Internships Provide An Opportunity For Students Commerce Essay

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Internships provide an opportunity for students to link theory with practice and further serve as a temporary employee for those organizations that have committed to participate in the internship program. Interns are expected to exhibit professionalism at all times during the experience. This professionalism should be evident in their interactions with clients, co-workers, and supervisors. Interns are expected to apply their knowledge, skills, and abilities in the performance of all duties, to behave ethically, and to follow all rules and policies of the organization.

Therefore, I was given with the task to complete my internship for degree of MASTER of BUSINESS ADMINISTRATION. For this purpose I submitted my C.V and internship reference letter (issued by University) along with a request to few organizations and finally I got positive answer from Pak Elektron Limited (PEL). At PEL I learnt a lot about company working environment as well as about professional implementation of what I have studied during my MBA program.

The purpose of this report is to explain what I did and learned during my internship period at Pak Elektron Limited (PEL). PEL enabled me to develop important Industrial Relationship and Administration skills which cannot be taught in the classroom. This internship program enabled me to compare theoretical ideas learned in the classroom within the world of work regarding administration experiences. Such experience not only increases my job prospects, but also teaches what is expected in terms of professional behavior.

Learning Objectives:

To learn Industrial Relationship and Administration department operations, awareness of working environment, its pros and cons, conduct SWOT analysis, identify problems, provide solutions also significance of human resource policies and their implementation.


Today no household is complete without the presence of an electronic or home appliance. Electronics and home appliances is a billion dollars industry. These two industries are not similar but the general perception in Pakistan is somewhat different. People in Pakistan believe that electronics and home appliances are one and the same thing. Electronic items include TVs, CD players, Cameras, Energy meter, Switchgear, Transformer and all technology products whereas home appliances include refrigerators, washing machines, micro wave ovens etc.

The sales of electronics and home appliances have been adversely affected in the wake of economic downturn largely due to the squeezing buying power of the consumers. Electronics and appliances account for most of the luxury items hence their sales tumble as a result of any unforeseen shift in the economic activity whereby people strive for their basic needs rather than going for such luxury items. There are certain high class segments in Pakistan which are slightly indifferent towards the current economic crisis because they are too rich to alter their lifestyles even in the current dire circumstances. However they do, in certain circumstances, think twice while spending money on luxury items. [1]

In short, the electronics and home appliance industry is currently facing crises due to the overall bad economic conditions. Also the intense competition, due to made in China products, discourages new players to enter into electronics and home appliances industry. In order to counter the intense competition, high initial investment is required to have a normal outlet and the returns from that investment are low when compared to the size of the investment.


The biggest problem looming over this industry is the cutthroat competition which becomes the reason for reduced profits and low sales. Also, it is difficult for new players to get established in the market. A number of retailers in the market are selling the same products at the same or slightly different prices. Moreover there are not many options available in the brands as well; every company/outlet is providing the same kind of products/brands. This is the reason that the old players who have built a strong and long-term relationship with their customers and have established their businesses clearly win in terms of sales.

Another problem being faced by this business is that some local companies of appliances/electronics when sell their products to the different outlets under agreed contracts also impose certain conditions on the price of the products. For example, if the purchasing price of a fridge is Rs. 20,000, then its sales price may vary from outlet to outlet; some businessmen can sell the fridge at a price of Rs. 22,000, some can sell at Rs. 21,500 and some at even Rs. 20,900. An outlet can attract customers by lowering their profits but there are some imposed conditions on the local companies that they will not sell the fridge below Rs. 21,000. E.g. an outlet that sells the fridge at less than Rs. 21000 will be fined and the supply of the products will be stopped until the fine is paid. This is highly unethical because the outlet owner purchases the products and they become his property. The price should be according to the owner's discretion and he should not be subjected to any kind of pressure. [1]


There are a limited number of brands in Pakistan hence not a wide variety to choose from these brands. Most of the companies are international but some local brands have also captured the market. Many products of international brands are being assembled here in Pakistan and the local companies are even manufacturing the products in Pakistan. In electronics industry (Energy meter, Switchgear, Transformer etc.), PEL has a very strong position in Pakistan. In addition to that, LG, Sony, Samsung, simians and Philips are the major brands. In home appliances, Dawlance has a very strong base in Pakistan. In addition to that, Waves, Orient, LG, Haier and PEL are also operating in Pakistan.


Pak Elektron Limited (PEL) was incorporated in Pakistan on March 03, 1956 as a public limited company under the companies Act, 1913 (replaced by company's ordinance 1984). Registered office of the company is situated at 17 Aziz Avenue, canal bank Gulberg V Lahore. The company is currently listed on all three stock exchange of Pakistan. The principal activity of the company is manufacturing and sales of electrical capital goods and domestic appliances.

These activities are organized under following divisions:

Power Division:

Manufacture of Switchgear, Energy Meter, and Transformers

Appliances Division:

Manufacture and Assembling of Refrigerators, Air Conditioner, Microwave Oven and Washing Machine

Pak Elektron Limited (PEL)

Power Division

Appliances Division

Refrigerators/ D. Freezers

Air Conditioner

Microwave Oven

Energy Meters

Power Transformers

Switchgears & kiosks

Compact Stations

Washing Machine


"To excel in providing engineering goods and services through

Continuous improvement"


To provide quality products & services and to the complete satisfaction of our customers and maximize returns for all stakeholders through optimal use of resources.

To focus on personal development of our Human Resource to meet future challenges.

To promote good governance, corporate values and a safe working environment with a strong sense of social responsibility.


Pak Elektron Limited was set up in 1956 as a joint venture with one of the largest and renowned manufacturers of electrical equipment Messrs. AEG of West Germany for manufacturing Transformers, Switchgears and Electric Motors etc. The entire job of machinery requirements and layout of the factory building was planned and implemented by AEG who produced very well balanced facility for the design and manufacture of the above equipment and the commercial production was commenced on 22 November 1956. Up to 1962, when AEG finally phased out, the designing and manufacturing of all equipment was carried out jointly by AEG experts and PEL personnel. PEL staff, in the mean time, had received specialized training in USA and West Germany which enabled PEL to establish itself as the leading manufacturers of electrical equipment in the country with an excellent reputation for high quality and thus PEL came to be known as "THEQUALITY CONSCIOUS COMPANY".

After conclusion of agreement with AEG, total share holding of AEG was purchased by the then sponsors Malik Brothers. The production continued with AEG designs with much greater emphasis on the quality and reliability of the products which earned unique distinction of supplying electrical equipment to projects of paramount national importance like Mangla Dam and Tarbela Dam Projects. PEL equipment was approved by consultants of international repute including Preece Cardew & Rider (England), Binnie & Partners (England), Harza Engineering International (USA) and Miner & Miner International Inc. (USA). The majority shares were acquired from Malik Brothers by Saigol Group on 11 October 1978 and immediately on takeover the new management chalked out both long term and short term plans to put the company back on the path of progress.

As a part of first phase of its BMR Programmer the new management injected the additional working capital of Rupees 8.98 million and Bridge Loan of Rupees 7.50 million (against the public issue of its shares) was provided by the ICP-led Consortium. As a part of long term plans, the manufacturing of window type Air conditioners was taken up in 1981 and was immediately established for quality. The company launched the second phase of its BMR and expansion of the existing product line in the year 1987 and imported machinery for the manufacture of Refrigerators and Deep-freezers for a total value of Rupees 22.11 million. For the project National Bank of Pakistan the leading bank of the company provided the financing. Like Air conditioners these products have also been well received by the local market, which speaks highly of the confidence, the consumer has developed in the quality products manufactured by the company.

During the year 1990 the company has signed an agreement with Messrs HITACHI of Japan for the manufacture of Vacuum Circuit Breakers. The company has entered into an agreement with Pakistan Industrial Credit and Investment Corporation (PICIC) for a foreign currency as well as local currency loan of Rupees 25 million for the expansion, balancing, modernization and replacement of the existing plant. The machinery has come into operation in October 1991 and with the balancing, modernization and replacement of machinery, the production capacity of Refrigerator Section will reach a level of 252,450 cubic feet. The management of the Company decided to further expand its operation by establishing a plant for the manufacture of compressors for refrigerators and deep freezers. The technical know-how agreement has been signed with M/S NECCHI Compressor, Italy for the assembly and progressive manufacturing of compressors for refrigerators and deep freezers.


In 1948, the Saigols migrated from Calcutta and initiated their business in Lyallpur (later named to as Faisalabad), the textile city of Pakistan, under the banner of Kohinoor Industries Limited.

Kohinoor Textile Mills:

The Saigols set up the first major textile unit, The Kohinoor Textile Mills under the umbrella of Kohinoor Industries Limited. The Kohinoor Textile Mill has state of the art quality control from raw material to finished product manufacturing. Its laboratory is top rated amongst the best laboratories in Pakistan for testing of textile raw materials, other inputs and yarn.

Initial Capacity: 25,000 spindles

Current Capacity: 71,648 spindles

Pak Elektron Limited (PEL):

In 1978, the Saigol Group of Companies purchased major shares of Pak Elektron Limited. At that juncture, the company was only manufacturing transformers and switchgears. With the Saigols in management, PEL started expanding its product range by entering into Air Conditioner manufacturing.

The PEL Group comprises two divisions:

Appliances Division

Power Division

Appliances Division:

PEL's Appliances Division is the flag carrier of the Saigol Group. This Division of PEL consists of home appliances manufacturing. In 1981, PEL window type air conditioners were introduced in technical collaboration with General Corporation of Japan. In 1986-87, the company started manufacturing of refrigerators in technical collaboration with M/s IAR-SILTAL of Italy.

In 1987, PEL deep freezers were also introduced in technical collaboration with M/s Ariston of Italy. In 2006, the Company has started manufacturing of split type air conditioners of various capacities as the customer choice has shifted from window type to split type air conditioners. The product has received good response from the market, which encourages the company to multiply its production in the coming years.

Today, PEL has become a household name. Its products are not only in great demand in the local market but the Company has also started exporting its appliances to foreign markets.

Power Division:

PEL Power Division is one of the major electrical equipment suppliers to WAPDA & KESC. Since 1956 the company manufactures transformers, energy meters, switchgears, kiosks, compact stations and shunt capacitor banks. PEL also has had the privilege of getting its equipment approved and certified from well-reputed international consultants such as:

Preece, Cardew and Rider, England

Harza Engineering Company, USA

Snam Progeti, Italy

Societe Dumezm, France

Miner & Miner International Inc. USA

Ensa, France

Pak Elektron Limited alone has a turnover of over 180 million US Dollars. [3]

Saritow Spinning Mills & Azam Textile Mills:

In 1987, the Saritow Spinning Mills and Azam Textile Mills were established under the banner of Saigol Group of Companies. Saritow Spinning Mills is a spinning unit with 25,440 spindles capacity. Facilitated with the most modern and efficient Japanese and European machinery, its knitted yarn is renowned in the Far East and Europe for its fine quality. Azam Textile Mills is reputed for its carded and combed yarn, which is quite popular for premier knitting and weaving.

Kohinoor Power Company Limited:

In 1991, the first power unit commissioned in Pakistan, in the Private sector, was Kohinoor Power Company Limited. Its present production capacity is 15 MW.

Kohinoor Energy Limited:

1995, another power unit, Kohinoor Energy Limited, was established. Kohinoor Power Limited is a 120 MW power plant located on the outskirts of the city of Lahore. This project has an annual turnover of $80 million. [3]


Pak Elektron Limited (PEL) is the pioneer manufacturer of electrical goods in Pakistan. It was established in 1956 in technical collaboration with M/s AEG of Germany. In October 1978, the company was taken over by Saigol Group of Companies. Since its inception, the company has always been contributing towards the advancement and development of the engineering sector in Pakistan by introducing a range of quality electrical equipments and home appliances and by producing hundreds of engineers, skilled workers and technicians through its apprenticeship schemes and training programmes.

The company comprises of two divisions:

Appliances Division

Power Division


This Division of PEL consists of appliances manufacturing.

PEL Air Conditioners:

PEL window-type air conditioners were introduced in 1981 in technical collaboration with General Corporation of Japan. Ever since their launch, PEL air conditioners have a leading position in the market. PEL air conditioners cooling performance has been tested and approved by Copeland and ITS USA. With the shift of user's preference from window type to split type air conditioners, PEL has started manufacturing split type air conditioners.

PEL Refrigerators:

The manufacturing of refrigerators started in 1986-87 in technical collaboration with M/s IAR-SILTAL of Italy. Like the air conditioner, PEL's refrigerators are also in great demand. Today, PEL Crystal has 30% market share. Its cooling performance is tested and approved by Danfoss, Germany and its manufacturing facility is ISO 9002 certified by SGS Switzerland. [4]

PEL Deep Freezers:

PEL deep freezers were introduced in 1987 in technical collaboration with M/s Ariston of Italy. Because of durability and high quality, PEL deep freezers are the preferred choice of companies like Unilever.

PEL Microwave Ovens:

PEL the trustful company name in home appliances all over the country, now introduced all new models of "PEL Silver-line" Microwave Ovens. Now PEL customers can have different models of PEL Microwave Ovens in which they can enjoy the grilling feature as well. PEL Microwave Ovens are available in different sizes and inner cavities (steel & painted).

PEL Silver-line Water Dispenser:

Water dispensers are a welcome addition to PEL range of home appliances. Our Silver-line and Life-Stream water dispensers make life a little easier and fridge space a bit more plentiful. While Cold water refreshes your mood in burning summer, Hot water on demand is great in the office for packets of soup, instant coffee and tea.

PEL Washing Machine (Magic Clean - PWM 7700-N):

The PEL Semi Automatic Luxury Wash - 7700-N equipped with Japanese technology has a 100% rust proof plastic body with a big multi pilaster. It can handle heavy loads and has a quick dry spin. In addition, it supplements a drain switch that quickly drains out all the excess water. So treat yourself with the Luxury Wash - washes away heavy loads and dries them up quickly. [4]


PEL Power Division manufactures energy meters, transformers, switchgears, Kiosks, compact stations, shunt capacitor banks etc. All these electrical goods are manufactured under strict quality control and in accordance with international standards. PEL is one of the major electrical equipment suppliers to Water and Power Development Authority (WAPDA) and Karachi Electrical Supply Corporation (KESC), which are the largest power utilities in Pakistan.

Over the years, PEL electrical equipment has been used in numerous power projects of national importance within Pakistan. PEL has the privilege of getting its equipment approved and certified by well-reputed international consultants such as:

Preece, Cardew and Rider, England

Harza Engineering Company, USA

Snam Progeti, Italy

Societe Dumezm, France

Miner & Miner International Inc. USA

Ensa, France

In spite of stiff competition from emerging local and multinational brands, PEL Group's appliances and electrical equipments have remained in the spotlight due to constant innovation. Strategic partnership with multinationals of repute have enabled the PEL Group to incorporate new technologies into existing product ranges, thus giving the Pakistani market access to innovative, affordable and quality products. [4]



Mr. M. Naseem Saigol (Chief Executive Officer)

Mr. M. Azam Saigol

Mr. Murad Saigol

Mr. Zeid Yousaf Saigol

Mr. Mohammed Abdullah Haroon Saigol

Mr. Haroon Ahmad Khan (Managing Director)

Mr. Akber Hasan Khan (NBP Nominee U/S 182 of the Ordinance)

Ms. Tahira Raza (NBP Nominee U/S 182 of the Ordinance)

Mr. M. Khurram Khawaja (NBP Nominee U/S 182 of the Ordinance)

Mr. Syed Zubair Ahmad Shah (NIT Nominee)

Audit Committee:

Mr. M. Azam Saigol (Chairman/Member)

Ms. Tahira Raza (Member)

Mr. Syed Zubair Ahmad Shah (Member)

Mr. Haroon Ahmad Khan (Member)

Company Secretary:

Mr. M. Omer Farooq

Chief Financial Officer:

Syed Manzar Hasan (FCA)


M/s Yousaf Adil Saleem & Co. Chartered Accountants

(A member firm of Deloitte Touche Tohmatsu)

Legal Advisors:

M/s Hassan & Hassan Advocates

Registered Office:

17-Aziz Avenue, Canal Bank, Gulberg-V, Lahore

Tel: 042-35718274-5, 35717364-5

Fax: 042-35715105

E-mail: [email protected]

Factory/Head Office:

14 Km, Ferozepur Road, Lahore

Tel: 042-35811951-7 (7 Lines)

Website: [5]



Managing Director

Power Division


Industrial Relationship & Administration

Human Resources

Internal Audit


Director Operations


Appliance Division



Customer Service


Product Development

Quality Control & Assurance


This chart shows the overall management hierarchy (Who reports to whom) of PEL with the grades of employees which are assigned by management of PEL.

General Managers

(M6 & M5)

Senior Managers



(M3 & M2)

Assistant Managers



(E1, E2 & E3)

Managing Director

(Appliances Division)

Managing Director

(Power Division)


Director Operations

(Appliances Division)

Director Operations

(Power Division)


Juniors Executives



(S1, S2 & S3)



Non Graded (NG)


Workers (WK)


At PEL Centralized decision making is observed by me. Board of Directors/Top management construct course of action, regulations along with decisions and communicate to the middle and lower levels.


In Pak Elektron Limited following major departments are working:

Buying Department

Appliance Division

Power Division

Production Department

Appliance Division

Power Division

Accounts Departments

Finance Department

Industrial Relationship & Admin Department

H.R Department

Marketing Department

Appliance Division

Power Division

Sales Department

Appliance Division

Power Division

Quality Control/Assurance Department

Customer Service Department

Commercial & Foreign Procurement Department

Maintenance Department

Appliance Division

Power Division

Stores Department

Information Technology Department

Development Department

Appliance Division

Power Division



Starting electronics and home appliances business require initial investment, permission from the concerns, distributors, dealers or direct sellers, competitive prices and payment procedures etc.

For a manufacturer, there are two ways of selling their products. First is to establish offices in different cities and then sell products to different outlets in that particular city. In this process the company office has to deal with different outlets, so the risk is high but returns are also high as there is no involvement of middleman. The other way of selling the products is through distributors. This is easier for a company as it has to deal with only one office hence the risk is low, but since a third party is involved in this transaction, the profits are also low.

There is intense competition in electronics and home appliances markets the only way of attracting customers is by lowering the prices as this business is mostly based on walk-in customers. In electronics and home appliances industry price is determined by the number of factors, like, how many companies are in market, how many products and in what quantity has been purchased and whether it is practical to lower the price without compromising profit margins. Lowering the price is easy especially when manufacturers give certain discounts to the buyers.

The payments in electronics and home appliances business are usually made on credit. A normal period of 30 days is in process in the market. When a certain product is purchased from the manufacturer of a vendor, the payment has to be made within 30 days. Good relationship with vendors can be helpful in increasing the credit period by 10 to 15 days. New companies sometimes also face problems of credit time. They usually purchase products on cash till the time they develop a name in the market.

Business Process Chart:

Distributers/ Sellers

Raw Material Suppliers

Company Stores

Production Process

Finish Goods Stores

Marketing Activities

End Users/ Customers



Above chart shows that how the electronics and home appliances industry conduct business activities under the normal circumstances. Companies purchase the raw material from local and foreign suppliers, which reach at companies stores through own/private vehicles. Companies manufacture the finished products through processing of raw material. From the finished goods stores final products are sent to the distributers/sellers so that the end users or customers can easily get that product. During that companies also involve the marketing activities in business process, its help the companies as well distributers/sellers in attracting the large number of buyers which ultimately give them profits. At the end some portion of profit reinvested to continue the business process again.

Business process of PEL is almost similar to the business process of overall electronics and home appliances industry.


IR is a multidisciplinary field that studies the employment relationships. Industrial relation is increasingly being called EMPLOYMENT RELATIONS due to its importance of non-industrial employment relationships.


IR & A department in PEL is working with their full potential for the betterment of their employees and company. Every person is trying hard to meet the needs of their employees to flourish their organization. Every person is an institution in itself and, is managing its work.














My key learning's are about the operations carried out in IR & A at PEL.

Maintaining the record and checking of the attendance of the staff of the organization including all PEL units in Pakistan

Salaries of the employees from Non- grade workers( NG to S1)

System of hiring and firing of the of NG to S1 grade

Orientation of the new employees

Update the files and their induction forms

Checking of the applications of marking of the attendance

Sorting out the CV's

Performance appraisal report analysis

Analysis of late comers attendance

Data entry on excel

How to enter the shift changing in computer

Analysis of the employee personal files

Process of giving warnings to the concerned employees

Preparation of salary breakup

How to record the leaves in the computer software

To make Final settlement Bill

Learned the interpersonal skills importance

Learned the punctuality

Learned the confidence

Learned the seriousness at workplace

Learned the importance of training and development for employee

Learned the maintenance of work

Learned how to add increments


Following is an assessment of PEL's Strengths, Weaknesses, Opportunities and Threats:


ISO Certification

Brand Name

Strong Dealer Network

Market Leader in power division

Second Most Sold Refrigerator

Quality Products

Research and Development Department


Heavy loans from financial institutes

Lack of Advertisement and Marketing Strategies

Inefficient use of Capacity


Exploration of market in Pakistan

Foreign Markets

Increase in Product Range

Increase in Production capacity


Energy Crisis

Price War and China made products

Political Instability

Smuggled Goods Market

Good Performance of Competitors


Pak Elektron Limited has raised very expensive loans so they should retire their expensive loans.

They should carefully study their competitors.

Their operating cost is very high so they should control their operating expenses.

When supervisor provide negative feedback he/she should immediately counterbalance it with positive statement for the purpose of encouragement in that situation.

There should be a continuous monitoring of performance. When performance deviates from plans one does not have to wait for the next periodic review to correct it.

The supervisor and subordinate should discuss the situation immediately so the corrective actions can be taken at once in order to avoid the major disasters.

Whether performance appraisal discussions are held monthly, quarterly, annually appraise should be clear about what he/she is doing right and wrong, and how he/she can overcome their deficiencies for the future appraisal.

Performance appraisal should be conducted in a way that employee should not perceive it as a fatigue or threat for their job but it should take it as an opportunity to add or contribute more value in work of their organization.

Their capital structure is mostly constituted of debt, which decreases the risk but it also decrease profits as they are more liabilities.

PEL needs to strengthen its advertising policy as its competitors are mainly focusing on their marketing to attract customers.

The managers are very cooperative but the behavior of executives especially towards female employees or internees is discriminatory. The environment is hostile and male oriented.

The mess area needs to be more hygienic and the food available is the same every day. There needs to be more variety on the menu so that employees actually appreciate the food they get.

They need to work on their marketing strategy as their brand name is gradually deteriorating; their alliance with LG has only increased the sales of LG products as people are more aware of their brand.