Usman Sarwar f10-147Sajawal Awais f10-123Jehanzaib Aslam f10-045Ashraf f10- 069

Subject: Management Practices

Submitted to: Sir Khurram Shehzad

System in business

Table of Contents

Sr. no Contents Page no.

1. Introduction……………………………………………………………... 012. History……………………………………………………………………. 013. Departmentalization……………………………………………………. 024. Chain of Command…………………………………………………….. 025. Span of Control…………………………………………………………. 036. Centralization/Decentralization………………………………………. 037. Organic Organization…………………………………………………... 038. Swot Analysis……………………………………………………………. 049. Social Responsiveness……………………………………………….... 0410.Tetra Pak’s culture……………………………………………………….. 05

i. Dimensions of Tetra Pak’s Culture……………………………… 05ii. Attention to Detail…………………………………………………. 05iii. Outcome Orientation……………………………………………… 05iv. People Orientation………………………………………………… 05v. Team Orientation…………………………………………………. 06vi. Aggressiveness……………………………………………………. 06vii. Stability…………………………………………………………….. 06viii. Innovation and Risk Taking………………………………………. 06

11.HR processes and Practices…………………………………………… 06i. HR strategy and alignment……………………………………….. 06ii. Recruitment and Selection……………………………………….. 06iii. Orientation………………………………………………………….. 07iv. Internal Communication…………………………………………… 07v. Training and Development……………………………………….. 07vi. Employee Motivation………………………………………………. 07vii. Employee Evaluation and Assessment…………………………… 08viii. Performance Appraisals……………………………………………. 08ix. Coaching and Mentoring…………………………………………… 08x. Compensation and Benefits………………………………………… 08xi. Growth Opportunities and succession Planning…………………. 08

12.Recent News………………………………………………………………… 0813.Conclusion……………………………………………………………………. 0814.References……………………………………………………………………. 09

Tetra Pak

Introduction:

Tetra Pak is the quite old and most trusted packaging company of Pakistan. Starting its operations in 1982, the company has grown from strength to strength over the last 21years. Packaging of a high standard of products is enriching the lives of millions with all the goodness of nature for a healthy life style. Today, the Tetra Pak continues to grow. It is reaching to more and more companies for packaging with the passage of time. This means that Tetra Pak's customers enjoy the advantage of being able to get multi-product solutions from a single source, with matching equipment at every stage.

History:

Tetra Pak is a Swedish industrial company. It was founded in 1951 in Sweden by Ruben Rausing and Erik Wallenberg.

Tetra Pak's first product was a revolutionary paper carton used for storing and transporting milk. Rausing had been working on the design since 1943, and by 1950 had perfected techniques for making his cartons fully airtight, using a system of plastic coated paperboard. These initial cartons were tetrahedrons, leading to the company's name. In 1963 the company introduced Tetra Brik, a rectangular carton.

Ruben Rausing's son Hans ran Tetra Pak from1954 until 1985, taking the company from a seven-person concern to one of Sweden's largest corporations. Before his death in 1983, Ruben Rausing was Sweden's richest person. Tetra Pak is the world's largest supplier of cartons and bottles for milk, soup, fruit juices, and other liquid products, and the company also manufactures machinery used for food packaging. In 2002 it employed over 20,000 people.

Departmentalization:

“The basis by which jobs are grouped together”

Functional departmentalization Geographical departmentalization Product departmentalization Process departmentalization Customer departmentalization

Tetra Pak uses Functional Departmentalization. In Tetra Pak, jobs are being divided According to the function they perform.

Chain of Command:

There are three things in chain of command for Tetra Pak. Tetra Pak uses Authority that gives right to the top management what they tell the people to do and what they expect from them. Then comes Responsibility, now after getting decision from the top managers, it is the duty of all employees to perform their assigned tasks. Then comes Unity of Command, The first line manager reports to middle manager and middle manager further reports top manager.

Chain of command of Tetra Pak

Span of control:

“It refers to the number of subordinates a supervisor has”

As there is unity of command there is narrow span of control in Tetra Pak. Narrow span of control is suitable for Tetra Pak. Each manager has maximum of four subordinates under him/her.

Span of control of Tetra Pak

Centralization/Decentralization:

In Tetra Pak there is a concept of centralization and decentralization. On international level decisions are taken by top management which is further applied on all Tetra Pak factories but domestically, management of the specific country take some decision by itself.

Organic Organization:

“An organization design that is highly adaptive and flexible”

Tetra Pak has organic structure because of its extremely dynamic environment. There is a high work specialization, low formalization and they change rapidly as there is a need.

DIRECTOR

G.M.PRODUCTION

G.M.ACCOUNTS

G.M.MARKETING

MANAGERPRODUCTI

ON

MANAGERQUALITY

&CONTROLPRODUCTION SUPERVISOR

PRODUCTION SUPERVISOR

Employees are highly trained to handle all kinds of tasks assigned to them. There is high decentralization. Cross functional team perform certain duties of the organization.

Swot analysis:

Strengths:

Monopoly in Pakistan It is getting ISO 9001 and ISO 14001 accreditation. Goodwill and old name because it is the only packaging company in Pakistan. Quality of product Square and safety product Customer retention Well computerized system Good repute Good culture

Weaknesses:

Price high

Opportunities:

Use of platinum by making product Technological progress Expand business

Threats:

Comdi block (competitor) Inflation raises day by day Change in technology

Social responsiveness:

In Tetra Pak, managers are also socially responsible not only in making profits but also protecting and improving society’s welfare like: They provide packaging of the products that is harmless to the environment, as they are UHT treated and pasteurized. Tetra Pak cartons are fully recyclable.

They can be made into high-quality paper products such as paper towels, tissues, stationary and other useful products like plastic and lumber, rulers and pens. They recently use campaign that is named as Proud Pakistanis Recycle Tetra Pak (Friends of the environment). The objective of this campaign is to provide a clean and healthy living environment to the people of Pakistan and also to fulfill their social responsibility

Tetra Pak’s culture:

Tetra Pak’s culture is very strong because all the values are deeply held and shared in the organization. That is the reason that they have Monopoly in Pakistan. There are no others competitors of Tetra Pak in Pakistan. Also worldwide they perform certain activities like consumer research, seminars and advertisement that show their commitment to their work. To get the clear idea about Tetra Pak’s strong culture, let’s see the dimensions of organization culture.

Dimensions of Tetra Pak’s culture:

Attention to detail:

Tetra Pak is one of the biggest organizations of Pakistan. After so many years of existence in Pakistan, it remains in monopoly. The reason is that when they make certain decisions, then in which so many factors are involved, they check all the factors with utmost precision. For example, if they want to introduce a new product in the market, then the whole process requires accuracy. To make accurate product that is according to the customer requirements, they first do consumer research and after accurately researching for what customer needs, they launch the new product which match the customer’s needs and wants.

Outcome orientation:

It is the organization’s main responsibility that what kind of outcome they produce. Tetra Pak is outcome oriented because it always focuses on the outcomes and the way they achieve this outcome.

People Orientation:

Tetra Pak is always concerned about their employees and other staff because they think that the employees in the organization are very much responsible for an organization’ success and failure. Employees are motivated and empowered. They are also given compensation benefit based on their performance.

Team Orientation:

Tetra Pak also favors team orientation. All the packaging design, development, analysis and many more tasks are done in teams and groups.

Aggressiveness:

Tetra Pak is always concerned about working in friendly and cooperative but challenging environment. Although there is some kind of work related aggressiveness just to overcome the threats for any new competitors in future, yet employees cooperate with each other in performing different kind of tasks.

Stability:

Tetra Pak has been constantly engaging to create something new from five years that is why it cannot be called stable.

Innovation and risk taking:

Tetra Pak always create something new, something different and unique for their customer. Employees are encouraged to take risks that’s why they are innovative.

HR Processes & Practices:

HR Strategy and alignment:

HR strategies and polices are more or less same but there are some amendments due to the nature of reasons they amend policies according to need but the basic HR policies are same according to law and regulations. As we interviewed Hr manager, he told us that organizations do not come with entirely different HR policies to make new setup. He told us that line of actions are different but basic HR policies remain same.

Recruitment and selection:

Recruitment is a process of identifying that the organization need to hire someone up to the point at which application form has arrived for the post and that

need is originated from head of departments of an organization. Head of departments show the need of employees to HR department then HR Department select employees. In Tetra Pak this need of employee information is sent to their internal intranet then through print media they publish it and people apply on that. He told us they have two criteria of test for technicians and for managers. After that they have different types of interviews’ One 2 One, scenario based case study. When all interviews are clear then finally higher authority selects the people.

Orientation:

Orientation is necessary part of every organization. In Tetra Pak this system is also followed. The chief gives necessary information about the company.

Internal communication:

In Tetra Pak they use intranet through which they communicate for official work. For example: Regular communication, HR bulletin in which they explain 1 month activities.

Training and Development:

Training and development is a need of employee. They asses which employee needs training. After that the employee is sent for training. They decide which type of training is needed outside or inside. In Tetra Pak three types of training and development plans e.g Machine development, software and presentation development and third one is EDP executive development plan that are for potential employees for which they think that those employees in coming years get promoted to the manager seat.

Employees Motivation:

Tetra Pak motivate their employees by giving benefits and rewards on performance bases. They provide open door policy in which employees directly meet director and give opinion. To sustain loyalty of employees the awards are given on quarterly bases e.g Core value award, Award for maintenances.

Employees Evaluation and Assessment:

They have web page on their network. In the start of the year they set task for achievements on that web page. The manager takes two interviews from subordinates in mid or at the end of the year. Then manager give grades according to the performance.

Performance Appraisals:

Performance appraisals are given to employees who have best performance. Some managers have good position and company does not give them appraisals.

Coaching and Mentoring: When employees are hired, first they are trained. They are sent on machines with their seniors for six months. After being fully trained they are given their job tasks.

Compensation & Benefits:

Tetra Pak provides their employees health insurance with employee family, Doctoration and interation, gym, sports, pick and drop, pension and EOB fund, Employee welfare fund.

Growth opportunities & succession Planning:

Tetra Pak give open growth opportunities to their employees and prepare succession planning for them. If they do not have any opportunity in Pakistan then they send them out of country if employee is ready to go.

Recent News:

Basically Tetra Pak transaction is b2b. They gave portfolio to their customers in different packages recart, plisma etc. Their customers launch their product according to their portfolio.

Conclusion:

Tetra Pak is running a successful business in all over the world to provide best and safety product. They are giving best quality to their customers which others do not provide. They are constantly trying to do something new. Their products are environmental friendly. They have a very strong culture. Socially, they recycle the packs and provide good environment. They follow the international standards and give importance to their employees by providing them a lot of benefits and good working

environment with good culture in which every employee cooperate with each other that why they are successful in the world.

REFRENCE:

http://www.tetrapak.com/pk/Pages/default.aspx

http://www.tetrapak.com/about_tetra_pak/the_company/core_values/Pages/default.aspx

http://www.tetrapak.com/environment/recycling_and_recovery/pages/recycling.aspx