AISA Afghanistan- A comperhensive study of the organization structure and functioning

Summer Placement Afghanistan Investment Support Agency

Prepared & Submitted by: Delawar Barekzai, BBA Student of DM's college, Goa University

Project Report onAISA (Afghanistan Investment Support Agency)

Kabul Afghanistan

A project report submitted on Afghanistan Investment Support Agency (AISA), Kabul, Afghanistan in the partial fulfillment of the requirement of FY BBA (First year of Faculty of Bachelor of Business Administration) of Dnyanprassarak Mandal’s College of Arts, Science, Commerce & Management Studies, Assagao, Bardez, Goa, India. June 2008.

Delawar

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DeclarationI Delawar, S/O Mr. Mohammad Ramzan, student of first year BBA of DM’s college hereby declare that the present project report on Afghanistan Investment Support Agency (AISA) is submitted in the partial fulfillment of requirement of first year BBA of DM’s college, and is a bonafide record of work done by me under the supervision of Mr. Mohammad Musa Kamawi, Human Resource Manager (AISA) and guidance of Mr. Jeevan Khedkar, BBA coordinator of DM’s college. I further state that no part of the project has been submitted for a degree or a diploma or any other similar title of this or any other university.

Delawar

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Purpose of the Study

This study is done for the partial fulfillment of requirement of first year BBA to have practical exposure regarding management world and know strategy, structure, culture & functions of an organization.

Scope & Methodology

The study consists of both primary and secondary data. The primary data includes

interviews with the Managers of the departments. The primary data also includes conducting

discussions with the rest of the staff of all the departments. The secondary data has been

taken from AISA brochures, Annual Report, AISA website, and AISA investor journal

magazine.

Limitation

In this study all the departments’ staff were cooperative with me in providing information which was required for the study. There were no restriction and limitation at all to prevent gathering information and prepare my project report.

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Acknowledgment

I am Delawar S/O Mr. Mohammad Ramzan Studying Bachelor of Business administration in

DM’s college affiliated to Goa University, Goa, India. My successful completion of six weeks

internship program gave me an immense corporate exposure. In this six weeks internship all

AISA staff assisted and supported me especially Human Resource Manager, Mr.

Mohammad Musa Kamawi who was my supervisor & Mrs. Farhat Mansoor, Human

Resource officer. I appreciate their perpetuate cooperation and I would like to express my

heartfelt thanks to them. I would like to thank all AISA staff for their cooperation in

providing me with the information that was required for the study. I would like to thank my

family members for supporting and persuading me to do my summer internship training in

my native country Afghanistan.

I would also like to thank Mr. Jeevan Khedkar, our lecturer and BBA Coordinator of DM’s

college for his guidance. During my internship period I have earned practical exposure in all

departments of AISA regarding management, operations, public relation, investment

promotion & investor support activities. At the end I would like to thank all those who

assisted me in successful completion of my internship program.

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Executive Summary

My summer internship involves the organizational study of Afghanistan Investment Support

Agency “AISA”, its history, structure, functions of departments and SWOT analysis of

overall organization. After completing the organizational study, I also proposed some

recommendation for better and effective organizational practices which were accepted and

appreciated.

The study consists of both primary and secondary data. The primary data includes

interviews with the managers of the departments. The primary data also includes conducting

discussions with the rest of the staff of all the departments. The secondary data has been

taken from AISA brochures, Annual Report, AISA website, and AISA investor journal

magazine.

The internship report is divided into of four major sections. The first section of the report

includes the purpose, scope& methodology of the study. The second section includes the

strategy of the organization and functions of all departments.

The third section of the report consists of SWOT analysis of the organization. And the final section of the report covers the conclusion and recommendation for the organization.

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Table of contentsS# Topics Page no1 Introduction/History of AISA 8

2 Role of the Government 8

3 Objective, vision, mission 9

4 Organization Structure 10

4.1 Management Structure 10

4.2 Organization Chart 11

5 Departmental Functions 12

5.1 Investment Division 13

5.1.1 Investment Promotion Department 13

5.1.2 Department Structure 13

5.1.3 Functions 14

5.2 Licensing Department 15


5.2.2 Functions 16

5.3 Investor Support Department 18


5.3.2 Functions 20

5.4 Department of Information Technology 20

5.4.1 Functions 20

5.4.2 Plans of the department 21

5.5 Human Resource Department 22

5.5.1 Department structure 22

5.5.2 Functions 23

5.5.3 HR Planning 23

5.5.4 Recruitment & Selection 24

5.5.5 Role of HR in Pay & Payroll 25

5.5.6 Performance management system 25

5.5.7 HR Information System 26

5.5.8 Staff Training & Career development 26

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5.5.9 Training Need analysis 26

5.6 Procurement Department 27


5.6.2 Functions 27

5.6.3 Procurement Procedure 28

5.7 Finance Department 29


5.7.2 Functions 29

5.7.3 Financial System Administration 29

5.7.4 Process of cash payment 31

5.8 Documentation & Archive Department 32


5.8.2 Functions 32

5.8.3 Archive 33

5.9 Research & Policy Department 35

5.9.1 Goals of the Department 35


5.9.3 Research Functions 36

5.9.4 Planning of the Department 37

6 Data base section 39

6.1 Data base functions 39

6.2 Industrial Park Development Department 40

6.2.1. Department Structure 40

6.2.2 Functions 40

7 SWOT Analysis 43

8 Conclusion 45

9 Recommendation 46

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1. History AISA (Afghanistan Investment Support Agency)Afghanistan Investment Support Agency (AISA) was established on 28th of August 2003 by the Islamic Republic of Afghanistan as a “One Stop Shop” for investors to promote and encourage private sector development. Private sector development is identified as a major driver in the economic reconstruction of Afghanistan and one vital to creating jobs, increasing national income and re-integrating Afghanistan into the regional and global economy. AISA`s One Stop Shop philosophy supports its three major functions; namely, licensing, investor support and investment promotion. In its Investment Support function, AISA is a pro-active policy to advocate on behalf of the private sector to make Afghanistan’ s legal framework the most attractive possible for investment. AISA was at the forefront in creating the Private Investment Law (2005) to protect investors’ rights, and is also making ongoing achievements in improving Afghanistan’s taxation system to ease barriers to investment. AISA also solves investor disputes through its Legal Department. AISA is expanding rapidly; both in the duties expected of it and in its physical growth. It maintains a head office in Kabul and has regional offices in Heart, Mazar-e-Sharif, Nangarhar, and Kandahar provinces. There are also plan to open offices in other provinces in near future. This will increase AISA’s access to investors in other parts of the country and will extend critical investment support through licensing and policy advocacy functions. This agency is affiliated to high commission consist of five key ministries and the Afghanistan bank which head of this commission is ministry of commerce. Five key ministries:

1. Ministry of Commerce2. Ministry of Finance3. Ministry of Agriculture4. Ministry of Mine 5. Ministry of Justice6. Governance of the Afghanistan Bank.

This commission was established by his Excellency president Hamid Karzai to overview the functions and performance of AISA (Afghanistan Investment Support Agency).These overviews consist of three factors.

1. To prove staffing and annual budget for AISA.2. Any Investment that exceed to 3 Million $ will require the approval of high commission. 3. Any problem related to investors and traders should be discuses with high commission.

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President/CEO is assisted by two vice presidents (Vice President Investment and Vice President administrative), and it has 12 departments which consist of (Investment promotion dept, Investor support dept, Licensing dept, Research and policy dept, HR dept, Procurement and contracting dept, Finance dept, Data base dept, Documentation and archive dept, Industrial park development dept, IT dept, and five Regional offices).

2. Role of the Government:AISA was founded on the basis of a government directive as a government institution in charge of supporting foreign and domestic investment in Afghanistan. AISA has mainly a facilitating role with limited governmental authority. It is supervised by the High Commission on Investments. The budget is to be approved by this Commission. Due to its professional promotion and licensing

work well as to its international and national relations, AISA has earned a very good reputation and trust during the first three years of its establishment.

3. Objective, Vision & Mission & Values

Objective:The Afghan Investment Support Agency (AISA) has been created in order to attract investment and trade, and to facilitate the investment progress. And Existence of this agency is to have efficient and prominent Support and promotion, for investment in Afghanistan. Their main functions include licensing all private initiatives in the country as well as promoting and supporting business and investing in Afghanistan. They are also actively involved in capacity building pertaining to entrepreneurship, private sector related research and management.

Vision To become a world-class investment promotion and support agency by ensuring a business-friendly environment for private sector development and thereby robust and sustainable economic growth in Afghanistan.

Mission To create sustainable enterprise development particularly small and medium by providing quality services to investors, facilitating cross border partnerships, advocating business enabling measures & reforms and by promoting Afghanistan as an attractive business and investment destination proactively.

Values:

1. Integrity2. Excellence through total Quality3. Respect4. Initiative, pro-activity, and enthusiasm5. Perseverance and discipline6. Solidarity

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4. Organization Structure

4.1. Management StructureAISA’s Organizational structure is categorized into five staff Levels.

1. Top Management2. Middle Management3. Expert Level4. Assistant Level5. Support Level

Top ManagementThe Top management consists of the President/CEO and the Vice President Administration and Vice President Investment. The President/CEO of AISA is responsible for the whole organization; management and leadership functions. The Vice Presidents are responsible for a part of organization’s functions; management and leadership functions.

Middle ManagementThe middle Management consists of the Heads of the Department and Deputy Heads of the Department. They are responsible for Departmental functions, mainly the leadership functions of the department with some technical functions.

Expert LevelIt has two sublevels:

Technical. Managers/Officers: They perform the technical functions of some complexity, expert level, work relatively self organized on assigned tasks and manage their area of responsibility.

Administrative, Managers/Officers: They provide services to other organizational units to ensure smooth and efficient running of the organization.

Assistant LevelThey assist the HOD (head of the department), Deputy HOD, Manager /officer in carrying out their tasks.

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Support LevelThey assist in basic Support functions important for the day to day functioning of the organization; but only assigned task with daily control. Positions within the structure are shown below organizational chart as an annexure.

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4.2 Organization Chart

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5. Departmental FunctionsAISA’s activities and achievements are arguably the most exciting aspects of its development as a pro-active investment agency. The AISA management frequently holds staff meetings as a means to discuss upcoming events, coordinate goals and objectives, and evaluate the organization’s strengths and weaknesses.

The following assessment offers a glimpse into the activities of each department in AISA, focusing on the major achievements that have come about as a result of AISA staff initiatives.

AISA has two major divisions, namely

Investment & AdministrationInvestment division is further divided into the following departments.

Investment Promotion Investor Support Licensing IT & media

Administration division has the following departments Human Resource (HR) Procurement Finance Documentation and Archive.

Beside these AISA has two other major departments. These are Industrial Parks Development Department & Research & Policy department.

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5.1 Investment Division

5.1.1 Investment Promotion DepartmentInvestment Promotion department is mainly under Vice President Investment and the head of this department is responsible for reporting to Vice President Investment or President/CEO. Investment Promotion Department equipped with motivated and professional staff. This department within AISA acts as a catalyst, facilitator and coordinator to ensure that the requirements of potential investors are met. It also organizes meetings between potential investors and economic operators in the country. The department also monitors international investment trends and provides both economic and trade statistics to potential investors. This department is the first face of AISA and promotes both domestic as well as foreign investments; they introduce Afghanistan as an investment and business destiny.

5.1.2 Department Structure

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Vice President Investment

Media ManagerEvent Organizing

ManagerPublication & Public

Relation Manager

Domestic IPManager

IPOfficer

Investment Promotion Director

5.1.3 FunctionsThe primary function of the investment promotion department vary from pre-investment support to events planning intended to link foreign businesses with the Afghan private sector to post-investment. The department is working to create a Menu of services for the Kabul and regional offices to clarify what services AISA can offer and what to expect from these services.This department is responsible to keep up communication with investors, government, international companies, and so on. This department response to inquiries of investors, companies, government and also it is responsible for making conferences, and meetings with foreign or domestic investors and agencies. This department has role in guidance through the investment location (sites/ building) selection process? The department is also involved in B2B communications and building contact networks for project development.

The investment promotion department strives to build and strengthen image of Afghanistan. They want to organize many events in the future to explain investment opportunities in Afghanistan for foreign and domestic investors. As Afghanistan is an open market for investment the investment promotion department tries to attract and retain foreign and domestic investors to invest in different fields.

Pre-investment Support Pre-investment support includes attracting initial investors and providing them the appropriate guidance on doing business in Afghanistan. Part of successful pre-investment support and a crucial component of events planning is building Afghanistan’s image as an attractive investment destination. The investment promotion department achieves this in conjunction with the Media & Public Relations Department through awareness campaigns, creating a strong Afghan business delegation to accompany AISA on events held abroad, and through providing potential investors with detailed information on investment opportunities.

Post-Investment SupportIn the post investment support function, the department provides advice to existing investors and intervenes with the appropriate government bodies to improve investment conditions in the country.They provide brochures to investors to make well aware the investors about investment opportunities, investment law, and other useful information.

In its investment promotion function, AISA has helped major multinational companies such as Siemens, DHL, Coca Cola, British Petroleum, Serena Hotel, Alfalah Bank, First Microfinance Bank, Air Arabia, Tobishima Japan, Habib Bank, and Alcatel establish operation in Afghanistan, as well as assist hugely successful domestic investors such as Roshan, who has invested over $50 million, and Afghan wireless who has invested some $27 million in the country. AISA is also in discussion with Nestle to establish operation in Afghanistan. Also the Emirates-based telecom company Etisalat secured a license to operate Afghanistan’s fourth GSM mobile network with a proposed investment of $300 million over a period of three years.

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5.2 Licensing DepartmentThe licensing department is mainly under the Vice President Investment and the head of this department is responsible for reporting to Vice President Investment. The role of this department within AISA is assist investors for issuing investment license.


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Vice president Investment

Licensing Director

Regional officer Coordinator

Licensing officerLicensing manager

Five Regional Directors With their

Drivers, messengers, & cleaners

Licensing StaffLicensing

Staff

5.2.2 Functions The Licensing Department implements the original objective of AISA as the chief government entity to legally register all business in Afghanistan. The department not only registers businesses operating in the country, but also provides the private sector license renewals and activities certificates. Most importantly, it offers investment support in the form of legal advice and dispute resolution. The Licensing Department has also played and continues to maintain an active role in successfully lobbying for a more competitive tax policy for Afghanistan, which is detailed below.The AISA business-licensing program is a great success. Since late 2007, AISA has served and registered more than 10,987 investments worth $3.9 billion to date. It has reduced the waiting time for licenses from several months to less than a week. Licensing ProcedureWhen an investor wants to make new license or extend the old one he/she comes to Licensing department’s Registration section and get the forms, then he/she goes to Data base section to check whether the company’s name is already registered or not. Once the Data base section confirm the name of company again the investors come to registration section and fills out a two-page “Application Form for an Investment License” with such information as the name and address of the company and its contact person, business plan for investments over ten thousand dollars (output, number of workers, amount of investment etc), industry in which it will operate, type of business ownership, and so on.

Rules and RegulationsAISA (Afghanistan Investment Support Agency) give license only to manufacturing, Service, and construction companies and for mercantile (export & import) the investor has to go to Ministry of Commerce.For an Afghan citizen, an individual investor presents a National ID card, passport, or other documents that certify the identity of the applicant and passport size photos 3 copies.A foreign individual can present a passport as identification.A foreign company (i.e., a company that is incorporated and has operations outside Afghanistan) obtains a certification from the Economic Department of the Ministry of Foreign Affairs of its legal identity abroad, i.e., that they are a legally registered company abroad.Registration section checks all documents and files and put number of license and sends to licensing department. Licensing department gives tariff to the investor to pay fee of the license. Once the investor pay fee of the license again he/she comes to licensing department, licensing department sends investors’ files to commercial court and will be recorded in finance offices of Ministry of finance. Once the commercial court registered the new company details or approves the existence of the current one again the file comes to licensing department for getting approval letter from Investment commission of AISA which consist of Investment licensing Director and manager, Vice president and President/CEO. If the investment capital is above 3 million Dollars will be going to high commercial court to get approval. At the end of the processes licensing department print the license for the investor. And for getting and receiving the license president or Vice president of the company should be present. Foreign investors must plan to invest capital of at least $100,000; Afghan investors must have capital of at least $1,000.Every year the investors have to give their balance sheet of their company to finance ministry and give tax to the medium tax payer.

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If a company wants to stop its activities due to losses, President and vice president make agreement regarding the lost of the company to stop it. And inform AISA regarding non-activities of the company. Sometimes a company’s president or vice president want to separate his/her shares by the way they comes to AISA to inform them regarding separation. AISA provide form of separation president and vice president fill out and sign it and then it goes to commercial court to approve it. Once the approval comes to AISA then they register the changes details of the company. Registration IDs are different domestic and foreign investors every license has specific IDs, for domestic investor ID has D-no and for international investor the license has I-no.

Costs and Fees (Initial Licensing fees)

Manufacturing and Health Service

Amount of Initial Capital Investment Category Licensing fee

$ 5,000-$10,000 Small $100

$10,001-$1,000,000 Medium $700$1,000,001 and above Large $1000

Construction

Amount of Initial Capital Category Licensing Fee

$10,0001-$1,000,00 Intermediate $700

$1,000,001 and above Big $1,000

Service sectorService sector fee is $ 1000 regardless of investment size. Renewal is 50% of the initial fee per year.

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5.3 Investor Support Department The Investor Support Department is mainly under the Vice President Investment and the head of this department is responsible for reporting to the Vice President Investment. AISA provide continued support for all foreign and domestic investors while in business. The investment support department has been specially created to render this support. If any investor faces with challenges with interpreting laws, difficulties with government authorities or any other issue and their business requires help the AISA services especially investment support department help them and that is free of charge. The investment support department offers individual client services during the entire pre & post investment phase.

5.3.1. Department Structure

5.3.2. FunctionsThe Investor Support Department is responsible for provision of initial information and advice for foreign and domestic investors which consist of Observation of market situation, legal framework, customs, taxation, Insurance, availability of key inputs, support programs, investment incentives and opportunities. It maintains contact to key investors (each investor support manager has his/her assigned clients to be assisted during the whole process which is called one phase to the customer it facilitates support to investor from other government or private bodies (e.g. private Business Development Services, chambers, donor projects.

The investor support department is responsible to assist investors in case of problems, and provide sufficient information to investors regarding market and investment opportunities in Afghanistan. Assist and support in the development of business plan, feasibility studies, proposal writing,

Vice President Investment

Investor Support Director

Investor Appraisal Manager

Sector Manager

Investor Support Officer

Legal OfficerCredit & Risk

Insurance Officer

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financial analysis, and big support to give key data and help especially manufacturing companies and industrial parks regarding electricity and land problems.

Investor Support department is voluntarily mediate to solve conflicts and problems between investors, investors and government, investors and other agencies if the government agrees to do so. This department matches the businesses and find out business partners and making joint ventures for investors. It is also involved in support with ministries and private bodies.AISA Investment Support department also assist the investors for getting visa and applications to the ministry of foreign affairs and concern country’s embassy.

Legal officer provides law summaries; interpret laws, and writing letter for ministries on legal issues regarding AISA legal idea.Beside that legal advisor solve legal issues of all AISA departments and all the departments get his idea.

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5.4. DEPARTMENT OF INFORMATION TECHNOLOGYThis department is mainly under the Research and policy department and the head of this department is responsible for reporting to the director of research and policy department. The role of this department is to ensure the stable operation of the AISA wired and wireless network. This includes planning, developing, installing, configuring, maintaining, supporting and optimizing all network hardware and software.The information technology department is involved with the administrative duties including creating new user accounts, assisting users with network access, and resolving connection problems, maintaining and monitoring servers, performing upgrades and application/data backups, monitoring network utilization and security systems, making recommendations for system network upgrades, new network products and ongoing improvements, notifying issues and recurring errors.

Positions:There are two positions in this department

1. IT Manager2. IT Assistant

5.4.1. FunctionsThe below listed functions are carried out and executed as a routine or occasionally when needed or a bottleneck situation occurs.

Manage all servers, including e-mail, fail, print and backup servers and their associated operating systems and software.

Manage security solutions, including firewall, anti-virus, and intrusion detection system. Manage telephone switches, servers, backup and their associated operating system and

software. Manage all network hardware and equipment, including routers, switches, hubs, printers,

and UPSs. Perform system backups and recovery of all systems and maintain accurate records of all

backup activities according to current standard operating procedures. Oversee installation, configuration, maintenance, and troubleshooting, of end user

workstation hardware, software, and peripheral devices. Ensure network connectivity of all workstations and networked printers. Administer all equipment, hardware and software upgrades and routing maintenance and

maintain proper documentation. Procurement, configuration and management of all computer equipment, network

infrastructure components and other peripheral devices. Administer and maintain end user accounts, permission and access rights. User administration, monitoring ad enforcement of network security policies. Manage network and infrastructure projects as needed. Conduct research on network products, services, protocols, and standards in support of

network procurement and development efforts. Interact and negotiate with vendors, outsourcers, and contractors to secure network

products and services.

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Establish service level agreement with end users. Monitor and test network performance and checkup internet speed and Bandwidth. Recommend, schedule and perform upgrades, and repairs. Design of IDs and Business Cards. Taking back-up of AISA main and License serial Number generator databases. Controlling internet usage with the use of Linux Dog-server

5.4.2. Plans of this departmentEssential duties and Responsibilities planned to be covered-up soon are:

1. Developing business/Visit cards database which will be used as a contact directory for all key staff outlook program.

2. Visiting Regional offices for checking their internet connection, backups, and trainings for the use of ICT (information communication technology) equipments and software.

First plan is already implemented. They have made a data base system and keep copy of business cards.The second plan is in process and they tend to implement as soon as possible.

Linux Dog Server

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Administration Division

5.5 HUMAN RESOURCE DEPARTMENTThis department is mainly under the Vice President Administration and the head of this department is responsible for reporting to vice president administration.


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Deputy Manager (HR)

Officer “HR”

Store Keeper

Safety&

SecurityReceptionist

Cleaner Mechanic

Human Resource Manager

5.5.2 HR Functions

This department is responsible for planning/projection of manpower for coming year. This department works collectively with finance department to prepare budget Estimation

of coming year. This department is responsible to design and collect job description from each department. This department is responsible to conduct recruitment procedures (Job announcement, job

short listed, written test, interview and selection) transparently and soundly. Conduct analyses to determine staffing numbers, skills and needs to meet the

organization’s objectives. Provide induction training for new employee. Maintain personal records of employees on matters such as wages, leave, and training and

prepare associated management reports. Controlling AISA staff attendance sheet and maintaining and controlling of personnel

profile files. Set effective communication channel within AISA staff. Promote workplace safety. Investigate and understand causes for staff absences. Supervision of logistic activities as well as office maintenance. Formulate employee’s personal profile (Hiring, promotion, transfer, demotion, resignation

and increase of salary etc.) Prepare training/development for AISA employees. Supervise and assist the immediate level subordinate. Arrangement for AISA expatriate staff visa and work permit. Prepare renewal employment contract for AISA staff. Prepare appraisal for staff on quarterly and annual basis. Provide basic counseling to staff that have performance related obstacles.

5.5.3 Human Resource PlanningThe first of function of “HR” Dept is to conduct Human resource planning to project staff requirement for incoming year. “HR” Department closely communicates with relevant departments in AISA to project/forecast the demand of staff for incoming year. HR Department analyzes each department’s staff requirement for counsel with top management to allocate specific budget for new positions. HR Dept work closely with finance department & do forecasting for incomes year to prepare and project staffing to include in budget. They send mail to every dept and expect to forecast budget for their dept staff. Whenever they planed and forecasted the budget for the year then they send the proposal to “HCI” (High Commission Investment) to approve the budget and the CEO of AISA give justification to “HCI” for this approval.

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5.5.4 Recruitment & Selection

1. 14.

13. 15.2.

3. 12. 16.

4. 11. 17.

18.

10.

6. 19.

9.

7.

8.

When a dept need and want to increase their staff, head of the dept contact with president/CEO or Vice president and get approve of them. Then they communicate “HR” and give terms of reference. HR redesigns TOR and sends the announcement to AISA website & ACBAR

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Any Dept require staffing or transfer, they propose to CEO for approval to

hire any staff or transfer.

CEO approve proposal

Related dept make TOR (Terms of reference) and send it to “HR”

HR redesigns “TOR” and gives the announcement to AISA website & ACBAR

Collect CVs and initial filter processing

Shortlist of relevant CVs according to the TOR

Invitation of short listed candidates for“Written test” Invite 3 or 4 top scorers

for a panel interview

Making interview panel

Prepare interview sheet

Start with the interviewAsking (structure &

non-structure questions) based on position

Select successful Candidate & introduce

to CEO for final interview

CEO exam the selected candidate & approves

the interview

“HR” prepares a proposal attached with interview sheet & written test, to CEO for instruction regarding

selected candidate

CEO Approval & send back to “HR”

“HR” Make employment contract & send it to CEO for

sign

Induction Program

Give TOR to new Employee

HR issue an appointment letter to A/c dept & a copy to

new employee to inform him/her about

his/her salary.

(agency coordinating body for afghan relief) which response to the need for NGOs to coordinate their activities in order to maximize their efficiency and resources. From the date of announcement till closing date they receive and collect resumes online and manually. Whenever they collected Resumes they filter (screen the process) all Resumes. After screening the process they make shortlist of the Resumes according to job specification. Then they invite all those candidates who are short listed for written test through telephone and e-mail. After the test they check the paper and those who have got high grades will be invited for interview by e-mail or telephone. The interviewer would be consisting of:

One person from HR Head of the relevant department V.P Administration Some times V.P Investment

HR department prepare individual and consolidate interview sheets and they start with the interview process. They ask different types (structure and non-structure) questions. Those candidates who are successfully passed interview are introduced as an applicable candidate, and this selected candidate has to discuss with CEO and give short interview and final selection will be decided by CEO. CEO approves the selected candidate interview. HR prepares a proposal to CEO attached with interview sheet, written test report and CV and asks the CEO to give instruction regarding selected candidate. Once CEO approve the appointment of propose candidate for relevant department. Then candidate inform about his/her appointment with propose package, invite him/her to accept AISA offer and sign employment contract. Once selected candidate sign his/her employment contract then HR department would request the candidate to provide all documents mentioned I his/her CV along with essential documents. When these processes are completed then they make employ orientation program and brief about AISA Objective, Mission, functions and overall HR policies and introduce him/her to all organization staff. First three months is considered to be probationary period of employment after three months employee appraised by his immediate boss. After successful completing probationary period letter issue to employee that you have successfully completed his/her probationary period and he/she can continue his/her employment according to contract.Online Recruitment:There is also online recruitment conducted through email, and phone however online recruitment in only for international staff.

5.5.5 Roll of “HR” in Pay and PayrollHuman Resource Dept is responsible to give attendance reports, Employees Personal Data, Transferred Employees reports –Transfer out Details, resigned Employees Details, of every individual employee to Finance Dept, & employee’s salary will be paid at the end of every month due to attendance report.

5.5.6 Performance Management SystemHave a proper performance management system where they have annual appraisals and probation reviews. And for this purpose they need to devise appraisal forms and organize performance interviews.

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5.5.7 Human Resource Information SystemThe human resource information system is a software or online solution for the data entry, data tracking, and data information needs of the human resource, payroll, management, and accounting functions within a business. Their objective in this regard will be to provide full support to the configuration and implementation of the new human resource information system. This human resource information system will provide:

Management of all employee information Reporting and analysis of employee information Benefits administration including enrollment, status changes, and personal information

updating Pay grades and positions held Applicant and resume management

5.5.8 Staff Training and Career DevelopmentTo have skilled and high performance staff AISA provide training opportunities to their staff by to be trained relevantly.

5.5.9 Training Need AnalysisConduct comprehensive divisional needs assessments with a view to introducing programs which meet the needs of a broader range of administrative staff, with particular emphasis on those in professional and technical positions.

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5.6 Procurement Department Procurement department’s significant responsibilities is the management of all procurement and disposal activities of AISA Guesthouse and coordinate in preparation and updating of procurement plans in consultation with the Vice President Administration.Head of the department is responsible for overall direction, coordination and evaluation of the department and carries out the responsibilities in accordance with the organization’s policies and applicable laws. Responsibilities include planning assigning and directing work; appraising performance; rewarding and disciplining employees; addressing complaints and resolving problems.


5.6.2 Functions1. Performing all kind of logistical activities for the AISA office.2. Perform the request for quotations of goods, works and services.3. Ensuring proper consummation of all purchases, agreements and contracts.4. Issuing contracts and purchase orders.5. Attending to procurement queries, disputes, and complaints and report on contract awards

and progress.6. Quality assurance and inspection of all purchases.7. Solicit, receive and analyze proposal, quotation and tender submission and recommend

selection.8. Administer the interim and final payment processes of procurement.9. Arranging all the functions (lunch and dinner parties) inside and outside the organization.10. Placing an order to caterers.11. Arranging travel for employees.

Procurement & Contracting Manager

Procurement & Contracting Deputy Manager

Procurement & Contracting Officer

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12. Collection of all the purchase receipts and making an entry of it in the log book.13. Ensure final closure of all procurement documentation upon completion of the respective

work.5.6.3 Procurement ProcedureIn order to procure the requested items for organization the procurement department takes the following steps;

1. Approved Request from the head of Unit for the required item.2. The requests are set in a chronological order if the numbers of requests are more.3. Each request needs time to be processed and based on the quantity as well as the cost of the

item; at least 2 official days is the maximum time for small items to be purchased.4. All those Items which cost $100 or more than 100$ will be asked for three or four

Quotations.5. After getting the Quotations and for and for selecting the best Quality as well as the best

price, the evaluation format will be used (The payment issued should be cleared with the Vendor whether he/she asks for Cash, Check or Bank Transfer).

6. The procurement committee will have to purchase the mention item from the selected Vendor in Procurement Memo.

7. All the assets or items that come to the organization after the procurement and submit to the responsible person must have an inspection report that shows the particular condition of the purchased items.

8. A summary sheet which shows the financial expensed of all the procurement is essential to be made and attached with Receipts, Quotations, Request and Evaluation or procurement Memo and then it should be sent to finance for further process.

9. The purchased items can be delivered to the person who made the request by filling the ICT format and should be entered to Inventory Database.

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5.7 Finance DepartmentThis department is mainly under the Vice President Administration and the head of this department is responsible for reporting to vice president administration. The role of this department in AISA is to ensure accurate recording, budgeting, identifying transactions, and summarizing and other finance related tasks.

57.1 Department structure

5.7.2 Functions1. Administer and monitor the financial system in order to ensure that the finances are

maintained in an accurate and timely manner.2. Maintain the account payable and accounts receivable systems in order to ensure complete

and accurate records of all moneys.3. Administer employee files and records in order to ensure accurate payment of benefits and

allowances.4. Administer the payroll in order to ensure that employees are paid in an accurate and timely

manner.

5. Responsible for training the staff of provinces on Financial & Management Accounting Procedures.

6. Responsible for providing the financial information of the organization to the donor organizations.

5.7.3 Financial System Administration

Main Activities Assist with preparation of the budget. Implement financial policies and procedures Establish and maintain cash controls Establish, maintain and reconcile the general ledger Monitor cash reserves and investments Prepare and reconcile bank statements

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Establish and maintain supplier account Processes supplier invoices Maintain the purchase order system Ensure data is entered into the system Issue cheques for all accounts due Ensure transactions are properly recorded and entered into the computerized accounting

system (quick book). Prepare income statements Prepare balance sheets Prepare monthly financial statements Prepare quarterly reports and report on variances Assist with the annual audit Maintain the computerized accounting system Maintain financial files and records

Maintain the accounts payable and accounts receivable systems

Main Activities Ensure the safeguarding of all funds Issue, code and authorize purchase orders of procurement department Reconcile the accounts payable Prepare journal summaries Reconcile the accounts receivable Take periodic inventories to monitor the inventory against theft, reconcile general ledger

inventory information and to maintain an adequate inventory level Issue receipts Reconcile weekly deposits Reconcile Motor Vehicle and other government services transactions Maintain the records of any loss due to foreign exchange rates

Employee files and records administration

Main Activities Document new employees Establish employee files in the computerized accounting system Administer benefit entitlements Verify and report on benefits payments Maintain the leave management system Verify annual leave records Calculate and action deductions Submit remittance Prepare separation documents for terminated employees Maintain confidential employee files

Payroll Administration

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Main Activities Set up employee files Verify and code timesheets and hours worked Calculate employee salaries, deductions and contributions Enter payroll information into the computerized accounting system Calculate source and miscellaneous deductions Process pay cheques Update all the leaves Prepare, review and file payroll summaries, journals and reports

This department communicates with all departments in AISA especially with HR and other departments to discuss preparing budget for incoming year. This department is responsible to check needs and plans of every department.

5.7.4. Process of cash paymentCustomer comes from licensing department to cashier to pay fee of their license. Cashier issue payment form along with three copies ( one for cashier, one for customer, and one for licensing department which should be kept in customer file).Cashier records serial number of every payment in daily cash report. At the end of the day cashier submit daily report to finance officer for check and monitoring. Soft copy of the report we be kept with finance officer and hard copy is going to be submit daily to finance manager. They have quick book software for accounting which facilitates their work. Bank reconciliation is another issue and finance department is responsible to reconcile their deposits in the bank. Internal Report: Daily report to finance manager.Monthly Report: Monthly report to Vice President Administration.Activity Report: To Human resource department.

This department is also responsible for check and controlling inventory system. They have software by the name of asset manager which records all items yearly. And they compare all items with last year and record all new and old items. All items’ basic usage is 100 % and depreciation is based on government rule which up to 100$ is to be recorded.

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5.8 Documentation & Archive DepartmentDocumentation and Archive department is mainly under the Vice president Administration and the head of the department is responsible for reporting to Vice president Administration. The role of this department within AISA is Filing of all incoming and ongoing official documentation, maintain and controlling all affairs relevant to filing management.


5.8.2 Functions

Manager1. Ensuring that all the dues (Income Tax, Licensing fess) have been cleared before

registering another company by the same party who is already registered with AISA.2. Once the company is duly registered get it stamped by the Kabul Commercial Court &

ensures that it is sent to their respective provinces (if located in provinces).3. Responsible for administrating, controlling, and leading all functions of relevant section

including Documents, Archive and database, and resolving of problem on priority basis provides facilities to valuable customer.

4. Responsible for informing AISA administration on earlier possible time when problems arise.

5. Notify any change in the company which is registered with AISA to the Commercial Court and to the Ministry of Finance.

6. Responsible for despatching the forms for the purpose of allotment of tax identification numbers to the registered companies to the Ministry of finance

7. Responsible for collection of investment documents of all those firms whose investments are more than three million dollars for the purpose of getting them approved from high commission before registering them.

8. Documentation of all the licenses issued.

Documentation & Archive Manager

DocumentationClerk

Archive Clerk Receptionist Messenger Messenger

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9. Preparation of High Commission meetings particularly relating to preparing agendas, invitations and writing the minutes of the meeting.

10.Preparation of press release for the purpose of High commission meetings.11.Responsible for completion of investment project files in all aspects and place them before

the meeting of High Commission on investment12.Delivering of registered forms to the concerned department on fix time.13.Responsible for reply of letters to concerned department promptly.14.Replying to all the incoming correspondences.15.Oversee the department activities.

Documentation clerkEssential Duties & Responsibilities:

1) Prepare the lists of all dispatched documents in dispatch book.2) Listing of investment licenses in registration book.3) Dispatching of documents to the relevant department.4) Dispatching of documents to the commercial court for their attestation.5) Assist the manager in day to day activities.6) Any other task can be assigned by the immediate boss

5.8.3. ArchiveAll Investors files and documents are preserved and filed in Archive which can be available for future reference. There are three staffs working in archive:

1. clerk2. Assistant (Persons)

Archive ClerkEssential Duties & Responsibilities:

1. Prepare the lists of all dispatching documents in dispatch book2. Listing of investment licenses in registration book3. Dispatching of documents to the relevant department.4. Dispatching of documents to the commercial court for their attestation.5. Assist the manager in day to day activities.6. Process of record and saving the companies files7. Collecting files from different departments8. Saves copy of visa and passport of the staff that travel abroad9. Sticking of new documents coming from data base10. Any other task can be assigned by the immediate boss

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AISA documentation and archive department have two messengers to supervise and perform general messenger work, such as receiving, delivering, and collecting incoming and outgoing mail or other documents or items, including correspondence, memoranda, publications, records, files, packages, and other similar material.

Essential Duties & Responsibilities:

1. Responsible for safe transfer of AISA documents to central post office and relevant ministries on time.

2. Dispatching of all the official documents to the relevant Government Department.3. Dispatching of documents to the commercial court for their attestation.4. Assist the manager/clerk in day to day activities.5. Monitoring AISA post box transfer of documents to AISA.6. Assist the archive clerk in preparing the lists of all dispatched documents in dispatch book.7. Dispatching the advertisement notices to the relevant Advertisement Agencies.8. Dispatching and collection of relevant letters to/from the Ministry of Finance.9. Any other task as assigned by the immediate boss.

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5.9. RESEARCH & POLICY DEPARTMENT

This department is mainly under the President/CEO and the head of this department is responsible for reporting to the President/ CEO of AISA.The role of the R&P department is to conduct research and analysis aimed at providing necessary investment statistics. The research outcomes enable to target particular sectors/industries for attracting both foreign direct investment and local investment. The key activities of the department can be summarized as follow:

The provision of comprehensive research to identify specific investment opportunities for attracting foreign direct investment.

To liaise with other institutions and agencies nationally and internationally to ensure that AISA keeps up to date with and international investment trends.

To compile relevant information that is necessary for investment promotion and support strategies.

Monitoring and evaluation of AISA’s support and promotion activities.

5.9.1. Goals of the Department Provide regular and on time information to interested parties on the most current

investment conditions in Afghanistan and build AISA’s reputation as a trusted and accurate source of research and information.

Strengthen AISA’s relationship with the Donor community by demonstrating active collaboration in research studies, including those studies relating to private sector development.

Develop AISA’s capacity as intermediary between the private sector and Government of Afghanistan by creating a critical forum for dialogue to identify the needs and concerns of the private sector and initiate reform on their behalf.

Prepare policy proposals for the decision makers which help the acceleration of out-ward and in-ward looking investment strategies.

Relation and cooperation with internal and external research organizations

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5.9.2. Department structure

5.9.3. Research Functions Advising the president on different investment and economic related issues.

Review, collect and consolidate existing research on the private sector to assess where information ‘gaps’ exist;

Create a reference archive of existing research at AISA for use by staff and visiting investors;

Undertake and coordinate research and surveys on issues which are considered to be of vital importance to the private sector; Ex: climate, Renewal form, accession to Bank, and private sector need assessment.

Explore the current barriers that impede investment in Afghanistan and use these as a catalyst for advocating reform;

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President/CEO

Research & Policy

Director

Data base Manager

General Manager Statistics

Investment Analyst

Librarian Officer

Data base Assistant

General Statistic Officer

Observe regional case studies in developing or post-war countries to examine lessons learned and how these might apply to the development of a strong private sector in Afghanistan;

Meet with donors to discuss joint research partnerships/projects and communicate research findings at related meetings;

Engage local academia to actively involve them in information gathering;

Evaluate the efficacy of the existing legal & regulatory framework for investment in Afghanistan, based on information provided in collaboration with the Legal Department at AISA;

Produce quality reports (such as in-depth sector studies) and disseminate Research department findings to potential investors at home and abroad;

Produce region-specific ‘cluster’ studies to identify the strongest areas for investment opportunities in different regions of Afghanistan (for instance, identifying which region(s) might be best equipped with natural resources for specific mining opportunities);

Monitor and evaluate investment climate in areas outside of Kabul through visits to AISA’s regional offices;

Stimulate and actively involve AISA’s regional offices in collecting research through surveys and other means, thus improving their own capacity;

Serve as an advocate to local investors by conducting practical on-sight business surveys and then using such information to actively promote policy reform on their behalf; and

Liaise with key policy-makers in the Ministry of Commerce, High Commission on Investment and Parliament to create better awareness of the issues and concerns of the private sector.

Contact international research organization for transfers of experience, and attracting their cooperation in the field of research.

Develop measurable indicators for each activity of AISA.

Publication of Magazines.

5.9.4. Planning of the DepartmentThis department has annual and med term activities planning like:

1. bring other countries’ Investment Directories;2. prepare statistical bulletin to response to demand and role as a policy makers;3. prepare progress reports;

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4. prepare brochures to explain the role of AISA in supporting domestic and foreign investors

in Afghanistan;

OutcomesBy implementing the above stated objectives and activities, the Research and Policy department of AISA achieves the following:

Promote awareness of investment opportunities in Afghanistan through detailed research;

Position AISA as the focal point to interested organizations to provide constructive research on investment;

Ultimately endorse policy changes that will lead to a better environment for both private investment and private sector development;

Create a forum for debate concerning issues of importance to the private sector by building alliances with them;

Develop AISA’s capacity to support the continuance of the Research and Policy Department’s objectives in the event of staff changes; and

Support the financial viability of the Research agenda through cooperation with prominent donors and international actors.

90% of work of this department is to provide information and respond to Government, donor organization, NGO’s, banks and investors as per their request. Data base management play key role in providing information.

StaffingAccording to the director of this department they are concerning on the division of work which will increase the performance and effectiveness of the work. They plan to have three sections; namely: Statistics, analysis, and publication section while the statistical section would be further divided into investment and general statistic sections. Currently they will have one analyst as the head of statistic section and this year will be first year all these three people would be concentrating on the collection of accurate statistics.

Chain of command 1. Director of Research & Policy: responsible for reporting to the President & CEO of AISA.2. Analytical Unit Manager: responsible for reporting to the Director of Research & Policy

Department.3. General Statistic Specialist: responsible for reporting to the Director of the Research and

Policy Department.

4. Librarian: Responsible for reporting to the Director of Research and Policy Department.5. Database officer: He is responsible for reporting to the Analytical Unit Manager.

6. General Statistic Analyst: Report directly to the Director of research and policy department.

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7. Publication Manager: Report directly to the director of research and policy department.

8. Executive Assistant: Directly reporting to the Director of AISA.

6. Data base Section

This section is mainly under the Research and policy department. And the role of this section in AISA is collecting and store of information regarding new and existing companies in a database system. There are only two positions:

1. Data base manager ( Renewal entry)2. Data base assistant ( New entry)

These two positions divided tasks but work jointly and cooperatively in providing information regarding new and existing companies.

6.1. Data base Functions1- Collection of licensing form and entering all required information.2- Collection of data regarding each areas of business environment (Communicate with AISA’s

regional offices).3- Insuring that all information on the form is correct and does not have any problem.4- Reading, entering and rechecking already process information.5- Recording and filling soft and hard copy of all investment information coming from other

organization either domestic or international.6- Listing problems or cases and proposing solution to the head of section or head of the

department.7- Participating in the internal meeting as required.8- Helping in the collection of general statistics if required especially link with research and help

to give proper report and accurate information.9- Do other job if required.

Process of recording information in data base:First of all the investor has to get form of registration and bring to data base section to check for the name availability, once the data base section register and approve the name of the company again goes to registration office. After whole process of getting license when all files and documents are completed again comes to data base section to register all specification of the company, then registered file sends to archive.

6.2. Industrial Park Development Department (IPDD)41

This department is mainly under the Vice president Investment and the head of this department is responsible for reporting to vice president investment. The Industrial Parks Development Department of AISA endeavors to develop and offer modern, strategically located, well-managed, regulated and attractive Industrial Parks.

6.2.1. Department Structure

6.1. Functions1. Visit some of the existing industrial parks and collect information on varieties of

management and maintenance models of the industrial parks.2. Consult with provincial and municipal authorities to collect their concerns over the existing

situation in terms of industrial and commercial property development faced by Afghanistan at the present time.

3. Review planning, zoning and environmental controls that operate within the existing industrial parks and identify the shortfalls that need improvement.

4. Review existing procedures and processes for allocating the space/ plots within parks and determine the most effective transparent and fair model for sale of land title. Review models of best practice on land distribution in industrial parks from around the world and suggest one which would be most applicable and efficient for Afghanistan.

5. Discuss the matter of form of governance with a variety of stakeholders including businesses, business associations and government officials both at national and provincial levels.

6. Review existing forms of governance of all industrial parks and by providing solid reasons and justifications specify which form would be the best suitable for the long run.

IPPD Director

IPDD Deputy Director

Advisor IPDD

Admin OfficerIPDD

Procurement officer

IPDD

Site Engineer

IPDD

ESPOIPDD

Procurement

Specialist

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7. Suggest what would be the most appropriate and suitable model for industrial parks in

terms of creating, managing, maintaining and attracting the further funding be it private, public or international donor funding sources.

8. Review the existing funding and budgeting system of industrial parks and propose independently and become financially sustainable.

9. Prepare strategic plan for capacity building throughout all industrial parks management by identifying appropriate staffing and technical expertise needed to carry out the smooth implementation of the projects.

10. Consult with business associations, industries, government officials, international community and other potential stakeholders in order to obtain views on appropriate strategy for industrial parks development.

11. Provide recommendations on policy, regulatory and institutional framework for industrial parks taking into account possible private sector participation in development and maintenance of the parks.

12. Develop a rational industrial park development and management strategy for Afghanistan that will take in to account planning, zoning, environment, funding and other issues closely relevant to the creation and management of industrial parks.

The industrial park development department is the major key department of AISA to make industrial parks for the investors those who invest in manufacturing sector. The industrial park development department is applying several basic fundamental for developing an industrial park. Individually, each adds; together they form a whole greater than the sum of its parts.

Integration into natural systemsThis is done using the bellow approach;

Select land site suitable for industrial, using an assessment for ecological carrying capacity and designs its infrastructures within the limits it defines.

Minimize the local environmental impacts by integrating the industrial park into the local landscape, hydrologic setting, and ecosystem.

Minimize contributions to global environmental impacts, i.e. gas emissions.

Energy SystemsDue to the lack of adequate power supply IPDD makes alternative arrangements. Maximize energy efficiency through facility design or rehabilitation, co-generation;

Energy cascadingAchieve higher efficiency through inter-plant energy flows and apply procedures to motivate the investors to use renewable source extensively.

Materials flow and waste management for the entire Industrial Park site; they emphasize on cleaner production methods and pollution prevention, especially with toxic substances. Seek maximum re-use and recycling of materials among Industrial Park businesses

communities. They imposed the investors to reduce toxic materials risks through materials substitutions and integrated site-level waste treatment and also granting by development of its

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related infrastructure and also it links the IP tenants to companies in other countries as consumers and generators of usable by-products via resource exchanges and recycling network.

Water SupplyIPDD applying judgment in design of water flows to conserve resources and reduce pollution through strategies to those described for energy and materials-cascading through uses at different quality levels.Also there are other issues like Construction Management of Industrial parks, Pricing and allocating o plots, effective operational management of the Development parks and so on.

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SWOT AnalysisThis strategic analysis tool is used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in AISA. It involves specifying the objective of the AISA and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. SWOT is used to state recommendation & provide a good framework for reviewing strategy, position and direction of AISA.

StrengthsStrengths of AISA are those attributes that are helpful to achieving the objective.

AISA is a small organization with efficient and capable Team

Leadership and Supervisory skills of organization leadership

Healthy Atmosphere

Transparency and Sound Practices

Good relationship with international Agencies and potential investors

Provide with potential support to investors

On stop shop organization

Good marketing team

In 2008 AISA become best world investment promotion agency.

Weaknesses

Weaknesses of AISA are those attributes that are harmful to achieving the objective

No proper communication channel Centralized management (Low authority at horizontal level) Not well thought plan of the events Lack of proper coordination with relevant department No proper controlling system to check the each department performance No proper Office layout which sometimes it causes waiting of customer No proper research team to survey the existence and activation of the companies Lack of motivation and recognition Not good budgeting system Slow work procedure

OpportunitiesOpportunities of AISA are external or both external and internal conditions that are helpful to achieving the objective.

External opportunities World bank financial assistance

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Good relationship with foreign Agencies to help in capacity building International communities and donor countries’ fund for the construction of Afghanistan

which is a best opportunity for AISA to play coordinating, facilitator, and implementing role.

World community is ready to help Comparatively open system to accept changes

Internal opportunities There is scope to Restructure the organization chart to fill communication & controlling

gap Availability of team members to work on improvement Hire more professional & skilled people Reduce centralization to take advantages of time

ThreatsTreats of AISA are external conditions which could do damage to the AISA performance.

Unsustainable Political Stability

Deterring Security situation

Administrative corruption and inefficiency

Financing and Land Access to Investor

Un Availability of power technology

Lack of basic Infrastructure facilities

Lack of skilled work force

Regulatory restriction (Custom, taxation issues and insurance)

Lack of coordination and harmony among relevant government ministries and departments

Un-availability of insurance facility against political instability or economic crisis risk.

Lack of proper Communication with the relevant ministries especially Ministry of Commerce &

Trade.

Conflicts with public organizations

Not having legal power

Conclusion

After conducting the organizational analysis I would like to conclude my report as:

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Afghanistan Investment Support Agency (AISA) is a one stop shop agency for investors to promote and encourage private sector development. Every department of AISA works on its own scope with the supervision of the head of the department. AISA has its own marketing team (Investment Promotion Department) to attract and promote Investments both domestic and foreign. The department conducts road shows, conferences and seminars all across the world in order to make Afghanistan an attractive and profitable investment destination for both national and international investors. The investor support department is another effective part of AISA which provides potential support to the investors and in case of problems and challenges they voluntarily mediate between government and investors. Licensing department also plays an effective role in issuing investment licenses to the investors and monitor the functioning and non-functioning of the companies.

In administrative division Human Resource Department develops and implements policies relating to the effective use of personnel within AISA and providing support in the various human resource functions, which include recruitment, staffing, training and development, performance monitoring and employee counseling. Besides this, there is Procurement & Contracting Department & Finance Department which also plays an effective role in all day to day functions. Research & Policy department is on of the key department of AISA; they collect the data and research on investment opportunities and study the investment climate of the country. They also provide statistical information to the Government, and other agencies.

Another very important department is Industrial Parks Development Department which is concerned with the development as well as management of new and model industrial parks in order to increase access to land, infrastructure, and utility services.AISA is a semi government agency with highly centralized management system, transparency & sound practices are the core competencies that AISA is proud of.

AISA is also enjoying the support of World Bank in terms of grants issued by the World Bank for the development of industrial parks.Also there are a number of other donors and non-governmental organizations like United States Agency for International Development (USAID), United Nations Development Program, (UNDP), Peace Dividend Trust (PDT) coming up with a number of projects, these projects are implemented by AISA. The aims of those projects is mainly capacity building of the Business Development Centers.

In the nutshell AISA is committed in serving its community and is a strong entity in itself which is

contributing in making the economy healthy and stable, and there by a peaceful and prosperous

Afghanistan

Recommendation47

My recommendations for organization were as:

1. Decentralization of powerAs AISA has centralized management system and all the employees don’t have authority to work independently that’s why there is slow work procedure and waste of time and we can say the organization has mechanistic design and it is not useful because the mechanistic design is best suited only to a stable and relatively predictable environment, where decentralized decision-making authority spurs innovation and risk taking by allowing individuals to control resources and engage in experimentation without having to obtain the approval of higher authorities. By decentralizing the management system organization can take advantages of time and employee feels belongingness to the organization. This will make organic organization design which focused on change and flexibility, emphasizing horizontal relationships that involve teams, departments, and provisions to coordinate these lateral units. The organization should have proper formulization to direct and control employees.

2. The organization should have proper reward and recognition system.If an employee has shown a good performance he should be recognized and rewarded for the same which in turn will motivate them. I recommended them to adopt a number of motivational techniques for e.g. announcing the employee of the month, giving a souvenir, a letter of appreciation etc.

3. The organization should encourage participative managementIn order to have the employees a sense of belongingness towards the organization, they should be allowed to participate in the management decisions.

4. The performance appraisal;Performance appraisals are conducted annually however in order to keep a proper track of the performance I advised them to conduct the appraisals quarterly.

5. Recruitment of International staffSince the supply of skilled labor market of nationals is very low and cannot deliver good quality of output so they should hire international staff, though hiring of international staff is costly but it helps to train local employees and share updated information and deliver good quality of output.6. Proper coordination among the departmentsSince there is no coordination among the departments so I recommend that the department heads should meet at least once a week and discuss and synchronize their goals and objectives which will lead to a proper coordination among the departments.

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Bibliography

AISA brochures Annual report AISA website AISA investor journal magazine

“Thank you”

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AISA Afghanistan- A comperhensive study of the organization structure and functioning

Documents

departments of aisa

aisa staff

aisa website

aisa brochures

functions of departments

internship report

primary data

departments staff