Pakistan State Oil Pakistan state oil company limited was established in 1976 PSO was formed through the amalgamation of three state controlled oil

marketing and storage companies, Pakistan National Oil {PNO}; Premier

Oil Company {POC} and oil company Limited {SOCL}, formerly ESSO

Undertakings As the largest oil marketing company of Pakistan, PSO is engaged in

storage, import, distribution marketing of petroleum products

petrochemicals aviation and bunker fuels LPG and CNG dominates the

country’s fuel and energy need The company has largest retail network in the country and the most

extensive terminal and depot network. PSO has listed in Asia’s largest

1000 companies by Asia Week

Since its inception in 1976, the company has been meeting more than 70% of country’s fuel needs

PSO's 3805 outlets all across Since its inception in 1976, the

company has been meeting more than 70% of country’s fuel

needs. markets more than 12 million tons of fuel products annually. This

network is supported by PSO’s 28 storage facilities with a

capacity of more than 800,000 tons

PSO took a major step in improving its distribution facilities by acquiring 12% equity in the 800 km long Karachi-Mehmoodkot White oil Pipeline

As part of PSO’s policy of providing better customer service it

has embarked upon its new vision retail development program.

Equipped with the most modern facilities like Electronic dispensing units, Auto car wash, Convenience stores, Internet facilities and business centers these state of the art designed

stations provide greater customer confidence and a friendly environment

Objectives of PSO The company is focused on efficiently meeting the energy

requirements of Pakistan Through its customer satisfaction it is consistently seeking to

improve quality of product Giving Momentum to the Nation Energizing Industrial Institution Ensuring Customer Satisfaction Meeting New Business Challenges

Importance of HRM HRM is an important strategic tool and it can contribute to the

development of a sustainable competitive advantage It is the most important intermediary body between the employee and

the organization that works to develop relations advantageous to both All activities related to non-management employees are handled by the

industrial relations division and that of Management employees are

handled by the personnel division of the HRM

HR Practices of PSO Recruitment Selection Orientation Compensation and Benefits Appraisals Training and Development We will focus on Training and Development

of PSO

Training Policy of PSO Training and development is a continues process and it is designed to

bring about a change in the attitude of the employees with respect to the job they are doing, the people around them and techniques and skills which they can use

It is also to make them more conscious of their responsibilities and how

to perform them well Therefore all training is planned and coordinated in a systematic manner

by the company

Training Programs of PSO Customized Training

In customized training, people from different companies of the same

industry go to the institution for training PSO also sent there staff for

training In-House Training

only PSO employees are there and these training sessions are

conducted in the PSO house

Training methods used at PSOOn-the-job Training Job Instruction Training Job Rotation CoachingOff-the-Job Training The employees are given off-the-job training in theform of lectures, video presentations, self-study,WOW training is also off the job for Petrol pump staff

Seminars and Workshops Training and development department also arranges

seminars and workshops for their employees. The main purpose of these seminars is to create awareness. Different seminars are for different level of jobs. But the seminars that are regarding health, safety and environment are for each and every employee.

For finance department, they arrange seminars with the ICAP (Institute of Chartered Accountants of Pakistan). All the employees in the finance department have to complete these seminars. Their attendance is mandatory and if they do not attend these seminars then they have to give some penalty.

Training Need Assessment Through the help of performance appraisals,

employee’s potential strengths and weaknesses are assessed and formal training is given to them to capitalize on their skills. The type of training and the training period varies from individual to individual. employees are motivated through job rotation so that they shouldn’t get bored with their current jobs and put their skills and abilities in other tasks and at the same time broaden their area of knowledge

On the job training It is well regarded that the best place for effective learning is on the job

i.e. the employee learning the job by doing it under instruction by his superior

Since managers are, if not trained instructors the department provides

training the job instruction methods through practice of supervision

course During the training the trainees are sent to the different departments of

the organization in order to expose and familiarize them to the business

environment of the entire organization. The training period for different

employees varies according to the nature of the job they likely to handle

Continued..... The different periods for different trainees are listed below:

Engineering Trainee will take 18 months on training MBAs will take 6 months on training BBAs Training lasts for 8 to 12 months Electrical and Mechanical Technicians will take 8 months on

training During the training the performance appraisal for each trainee is made

after each quarterly. After completion of the training a performance

review is made and if the performance is satisfactory then the trainee is

appointed as permanent employee

Training Employees In order to keep its employees at par with the technological and business

development PSO arranges for the adequate training of its employees. The different modes adopted by PSO include: Sending employees abroad Arranging for the training of the employees at home, as and when

need arises One such case is the training of employees to use SAP application

for data automation.

Scope of Pre-Employment Training

The aim of pre-employment training policy of PSO is to provide opportunities of hand-on professional training in real job environment to the prospective employees of the Company

Graduates of various disciplines are inducted for 6 to 12 months on-the-job

business administration/technical training. The selected personnel are trained

on-the-job under the direct supervision of senior employees (Trainee Father /

Mentor) so as to build their competency to the required levels The training is objectively programmed, guided and monitored through a

feedback system towards assessing trainees’ actual performance & potential

with regard to the requirements of foreseen vacant positions. The staffing needs

of the company are met generally from the pool of trainees who complete their

training successfully and are found suitable for the available job opportunities

Procedure In order to assist in providing a systematic method of training and

integrating the trainees in PSO following forms are used: Plan For Training Report Of Feedback Progress Report Training Appraisal

Continuous Learning Sales Training Trainer Consultation Trainer Certification Basic Skills Training

Development Personnel Development

The company regards employees as its greatest asset. Therefore, it is

of particular importance that the right applicant is employed for the

job The correct procedures for engagement and selection must be clearly

understood by both Line Management and Human Resources. The

company will recruit, train and promote staff on the basis of their

ability, according to relevant legislation and company policies and

request Competencies describe what is needed for each employee to perform

his or her job successfully regarding the expected knowledge,

experience and capabilities

Competency Based Model The Competency Model defines the competencies that are required by PSO in

various positions as the requirement of a competency varies from one job to another.The form to be used in this connection is Training Needs Analysis. The

PSO Competency model forms the basis for assessing the training needs of the

whole organization It is the responsibility of heads of all organizational units to take account of hat

specific knowledge and skills the jobs involve, what the individuals already

possess, and what gaps in such knowledge and skill levels, training can fill.

Guided by business targets/departmental objectives and evaluating employees

on their existing capabilities, with the help of the Training Needs Analysis

document, the training needs of each individual are determined

Analysis of Training and Development at PSO

PSO has also taken several initiatives for improving the overall productivity and efficiency of its staff through computer training, in-house courses, sponsorship for studies at professional institutions and seminars etc

When it comes to training and development PSO gives on the job

training. They believe that the employee tends to learn a wide variety of

jobs and a wider perspective on the organizational activities

Training and development at PSO helps in: Assist in identifying hiring requirements Source and identify qualified candidates for vacant positions Perform initial screening interviews Refer qualified candidates to the higher manager for final selection Extend offers of employment to ensure consistency in process Develop, implement and/or administer employee orientation

programs Provide outplacement services (training etc.)

Weak Points of PSO There is Nepotism in the organization that polluted the T & D Process PSO doesn’t have any specific module for conducting TNA, the one

method that they are following are internally developed It has been found that PSO didn’t hire any external consultants for T &

D and don’t have psychologist who diagnose the sickness of the process,

culture, roles, working environments, policies etc Employees working in rural areas don’t have opportunity to visit the

head office and interact with the management and to be trained

Recommendations On the Job Training assessment and implementation is the

responsibility of the department’s training coordinator. They should provide, at a minimum, on-the-job training or work-related instruction that prepares employees to perform their current jobs (includes: instruction necessary to accommodate technological changes, and new employee orientation)

The individual Employee Development Plans for employees are

mandatory as a part of the Employee Work Profile at PSO, which should

be updated bi-annually. The plan includes personal learning goals,

learning steps and resource needs

Recommendations Regular professional training is conducted through conferences,

conventions, seminars and workshops that are aimed at enhancing and/or increasing the work skills and/or abilities. This kind of training can include any dimension ranging from the regular trainings regarding safety and environment hazards. Work methodologies, personal skill development and organizational focus. The time that an employee spends at an approved training program during normal work hours shall be considered as part of the employee's normal work hours and shall not be charged to his or her accumulated leave or considered leave without pay

RecommendationsTraining records and maintenance have to be kept by the coordinator where the records should be maintained following the three years after the completion of the training. Training records should include, at a minimum:Participant's age, race, and genderCourse identification and dates of training

RecommendationsThere is need to eliminate nepotism .This can be done by regular feedback taken There is need to eliminate nepotism .This can be done by regular feedback taken by the HR department from employees about their problems.by the HR department from employees about their problems.PSO must develop a TNA model which is a mix of qualitative and quantitative PSO must develop a TNA model which is a mix of qualitative and quantitative

factors for a realistic picture of the training needsfactors for a realistic picture of the training needsIt also needs to hire an external consultant for Training & Development who can It also needs to hire an external consultant for Training & Development who can

impartially assess the flaws of the system.PSO must hire an Organizational impartially assess the flaws of the system.PSO must hire an Organizational

Psychologist who can perform these tasks well and coordinate all the things with in Psychologist who can perform these tasks well and coordinate all the things with in

the companythe companyEmployees working in rural areas should be given the opportunity to visit the head Employees working in rural areas should be given the opportunity to visit the head

office for training. office for training. Training is also helpful because it helps in filling the gaps that

might arise because of the lack of skills or abilities that are required to perform a

particular job. By giving proper training to employees, employees can acquire those

skills and perform the jobs in an effective and efficient manner.

ConclusionThe T & D department of PSO is playing an important role in training and development of its employees to be at competitive edge and to develop its potential employees to enrich their knowledge. PSO also wants to enhance their skills by training them with business related courses available in the corporate sectorTraining usually starts from its orientation programs to management training they

spend million of dollars each year to enhance the skills of its management and non-

management employee’s through on the job, off job, apprenticeship and coaching

training programs

ConclusionIt can be concluded after the analysis, that, training and development of employees is an investment rather than cost for the organizations. To retain employees, proper training and motivation are the basic tools. A well-trained group of employees result in the reduction of costs, stress, turnover, and absenteeism and corresponding increase in efficiency and customer satisfaction