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MBA INTERNSHIP REPORT
Pak-Arab Refinery LtdSpecialization: Human Resource Management
Presented to:Chairman Department of Business Administration
Submitted by:
Name: KHALID MEHMOOD ANJUM
Mailing Address: Flat # 001, Iqbal Block 4 PARCO Housing
Complex, Mahmood Kot, Qasba Gujrat,
district Muzaffargarh.
Contact#: 0301-7906205
(Department of Business Administration)THE UNIVERSITY OF LAHORE- LAHORE
Khalid Mehmood Anjum 1
Bismillahi-r rahmani-r rahim
"In the name of God, most Gracious, most Compassionate".
Khalid Mehmood Anjum 2
Today faced with increased rivalry among the
major competitors, it is mandatory for an
organization to engage in human resource
practices, primarily to maintain its existence in
competitive environment and secondary to
gain competitive advantage over its
competitors. One could argue that it is virtually
impossible for organizations to function
effectively without human resource practices.
The human resource practices not only improve
the corporate value but also channelize the
energy of the people working there. In most of
Khalid Mehmood Anjum 3
the contemporary organizations, regardless of
the strong financial position, substantial
growths are not achieved due to poor human
resource practices.
All praise and glory is to almighty Allah
Who has given hope and courage to me
for hard work in life.
I would like to thank all of the staff
members of the human resource
department & specially Senior
Khalid Mehmood Anjum 4
Management executives who have
devoted me their valued time in spite of
their hectic schedule which has
increased my scholastic vision and given
me practical know how of HRD.
And I would especially like to thanks
Manager Human Resources (Mrs. Sharon
Dias), Chief Human Resource Officer (Mr.
Rizwan Idris) and Senior Management
executives who gave me chance to
increase my knowledge about working
with PARCO.
Khalid Mehmood Anjum
Roll # Registration #
TABLE OF CONTENTS
Khalid Mehmood Anjum 5
PG.#
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DESCRIPTION
Title Page
Preface
Acknowledgement
List of contents
Abstract
1) Objectives of the studying the organization
2) Introduction to the organization
3) Overview of the organization
Organizational structure
4) Organization structure of the HRD Department
5) Human Resource management process in the organization
5.1 Human Resources Planning (HRP) and Forecasting
HRP Process
Forecasting HR requirements
Methods to forecast HR needs
Khalid Mehmood Anjum 6
45
47
49
49
50
50
55
56
59
60
63
64
65
65
69
69
69
70
70
70
5.2 Employee Recruitment and selection
Sources of candidates:
a) Internal Sources
b) External Sources
Employment selection process
5.3 Training and Development
Training Needs Assessment
Employee Development
5.4 Performance Management
Setting performance standards and expectations
How performance reports are written
5.5 Employee Compensation and benefits
Types of compensation and benefits
5.6 Organizational career management
Employee job changes
o Job changes within the organization
Promotion
Transfer
Demotion
o Separations
Khalid Mehmood Anjum 7
70
71
71
72
73
76
76
83
86
88
90
93
94
Layoff
Termination
Resignation
Retirement
6) Labour Management Relations
7) SWOT Analysis
▪ Strengths
▪ Weaknesses
▪ Opperortunities
▪ Threats
8) Weakness of the Organization (main)
9) Conclusions
10) Recommendations
11) Refrence & Soource used
12) Annexures / Appendices
Khalid Mehmood Anjum 8
Words AbbreviationsMCR Mid-Country Refinery
MPNR Ministry of Petroleum and Natural Resources
EAB The Emirate of Abu Dhabi
ADPI ABU DHABI Petroleum Investment
OMV Osterreichische Mineralol Verwaltung
TSSA Technical Service and Support Agreement
IPIC International Petroleum Investment Company
NEQS National Environment Quality Standards
OSHA Occupational Safety And Health Act.
HSE Health Safety and Environment
P&A Personnel and Administration
JIMCO Joint Installation of Marketing Companies
MFM Mahmood Kot–Faisalabad–Machike
KMK Keamari to Mahmood Kot
PS Pumping Station
TS Terminal Station
ERT Emergency Response Team
DCS Distributed Control System
WOP White Oil Pipeline
O & M Operations and Maintenance
FAP Fire Alarm Panel
TFC Term Finance Certificates
LPG Liquefied Petroleum Gas
HSD High Speed Diesel
LDO Light Diesel Oil
DHDS De-hydro Desulphurization
MOGAS Motor Gasoline
HOBC High Octane Blending Component
BPSD Barrels Per Stream Day
SAP Systems Applications Procedures
Khalid Mehmood Anjum 9
The objective of this report is to focus those activities
that take place in the Administration and
Management sections on regular basis and all those
areas that are included in the domain of this section.
It is also meant for finding the weaknesses and
shortcomings and then giving the suggestions for
improvement.
The main emphasis of this report was to develop a
clear understanding of the organization i.e. PARCO,
especially its human resources department and
administration department, which is a branch of
Human Resources Development and in which I
worked as an internee. The report covers all the
practices going on in the personnel and
administration department particularly in Human
Resources Management, Administration and
Management services sections along with the history
of PARCO, its structure, its management style and
roles performed by the managers, and finally the last
chapter provides the concluding words like SWOT
analysis, recommendations and conclusion.
This report contains my subjective feelings and
perceptions that may differ with any other internee Khalid Mehmood Anjum 10
or with the management of PARCO, so all the
Recommendations and Conclusion constitute my own
opinions.
Khalid Mehmood Anjum 11
Khalid Mehmood Anjum 12
OBJECTIVE OF STUDING THE
ORGANIZATION
It is a integral part of my course of MBA and mandatory. The main
emphasis of this report was to develop a clear understanding of the
organization i.e. PARCO, especially its human resource dept. Development
and in which I worked as an internee. The report covers all the practices
going on in the particularly in Human Resources Management, along with
the history of PARCO, its structure, its management style and roles
performed by the managers, and finally the last chapter provides the
concluding words like CRITICAL analysis, recommendations and
conclusion.
In the report the objective was to focus those activities that take
place in the human resource management on regular basis and all those
areas that are included in the domain of this section.
This report contains my subjective feelings and perceptions that may
differ with any other internee or with the management of PARCO, so all the
recommendations and conclusion constitute my own opinions.
Why I selected PARCO for Internship:
There are the following reasons that impelled me to carryout my internship
with PARCO:
Khalid Mehmood Anjum 13
I am already working and living in the MCR Housing Complex so it was
easier for me to understand the working environment, the culture of the
refinery, to cope with the thoughts of the people, to understand and
manage the local culture, external forces and demographic effects and
their consequences.
Being an employee personal interest is important in selection of
PARCO for internship and made me aggressive to apply for internship
and I got an opportunity to work for eight weeks in HR section at MCR.
PARCO is the joint venture between Abu Dhabi and Pakistan and
technical support will be provided by the Austrian company named
OMV and well maintained pipeline system through out the country
attract me and provide me better opportunity to relate the theoretical
knowledge with practical work.
PARCO’S MCR is the largest refinery currently operating in the
Pakistan, and accounts for approximately 40% of total refined oil
production in the country and working under the Ministry of petroleum
and natural resources with broader policies, mission, and clearly
defined vision. For these reason I have selected the MCR for internship.
PARCO currently in 2005 achieved the certification of ISO
9001(QMS), 14001(EMS) & 18001(OSHAS).
PARCO was assigned AAA Credit Rating in 1997-98. As a result of
continued financial growth of the Company has got a unique
achievement among the entire Public and Private Sector companies of
the Country, which compelled me to work with management that made
enable PARCO to achieve record performance.
The history of PARCO and the huge size of its operations also made
this a suitable choice for me over other institutions that were available
for the internship program.
Khalid Mehmood Anjum 14
INTRODUCTION TO THE
ORGANIZATION
Incorporated in Pakistan in May 1974, as a Public Limited Company, Pak
Arab Refinery Limited (PARCO) is a 60:40 joint venture between the
Governments of Pakistan (GOP) and Abu Dhabi, having paid – up capital of
Rs.12 billion and total equity of Rs.36 billion. Since the commencement of
commercial operations 24 years ago, the company has expanded a
phenomenal 53 times, achieving an asset base approaching Rs.100 billion
PARCO, as an energy company, is a key player in the country’s
strategic oil supply and its logistics. With the synergy of a comprehensive
and expanding oil pipeline network, integrated with a significant and
modern refining capability. The company has emerged as the strategic fuel
supplier to the country. PARCO’s competitive advantages through the
integration of pipeline operation, strategic storage, leading edge refining
and a significant role in the refining of petroleum products, have enabled it
to achieve a unique position in the energy supply chain.
Brief History of the Organization:
History of any organization shows the chronological development status,
but history of PARCO is very much interesting as it has many phases
Khalid Mehmood Anjum 15
before coming into its actual shape. i.e. from Refinery to Pipe Line then
Refinery.
a) Initially in 1974 PARCO recognizes its growing role and
responsibility as a Pipeline transporter, then made the strategy for
Refiner and Marketer in the vitally important energy sector of the
country and encourages and expects its employees to strive for
excellence in all their endeavors by focusing on the following four
productivity related areas: As initially this project was approved for
refinery but it was changed to pipe line and refinery project came into
existence later on.
b) PARCO has adopted a modular growth strategy in which the
investments are staggered and Project implementation is
synchronized in such a manner that completion of one Project marks
the beginning of the new Project. This strategy has the following
distinct advantages towards continuously extending PARCO's
contribution to the economic development of the country:
The following account gives a true insight into PARCO's story of success,
its trail of roots and its up-coming aspirations.
1981: Commissioning of Karachi-Mahmood Kot crude-cum-product
pipeline system.
1990: Additional 50,000 tons of Storage facility at Korangi and direct
discharge of ships into PARCO network to ease pressure on Keamari
Oil Piers (DKF).
1992: Introduction of flow improving technology to increase pipeline
installed capacity of 2.9 to 4.0 million tons/annum.
1994: Completion of Bhubak and Fazilpur Pumping stations, further
raising the pumping capacity by 50%.
1995: System UP-gradation / Modernization: Telecom & SCADA,
Revamping, Intelligent Pigging & Pipeline Rehabilitation.
Khalid Mehmood Anjum 16
1997: Completion & Commissioning of 360 kilometres Pipeline
Expension Project from Mahmood Kot to Sheikupura near Lahore via
Faisalabad.
March 1998 to September 2000: Started construction of Mid Country
Refinery (MCR) and its completion.
2000-2001: Commissioning of PARCO Mid Country Refinery (MCR)
with a 4.5 MT/annum capacity.
2002-2003: 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.
2002-2005: 781 KM White Oil Pipeline at a cost of US $ 480 million
commissioned in November 04, with Commercial operations
commencing in March, 2005.
In March, 2009: Recently PARCO started a project i.e. DHDS (Sulphur
hydro treating desulpharization Unit) that will be provide the sulphur
free gasoline product. This project will complete with in two years in
2011.
Khalid Mehmood Anjum 17
OVERVIEW OF THE
ORGANIZATION
PARCO has four Divisions:
Corporate affair
Marketing
Pipeline
Refining
PARCO is presently engaged in the transportation of petroleum
product on behalf of oil marketing companies OMC’s from Karachi to
Mahmood Kot near Multan and to Faisalabad and Machike near Lahore
through its 1,228 kms. Pipeline. PARCO’s pipeline system includes a
network of highly sophisticated telecommunication facilities and a
comprehensive supervisory control and data acquisition system.
Khalid Mehmood Anjum 18
Initially, PARCO’s pipeline network was functioning up to Mahmood
Kot near Multan, a distance of 864 kms. Its operating on the basis of two
pumping stations at Karachi and Shikarpur with an annual pumping
capacity of 2.9 million tons. Two additional intermediary pumping stations
commissioned in 1994 at Bubak (Sindh) and at Fazilpur (Punjab) increased
the pumping capacity to 4.5 million tons per annum. Later, with further
technological upgrading of the system the pumping capacity was
increased to 6 million tons. This additional capacity is a major step towards
meeting the increasing requirements of petroleum products in the central
and northern areas of the country, which account for over 60% of the
country’s demand of petroleum products. This increased capacity will also
come in extremely handy for transporting 4.5 million tons of Crude and 1.5
million tons per year of products through the existing pipelines. This timely
initiative by PARCO will relieve a lot of pressure on road movement.
In June 1997, PARCO completed its 364 Kms. MFM pipeline
extension project and extended its operations to Faisalabad and Machike.
The project design allows for further expansion of the pipeline from
Faisalabad to Kharian besides Sahiwal and from Mahmood Kot to
Peshawar.
Khalid Mehmood Anjum 19
Mr. Syed Naveed Qamar Chairman
Mr. Mohamad Al Mehairi Vice Chairman
Mr. M. Rasheed Jung Managing Director
Mr. Mehmood Akhter Director
Mr. G.A. Sabri Director
Mr. Hidayatulla Khan Khaishghi Director
Mr. Nawab Hasan Ali Khan Director
Mr. Mohamed Mahmoud Al Khaja Director
Mr. Ahmed Ghalib Al Muhairi Director
Mr. Jeffrey Rinker Director
Khalid Mehmood Anjum 20
Corporate Office
Corporate Headquarters,
Korangi Creek Road,
Karachi- 75190, Pakistan.
Islamabad Office
House No. 2-B,
Nazimuddin Road,
F-8/1,
Islamabad. Pakistan.
Refinery Office
Qasba Gujrat, Mahmood Kot,
Distt. Muzaffargarh,
Pakistan.
Khalid Mehmood Anjum 21
PARCO’s pipeline system consists of 7 pumping stations namely :
PS-1 Korangi PS-2 Bubak
PS-3 Shikarpur PS-4 Fazilpur
PS-5 Mahmood Kot PS-6 Kot Bahadur Shah
PS-7 Faisalabad (Not operational yet)
Also, there are four terminal stations namely:
TS-1 Keamari TS-2 Mahmood Kot
TS-3 Faisalabad TS-4 Machike
PARCO delivers the products at Mahmood Kot through a further pipeline
connection of 4.5 kms to the Joint Oil Marketing Companies facilities called
JIMCO.
All PARCO terminals and pumping stations have been designed according to
the latest international standards and laid out in a standardized fashion for ease
of operation. PARCO across the country installations have been adjudged to be
comparable to the best available in the international oil industry.
The refinery was on stream by September 2000, which placed PARCO in a
unique position, with an additional capability to exploit the future trends of the oil
industry in Pakistan.
Khalid Mehmood Anjum 22
Khalid Mehmood Anjum 23
WOPP
PORT QASIM
OF DIFFERENT REFINERIES IN PAKISTAN
The Crude oil design processing capacities of different
refineries is as follows.
S.No. Name of Refinery
Crude Processing
Capacity
‘M. tons’
Percentage
‘%’
1 PARCO 4,500,000 35.6
2 NRL 2,710,500 21.4
3 PRL 2,133,705 16.9
4 ARL 1,711,200 13.5
5 DHODAK 101,182 0.8
6 BOSICOR 1,485,550 11.8
Total 12,642,137 100
Khalid Mehmood Anjum 24
Crude oil Processing share of Refineries
PARCO35.6%
NRL21.4%
PRL16.9%
ARL13.5%
DHODAK0.8%
BOSICOR11.8%
Khalid Mehmood Anjum 25
Khalid Mehmood Anjum 26
The PARCO Mid Country Refinery commissioned in September 2000 at
Mahmood Kot, comprises a grass root Refinery Complex of main Process Units,
treatment and recovery units and full range of Offsite /Utilities System. It also
includes a new residential colony that provides housing and other amenities.
The Refinery design capacity is 100,000 BPSD of Arabian Light or Upper
Zakum/ Murban Crude oil (4.5 million tons per annum), which is being
transported to the Refinery site by PARCO’s. Keamari to Mahmood Kot (KMK)
pipeline system from Karachi.
Location Qasba Gujrat / Mahmood Kot
Project Cost US Rs 886 million
Main Supply & Construction
ContractorsJGC & Marubeni Corp. Japan
Completion Period 36 months
First time Crude oil put in Pipeline August 03, 2000
First time Crude oil received at August 25, 2000
Khalid Mehmood Anjum 27
Refinery
First Product out and Commissioning September 04, 2000
Formal Commissioning February 2001
The major cost involved in any organization is in the shape of
construction cost. The total cost of the refinery is around USRs886 million of this
colossal amount, USRs50 million have been spent on environmental protection
measures and Rs. 28 million have been spent on buildings and civil works,
including the housing complex hospital, school, refinery buildings, approach
roads etc.
“Capacity is the minimum rate of output for a facility”
The Refinery complex includes 11 onsite units process units besides numerous
off site / utilities units and other permanent facilities with 51 tanks to store the
Crude oil, intermediate feeds stocks and finished products.
Khalid Mehmood Anjum 28
PARCO’S mid-country Refinery will have a refining capacity of 100,000 barrels
per day or 4.5 million tons per annum making it the largest in the country.
Khalid Mehmood Anjum 29
Khalid Mehmood Anjum
Unit code Unit BPSD
100 Crude distillation 100,000
110 Vacuum distillation 42,800
200 Naptha Hydrotreater 25,650
300 CCR Platformer 16,350
284 Diesel max 22,450
130 Visbreaker 15,560
801 Kerosene merox 20,000
802 LPG merox 4,500
411 Gas concentration Liquid: 22050
Gas: 11.242 (MMSCFD)
810 Aminetreating (RNH2)F.G.: 7.721 (MMSCFD)
SWS: 9,963
820 Sulfur recovery 115 MTPD
30
At 100% - Refinery Capacity
CRUDE FEED
4.5 Million tons/year
Case - 1 Case - 2
Arabian Light =
100%
Upper Zakum=
70%
Murban = 30%
PRODUCTS M. Tons /Year
LPG 145,000 169,000
Mogas/ HOBC 469,000 / 201,000 465,000 / 200,000
Kerosene/Jet Fuel 1 (JP-1) 637,000 654,000
High Speed Diesel Oil
(HSD)/
Light Diesel Oil (LDO)
1,358,000 1,537,000
Furnace Oil 1,546,000 1,241,000
Sulfur 25,000 24,000
Note: Design operating days per year = 330
Khalid Mehmood Anjum 31
Khalid Mehmood Anjum 32
PARCO
MCR CHQ PIPELINEWOPP
PROCESS
TSD
U & OM
HSE
MAINTENANCE
ENGR SERV
P & A&
FINANCE
ORGANIZATION STRUCTURE:
Khalid Mehmood Anjum
Chairman PARCO
Deputy Managing Director(DMD) Refinery
Deputy Managing Director(DMD)
Deputy Managing Director(DMD)
Managing Director PARCO (MD)
General Manager (refinery)]
MangerDepartment
MangerDepartment
ChiefSection
Group/Section Head
Senior Engineer /Executive
33
Positional Hierarchy at PARCO
Khalid Mehmood Anjum
Managing director
Deputy Managing director
General Manager
Deputy General Manager
Manager
Chief Accountant/Engineer/Management Executive
Senior Accountant/Engineer/Management Executive
Grade IAccountant/Engineer/Management Executive
Grade IIAccountant/Engineer/Management
Executive
Grade IIIAccountant/Engineer/Management
Executive
Assistant Accountant/Engineer/Management
Executive
34
Khalid Mehmood Anjum 35
HUMAN RESOURCE DEPARTMENT AT PARCO
At PARCO, Human resource department is working to integrate to
choose a quality of its people in every sphere of its actual strength of its
employees. The effective Human resource planning helps in mitigating the
unforeseen market forces.
The main task of human resource department is to evaluates and
assess and make a long run effective human resource strategy to meet
the new challenging with diversifying the globalization all over the
world in time .so as to make the right choice, in selection of people,
which can be used to devise the most effective choose the right person
for right place. The purpose of this is to achieve the target to quality of
work and increase the over all efficiency and productivity in the field of
human resource managing in better form in systematic and sustain
able way .while maximizing the quality of work life through human
resource . While Main activities performed by human resource
department are as follows
Parco Human resource Department
Khalid Mehmood Anjum 36
Manpower
PlanningRecruitment
Performance
Management
Training and
DevelopmentStaff Relations
Management
Information
Manpower Planning
PARCO manpower planning enables a department to project its short
to long term needs on the basis of its departmental plans so that it
can adjust its manpower requirements to meet changing priorities.
The more changing of environment in the department is in, the more
department needs manpower planning to show:
the number of recruits required in a specified timeframe and the
availability of talent
early indications of potential recruitment or retention difficulties
surpluses or deficiencies in certain ranks or grades
Availability of suitable qualified and experienced successors
Khalid Mehmood Anjum 37
Recruitment
Khalid Mehmood Anjum 38
PARCO Human resource department takes steps to employ staff, it
should work out the type of staff it needs in terms of grade and
rank, and the time scale in which the staff are required.
The general principles underpinning recruitment within the
employee that recruitment should:
use procedures which are clearly understood by candidates
and which are open to public scrutiny;
be fair, giving candidates who meet the stipulated minimum
requirements equal opportunity for selection; and
Select candidates on the basis of merit and ability.
Recruitment of overseas officers is undertaken only when no or
insufficient local candidates are available.
PARCO Hiring Policy:
PARCO have a clear policy to the recruitment and selection of
employees. The overall requirement of the jobs and qualification of the
Khalid Mehmood Anjum 39
individuals are the determining factors in the selection and placement of
employees .The company however, endeavours to bring about and maintain ,
as far as possible , a fair balance among candidates from various provinces .
The policy of the company is to develop and promote its employees
from within the organization when ever possible. Where there is an absence
of qualified personnel within the organization, the company recruits from
external sources. Recruitments and promotions are carried out to fill
vacancies of the basis of the approved organogram.
SELECTION PROCESS
1- Reception and employment office
2- Preliminary interview
3- Application blanks
4- Selection tests
5- Employment interview
6- Offer letter
7- Medical examination letter
Khalid Mehmood Anjum 40
8- Final medical clearance letter
9- Appointment letter
10- Joining letter
CONDITIONS
1-Employment Age:
Those who have completed the 18 year age and not exceeded the age
of 60, which is our normal retirement age ,are eligible for hiring
2-Re-employment
A person terminated from Parco on charges of indiscipline ,
misconduct or unsatisfactory performance shall not be re-employed .
3- References:
Khalid Mehmood Anjum 41
It is a condition of employment that all successful applicants for any
position in Parco authorize reference checks with previous employers when
an offer employment is made .Any offer is subject to satisfactory references
4- Pre-employment
Medical Check-up: Selected candidates must under go a pre –
employment medical examination with a physician selected by the
company .Any offer is subject to a satisfactory medical report.
5- Probationary Periods :
All new employees are employed on an initial probationary periods as
indicated in their letter of Appointment .After probationary periods
completion management informed in writing of either
a) His confirmation
b) The extension of his probationary periods
c) The termination of his employment
Khalid Mehmood Anjum 42
Performance Management
Performance management is a very important Human Resource
Management function. Its objective is to improve overall productivity
and effectiveness by maximizing individual performance and
potential. Performance management is concerned with -
improving individual and collective performance;
communicating management's expectations to supervisors and
staff;
improving communication between senior management,
supervisors and staff;
assisting staff to enhance their career prospects through
recognizing and rewarding effective performance;
identifying and resolving cases of underperformance; and
providing important links to other Human Resource
Management functions, such as training
Training and Development
PARCO Human resource Departments manage their own training
function and have varying levels of responsibility to do this effectively.
Management formulates departmental training policies and draws up
Khalid Mehmood Anjum 43
training and development plans to support departmental missions, objectives
and values.
Managers identify competencies and training needs, implement
training activities and provide coaching and supervision to
ensure staff development occurs.
Staff takes responsibility to make the most of the opportunities
provided to maximize their potential.
Staff Relations
In Parco the purpose of staff relations is to ensure effective
communication between management and staff, to secure maximum
cooperation from staff, and to motivate staff to give their best by
ensuring that they feel fairly treated, understand the overall direction
and values of the employees and those of their departments, and
how decisions that affect them have been reached.
The principles that govern staff relations are that, where possible:
management should communicate regularly and openly with
staff;
Khalid Mehmood Anjum 44
HUMAN RESOURSEDEPARTMENT
staff should be consulted on matters that affect them;
problems and disputes should be resolved through discussion
and consultation;
the Government should uphold the resolutions of the
International Labor Organization conventions; and
Management should devise and encourage activities that
contribute to staff's well being.
The department is headed by the manager Human resource. It has
following sections
1- Manpower Planning and Recruitment
2- Performance Management And Staff Relations
3- Training and Development & information system
Each section is headed by Chief Management Executive followed by
Senior Management Executive.
Khalid Mehmood Anjum 45
Training and Development & information system
Performance Management and Staff Relations OMPENSATION
Manpower Planning and Recruitment
MANAGER HRD
Sr MANAGEMENT
EXECTIVE
Sr MANAGEMENT EXECTIVE
OTHERSTAFF
OTHERSTAFF
OTHERSTAFF
CHEIF MANAGMENT
EXECTIVE..
CHEIF MANAGMENT
EXECTIVE.
CHEIF MANAGMENT EXECTIVE.
Sr MANAGEMENT
EXECTIVE
HUMAN RESOURCE MANAGEMENT PROCESS IN
THE ORGANIZATION:
Human Resources Planning (HRP) and Forecasting
Khalid Mehmood Anjum 46
Human resource is also some time called manpower planning
and other word that is called employment planning. In simple
word human resource planning is a process for determining and
assuring that the organization will have an adequate number of
qualified person , available at the proper time , performing job
which meet the need of enterprise and which provide
satisfaction for the individual involved .
Human resource planning is an ongoing process. It is not
static .It involves many interrelated activities. Further human
resource planning requires detailed analysis of the present and
the future to ensure the organization has the right number of
people available who posses the right kinds of skills to perform
the jobs required by the enterprise when the work is needed.
Job analysis is the foundation for forecasting the need of
human resource as well as for plans for such activities as
training, transfer and promotion.
Job evaluation and compensation; Before jobs can be
ranked in term of their overall worth to an organization or
compared with jobs in other firms for purposes of surveys. It is
Khalid Mehmood Anjum 47
important to understand what the jobs require job description
and specification provide such understanding to those who
must make job evaluation and compensation decisions.
Recruitment: It is very important for human resource planning
to company recruiter needs is full knowledge of the job
Selection: Any method used to select or promote applicants
must be based on a keen ,meaningful forecast of job
performance . An understanding of just what a worker is
expected to do on the job is reflected in job related interviews or
test questions is necessary for a meaning full cast
Placement: In many cases, applicants are first selected and
then placed in one of possible job. When there is a picture of
the needs of a job and abilities of the workers to fulfil those
needs selection decisions will be accurate and worker will be
placed in jobs where they will be placed in jobs where they will
be the most productive.
Orientation , training , and development .
Performance appraisal
Career path planning
Labour relation
Khalid Mehmood Anjum 48
Engineering design and methods improvement
Job design
Safety
Job classification system
HRP Process
Although HRP mean different things to different people, general
agreement exists on its ultimate objective-namely, the most
effective use of scares talent in the interests of worker and the
organization. Thus we may define HRP broadly as an effort to
anticipate future business and environment demands on an
orginisation, and to provide qualified people to fulfil that
business and satisfy those demands. This general view
suggests several specific, interrelated activities that together
constitute an HRP system. They include:
A talent inventory to assess current human resources
(skill, abilities, and potential) and to analyze how they are
currently being used.
A human resource forecast to predict future HR
requirements (the number of workers needed. the number
of expected to be available based on labour market
Khalid Mehmood Anjum 49
characteristics, the skill mix required, internal versus
external labour supply).
Action plans to enlarge the pool of people qualified to fill
the projected vacancies through such actions as
recruitment, selection, training, placement, transfer,
promotion, development and compensation.
Control and evolution to provide feedback on the overall
effectiveness of the human resource planning system by
monitoring the degree of attainment of HR objectives.
Issues analysis
Business needs
External factors
Internal supply
analysis
Management implications
Forecasting
requirements
Staffing levels
Staffing mix
(qualitative)
Organisation and job design
Available/projected
net requirement
Action plans
Staffing authorisations
Recruitment
Promotion and transfer
Organizational changes
training and development
Compensation and benefits
Labour relations
Forecasting HR requirements
The human resource forecast is determination of the
demand of people and the appropriate types and skills for given
period in the in the future such as one and three and five years.
Khalid Mehmood Anjum 50
The forecast also requires the preparation of an estimate of the
supply of people who will be available for the selected periods.
The supply is composed of two parts. The first part the estimate
of number and types of employees presently on the payroll who
will be avail able on the end of the chosen periods. The second
part of the supply is that portion which must be recruited
extremely. These figures for the planning periods are obtained
by the subtracting the internally manpower from the projected
demand. If the figures are positive, people will have to hired if
negative, if negative people may eventually have to be laid
off .The demand forecast is derived from the information
generated in step-1 Goals and plans of the organization of the
human planning process describe earlier. Step-1 should
provide the human resource planners which data on such factor
of projected volumes of sales, units be produced, number of
client to serviced new facilities to be constructed, new
departments to be created and so on
Methods to forecast HR needs
Normally must use variety of techniques to project future
personnel needs. We will describe four major categories of
forecast techniques Khalid Mehmood Anjum 51
These are under
1-Judgement and experience
2-Budgetary planning
3- Work standard data
4- Key productive factor
1-judgement and experience:
This category includes estimate made by people are very
familiar with he products, processes and job and the business.
It is appropriate for relatively short term for cost of, say up to
two years. Supervisors and managers of the various units of the
business make estimate the future manpower need by
judgmentally converting information on short-term future
business activity.
The Delphi techniques is a systematic way of obtaining and
refining judgment by a group of experts it was originally
developed.
Employee Recruitment and selection:
The employment process begins with a perceived
need to obtain a person perform some job . Commonly a
manager submit a written request to the HR department stating
Khalid Mehmood Anjum 52
that he wishes to will a given position The position should be
define in term of its jobs description and job specification. This
process should be integrated with the human resource plan of
the organization.
Recruitment involves identifying the sources of potential
employees, informing people of jobs opening and attracting
applicants who have the requisite qualification to perform the
jobs. People may be recruited either with in organization or from
out side the organization, the job requirements as expressed in
job description and job specification identify the
kinds of people to be recruited
Human resource
plan Identification
need for
people
Requirement
Khalid Mehmood Anjum 53
internal and external
Sources of candidates:
Recruitment is the development
and maintenance of adequate
manpower resource. It involves the creation of a pool of
available labour from which the organization can draw when
it needs additional employees.
One convenient way of classifying the source of supply is
Khalid Mehmood Anjum
Job Requirements
job description and
specifications
Pool of candidates
Selection
comparison with job
requirements via
interview, test
background checks
Rejected candidate
Job placement,
orientation training,
probationary status
Accepting candidate
54
to divide the source in to categories. Thus a particular job
vacancy side sources. Thus a particular job vacancy occur, it
can be filled by transferring or promoting an other employed
from within the company to that post. If there is to be a net
addition to the size of the work force then, of course
someone will have to be employed from the out side of the
organization open market work force place.
c) Internal Sources : If management wishes to fill
vacancies by choosing from among present
employees it may utilized any of three procedures
1-Informal search
2-Skill inventory
3-Job posting
External Sources:
Depending upon management policy , the type of jobs
involve, and the nature of labour market management
have options available for obtaining people from outside
the organization
1- Employment agencies
2- Unsolicited applicants
3- Labour unions
Khalid Mehmood Anjum 55
4- School, colleges and universities
5- Advertisement
6- Employee referrals
SELECTION PROCESS
INTRODUCTION :
Hiring and promoting the best possible
employees are among the most important of all
supervisory duties. Interviewing properly and
conducting reference checks are more efficient uses
of time than dealing with the consequences of poor
personnel selection.
The key to a successful selection process is good
planning. Planning helps you to learn the necessary
information about each applicant while at the same
time avoiding potential legal pitfalls of the process.
The following guidelines will help you develop a
sound and defensible selection process.
DEFINING THE JOB AND THE IDEAL APPLICANT
PROFILE:
Identify the most important aspects of the job
(i.e., skills, knowledge and abilities). Use the job
description as the primary basis. Then, using these
aspects, develop a profile of the type of employee
who would best fit the job. This should be done in
terms of skills/knowledge/abilities required, previous
Khalid Mehmood Anjum 56
experience, compatibility with the job, and the kinds
of personality traits desired (e.g. aggressiveness, a
desire to work with people, creativity, willingness to
work as part of a team, ability to work
independently). As a part of the profile, consider the
job parameters (e.g. amount of overtime required,
pay level, work hours, necessity for travel,
opportunity for promotion, available benefits, limits
on when vacation may be taken, etc.).
DEVELOPING THE INTERVIEW OUTLINE:
The process of filling most positions involves a
review team or search committee. Efforts should be
made to use a team or committee with a diverse
membership. Where necessary, unit heads should
consider adding individuals from other units or job
categories (faculty, associates, classified staff,
graduate assistants, etc.) to provide adequate
diversity (e.g. by gender, race, etc.). Based on the
ideal applicant profile developed earlier, select
interview questions, which will help determine
whether an applicant fits this profile. The questions
must be based on objective criteria and all must be
job-related. Develop an appropriate number of
questions, depending on the amount of time allotted
for the interview. Generally you will want to cover
education and experience, goals, work habits,
working conditions and relevant technical knowledge.
Khalid Mehmood Anjum 57
If your interview process is to include any in-house
"test" (e.g., typing), note that the test MUST be an
actual sample of duties involved in the position. Once
your interview outline is developed, review it with
emphasis on looking for areas, which might be "out of
bounds".
SELECTING APPLICANTS FOR INTERVIEW:
For most Civil Service positions, applicants must
have the appropriate test score when they apply for
an advertised position. The top applicant’s package
for all positions must be reviewed to ensure that the
applicant meets the established qualification
requirements. For Civil Service positions, these are
stated on the job specification sheet. For academic
positions, they are stated on the Position Vacancy
Announcement.
Applicants who don't meet the stated
qualification requirements should be eliminated
immediately. However, their records should be
retained because they will be reported as part of the
applicant pool but with a notation that they were not
qualified. When an unusually high number of
applicants respond to an announcement, it is not
necessary to interview them all. However, in order to
make an initial "cut," objective criteria, which relates
Khalid Mehmood Anjum 58
to the stated qualification requirements must be
used.
THE INTERVIEW ITSELF:
• Begin the interview by trying to put the applicant at
ease.
• Outline the structure of the interview, explain the
organization and give a general description of the
job (or provide a copy of the job description).
• Discuss the job parameters. Applicant should have
enough information to make a preliminary
determination as to whether he/she is interested in
job.
• Explain to the applicant that he may take some
notes to record the most valuable information.
• Begin questioning. When your questioning is
completed, make sure that you have the necessary
references.
• Allow the applicant to ask questions.
• Explain to the applicant how and when a decision
will be communicated to him/her.
• End the interview on a positive note. You want all
applicants to leave with positive feelings about the
organization, regardless of the outcome of the
interview.
AFTER THE INTERVIEW:
Khalid Mehmood Anjum 59
Add details to your notes while the information is
still fresh. Compare your information to the ideal
applicant profile. Always check references. Most
references are checked by telephone, although in-
person and written references are common. Sources
of references include the immediate supervisor, past
employers, coworkers, clientele, or peers. (Be sure
you have the applicant's express approval to contact
the present employer). Develop questions for the
reference check in the same manner used to develop
questions for the interview.
Often you will want to hold a second interview
for the applicants who appear to have the most
potential after the first interview. Structure it in a
manner similar to the first interview, but ask
questions which fill in gaps in your information.
Make your decision by comparing applicants to
your ideal applicant profile. Communicate your
decision to the selected applicant as well as to those
who are not selected. (Do so only after you are
authorized to make an offer and it has been
accepted!) If an applicant who was not selected asks
you for an explanation, explain that you selected the
applicant who best fits the job. Don't discuss
shortcomings of applicants who were not selected.
You are not required to give specific reasons to an
applicant who was not selected.
Khalid Mehmood Anjum 60
LEGAL RESTRICTIONS:
These generally prohibit discrimination on the
basis of race, color, sex, religion, national origin, age
or handicap. The attached "Acceptable Pre-
Employment Inquiries," outlines the specific kinds of
inquiries, which are acceptable and unacceptable.
“DO’s and DON'Ts" provides general information on
avoiding legal problems in the interview process. All
interviewers should be thoroughly familiar with this
material.
REPORTING REQUIREMENTS:
When it's time to process appointment
documents for the applicant selected, you will be
asked to provide a list of all applicants including their
race, ethnic origin and sex. However, since you can
not ask for this information during the interview
process, you must rely on your observations. In those
unusual situations where you are uncertain as to the
race or sex of an applicant, you should feel free to
state "unknown."
Training and Development
The objective of training and development is to enable employees
to acquire the knowledge, skills, abilities and attitudes necessary to
enable them to improve their performance. Staff training and
Khalid Mehmood Anjum 61
development should focus on the department's objectives and goals
and staff's competencies in achieving them. A strategic approach has
the following characteristics:
Commitment to training and developing people;
Regular analysis of operational requirements and staff
competencies;
Linking training and development to departmental goals and
objectives;
Skilled training personnel;
Regular evaluation;
A continuous learning culture;
Joint responsibility between managers and staff for identifying
and meeting training needs; and
A variety of training and development methods for different
circumstances and learning styles.
Training Needs Assessment
There are several techniques that can be utilized individually or
in combination with each other. More than one tool should be
considered to get a better view of the big picture, however, which
tools are used should be left up to company.
Khalid Mehmood Anjum 62
1. Meet with management.
Since most supervisors are involved with the planning of
projects and the future of the company, they know what will be
needed. They should be able to communicate where their employee’s
current abilities lie and what is needed to get them to the next level
for the new projects.
2. Meet with employees.
Discuss what struggles they may be facing from day-to-day and
what would make their job easier and more efficient. Remember to
keep them focused on what they need rather than what they want.
3. Conduct surveys.
Surveys are beneficial because many people can be polled in a
short period of time. Additionally, surveys provide employees with the
opportunity to confess a need on paper that they may be too
embarrassed to admit needing in a face-to-face meeting.
Surveys should take the form of a questionnaire and can include
close-ended or open-ended questions, or a series of both. Close-
ended questions require the respondent stay within certain
perimeters set by the person who created the survey. Being that the
answers are limited, tabulating the data is simple. Open-ended
Khalid Mehmood Anjum 63
questions allow an employee to provide more feedback and introduce
new ideas that may not have been considered initially, although
tallying the results may be more difficult. A good option during the
creation of a survey would be to include a combination of both close-
4. Conduct focus groups .
Focus groups allow for small group interaction, allowing the assessor
to uncover details about their target audience. Brainstorming is
encouraged allowing for an exchange of new ideas and a revelation
of what training may be needed. They should be at least ninety
minutes long to initially break the ice and for participants to become
comfortable enough to express their thoughts. Depending on time
limits, focus groups can be held once or repeatedly.
5. Review company goals and mission statement.
A brief review of the company’s past and where they are headed for
the future may reveal valuable information for training. A comparison
should be made of what employees are currently doing and what will
be expected of them as the company continues to grow and change.
Several basic Needs Assessment techniques include:
Direct observation
Questionnaires
Khalid Mehmood Anjum 64
Consultation with persons in key positions, and/or with specific
knowledge
Review of relevant literature
Interviews
Focus groups
Tests
Records & report studies
Work samples
Employee Development
The organization may highlight need s and opportunities for
growth and development of the person. Growth may be
accomplished by self-study formal training courses, or job
related activities, such as special broadening assignments and
job rotation .It should be clear that training and development of
employees and managers strengthen the organization as well
as aid individual.
Khalid Mehmood Anjum 65
Performance management objective is to improve overall productivity &
effectiveness by maximizing individual performance and potential. It is a
very important Human Resource Management function. Performance
management is concerned with:
Improving individual and collective performance.
Communicating management's expectations to supervisors and
staff.
Improving communication between senior management, supervisors
and staff.
Assisting staff to enhance their career prospects through
recognizing and rewarding effective performance.
Identifying and resolving cases of low performance.
Providing important links to other Human Resource Management
functions, such as training.
PARCO's Performance Management System:
PARCO’s Performance Management Process has been developed to
achieve a number of important objectives. Attract, retain and motivate high-
quality management employees who are critical to the overall achievement
of PARCO’s mission, vision and goals
PARCO’s Performance Management Program has been developed to
achieve a number of important objectives. Specifically, it has been
designed to:
1. Refocus the performance assessment as a management process
designed to achieve PARCO’s strategic goals, drive necessary
organizational change, and directly link each employee’s performance
goals and behaviors to PARCO’s strategic goals.
Khalid Mehmood Anjum 66
2. Establish clear and measurable performance goals and against which
accountability will be established and performance assessments will
be conducted.
3. Define a common set of behavioral expectations that are linked to the
achievement of PARCO’s values and support the achievement of
strategic goals.
4. Attract, retain and motivate high-quality management employees who
are critical to the overall achievement of PARCO’s mission, vision and
goals.
5. Reward superior individual and/or team performance measured by
organizational results, the demonstration of desired behaviors, and
the achievement of personal/team goals.
6. Be clearly and consistently communicated to all management
employees
Source: PARCO policy Manual Volume – II
Everyone Has a Role to Play in PARCO
Supervisors and employees share joint accountability for making sure
three steps of the performance management process (PLAN, COACH,
and REVIEW) are carried out each year.
First is the PLAN component, where supervisors and employees work
together to set SMART (Specific, Measurable, Attainable, Relevant, and
Time-based) goals for the year ahead, identify appropriate behavioral
Khalid Mehmood Anjum 67
competency levels to be observed, and identify developmental activities
that should take place.
During the performance cycle, supervisors should COACH management
employees. Activities include keeping track of progress being made;
ensuring development plans are being implemented, holding a mid-year
review meeting, and working to ensure any obstacles to achievement are
addressed.
In the REVIEW process, employees and their supervisors jointly discuss
the year's performance, with reference to the Performance Log, and identify
ways in which performance can be improved in the months and years
ahead. The overall review of an employee's performance during the
performance cycle enables a determination to be made about performance-
based pay recognition.
Competencies (How Work Is Done)
A competency is "an underlying characteristic of an individual that causes
or predicts effective and/or superior performance in a job or situation."
Think of a competency as a skill or behavior that a superior performer uses
to perform a task exceptionally well.
Source: PARCO’s policy manual – Volium II
Khalid Mehmood Anjum 68
To establish an optimal program and then formalize the process become more of
a challenge because of the complexities of human beings and the wide variety of
expectations that everyone executives, managers, supervisors, employees,
brings to the workplace. The performance appraisal process, called the
performance appraisal system, is the term frequently used for an organization’s
formal efforts to evaluate individual performance. The most frequent use of
performance appraisal is evaluating performance for merit pay increase granted
or withheld. Any performance appraisal process is complex and requires a lot of
support from many well-placed individuals throughout the organization to
succeed. It includes the following steps that must be performed when
establishing a new performance appraisal system.
Provide written periodic appraisals of job performance at least once a year.
Set performance standards that lead to accurate job performance
evaluation.
Encourage employee participation in the development of performance
standards.
Advise employees of these standards before the appraisal period
commences.
Use appraisal results as a basis for developing, rewarding, assigning,
promoting, demoting, retaining, or removing employees
Purposes of Traditional Performance Appraisals:
Performance appraisal for evaluation using the traditional approach has served
the following purposes:
Evaluations of relative contributions made by individuals in achieving higher
level organization goals.
Reward decisions, including merit increases, promotions and other rewards.
Ascertaining and diagnosing training and development decisions.
Promotion, separation and transfer decisions.
Khalid Mehmood Anjum 69
Feedback to the employee regarding how the organization viewed the
employee's performance.
Criteria for evaluating the effectiveness of selection and placement
decisions, including the relevance of the information used in the decisions
within the organization.
Criteria for evaluating the success of training and development decisions.
Information upon which work scheduling plans, budgeting and Human
Resources planning can be used.
Two serious flaws in the traditional approach to performance appraisal exist. The
flaws are:
Performance appraisal is usually tied to the employee’s salary review.
Dealing with salary generally overwhelmed and blocked creative,
meaningful or comprehensive consideration of performance goals.
Organizational performance appraisal is typically primarily concerned with
the past rather than being forward looking through the use of setting
objectives or goals.
Performance Appraisal System in PARCO: In the month of April, performance
reports are sent to all the divisional heads down the line to the Managers of all
departments. The managers then sent these reports to the respective immediate
supervisors of all the employees.
They are supposed to fill the performance appraisal form accordingly and sent
back to the HRD. The report is consists of the many aspects of the individual with
reference to his/her performance. For example, effectiveness of the job, his
understanding of the job, efficiency, confidentiality of the assignments, etc. etc.
Point-wise, allocation of marks is given to the each category mentioned above,
and then finally sent to the Divisional Head. HRD Department prepares the salary
revision, promotion letters on the basis of the assessment of each incumbent.
Performances of employees are reviewed once in a year. Salary increases are
not automatic are not granted slowly on the basis of completing a fix period of
service.
Khalid Mehmood Anjum 70
Compensation strategies support the delivery of short and long-term business
objectives by encouraging desired behaviours of the organization. Compensation
is a powerful tool that can give a company a distinct competitive edge when it is
aligned to an effective business strategy. Given below are some ever changing
trends in compensation which are likely to force companies to adopt a more
proactive approach in this area.
Responsibility/accountability given earlier in career with implications for
reward and risk taking.
Responsibility/accountability given earlier in career with implications for
reward and risk taking.
Flatter organization structures with greater differentiation/overlap in salary
bands.
Less hierarchical structure with less differentiation in visible perquisites.
Bonuses and incentives linked to performance.
Cleaner salary structures with less perquisites.
PARCO’s Compensation Philosophy:
When determining compensations, prevailing rates in other comparable
industries are also taken into account through periodic salary surveys. PARCO
pays salaries are competitive and performance oriented. Pays ranges are
determined after a systematic and comprehensive job evaluation in which each
job is evaluated on the basis of skills, efforts, responsibilities and working
conditions.
The company endeavours to maintain a balanced programme of employee
benefits aiming to supplement employee’s own efforts to provide economic
protection for themselves and their families in the event of retirement, physical
Khalid Mehmood Anjum 71
disability or death.
To this end, following benefit programmes have been offered:
a) Provident Fund
b) Pension
c) Gratuity
d) Death & Disability Plan
e) Medical Assistance
A. Provident Fund:
An employee is eligible to become a member of the Provident Fund from the first
day of the month following the month in which he is confirmed in service.
Employee’s contribution to the Fund is matched by the Company. Both
subscriptions from employee & the company’s contribution are held with a Trust
and the entire sum together with profit is paid back to the employee upon
separation from service.
B. Pension:
The company has a Pension Scheme. A minimum of ten years’ continuous
service and must have attained the age of 45 years, may apply for early
retirement. The amount payable as pension is computable by an independent
Actuary engaged by the company.
C. Gratuity:
The company maintains a registered Gratuity Fund. The benefits of gratuity are
available to all regular and permanent employees, who have completed five
years continuous service with the company.
D. Death & Disability Benefits:
Upon death or disablement of an eligible employee, whether the death or
disablement occurs as a result of accident or otherwise, including death or
accident occurring during air, sea, rail or road travel, whether on or off the job, or
during authorized leave.
Khalid Mehmood Anjum 72
However, no death or disablement benefits are payable in the following
circumstances:
Death or disablement through suicidal attempt.
Intoxication under the influence of drugs or alcoholic drinks.
Unauthorized use of operation of company’s tools, machines
transport, etc.
E. Medical Assistance:
All regular and permanent employees and their eligible dependents are entitled
to the medical benefits. Dependents, including one wife or husband, unmarried
sons up to the age of 21 years and unmarried daughters. Provided such
dependents do not have income of their own from employment, business trading,
farming, investment or any other source and are residing with the employee.
Where as father & mother are entertained as 60:40 ratio (60% medical expense
is borne by employee and 40% will be paid by the company). If an employee
wishes to avail medical facilities for his eligible dependents, they would be
required to undergo such medical examinations, at the employee’s expense, as
would be prescribed by the company’s Senior Medical Officer (as per company
policy). If Wife / Husband, Father & mother already had some disease then for
that Disease Company will not pay any compensation.
Medical Officer (Doctors):
The company provides the medical treatment facilities by appointed medical
officers at each of its stations, who is available for employees and their eligible
dependents for free consultations, first aid and dispensary level / stabilizing
treatment during Company prescribed duty hours or during emergency in off
hours.
Medicines:
The cost of any medicines prescribed by the doctor will be paid by the Company.
This will include all the necessary curative and preventive medicines, antibiotics,
injections and inoculations other than those vitamins and drugs which are mainly
for health maintenance purpose taken over an extended period.
Khalid Mehmood Anjum 73
Hospitalization:
Employees and their eligible dependents are provided, upon recommendation of
the Company doctor, hospitalization and surgery in the company’s selected
hospitals, which covers medicines, laboratory tests, Doctor/Surgeon’s fees,
operation cost, anesthesia, blood transfusion and room charges, as per
entitlement, which may be ascertained from HR Department. The charges for
food, telephone or any other thing during hospitalization are not borne by the
company.
Upcountry Medical Allowance:
Regular employee whose eligible dependents are neither residing with him at
permanent places or postings nor at a place where Company medical facility is
available are allowed to claim medical costs of such dependents up to certain
fixed amounts and in accordance with procedures notified from time to time.
Retired Employees:
Pensioners shall be entitled to the same medical benefits as are available to the
MPT employees belonging to the same salary grade as the pensioners at the
time of their retirement. These benefits shall be available to themselves and their
spouses for as long as they are in receipt of pension under the company’s
Supervisory staff pension fund.
Khalid Mehmood Anjum 74
Career planning is important because consequences of career success or failure
are closely linked to an individual’s self esteem and identity as well as to career
and life satisfaction. Ultimately, it is top management’s responsibility to develop
and implement a cost effective career planning program. The programme must fit
the nature of the business, its competitive employment practices and current
organizational structure.
The PARCO management believes that there is only one thing constant over
time and that is change and they know how to manage it. Consequently they are
on the look out for breakthrough in knowledge and cutting edge technologies.
They embrace them and make them readily available for all within the company.
As man power is becoming the global issue. Arab and Western Countries are
inviting new immigrants as work force. Keeping in view PARCO management in
this regard not imposes any restriction on an employee and thinks that is the right
of an employee that he can change the job at any time to secure his future and to
support his family.
PARCO employee can resign by giving one month notice otherwise one month
salary is deducted as per company policy.
From the organization’s point of view of career change there are four broad types
of internal moves i.e. (up), (down), (over) and (out). These moves correspond to:
Promotions/Move Over (Up),
Demotions (Down),
Transfers (Over) and
Separations / Lay off / Retirements / Resignations (Out).
Khalid Mehmood Anjum 75
Promoted / Moved over employees usually assume greater responsibility and
authority in return for higher pay, benefits and privileges. Psychologically,
promotions help satisfy employees, needs for security, belonging and personal
growth. Promotions are important decisions that should receive the same careful
attention as any other employment decision.
Parco promotes its employees on merit system on every year on the basis if their
appraisals.
It is a part of job because some time due to fill the vacancy or for punishment of
employees or some time employees’ better career growth planning organization,
higher management of the organization takes the decisions to transfers their
employees to other departments or locations.
Before considering a performance related demotion or high level of crucial
mistake managers are reminded to peruse any counselling or remedial action
which may improve the employee performance. Demotion has implications to
both the employee and company and advice from Human resource should be
obtained prior discussing the action with the employee. Normally demotion cases
involving poor performance of the employee continuous.
The term Separation used for the organization to increase the turn over ratio or
employee left to the organization due to different reasons.
Khalid Mehmood Anjum 76
PARCO have stated situation no lay off policy because it is a growing
organization in oil sector.
The company may terminate the contract forth with specifying reasons giving as
stated in the confirmation letter by intimating one month notice.
Company also have the right to give one month salary and terminate the services
with out prior notice (with immediate effect).
As stated in a policy, services of any employees shall be terminated immediately
if he is found to have:
Indulged in willful insubordination or instigation.
Indulged in theft, fraud, mistreatment or other dishonest acts in connection
with PARCO property or property of any PARCO employee.
Taken or given illegal gifts.
A record of habitual absence from work.
Indulged in drunk or riotous behavior at work or possession of any intoxicant
or drugs.
Indulged in gambling or company properly.
An employee guilty of misconduct may be warned, fined, suspended,
demoted or discharged depending on the company’s discretion.
In PARCO employee may terminate the contract of employment by giving written
notice in accordance with the time in his individual contract or if the contract is
silent in accordance with the notice period.
A resigned employee who fails to report for work during the entire notice period
will be considered unauthorized leave and will not be paid in any uncorked days.
If early released by the Group Manager the employee will pay for any uncork
balance of notice period. Resigned employees are not eligible to take annual
leaves during their notice period.
Khalid Mehmood Anjum 77
010030405
All employees will retire on their 60th birthday as per birth dates establish at the
time of their recruitment by birth certificate. Changes will not be made to the date
of birth after recruitment. The company will allow in special cases beyond their
60th birthday up to maximum five year from the advice medical officer and
approval the Managing Director of PARCO. However, employees who have
completed ten years’ continuous service and attained the age of 45 years may
apply for early retirement. All the benefits of retirements as mentioned above in
the Gratuity etc. are the same for the both the cases.
Khalid Mehmood Anjum 78
The relation between managements and labors in PARCO is the is the good
example of labor management relations, in this way the PARCO management
always take care the grievances of the labors. Management first emphasizes on
Workers labor Union to allow the issues and disputes to be discussed across the
table rather then fighting them out before the third party. This happens in the
collective bargaining through technique “par excellence” of resolving frequently
divergent and conflicting interests of the employers and the employees. A
number of mechanisms also developed to facilitate the resolution of any disputes
Trade Union:
It means any combination of workers formed primarily for the purpose of
defending interests and rights of the workers in any industry or establishment.
Collective bargaining:
The process of collective bargaining culminated on reaching an “agreement”
which is a written statement of revised service conditions and is legally
enforceable. In PARCO uses the technique “par excellence” of resolving
frequently divergent and conflicting interests of the employers and the
employees. It means negotiations between union(s) on the one hand and the
employer or group of employers on the other, for the purposes of regulations of
terms and conditions of employment and for the improvement of wage levels. It
tends to remove any ambiguities, which might have cropped up over the period
of last agreement and redefines the relationships with the labor union.
Explanation of the Collective Bargaining in PARCO:
It is the process where workers organize collectively & bargain with employers
regarding workplace & by which management & unions establish terms &
conditions of employment. It is described as “collective” because workers are
involved in it as group & are represented by individuals chosen for that purpose.
It is bargaining” because it involves give & take for reaching to some suitable
collective agreement.
Collective Bargaining takes place where workers are collectively organized in
Khalid Mehmood Anjum 79
trade union which negotiates on their behalf with a management which
recognizes the union's right to represent their members. It is based on
understanding that there are differing & often conflicting interests to be reconciled
between the workforce as wage earners & the employer as shareholder/owner.
The workers shall without distinction whatsoever have the right to form and
subject to the constitution or rules of a trade union, join any trade union of their
choice within the establishment or industry they are employed in, provided that
workers shall not be entitled to be a member of more than one trade union at any
time.
Fig: 6.1
Source: PARCO Policy Manual – Volume II
Styles of Bargaining:
PARCO enjoys very good working relations with its employees union. The union
is called as PARCO WORKERS’ UNIONS, an officially registered Industry wise
Trade Union with National Industrial Relations Commission (NIRC). It is the
intention and purpose of the PARCO to ensure sound and mutually beneficial
industrial and economical relationship with its workers’ union.
PARCO recognize Unions’ rights and respects it. On the other hand union also
understands the growing discomfort in the prevailing employment conditions in
the country. They are working as partners and on both side a win-win
philosophical approach can be seen in the agreements.
Khalid Mehmood Anjum 80
No strikes or layoff have taken place in PARCO in the history of the company.
This is a proof that the relationships in both parties are strong and flexible in
demands.
SWOT Analysis
Khalid Mehmood Anjum 81
The overall evaluation of a company’s strengths, weaknesses,
opportunities and threats is called SWOT analysis.
INTERNAL ENVIRONMENT ANALYSIS
(STRENGTHS AND WEAKNESSES):
Internal
environment of PARCO has the following strengths and weaknesses.
STRENGTHS:
INTERNATIONAL RECOGNITION:
PARCO can rightly be considered as a
national organization with an international image. PARCO may be the
only Pakistani company apart from a few others that enjoy a
worldwide recognition for their excellent work methods. The most
recent example of this international recognition is the loan extended
to PARCO by the development bank of the EU and the coupon
swapping involving NBP and City Bank that makes the two
respectively responsible for PARCO domestic and international debt.
Khalid Mehmood Anjum 82
LARGEST REFINERY IN PAKISTAN:
PARCO has the largest refinery in
Pakistan and the 4th largest in Asia. The production schedule of
refineries in Pakistan over the last few years will make it more
evident. Apart from being the most technically advanced refinery
PARCO has production capabilities that cannot be matched by other
refineries in Pakistan.
TECHNICAL ADVANCEMENTS:
PARCO is one of the most technically
advanced organizations in Pakistan today whether it is the refinery or
the pipeline its operations are advance and highly automated. Usually
regulated by a central command. The organization has its own
communication system both in terms of data transport and sonic
communications powered by companies like ALCATEL and
ORACLE.
HIGHLY TRAINED AND SKILLED WITH STRONG HR
PLANNING:
Another strength of PARCO
is the highly trained and skilled work force that it has. The people
Khalid Mehmood Anjum 83
operating the technical and management sides of this huge
organization are experts of their fields and constantly try to add value
to the already extensively value adding operations at PARCO.
DETAILED FUTURE HR PLANNING:
PARCO is an organization that is always
ahead of its time and environment. The leadership of PARCO is
aware of the fact that real power lies in continuous improvement and
with this philosophy to guide them they have chalked out a road map
for PARCO no matter what the success they get form a project that is
completed today from the vary moment of its completion the
Parconian’s as they call them selves are on the task of
completing the next.
Khalid Mehmood Anjum 84
PRODUCT QUALITY:
The value adding philosophy at PARCO also directs
them to produce those products that end up adding value not only to
the customers but also to the company itself. The products produced
at PARCO are of high quality due to this fact PARCO was chosen by
the allied war command in Afghanistan to supply jet and standard fuel
to the coalition forces involved in the war their. A living example of
PARCO’s international recognition of its high quality products.
Khalid Mehmood Anjum 85
MANY FACES ONE ORGANIZATION:
PARCO can also be credited for being
the only oil sector company to act as an importer of crude oil,
producer of refined oil, whole seller of refined oil, exporter of refined
oil, retailer of refined oil and a marketer of petrochemicals and
lubricants. This is due to the diversified nature and flexibility of
PARCO that it can be stationed in all of these compartments. This
provides PARCO with a unique ability of growth and value addition.
FINANCIAL POWER:
The company was established with a seed money of
Rs. 540 million and in the last 25 years has expanded a phenomenal
34 times and achieved an equity base of over Rs.18 billion and an
asset base exceeding Rs.90 billion or just over US$ 1.5 billion in
current dollar terms. The latest results are just another element in a
long chain of good financial results that PARCO has produced over
the years of its operation.
DYNAMIC AND RESPONSIVE ORGANIZATION:
At PARCO a shortened
response time to problem identification, solution, actions and results
Khalid Mehmood Anjum 86
has given it the competitive edge necessary for survival in a
deregulated competitive environment.
PURSUIT OF EXCELLENCE:
PARCO management knows that their long-term
survival can only be assured by continuously adapting to change and
excelling in every activity of business. This distinction can only be
achieved by a professional outlook and active acquisition of
knowledge. PARCO promotes this by reading, listening, discussing,
observing, thinking, sharing and continuous investment in human
resources.
SIMPLICITY:
At PARCO it’s a belief that complex theories are really
founded on simple thoughts and unless something is explained in
simple terms it’s not understood. The systems and procedures at
PARCO originate and culminate at the floor where the work is done;
they are made by all are used by all.
SUSTAINABLE GROWTH:
The people at PARCO have realized the pitfalls of
artificial and opportunistic growth. Their growth is founded on their
Khalid Mehmood Anjum 87
inherent strengths acquired through consistent and high standard
performance, which they plan to continue at a steady pace.
RELATIONSHIP WITH CUSTOMERS:
According to the business philosophy
that PARCO follows customers are not limited to entities and
individuals that buy from them. They include in this category their
suppliers, associates and the nation, who are being affected by their
individual and collective actions. They know the value of reliable
service and assure that they deliver it.
CHANGE MANAGEMENT:
The PARCO management that there is only one
thing constant over time and that is change and they know how to
manage it. Consequently they are on the look out for breakthrough in
knowledge and cutting edge technologies. They embrace them and
make them readily available for all within the company.
PIPELINE OPERATIONS AND WOPP:
Another strength that makes this
strength portfolio for PARCO more interesting is PAPCO or Pak-Arab
Pipeline Company that is another name for PARCO when dealing
Khalid Mehmood Anjum 88
with its pipeline operations as explained in the start of the report the
pipeline that PARCO manages is the only one of its kind in Pakistan
and now with the inclusion of White Oil Pipeline the swing has
nurtured towards PARCO more because this means that PARCO can
now freely transport refined and crude oil and can extend its
operations all over the country with relative ease.
TECHNOLOGICAL ADVANCEMENT AND HUGE
INFRASTRUCTURE:
Another
Strength is the Technological Advancement and Huge Infrastructure
that prevails in PARCO. The working of the whole organization is
highly automated in all respects of its operation whether its
communications or routine office work. Latest inclusions are FAS or
Financial Accounting System from ORACLE that has made possible
the integration of finance sections at all PARCO offices with the CHQ
in Karachi.
WEAKNESSES:
UNUSED CAPACITY:
The refinery at Mahmood Kot is the largest in
Pakistan and the 4th largest in Asia. But in operates on 70-80% of its
Khalid Mehmood Anjum 89
capacity because of the domestic demand, which does not meet the
full potential of the refinery. This idle capacity is a value loss to the
company new markets should be found and whole of the capacity
must be used to attain economy of scale.
HIGH COST OF PRODUCTION:
Due to the large extent of its operations the
cost of operating and producing in PARCO is very high as compared
to other large scale industry but as the time passes the influx of CNG
in automobiles and power stations will cause the demand for HOBC,
kerosene and motor spirit to fall that will result in less profitability and
the high cost’s of operation will then really start to hurt.
NON-FLEXIBLE PRODUCTION:
This weakness is inherent in all refinery
structures that their production flow is not a flexible one you cannot
produce more diesel if its demand is more if you don’t have the
required crude. The only way is to correctly forecast the market
demand for the times ahead but even that can be faulty as deviational
trends can affect demand adversely at any time. Than, it would not be
possible for a refinery to change its production with the change in the
Khalid Mehmood Anjum 90
demand of the market. The same happened when PARCO had to
export 90-RON HOBC because it was not demanded in the domestic
market.
NON-AGGRESSIVE MARKETING & COMMERCIAL EFFORTS:
Although the marketing efforts being made by PARCO are
commendable but looking at the size of the company and its
resources it can be said that they lack an aggressive and dynamic
marketing strategy that can help them penetrate the domestic lubes
and petrochemicals market with ease and allow them to dominate it
comprehensively. But one feels that the Marketing & Commercial
policy of PARCO could be more aggressive in the sense that it should
not alienate its current customers such as PSO, SHELL etc.
EXTERNAL ENVIRONMENT ANALYSIS
(OPPORTUNITIES AND THREATS):
The external environment of PARCO offers it the following
Opportunities and Threats.
Khalid Mehmood Anjum 91
OPPORTUNITIES:
In March 2009,DHDS Project:
DHDS (Diesel Hydro Desulphurization) unit project started for
the treatment of sulphur free diesel that enable the environment will
guard against the effects of smoke in the atmosphere and secure a
healthier future for coming generations.
PIPELINE EXPANSION:
As explained in the introductory phase of the
report the pipeline network that PARCO has is the only one of its kind
in Pakistan the network is huge and is currently under expansion.
Apart from it a new network is being developed that will transport only
refined oil from Mid Country Refinery to the facilities all around
Pakistan this will release the pressure on the existing system but will
also give PARCO a competitive edge over all of its competitors in
Pakistan.
EXPANDING DOMESTIC MARKET:
The growth prospect in the domestic
market is also an important opportunity for PARCO especially when it
comes to HSD and LSD the domestic market is rapidly expanding
Khalid Mehmood Anjum 92
because the use of diesel engines that are in trucks, power engines
or motors for industrial or agricultural use is increasing. It will depend
on PARCO to capitalize on this market trend and to use its extensive
pipeline to capture the relevant market.
TOTAL-PARCO VENTURE:
A "TOTAL-PARCO Pakistan Ltd." Joint
Venture Company has been formed to market 25% of MCR production,
through retail outlets, which are currently in the development stage. It
provides a unique opportunity for PARCO to excel in the field of petroleum
retailing using its superior products and the TOTAL brand name.
WOPP (White Oil Pipeline):
Apart from the existing pipeline PARCO is
currently establishing a new pipeline that will transport only refine oil form
the Mid Country Refinery to other facilities it will relieve the pressure on the
existing system and will provide PARCO with the desired level of product
maneuverability that it requires to make the product readily available at all
virtual depots and terminal stations.
Khalid Mehmood Anjum 93
LUBRICANTS MARKET:
Currently the lubricants market in Pakistan is dominated
by either small dealer that sell non branded or non famous brand lubricants
or by Oil Marketing Companies that use their own brand name to sell the
lubricants in the market PARCO has an opportunity to capitalize in this area
either under the banner of TOTAL or using the brand name PEARL which
its currently doing.
INTERNATIONAL EXPORT OPPORTUNITIES:
Although due to the existence of high-
tech refineries n Saudi Arabia, UAE and Qatar the export opportunities for
Pakistani companies are very few but with its superior quality product
PARCO can capture the emerging market in Central Asia and
SAARC countries that will not only increase recognition abroad and
profits but will also allow an window of opportunity for PARCO in the
face of expected low demand of gasoline in Pakistan.
Khalid Mehmood Anjum 94
THREATS:
SMUGGLED IRANIAN PETROL/DIESEL:
Smuggled Iranian Petrol/Diesel
presents a threat to PARCO the Iranian oil much more cheaper as
compared to PARCO oil and will no doubt cut the market for PARCO
oil especially in areas such as Balochistan that are the heart land of
Pakistani transport truckers PARCO’s most important target market.
Which has become ever more important due to CNG conversions of
gasoline run cars. The recent border situation with Afghanistan has
made the border less porous for the smugglers but more needs to be
done to prevent this act that destroys the legitimate right of a
company to sell its goods in a market after passing the necessary tax
and regulatory hurdles.
WTO IMPLICATIONS:
One might think that WTO will not pose any danger
to an organization like PARCO because of the strategic mode of
industry that it is a part of but this assumption is wrong with the
implementation of the Uruguay accord of 1999 the restrictions
imposed by the Government one any foreign goods including oil will
Khalid Mehmood Anjum 95
have to be removed due to the free trade deal. This will cause an
influx of Qatari and Iranian oil that will be damaging to PARCO and
other refineries due to the economies of scale that the latter posses.
CNG PHENOMENON:
Since the start of CNG operations in Pakistan in
1997 the market for gasoline and HOBC has taken a fall and the
current lifting of duties by the government of CNG kits has alarmed
the oil producers, as this will cause more and more cars to be
converted to CNG in the near future. Apart from this the Power Plants
that operated on Kerosene oil now are shifting to CNG as is cheaper
and causes less damage to the plant these developments are a
threat to PARCO future sales of HOBC and Motor spirit both of which
have been the main profit delivering extensively demanded products
in the past.
RISING OIL PRICES AND THE MIDDLE EAST CONDITION:
The oil industry all
around the world is involved in the same way with international
political developments as the steel industry used to be in the 1800’s.
The price of oil in DOW-JONES Industrial Index reached 45$ per
Khalid Mehmood Anjum 96
barrel on August 11, 2004 the highest since the 1974 Arab-Israeli
war. This will cause the prices to increase worldwide and there is no
indication by OPEC to increase production. The situation in Iraq will
also further deteriorate the situation causing demand to exceed
supply as forecasted by the International Institute for Energy
Research. PARCO has to monitor these developments closely to
determine their future strategy.
Location of MCR:
MCR is situated at Qasba Gujrat which is 75 km away from Multan to Kot Adu
road. As residents of PARCO (MCR) are facing problem of medical & education
facilities. The have to travel to Multan for patient special check ups and same
way for higher education have to shift their children to some big city.
Dependent for the Benefits & Improvements:
There is a lot of frustration found between employees because of the PARCO
management is totally dependent on Board of Directors approval for revision of
benefits and some time it take long time and some time not approved the
increments and benefits of the employees or in limited.
Training and Development:
At PARCO there is no independent setup of Training and Development. It is lying
under the umbrella of Admin, while administration dependent on the control of
the corporate office at Karachi, so policies and approval are required from Head
office. This process is slow and some time dates of training passed away. Some
time they hire the specific trainer for the specific purpose who charges the lot of
amount for the training so this may cause the extra burden on the organization’s
financial position.
Khalid Mehmood Anjum 97
Policies Imposed by Government:
Policies of Government are changing day by day regarding oil sectors refinery
profit margins are becoming less. As well as the PARCO management does not
implemented the increases of the packages or increment which periodically
government increases in the form of the high inflation rate over the country.
Setup at Mid Country Refinery:
Administration Department which is established here at PARCO is directly
reporting to GM (CA) but it looks as it totally dependent on Corporate Head
Quarter office. They are not independent in any of the decisions rather all policies
and decisions are defined/finalized by Human Resources from Corporate Head
Quarter. It takes long time for persons sitting there to acknowledge the problems
of persons working at MCR.
Multiple Setups at PARCO:
PARCO is running with three types of setups under one roof.
Existing pipe line,
MCR and
WOPP
As pipe line set up was established in 1974 and policies defined by that time
initially, were implemented at MCR as such, which was wrong.
Both pipe line systems are entirely different from refinery setup, but initially
Human Resources at Corporate Head Quarter did not acknowledge it.
Managing Director’s Office:
In same way the office of the Chief Executive is established at Corporate Head
Quarter which is situated at Karachi.
CONCLUSION
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Now coming up towards some concluding words, in short, one
can say that Human resource Department is meant to facilitate and
support in all matters related to service of employee’s right from their
induction in the company to their last day in service and even beyond.
This department is also responsible for maintenance of service
records of employees. Transfers –postings, maintenance of seniority,
handling grievances, etc. the importance of the Human resource can
be narrated by the fact that developments in human behaviour and
psyche during beginning of last century have forced business
enterprises world wide for sole searching and introspection in human
resource management. Today there is no company in the world, big
or small, which can do without an HR set up. It is men who thinks and
works for quality difference from place to place.
Given the creativity, enthusiasm, commitment and dedication of
PARCO professionals, their continually improving skills due to their
on the job exposure and practical experience, PARCO can really spur
in its field.
Another dimension important to mention here is the role of CHQ that
is continuously pouring its share in strengthening of PARCO. All
those who get an opportunity to excel their abilities there improve
their innate abilities and can work better than before.
Khalid Mehmood Anjum 99
RECOMMENDATIONS
The following suggestions can be put forward that can allow
PARCO to capitalize on its strengths and opportunities and to tackle
its weaknesses and threats.
1) Using its level of international recognition PARCO should open
new windows of opportunities relating to export of its premium
products.
2) PARCO should maintain the level of technical superiority and
advancement over its competitions to reach appoint in the long
run that will allow its strong Human Resource Planning.
3) PARCO should keep on training its already highly trained work
force as it’s the human capital that makes the physical capital to
work training and development in human resource department.
4) PARCO should keep detailed plans of the future so that it will
give its workers a sense of directions and achievements to
Khalid Mehmood Anjum 100
increase the productivity of their employee with god favorable
HR Policies.
5) PARCO should also strengthen the already strong ability to
react to changes in the business environment, as now it’s a
market as well as a production entity.
6) PARCO should try to maintain the high credit rating that it has it
will give a confidence to prospect investor when the company
decides to launch its shares on the open market.
7) PARCO should also develop a dynamic and responsive attitude
towards it internal and external environment so as to predict
and counter changes instead of being alarmed by them.
8) PARCO should further improve its already high standards of
performance and safety that will result in better Human
resource management.
9) PARCO should reduce the level of office paper work as its
trying to do by automating the office functions as far as
possible.
10) PARCO should also try to develop a strong team based
management system that will result in better and efficient
functioning of all of its systems at all levels.
Khalid Mehmood Anjum 101
11) PARCO should, as referred above try to increase the prospect
of export so as to use its full capacity and attain maximum
profit.
12) PARCO should try to reduce its high cost of production and
should try to attain the economy of scale that is required to
compete in the open trade scenario.
13) PARCO should also try to intensify its marketing efforts and
should try to develop an aggressive and dynamic marketing
strategy that will make it possible for it to attain the desired level
of recognition and sales.
14) PARCO should try to further strengthen the PARCO-TOTAL
venture as this is the single most important project when it
comes to either logistics, operations and marketing all of which
PARCO can deliver due to its extensive structure.
15) PARCO should try to lobby support in the government to
prevent smuggling of foreign oil and lubricants into Pakistan.
16) PARCO should try to adjust its operations in advance of the
arrival of the WTO regime so that it doesn’t suffer a reality
shock.
Khalid Mehmood Anjum 102
17) Finally the management at PARCO should not fear the advent
of CNG as a product killer but as a new prospect of investment
and growth.
Reference Used:
Khalid Mehmood Anjum 103
For references consulted:
PARCO Personnel Policies Volume I
PARCO Personnel Policies Volume II
Working with Pak-Arab Refinery Limited, Employees Guide to
Personnel Policies and Procedures.
Sources Used:
Section Head of Human Resources (H.R)
Manager Administration (Administration)
Senior Management Executive (Administration)
Senior Management Executive (Personnel)
Management Executive-I (Industrial Relations)
Management Executive-I (Training & Development)
Khalid Mehmood Anjum 104
Khalid Mehmood Anjum 105
i
Annexure - I
Annexure -IIPARCO Organizational Structure
Khalid Mehmood Anjum 106
Chairman PARCO
Deputy Managing Director
(DMD Operations) Refinery
Deputy Managing Director
(DMD Finance & CA)
Managing Director PARCO (MD)
General Manager (Refinery)
MangerDepartment
MangerDepartment
ChiefSection
Group/Section Head
Senior Engineer /Executive
PARCO Divisional Structure Annexure -III
Khalid Mehmood Anjum 107
Managing Director
Deputy Managing Director
General ManagerRefinery
Deputy General Manager
Manager
Chief Accountant/Engineer/Mana
gement Executive
Senior Accountant/Engineer/Manag
ement Executive
Grade IAccountant/Engineer/
Management Executive
Grade IIAccountant/Engineer/
Management Executive
Grade IIIAccountant/Engineer/
Management Executive
Assistant Accountant/Engineer/
Management Executive
Managers
General Manager
Corporate
ManagerHRD
Section Head Human Resource
MCR
Group Heads I.R, Medical
MCR
Annexure - V
Khalid Mehmood Anjum 108
Annexure - IV
Organizational Structure of theHuman Resources Management Department
Khalid Mehmood Anjum 109
General ManagerCorporate
Policy & Procedures
Manager HRD
Section Head Industrial Relations
Section Head Human
Resources
Group Head Recruitment
Group Head Shared Services
Group Head Organizational Development
Group Head Medical Services
(CMO)
Job Evaluation
Training & Development
Performance Management
Performance Management System in PARCO
Khalid Mehmood Anjum 110
Annexure - VII
Performance Log (STAR EVIDENCE)
Name P. No.
Title Location
Review Period Supervisor
The STAR approach (Situation, Task, Action, and Result) is a useful way to document performance for both employees and supervisors. Supervisors are recommended to maintain this form for each of their employees, and employees are encouraged to maintain this form for their own performance. Individual activities pertaining to Performance Goals and Behavioral Competencies achievement may be recorded as ‘evidence’ throughout the performance cycle and referred to during the mid-year and final appraisal reviews.
DATE
Situation/Task(Outline the
setting in which performance/be
havior was observed, i.e.
Who was involved? What task, target or assignment
needed to be done?)
Action(Describe the specific approach or actions taken or not taken)
Result(Describe or quantity the
outcome of the actions, i.e. What
was the impact/affect? What was the
learning?)
STAR for which
Performance Goal or
Behavioral Competency?
Is it +/- indicator?
Sign. of Employee: __________________ Sign. of Supervisor: _________________
Khalid Mehmood Anjum 111
Annexure - VIII
Khalid Mehmood Anjum 112