Professional Documents
Culture Documents
Groups are a ubiquitous part of organizational life. They are the basis for much of the work that gets done, and they evolve both inside and outside the normal structural boundaries of the organization. We will define a group as two or more people who interact regularly to accomplish a common purpose or goal. The purpose of a group or team may range from preparing a new advertising campaign, to informally sharing information, to making important decisions, to fulfilling social needs.
1.1.1.1 Functional Groups A functional group is a permanent group created by the organization to accomplish a number of organizational purposes with an unspecified time horizon. The advertising department at Target, for example, seeks to plan effective advertising campaigns, increase sales, run in-store promotions, and develop a unique identity for the company. It is assumed that the functional group will remain in existence after it attains its current objectives those objectives will be replaced by new ones. 1.1.1.2 Informal or Interest Groups An informal or interest group is created by its own members for purposes that may or may not be relevant to organizational goals. It also has an unspecified time horizon. A group of employees who lunch together every day may be discussing productivity, money embezzling, or local politics and sports. As long as the group members enjoy eating together, they will probably continue to do so. When lunches cease to be pleasant, they will seek other company or a different activity. 1.1.1.3 Informal groups can be a powerful force that managers cannot ignore. One writer described how a group of employees at a furniture factory subverted their bosss efforts to increase production. They tacitly agreed to produce a reasonable amount of work but not to work too hard. One man kept a stockpile of completed work hidden as a backup in case he got too far behind. In another example, autoworkers described how they left out gaskets and seals and put soft-drink bottles inside doors. Of course, informal groups can also be a positive force, as demonstrated recently when Continental Airlines employees worked together to buy anew motorcycle for Gordon Bethune, the companys CEO, to show their support and gratitude for his excellent leadership. In recent years the Internet has served as a platform for the emergence of more and different kinds of informal or interest groups. Just as one example, Yahoo! includes a wide array of interest groups that bring together people with common interests. And increasingly workers who lose their jobs as a result of layoffs are banding together electronically to offer moral support to one another and to facilitate networking as they all look for new jobs.
grown so strong today that many organizations will actively resist hiring someone who does not want to work with others.
1.2.1 Interpersonal Attraction One reason why people choose to form informal or interest
groups is that they are attracted to one another. Many different factors contribute to interpersonal attraction. When people see a lot of each other, pure proximity increases the likelihood that interpersonal attraction will develop. Attraction is increased when people have similar attitudes, personalities, or economic standings.
Intra role conflict may occur when the person gets conflicting demands from different sources within the context of the same role. A managers boss may tell her that she needs to put more pressure on subordinates to follow new work rules. At the same time, her subordinates may indicate that they expect her to get the rules changed. Thus the cues are in conflict, and the manager may be unsure about which course to follow. Intra sender conflict occurs when a single source sends clear but contradictory messages. This might arise if the boss says one morning that there can be no more overtime for the next month but after lunch tells someone to work late that same evening. Person-role conflict results from a discrepancy between the role requirements and the individuals personal values, attitudes, and needs. If a person is told to do something unethical or illegal, or if the work is distasteful (for example, firing a close friend), person-role conflict is likely. Role conflict of all varieties is of particular concern to managers. Research has shown that conflict may occur in a variety of situations and lead to a variety of adverse consequences, including stress, poor performance, and rapid turnover. Role Overload A final consequence of a weak role structure is role overload, which occurs when expectations for the role exceed the individuals capabilities. When a manager gives an employee several major assignments at once, while increasing the persons regular workload, the employee will probably experience role overload. Role overload may also result when an individual takes on too many roles at one time. For example, a person trying to work extra hard at work, run for election to the school board, serve on a committee in church, coach Little League baseball, maintain an active exercise program, and be a contributing member to her or his family will probably encounter role overload. In a functional group or team, the manager can take steps to avoid role ambiguity, conflict, and overload. Having clear and reasonable expectations and sending clear and straightforward cues go a long way toward eliminating role ambiguity. Consistent expectations that take into account the employees other roles and personal value system may minimize role conflict. Role overload can be avoided simply by recognizing the individuals capabilities and limits. In friendship and interest groups, role structures are likely to be less formal; hence, the possibility of role ambiguity, conflict, or overload may not be so great. However, if one or more of these problems does occur, they may be difficult to handle. Because roles in friendship and interest groups are less likely to be partially defined by a formal authority structure or written job descriptions, the individual cannot turn to those sources to clarify a role.
that fosters performance. Of course, what constitutes optimal conflict varies with both the situation and the people involved.
Conflict can also result from excess competitiveness among individuals. Two people vying for the same job, for example, may resort to political behavior in an effort to gain an advantage. If either competitor sees the others behavior as inappropriate, accusations are likely to result. Even after the winner of the job is determined, such conflict may continue to undermine interpersonal relationships, especially if the reasons given in selecting one candidate are ambiguous or open to alternative explanations. Robert Allen resigned as CEO of Delta Air Lines a few years ago because he disagreed with other key executives over how best to reduce the carriers costs. After he began looking for a replacement for one of his rivals without the approval of the firms board of directors, the resultant conflict and controversy left him no choice but to leave.31 More recently, similar problems have plagued Boeing as its top executives have publicly disagreed over routine matters and sometimes gone to great lengths to make each other look bad.
One group of managers wanted to introduce a new sportswear line as quickly as possible, but other managers wanted to expand more deliberately and cautiously. Because the two groups were not able to reconcile their differences effectively, conflict between the two factions led to quality problems and delivery delays that plagued the firm for months. Competition for scarce resources can also lead to intergroup conflict. Most organizations especially universities, hospitals, government agencies, and businesses in depressed industries have limited resources. In one New England town, for example, the public works department and the library battled over funds from a federal construction grant. The Buick, Pontiac, and Chevrolet divisions of General Motors have frequently fought over the right to manufacture various new products developed by the company.
however, if the activities and goals of groups differ, they may view each other in a negative manner. When trying to prevent or correct intergroup conflict, it is important to consider the history of relations between the groups in conflict. History will repeat itself if left to its own devices. Limited resources and reward structures can foster intergroup conflict by making the differences in group goals more apparent. Differences in perceptions among groups regarding time and status, when coupled with different group goals, can also create conflict. Reorganization of the workplace and integration of services and facilities can be stressful to some and create negative conflict. Some individuals within the group have inherent traits or social histories that impact intergroup conflict, but problems within intergroup relations are not usually caused by the deviate behavior of a few individuals. 1.6.3.2 Consequences of Intergroup Conflict Intergroup conflict causes changes to occur, both within the groups in conflict and between them. Within the groups, members will usually overlook individual differences in an effort to unite against the other side, and with this concerted effort the focus is on the task. The group can become more efficient and effective at what they do, and members can become more loyal, closely following group norms. Problems can occur, however, when the group loses focus of the organization's goals and becomes closed off from other groups. Haughtiness and isolation quickly lead to decreased communication. Communication is the key between groups in reciprocal interdependence, and these have the highest negative consequences for lack of effective communication. Miscommunication can be the death knell of any organization. 1.6.3.3 Managing Conflict in Organizations How do managers cope with all this potential conflict? Fortunately, there are ways to stimulate conflict for constructive ends, to control conflict before it gets out of hand, and to resolve it if it does. Below we look at ways of managing conflict.
Another useful method for stimulating conflict is to bring in one or more outsiders who will shake things up and present a new perspective on organizational practices. Outsiders may be new employees, current employees assigned to an existing work group, or consultants or advisors hired on a temporary basis. Of course, this action can also provoke resentment from insiders who feel they were qualified for the position. The Beecham Group, a British company, once hired an executive from the United States for its CEO position, expressly to change how the company did business. His arrival brought with it new ways of doing things and a new enthusiasm for competitiveness. Unfortunately, some valued employees also chose to leave Beecham because they resented some of the changes that were made. Changing established procedures, especially procedures that have outlived their usefulness, can also stimulate conflict. Such actions cause people to reassess how they perform their job and whether they perform it correctly. For example, one university president announced that all vacant staff positions could be filled only after written justification had received his approval. Conflict arose between the president and the department heads, who felt they were having to do more paperwork than was necessary. Most requests were approved, but because department heads now had to think through their staffing needs, a few unnecessary positions were appropriately eliminated.
eliminating lower-level conflict. When labor unions like the United Auto Workers make wage concessions to ensure survival of the automobile industry, they are responding to a super ordinate goal. Their immediate goal may be higher wages for members, but they realize that, without the automobile industry, their members would not even have jobs. Finally, managers should try to match the personalities and work habits of employees so as to avoid conflict between individuals. For instance, two valuable subordinates, one a chain smoker and the other a vehement antismoker, probably should not be required to work together in an enclosed space. If conflict does arise between incompatible individuals, a manager might seek an equitable transfer for one or both of them to other units.
Regardless of the approach, organizations and their managers should realize that conflict must be addressed if it is to serve constructive purposes and be prevented from bringing about destructive consequences. Conflict is inevitable in organizations, but its effects can be constrained with proper attention. For example, Union Carbide sent 200 of its managers to a three-day workshop on conflict management. The managers engaged in a variety of exercises and discussions to learn with whom they were most likely to come in conflict and how they should try to resolve it. As a result, managers at the firm later reported that hostility and resentment in the organization had been greatly diminished and that people in the firm reported more pleasant working relati
person's behavior, by focusing on the cause of the conflict and the attitudes of those involved, it will lead to a more permanent resolution. It is also possible to change the structural variables involving the conflicting groups, such as changing jobs or rearranging reporting responsibilities. This approach is much more effective when the groups themselves participate in structural change decisions. Without meaningful input, this resolution method resembles avoidance or forcing and is not likely to succeed, further frustrating all involved. Any method or response to conflict, lost productivity, miscommunication, or unhealthy work environment can be reconstituted in many forms of ADR. Alternative dispute resolution should also be appropriate to the needs of those involved. It is crucial that the organization determines the needs of its stakeholders, the types of conflict that occur, and the conflict culture (how conflict is dealt with) within the organization before initiating an ADR program. Any program must allow for creativity, approachability, and flexibility if people are asked to utilize it. All employees should be aware or involved in the establishment of an ADR program, if it is to work properly. Without full involvement or input, needs assessment is hit or miss, and assumptions lead to actions, which lead to the same place you were before. This assumicide behavior by an organization's leadership would not be tolerated in marketing a new product or acquiring a capital asset, so why are people less important? Any collaborative process intended to address and manage intergroup conflict should have objectives to encourage it. In this major commitment of time and resources, success is its best reward, but to ensure an ADR approach suitable for you, it is important to:
Build trust Clearly define participants' roles and authorities Establish ground rules Promote leadership Bring a collaborative attitude to the table Maintain participant continuity Recognize time and resource constraints Address cultural differences and power imbalances Build accountability and organizational commitment Make this a consensus process Produce early measurable results Link decision making and implementation Promote good communication and listening skills
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Conflicts within or between groups can be destructive or constructive, depending on how the conflict is handled. When an organization is creating a dispute resolution process, there are key factors to success: 1.A critical mass of individuals who are committed to the process; 2.A leadership group who perceive it in their best interest and the best interests of the people they serve; 3.Strategic cooperation among historical enemies; 4.Realistic and satisfactory outcomes; 5.A moratorium on hostilities or conflict-seeking behavior. There also are barriers to success: 1. 2. 3. 4. 5. 6. 7. Fear of losing power; Unwillingness to negotiate; No perceived benefit; Corporate philosophy; Top leadership reluctance; Lack of knowledge about ADR; Lack of success stories.
Responsible measures to reduce barriers and encourage a true paradigm shift are training, incentives, marketing, periodic review, case studies, and top management support and participation. Facilitators trained in mediation and other forms of ADR are a necessary resource from outside or within the organization. The workplace of the new millenium will have in-house mediation or other conflict management programs to reduce formal claims and act as a risk management business practice.
Previously there were some problem in storage and handling. In 1990 they increased their storage capacity by 50,000 at Korrangi and got the facility of direct discharge of tankers at Keamari and pumping it to Korrangi. PAK ARAB REFINERY LTD (PARCO) with 60% of the share holding is by the Government of Pakistan and 40% by the Emirate of Abu Dhabi through its Abu Dhabi Petroleum Investment Company (ADPI), a subsidiary group of International Petroleum Investment Company (IPIC). The Refinery capacity is around 4.5 million tons per annum equivalent to a processing throughput of 100,000-barrels/ day of a mixed Arabian Light/ Upper Zakum/ crude slate, which is being transported to the Refinery site by PARCO's Keamari to Mahmood Kot (KMK) pipeline system from Karachi. The maximum production of refinery is 110000-barrels/day, but the consumed production is 80000-barrels/day. The city of Multan, only 65 km, from the Refinery is well connected with a national communications network of rail, road and air. The nearest rail link is through Mahmood Kot, which is about five kilometers from the Refinery. Within a 30 km radius of the refinery, there are two thermal power complexes at Kot Addu and Muzaffargarh having a capacity of 1,500 and 1,300 MW respectively. With the commencement of Refinery operations the companies consequently plan to market its fuel products, LPG and Lubricants through own and franchised PEARL retail depots and distribution facilities. Off take agreement have already been signed with SHELL, CALTEX and PSO for the uplift ment of 75% off all products of MCR. For remaining 25% production an agreement has signed with TOTAL (France).
MISSION 16
To maintain PARCOs flagship role in the countrys energy sector by making it a fully integrated oil conglomerate through broader vision, accentuated drive and professional excellence. A continuous struggle is needed to make PARCO a symbol of success that can offer unmatched benefits to its owners, employees, business associates and the community it operates in. VISION For PARCO to remain among tomorrow's corporate winners. They explain their vision statement in following way: it may not only need to have a clear vision but also a passion for translating that vision into reality. The big challenge is therefore, not only trying to figure out what future will be the right one, but to choose a future that will give definite competitive advantage to the Company over the long-term. Therefore, creating a cause for action besides charting a course on how to get there.
Beside PARCO has enabled Government of Pakistan to save in freight pool Rs.13658 million. 17
CAPITAL STRUCTURE Authorized Capital Paid-up-Capital GOP *ADPI Reserves Long Term Loan Debt: Equity Ratio INITIAL (1981) 1,500 540 324 216 1 1,115 67:33 PRESENT 5,000 2,160 1,296 864 14,340 52,762 77:23
(in million)
Expanded Shareholders' Equity from Rs. 540 million to Rs. 13 billion (by over 24 times) Equity Financing of vital energy sector projects completed or under implementation: -
Electric and Instruments Process department Personnel and Administration Technical Services Mechanical and maintenance
Utilities and Offside Shipping and Excise Health, Safety & Environment Engineering Services
petroleum and requested in the favor of their employees. It has decentralized structure and team based environment. Employees work in teams so that they may able to work together more efficiently. No unionization is there. To avoid such problems all low level workers are hired at contractual basis and other management workers are on permanent jobs. PARCO is very much conscious about the education of employees. It hires highly qualified and competent persons. They say We believe on giving the designation to employees according to their qualification. There is restriction that the applicant will be eligible to apply for a job if he has at least A grade throughout his education. 2.5.2 Facilities for the Employees PARCO provides different facilities to its employees according to their designations. It tries to satisfy their employees by giving them different facilities such as: 1. Housing Complex: Different residential apartments are given to the workers. There are different categories of houses. For bachelor employees there are Bachelors Hostels in which, there are two categories one is for administrated staff and other for technical workers. Employees are provided with apartment, houses, and bungalows as the got promotions. 2. Bloomfield Hall School: A school is established with the coordination of Bloomfield Hall School system for employees children. Building is provided by PARCO and the mutual management i.e. of is here to manage the school. Staff is hired with the coordination of PARCO and Bloomfield Hall administration. Vice Principal Mrs. Shaista Qureshi handle all the operations related to this branch. 3. Officers Club: For recreation of employees officer club is established. Employees get the memberships of this club and renew it annually. Different sort of activities are done by this club. Melodious Geet & Ghazal Evenings and Sports Mania are some of the activities that are held by officers club. 4. Hajj policy: PARCO provides the opportunity of offering Hajj to their employees on its behalf. For this purpose, every year some employees are selected from different department by lucky draw. 5. Ibn-e-Sina Hospital PARCO is more conscious about there employees health. For this purpose certain hospitals in which Ibn-e-Sina is one of them. There are separate hospitals for technical and administration staff. All the facilities are available in these hospitals.
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2.5.3
HUMAN RESOURSE
HRD at Mid country Refinery: All the issues and operation related to the personnel at mid country refinery are controlled by its HR manager Mr. Mansoor Bin Kafeel. The hiring decision related to very low level worker are taken by him. But the major operations are performed after the approval of GM Corporate Affairs at head office Karachi. Diverse cultural backgrounds and multi-ethnic origins add up to create a strong resource base at PARCO. Each member makes a valuable contribution while overall functioning as a team. Committed to doing more for their country, PARCO people remain dedicated and passionate about their work. PARCO people are focused on broadening horizons and meeting new challenges. Creative and multi-talented, these fine individuals take pride in shaping the future of Pakistan.Different Issues Related With HR Department Social Responsibilities: PARCO is very much concerned about social responsibilities. it performs many activities which gives proof about it. Some of these are following: Safety Programs: PARCO give more importance to the safety of employees. Different sessions and trainings are conducted to give the awareness to the employees about their safety. Safety Walks are also conducted annually before the Performance Award Ceremony. Safety Walk 2006 was conducted November 16 2006. Clean Environment: There is great stress on the clean environment. Different precautions are adopted in this concern. To appreciate PARCOs efforts in this regards, soon after securing trip quality certification for its Mid-Country refinery, PARCO notched another quality achievement in the form of Environment Excellent Award, 2006. The award is in appreciation of PARCOs concern for environment, its environment-friendly policies as well as investments in this regards. Awareness about Cancer: With the coordination of Shaukat Khanum Cancer hospital, they try to create awareness in the society about cancer. They sponsor many walks, seminars and meetings in this regards. 2.5.4 Managers responibilities. The critical battleground in career development is inside the mind of the person charged with supervisory responsibility. So in PARCO, Senior Management executive is responsible for communicating career options to the technical and administrative staff. PARCO believes in that The weakness of employee is the weakness of manager and the strength of employee is the 20
strength of manager. It is the responsibility of manager to develop his team, identify the weak areas of every individual and then offer training in that areas where the training is needed. Problems in Performance Measurement & Evaluations: Although Personnel Department tries to communicate a fair and smooth appraisal system but due to some reasons, the inaccuracy in performance measurement occurs. The reasons for this include: 1.Organizational Influences. 2.Personal Biasness. 3.Difficult To Set Qualitative Standards. There are also some problems, which the personnel department has to face in the accurate evaluation of the measured performance. The problems include: 1.Subjective Standards. 2.Rating errors. 3.Negative Communication. But the personnel department believes that its performance appraisal system is still working fine. They have strong intensity of the relationship in the organization.
SWOT ANALYSIS
Strength:
PARCO is the largest oil refinery in Pakistan. Its production capacity is more than the capacity of other refineries combined. Its size gives the opportunity to capture the market share and dominate the competitors. PARCOs 1228 km pipeline network distinguishes it from the competitors. It has very managed network for the supply of crude oil. 21
PARCO has achieved an AAA credit rating. This credit rating is issued by the credit rating agencies for the payment of the long-term loans. PARCO employees are very much committed to their work. They behave like they are in business for their selves. They have free access to the management and their suggestions and recommendations are given serious considerations. PARCO is first ever oil refinery in Pakistan involved in the refining, distribution through pipelines and marketing of its products. By integrating the upstream and downstream activities, the company has been able to manage the functions well and get margin from each activity.
Opportunities:
Over all demand of the petroleum products is increasing at the rate of 5-10% in Pakistan. Especially in northern region rate is even more so this provides the substantial opportunity. Most of the oil refineries are located in upper side or low side. There was no refinery in northern side so this will provide an opportunity to market the products in this region and this region also provides a substantial growth potential in future.
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300,000 millions tons of gasoline is surplus every year. The excess gasoline can be used to earn the export revenues by selling it to foreign countries.
Weaknesses:
Now being in the competition with the big oil marketing companies, PARCO has not yet realized the importance of advertising and other promotional activities. On the other side PSO, SHELL, and CALTAS are spending heavy amounts on the promotion of their products. PARCO mid country refinery (MCR) is running at the 70% of its capacity. This means that they are producing 20,000 BPD less than what they can. If this would remain the practice, the
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company would be facing difficulties in future. They can never reap the advantage of size and economies of scale would never be achieved. PARCO mostly rely on foreign marketing companies for marketing of oil products. At present they are not utilizing their capacity fully and they are utilizing only 80% of total their capacity. So for removing this condition they need strong marketing campaign because it will create the awareness among the people, which will be helpful for increasing the demand of PARCO products. This marketing effort not only will be helpful for selling 25% but also for the utilization of full capacity.
Threats:
PARCOs mid country refinery has been newly established it might have to face the problems to get the order from oil marketing companies. OMCs have their long-term agreements with oil refineries and they are bound to fulfill their agreements. In this situation it would be tough job for the PARCO to show its presence in the market.
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Country is facing uncertain economic and political situation. Oil prices fluctuate and they are not stable. This economic uncertainty has direct impact upon the future of the company. During recession OMCs decrease the purchase quantity of oil and this creates a surplus for the company. The company has no proper utilization of this surplus and ultimately they have to reduce the production, which has negative impact on the profitability of the company.
CONCLUSION:
Parco is one billion dollar sophisticated state-of-the-art refinery. The company is strong due to its human resource. The elements such as competence in management, well defined policy and procedures making mechanism ability, and committed leadership present in natural order that makes the PARCO AAA rating firm since the last four years. PARCO expansion is upstream and downstream through ventures and alliances. For backward integration PARCO develop pipeline network from Karachi to PARCO destination. The 25
managerial decision of pipeline network reduce the cost of Value System by million of dollars of every year. As far as the forward integration is concerned PARCO venture with the French based oil retailing company and serve the national market as OMC (Oil Marketing Company). This decision increases the average capacity utilization of plant. PARCO also improve its forward integration strategy by alliance with other OMCs particularly with PSO by supplying the crude oil to KAPCO through the pipeline which is owned by PSO. PARCO also share the storage units of PSO for other forward integration activities.
RECOMMENDATIONS:
This time when industry is fully mature, and the competition in terms of access to final consumer is very high the companies usually face the problems of slow demand growth, emphasize on differentiation and services, marketing. Although they have tackled the problems very well but there is always need for the cope with the changing world, so some proposed strategies are as follows. MARKET DEVELOPMENT
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PARCO should look for the export of its Petroleum products specially the LPG that is in excess of demand. This will not only help to keep the operations efficient but also to earn a very valuable foreign exchange for the country. MARKET PENETRATION PARCO has already signed an agreement with the SHELL, CALTEX and PSO for the uplift of 75% of all its products. But with the remaining 25%, which is almost 1.2 million tons per year, they have to increase their marketing efforts to sell it out. They need to promote their products because they have to face a very tough competition form old market players including multinationals. IMPLEMENTATION PLAN We have presented the different proposed strategies, now we talk about the implementation plan for the achievement of these proposed strategies. For the implementation of the Market Penetrating strategy PARCO peoples can penetrate the market by advertisement on 1. TV 2. NEWPAPERS 3. OUTDOORS HOARDINGS TV is most effective media to promote the product. Because it helps to creates the awareness and has mass media access and best for their marketing and selling efforts. During the timing of cricket matches, they can attract the attention of viewers. For the implementation of Market Development Strategy It is keen to find the off shore markets for their products. Government of Pakistan should take personal interest and find the markets in Japan and other far eastern countries can be a good market for their products. TECHNOLOGICAL FACTORS: In this ever-changing world of business only those will be surviving who have got latest technology and they have complete knowledge this technology. PARCO is very good in both technology and the use of technology.
REFERENCES
Stanley Holmes, Nike: Can Perez Fill Knights Shoes? Business Week, November 19, 2004, www.businessweek.com
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Stanley Holmes, Inside the Coup at Nike, Business Week, February 6, 2006, www.businessweek.com on May 20, 2006; Stanley Holmes, Nikes CEO Gets the Boot, Business Week, January 24, 2006, www.businessweek.com Daniel Roth, Can Nike Still Do It Without Phil Knight? Fortune, April 4, 2005, www.fortune.com
Annexure 1 COMPARATIVE ANALYSIS OF PRL AND PARCO: Structure PRL PARCO Cultural Issues Yes No Identification of/ address to by having close and good During training the Labor Needs relationships with CBA 28
on the intranet E mails, Telephones and weekly Organization Networking daily and monthly meetings meetings celebrate family day every year Recently a salary survey was Remuneration quarterly conducted through third party TNA, performance Goal based performance and IPF Performance targets & Behavior appraisals (Individual Performance factors) competencies Compensation Policies Promotions Rating as poor, good & VPP outstanding. Spark awards Employee of the month SRA (Special Recognition Awards) Kind of Leadership Not very healthy due to Good team work and close between the Leaders andtransformational changes relationships the Followers would probably take 5 years to build a healthy relationship The Best Practices PRL PARCO Best practices learned Going towards openness in Through KPIs communication. Trying to develop task forces and teams. Adoption of best practices from MNCs. Approachability of Sr. Management. Delegation of task Ethical Behavior Ethics policies, Ethics Through PMP Committee monitors and resolves (performance mgt process) ethical issues and dilemmas Employee Extensive trainings Indoor/ On Need basis Development Outdoor 16 Hrs/year/employee training Stress Management Sports and games Stress Management programs Handle Conflict As per the policies or otherwise Through demonstration by counseling 2.5.4.1 Employee Engagement PRL PARCO Improvement in People Through trainings Through trainings skill through job rotation Rotation is done on need Rotation is done on need basis. basis. If any employee wants to change Job Design Enhancement is done department he needs to get NOC according to the skill level and document approved from head. experience of employees. Change Management PRL PARCO Organizational Change, Not managed, opening line of By PMP, using surveys and Example communication upward interview of employees Adopted the policies from British Petroleum 29
Continuous improvement of processes No strict policies observed. Bi- annual audits Gauging Behavior PRL PARCO By PMP Employee Attitude By Satisfaction surveys By visual observation general salary levels are known but Salary Structure Nothing not the individuals salary Strict discipline. If a person is late more than 3 days Absenteeism and line managers to report it to in a month he loses his leaves Turn over HR If a person is late more than 7 days he gets dismissed. Compliance with Government standards PARCO CORPORATE ACHIEVEMENTS & MILESTONES Commissioning of Karachi-Mahmood Kot crude -cum-product pipeline system Additional 50,000 tons of Storage facility at Korrangi and direct discharge of ships into PARCO network to ease pressure on Keamari Oil Piers (DKF). Introduction of flow improving technology to increase pipeline installed capacity of 2.9 to 4.0 million tons/ annum. Completion of Bubak and Fazilpur Pumping stations, further raising the pumping capacity by 50%. System UP-gradation/Modernization: Telecom & SCADA, Revamping, Intelligent Pigging & Pipeline Rehabilitation Completion & Commissioning of 360 kms Pipeline Ext. Project From Mahmood Kot to Sheikupura near Lahore Via Faisalabad Commissioning of PARCO Mid Country Refinery (MCR) with a 4.5 MT/ p.a capacity Launching of Marketing Operations of PEARL in partnership with SHV & OMV and incorporation of a Joint Venture Co. with TOTAL Fina Elf for development of retail outlets. Under current implementation: White Oil Pipeline Project (WOPP) 1981 1990 1992 1994 1995 1997 2000-2001 2000-2001 2002
Annexure 2
GROWTH AND PERFORMANCE The following is an overview of our major milestones: Year Milestone 1990 Debottlenecking of Keamari Facilities (DKF) Project. Additional 50,000 tons of storage facility at Korangi & direct discharge of ships into PARCO network to ease pressure on Keamari Oil Piers.
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1992 Introduction of flow improving technology to increase pipeline installed capacity of 2.9 to over 4.0 million tons/year, with flow improver. 1994 Completion of Bubak and Fazilpur pumping stations, raising pumping capacity by 50% to 6.0 million tons/year. 1997 Completion and commissioning of 360 km Pipeline Extension Project MFM) from Mahmood Kot to Machhike near Sheikhupura via Faisalabad. 2000 Completion and commissioning of Mid-Country Refinery (MCR) at Mahmood Kot. 2000 Launch of Marketing Operations. 2002 Commissioning of Gantry at Faisalabad 2004 Completion of PAPCOs 780 Km White Oil Pipeline (WOP) at a cost of US$ 480 million. 2005 IMS Certification of Mid-Country Refinery 2006 Korangi-Port Qasim Link Pipeline (KPLP) 2006 Export of Motor Gasoline 2006 IMS Certification of Pipeline Division 2007 IMS Certification of Corporate Headquarters 2008 Zamzama condensate injection from PSA-2 Bubak 2009 Implementation of SAP ERP 2009 HR Transformation
Annexure 3
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Hierarchy
Annexure 4
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Annexure 5 33
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Annexure 6
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Annexure 7
Mr. Muhammad Rasheed Jung Managing Director, Pak-Arab Refinery Ltd. Mr. Muhammad Rasheed Jung has 38 years of experience in managing and operating oil refineries, petrochemical complexes and pipeline systems in Pakistan as well as abroad. He has been associated with Pak-Arab Refinery Limited since 1989 and has played a significant role in successful completion of PARCOs various expansion projects. He was the Project Coordinator for PARCOs US$ 886 million state-of-the-art Mid-Country Refinery. Prior to joining PARCO, Mr. Jung had been working for ADNOC, PERAC and National Refinery Limited. His key areas of expertise are Engineering, Financial/Strategic Management, Corporate Affairs and Human Resource Development. He holds Masters Degree in Electrical Engineering from Germany and is a senior member of Instruments Society of America. Mr. Tariq Rizavi Chief Executive Officer, Pak Arab Pipeline Company Ltd. He holds a Masters Degree in Chemical Engineering and a Postgraduate Diploma in Management. He joined PARCO as a Trainee Engineer in July 1975 and was the first engineer and possibly amongst the very first employees of PARCO. During his thirty three years association with PARCO, Mr. Rizavi has developed his career with higher and higher responsibilities in Process Engineering, Commercial and Corporate Planning. He has also provided leadership support to the Human Resource Development / Administration discipline. Mr. Feroze Jehangir Cawasji DMD Finance & Corporate Affairs Mr. Feroze Cawasji joined PARCO in 2003 as Deputy Managing Director (Finance & Corporate Affairs), he is a member of the Institute of Chartered Accountants of Pakistan (ICAP) and brought with him more than 20 years of rich experience, including 15 years in the oil industry. With his appointment, the company crossed another milestone on the way in achieving a strong and balanced organizational structure that is capable of sustaining its growth. Mr. Shuja Uddin Ahmed DMD Operations Mr. Ahmed has around 32 years of professional experience in leading Petroleum Industry and multinational organizations; including about 30 years diversified experience in PARCO. Major areas of responsibility included Corporate & Strategic Planning, Project Development, Projects, Mid Country Refinery Project, and Marketing & Commercial. He holds a B.Sc. Degree in Chemical Engineering and has attended several training programs and professional development courses. Mr. Munawar A. Tejani Company Secretary With PARCOs continuing growth and diversification, Mr. Munawar A. Tejani joined PARCO as Company Secretary to provide support to the Management Team. Mr. Tejani is a member of the Institute of Chartered Accountants of Pakistan (ICAP) besides holding a Bachelors degree in law. He brings with him more than 20 years experience in financial and secretarial areas.
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Syed Zakir Hussain Shah GM Pipelines Mr. Zakir Hussain Shah joined PARCO in 1978 and was assigned the construction of the Karachi-Mahmoodkot pipeline. He has worked in various capacities and departments and has extensive experience in Project Implementation. He has played a pivotal role in various PARCO projects including the White Oil Pipeline Project. His area of expertise also includes Operations and Maintenance of pipelines. Mr. Zakir has a bachelors degree in Mechanical Engineering. Mr. Anwar Ahmed GM Special Assignments During his 32 years association with PARCO, Mr. Anwar Ahmed has grown into more senior responsibilities within the Finance discipline. He has a Masters Degree in Economics and is also a fellow member of the Institute of Chartered Accountants of Pakistan. He joined PARCO as an accountant and since then, on the basis of his ability and hard work, has been steadily assuming higher responsibilities.
Mr. Ahmed Nadeem Jamal Head of Internal Audit Mr. Jamal has been with PARCO since 2002 and currently serving as Head of Internal Audit. Having extensive experience with different multinationals where he was responsible for Information Technology, Finance, Materials Management and Internal Audit. Mr. Nadeem Jamal is a member of the Institute of Chartered Accountants of Canada and Bermuda since 1985 and an FCA member of the Institute of Chartered Accountants of Pakistan. Mr. Abdur Rashid GM Technical Mr. Abdur Rashid has a Bachelors Degree in Mechanical Engineering and has served PARCO since 1993. During his professional career of 35 years, he has worked on petroleum refinery, petrochemical plants and pipeline projects, covering almost all facets of project engineering leading teams involved in Mega Projects of immense importance in the Energy Sector. Mr. Shah M Saad Husain GM Corporate Affairs Mr. Saad has Masters degree in Engineering (USA) and Business Administration (IBA) along with 32 years of management experience in the energy and engineering sectors with multinational, private and government organizations in Engineering, Project Management, Marketing, Business Development, HR, External Affairs, Corporate Planning, Administration, CSR and Customer Relations. Prior to joining PARCO in November 2008, he worked for about 10 years at Indus Motor Company, the joint venture of Toyota Motor Corporation in Pakistan, where he has held the positions of Director Marketing, Director HR, and Director Corporate Planning & Customer Relations. Before that, he was employed as General Manager in British Petroleum and in BHP, and has also worked in PIDC as Chief Engineer. Syed Zawar Haider GM Marketing and Commercial He holds a Bachelors Degree in Mechanical Engineering and MS in Engineering & Management Science from USA. Since his joining, Mr. Zawar Haider has played an important role in various marketing and commercial initiatives of PARCO. He has brought 25 years of sound and diversified experience of working with leading multinationals in the oil industry like Shell, Mobil, Exxon Mobil with local and overseas assignments. Mr. Haider was also seconded by PARCO to Oil Companies Advisory Committee (OCAC) as Secretary General in November 2006 where he took important initiatives on downstream oil industry issues. Mr. Shahid Mahmood Khan Head of Corporate Planning Mr. Shahid Mahmood Khan has joined PARCO as Head of Corporate Planning, in 2008. He brings with him around 30 years of experience in General Management, HR, Administration, Marketing, Finance, Materials Management / Supply Chain, Government/Trade Bodies Relations, Business Development, Corporate and Strategic Planning in diversified sectors including Oil & Gas, Automobile and Chartered Accountancy / Consultancy. Mr. Khan is a Chartered Accountant and has attended various management courses including the advanced management program from INSEAD, France.
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Mr. Attaullah GM Refinery Mr. Attaullah did his B.Sc. Engineering in Mechanical in 1975 from the University of Engineering and Technology, Lahore and MBA from Bahauddin Zakaria University, Multan. Later he did a Diploma in Planning and Resource Management from Colorado State University. In 1985, he completed his Masters in Engineering Economics from the same university. Mr. Attaullah joined PARCO in May 1998 as Chief Engineer and remained actively involved in the construction, commi ssioning, start-up and later in Maintenance and Materials Management of Mid-Country Refinery. He became Manager in January 2000 and has worked in Utilities and Oil Movement, and Maintenance Departments, before becoming DGM (Refining).
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