On a hot and dry afternoon in May 2014, Shiekh Farrukh Niaz, chief executive officer and owner of Pak Sweets: Managing Organizations Case Study, UUM, Malaysia


Universiti Utara Malaysia (UUM)

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Managing Organization

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On a hot and dry afternoon in May 2014, Shiekh Farrukh Niaz, chief executive officer and owner of Pak Sweets, sat in his office puzzling over the best way to deal with conflicts among members of his workforce. Running a factory that depended on factory-floor workers drawn from different ethnicities was anything but easy.

The conflicts resulting from ethnic differences were escalating into riots, which routinely caused damage to company property. Niaz’s desire to take firm action was thwarted by the even more dangerous possibility of crippling union strikes and lockouts. Indeed, the diversity at Pak Sweets was causing tremendous issues at the factory.

Pak Sweets started its operations in 1984 in a single room with a production capacity powered by two machines and only a few employees, tasked to produce popcorn of different flavors including butter, plain, and cheese. The product became quite successful, and with increasing revenues, the company was able to expand in 1995 to a two-room facility in Kabari Bazaar, Saddar Rawalpindi.

The number of machines was increased to four, with two more machines set up for packing the popcorn. In 1996, Pak Sweets added two new product lines: dried fruits and fennel seeds. The increase in sales and success of the product lines led to hiring more employees to keep up with production.

The company experienced steady growth in its operations from 1996 to 2002. In 2002, the factory was shifted to a full-fledged operating plant (4,047 square meters or 43,560 square feet) located at Chakri Road, Rawalpindi. The new space offered better facilities with three huge production halls, three rooms for packaging, and two administrative offices.

As the organization grew, so did the workforce; by 2014, Pak Sweets had 60 employees, which was a substantial increase from the three employees hired at the commencement of the company’s operations in 1984.

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