Leadership & Management

DEVELOPMENT IN PAKISTAN

By

NIKHAT AMBREEN

MBA (EXEC)
Institute of Business Management
Karachi, Pakistan
2008

LEADERSHIP & MANAGEMENT

 DEVELOPMENT IN PAKISTAN

By

NIKHAT AMBREEN

UNDER THE SUPERVISION OF

 Dr. Fasihul Alam

MBA (Exec)
Institute of Business Management
Karachi, Pakistan
2008

Introduction:
Every step requires management and leadership skill; just after the decision to built an
organization. From planning of organization type to the laying down the first pillar and hiring of
first employee to built up a large corporation; thinking, planning, proceeding, implementing
and hiring, motivating and leading all needs such skills so that the organization become
successful and maintain its position in this competitive world. If we would like to analyze that
how organizations in Pakistan develop their management and leadership skills then we have
to know the general culture of an organization in Pakistan.
We are facing leadership crises in Pakistan. Our political leadership lacks vision, agenda and
Personal Charisma. Organizational Leadership is at a premium today and there is a clear
recognition of the fact that in most situations the enthusiasm & motivation aroused in people
by powerful & positive leadership is the most potent strategic weapon that provides sustained
competitive advantage.
Today, management is defined as, “The process of getting things done though others”;
whereas leadership is defined as “The process of getting things done willingly through
others”. The difference between the two definitions is one word but that word willingness and
the degree of willingness aroused determine the effectiveness of the leader. Positive and
powerful leader has an extraordinary ability to arouse such degrees of willingness &
motivation in people that the impossible seems to become possible. The willingness aroused
by a leader in organizational situations translates into achievement & excellence.
Scope of Study

Study Objective:
Good leaders are made not born neither they created overnight. If a person has the desire
and willpower, he or she can become an effective leader. Good leaders develop through a
never ending process of self-study, education, training, and experience. An organization helps
these people to learn and groom these skills. In order to choose new leader and train the
current leaders, Organizations must self understand the fundamentals of leadership before
making decisions about their leadership. Becoming an effective leader involves considerable
time and effort to polish the necessary skills and abilities.

In this study we will try to judge an organization on the basis of their role as a leadership
developer. What measures a company takes to enhance the skills of their leaders. How a
service industry is different from manufacturing sector in term of their human resource
development.

Methodology
There are various types of sampling plan used for conducting survey like simple random
sampling, stratified random sampling or cluster sampling etc; we perform stratified random
sampling for this study. We take total number of employees and distribute them in three strata
– Top Management; Middle Management and Low level Management. From each stratum
two interviews have been conducted, so the total 6 sample units were selected from an
organization.
Sample Size Face to face interview has been conducted to the 12 managers related to two
organizations; one from services sector and other from manufacturing sector.

Study Limitations
Timing of Study: The ending of financial year. Month of July is usually the busiest time
of organization calendar as they do not have to close the books of year ending in June but
also make plan and schedule for the current year. At this crucial time, management was
reluctant to meet and share the important features of the organization regarding human
resource.
Non Availability of study material: There is very much little research on management practices
in Pakistan. It is very much difficult to find out the empirical effect on theory due management
culture, type of organization, general organization behavior towards the development of their
employees in general and leadership development in specific.
Hesitation from Information Sharing: Managers were either do not have the information about
their organization structure, policies, and training and development procedures or were
hesitate to share the information. The hesitation factor involve throughout the period of
completion of survey as managers have a perception that they could face certain implication
to share outside from organization.

Leadership Development – Theoretical Review

The real leader has no need to lead - he is content to point the way.
- Henry Miller

Leadership is a process by which a person influences others to accomplish an objective and

directs the organization in a way that makes it more cohesive and coherent. Leaders carry out
this process by applying their leadership attributes, such as beliefs, values, ethics, character,
knowledge, and skills. Although the position of a manager, supervisor, lead, etc. gives a
person the authority to accomplish certain tasks and objectives in the organization, this power
does not make him or her a leader rather simply a boss. Leadership differs in that it makes
the followers want to achieve high goals with high spirit and vision.
A person can be a leader as a resultant of an accident or an unusual event.
○ Trait Theory: Some personality traits may lead people naturally into leadership roles.
○ Great Event Theory: A crisis or important event may cause a person to rise to the
occasion, which brings out extraordinary leadership qualities in an ordinary person.
○ Transformational Leadership Theory: the most widely accepted theory that, People
can choose to become leaders. People can learn leadership skills.
The basis of good leadership is honorable character and selfless service to his organization.
In the employees' eyes, leadership is everything that effects the organization's objectives and
their well-being. Effective leaders concentrate on what they a r e , what they k n o w , and what
they d o .

What makes a person want to follow a leader? People want to be guided by those they
respect and who have a clear sense of direction. To gain respect, they must be ethical. A
sense of direction is achieved by conveying a strong vision of the future. As Lewis Lapham
said, Leadership consists not in degrees of technique but in traits of character; it requires
moral rather than athletic or intellectual effort, and it imposes on both leader and follower alike
the burdens of self-restraint.

Principles of Leadership
1. Know yourself and seek self-improvement – Understanding of the attributes be,
know & do helps to know the self. Seeking self-improvement means continually
strengthening your attributes. This can be accomplished through self-study, formal
classes, reflection, and interacting with others.

2. Be technically proficient - A leader must know his job and have a solid familiarity of
the tasks of his team mates.
3. Seek responsibility and take responsibility for actions - Search for ways to guide
the organization to new heights. And when things go wrong, they always do sooner or
later -- do not blame others. Analyze the situation, take corrective action, and move on
to the next challenge.

4. Make sound and timely decisions - Use good problem solving, decision making, and
planning tools.

5. Set the example – A leader is a role model for their team mates and followers. We
must become the change we want to see - Mahatma Gandhi

6. Know his team mates and look out for their well-being - Know human nature and
the importance of sincerely caring for their workers.

7. Keep his workers informed - Know how to communicate with not only subordinates,
but also seniors and other key people.

8. Develop a sense of responsibility in workers - Help to develop good character traits

that will help them carry out their professional responsibilities.

9. Ensure that tasks are understood, supervised, and accomplished – A leader know
the proper use of his communication tools.

10. Train as a team - Although many so called leaders call their organization, department,
section, etc. a team; they are not really teams...they are just a group of people doing
their jobs.

11. Use the full capabilities of your organization - By developing a team spirit, a leader
will be able to employ his organization, department, section, etc. to its fullest
capabilities.

Major Ingredients of Effective Leadership

1. The ability to develop a climate that is conducive for motivation through personal example.
2. A leader’s ability & confidence to inspire.
3. The ability to comprehend human behavior and apply this knowledge to people & situation.

Role of Today’s’ Effective Leader

The various roles played by Effective Leaders of today are identified as follows:
1. Envisioner 2. Role Model 3. Motivator 4. Goal
Setter
5. Initiator 6. Decision Maker 7. Informer 8. Conflict
Resolver
9. Controller 10. Team Builder 11. Spokesman 12. Crises
Manager
Intellectual Characteristics of Effective Leader
1. Originality 2. Far-sightedness 3. Receptiveness
4. Decisiveness 5. Sense of Timing 6. Intelligence
Personality Characteristics
1. Personal Integrity 2. Self-confidence 3. Emotional Balance &
Control
4. Adaptability 5. Assertiveness 6. Tough Mindedness
7. Resourcefulness 8. Tolerance of Stress 9. Perceptual Objectivity
10. High Need for Achievement
Task Related Characteristics:
1. Task Knowledge & Expertise 2. Administrative Ability
3. Responsibility Acceptance 4. Deadline & Schedule Orientation
5. Team Management Ability 6. Proactive Orientation
7. Ability to identify and Focus on Key Issues 8. Decision making & problem Solving
Socially Related Characteristics:
1. Humanison & Empathy 2. Personal Impact / charm
3. Socio-cultural Sensitivity 4. Interpersonal and Social Networking
5. Social Participation & Friendliness 6. Tact & Diplomacy
Leadership Skills
Leader must have some basic skills to perform his duties effectively. A list of suggested
leadership skills critical to success in the global economy includes the following:
1. Cultural Flexibility: Cultural awareness and sensitivity recognize and celebrate the value of
diversity in their organizations.
2. Communication Skills: Written, verbal, body language & listening skills.
3. HRD Skills: Development of the human resources training, career counseling, job
evaluation.
4. Creativity: Problem solving, innovation, setting goals and assisting subordinates to be
creative.
5. Self Management of Learning: Learning is a continuous process; learning new methods,
skills and technology
6. Managing Time & Stress.
7. Delegating
8. Motivating & Influencing Others
9. Team Building
10. Managing Conflicts Skills & Abilities for Effective Leadership
• Social Objectivity: Ability to act free of racial, ethnic, gender or other biases.
• Inner work Standards: Ability to set & meet highly personal work goals.
• Self-Understanding: Ability to recognize one’s strengths & weaknesses.
• Introspection: Ability to learn from experience & self-study.
• Vision: Ability to imagine a different & better situation and ways to achieve it.
• Entrepreneurism: Ability to spot & take advantage of opportunities.
• Empowerment: Ability to share influence & control with others.
Effective Leadership Trait
• Intelligence & Analytical Ability
• Energy & Personal Drive
• Self- Confidence
• Dominance & Assertiveness
• Desire to Lead
• Honesty & Integrity
• Knowledge & Expertise
• Need for Achievement
• Creativity & Intuition

Organization Profile:
Arif Habib Investment Management Ltd
Arif Habib Investment Management Limited was incorporated on August 30, 2000 as an
unquoted public limited company under the Companies Ordinance 1984, with registered office
in Karachi. The company is registered as an Asset Management Company, Investment
Adviser under the Non-Banking Finance Companies Rules, 2003. Pakistan Stock Market
Fund (PSM) and Pakistan Income Fund (PIF) are the flagship fund of the company
The company manages 5 open-end, 3 closed-end and 2 pension schemes, having assets
under management of PKR 25.782 billion.
Mission Statement
To establish a centre of excellence in the Pakistan fund management community,
utilizing the best local and international expertise to provide value-for-money products,
this meets the needs of Pakistani and overseas investors.
Professional Education, Training and Development Annexure A
Recruitment policy Annexure B

Dewan Farooq Motors

Dewan farooq motors operating under the umbrella of Dewan Mushtaq group. Dewan
Mushtaq Group is one of the most highly respected and reputed industrial groups in Pakistan.
The Group is amongst the top ranking business houses of the country with an annual turnover
exceeding Pak Rupees 30 billion. The main fields of business cover textiles, sugar,
automobiles, polyester staple fibre and equity participation in a private bank.
Dewan Farooq Motors, Dewan Mushtaq Motors, Dewan Automotive Engineering, Dewan
Motorcycle, Dewan salman Fibre, Dewan sugar Mills, dewan Textile, Dewan Farooq
Spinning, Dewan Cement are some of the many companies of this prestigious group.
Dewan Mushtaq Group entered into the automobile industry five years ago. Dewan Farooque Motors
Limited signed Technical License Agreements with Hyundai Motor Company and KIA Motors Corporation
in December 1998, as the progressive manufacturer and distributor of Hyundai and Kia vehicles in Pakistan.
Dewan Farooque Motors Limited acquired franchises of Hyundai Motor Company and KIA Motors
Corporation to bring in Korean technology to the country to produce vehicles of high quality at reasonable
prices, offering the highest value for money.

Over the past five years, Dewan Farooque Motors Limited (DFML) has earned national recognition in
producing a diversified range of vehicles for people from different walks of life. The plant has state-of-the-art
production facilities located at Sujawal, around 145 km from Karachi in southern Pakistan

Mission Statement:
The mission of Dewan Mushtaq Group is to be the finest Organization, and to conduct
business responsibly in a straightforward way.
Our basic aim is to benefit the customers, employees and shareholders, and to fulfill our
commitments to the society. Our hallmark is honesty, initaitive and teamwork of our people,
and our ability to respond effectively to change on all aspects of life including technology,
culture and environment.
We will create a work environment, which motivates, recognizes, and rewards achievements
at all levels of the organization, because IN ALLAH WE TRUST & IN PEOPLE WE
BELIEVE. We will always conduct ourselves with integrity and strive to be the best.
Corporate Philosophy:
The Group's corporate philosophy is based on following principles laid down by its founding
fathers and pioneers:
• Credibility, integrity and honesty
• Straight forward business dealings
• Work as a worship
• Spirit of social service and human respect
By following the above philosophy, the Group enjoys an excellent corporate image amongst
business community, banks, financial institutions, and governmental circles. The market price
of Group companies’ shares is the most prominent reflection of this confidence.
The Group presently employs over 12,000 persons at its various plants and offices.
Human Resource Development
The group is determined to establish a platform where it can provide the knowledge and skills
to its employees so that they will be the torch-bearers of the organization tomorrow. DEDC is
an in-house management development organization for excellence in training. It has been
established with the explicit purpose of ensuring organizational growth and development and
to serve the need for wisdom in corporate decision-making, thus playing an important role in
the long-term success of Dewan Mushtaq Group.
Training & Development Programme
our training and development programme is an in-house programme that is designed to
change the way we work and think. Our faculty is a blend of individuals from diverse
backgrounds comprising of scholars and educationists of the corporate world.
Our Mission
"To provide a forum for exchange of ideas and knowledge with thorough training and
development of individuals in the field of business so that they are well equipped to face the
dynamic global environment."

Our Objectives
• To spark new and innovative ideas in the individuals so that they are competitive
enough to face the global economic and market environment.
• To equip DMG individuals with a thorough understanding of managerial and
technological skills in a manner that has a profound effect on their personality and
character.
• To build leadership qualities in individuals so that they can make use of it efficiently
and effectively in order to make every unit productive.
• To help to bring about a paradigm shift by creating a dynamic and positive learning
environment and changing our corporate culture.
• To help DMG to cope with knowledge-based economy.
• To provide DMG staff with basic conceptual training and impart latest managerial
concepts / skills, so as to make them "knowledge workers" and on-line to deal with
the challenges of modern business.
• The core of DEDC training programme is that the concepts and training that are
imparted should be thoroughly applied and further growth and development of an
individual should be related through training and development.
Our Assurance
We believe that DMG members are our most precious resource, our human capital. We also
believe 'human progress' to be the worthiest of goals through recruiting, developing,
motivating, rewarding and retaining personnel of exceptional competence and providing them
with a healthy working environment, competitive compensation, excellent opportunities for
growth and a high degree of job security.
Our Commitment
We are committed to surpass competition by unleashing the constructive creative abilities and
energies of our group's employees.
Seminars / Training Courses Conducted
• The Seven Habits of Highly Effective People
• Star Office Training
• Communication Concepts and Skills, Level-I
• Communication Concepts and Skills, Level-II
• Seminar on Business Ethics
• Finance for Non-Finance Executives
 • Presentation Skills
• Office Etiquettes and Mannerism
• 5S-Housekeeping
Future Programmes
• Teamwork
• Time Management
• Effective Meetings Basic Supervision Skills (Urdu) Industrial
• Safety, Fire fighting & First Aid
• Motivation & Leadership
• Knowledge Management
• Emotional Intelligence
• Negotiation Skills
• Change Management
• Conflict Management
• Skills in Selling
• Customer Service
• ISO 9001
Study Analysis
1. Age

The average age of the senior manager in services industry was 30 years as compare to the
37 years old senior manager in manufacturing organization. Similar for the middle managers
and bottom level managers where the average age of in services organization is lesser than
the manufacturing organiztion.
2. Job Experience

A person can reach on senior management earlier in services industry as compare to the
manufacturing industry. A manger with total 6 years of experience can reach the senior
management position in organization of services industry while in manufacturing a senior
manager have to spend more time to reach the senior management position.
3. Professional Training
Respondents from both organiztion have attended some training and development courses
like
• Communication skills
• Objective and goal setting
• Leadership Grid
• Presentation skills
• Sales skill
• Time management
• 5S Housekeeping
• Forecasting & Financial Modelling
4. Funding Authority
All respondents avail those programs that are funded by employer. While interviewing the
managers, it was highly observe that professionals lean towards those courses and
workshops that were funded by their employer. As some of the training courses were the
regular part of the company policy of training and development.
Employees opt those courses based on self or family funded that will help them to get higher
promotions within the organization or help them to avail other market opportunities.
5. Training Preffered

In-house training mode is most preferable one. 100% of the bottom level managers while 95%
middle managers prefer in –house training. On the other hand 25% senior managers prefer to
take off-shore training.
6. Selection Norm for Training
According to 100% of the respondents, there is certain criteria is set for the selection of
employee for the training and need is one of sub criteria for the selection.
7. Training Method Preferred
Bottom level managers feels their jobs are at the stage of learning things. It is better for them
to avail all training on job so that they can perform their job more effectively and effeciently.
The Mid level mangers prefer to do some long duration courses but still there is minimal (3%)
of them off the job training. The idea behind for preferring the on job training is to remain in
touch with the present job and organization. 20% of the senior managers prefer the off the job
training.

8. Department that Organizes the Training

There is an ambiguity among managers about the department title that organizes the training
and development sessions. It can be viewed that the managers are agree on the non existent
of HRD.
8. Career & Training Development Opportunities

50% of the senior managers & bottom level managers thinks that there is high opportunities of
career development while the other 50% thinks there is low opportunities for development in
their organizations. Mid Level mangers are more optimistic and all 100% respondents of this
group perceive high opportunies for their career devlopment in their orgaizations
9. Rating of Organizations’ Features

10. Rating of Organization

Conclusion
The services sector is very much diversified in nature; the financial services are one of the
fast pace growing industry in Pakistan. A large number of banks, investment companies, and
brokerage houses were started in previous years. The booming sector needed experienced
work force specifically managers, policy makers and regulators who can develop and run the
business.
All these causes for the induction of low aged managers as the industry started hiring the
human resource came back to country after getting business degrees and the newly qualified
business and management graduates. Organizations upgraded the existing managers on
high post to bridge the gap.
The manufacturing sector, on the other hand, needs more technical skills in addition to the
studies. It takes more time to move up on the career ladder.
In the front of the management practices in Pakistan the study reveals that besides having
qualified managers, the organization has its own culture. The managers use their full efforts to
achieve the business objectives and goal within that culture. The organization culture just not
only develop by the organization members rather the business environment, co business
organizations that linked up with the organization core business, the basic mentality of the
owner manager, regulatory bodies and general business practices.
Leadership development is one of the important features of organizational development. It
becomes the basic criteria for an organization for getting good rating in the industry. The
organizations that I have opted are one of the good organizations in the business world of
Pakistan. They have allocated specific budget under the training and development head.
The perception prevailing among the employees that technical and targeted trainings would
be valued added for the employee career development and for the organization as well. While
on the other hand, the trainings like management and communication skills, leadership and
time management are just only a part of regular usage of allocated budget.
The training needs implementation. When an employee returned back after attending such
courses he feel changing in his mind and he is motivated to bring alterations in his
organizations. Within two to three days he suffered many problems in performing his job tasks
according to follow the learning from training. The higher mangers, the lower management
and non managers were remaining in organization and working in the same culture. The
newly trained manager converts himself in the pre training phase to get at least his job done.