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1 Table of Contents 1. Industry Overview.................................................4 1.1. Introduction...................................................4 1.2. History........................................................4 2. Literature........................................................6 2.1. Scope of Industry..............................................7 3. Purpose of Study..................................................8 3.1. Research Methodology...........................................9 3.2. Focus group....................................................9 3.3. Questionnaire for Business to Customer........................10 4. Company Overview.................................................10 4.1. Brand Name....................................................10 4.2. Logo..........................................................11 4.3. Slogan........................................................11 4.4. Products......................................................11 4.5. Core values...................................................11 4.6. Vision........................................................12 4.7. Mission.......................................................12 5. Marketing Plan...................................................12 5.1. Product.......................................................12 5.2. Pricing strategy..............................................15 5.3. Placement.....................................................15 5.4. Segmentation and Targeting....................................16 5.5. Positioning...................................................16 6. Strategies Analysis..............................................16 6.1. Pest Analysis.................................................16 6.1.1. Political Factors.........................................16 6.1.2. Economical Factors........................................17

Final Report of Chicken processing unit as SME for Gujranwala Region

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Final Report of Chicken processing unit as SME for Gujranwala Region

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Table of Contents1. Industry Overview...............................................................................................................................4

1.1. Introduction.................................................................................................................................4

1.2. History.........................................................................................................................................4

2. Literature.............................................................................................................................................6

2.1. Scope of Industry.........................................................................................................................7

3. Purpose of Study..................................................................................................................................8

3.1. Research Methodology................................................................................................................9

3.2. Focus group.................................................................................................................................9

3.3. Questionnaire for Business to Customer....................................................................................10

4. Company Overview...........................................................................................................................10

4.1. Brand Name...............................................................................................................................10

4.2. Logo..........................................................................................................................................11

4.3. Slogan........................................................................................................................................11

4.4. Products.....................................................................................................................................11

4.5. Core values................................................................................................................................11

4.6. Vision........................................................................................................................................12

4.7. Mission......................................................................................................................................12

5. Marketing Plan..................................................................................................................................12

5.1. Product.......................................................................................................................................12

5.2. Pricing strategy..........................................................................................................................15

5.3. Placement..................................................................................................................................15

5.4. Segmentation and Targeting......................................................................................................16

5.5. Positioning.................................................................................................................................16

6. Strategies Analysis............................................................................................................................16

6.1. Pest Analysis.............................................................................................................................16

6.1.1. Political Factors.................................................................................................................16

6.1.2. Economical Factors............................................................................................................17

6.1.3. Social Factors.....................................................................................................................17

6.1.4. Technological Factors........................................................................................................18

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6.2. SWOT Analysis.........................................................................................................................19

6.2.1. Internal Analysis................................................................................................................19

6.2.2. External Analysis...............................................................................................................19

6.3. TOWS Matrix............................................................................................................................20

6.4. Competitor Analysis..................................................................................................................20

6.4.1. Pricing Strategy.................................................................................................................20

6.4.2. Distribution Strategy..........................................................................................................21

6.4.3. Product Comparison...........................................................................................................21

6.5. Customer Analysis.....................................................................................................................22

6.6. Porter’s Five Forces...................................................................................................................22

6.6.1. Barriers to Entry.................................................................................................................23

6.6.2. Bargaining Power of Suppliers..........................................................................................23

6.6.3. Rivalry among Competitors...............................................................................................23

6.6.4. Bargaining Power of Buyers..............................................................................................24

6.6.5. Threat of New Substitutes..................................................................................................24

6.7. Risk and Mitigation Plan...........................................................................................................24

7. Operational Plan................................................................................................................................25

7.1. General Chicken Process Unit...................................................................................................25

7.2. Production Process Layout........................................................................................................25

7.3. Factory Layout...........................................................................................................................26

7.4. Location.....................................................................................................................................27

7.5. Process flow diagram.................................................................................................................28

7.6. Production Process.....................................................................................................................29

7.7. HACCP & HALAL certification...............................................................................................31

7.8. Inventory control System...........................................................................................................31

7.9. Unit Capacity and Detail............................................................................................................31

8. HR plan.............................................................................................................................................32

8.1. Human Resource objectives.......................................................................................................32

8.2. HR functions..............................................................................................................................32

8.2.1. Human Resource Planning.................................................................................................33

8.2.2. Recruitment.......................................................................................................................33

8.2.3. Selection............................................................................................................................34

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8.2.4. Orientation.........................................................................................................................35

8.2.5. Training and development.................................................................................................36

8.2.6. Performance Appraisal.......................................................................................................37

8.3. Compensation plan....................................................................................................................38

8.3.1. Direct financial payments..................................................................................................38

8.4. Organizational Hierarchy...........................................................................................................40

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1. Industry Overview

1.1. IntroductionThe poultry sub sector is crucially important in the context of agricultural growth

and improvement of diets of the people. This sub sector is particularly important in that it

is a significant source for the supply of protein and nutrition in household’s nutritional

intake. It is an attractive economic activity as well, especially to women and poor

population. Slow economic growth has led consumers to opt for low-priced protein

sources and this has helped sustain relatively high-levels of chicken consumption for the

past several years. Among frozen food items, meat products have led the market with a

60 per cent share. Other frozen products are red meat, fish and parathas. Growth in the

processed poultry segment faces challenges, and industry sources cite multiple factors

when explaining the dominance of the live-bird market.

We are going to check the demand and supply of chicken in the local market in

order to set a new chicken processing unit. We would do market research through survey,

focus groups and interviews. After this we would do whole feasibility study of chicken

processing unit including marketing, operational, Human Resource and most importantly

the financial plan in order to give our findings and results at the end.

1.2. HistoryPoultry is an important sub sector of agriculture and is playing a vital role in

domestic economy. Poultry became a major component after World War II when

entrepreneurs began to grow chickens on specialized farms and process them in highly

automated factories. Before 1963 people were using only desi chicken for nutrition but

after 1964 this trend started changing when a lot of epic diseases relating to protein,

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vitamin and mineral deficiencies were seen among children. People felt the need of

hygienic, clean and healthy chicken which can be processed in highly environmentally

controlled environment. Khalil Sattar was the founding chairman of Pakistan Poultry

Association, was of the view that growth of the processed food industry is very slow in

Pakistan. However, discussing the growing competition among processed food producers,

he said, “I think competition in the local market is healthy, which will not only give more

choice to customers but will also help expand the processed food market.” K&N's, a

leading name of Pakistan's Poultry Industry started in 1964 with a single minded

objective of providing better nutrition for health and happiness of the Nation, and has

since been a founding pillar and beacon for the poultry industry. The year 1964; Pakistan

a young independent nation forging ahead towards a dream: self sufficiency in food

production. Malnutrition remained a major problem and one out of four children died

before attaining the age of five. 80% of ailing children were affected with diseases caused

by protein, vitamin and mineral deficiency. Poultry production, the quickest and least

expensive way of filling the protein gap was planned to overcome malnutrition. Backyard

poultry farming had to graduate to a more professional level.

Part of the reason why frozen food wasn’t on the shelves before the late 90s was

because of the very common Pakistani perception (which exists in some circles to this

day) that frozen food is not fresh and therefore inherently unhealthy. Two brands (Bibi

Jan and K&N) took on the pioneering role of educating consumers about the difference

between domestic and commercial freezing – the latter uses the ‘quick freeze’ process to

freeze freshly prepared food within 20 minutes of cooking, at a temperature of minus 20

degrees. In contrast, domestic freezers have a minimum temperature of minus 13 degrees.

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2. LiteraturePoultry sector is one of the vibrant segments of agriculture industry of Pakistan. This

sector generates employment (direct/indirect) and income for about 1.5 million people. Its

contribution in agriculture growth is 4.81% and in Livestock growth 9.84%. Poultry meat

contributes 19% of the total meat production in the country More Players are entering processed

chicken sector which shows the market is expanding. According to agriculture Statistics of

Pakistan the per capita consumption of poultry meat is increasing at a rate of 4% per annum.

(SMEDA report on pre feasibility study of poultry farm, Pakistan poultry industry is importing

100,000 Grandparents (GP) chicks annually from Australia, Holland, Germany and USA with

the cost of US $ 100 per day-old female chick.

It can be seen from

above figure that

Broilers’

Population is

increasing

year by year.

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It can be seen from the above figure that from 1999-00 to 2004-05 the production of

poultry meat was lower than the Mutton Meat but from 2005-06 to 2008-09 there is a rise in the

production of Poultry Meat. It is evident from the above figure that Poultry has taken the share of

Mutton although Beef production is always higher then Poultry meat and Mutton.

Whatever the real figure is, two things are certain: the first is that at least in terms of the

numbers, the growth in the Pakistani market seems to have closely mimicked that of the global

market. According to Data monitor, the local frozen foods market grew at an annual rate of 6.6%

between 2004 and 2009; however it has slowed down to roughly 3.4%. Secondly, frozen meat

products, and more specifically poultry account for 47% of the market (of which chicken burgers

and nuggets account for a staggering 60% of all consumer purchases).

A study by Research and Markets (a market research resource) titled ‘Global Frozen

Food Market Analysis – Trends and Forecasts (2010-2015)’ predicts that the global frozen foods

market, which was worth $218.4 billion in 2010, is expected to grow to $261.5 billion by 2015,

with a compound annual growth rate (CAGR) of 3.7%. This growth is significant and is driven

by two factors: the first is recessionary pressures which have forced consumers to eat more at

home; and secondly, frozen foods brands have introduced more wholesome and nutrient-rich

options making them more attractive to increasingly health conscious consumers.

2.1. Scope of Industry

There is great scope in this industry because chicken is the main requirement for

many people as it is cheap source of fulfilling the protein requirements of the people.

People now want more convenient, nutritious and healthy food products which are easy

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to cook and are pure from microorganisms and such germs causing diseases. Health is

their priority in selecting brands and people are very conscious about the health.

However, four factors have helped in increasing demand for frozen foods, the

Pakistan market’s mass shift towards branded, packaged foods, the consumer’s demand

for quick and convenient food products; the competitive pricing of frozen foods and

most importantly, greater acceptance of frozen foods as healthy options to supplement

meals and snacks.

3. Purpose of Study

We have to identify the need of Chicken in the market and give feasibility report on chicken

processing unit in local market with minimum sustainable profit.

Requirements:

Market Potential

Plant Capacity

Process and factory Layout

Labor & Management

Investment

Return on investment

Financial ratios and analysis

HR plan

Marketing Plan

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3.1. Research Methodology

Market Research:

Conduct Research Business to Business

Conduct Research Business to Consumer

Calculate Demand & Supply of Chicken

Secondary Data

Focus group

Questionnaire Development

Survey

Analysis & results

3.2. Focus group

Each group will have 4 to 8 members and it will be of 50 to 60 minutes.

We conduct mainly six focus group

o Three from the women bases on income level (15000-25000,25000-60000,60000

and above.)

o Second , with Male (Businessmen & Employees)

o Third, Student ( Age 18 -24 Years)

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3.3. Questionnaire for Business to Customer

Questionnaire is one of the techniques for data collection. We would design a

questionnaire and analysis will be done on data collected from questionnaire.

Sampling Technique: we used convenient sampling technique as chicken is basic and

cheap source of protein for people.

Sample Size:

We used a sample of a total of 300 questionnaires.

Questionnaire Scale:

Likert Scale having 5 choices (Starting from strongly agree to strongly disagree).

4. Company Overview

This company would be a small SME fulfilling the demand of chicken in the local market of

Gujranwala with 2000 daily capacity of chicken units. At first we would process only simple

whole chicken after sometime we would expand our operations and would introduce other ready

to cook products of chicken if our brand would get a good response from the market.

4.1. Brand NameThe brand name of our product will be “King Chicken”. Our frozen chicken and

fresh chicken which will be for key accounts, both types of products will be sold under

this brand name.

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4.2. Logo

4.3. Slogan

“King chicken Convenience and health conscious delivered”

4.4. Products

King Chicken serving frozen chicken for their valuable customer

4.5. Core valuesThe core values of our company are as follow:

Respect:

We give respect to our stakeholder.

Integrity:

We are very honest, sincere to our community.

Accountability:

We emphasize efficiency, quality and optimal use of our resources in all

aspects of our operation.

Diversity:

We will hire skilled labor for improvement and efficiency.

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4.6. Vision

With a dedicated and skilled human resource, regional leadership in poultry engineering,

and keeping social responsibility abreast, we are proud to change the lifestyle of consumers who

are heart and soul of our organization

4.7. Mission

Promoting an organization in pursuit of excellence, King Chicken is aspiring to achieve

operational efficiency, high quality products, and unique services through committed individuals

5. Marketing Plan

5.1. ProductThe product our company will be offering to our customers will be frozen hygienic

chicken which will cater the needs of those customers who want to switch from the unhygienic

chicken which the common chicken retailers are providing. It will be hygienic packed chicken

which will be in frozen and fresh form.

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We will be offering three types categories of product to the customers

1. Designer cuts

Karahi cut 1.0 kg

Tika boti cut 1.0 kg

Drumsticks 1.0 kg

Wings 1.0 kg

Neck 1.0 kg

2. Whole chicken

Whole chicken with gillets 1.2 kg

Whole chicken without gillets 1.0 kg

Gizzard 1.0 kg

Liver 1.0 kg

3. Boneless cuts

Breast fillet 500 grams

Boneless handi 500 grams

Minice 500 grams

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Product range and the prices of our product as follow:

Product Net weight Price

Whole Chicken (Neck, Gizzard) 1.2 kg $246

Whole chicken 1 kg $284

Karahi Cut 1 kg $247

Boti Cut 1 kg $273

Drumstick 1 kg $288

Neck 1 kg $103

Wings 1 kg $258

gizzard 1 kg $258

Liver 1 kg $129

Brest Fillet 500 g $233

Bonleless Handi 500 g $212

Qeema 500 g $212

Company

Retailer

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5.2. Pricing strategy

The pricing strategy which we will be using will be cost-plus pricing strategy as we are

new firm and it will be best strategy to survive and get maximum market share in the market.

5.3. Placement We are small enterprise which will be catering the needs of customers of Gujranwala

only. Our product will be available to retailers and we will be

supplying to retailer directly without any intermediaries.

Our distribution setup will be as follow:

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5.4. Segmentation and Targeting

We have segmented on demographic and psychographic bases. We will be targeting

middle, upper middle and upper class. The families having combined income of 50000 pak

rupees and above are our target market.

5.5. Positioning

We position our product as hygienic packed frozen chicken which will be convenient and

easy to cook for our customers. Through our analysis we came to know that what people

perceive about frozen chicken and we will be positioning our product according to those factors

Availability, convenience and easy to cook, these we factors which people associates with frozen

chicken and we will position our product according to it.

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6. Strategic Analysis

6.1. Pest Analysis

6.1.1. Political Factors

Following are the factor involve in the political factors:-

Government Policies: New and old companies have to obey the governmental policies to

run any business.

Price Policies: Price policies are also an important factor. It has to maintain & design its

price policies keeping in view the income & income distribution of the people living in

the country.

Political Stability: Political stability is very important if want to become the leader in fast

food business in Pakistan. So this is also an important political factor.

Household Size: Household size plays a vital role in the demographical factor. Generally

we target the whole family not single family members.

Population: Population also plays a vital role in the demographical factor. In the light of

this population we can make our strategy.

6.1.2. Economical Factors

Following factors are included in the economical factors of the Poultry chicken:-

Income: Income is an important economical factor. This factor decides which class is

going to target. Here most people are not willing to pay more ,only middle class and

upper class are included.

Consumption Behavior: Behavior of people has changed a lot towards hygienic and

healthy food products, they are also moving towards convenient products due to busy

routine.

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6.1.3. Social Factors

Following factors included in the demographical factors of the pest analysis of

New Unit:-

Age: Kids and Young people like chicken more than the adults.

Gender: Both males and females like to eat chicken.

6.1.4. Technological Factors

Following are the factors included in the technological factor

Pace of Change: Pace of change is very high. New machinery and latest technologies are

being used which make the same product in less time and more efficiently and

effectively.

Research & Development: Research & Development is also an important factor in the

Technological factor. This team will be very important in bringing new line of products

to our field.

Capital Formation: Capital formation means stock of machinery. One has to maintain a

good stock of machinery to compete in the environment.

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6.2. SWOT Analysis

6.2.1. Internal AnalysisSTRENGTHS WEAKNESSES

We will use the latest technology

Birds will be processed in highly controlled and

hygienic environment.

Poultry enterprises are environmentally friendly

Indigenous poultry enterprises do not need high

start-up costs to establish a profitable business.

Low fat, highly protein chicken is economical

to eat

Chicken flock are highly susceptible to disease

outbreak especially airborne diseases

Poor distribution network of input suppliers

including feed and drug suppliers

People are not willing to pay more

Many people prefer freshness than convenience

Lack of training and trained workers for proper

technology functioning.

Low education level of operational team.

Non availability of natural gas and electricity

and High cost of energy

6.2.2. External AnalysisOPPORTUNITIES THREATS

There is a growing demand in the local Market

for convenient and healthy products.

Prices for red meat products are on the

rise

Many people want convenient and ready to

cook products in this modern world.

People are becoming health and nutrition

conscious day by day.

Maximizing of production to take advantage of

economies of scale

Use of crossbreeding of local and International

chicken results in better breed.

There are regular fluctuations in poultry Prices

An outbreak of bird flu and other epidemics

Severe drought affecting production of feed and

thus health of chicken

Flooding the market with cheap imports.

Currently imports of chicken meat are limited.

Other vise majors like flood, earthquake,

electricity and fuel shortage etc

There is strong competition from local and

some International suppliers

Increase in Inflation

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6.3.

TOWS Matrix

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6.4. Competitor Analysis

The competitor of king chicken is only K&N’s because it is the only company which is

providing frozen chicken in Gujranwala. K&N’s is not only providing frozen chicken but they

are also providing frozen food products as well.

6.4.1. Pricing Strategy

They are using market skimming pricing strategy and getting premium profits as they are

the only player in the market and they have monopoly in Gujranwala. The customer who wants

to buy hygienic packed frozen chicken the only option is K&N’s.

6.4.2. Distribution Strategy

K&N’s are having their own outlets as well as they are also proving their products to end

user through retailers.

6.4.3. Product Comparison

The product of K&N’s and king chicken are almost the same the main difference is

prices. These are the price difference as below:

Product K&N King Chicken

Whole Chicken (Neck, Gizzard) 267 246

Whole chicken 304 284

Karahi Cut 265 247

Boti Cut 290 273

Drumstick 306 288

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Neck 120 103

Wings 275 258

gizzard 275 258

Liver 136 129

Brest Fillet 503 433

Bonleless Handi 461 412

Qeema 461 412

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6.5. Customer AnalysisWe conducted a survey which gave us useful insights about our customer and those are as

follow:

People are becoming more and more health conscious

6.6. Porter’s Five Forces

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6.6.1. Barriers to Entry

Oligopolistic Structure so difficult to enter also because there is one key player K & N’s

and other player is menu but they have not developed such brand image.

Only few market leaders to set prices. And they require huge large investment.

We are new to this industry as we are going to launch a new chicken processing unit so

we are also a new entrant in this Industry.

The demand pattern is also changing. People are moving towards better quality products

with convenience and for better nutrition.

K & N’s already have gained economies of scales so entry is difficult to build any

sustainable advantage.

High Capital R & D Requirements

6.6.2. Bargaining Power of Suppliers

As there are many suppliers for poultry broilers and chicken so their bargaining power is

less.

Supplier’s power is affected by Government intervention, inflation and other economic

policies.

6.6.3. Rivalry among Competitors

Pakistan’s industry is facing pressures from globally competitive markets. It has become

extremely difficult for Pakistan’s economy to sustain growth by continually relying on

cheap labor, limited technological infrastructure and the high cost of imported

technologies.

The market is less competitive and at the same time growing also.

Main players are K& N’s, after that menu is at initial stage. Some other local players are

there which have not developed such brand image.

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6.6.4. Bargaining Power of Buyers

There are many buyers in this industry as health conscious people are increasing day by

day, so switching cost is high due to less players and bargaining power is a low.

6.6.5. Threat of New Substitutes

Threats of new substitutes is low as we are going to provide frozen chicken and its

substitute is only fresh chicken and frozen chicken providers are only K &N’s and Menu.

6.7. Risk and Mitigation Plan

This is our mitigation plan showing some controllable and uncontrollable factors on one side of graph and on other side we have given how we would overcome these factors. We have a backup of energy for energy crisis. Regular security check for any kind of threat of crime. Sales promotion for tax regulations and Data Base management for consumer crime.

If there is supplier’s conflict we have an inventory management plan and a customer care centre for inconstant service.

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7. Operational Plan

7.1. General Chicken Process Unit

The above figure is showing the general Chicken unit showing how processing takes

place. It is showing simple main steps of processing. Firstly birds are inspected and hanged.

After the hanging, birds are halal slaughtered then blood is allowed to leak in separate area, after

that skin removal occurs and chicken is further washed and cleaned removing the carcass.

Chicken is then deboned for further cuts, boneless packed chicken and passed through blast

freezing area. At last packing and delivery takes place.

7.2. Production Process Layout

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This is the overall production layout of our processing Unit. Its different steps are

mentioned in detail in the process flow diagram and production processes section showing each

step separately. While this figure is showing each area where different processes would take

place in which sequence and manner.

7.3. Factory Layout

This is our overall factory layout showing production region along with the factory other

areas. There are two gates for entry and exit of vehicles (Trucks and other transport). After

unloading the truck there is a trolley room, a bi product region where animal bi products are

separated. After that come our production area where further processing occurs. A separate room

for generator and tools is also at the right most corner. And at last our cool storage area so that

our product remains frozen and free from bacteria and germs. Along with the production region

there is a small region for mosque where prayers would be offered, a main hall for employees

and five separate offices for CEO and top management.

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7.4. Location

This is our exact location where we would like to start our project very near to Sialkot road near

Abdal region( 4km from the Sialkot Bypass).

31

7.5. Process flow diagram

32

7.6. Production Process

Following are the steps of production

Un Loading & Stunning

The birds are transported by truck to the processing Unit, usually in specially designed

crates that are stacked on rack sand then loaded onto the vehicle. The birds are held in the

reception area in the transport crates, pending veterinarian inspection. After inspection, the birds

are removed from the crates in the reception area and put on the killing line.

Hanging

The birds are hung upside down by their feet by shackles on a conveyor, which moves

them to the stunning area. Once the birds are shackled, stunning is carried out

Takbeer (Killing)

The slaughtering is performed manually by man using halal method (Takbeer)

Bleeding

The birds should bleed for at least two minutes to ensure a total bleed-out. The blood is

collected in a tank and handled as an animal by-product for further processing.

Blood Washing

After bleeding, the birds are exposed to hot water as part of the scalding procedures.

Scalding loosens the feathers and facilitates plucking. If high-temperature scalding is

Used, the epidermis will be removed during the plucking process.

Wing & Neck Skin Removing

After that wings and neck skin is removed .During evisceration the neck is broken off and

residues present in the windpipe are removed from the neck cavity.

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Legs & Tail Cutting

Then legs and tails are removed

Removing Skin

Further processing takes place by removing the skin

Breast Opening & Carcass Removing

Evisceration is carried out mechanically or manually to remove the internal organs. Care

must be taken to prevent contamination with material from the intestinal tract. The open

Bird and the organs are presented for inspection by a trained individual. Birds unfit for human

consumption are removed. Inedible organs including the intestinal tract and lungs are removed

and treated as animal by-products. The eviscerated carcass should be rinsed internally and

externally with potable water before further processing.

Pre Cleaning & Head Removing

During evisceration the neck is broken off and residues present in the windpipe are

removed

Cleaning with Water

Further cleaning takes place with the help of water

De-Boning

Chicken is then further deboned and further cutting.

Meat Packing & Blast Freezing

Birds are weighed individually and sorted according to their weight. After weighing, the

birds are inspected visually and categorized. Whole birds are typically packed in plastic bags or

in containers wrapped in film. All packing material should be approved according to current

34

national regulation or other and then at last blast freezing results in freezing of chicken so that it

would remain hygienically healthy for lasting time.

7.7. HACCP & HALAL certification

Our product would be Halal certified because we are opening Unit in

Islamic region also we are Muslims, we must obey only halal slaughtering rules. Furthermore,

we would have HACCP certification also so that our standards must be approved.

7.8. Inventory control System

MIS system used to manage the required inventory stocks.

Order will be made through telephonic network, Marketing Person, Face to Face deals

with customers.

7.9. Unit Capacity and Detail

Halal Slaughtering process: Design Based on Islamic HALAL Slaughtering Traditional

Capacity per day: 2000 Poultry per Shift Slaughtering Plan Project

Working Time: 8 hours Shift per Day.

Unit Production per Second: 1 unit Produce in 4.1 second.

Guarantee: Year Unit Guarantee forms the Manufacturer.

International Standard: Equipments are in Compliance with the Related ISO 9001 Standard

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8. HR plan

8.1. Human Resource objectives

To create the favorable atmosphere for the best performance

To provide the organization with well-trained and high-motivated employees.

Hire the right person on the right job.

Make sure that the person whom selected for the job that provide the organization

efficiently and effective work.

To ensure reconciliation of individual goals with those of the organization.

To develop and maintain a quality of work life.

To develop the abilities of the each personal

Retain & Development of the Employees.

Develop a culture perceptual learning.

Interpreting company policies and procedures.

Evolve the policies and programs within the organization as would promote a strong

organization orientation.

8.2. HR functions

Human Resource process is as under

Human Resource Planning

Recruitment

Selection

Orientation

Training and development

Performance Appraisal

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8.2.1. Human Resource Planning

To identity the current and future resources need of the organization to achieve the goal.

In this process utilized minimum resources of the organization to plan that the best fit between

job and the employees that is more valuable for the organization. King chicken wants initially

qualified workers for the development the company. Basic planning of the king chicken includes

how to train the employees because of introducing new plant in the Gujranwala region. In HR

planning which personnel we are going to hire, what qualities organization needed, how much

experience they have and many more.

8.2.2. Recruitment

As we know that recruitment is the process in which a company attracts a large pool of

applicants or candidates in order to choose the best and the most competent ones to fill their

vacancies. We will use external recruitment for filling the job vacancies in the company because

of new born organization we doesn’t have any internal employees for promotion demotion their

jobs.

External Recruitment: When some new and different skills are required which will not be

provided within the organization, they will bring new ideas .people will have a wide range of

experience the management will go for external recruiting and most of the external recruitment

will be do this through following source:

Advertising on local cable channels

Employment ads and images

Referrals and walk ins

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Banners

8.2.3. Selection

After the recruitment process will be over, the HR manager with the help of department

heads will decide that which of the candidates best suit with the particular job requirements in

terms of their qualification, experience or skills. For this purpose we will use different techniques

for management and labor class.

Screening: This is the first stage of selection process we will identify the managerial level of

candidates with minimum qualifications and low level of candidates with their ability to work

Management Hiring/selection: For hiring management level employees we will just use

interview techniques,

Interviewing: In interview we use to collect interview that is not provided in the resume. This is

the best use to asses’ non cognitive abilities and also has been use in termination of employees.

We will use following type of interview. For the managerial level of management we will

conduct structured interviews.

Structured interview: We use this interview for upper level job we conduct structured questions.

We will construct a series of structured question for that interview then decide whether we have

to hire this candidate or not?

Unstructured interview: This interview will be for the low level of employees. It’s a traditional

method of interview no constraints on questions and questions are not standard. We will just take

some interview from the employees and then we test them by giving them some task and if he

completes that task in correctly manner then they will definitely hire for the job

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Testing of lower staff (Workers):

Following tests are made for the selection of lower staff.

Physical fitness test

On-Machine evaluation

Physical Fitness test:

Lower staff has to work on different machines so to know their abilities to work at

machine is tested. Physical abilities of employees will be tested through different Physical

Fitness Test. Workers have to prove that they are physically fit for the job, and could work fast in

the hour of rush and as well they don’t have any sort of viral or infectious diseases.

ON-Machine Evaluation:

After physical fitness test employees will undergo evaluation at machine under the

supervision of the department head or supervisor, which provides the employee with an

opportunity to work practically on the machine and show his skills.

8.2.4. Orientation

Orientation is necessary part of an organization although king chicken newly entrant in

market so Introduce your new employee to the supervisor they will be reporting to, if they

haven't already met. Show them their work station and where to get any supplies they might

need. Talk briefly about important contacts they will want to remember, such as the person

responsible for ordering supplies, the payroll person and any others you feel are key to the

operation. New employees feel much the same way. They are coming into a new environment,

meeting new people, and are not sure how they will be accepted. Employers can ease the

transition and take advantage of the opportunity to get the relationship off to a good start.

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8.2.5. Training and development

Orienting Employees:

Our next step will be to ensure that our employees do know what to do and how to do it.

It is a procedure for providing new employees with basic information about the firm.

On the Job Training:

This is the most important training method for any one firm it’s all about training a

person to learn a job while working on it. King chicken will be trained their employees while on

job because of over plant operation are based in process flow of plant and other employees are

learned through their supervisor and job expert.

Job rotation:

King chicken employees have advantages of job rotation in which according to their

individual skills moves job to job.

Special Assignment:

For the managerial level we will train them by giving them special assignment.

Especially this type of training will help the marketing manager and the operation manager.

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8.2.6. Performance Appraisal

Manager or supervisor typically evaluated the employee job performance through

employee information.

We would use this scorecard format for measuring job performance of the employees. This

would help us to investigate which employee has better skills and in which area. So, we would

accommodate employees to particular areas accordingly.

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8.3. Compensation plan

Compensating employees is all form of pays or reward going to employees and arising

from their employment. We will pay our employees

8.3.1. Direct financial payments

We will pay our employees in the form of wages, salaries, incentives, commissions, and

bonuses. Through this we will entertain our employees and try to motivate them. We will give

these incentives to our employees

Direct financial payments

We will give direct financial payments to employees.

First aid

First aid facility would be there for any urgent need.

Bonuses

Bonuses are very helpful to boost performance of employees and labor.

Injury facility and medical

As this type of Unit requires such type of machinery which may be dangerous and may

result in accidents because of the use of sharp blades and other equipments, medical facility

would also be given.

Eid or other religious leaves

We will give leave on Eids and other religious holidays.

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Remuneration

This is the pay structure which we are going to follow offering 15 % benefits to the

employees on annual basis.

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8.4. Organizational Hierarchy

This chart is showing our organizational hierarchy. There is one

CEO. After that in top management there are 4 managers from each

major including an operational, finance, marketing and HR manager.

Furthermore Maintenance In charge, machinery technician, and skilled

labor is under supervision of operational manager, Accountant is under supervision of finance

manager. Marketing and sales executive and one assistant works under sales and marketing

manager. Store keeper, operator, office boy, guard, gate keeper, sweeper and drivers all come

under supervision of HR manager (Administration Manager).