TRAINING&DEVELOPMENT

FINAL PROJECT

PAKISTAN STATE OIL (PSO)

Presented To

Sir Faisal Mahmud

............................................. ............................................. ............................. ............................. PROGRAM: MBA PROGRAM: MBA

Presented By

MUHAMMAD ARIF ABDULLAH SHAFQAT ...............................................

2081140 2081194

Acknowledgement

First of all, we are very Thankful to Almighty ALLAH, with the help of which we have completed the task. We would to pay utmost gratitude to our respectful teacher

Sir Faisal Mahmud

The profound effect of a teacher upon the students Can be described by the lives of his students
We deem it with an honor and privilege to record sense of gratitude to the respected teacher for his constructive style of teaching and maintaining very open and competitive atmosphere within the class. For his guidance, encouragement, precious information, and support .He not only provides us practical knowledge but also enhanced our learning skills and polishes our self that we can meet the challenges of modern world. Also his full command on the subject and

INTRODUCTION WHAT IS PSO? PSO is engaged in the storage. Distribution and Marketing of Petroleum Products, Petrochemicals. LPG and CNG. It is continuing to expand its physical and marketing resources to meet the requirements of the country. VISION To excel in delivering value to customers as an innovative and dynamic energy company that gets to the future first.

MISSION
Committed to leadership in the energy market through competitive advantage in providing the highest quality petroleum products and services to our customers, based on: Professionally trained, high quality, motivated workforce, working as a team in an environment, which recognizes and rewards performance, innovation and creativity, and provides for personal growth and development. Lowest cost operations and assured access to long-term and cost effective supply sources.

Sustained growth in earnings in real terms. Highly ethical, safe environment friendly and socially responsible business practices.

Background of the Organization Pakistan State Oil came in to being on January 1, 1974, when federal government took over management of Pakistan National Oil (PNO) and Dawood Petroleum Limited (DPL) and renamed them Premier Oil Company (POCL) under the marketing of petroleum products (federal control) Act, 1974. On June 3, 1974 the Petroleum Storage Development Corporation (PSDC) was taken over and renamed the State oil company limited. Government merged Pakistan National Oil and Premier Oil Company in to the State oil Company Limited and then on December 30, 1976 renamed it Pakistan State Oil Company limited. The Company has approximately 3,700 retail outlets across Pakistan, including 1,609 New Vision Outlets. During the fiscal year ended June 30, 2007, it sold 11.8 metric tons of petroleum, oil and lubricants products. With its 3,700 distribution outlets, PSO has the largest network in the country. The fact that PSO serves 2.8 million retail customers on daily basis, along with 2000 industrial units and business houses, is indicative of its vast customer base. The company has also been meeting

the fuel needs of various government entities, armed forces, railways, agriculture sector and industrial units. PSO also provides Jet Fuel to Refueling Facilities at 9 airports in Pakistan and ship fuel at 3 ports.

Location Head office in Clifton Karachi. Branch Offices in Various cities of Pakistan.

Market Share Pakistan State Oil currently enjoys over 82 % share of Black Oil market and 61 % share of White Oil market. It is engaged in import, storage, distribution and marketing of various petroleum products including mogas, high speed diesel (HSD), fuel oil, jet fuel, kerosene, liquified petroleum gas (LPG), compressed natural gas (CNG) and petrochemicals. Pakistan State Oil also enjoys around 35 % market participation in lubricants and is blending / marketing. Castrol brands, in addition to a wide array of its own. The company has retail coverage of over 3,800 outlets, representing 80% participation in total industry network. (Pakistan State Oil, 2008).

Product Mix for Pakistan State Oil

PSO Automotive Oils
Passenger Car Motor Oils Diesel Engine Oils Motor Cycles Oils Gear Fluids Break Fluids Cylinder Oils Automotive Greases Automotive Asphaltic Oils Heat Transfer Oils Metal Working Fluid Slide Way Oils Process Oils Transformer Oils Greases

PSO Industrial Oils

Gas Engine Oils Hydraulic Oils Turbine Oils Gear Oils Refrigeration Oils

Castrol Automotive Oils

Passenger Car Motor Oils Diesel Engine Oils Motor Cycles Oils Gear Fluids Break Fluids

Castrol Industrial Oils Marine Engine Oil

Industrial Chemicals

Fuel Oils

Solvent Oil Mineral Turpentine

HOBC Premium High Speed Diesel Kerosene Light Diesel

Circulating Oils Hydraulic Oils Turbine Oils Gears Oils

Hexane Toluene Xylene Isopropyl Alcohol

Furnace Oil MEK

Refrigeration VAM Oils

Industrial Greases

Cylinder Oils Asphaltic Oils Heat Transfer Oils Metal Working Fluids Slide Way Oils Industrial Grease

NBA

6 Product

13 Products

6 Products

12 Products

8 Products

6 Products

Product Line Depth

MAJOR PRODUCT LINE MARKET SEGMENTS

INDUSTRIAL LUBRICANTS PSO being the largest oil marketing company in Pakistan has the proud privilege of serving all major industrial establishments of the public and private sector. PSO Industrial lubricants cover a wide range required by industry Brief description of industrial lubricants is given below.

Beside the below mentioned oils, PSO also markets Rubber extender oils, process oils, Textile spindle oils, sole leather oils, Ginning mills oils, Metal working oils, CNG engine oils, slide ways oils, and various types of greases for industrial use.

Hydraulic Oils PSO markets premium quality hydraulic lubricants in 11 different viscosity grades. Their application covers mobile and stationary industrial systems. They can also be used for general-purpose bearing and circulation system lubrication. Compressor Oils The compressor oils are formulated for lubrication of air compressors. 10 viscosity grades are marketed by PSO. These can also be used for lubrication of plain Ball and Roller Bearings, Gears and enclosed Chains.

Textile Machinery Oils PSO markets textile oils in 10 different viscosity grades for circulatory systems, lightly loaded gear boxes, spindle and shafting for general machine lubrication PSO product line.

Marine Trade PSO has an independent Marine Sales Department dealing with fuel supplies to local and foreign flagships.

Three major fuel products known as BFO (Furnace Oil), MDO (Light

Diesel Oil) and MGO (High Speed Diesel Oil) are supplied to ships as bunkers at Karachi & Port Qasim. Business of foreign ships is solicited through foreign associates who nominate ships requiring Fuel at Pakistani ports. PSO is supplying 100% local Bunkering to Pakistan Navy (PN), Maritime Security Agency (MSA), Pakistan National Shipping Corporation (PNSC), etc. For PN, PSO has developed special filtration equipment, which is unique and only available in UK & USA. Foreign exchange earning were US$ 2.26 million and savings of Rs. 30.6 million in local trade. Bunker Trade is 100% with PSO.

Industrial Gear Oils Gear oils are primarily intended for closed gear sets operating under severe service conditions. They are also used in gearboxes of heavy industries such as Steel Mill, Sugar and Cement plants. They are marketed in 7 different viscosity grades. Sugar Mills Oils These oils are specially manufactured for the Lubrication of mill house pinion bearing of sugar mills where total loss lubrication system requires viscous oil with load carrying properties Exposed Gearing and Wire Rope Compound Gear and wire rope compounds are a range of adhesive type low cost lubricants for exposed gearing, wire rope and conveyors for colliery and mines. Steam Cylinder Oils These are highly viscous lubricating oils for saturated steam cylinder lubrication enclosed gears and other matching parts where thick grade lubricants are required. Refrigerator & air-conditioning oils These lubricants are designed to meet requirements of low temperature operations of various types of refrigerators and air-conditioning compressors. Heat Transfer Oils PSO markets heat transfer oils with good thermal stability. These are used for heat extraction and heat systems in work processing, space heating and viscosity baths.

ORANIZATIONAL STRUCTURE & DESIGN The organizations formal framework by job tasks is divided in groups but is coordinated. The basis on which jobs are grouped in order to accomplish organizational goals is functional departmentalization.

BRAND MANAGEMENT AND COMMUNICATION DEPARTMENT Branding is the reputation and the image of a company, which is conveyed via names logos, acts packaging and word of mouth. Corporate branding used to focus on logo and name but today it has a broader meaning. The need for branding arises when consumers expect more than a good product at a fair price. They seek service experiences that compliment their life styles and brands that align with their personal aspirations. And thats exactly what company try to convey to target market. VM&C department at PSO follows the following two approaches: Expanding the depth and breath of brand awareness by improving brand recognition of consumers during purchase or consumption settings. Improving the strength favor ability and uniqueness of brand associations making up the brand image. The above goals are achieved primarily through: Corporate Advertising Sales Promotion Campaign Sponsorships

CUSTOMER SERVICE DEPARTMENT PSO has recently set up a dedicated service department that is major step towards companys overall objective of becoming a customer-oriented company. Located at the companys head office in Karachi the CSD is the first point of contact for the customers on day to day concerns and provides centralized customer service across Pakistan Trained and professional staff attends to and solves the customers concerns and complaints quickly and effectively. PUBLIC AFFAIRS/PUBLIC RELATIONS DEPARTMENT (PRD) The major function of the PRD is to ensure the projection of the companys image as the countrys premier public sector organization and conscientious citizens. This is achieved by highlighting positive stories about the company in the media.

Other functions of the department include event media management speech writing and keeping Managing Director and the company hierarchy informed. The department also tackles press queries and sets up interviews of the Managing Director with the media. It also coordinates with the brand management and other departments in the planning of events press conferences workshops seminars etc. The department is also involved in giving banners and tackling adds requests not related to advertisements campaign. The department personnel are also involved in the preparation of the annual report and writing of articles.

CHAIN OF COMMAND It is an unbroken line of authority that extends from the upper levels of the organization to the lowest levels and defines who reports to whom. As PSO follows traditional objective setting decision are made totally by the top management. The authority is given to the managers to give orders and employees are bound to follow them. It is the responsibility of the employees to perform those duties assigned to them.

UNITY OF COMMAND On PSO the unity of command hoes in the following sequence: Chairman Managing Director General Managers Divisional managers Sales Executives

Sales officers

Managing Director is answerable to the Chairman. MD has 7 general managers working under him. Every G.M has 8 DMs working under him. Every DM has a Sales executive and under him there are 8-12 sales officers. CENTRALIZATION PSO is a highly centralized company i.e. decision-making is concentrated in the upper levels of the organization. The Top management makes the companys key decisions with little or no input from the lower level employees. PSO is more centralized because the environment is stable company is large and lower level managers are not as capable or experienced at making decisions as upper level managers.

MECHANISTIC ORGANIZATION PSO is a mechanistic organization with a highly controlled structure. In the mechanistic structure work specialization creates jobs that are simple routine and standardized. Extensive departmentalization increases impersonality and the need for multiple layers of management to coordinate these specialized departments. There is also a strict adherence to the unity of command principle. As the distance between the top and the bottom of the organization is wide, top managers tend to impose rules and regulations to control the employees behavior.

stakeholder Hide links within definitionsShow links within definitions

Definition
Person, group, or organization that has direct or indirect stake in an organization because it can affect or be affected by the organization's actions, objectives, and policies. Key stakeholders in a business organization include creditors, customers, directors, employees, government (and its agencies), owners (shareholders), suppliers, unions, and the community from which the business draws its resources. Although stake-holding is usually self-legitimizing (those who judge themselves to be stakeholders are de facto so), all stakeholders are not equal and different stakeholders are entitled to different considerations. For example, a firm's customers are entitled to fair trading practices but they are not entitled to the same consideration as the firm's employees. See also corporate governance.

HR PRACTICES OF PSO
RECRUITMENT

Recruitment is the process of locating identifying and attracting capable applicants. Sources of recruitment for PSO are as follows.

Internal search

Advertisement Employee referrals Public employment agencies etc. PSOS RECRUITMENT PROCESS The purpose of requirement is to induct quality personnel for all the vacant position (the right person for the right job) When there is a vacancy of PSO a large numbers of applications are received. Mainly, through the advertisement in the newspapers or through the referrals of current employees. The employees screen the applicants. Because the recommenders know both the job and the person being recommended they tend to refer applicants who are well qualified for the position. DERECRUITMENT De-recruitment is a technique for reducing the labor. According to PSOs policies if the employee has done something wrong or Hanky Panky then the company uses the option of firing as a mean of de-recruitment. This seldom happens unless someone has broken the rules of the company. Sometimes employees are also transferred. PSO recently used another method of de-recruitment. They used the Golden handshake scheme and voluntary separation schemes. SELECTION Selection is the process of screening job applicants to ensure that most appropriate candidates are hired. In PSO they select an employee on the basis of his qualifications. Different selection devices are used to choose the best suitable candidate for the job. SELECTION DEVICES

Number of selection devices is used to accept and reject applications. These are stated below: CVs as all organizations requires a form on which the applicant fills in his name, address and telephone number and a comprehensive personal history profile detailing the persons activities, skills and accomplishments. Some relevant biographical data and facts that can be verified are also required. Written Test When a candidate applies for a job at PSO he has to give a written test. It is an intelligence, aptitude and ability test. First IBA used to conduct these tests for PSO. Interview Interview is the most important and reliable method of determining the personal abilities of the applicant by PSO. They get to know about the interpersonal skills of the candidate. Physical examination after an applicant has been selected after the interview, he is physically examined. For jobs with certain requirements, the physical examination has some validity.

After the applicant is selected and the management of PSO is sure of their decision that this person is suitable for the job, he has to undergo a training process of one year.

ORIENTATION Orientation is the introduction of a new employee to the job and the organization. Every new employee that has been hired in PSO is given an orientation to familiarize with the companys functions, policies, employees and programs. The type of training would be an individual or group basis depending upon the number of participants COMPENSATIONS AND BENEFITS PSO offers competitive starting salaries and bonuses. The individual contribution in reward. Pensions and gratuity the company operates approved and fund pension scheme for both management and non-management employees. The scheme provides pension based on the employees last drawn salaries. Pensions are payable for life. The company also operates un-funded gratuity scheme for all its employees. MEDICAL The company also provides post retirement medical benefits to its employees. PSOs Medical policies are considered to be the best in the country. Medical is free for the employees and their families.

Vaccination program for employees: in recognition of the importance of human resource and its health, PSO organization a vaccination program for its employees. PSO inaugurated the program under which the employees were vaccinates against diseases like Cholera, Typhoid, Hepatitis B at the PSO houses dispensary.

PROVIDENT FUND The company also operates an approved provident fund scheme for all its employees. Equal contributions are made to the fund by the company and the employees in accordance with fund rules. Loans Loans are granted for house construction repair or for the purchase of land. Employees can also avail the car loan facility. Rewards Rewards are given on the basis of performance of the employee on Monthly and weekly basis. These include the monetary rewards and also the Points for promotion. Million Liter Awards The million-litre award ceremony was held at the PSO house. These awards were given to the dealers who crossed the one million-liter figure in selling the products of the company. the award had been initiated to recognize and encourage to promote the business and services to their customer. Awards were also given to the divisional managers and sales officers showing outstanding performances in their respective field.

ORGANIZATIONAL CULTURE ORGANIZATION CULTURE Organization culture is a system of shared meaning with in an organization that

determines in large degree how employees act. According to the opinion of the PSOs sales officer PSO is a sales oriented company. Strong culture is a symbol of more profit more earning and sense of responsibility. It is also a monument of well-disciplined enterprises in which every organ of that organization is well concerned with the ultimate objective of the organization. As its a fundamental truth that every individual from worker to Top manager is aware of his rights privileges responsibilities and outcome of efforts being invested.

SIX DIMENSIONS OF CULTURE 1. Innovation and risk taking According to our survey what we have found is that employees are not much encouraged to be innovative and take risks. 2. Attention to detail According to our survey employees have given importance. 3. Outcome Orientation The managers focuses on both results or outcomes and the techniques needed to achieve those outcomes. 4. People Orientation Management decisions do not take into consideration the effect of outcomes on people within the organization. They have made their employees a central part of their culture. 5. Team orientation They emphasize on team orientation i.e. work activities are organized around them. 6. Stability PSO is maintaining the status in contrast to growth.

Value Chain PSO

STAKE HOLDERS
Consumers
The Industrial Consumers The following are major industrial consumers segments for PSO, General Trade For the General Trade segment includes the major customers like, NLC, POF Wah, Police, KMC, KWSB, Gairon, Ruplai Group, Engro Chemicals and Pakistan Steel Mill (Ex-Shell Customer) Defence PSO enjoys a long-standing and deep-rooted relationship with Pakistan Army especially in the Fleet Management Training for senior arm force officers. Power Industry In 1994, PSO was the only OMC that made huge investment of around 2.2 billion and aggressively entered the power sector and captured a market share of approximately 88% by supplying products to all power plants.

TRAINING&DEVELOPMENT PRACTICES AT PSO

TRAINING DESIGN PROCESS

Training Programs at PSO Assessment and Training Needs
Survey in PSO Method for Data Collection Data Analysis

Training Need Analysis

Direct Observation Questionnaires Consultation with Persons In Key Positions, Interviews Records & Report Studies Work Samples

Customized Training
In-House Training On-the-job Training Off-the-Job Training Seminars and Workshops

Evaluation Programme

Training Programs at PSO 1. In-House Training: only PSO employees are there and these training sessions are conducted in the PSO house 2. 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 Training Methods used at PSO On-the-job Training 1. Job Instruction Training 2. Job Rotation 3. Coaching Off-the-Job Training The employees are given off-the-job training in the form 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 Assessment and Training Needs Through the help of performance appraisals, employees 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 shouldnt

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

Training Need Analysis It is important to identify training needs before implementing any training solutions Several basic Needs Assessment techniques include Direct Observation Questionnaires Consultation With Persons In Key Positions, Interviews Records & Report Studies Work Samples Major focus Health Safety & Environment Computer Trainings for Integrated Resource Planning Marketing/Consumer focused trainings Technical & Operational focused inputs Management Development Leadership Presentation Skills Computer Based Finance Human Resource Management Team Building Time Management Labor & Corporate Laws Supply Chain Management

Courses Preferred By the Employees: S. # `1 2 3

100 90 80 70

Variable Decision Making Skills Leadership Skills Strategic Planning Negotiation Skills Presentation Skills Brand Management Stress Management Business Writing Skills Motivation Self Management Computing Customer Services Supervisor & Managerial Skills

Response in % 90 77 62 53 42 35 35 29 19 19 17 15
Comeptencies Need Assessment

4 5 6 7 8 9 10 11 12 13

64 Comeptencies Need Assessment

Response in %
De c isi on

60 50 40 30 20 10 0

Sk Le ills ad er sh ip Su St Sk ra pe ills te rv g is ic or Pl & an M ni an ng ag er ia lS Ne ki go lls tia tio n Pr Sk es ills en ta tio Br n an Sk d ills M an ag St em re ss en M t an Bu ag si ne em ss en W t rit in g Sk ills M ot iv Se at io lf n M an ag em en t Co m Cu pu st tin om g er Se rv ic es

M ak in g

Job Related Attributes

Defensive driving training input was given to over 7000 drivers carrying POL products. Customized sessions on ethics, team building, presentation skills, sales and marketing, customer courtesies, realizing potential, success, taking charge and leadership, computer based project management, etc have been organized on a regular basis. The Company has also launched ongoing internship program for graduating university students. Apart from this rigorous SAP training has been imparted to all users. Leadership Mr. Kirmani introduced new style of leadership which helped him in achieving his objectives. He was demanding and had a low tolerance for failure to meet commitment. He was also accessible, decisive, fair, judicious, energetic and willing to make tough but humane calls. In his interviews with his staff he used to comment on his way of leadership as:

"I have to be credible in eyes of my people. If I did not walk the talk these people will do a lot of finger pointing." Under this leadership practice of Pakistan State Oil, managers could have open communication with the staff. The idea was to use a top down approach which would later be cascaded to have other employees on board from other levels.

Social responsibility PSO was not involved in social activities but due to management team after the turn around Pakistan State Oil has succeeded in creating a culture, built on their strengths and best practices, not only in terms of operating excellence and exemplary standards but also in their proactive approach to quality of life. At the heart of this position is their commitment to zero pollution, zero accidents and zero occupational illness. In this context: It introduced its product by the name of Green XL which does not contain any toxic material. It also created visual parks at different places like one is in Islamabad. It also took certain steps to protect the animals as well. In this context it has also celebrated Wetland Program for saving turtles specie. ( Pakistan State Oil, 2008). Pakistan State Oil created a lot of awareness about environment by fixing banners along the road side like: "Your environment is you." or "Keep your environment clean." In this way by efforts of management Pakistan State Oil proved the slogan of environment

friendly products after the change strategy was implemented. Check and balance on employee's attendance Pakistan State Oil introduced a specific hand scan system which used to scan the hand of employee while entering and after leaving the workplaces. This system also displays the time being worked by employee, so it is a very effective system applicable till now which leading to change the attitude of the workers.

Quality of products According company's profile the image of Pakistan State Oil was not so good in customers mind, its quality was low as compared to its competitors but efforts of the Mr. Kirmani led to creation of quality control vans and testing units which kept on ensuring the quality control. Pakistan State Oil introduced total quality management system in its operational activities. In addition to quality assurance in upkeep and maintenance of existing facilities, compliance with quality standards is ensured in construction of new facilities like recently developed state-of-the-art facilities for Aviation customers at Lahore Airport.

Organizational Development Model Lewsins model of change Lewsins model of change which is compose of the following three steps: Unfreezing: Reducing the forces that are striving to make status quo Moving: Developing new behaviors values and attitudes Refreezing: Introducing of new systems and procedures.

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

RECOMMENDATIONS FOR TRAINING & DEVELOPMENT We recommend SAP application for data automation.

SAP
SAP is the leading Enterprise Information and Management Package worldwide. Use of this package makes it possible to track and manage, in real-time, sales, production, finance accounting and human resources in an Organization.

HR MODULE
The HR module enables to effectively manage information about the people in their organization, and to integrate that information with other SAP modules and external systems. From the Organization Management perspective, companies can model a business hierarchy, the relationships of employees to various business units and the reporting structure among employees. The Personnel Administration (PA) sub-module helps employers to track employee master data, work schedules, salary and benefits information.

Current Personnel Development (PD) functionality focuses on employees' skills, qualifications and career plans. Finally, the Time Evaluation and Payroll sub-modules process attendance and absences, gross salary and tax calculations, and payments to employees and third-party vendors. The number of companies using SAP R/3's Human Resource (HR) module has increased

dramatically in the last few years, with many clients adding HR to their live suite of modules, or even choosing HR as an initial or standalone implementation.

WHAT MAKES SAP DIFFERENT? Traditional computer information systems used by many businesses today have been developed to accomplish some specific tasks and provide reports and analysis of events that have already taken place. Examples are accounting general ledger systems. Occasionally, some systems operate in a "real-time" mode that is, have up to date information in them and can be used to actually control events. A typical company has many separate systems to manage different process like production, sales and accounting. Each of these systems has its own databases and seldom passes information to other systems in a timely manner. SAP takes a different approach. There is only one information system and database in an organization, in which all applications access common data. Real events in the business initiate transactions. Accounting is done automatically by events in sales and production. Sales can see when products can be delivered. Production schedules are driven by sales. The whole system is designed to be real-time and not historical.

SAP structure embodies what are considered the "best business practices". A company implementing SAP adapts it operations, achieves its efficiencies and power rapidly. The process of adapting procedures to the SAP model involves "Business Process Reengineering" which is a logical analysis of the events and relationships that exist in an enterprise's operations.

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These operations consistent with the overall integration of SAP R/3, the HR module shares information with other modules, such as Financial Accounting (FI), Controlling (CO), Production Planning and Business Workflow. The Payroll processes use Accounts

Payable functions to print checks, manage payment and bank information, and process payments to tax authorities and other third-party vendors. Payroll results are also posted to General Ledger accounts for use in periodic income and expense reporting. For management accounting, information regarding employment costs can be transferred to Cost Centers with in the CO module. Employees can be assigned to Work Centers, which are used in conjunction with Production Planning. Assigned positions and reporting relationships from PD are used in Business Workflow to route purchase requisitions and 61

other documents for approval. HR works with external systems either through certified interfaces with SAP partner products, or custom developed interfaces to customer defined systems.

FUNCTIONAL MODULES R/3's applications are modules. They can be used either alone or combined with other solutions. The integration capability of these applications increases the benefits derived for any company. Human Resources HR provides solutions planning and managing company's human resources, using integrated applications that cover all personnel management tasks and help simplify and speed the process.

PM: (Personnel Management) PM is a complete solution for personnel administration, recruitment management, travel management, benefits administration and salary administration.

OM: (Organizational Management)

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OM assists in maintaining an accurate picture of organization's structure, no matter how fast it changes. It is systematic and forward planning tool that considers the final effects of all personnel events thus it's complete solution for personnel cost planning.

PA: (Payroll Accounting)

PA addresses payroll functions from a global point-of-view and gives the capability to centralize payroll processing or decentralize the data based on country or legal entities.

TM: (Time Management )

TM is integrated with payroll accounting, controlling, production planning, plant maintenance, project system, external services and shift planning. It provides with a variety of standard reports that will assist in tracking and analyzing employee time with completeness and accuracy.

PD: (Personnel Development)

PD assists with planning, monitoring, and analyzing scheduled seminars, training courses, and business events, registration and booking, price determination and invoicing. LOGISTICS

Logistics comprises all processes involved in purchasing, materials management, manufacturing, warehousing, quality management, plant maintenance, service management and sales and distribution. All applications access a shared consistent database, supported by production data management.

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SD: (Sales & Distribution) SD actively supports sales and distribution activities with outstanding functions for pricing, prompt order processing, and on-time delivery, interactive variant configuration, and a direct interface to profitability analysis and production.

PP: (Production Planning and Control) PP provides comprehensive process for all types of manufacturing: from repetitive, make-to-order, and assemble-to-order production, through process, lot and make-to-stock manufacturing, to integrated supply chain management with functions extended MRP || and electronic kanban, plus optional interfaces to PDC, process control systems, CAD and PDM.

PS: (Project System) PS coordinates and controls all phases of a project, in direct cooperation with Purchasing and Controlling, from quotation to design and approval, to resource management and cost settlement.

MM: (Materials Management) MM optimizes all purchasing processes with workflow-driven processing functions, enables automated supplier evaluation, lowers procurement and warehousing costs with accurate inventory and warehouse management, and integrates invoice verification.

QM: (Quality Management) QM monitors, captures, and manages all processes relevant to quality assurance along the entire supply chain, coordinates inspection processing, initiates corrective measures, and integrates laboratory information systems. 64

PM: (Plant Maintenance) PM provides planning, control, and processing of scheduled maintenance, inspection, damage-related maintenance, and service management to ensure availability of operational systems, including plants and equipment delivered to customers.

SM: (Service Management) SM provides highly integrated customer service functionality to compete in today's global markets.

PDM: (Product Data Management) PDM supports in creating and managing product data throughout the product life cycle.

SAP HR
HR module of SAP is the current need of every big organization which Siemens provide and currently the are implementing in various companies of Pakistan like Pakistan

Petroleum Limited (PPL), ICI Pakistan, PSO and even the Pakistan government department like AGPR and other financial institutions are implementing SAP to automate their systems and managing their Human Resource with it by the funding of world bank. The primary goal of SAP HR module is to provide managers and HR professionals to manage the people information effectively and to use in the benefit of both the employer and the employee. The future of SAP's HR module looks promising for both customers and implementers. Internet technologies will provide SAP customers new tools to include employees in maintaining their own data, and increase management's ability to quickly report on critical employee information. Developing solutions for companies with extensive expatriate assignments will improve the way businesses manage and pay international

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employees. These factors, along with emerging rapid implementation tools will make SAP an ever-stronger choice among HR management systems. SAP HR module is an effective tool to handle and accommodate following organizational elements, ORGANIZATIONAL ELEMENTS

Client Company code Personnel area is used exclusively in HR and is unique within a client. Each personnel area must be assigned a company code.

Personnel sub area

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 66

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 The Trainee Father completes the Training Plan and gives it to the trainee in the first week of joining the company. The trainee father keeps a copy and a second copy is sent to the Human Resources department through the respective Manager. Report Of Feedback The trainee is required to report on the quarterly trainee feedback form to report about his/her training during each quarter. HR sends this form to the trainee at the end of each quarter. The trainee fills the form and returns directly to HR.

Progress Report Trainees progress report form is sent to the trainee father at the end of each quarter. The trainee father fills the form and returns to HR through the respective Manager.

Training Appraisal Upon completion of training a final appraisal is required by the respective managers to communicate whether to confirm, extend or terminate the training. Employees at PSO are undoubtedly considered their greatest assets, so they place great importance on nurturing their own home grown talent by helping people at all levels in the company to develop their skills and capabilities, and to pursue their full potential. Employees with management potential are encouraged to take part in the companys management learning program, which provides an excellent forum for personal and

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team development as well as networking and knowledge exchange with peers from other businesses Continuing education is an important part of any career; PSO provide an extensive curriculum of interpersonal, management and technical training. Human Resources/Educational Services is their partner in total employee development. Human Resources can provide the solutions and introduce you to the tools and resources you need to successfully manage your career.

CONTINUOUS LEARNING

Sales Training Trainer Consultation Trainer Certification Basic Skills Training

Sales Training Providing customers (internal employees & external customers) with the most effective learning processes is the mission of the Sales Training Team. This curriculum is suited for everyone-- from those who are new to sales to seasoned senior account executives. Trainer Consultation With proper planning and guidance, participants are assured of receiving the right training, in the right place and at the right time.

Trainer Certification Through Trainer Certification, educating employees can be cost effective, flexible and convenient.

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Basic Training

Skill

Basic Skills Training provides courses increase their general knowledge and enhance their skills. It includes the customer services on the petrol pump which

includes:

Check the meter of the car Greet the customer

To take keys from the driver

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References Company Overview. Retrieved April 24, 2009, from http://www.psopk.com/about_us/ Pakistan State Oil (n.d.). Retrieved April 23, 2009, from Wiki:

http://en.wikipedia.org/wiki/Pakistan_State_Oil Mona Khan. 11 April, 2008. Change Mgt at PSO. Retrieved April 22, 2009, from http://www.scribd.com/doc/7741256/Change-Mgt-at-PSO-Pakistan Kamal, R. (2005). Interview of Mr. Viqar Ahmed (General Manager Training PSO). Retrieved from Google Scholar.

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Profile. Retrieved April 22, 2009, from http://www.pakistaneconomist.com/issue2001/issue41/etc1.htm KARACHI: Shaukat Raza Mirza, MD of PSO, and driver shot dead. Retrieved April 22, 2009, from

http://www.geocities.com/sipahisahaba/2001/26072001.htm

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