PSO is the market leader in Pakistan's energy sector. It's a public sector company with the government shares of 25%. The company has the largest network of retail outlets to serve the automotive sector and is the major fuel supplier to aviation, railways, power projects, armed forces and agriculture sector. PSO also provides Jet Fuel to Refueling Facilities at 9 airports in Pakistan and ship fuel at 3 ports. The company takes pride in continuing the tradition of excellence and is fully committed to meet the energy needs of today and rising challenges of tomorrow.
Pakistan State Oil is currently engaged in storage, distribution and marketing of various POL products. The company's current market share of 82.3% in the black oil market and 59.4% share in the white oil market, alone speak volumes about its success.
From 1999 to 2008, PSO have undergone radical changes, both internal and external and has emerged as a market leader with a long term vision. The company is the only public sector entity in Pakistan that has been competing effectively with three multinationals (shell, Caltex and Total) which are supported technically by their parent organizations.
PSO have a very organized HR department. They have developed it as their competitive advantage. They have a very large HR department, which is divided into following sub departments.
Training and development
Recruitment and placement
Salary administration
HR board for succession planning
Employee relation
Talent management
RECRUITMENT AND PLACEMENT SELECTION PRACTICES
Quality candidate is very important for all the organizations. A best candidate is the gem for an organization and where ever he is he will be taken by head hunters. The best candidate is the one who have Knowledge, Skills and Abilities for the job.
Recruitment is very expensive. Its cost goes up to millions. Hence a good candidate is a fortune for the company and the wrong selection can cost millions to the company.
RECRUITMENT AT PSO
Before recruitment for any post PSO checks if there is any replacement or not. They always prefer there current employees for important managerial jobs. If there is no replacement PSO checks the approved strength of department. It always takes fresh intake of candidates. The candidates are interviewed. PSO takes preview based interviews. The candidates are asked questions which are related to their CV and some other regular structured questions.
PLACEMENT AT PSO
The competencies of the candidates are matched with the required standards. A trained panel interviews the call backs. Behavioral based and job based interviews are taken. The selected candidates are then given formal appointment letter. He is made to sign the joining agreement. He is kept on probation period for 1 year after which he is given a permanent job. During this probation period he is trained for the job.
PSO have outsourced the selections tests to IBA. IBA makes the test papers. It's kind of an aptitude test. It includes arithmetic, English and general knowledge necessarily. These tests are checked by IBA as well and the results are given to PSO. They then select the candidates.
These days government has frozen the external recruitment so PSO is doing job rotation and job enrichment for the posts. PSO is taking the advantage of this and is reengineering the HR department. They have planned to do the job evaluation of every job in the upcoming time. The top positions have already been evaluated.
SUCCESSION PLANNING
The PSO have a team called "Talent management". This team has the 3 main PSO's business units heads in it.
HR and services
Finance information and technology
Ones with Direct reporting to MD ( SECP )
This team makes decisions for the succession planning. Training orders are given by them as well. They decide who they plan to retain and promote to major jobs.
TRAINING AND DEVELOPMENT
Training and development increase the knowledge and skills of employees. It increases the quality of work life. This progress train and prepare new workers to perform and achieve its goals. It can increase the skill of decision making and problem solving. Organizations gain synergy effect through training and development. Training and development makes employees more cost effective and task oriented.
TRAINING AND DEVELOPMENT AT PSO
The training and development department is playing an important role in training and development of their employees to be at competitive edge and develops its potential employee to enrich their knowledge.PSO also wants to enhance their skills by training them with business related courses available in the corporate sector.
At PSO certain types of training are left up to the employee. The employee assesses his strengths and weaknesses and goes for the required training. For example if he thinks he can't manage time then he will go for the training for time management. A training calendar is given and employees choose which areas they need to improve and go for that training. Training related to business has to be taken by all the employees who are concerned with it.
HOW TRAINING STARTS
At PSO Training usually starts from orientation programs to management training .PSO spends millions of rupees to enhance the skills of its management and Non-management employee's through out on the job, off job, and coaching program.
OFF THE JOB TRAINING:
People from different companies of the same industry go the institution for training .PSO also sends their staff for this training. The employees are also sent overseas for technical training.
ON THE JOB TRAINING:
This training is only given to PSO employees. These training sessions are conducted in the PSO house. Some are compulsory for all the employees like training related to health and safety etc and others are optional for example training on leadership, time management etc.
COACHING PROGRAMS:
Training and development also arrange seminars and workshops for their employee. The main purpose of this is to create awareness. Different coaching's are for different levels of job. But the coaching that are regarding health safety and environment are for each and ever employee.
For finance department they arrange seminars with the ICAP. The entire employee in finance department has to complete these seminars. Their attendance is mandatory and if they don't attend these seminars then they have to give some penalty.
ASSESMENT AND TRAINING NEED
Through the performance appraisal, employee's weaknesses and strengths are assumed and formal training is given to them to capitalize their skills and the training period varies from individual to individual.
At PSO employees are motivated through job rotation so the 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.
MAJOR FOCUS OF TRAINING
health and safety environment
computer training for integrated resource planning
technical and operational focused inputs
management development
leadership
presentation skills
computer based finance
human resource management
team building
labor and corporate laws
supply chain management
COMPENSATION AND BENEFITS
Compensation and benefit strategies are ways that organizations can use pay and benefits to recognize and reward employees' contributions to the organization's success.
Some examples are wage and salary administration, incentive pay, insurance, vacation leave administration, retirement plans, profit sharing, and stock plans. In order to gain a better understanding of these programs and how they impact organizations, a comprehensive look at compensation methods and benefit programs is necessary.
A company has many options when it comes to compensation methods. Compensation not only affects the company, but also the employee and future employees. Some compensation packages that a company offers are required by law and others are a benefit to employees.
In addition to compensation and pay, one of the biggest compensation packages a company can offer is employee benefits. Employee benefits are compensation in forms other than cash.
Employee benefits include, but are not limited to, medical insurance, dental insurance, and vision insurance, time off for illness, paid time off, retirement plans, childcare, and tuition reimbursement. Employee benefits not only help with family and personal needs, they also help retain and motivate employees. Furthermore, strong benefit packages can attract new employees that could be beneficial in the company's future success.
CREATING AN ATTRACTIVE COMPENSATION AND BENEFITS PACKAGE
In the past several years, because of hiring freezes and a larger supply of accounting candidates, PSO did not have to raise salaries much to recruit and retain top talent. Now that the economy and job market are gaining steam, however, PSO is once again assessing their compensation and benefits packages more frequently to avoid losing current and prospective employees to other opportunities.
An effective employee incentive program is mandatory for every business in these days of high attrition rates and a serious dearth of talent. Companies spend sizable sums on their retention strategies, which may focus on a combination of ways to inculcate loyalty among employees - compensation, training and career growth being a few.
COMPENSATIONS AND BENEFITS AT PSO
PSO offers competitive starting salaries and bonuses
PENSIONS AND GRATUITY:
The company approved and fund pension scheme for both management and non management employees. The scheme provides pension based on the employees last drawn salaries. Pension are payable for life. The company also operates unfunded gratuity scheme for all its employees.
MEDICAL:
The company also provides post retirement medical benefits to its employees. PSO's 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-liter award ceremony was held at the PSO house. These awards were given to the dealers who crossed the million-liter figure in selling the products of the company. The award had been initiated to recognize and encourage promoting the business and services to their customer.
HAJ-DRAW 2002:
The hajj draw was also held at the PSO house auditorium. Seventeen members were sent to perform hajj.
EMPLOYEE RELATION
PSO has a balanced relation with employees because they treat all employees as per policy. Employee relation is based on Employees' Performance. Employees with good characteristics, efficient employees, deserving and hard working employees who give more output and good performance always enjoy good and healthy relation, benefits and rewards with PSO. On the other side inefficient employees, inactive and with bad characteristics and qualities have to suffer with problems, unhealthy and bad relation with PSO. Policy plays a key role.
There has to be a consistent policies, proper policies and strong policies.
Policies should be a cosmetic documents
Policies should not be taken as stationary document
It has to be dynamic, as to be constantly reviewed in terms of what is happening in market place and what modern day's requirements are.
Forcefully implement all policies.
PSO always develop smooth relationships with employees by giving them equal opportunities and benefits.
Always advice managers on ER issues.
Negotiate with unions.
JUSTICE AND FAIR TREATMENT
PSO have a diverse work force, in terms of gender, personality, qualities, and communication skills. M Rana Idrees, Senior Executive at PSO said "...But we have to face discrimination factor because it's natural. We can't let it go. It's natural! But the point is that how can we overcome this problem? So the solution to overcome this disease is that…" It is as follows:
Employees should focus on performance, do their best and give more output.
Put the objectivity element in the work instead of subject.
To follow all the companies policies.
Then the management will not be able to discriminate employees.
PSO treat equally to all employees. Deserving candidates get
Promotion
Benefits
Recognition
Opportunities
Power of Decision making
Performance based rewards are offered to all employees on a yearly basis. Increases in salaries of deserving candidates are given. PSO give equal opportunity to all employees to do justice by proving yourself. "The deserving candidates" gets all the "deserving things" so that's a fair treatment, which PSO always give to all employees.
EMPLOYEE HEALTH AND SAFETY
PSO always say that ""WE CARE FOR EMPLOYEES' HEALTH AND SAFETY" and that is our 1st priority which we start from the working environment". At PSO it is ensured that they provide the following to their employees
healthy working environment
Employees' privacy rights.
Security of employees record
Work place safety
FOOD FACILITY:
In words of PSO senior executive, M Rana Idrees, "It's our priority to ensure the employees are in good shape and health. To physically show that "we care", we have in-house food services with subsidized meals in a cafeteria that can cater all the employees stationed at PSO house."
GYMNASIUM FACILITY:
Employees can enjoy gymnasium facility right in PSO's corporate vicinity, a convenience of walking form your work station to a private gym for a revitalizing workout.
PSO CLUB:
It provides assistance to employees for their mental and physical health as well as for their social activities. Sports and recreational activities are organized through this forum, where employees and their families are encouraged to participate.
SICK LEAVE FACILITY:
Recent Example:
A new employee of PSO met an accident when he was coming to work and broke his leg. PSO bearded all his hospital expenses plus gave him a sick leave rather than firing him. This shows that they care.
CONCLUSION
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