Question # 3 Case Study: (6 Marks) Jenifer Keith, are recent graduate in management sciences from a well reputed university, has joined Nishat Textiles Mills Limited as a management trainee. She has been attached Muhammad Abyaan who is company’s human resources manager.

Nishat Textile Mills Ltd has a paid up share capital of Rs. 850 million and equity of Rs 1,244 million. Its long term loans are about 50% of its equity. It. Employs 480 employees. Its principal business is manufacturing of yarn and weaving denim cloth for local and export sales. The company is fairly successful.

The company has five principal departments, each headed by a Manager. All the manager carry the same job grade and pay scale, though their annual bonuses generally differ, based on the performance of the irrespective departments.

The Production Department, that has the largest number of employees, is based at the factory located outside Lahore. All other departments are based at head office located at MM Alam Road, Lahore. Human Resource Department has 12 employees.

Finance Department looks after: financial and company secretarial functions and has 21 employees. Supply Chain Department that over sees procurement of cotton and other supplies as well as · shipment of finished goods to local and export clients has 16 employees. Marketing Department has only 7 employees.

Mr Muhammad Abyaan who holds a basic degree in history and English with over two decades of industrial relations experience is not convinced that the job grade (and attend any pay scale) assigned to the various managers in the company are wholly justified. He asks Jenifer Keith to conduct a formal survey on the relative importance of the job contents and contribution to company's overall profitability mad by the different managers of the company. He gallantly offered himself as the first candidate to be interviewed or quizzed in this regard.

A memo was sent to all managers to cooperate fully with the new management trainee who, it was formally claimed, was simply putting together material for preparing an induction manual for all new employees.

Jenifer Keith was a advised by Mr Abyaan to interview all the heads of departments in the company ,for example finance manager, marketing manager, production manager, supply chain manager, company secretary and of course the HR manager and quiz the month the following:

Their role in company's policy making.
What they consider to be their main functions.
How do they carry out their functions?
How is their "average day in the office" spent?
The importance of their work to the overall profitability of the company.

After collecting the above data and analyzing it, she was to prepare two lists or charts.

The first list was to enumerate what appears to be common between the job contents and operational activities of the various managers, with a brief narrative on the relevance of these activities to the overall efficiency of the
The second list should give brief details of the specific tasks which are performed by one manager but not the other managers in the

Her final report should give her comments on the validity of the current system of treating all managers as equal in terms of job grade and pay scale.

Jenifer Keith has herself majored in corporate finance and has an obvious inclination towards that function. However, she was determined that she will not let this fact stand in the way of preparing an honest and unbiased report.

You are required to assist Jenifer Keith:
1.Preparing a list of questions to be asked of the different managers.

2.Analyzing the completed questionnaires.

3.Preparing the two lists (as enumerated above).

4.Drafting her report, giving a summary of her findings in a manner that would serve the basic purpose of the exercise, namely to find a justifiable and realistic basis of assigning job grades and pay scales to the different managers in the company.

Gives Suitable Title to this Case Study.