A General Overview Of Tapals Company

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The journey of Tapal's remarkable success is the combined efforts of three dynamic generations of the Tapal Family. In 1947, Tapal started out as a family concern under the personal supervision of its founder, Adam Ali Tapal.

Against tough competition Adam Ali's unique blend, later named Family Mixture, became a hot favorite and eventually the largest selling brand in the unorganized tea market. From this auspicious beginning, Tapal moved from success to success introducing tea brands to suit every taste and pocket, sold from its retail outlet in Jodia Bazar, Karachi. The quality of Tapal teas soon became legendary and people from all parts of Karachi started lining up at the outlet to purchase tea. For their convenience,

Tea distribution was initiated to retail outlets around the city. The company continued to grow under the management of the founder's son, Faizullah A. Tapal.

Today Tapal Tea is managed by the founder's grandson, Aftab F. Tapal. After studying abroad, Aftab Tapal returned to Pakistan to introduce professional management and unique production ideas to the business. A well trained tea taster and tea connoisseur himself, Aftab Tapal introduced new tea concepts and developed a wide range of tea blends catering specifically to the tastes of people throughout Pakistan. His progressive outlook resulted in giving further strength to the foundation of quality laid by his family.

Making a modest beginning over half a century back, today Tapal has become the largest, 100% Pakistani owned Tea Company in the country. It has modern tea blending and packaging factories, warehouses equipped with state-of-the-art equipment and a team of highly dynamic professionals headed by Aftab Tapal himself.

Organizational Organogram:

Organizational Culture:

Trust in Each Other

• We believe that trust is the foundation of our business actions.

• We believe that honesty is absolute and that integrity cannot be compromised. All our actions are guided by fairness and sincerity of commitment.

Outstanding Quality

• We believe in dedicating ourselves to achieving an outstanding quality in all our activities. Excellence is a journey, not a destination. Quality is a way of life for us.

Passion for Creativity

• We are open to novel ideas in every aspect of our business of choice.

• We believe in providing an environment which supports individual opinion and efforts, inspires and enables everyone to use their creativity and entrepreneurial flair.

Leadership

• We are committed to being the No.1 national company in our business of choice; a role model for others to follow.

• We believe in empowering individuals at every level. We encourage the use of judgment and decision making with ownership and accountability. We believe empowerment creates leadership.

Together, Everyone Achieves More

• We believe in unity and purpose of value the benefit of coordinated efforts. With a common goal and team spirit we will fulfill the needs of internal and external stakeholders.

Challenges for Tapal

It's a major hurdle for Tapal to position its tea abroad in the minds of the consumers and encourage them to indulge in the brand switching.

Have to import some of their products from other countries, which increases their costs.

Most of the sales are on cash, problem for the distributor then they can switch to competitors.

Tight quality control procedures lead to higher costs and its time consuming and often discontent and suppliers.

Strong marketing campaign of Unilever makes it extremely difficult for Tapal to counter-attack because of low budgets.

Unilever has a more established brand name then Tapal worldwide.

Business Overview

Product line

Following are the products manufactured by Tapal Tea Pvt. Ltd.

DANEDAR

FAMILY MIXTURE

TEZDAM

GULBHAR

GREEN TEA

ICE TEA

INSTEA

TAPAL SPEACIAL

CHANAK DUST

MAIZBAN DUST

SAFARI

Target Market

The target market is that they are defining for our brand Tapal Danedar is the A classand B+ class. The target of this brand is the urban area of the country and along withthe use in offices and business class as well. Tapal Danedar is basically the one toone competitor against Lipton yellow label. The class and geographical location wecan say is almost same for both the brands

Human Resource Department

Human resources is a term used to describe the individuals who comprise the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations. Human resources is also the name of the function within an organization charged with the overall responsibility for implementing strategies and policies relating to the management of individuals (i.e. the human resources). This function title is often abbreviated to the initials 'HR'.

The Human Resource Management (HRM) function includes a variety of activities, and key among them is responsibility for human resources -- for deciding what staffing needs you have and whether to use independent contractors or hire employees to fill these needs, recruiting and training the best employees, ensuring they are high performers, dealing with performance issues, and ensuring your personnel and management practices conform to various regulations.

HR Department Role in an Organization

Although Tapal is a local company but it is a system oriented one. Tapal supports the method of decentralised decision making. All departments get together in order to make decisions. HR has a strategic role in the business and it looks after the business as well as employees. For making the business good and flourishing it we need good employees. HR department acts as a bridge between the management and the employees. If business needs to make any decision such as expansion or something else, it consults the HR department because HR department adds value to the business. General Manager and the senior manager of HR are strategic units of the business whereas other managers and employees are operational.

Recruitment & Selection: 

Recruitment & Selection is a comprehensive process at Tapal Tea. The principles of merit and transparency are implemented in letter and spirit through a recruitment test, panel interviews and psychometric screening; followed by a medical examination and detailed reference check. The determining factor for selection is personality and attitude of the candidate for the position that has been profiled internally.

Strategic Planning and Performance Management: 

The tool of Management by Objectives (MBO) and behavioral review process is used for Performance Management, whereas a coordinated process of Strategic Planning generates performance goals and targets for the whole organization every year. Every employee participates in the performance management process encouraging individuals and teams to raise the bar every year. 

Training & Development:

T&D is ensured through a cycle of continuous learning that every employee goes through. Functional learning is ensured through internal and external subject specialists. On the job training is also an integral part of the learning strategy within the company, with mentor and trainee associations being ensured within and outside functional departments in the company

Human Resource Department Organogram

General Manager or HR(Mr Imran Ali Khan)

Senior Manager/ Team Leader (Mr Danish)

Officer

Officer

Officer

Officer

Executive Manager

Executive Manager

Employee and Development Officer

Executive Manager

Executive Manager

Executive Manager

Performance Manager

Compensation Manager

Training and Development Manager

Recruitment Manager

Officer

Manpower Budgeting and Planning

The year of Tapal starts on 1st July and ends on 31st June. From March onwards HR department of Tapal reviews the corporate goals of the previous department. For example if the company plans to expand or buy a new machine, it needs to decide how many employees will be needed in order to do any task. All the departments need to participate in the decision making task. The purchasing department decides which machine to purchase, the finance department makes budget for the machine, the quality assurance department makes sure that the machine is working properly and the HR department decides how many people will be needed in order to achieve the decided goal. By the mid of May, planning is almost done and HR requirement plan is already made and it is passed on to the senior manager or the CEO of the organisation. After they receive the plan, it is rationalised. The HR dept is questioned that why so many employees will be needed and makes sure that no extra employees are asked for. After the CEO approves the plan the HR department starts working on it that recruitment will be required when, in which dept, in which grade etc.

Techniques used in man power planning

Tapal doesn't use any specific technique in man power planning but analysis takes place. There is a simple manpower process used. There is just analysation of man power, rationalisation of HR and infrastructure planning. This means that when HR department needs manpower or labours they analyse that in which department and grade the manpower is required. The higher authorities make sure that the right numbers of employees are needed and the HR is not asking for extra employees. The infrastructure planning basically means that if there is a space of 4 people in the office only 4 can work in it. If the HR is requesting for 5 employees then it is not possible because 5 people cannot fit in that one room. Thus Tapal company doesn't use any specific method in manpower planning but they just carry out few analyses and then decide how many people to hire.

Hiring Methods of Tapal

The ratio of permanent staff at Tapal is very low because they prefer hiring temporary staff more. This is because Tapal has only 3 locations where production takes place and when production takes place Tapal needs a lot of employees. It mostly hires permanent employees during the time of production. In order to produce something, Tapal needs 900 employees. All of them cannot be permanent because after the production is completed, they won't need these 900 employees later on. Thus these employees are hired on the contractual basis. After the production activity is completed, their job ends. Secondly when we interviewed Mr Danish, he said that peons and kitchen staff cannot be permanent. They are always temporary at Tapal.

Temporary STAFFING:-

When success or peak periods demand extra work power or you need fill-in assistance for employees who are out for vacation, an illness, or extended leave of absence. 1500 to 5000 employees at Tapal are on temporary payrolls and contractual basis.

PERMANENT STAFFING:-

Permanent staffing assignments are those when you look to hire people on your payroll on a permanent basis. Only 350 people who include the GM, Managers and officers are permanent at Tapal. Only these people are on fixed salaries and payrolls.

Hiring Sources used by Tapal

Hiring people is one of the main functions of the HR department. It is basically fitting the right candidate at the right position. It is basically uncovering the perfect candidate for a position. Hiring is the first step before any job can begin. Hiring means understanding the company's environment, culture, philosophies, and hiring practices play as significant a role in finding the perfect candidate as a job description. Which source to be used for the hiring purpose is decided by the HR department of Tapal.

Tapal has the technical know-how and the ability to Identify candidates who aren't openly looking for a change in their career paths through variety of means, which includes:-

Advertisement in news paper

Yahoo groups

LinkedIn

Nokree junction

Rozee.pk

E recruitment (websites)

Internal announcements

PR basis

Universities

Head hunters

Hiring agencies

Bus stand recruitment (just for the labour class)

Hiring Process used by Tapal

Before hiring an applicant for a job position, a company goes through a step-by-step hiring process. This process has three key phases, including planning, recruitment, and employee selection. Human resource planning is when a company settles on the number of employees they are looking to hire and the skill sets they require of these employees. The company must then compare their needs to the expected number of qualified candidates in the labor market.

The recruitment phase takes place when the company tries to reach a pool of candidates through job postings, job referrals, advertisements, college campus recruitment, etc. Candidates who respond to these measures then come in for interviews and other methods of assessment. Employers may check the background of prospective employees, as well as check references. Employee selection is the process by which an employer evaluates information about the pool of applicants generated during the recruitment phase. After assessing the candidates, the company decides which applicant will be offered the position.

The hiring process used by Tapal is also a step by step process used by the HR department. The process is as follows:

Advertisement by using any appropriate source of hiring mentioned above - attraction of CVs

Screening of the CVs received and going through them properly.

1st interview calls to the selected candidates. This interview is taken by the HR manager and the line manager.

2nd interview call if necessary. This is taken by the CEO or any other manager on high post.

Test of the candidates who succeed in both the interviews

Medical test of the candidates.

Letter of joining given to the candidates who pass both the above mentioned tests

Job Orientation - Part of orientation process in which a new employee is introduced to coworkers, and is given information such as working hours, place of work, performance standards, benefits and facilities, and names of the immediate and other officers. Major objectives of orientation are to (1) gain employee commitment, (2) reduce his or her anxiety, (3) help him or her to understand organization's expectations, and (4) convey what he or she can expect from the job and the organization.

Employee Development Program

Employee development is a joint, on-going effort on the part of an employee and the organization for which he or she works to upgrade the employee's knowledge, skills, and abilities. Successful employee development requires a balance between an individual's career needs and goals and the organization's need to get work done. Employee development programs make positive contributions to organizational performance. A more highly-skilled workforce can accomplish more and a supervisor's group can accomplish more as employees gain in experience and knowledge

Employee Development Program of Tapal Tea Pvt Ltd: An individual development plan is prepared by the employee in partnership with his or her supervisor. The plan is based upon the needs of the employee, the position and the organization. A good individual development plan will be interesting, achievable, practical and realistic. It is implemented with the approval of the employee's supervisors. Employee Development program is linked with performance evaluation. When a person is being confirmed or a persons' yearly appraisal is going on, in that time first his/her needs are identified or a person itself writes that it's my strength and area of improvement, so that area of improvement is the area of training and development needs. When HR agrees that, with the employee then it is submitted to the HR unit and on the basis of which they make HR training need assessment, in which all the employees training need assessment degree are mentioned. On the basis of this assessment, employee's annual training plan is developed. Once the assessment is done then the HR makes plane of monthly training of the employees accordingly and the budget is approved for the training. During the training after the orientation employees succession program is developed, which shows employee's skills, abilities, and development needs, on the basis of which an employee is projected on the position in a particular area. So in such a way an employee's needs are identified and developed accordingly.

Employee Retention Plans

Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project. Employee retention is beneficial for the organization as well as the employee. Employees today are different. They are not the ones who don't have good opportunities in hand. As soon as they feel dissatisfied with the current employer or the job, they switch over to the next job. It is the responsibility of the employer to retain their best employees. If they don't, they would be left with no good employees. A good employer should know how to attract and retain its employees.

Compensation constitutes the largest part of the employee retention process. The employees always have high expectations regarding their compensation packages. Compensation packages vary from industry to industry. So an attractive compensation package plays a critical role in retaining the employees. Compensation includes salary and wages, bonuses, benefits, prerequisites, stock options, bonuses, vacations, etc. While setting up the packages, the following components should be kept in mind:

Employee Retention Plans of Tapal Tea Pvt Ltd:There is no specific retention policy in Tapal Tea Pvt Ltd. Tapal doesnot need to retain its employees as they are automatically retained by themselves. Tapal is a well known firm and it treats its employees really well. Employees trust tapal and are very loyal with tapal. They have no retention plan or process to train employees in order to stay in the organization for longer period of time. All the employees are voluntarily free to leave or stay in organization. The rate of firing is very low. Employees are fired only in the case of misconduct.

Employee Turn Over

Employee turnover is a ratio comparison of the number of employees a company must replace in a given time period to the average number of total employees. A huge concern to most companies, employee turnover is a costly expense especially in lower paying job roles, for which the employee turnover rate is highest. Many factors play a role in the employee turnover rate of any company, and these can stem from both the employer and the employees. Wages, company benefits, employee attendance, and job performance are all factors that play a significant role in employee turnover.

Companies take a deep interest in their employee turnover rate because it is a costly part of doing business. When a company must replace a worker, the company incurs direct and indirect expenses. These expenses include the cost of advertising, headhunting fees, human resource costs, loss of productivity, new hire training, and customer retention -- all of which can add up to anywhere from 30 to 200 percent of a single employee's annual wages or salary, depending on the industry and the job role being filled.

While lower paying job roles experience an overall higher average of employee turnover, they tend to cost companies less per replacement employee than do higher paying job roles. However, they incur the cost more often. For these reasons, most companies focus on employee retention strategies regardless of pay levels.

Most companies find that employee turnover is reduced when they address issues that affect overall company morale. By offering employees benefits such as reasonable flexibility with work and family balance, performance reviews, and performance based incentives, along with traditional benefits such as paid holidays or sick days, companies are better able to manage their employee turnover rates. The extent a company will go to in order to retain employees depends not only on employee replacement costs, but also on overall company performance. If a company is not getting the performance it is paying for, replacement cost is a small price to pay in the long run

Employee Turn Over Ratio of Tapal Tea Pvt Ltd:The turnover ratio of employees of each organization is different from others. In Pakistan if the turnover ratio of the FMCG firms is greater than 15%, then it's a problem, but if it's below 15% then it's a healthy ration. The turnover ratio of Tapal Tea Pvt. is approximately 6% which is a very healthy ratio. They have approximately 350 employees permanently and the rest are contractual base. And this is one of the reason they have a lower turnover ratio.

Performance management

Performance management (PM) includes activities to ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on the performance of an organization, a department, employee, or even the processes to build a product or service, as well as many other areas.

First, a commitment analysis must be done where a job mission statement is drawn up for each job. The job mission statement is a job definition in terms of purpose, customers, product and scope. The aim with this analysis is to determine the continuous key objectives and performance standards for each job position.

Direct financial gain:

Grow sales

Reduce costs

Stop project overruns

Aligns the organization directly behind the CEO's goals

Decreases the time it takes to create strategic or operational changes by communicating the changes through a new set of goals

Motivated workforce:

Optimizes incentive plans to specific goals for over achievement, not just business as usual

Improves employee engagement because everyone understands how they are directly contributing to the organizations high level goals

Create transparency in achievement of goals

High confidence in bonus payment process

Professional development programs are better aligned directly to achieving business level goals

Improved management control:

Flexible, responsive to management needs

Displays data relationships

Helps audit / comply with legislative requirements

Simplifies communication of strategic goals scenario planning

Compensation

For the sake of value addition to the organization, Human Resource Supporters help in deciding the compensation & Benifits policy of Tapal Pakistan.

As Tapal Pakistan is a local company(Single proprietor), but nonetheless not less than a Multi National Company(System oriented)

"We are a Market Leader, We want to be a Market Leader, We have to be a Market Leader, So we should act like a market leader also"

(Mohiyuddin Khan Danish- HR Support Manager- Tapal Tea (Private) Limited)

So, for compensating such employees, who are working hard enough for the organization, to be known as a market leader, there are Extra Ordinary policies and practices. Tapal needs to award its employs with good compensation-High salary.

Now a question arises what is considered as a good compensation-High Salary?

For this purpose, Tapal does a external compensation survey, after every two years. This way they get to know that what the market is offering. Then they opt for a level, higher than that, which is being followed by the present market.

Benefits- Tapal Pakistan's Policy and practices:

Tapal Pakistan complies with the same rule of thumb, for Benefits' policies and practices, as in case of compensation.

The Benefits being offered for working in Tapal Pakistan are:

Leaves (Casual, Sick, and Annual leaves)

L-F-A (Leave Fair Assistance- a gross salary for an annual leave)

Bonuses (Festive & Performance based Bonus)

Utility (Mobile phone bills payment)

Health (O-P-D, & H-P-D benefits policy)

Subsidized meal (Served in the internal cafeteria)

Conveyance (Pick & Drop, or a Vehicle with respective in accordance to grades)

Funds (Provident & Gratuity)

Discounts (18% on Retail Products)

Corporate Social Responsibilities (CSR)

Tapal with its roots planted deep in the culture and society of Pakistan, takes pride in being a socially responsible and active entity with initiatives in the field of education, sports and medicine.

Under the banner of its social welfare platform Humqadam, Tapal strives to develop support systems for our country's infrastructure, and set a philanthropic example for others to follow. Some of our activities include:

Tapal Mezban Free Medical Camp:

In collaboration with Tapal Hamqadam; the Mezban brand actively contributes towards the well-being of its valued customers by organizing medical camps and other CSR initiatives. The free medical camps are set up in different towns of interior Sindh where healthcare is often hard to access. Patients get the chance to avail free checkups by physicians including ENT, Heart and Skin specialists. They also benefit from the availability of free medicine.

Tapal Chenak Free Eye Camp:

A three day Eye Camp was sponsored by Tapal at Kantio, Umerkot District. The free eye camps were set up to treat a prevalent eye disease in that area called "Cataract" disease. During the camp, more than 250 patients underwent surgical operations absolutely free and were also provided with follow up medicine.

The Citizen's Foundation Primary School - Tapal Campus:

With more than 51% of Pakistan's population illiterate and government expenditure on education only 2.3% of GDP, the team at Tapal feel that there is an intense need for private, socially active institutions to contribute towards raising the education standard by establishing quality schools. With this vision in mind, Tapal joined hands with The Citizen's Foundation (TCF) to build its own primary school campuses' in rural Sindh in order to promote quality education at the grass-roots level in an environment that encourages intellectual, moral and spiritual growth.

TCF is a professionally managed, not-for-profit organization set up in 1995 by a group of citizens concerned about the state of education in Pakistan and is one of the country's leading organizations in the field of formal education. The first unit of TCF Primary School - Tapal Campus, Hala, Sindh was made operational in August 2006. The second unit of TCF Primary School - Tapal Campus, Hala, and Sindh was completed and made operational in August 2008.

Total enrollment at the Tapal Campus in the year 2008-2009 was 295 students, with the female ratio out of the total strength being 31%. Given the conservative attitudes and cultural restrictions in the local community, this is a very encouraging turnout. With TCF's policy of hiring an all female faculty, more parents are feeling encouraged to send their daughters to schools, and we hope to achieve our goal of 50% female enrollment in the coming years.

Tapal honors the National Cricket Team for the Blind:

On the successful return of the National Cricket Team for the Blind after their victory in Chennai at the Blind Cricket World Cup 2002, Tapal held a ceremony at the Carlton Hotel to celebrate this achievement. Several celebrities were invited to inaugurate and participate in the festivities, and a cheque of Rs. 4 lakhs was presented by Mrs. Faizullah Tapal to honor the Blind Cricket Team.

Conclusion

Tapal tea is a perfect example of a local brand becoming a market leader through consistently improving themselves by implementing different strategies and creating value addition. When they started off in Pakistan they were doing retail and whole sale business with shop in Jodia Bazar. With foresight Tapal evolved formidable over time with the strategy of maintaining and continuously improving blending quality and vigorously pursuing brand building exercises. So in this way they adopted a well planned line of attack too which its competitors were unable to defend because of being engage in fighting for their market share with each other and underestimating a brand which was few years ago a shop in Jodia bazaar. Tapal's experienced Human Resource team has contributed over the years to the phenomenal growth of the brands, values, productivity and culture and the company. Its HR unit is now-a-days considered one of the best in Pakistan which signifies the growth of this company. It's because of their effective Human Resource and their profound performance in acting as a strategic unit, Tapal has overtook its competitors and there is hardly any competition for them in the market. In recent years, memorable CSR campaigns are also launched including the flood relief campaign in interior parts of Sindh. Besides, Tapal has worked for the welfare of Mankind in many other ways including free medical and eye camps and other events. Tapal is considered to be among Pakistani women's most preferred tea brands. The highly successful mix of great teas, modern marketing, effective HR department and its policies, proper distribution and promotional activities has resulted in overwhelming growth for Tapal over the last 50 years

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