25135887 ob atlas honda

ORGANIZATIONAL BEHAVIOR

ATLAS HONDA LTD.

SUBMITTED TO

COL (R) SUHAIL AHMAD

SUBMITTED BY

MUHAMMAD ATIQUE 28S-608 BILAL JAMIL 28S-601

Table of Contents

Executive Summary………………………………………………………... 1

Introduction………………………………………………………………… 2

Vision & Mission Statement………………………………………………. 3

Company Profile…………………………………………………………… 3

Management Profile……………………………………………………….. 4

Organizational Structure…………………………………………………… 6

Milestones………………………………………………………………….. 7

Products Overview………………………………………………………… 8

Functions…………………………………………………………………... 9

Strategic Goals……………………………………………………………... 9

Quality……………………………………………………………………... 10

Core Competencies………………………………………………………… 11

Core Values………………………………………………………………... 11

SWOT Analysis……………………………………………………………. 12

Market Position…………………………………………………………….. 13

Code of Ethics……………………………………………………………... 14

Human Resource Philosophy………………………………………………. 15

HR Mission & Objective…………………………………………………... 15

HR Functions………………………………………………………………. 16-18

Mgmt By Objectives (MBO)………………………………………………. 19

Culture……………………………………………………………………... 19

Suggestions………………………………………………………………… 19

Sources of Information…………………………………………………….. 20

Organizational Behavior

Atlas Honda Ltd. 1

Executive Summary

Atlas Honda is one of the leading and most growing Automobile (Two wheeler)

company of Atlas Group. It is a Joint venture with Honda Motor Co. Japan. The

Company is manufacturing and marketing four models of motorcycles. It is growing

since 2000 ~ 2001 at the rate of 25 percent per annum. Due to absence or very poor

infrastructure of mass transit and public transport, motorcycle has now become

necessity of life for a large segment of urban and rural population as well.

The company’s objective is to maximize profit through providing high quality

motorcycles and through gaining the high level of customer satisfaction. In this report

company’s vision and mission statement is clearly defined. Then company’s strategic

goals, core competencies and core values are described. In addition company’s

SWOT analysis are also included in this report. After that organization’s different

functions are discussed. The company’s cultural values are also described and at the

end of the report some suggestions are recommended.


Atlas Honda Ltd. 2

Introduction:

Atlas Honda Limited is a joint venture between the Atlas Group and Honda Motor Co., Japan. The company was created by the merger of Panjdarya Limited and Atlas Autos Ltd. in 1988. Both these motorcycle manufacturing concerns were established by the Atlas Group. In addition, a third concern, Atlas Epak Ltd. was taken over by the Government of Bangladesh. Atlas Honda Limited manufactures and markets Honda motorcycles in collaboration with Honda Motor Company. The Company also manufactures various hi-tech components in-house in collaboration with leading parts manufacturers like Showa Atsumitech, Nippon Denso and Toyo Denso. Honda motorcycles are by far the largest selling motorcycles in the country with an unmatched reputation for high quality, reliability and after-sales-service.

Atlas has undertaken to develop local manufacturing capabilities to the highest, economically feasible level. While a major role in localization has been assigned to vendor industries, Atlas has the country’s largest in-house manufacturing capability at its Karachi and Sheikhupura plants. To support the production facilities, the company has established an R&D wing and tool making facilities through CDA & CAM which are growing rapidly in size and function as the company expands. Atlas has managed to execute 14 Joint Venture/Technical Assistance Agreements between local vendors and foreign manufacturers for transfer of technology. Besides, Atlas has directly executed 5 Joint Venture/Technical Assistance Agreements other than Honda.

Atlas management is striving to modernize company operations by adapting applicable aspects of research and theory and more specifically, Honda’s unique philosophy of hard/soft technologies to the realities of Pakistani conditions. Company management structure, systems and processes are changed according to the demands of the customer, growth and new technology.

Efforts are being made to develop participation at all levels of personnel in decision-making and a substantial and effective delegation has been established at levels where applicable. Various participation programs such as ‘Ala Mayar’ Quality Circles movement, launched in 1985, are strongly encouraged to allow constructive self-expression and teamwork. The Company training and development programs encourage all members to develop themselves and contribute to their full potential.

Atlas Honda is playing a pioneering role in creating conditions for easy and confident use of motorcycles all over the country. A vast and growing network of over 1600 motorcycles sales service and spare parts dealers has been established. In order to back up this system, Atlas has set up Technical Training Centers in Karachi and Lahore which provide several courses of varying duration and complexity for motorcycle mechanics and users each year. Mobile training facilities take the latest know-how, technology and maintenance of motorcycles to major rural and urban centers around the country.


Atlas Honda Ltd. 3

Vision:

“Market leader in the motorcycle industry, coming up as a globally competitive center of production and exports”

CEO’s vision is very clear. AHL is currently market leader in motorcycle industry by a wide margin and would definitely like to retain this distinction, with current 55% market share, company is well positioned. However, in future after WTO complete implementation, protection from foreign competition would reduce, as duty on imported motorcycles will be further brought down from the current level of 75%.

Mission:

A dynamic, profitable and growth oriented company through market leadership, maximizing export and excellence in quality and service; to ensure attractive returns to equity holders; reward employees according to their ability and performance; to foster a network of researchers and engineers ensuing unique contributions to the development of the industry; customer satisfaction and protection of the environment by producing emission friendly green products and to remain a good corporate citizen fulfilling its social responsibilities in all respects.

Company Profile:

C.E.O: Mr. Saqib Hussain Shirazi

Plants Locations: F-36 Site Karachi

26/27 Km Lhr-Skp Road, Sheikhpura

Products: Environment friendly 4-Stroke Honda Motorcycles

CD-70

CG-125

CD- 100

CG-125 DLX

Export: Nepal

Srilanka

Bangladesh

Afghanistan

Annual Capacity: 600,000 Units


Atlas Honda Ltd. 4

Management Profile:

BOARD OF DIRECTORS

GROUP EXECUTIVE COMMITTEE

GROUP PERSONNEL COMMITTEE

GROUP SYSTEMS & TECHNOLOGY COMMITTEE

Chairman Yusuf H. Shirazi Chief Executive Officer Saquib H. Shirazi Directors Koji Nakazono Nurul Hoda Sanaullah Qureshi Sherali Mundrawala Toshitsugu Kaneko Yoshitaka Kitamura Company Secretary Zaryab Tarique

Chairman Aamir H. Shirazi Members Frahim Ali Khan Iftikhar H. Shirazi Jawaid Iqbal Ahmed Saquib H. Shirazi Secretary Theresa Dias

Chairman Yusuf H. Shirazi Members Aamir H. Shirazi Bashir Makki

Chairman Iftikhar H. Shirazi

Members Mushtaq Alam Zia Ullah Begg Secretary Sarfraz Hassan


Atlas Honda Ltd. 5

AUDIT COMMITTEE

MANAGEMENT COMMITTEE

Chairman Sanaullah Qureshi Members Sherali Mundrawala Nurul Hoda Head of Internal Audit Aamir Shakoor Khan Secretary Ashfaq Ahmad

Chief Executive Officer Saquib H. Shirazi Vice President Marketing Nurul Hoda Vice President Technical Toshitsugu Kaneko Chief Financial Officer Suhail Ahmed General Manager Plants Col. (R) Khalid Aziz General Manager CAMA Maqsood A. Basraa General Manager Development Yoshitaka Kitamura

General Manager Quality Assurance Lt. Col. (R) Sultan Ahmed

General Manager Human Resource Razi-u-Rehman

General Manager IT Mushtaq Alam General Manager Logistic Talha Saad


Atlas Honda Ltd. 6

Organization Structure

CEOSaquib H Shirazi

VP TechKaneko

GM E & P DGM E & P

Mgr CAD CAM KHI

Manager Operations SKP GM Plants

GMHR

Manager Projects Planning

Manager Operations KHI Plant

National Mgr. PPC & Stores

Mng. Parts Develop.

GM R & DKitamora

Mgr R & DSKP Plant

Vendor Develop.SKP Plant

Vendor Develop. KHI Plant

GM Finance

MAIR KHI Plant

GM Logistics

Mgr Cost SKP Plant

Mgr Accounts SKP

Mgr Accounts KHI Plant

Mgr Cost Karachi Plant

Mgr QA KHI Plant

MAIR SKP Plant

Mgr QA SKP Plant

GM CAMA Mgr CAMA

Mgr Human Resource

GM Marketing

GM Quality Assurance

National Mgr Logistics KHI Plant

National Mgr Logistics SKP Plant

National Mgr Parts Planning

National Mgr Service

National Mgr Sales

National Mgr Customer Care

Mgr R & D KHI Plant

R Mgr Sales LHR I

R Mgr Sales RWL

R Mgr Sales Multan

R Mgr Sales South

R Mgr Sales LHR II

National Mgr Commercial


Atlas Honda Ltd. 7

Milestones: The company is engaged in the manufacturing, sales of motorbikes and auto parts.Since its inception the company has experienced an unprecedented growth in itsoperations from a small manufacturing company to the leading motorbike manufacturer of Pakistan. Following is the chronological order of the major events inthe company's history:

2004 Contribution to national exchequer reached Rs. 3.18 billion - 72% of wealth generated, out of Group 7.56 billion (1.48% of the Government total revenues)

2003 Major re-adjustment of prices to pass on the benefits to customers 2003 Best Corporate Report award by joint committee of ICAP & ICMAP

2003 Achievement of landmark sales of 100,000 motorcycles

2002 Deletion level reached to 87% and 80% for CD70 & CG125 respectively

2002 Introduction of Gratuity Scheme for staff 2002 Best Corporate Report award by joint committee of ICAP & ICMAP

2001 Concept of 5S dealership - Sales, Service, Spare Parts, Second hand exchange and Special (Credit) sales launched

2001 New Block for hi-tech engine plant 2000 Investment in Crankshaft Project 1999 ISO 9002 certification for both factories

1998 New models (MMC) of CD70 & CG125 launched

1997 Investment in Gear Project 1995 Exports to Bangladesh

1995 Export Agreement signed with Honda Motor Company Limited

1994 Mr. Kawamoto President, Honda Motor Company Limited, visited AHL 1992 Change of name to Atlas Honda Limited (AHL) 1991 Inauguration of CG125 Engine Project at Sheikhupura Factory 1990 Merger of Panjdarya Limited into Atlas Autos Limited

1989 Export of built up motorcycles to Nepal 1988 Production capacity expansion III 1988 Joint Venture agreement signed with Honda Motor Company Limited

1987 Inauguration of CD70 Engine Project at Karachi Factory

1982 Deletion Project financed by PICIC 1981 Commercial Producton started at Panjdarya Limited

1981 Production capacity expansion II 1979 Incorporation of Panjdarya Limited as Joint Venture with Honda Motor Company Limited1976 Production capacity expansion I 1965 Public offering of Shares 1964 Commercial Production started

1962 Technical Assistance Agreement signed with Honda Motor Company Limited

1962 Incorporation of Atlas Autos Limited


Atlas Honda Ltd. 8

Products

CD-70 CG-125

CD-100 CG-125 DLX


Atlas Honda Ltd. 9

Functions:

Human Resource & Administration Finance Supply Chain Production Quality Assurance Engineering & Projects Marketing Research & Development Information Technology

Strategic goals:

Customers: Our customers are the reason and the source of our business. It is our joint aim with our dealers to ensure that our customers enjoy the highest level of satisfaction from use of Honda Motorcycles.

Local Manufacturing: To be the industry leader in indigenization of motorcycle parts.

Technology: To develop and maintain distinct business advantages through continuous induction of improved hard and soft technologies.

Shareholders: To ensure health and viability of business and thus safeguarding shareholders interest by maximizing profit. Payment of regular satisfactory dividends and adding value to the shares.

Employees: To enhance and continuously up-date each member’s capabilities and education and to provide an environment which encourages practical expression of the individual potential in goal directed team efforts and compensate them attractively according to their abilities and performance.

Corporate Citizen: To comply with all government laws and regulations, to maintain a high standard of ethics in all operations and to act as a responsible member of the community.


Atlas Honda Ltd. 10

Quality:

A dynamic, profitable and growth oriented company through market leadership, maximizing export and excellence in quality and service; to ensure attractive returns to equity holders; reward employees according to their ability and performance; to foster a network of researchers and engineers ensuing unique contributions to the development of the industry; customer satisfaction and protection of the environment by producing emission friendly green products and to remain a good corporate citizen fulfilling its social responsibilities in all respects.

Quality Policy:

Commitment to provide high quality motorcycles & parts Right work in first attempt and on time Maintain and continuously improve quality Training of manpower & acquisition of latest technology Safe, clean & healthy environment Market leadership & prosperity for all

Quality Standards:

In Atlas Honda Limited quality has priority over production. By producing the best quality motorcycles we can attain No.1 Customer Satisfaction, fulfilling AHL’s goals. Quality is built into our production methods and Systems and it is important that all associates understand and strictly comply with all quality regulations.

In order to maintain quality, all associates should be quality conscious, therefore, every one is required to strictly following guidelines.

Always remove wrist watches, bracelets etc. before entering the production area. These can cause scratches.

Associates working in paint shop must use safety equipments. Dandruff and falling hair can also cause quality defect. If you suffer from these

conditions, be sure to consult with your supervisor so that these can be immediately corrected.

Dirt and dust are other sources of quality defects, be-sure that you are clean when you enter the production area. Check that you do not have dirt or stains on your body and that your uniform is free of stains, mud, dirt, dust, oil or grease.

Long fingernails may cause scratches and other defects, be sure to keep your nails short and clean.

Production workers are advised to always keep their hair short and clean. Standardized safety shoes are allowed in the production area, be sure to wear

appropriate shoes when working. Eating and drinking material is not allowed in production area.


Atlas Honda Ltd. 11

5-S Activities:

5-S is a Japanese technique that is used to ensure clean and pleasant work environment. All associates should perform 5-S activities at their respective workplaces.

Sort: Clear out rarely used items by red tagging Set in Order: Organize and label a place for everything Shine: Clean the work place Standardize: Display the operation standards at every work place Sustain: Use regular management audits

Core Competencies:

Largest Capacity Motorcycle manufacturing facility Vertically integrated high precision engine parts Flexible manufacturing facility Only company using ED-Paint Coating System Largest nation-wide exclusive Sales and Service network Capable of new model development by local R & D

Core Values:

AHL core values have remained the same through out the years and are as follows:

Strongly believe in that “Customer is King” Respect for individual Winning – remain ahead of competition through quality Continuous innovative & Value added services Best return on investment Hard-work & Continuous self-improvement & development Un ambiguous excellence in all aspects of the Company Corporate social responsibility


Atlas Honda Ltd. 12

SWOT Analysis:

SWOT analysis is a strategic planning used to evaluate strengths, weaknesses, opportunities and threats involved in a project or in a business venture. AHL SWOT analysis are as follows;

Strengths:

Largest manufacturing plant in Pakistan (Global Standard factory) World-renowned “HONDA” Brand Market leadership with precision quality Largest product lineup with four popular brands CD70, CD100, CG125 and

CG125 DLX to meet the future challenges Widespread dealers network Professional management and high skilled staff

Weaknesses:

Low manufacturing ability of vendors to supply parts for 500K motorcycles annually

Difficult to maintain high quality production at high market demand Complexity in coordination and communication among facilities, vendors and two

geographical locations i.e. Karachi and Sheikhupura plants Slow response or long lead-time from the vendors High warranty claims pressure due to premium price product

Opportunities:

Poor infrastructure of mass-transit. i.e., limited substitution of 2 wheelers Rapidly changing Market dynamics Being a largest manufacturer can enter India, China and other countries as per

WTO rules and regulations Purchasing/Buying behavior is changing (more quality conscious) More investors in the vendor business to invest in latest technological specialized

manufacturing processes More inflows from the companies, growth in installment

Threats:

Low barrier of entry of major players after WTO implementation Unpredictable frequent changes of government or its policies Bargaining power of suppliers (Vendors) Bargaining power of buyers (dealers/customers) Price war Threats of copy products Substitute services Indian & Chinese entry in Pakistan Market


Atlas Honda Ltd. 13

Market Position

BRAND 2006/07 Sales 2007/08 Sales

HONDA 190,000 58% 287,000 57%

YAMAHA 47,000 14% 70,000 14%

SUZUKI 21,000 6% 25,000 5%

CHINESE 82,000 22% 118,000 24%

TOTAL 340,000 100% 500,000 100%


Atlas Honda Ltd. 14

Code of Ethics:

Atlas Honda Limited conducts its operations with honesty, integrity and openness, and with respect for human rights and interests of the employees. It respects the legitimate interests of all those with whom it has relationships. AHL is committed to comply with the laws and regulations of Pakistan.

AHL is committed to create the working environment where there is mutual trust and respect and where everyone feels responsible for the performance and reputation of the company. AHL is equal opportunity employer, which recruits, employs and promotes employees on the sole basis of the qualifications and abilities needed for the work to be performed. AHL is committed to safe and healthy working conditions for all employees. We will not use any form of forced, compulsory or child labor. AHL is committed to provide branded products and services, which consistently offer value in terms of price and quality. Products and services will be accurately and properly labeled, advertised and communicated.

AHL conducts its operations in accordance with principles of good corporate governance. It provides timely, regular and reliable information of its activities, structure, financial situation and performance to all the shareholders.

AHL is committed to establish mutually beneficial relations with its suppliers, customers and business partners.

AHL strives to be a trusted corporate citizen and, as an integral part of society, fulfills its responsibilities to the societies and communities in which it operates.

AHL is committed to make continuous improvements In the management of environmental impact. It works in partnership with others to promote environmental care, increase understanding of environmental issues and disseminate good practice.

AHL make innovations to meet consumer needs. It respects the concerns of consumers and of society. It works on the basis of sound research, applying high quality standards.

AHL believes in fair competition and supports development of appropriate competition laws. AHL and employees conduct their operations in accordance with the principles of fair competition and all applicable regulations.

Compliance with business principles is an essential element. The Board of Directors of AHL is responsible for ensuring that these principles are communicated to, and understood and observed by, all employees. Assurance of compliance is given and monitored each year. Compliance with the Code is subject to review by the Board supported by Audit Committee of the Board. The Board of AHL expects employees to bring to their attention, or to that of senior management, any breach or suspected breach of these principles.


Atlas Honda Ltd. 15

Human Resource Department:

HR Philosophy:

The AHL Human Resource Philosophy is based on the conviction that the well being of the company and the well being of its people are one and the same. The company is dedicated to the belief that its most valued asset is its people. Our commitment is to employ on the basis of Merit, Intellect, Integrity and Character to ensure that every employee is treated with dignity and respect and in a fair consistent and equitable manner; to create a stimulating and supportive atmosphere in which they may work; and to aid and encourage them in the realization of their full potential.

We recognize that the success of this philosophy depends in the large measure on the manner in which employee’s at every level carry out their obligations to each other and to the Company. Our philosophy will not work if employees do not have a feeling of mutual confidence and loyalty, as well as respect of each other as human being.

In the same context of obligations and mutual trust and confidence, all employees are expected to maintain certain standard in relation to their work, and in representing themselves as employees of AHL.

Employees of AHL must be committed to the following principles:

Accept total responsibility for the success of the Company’s HR philosophy, policies and programs.

Have through knowledge of the Company’s HR philosophy and programs, and review them with subordinates to ensure their total understanding.

Ensure consistent and fair interpretation of personnel policies. Exercise leadership by demonstrating integrity, professional knowledge, the

courage of their convictions, and concern for the feeling of others. Establish a relationship with subordinates that encourage a free flow of

information in both directions, permit open discussion of differing views and allow decision making at the most appropriate level.

Accept and support decisions made contrary to their expressed positions. Apply the highest standards of ethics, integrity and honesty. Comply with Company policies and procedures.

HR Mission:

To inculcate organizational culture which supports optimum performance. Encourage the employees to analyze and evaluate his/her own performance in a

realistic manner. Be friendly and supportive to the employees of the company and make them feel

relaxed and in a positive frame of mind.

HR Objective:

To achieve the Company’s objective the HR Department of AHL will recruit, develop, utilize, evaluate, maintain and retain the right number and types of employees to provide the organization with an appropriate workforce.


Atlas Honda Ltd. 16

Management Policy: Proceed always with ambition and youthfulness. Respect sound theory, develop fresh ideas and make the most effective use of time. Enjoy your work and encourage open communication. Strive constantly for a harmonious flow of work Be ever mindful of the value of research and endeavor.

HR Functions:

1. Recruitment and selection 2. Training and development 3. Performance appraisal 4. Motivation 5. Employees services safety, health & welfare 6. Manpower planning 7. Salary administration 8. Industrial relation 9. Communication system 10. Negotiation with union 11. Terms and condition of employment

1. Recruitment and selection:

Forecasting for the vacant positions to be filled Advertisements for vacant positions Receiving applications and complete bio data Building a pool of candidates Short listing the candidates and building a secondary and purified pool Written test 1st interview 2nd interview Final interview Medical test

2. Training and development:

Apprenticeship training Informal learning Job instruction training (JIT) Tele-training Videoconferencing Job rotation

Off-Job Trainings:

Corporate universities association (LUMS), (PIMS) ATLAS development centers (ADC) seminars Japanese tour for training


Atlas Honda Ltd. 17

3. Performance Appraisal:

Employee’s objectives setting Self evaluation Measuring the achievement of objectives Following concern department’s recommendations Recognizing the hard work Rewarding the deserving employees

4. Motivation:

Reward System: Company revises salaries of all management staff on the basis of economy inflation and individual performance. Group personnel committee decides inflation rate and salaries of all management staff then increases. Second portion of annual increment is decided on the basis of individual performance.

Promotions: Employee is moved whenever vacancy is available. Normally company believes on promotions from within the company.

5. Employees Services Safety, Health & Welfare:

Car/Motorcycle Bonus Gratuity Provident Fund Group Life Insurance Health Insurance/Hospitalization Plan Personal accident Insurance Conveyance & Meal Allowance Compensatory Leaves Inconvenience Allowance Personal Loan Welfare Loan Traveling Allowance Marriage Gift Award on retirement EX-Gratia Grant upon Death

6. Manpower Planning:

Computerized forecasting and planning Human resource information system Qualification inventories Forecasting Techniques Candidates availability Computerized personnel placement Division of labor according to production and shops


Atlas Honda Ltd. 18

7. Salary Administration:

Upward communication T.M.S (time management system) Leaves adjustment Sandwich deductions Salary slip Transfer of salary in employee account

8. Industrial Relations:

Relations with dealers Relations with internal customers (employees) Relations with external customers Relations with vendors

9. Communication System:

Upward communication Downward communication Parallel communication Mediums of communication Lotus notes (email) Internal communication letter (i.Com) Letters Fax Land lines and mobiles

10.Negotiation with Union:

Increase in basic pay Conveyance allowance Staff welfare loan Gift on marriage of daughter Disability coverage Award on retirement

11.Terms & Condition of Employment:

Probation Duties Transfer within the company Transferred to sister concerns Termination Participation in union activities Registered Medical Practitioner


Atlas Honda Ltd. 19

Management By Objectives: (MBO)

Every year all management staff prepares their next year objectives and action plan in align with company objectives. These objectives are discussed and approved by immediate supervisor/manager. These objectives also been reviewed by the senior management on half yearly basis. Annual performance appraisal also based on achievement of these objectives and reward recognition follows accordingly.

Culture:

AHL culture is a blend of Pakistan & Japanese culture.

Its main characteristics are as follows;

Friendly & Safe environment Respect for every individual and recognition Easy access to the Higher Management Openness to share ideas Always welcome to suggestions Equal opportunities for personal growth Same uniform for everyone (White) Same cafeteria and meal for everyone

Recommendations: (In the aspects of OB)

To be a market leader, “Quality” should be improved in all aspects. HR Mgmt must promote organization culture. HR Mgmt must conduct ethical audit. Performance Appraisal system must be more clear & transparent. There must be a regular system of learning employees the organizational culture. The Mgmt should take initiate in motivational activities. (Positive Reinforcement) At present Reward System is annual based. It should be quarterly to keep

employees motivated throughout the year.


Atlas Honda Ltd. 20

Sources of Information:

Human Resource Deptt. Administration Deptt. Quality Assurance Deptt. Research & Development Deptt. Sales & Marketing Deptt.

25135887 ob atlas honda

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