretical account sometimes certain countries are ignored which can ensue in no benefits, higher cost and clip being wasted. The critical factors to be looked at are:

“ Standardizing common HR processes including specifying a incorporate procedure around HR service bringing. “ 104

The initial measure should be the standardizing and harmonizing of all the HR procedures from all locations or concern units into one to be used throughout the organisation. This procedure can be really clip consuming and a representative has to be chosen from every location that can standardise the procedures. A demand may originate to develop a new criterion procedure for the service bringing section.

“ Identifying the right persons to make full functions in each grade and specifying their duties and public presentation ends ” 105

This statement supports the above research that if proper functions and duties are non defined and to the right people so the bringing theoretical account will non work. Apart from the which so makes him a good campaigner for higher grades like concern spouses.

“ Measuring Cardinal Performance Indicators and utilizing them to better the service bringing theoretical account. “ 106

“ The multi-tiered concern theoretical account has HR concern spouses, COE ‘s and shared services. While this theoretical account has improved HR public presentation, transcending the capablenesss of a theoretical account in which HR services are aligned strictly functionally, it has non enabled HR to run into the of all time increasing outlooks of concern leaders or to the full support concern demands. “ 107

“ Traveling to a following coevals HR theoretical account can significantly profit organisations. High impact HR organisations go far beyond the proviso of low cost service to concentrate on activities that really strengthen concern public presentation, such as constructing leading accomplishments, making a best topographic point to work or promoting coaction and employee authorization. “ 108

“ In organisations that adopt the following coevals HR theoretical account, much of the staying transactional work that resides in COEs will switch from the COE to Shared Services or to external spouses. “ 109

Industry Analysis

Agricultural Sector and the Fertilizer Industry

Beginning: State Bank of Pakistan 10Agricultural industry is considered to be the economic anchor in Pakistan. However, from the past few old ages, the economic system has experienced a displacement from strictly agricultural driven economic system to services based economic system and industrial economic system every bit good. Still agricultural sector has been able to lend towards the overall GDP and account a good sum of portion to the economic system. Furthermore, this sector will non merely be sustained but continue to turn as some of the major industries are based on the supply of natural stuffs that are driven from the agribusiness sector. Similarly the fertiliser industry is wholly based on the growing of agricultural sector. 111The focal point of this sector would go on to boom the fertiliser industry. In the past few old ages, Pakistan ‘s agricultural industry has suffered enormously due to unfavourable conditions conditions which lead to devastation of harvests.

Beginning: IFA and FAO 112 However, authorities has been back uping to regenerate the system and better the agricultural public presentation through supplying subsidies to the husbandmans every bit good as inducements to the fertiliser industry.

Beginning: NFDC and SBP 14Giving a macro position, there is an extra demand of fertilisers in the state and the current entire production is still unable to provide to the entire demand which indicates that there is a large window of chance for this sector to develop. Initially there was a low incursion of fertilisers holding limited options of urea merely, but the big participants are availing the chance window and perforating the fertiliser merchandises to distinguish themselves. Therefore, the growing in agribusiness sector is positively related to the ingestion of fertilisers. 113Government has been able to promote the makers to increase the fertiliser production by supplying the feedstock gas subsidy which lower the production costs of the makers and farther additions their profitableness figures.


Pakistani fertiliser industry has an oligopolistic construction as there are five chief participants in the industry. The industry growing rate is presently 8 % and the entire market demand of fertilisers is estimated about 6.4 – 6.5 million tons.115 The larger houses are fundamentally the monetary value compositors in the industry. The addition or lessening in rivals extremely affects the pricing scheme of the fertiliser companies. The big participants of the industry include:

Fauji Fertilizer Company Ltd.

Engro Chemical Pakistan Ltd.

Fatima Fertilizer Company Ltd.

Dawood Hercules Chemical Ltd.


Fertilizer Policy 2001 ( LEGAL )

Fatima Fertilizer is the innovator and the lone company to implement the Fertilizer Policy 2001 which provided it with enormous benefits and inducements. The chief intent of this policy was to back up the fertiliser manufacturers with some benefits.118

Government has provided subsidy on the production of imports of fertilisers. The company is already importing to provide to the demand ; this can besides move as an chance for the company.119

The supply of provender stock gas from the authorities for the production of Urea was besides one of the major factors of fertiliser policy. 120

Tax inducements were besides provided by the authorities under this policy.121

For the production of Nitro phosphate, the phosphate stone is either mined by its subsidiary.122

Pakistan Mining Company or it is imported. Therefore, the authorities does non bear down any custom responsibility on the imports of such natural materials.123

Gas for capacity enlargement intents has been stored to carry through the demand for 7 years.124



Fauji Fertilizer is the market leader geting a portion of more than 40 % in the production of urea. It has a apparatus of the universe ‘s largest carbamide works in Dharki. Its major urea merchandise is Sona urea, presently selling at Rs.525/ bag. FFC possesses 3 workss in entire ; two are located in Goth Machhi and one in Mirpur Mathelo. The three concluding merchandises sold by the company are Sona urea, Sona DAP and Sona SOP.127


Engro Chemicals is the 2nd largest urea manufacturer in Pakistan and produces merely a individual merchandise i.e. urea. The entire one-year production of urea by Engro is about 2.1 million dozenss. Engro has presently priced its Urea for approximately Rs. 750/bag. Engro fertiliser has gained about more than 21 % of the market portion. The concern is operated through two works installations one in Bin Qasim Karachi and the other in Dharki Sindh which is the largest production works of ammonium hydroxide. The merchandises offered by Engro include Engro urea, Engro Zorawar, Engro Phosphate, Engro NP, Engro DAP, and Engro Zarkhez.128


Dawood Hercules is the minor participant in the industry with a production capacity of 500,000 dozenss. The works has increased its capacity throughout the old ages by 155,000 metric dozenss. Its works is located in Dawood Khel. Dawood Hercules produces urea under the trade name name of “ Bubber Sher ” . The company gained a portion of 8 % in the market. 129The company ‘s primary focal point is to guarantee safety of the environment and was the first fertiliser maker to be ISO 9000 certified.


Fatima fertiliser is the lone company that is being operated in conformity with the Fertilizer Policy 2001 which fundamentally provides inducements to the fertiliser makers for uninterrupted investing in this sector. Fatima fertiliser is the last entrant of the fertiliser industry ; still it has been able to derive a market portion of 17 % . 130The merchandises of Sarsabz are expensive as compared to the rival ‘s pricing which can be a drawback for the company. However the differentiated merchandise and its benefits justify the pricing.131

Beginning: Company studies and NFDC 32


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