APPLICATIONS OF PRINCIPLES OF MANAGEMENT

Pakistan State Oil

INTRODUCTION
For the past 35 years, Pakistan State Oil has been fuelling the needs of
the nation. Acknowledged as the leading Public Sector Company of
Pakistan, PSO has been driving the wheels of the national economy and is
the first public company to pass the 1 Trillion rupee revenue mark.

HISTORY AND BACKGROUND

The creation of Pakistan State Oil (PSO) can be traced back to the year
1974, when on January 1st; the government took over and merged
Pakistan National Oil (PNO) and Dawood Petroleum Limited (DPL) as
Premiere Oil Company Limited (POCL).

VISION
To excel in delivering value to customers as an innovative and energetic company that gets
to the future first.

MISSION
We try to provide our customer the best quality of petroleum, goods and services based on:
1. A professionally trained, high-quality, motivated workforce
2. The lowest-cost operations
3. Sustained growth in earnings in real terms
4. Highly ethical, safe, environment-friendly and socially responsible business practices

GOALS:
Goodwill first priority
Business development
Enabling environment for human potential to flourish
Brand Recognition & Brand Image
Social, philanthropic or community development

LONG TERM GOALS

Enter in coal fuel
Own refinery system
Decreases the cost of productivity

PLANS
Add value to its business
Benefits for shareholders and the employees of the company
Formal framework by job tasks
Branding reputation

STRATEGIES
Lowest cost operations policy
Market share with leader Shell
Highest quality lubricants
Unbranded lubricants

OBJECTIVES OF PSO
Maximize profitability
Explore potential markets
Expand the PSO Cards Business
Develop bio-fuels

FOUR FUNCTIONS
Planning:
Both PSO and Engro are in agreement that coal is the best possible
indigenous fossil fuel resource for Pakistan and has the potential to
address the country's severe power shortage and bring energy security to
the country. Through this project, not only will the energy chain be
strengthened it will also generate extensive economic activity nationwide
while developing Pakistan's human capital through the execution and
operation of state-of-the-art coal mining and coal-based power generation
projects. Additionally by playing a lead role in developing this national
resource, both companies will be able to strengthen their financial bottom
line and expand further through downstream commercial projects based
on Thar coal.

Leading:
Different Deputy General Managers is responsible to attain their respective tasks on scheduled time.

Organizing:
As PSO has a strong back up of petroleum & power engineering so the PSO will be established the power
plants and Engro is providing the human resource. This contribution was set because of the specialties of the
firms in their respective Industries.

Controlling:
Different General Managers is and would be tracking the performance evaluation on different
scales of time. Rather than that Managing Directors would be keeping an eye over the progress
on different intervals of Time.

ROLES
Interpersonal Roles:
The first level Managers are usually got in touch with Non-Managerial
employees who are usually on production side and use to supervise
them Rather than that different interactions with external elements
also take place like Management training programs for upcoming
talent.
Informational Roles:
Different projects or consumers have different demands all
information to satisfy the consumer needs is collected by Deputy
General Managers and processed forward with the help of General
Managers.
E.g: if any of Investor wanted to have a brief information on the
financial accounts of PSO so DGM and GM would provide him
sufficient knowledge to work with.

ROLES
Decisional Roles:
These roles are occupied by Managing Director and Board of Director (BoD). If PSO found
any opportunity to work on any project, MD and (BoD) would be taking decision whether to
conduct the project or not.

SKILLS
Technical Skills:

Training and development Manager would be training the internees

twice a year. He has that much skills that he is able to conduct his
job properly.
Human Skills:
Deputy General Managers usually provide motivational speeches or
organization success stories in their respective department during
working days to motivate employees towards their work tasks.
Conceptual Skills:
Usually Managing Director and Board of Director does not upholds
the project, which was offered by many different corporates
e.g: PSO Managing Director has ended up the agreement with PIA
because of their increased credit amount.

ORGANIZATIONAL CULTURE WITH 7

ELEMENTS
Attention to detail
Employee Engagement Programs occurs at different intervals of time to
check whether the employees are putting their full efforts in their work or
not.
Innovation and Risk Taking
Highly supportive environment in regard of completing of work task make
employee to bring up innovative ideas and risk management.
Stability
The decisions & performances stability may vary from time to time.

 Aggressiveness
Due to same sales promotions and tasks to all sales employees made a healthy
competition between the employees with a great out comes.
Team Orientation:
Usually almost every project or sales promotion is taking place in team.
Outcome Orientation:
PSO have high ethical standards and a Business 'Principles and Ethics Policy' in place.
We value, encourage and inculcate corporate reforms, good governance, best business
practices and an environment of continued adherence to 'Zero Tolerance', resulting in
the development of our human capital and meeting all business challenges.
People Orientation
Interactive sessions are regularly held by the Managing Director at all levels because
clear, coherent and consistent messages ensure that employees are able to integrate
the inputs into their thinking


TRUST ON OMNIPOTENT OR SYMBOLIC VIEW

PSO believe on omnipotent view

System of performance and feed evaluation

Individual performance based on company goals

Performance based rewards

GENERAL ENVIRONMENT HOW IT

AFFECTS THE DECISION OF
MANAGERS.
Concern about the environment
Educating the customers

DECISION MAKING PROCESS

Step1: Identifying a problem:
According to PSO (Pakistan State Oil) the problem is for a new project a strong marketing and sales
promotion is required.

Step 2: Identifying decision criteria:

PSO wants to promote their new project through different kinds of advertisements include print
advertising, outdoor advertising, broadcast advertising, billboards advertising, and public service
advertising.

STEP 3 ALLOCATING WEIGHTS TO THE CRITERIA:

According to their project they promote their products.

Print media

10

Social media

Commercial advertisements

Outdoor activities

Public services

 STEP 4 DEVELOPING ALTERNATIVES:

For a new project like fuel pumps or to promote new products for instance lubricants (engine oil)
PSO promoted through commercial advertisements, print media and social media.

Print media
Social media
Commercial
advertisements

Newspaper
Face book
30 sec ad on
T.V

Magazines books
Twitter
YouTube
Websites
radio

 STEP 5 ANALYZING ALTERNATIVES:

Here they analysis that which alternative is more profitable for a company through these
advertisement ways.

Print media
Social media
Commercial
advertisements
Public services

Investments In
Millions
Newspaper 20
Face book 10
30 sec ad on T.V
50
Free education 40

Total cost
Magazines 10
Twitter
7
Websites 20

Books 10
YouTube 12
Radio 15

40
27
85

Aid services
13

Bill boards
25

78

 STEP 6 SELECTING AN ALTERNATIVE:

The revenue PSO generated from promotion of new project and which is reasonable cost for
investment that is print media and social media is obviously less expensive rather than print
media but according to company they target business people, whether middle or lower class
every business person read newspapers, magazines or books every day etc.
STEP 7 IMPLEMENTING THE ALTERNATIVE:
We have implemented print media because it is more profitable for company in less cost to
promote their project through newspaper, books or magazines etc.

 STEP 8 EVALUATING DECISION EFFECTIVENESS:

After meeting a marketing campaign and after certain time period an analysis test
can be done to check out that our decision making process is successful or not.

IMPORTANCE OF MOTIVATION WHICH THEORY

THEIR IMPLEMENTING IN THE ORGANIZATIONAL
- Shaukat Raza Mirza Management Excellence Award
- PSO Managing Director's Performance Award
- Employee Motivation surveys
- High ethical standards and a Business 'Principles and Ethics Policy'
- PSO encourages recreational activities of workforce at all levels
- Mixture of X and Y theory
- X theory is highly followed

ORGANIZATION STRUCTURE VS. MECHANIC

STRUCTURE
PSO organization structure is organic. Every level of managers have their
limit of authority to take decisions. Wide span of control but depend on
the department of managers whether Finance, Marketing, HR department
etc. Cross functional teams take decisions. Low formalization and
decentralization.

MAY YOU HAD A GREAT LEARNING

Thank You