human resorse manahgement at allied school frenchise
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HUMAN RESORSE MANAHGEMENT AT ALLIED SCHOOL FRENCHISE
COLONEL MUSHTAQ and IMRAN SHAKEEL BUTT are the partners of 3 franchises of allied school in
Lahore. They both started their business set up in 2010 with a single branch and they expanded their
branches and teaching staff slowly and gradually. Now they got 3 franchises sub divided into 3
branches each and along with the teaching staff of 12 to 15 persons each campus.
COLONEL MUSHTAQ is a retired army official due to his health issue in 2007 and then he started his
business of poultry in 2009 nearby Lahore along with another retired batch mate army official
COLONEL FARMAN. In his business of poultry he went into heavy lose because of less experience of
taking precautions to control disease, then he diverted his attention to join another business line to
manage his income circle.
IMRAN SHAKEEL BUTT is a man how is in business line from last 30 years. He started his carrier with
distributions of different multinational companies like NESTLE PTC LEVER WALLS ICI (soda ash)
PHILIPS then he diverted his business line to schooling after 20 years serving in distributions becauseof changing trend of market and he started his school franchise of THE EDUCATORS and after that he
started his franchise of PUNJAB COLLEGE and then he shifted to LAHORE from Sialkot district to
expand his business. In the mean while he winded up his previous business set up and he started
partnership with COLONEL MUSHTAQ in 2010.
THE CONTRACT:
Before starting their joint business they both signed an agreement in which they mentioned
specifically:
1. Rights of hiring principal and canteen person will be with IMRAN SHAKEEL.2. What so ever the expense is, it will be equally distributed.3. In case of any lose by any partner the damage will be equally distributed on both partners.4. If they expand their branches they will divide the work equally with all the rights to take
independent decisions.
These were the main key points set by IMRAN SHAKEEL BUTT before signing the agreement.
Over here it should be kept in mind that COLONEL MUSHTAQ is doing this because he wanted to
recover his amount of lose by investing in another business and IMRAN SHAKEEL is starting this he
want to set up his business in LAHORE.
Both the persons invested 5 million each from which 4 million was invested as capital amount and
rest was kept as back up.
THE GROWTH:
In 2010 they both started their business with a single branch and then they expanded, IMRAN
SHAKEEL BUTT was focusing on:
1. Marketing of their school2.
Hiring of educated (master degree holder) staff
3. Maintaining the quality of the school
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They both knew this is the only way to enter the densely populated market of schools in Lahore.
The pay given to teachers was high as compared to other schools in the area. This attracted polished
and well groomed teachers and they expanded.
After a year they launched another branch of allied school in another area and they moved on withthe same strategy as before. And again they did the same after 6 months (2012).
THE STRATEGY
The strategy was working, they were expanding but the profit margin was low as it was divided into
2 persons after cutting all the expenses and paying head office 10 % margin.
As the Burdon increased they decided to divide the work into 2 parts.
IMRAN SHAKEEL BUTT got hold of 2 branches and COLONEL MUSHTAQ got hold of one branch.
Now they both planned not to interfere into each other working style. They will only share the profit
and loss.
THE WORKING
After division of branches work they stick to their strategy and they compared their working
according to the growth of schools (increasing strength). As mentioned before IMRAN SHAKEEL was
holding 2 branches and he got around 1800+ students and staff was satisfied from him and 80 %
parents were happy because of his management and working style. On the other hand MUSHTAQ
sahib was having only 1 branch under him with the total strength of 700 around students and his
staff was not that much happy with him although parents were quite satisfied from the
management.
THE TWIST
The main point here is, the principal of both the branches were son of IMRAN SHAKEEL BUTT.
And the branch that was under SIR MUSHTAQ there was no principal (to increase profit).
When SIR MUSHTAQ and SIR IMRAN SHAKEEL BUTT both had a meeting after every 6 months to
discuss the pros and cons of both the branches. In that meeting MUSHTAQ SAHIB demanded SIR
HASSAN (1 of the son of imran shakeel butt) to come to his branch but he refused again and again.
Sir Mushtaq offered him a very good salary package and gave him time to think over it.
He draws a sketch of positive and negative points of both the branches. As, he is a man who tries to
find and make his work more easy and comfortably.
1. The branch where he is working is close to his home.2. The increment is only 20% of the salary he is getting from the present branch.3. In this branch he is allowed to come till 9:00 am but where he was forced to move there he
was supposed to come at 7:30 am
4. Saturdays are ON there but here Saturday working is only on the odd weekend
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5. If he moves to that particular branch he has to travel 5 km extra.These were some basic points that were highlighted by Sir Hassan when he did the working by
himself.
He was having the idea that how much hardly that branch needed to be supervised as it was also hisown future business.
Sir Mushtaq offered him the same package for around 1.5 years but he kept on refusing.
THE DAMAGE
In 2014 March the branch that was run by SIR MUSHTAQ went in loose and they lost a lot more
admissions and due to that specific reason they had to close that branch.
Sir Mushtaq said it would have been much more effective if SIR HASSAN might have joined the
branch to work and would have given him some support in working.
SIR IMRAN SHAKEEL BUTT called a meeting with SIR MUSHTAQ and tried to trouble shoot the reason
of branch closing.
THE ORGANOGRAM
SIR MUSHTAQ
DIRECTOR
MISS MUBASHRA
COORDINATOR
TEACHING STAFF
PRIMARY SCHOOL
MISS AYESHA
COORDINATOR
TEACHING STAFF
PRE SCHOOL
DIRECT REPORTING
IN CASE OF ANY
COMPLAINDIRECT REPORTING
IN CASE OF ANY
COMPLAIN
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ENDING NOTE:
The reason of such a big damage was .both the coordinators left the school and they took the
students with them and they open their own private school.
Now SIR IMRAN is trying to figure out the reason of the loose he had to bare.
Please troubleshoot the main reason and also suggest what he should do next to avoid any financial
loose.