PRINCIPLES OF

MANAGEMENT
Assigned Topic:

 Comparison Organizational structure Local organization:

Local: Foreign:
1. Hira Textile Mills 1.British Air Ways
2. Sitara textile Mills 2.Nestle

Submitted to:
Respected
Sir Dr.Usman Yousaf

Submitted By:

Name: Nosheen Ansar

BBA Section A
Roll # M19BBA045 (HCBF)
Company Profile

Hira Textile Mills

   Limited was incorporated in Pakistan on January 31, 1991. The Company
was listed on Pakistan Stock exchange at Karachi & Lahore on Feb 15, 2007. Hira Textile is a composite
textile manufacturing unit which is engaged in the manufacture and sale of various kinds of spinning,
Dying / bleaching and doubling products mainly for export purposes. Hira Textile mills has 41424 spindles.
The company has also the most modern yarn dying and yarn doubling unit and in house power generation
facilities with a capacity 18.65 MW. The company's production facilities comprise of spun yarn, dyed /
bleached yarn, zero twist / double yarn.

Sitara Textiles is among the foremost enterprises of Pakistan. The group started with textile
processing in 1956 and progressively flourished into a renowned industry. We aspire to provide outstanding
quality materials to our clients by gratifying their expectations and maintaining their confidence on a supreme
level. Sitara textiles operate worldwide catering to the local markets as well as serving the international
markets. Sitara Hamza private Ltd. supplies to the local market whilst Sitara textiles focuses 100% on export.
We always endeavor to offer superlative quality textiles by adopting the most innovative approaches. Sitara
textiles along with its subsidiaries outshine the entire textile industry.

Nestlé with its more than 2,000 quality brands has positively impacted the lives of the people and has
truly lived up to its promise of Good Food, Good Life all across the globe. As the foundation of every
relationship relies on trust, we commit to our purpose of enhancing quality of life and contributing to a healthier
future, by creating shared value for Individuals and Families, Communities and the Planet. Nestlé Healthy Kids
Program (NHK) is a global intiative to encourage parents and educators to foster healthier eating, drinking and
lifestyle habits among school age children. Till 2018, we reached out to 180,000 children with 10 partners
schools across Pakistan. ABOUT THE COVER CEO’S MESSAGE Nestlé Pakistan believes in Creating Shared
Value (CSV) for the communities in which it works and lives. The health of our company is intrinsically linked
to the health and resilience of the society we operate in; this is why Nestlé’s purpose is to enhance quality of life
and contribute to a healthier future. Our global focus areas are firmly embedded in our purpose. Individuals and
families, our communities and the planet as a whole are interconnected, and our efforts in each of these areas
are supported through our 42 specific commitments. These commitments will, in turn, enable us to meet our
global ambitions for 2030 in line with the timescale of the Sustainable Development Goals (SDGs). By 2030,
we focus on integrating SDGs into key partnerships and initiatives by helping 50 million children and families
to lead healthier lives, improving 30 million livelihoods and striving for zero environmental impact of our
operations. In 2018, Nestlé Pakistan was awarded the ‘Living the UN Global Compact Business (UNGC)
Sustainability Award 2018’ in the multinational category for the third time in a row. We were also declared the
second runner up in Overseas Investors Chamber of Commerce & Industry (OICCI) Women Empowerment
Awards 2018 among 40+ multinationals. These awards are a recognition of the best practices adopted by Nestlé
in embracing SDGs. FOR INDIVIDUALS & FAMILIES Nestlé prides itself on being the leading Nutrition,
Health and Wellness (NHW) Company; we are committed to creating nutritional awareness among our
consumers. This year, Nestlé Healthy Kids program reached out to more than 180,000 children in the rural, sub-
urban and urban areas and have trained over 800 teachers on nutrition in 250 schools across the country. 02
Nestlé Pakistan Limited With the goal to empower young women with basic nutrition knowledge so they make
healthier nutrition choices and adopt healthy lifestyle, Nestlé Healthy Women Program has reached out to more
than 6000 young women across 12 universities nationwide. FOR OUR COMMUNITIES We believe in
improving livelihoods and develop thriving communities. Nestlé Pakistan has been continuously facilitating its
dairy farmer base through the provision of access to finances- both conventional and digital microfinance. In
2018, seven commercial banks partnered with us to finance farmers for their farm infrastructure improvement,
cow purchase and farm mechanization. Loans worth PKR 634 million have been disbursed through this facility
till 2018. Knowing the contribution of rural women in the well-being of the family and communities, Nestlé
Pakistan has been extending support in the lives of women associated with the rural dairy sector in Pakistan. In
2018, more than 3,000 rural women were trained on best farm practices through village meetings. I am also
very proud of Nestlé Pakistan’s collaboration with Benazir Income Support Program (BISP) as it provides
livelihood opportunities for BISP beneficiaries as part of our Rural Women Sales Program. To-date more than
450 beneficiaries have become Rural Sales Agents in Punjab and Sindh. Nestlé Pakistan also imparted
nutritional knowledge to more than 1000 BISP beneficiaries through the Healthy Women Program. FOR THE
PLANET Nestlé Pakistan is taking steps and introducing various initiatives in its manufacturing units and
beyond, to exhibit Respect for Future. We launched Caring for Water (C4W) initiative that undertakes
collective approach to help protect shared knowledge and reduce water consumption inside and outside our
fence. The initiative has three pillars; Factories, Communities and Agriculture. Our Sheikhupura Factory is the
first factory in Pakistan for having achieved the Alliance for Water Stewardship (AWS) certification. In 2018,
our Islamabad Factory was also certified. We aim to have the rest of the sites in Karachi and Kabirwala factory
certified by end 2019. We also have a global commitment towards 100% recyclable or reusable plastic by 2025.
As we move into a new period in our Company’s history, we will continue to evolve and strengthen our
approach to Creating Shared Value. We will ensure that this approach continues to drive all our behaviours,
policies and actions in the way we do business. Freda Yahan Duplan Chief Executive Officer 03 CREATING
SHARED VALUE At Nestlé, we believe in the philosophy of Creating Shared Value (CSV). It is our belief that
for a company to be able to create value for its shareholders, it must also create value for society. Nestlé
Pakistan, as part of its global and local obligations, believes in Creating Shared Value for the communities it
works with. The health of our Company is intrinsically linked to the health and resilience of the society we
operate in; this is why Nestlé’s purpose is to enhance quality of life and contribute to a healthier future. At
Nestlé, social responsibility does not end with a few philanthropic activities. Instead, CSV is embedded in our
business model; where direct engagement and support to communities is extended across the value chain. This
adds value to the business and supports socioeconomic development for the communities. Pakistan is a
developing economy where more than 60% of the population lives in the rural areas. There is a huge potential
for rural development, particularly in the livestock sector where companies such as Nestlé are adding real value
for improving the quality of life for rural communities. From offering quality products to consumers and
providing a fair and diverse work environment for our employees; from capacity building and knowledge
transfer to our partners and raw material providers, to implementing responsible sourcing models into our
relationships; from supporting under privileged communities to working with small farmers; from enhancing
sustainability and environmental friendliness of our operations to embedding ethical and transparent business
practices, CSV is entrenched in the entire value chain of Nestlé. Our global focus areas are firmly embedded in
our purpose. Individuals and families, our communities and the planet as a whole are interconnected, and our
efforts in each of these areas are supported through our 42 specific commitments. Our goal is to provide
products that are not only tastier and healthier, but also better for the environment. This gives our consumers yet
another reason to trust Nestlé. Creating Shared Value Nutrition, Water, Rural Development Compliance Laws,
business principles, codes of conduct Sustainability Protect the future These commitments will, in turn, enable
us to meet our ambitions for 2030 in line with the United Nations Sustainable Development Goals (SDGs).
Additionally, ethical business practices, transparency and consumer trust – based on high quality products with
a focus on Nutrition, Health and Wellness – remains the hallmark of our core business. The company is
committed to the stakeholders and the communities for mutual growth and sustainability. Based on the strong
foundations of compliance and sustainable business practices, this is the Nestlé way of doing business. As we
move into a new period in our company’s history, we will continue to evolve and strengthen our approach to
Creating Shared Value as the way we do business ensuring that this approach continues to inform all our
behaviors, policies and actions. 04 Nestlé Pakistan Limited

Organizational Culture
Organization culture is the set of values, rules, beliefs, attitudes and regulations these factors can help
members of the organization to know how we will Work. To whom we will report? What we this? Why
this is important?

Culture is like a backbone for the organization because it is the internal environment it play a key role
to success of the firm

Types of Culture
Power Culture

Power culture is centralized this culture may found in the small kinds a business control is the basic
element the decision maker is alone there is no consultancy the organization may react quickly to the
danger. Some times more consultancy can lead to staff feeling undervalued and de-motivated, which
can also lead to high staff turnover.

Welfare/ Person culture

Basically this kind of culture is a welfare non profitable, charities and for the social activities. This kind
of culture can be in the group or individual aim

Task Culture

It is basically a team work based approach to complete a particular task. This culture is more common
the business where the organization will establish a project team to complete the project in the
particular time. Employee’s feels motivated because they are in power to make decisions within their
team, they will also feel good and value because they may have been selected within that team and
given the responsibility to bring the task.

Role Culture

Common in most organizations today is a role culture. In a role culture, organizations are split into
various functions and each individual within the function is assigned a particular role. The role culture
has the benefit of specialization. Employees focus on their particular role as assigned to them by their
job description and this should increase productivity for the company. This culture is quite logical to
organize in a large organization.
P2:- Analyze the relationship between an organization’s structure
and culture

And the effects on business performance.

Task for P2
Culture and structure is working like a backbone in the organization. It creates a new concepts and
strategies which can affect any level of planning. When it applies on any hierarchy organization. So
then implications of organizational culture and structure will be implemented to the government
companies etc.

Organizational structure and culture can affect progress of organization in the positive and in the
negative way. In the positive way it differentiate the organization to the another one which don’t have
a culture and structure. It explains the limitation of the firm. It provides a sense of license among the
employees to know each other for the success and achievement of goals. It can bring stability and
social system in the organization. In any organization having culture and structure strange there will
be working environment also provides appropriate standards of working environment.

Every organization has different policies rules and regulations that how to communicate with the
employee. The organization also shows about the responsibilities that who will report to whom mean
who will be responsible to whom majority in this kind of organization tasks a good decision foe the
company

Culture and structure has also some drawbacks on the business progress. If the organization culture is
too much complex then in the organization decision will be very slow and also there will be
centralized decision making in which the lower level employee’s will not be entertained.

Every international business firm has to face various issues related to organizational policies. These
organizational issues are to be addressed carefully in order to keep the business healthy and
profitable. Although there are numerous issues, both small and big, we will primarily concentrate only
on the major issues that need to be addressed.

Centralization vs. Decentralization

Centralization is the systematic and consistent reservation of authority at central points in the
organization. In centralization, the decision-making capability lies with a few selected employees.
The implications of centralization are

 Decision making power is reserved at the top level.

 Operating authority lies with the mid-level managers.
 Operation at lower level is directed by the top level.
Almost every important decision and operational activities at the lower level are taken by the top
management.
Decentralization is a systematic distribution of authority at all levels of management. In a
decentralized entity, major decisions are taken by the top management to build the policies
concerning the entire organization. Remaining authority is delegated to the mid- and lower-level
managers.

Use of Subsidiary Board of Directors

International firms, especially the fully-owned ones, usually have a board of directors to oversee and
direct the top-level management. The major responsibilities of board-members are to −

 Advice, approve, and appraise local management.

 Help the management unit in providing response to local conditions.
 Assist the top management in strategic planning.
 Supervise the firm’s ethical issues.

Organizational Structures
Any international business organization, depending on its requirements and operations, would have
an organization structure to streamline all its processes. In this section, we will try to understand
some of the major types of organizational structures.

Initial Division Structures

Initial division structures are common in subsidiaries, export firms, and on-site
manufacturers. Subsidiaries that follow this kind of organization structure include firms where the
main export is expertise, for example, consultants and financial firms. Export firms include those
having technologically advanced products and manufacturing units. Companies having on-site
manufacturing operations follow this structure to cut down their costs.
International Division Structure

This structure is built to handle all international operations by a division created for control. It is often
adopted by firms that are still in the development stages of international business operations.
Advantages

 International attitude gets the attention of top management

 United approach to international operations
Disadvantages

 Separates domestic managers from their international counterparts

 Difficulty in ideating and acting strategically and in allocating resources globally
Global Product Division

Global product divisions include domestic divisions that are allowed to take global responsibility for
product groups. These divisions operate as profit centers.
Advantages

 Helps manage product, technology, customer diversity

 Ability to cater to local needs
 Marketing, production, and finance gets a coordinated approach on a product-by-product, global basis
Disadvantages

 Duplication of facilities and staff personnel within divisions

 Division manager gets attracted to geographic prospects and neglects long-term goals
 Division managers spending huge to tap local, not international markets
Global Area Division

Global area division structure is used for operations that are controlled on a geographic rather than a
product basis. Firms in mature businesses with select product lines use it.
Advantages

 International operations and domestic operations remain at the same level

 Global division managers manage business operations in selected geographic area
 Ability to reduce cost per unit and price competitively
Disadvantages

 Difficult to align product emphasis in a geographically oriented manner.

 New R&D efforts are often ignored, as sale in mature market is where the focus is.
Global Functional Division

This structure is to primarily organize global operations based on function; product orientation is
secondary for firms using global function division structure.
Advantages
 It emphasizes on functional leadership, centralized-control, and leaner managerial staff
 Favorable for firms that require a tight, centralized coordination and control over integrated production
mechanisms
 Helps those firms that need to transport products and raw materials between geographic areas
Disadvantages
 Not suitable for all types of businesses. Applicable to only oil and mining firms
 Difficult to coordinate manufacturing and marketing processes
 Managing multiple product lines can be challenging, as production and marketing are not integrated.
Mixed Matrix
This structure combines global product, area, and functional arrangements and it has a cross-cutting
committee structure.

Advantages

 Can be designed to meet individual needs

 Promotes an integrated strategic approach tailored to local needs and priorities

Disadvantages

 Complex structure, coordinating and getting everyone to work toward common goals becomes difficult.
 Too many independent groups in the structure