Orient Energy Systems HRM Final Report (2)
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Orient Energy Systems IMPLEMENTATION OF HUMAN RESOURCE POLICIES
KHALID RAFIQ 2008 College of Business Management, IoBM
LETTER OF AUTHORIZATION December 13, 2008 Khalid Rafiq
Course Instructor – Human Resource Management CBM, Institute of Business Management Karachi SUBJECT:
Human Resource Management Report on Orient Energy Systems
Dear Sir:
We hereby submit this project report on Orient Energy Systems that you have authorized us to prepare, in fulfillment of the requirement for the Human Resource Management course. We are submitting it for your perusal.
This report outlines the overall operations of the organization, its business activities, processes, the four management functions i.e. Planning, Organizing, Leading & Controlling and based on all this, the Human Resour Resource ce practi practices ces adopte adopted d by the the organi organizat zation ion at variou variouss levels levels of organi organizat zation ional al and indivi individua duall classifications.
Preparing this report has been a rewarding and enlightening experience. During the preparation of this report, we were able to correlate the theoretical knowledge you disseminated in the class with the practical aspects. The process of preparing this report has enhanced our learning and added to our knowledge and abilities.
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If you have any queries, we are available at any time on the following numbers. We would be more than happy to discuss any issues that you may have.
Yours truly,
s m et s y S y gr e n E
Zafar Iqbal
0333-2149306
Shehzad M. Yunus 0300-2868040
Ali Madani
0333-3715956
Fahad Malik
Muhammad
0334-3998004
Iqbal 0301-2877889
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ACKNOWLEDGEMENT We would like to express our special gratitude to our mentor, instructor and friend, Khalid Rafiq, for his valuable guidance in management and organizational behavior practices owing to his immense expertise and related experience in the practical field. We would also like to extend our thanks and appreciation towards the following people; without their help we would have not been able to compile this report:
Mr. Muhammad Saeed
Managing Director
Mr. Azhar Iqbal
Deputy Managing Director
Mr. Anwar-Ul-Hasan
Director, Sales
Mr. Naseem Ahmed
Director, Technical
Mr. Javed Iqbal
Director, Product Support
Mr. Shahid Anwar
General Manager, Sales
Mr. Wasi-Ul-Hasan
General Manager, Operations
Mr. M. Waseem
General Manager, Product Support
Mr. Naseem Alam
General Manager, Engineering
Mr. M. Mairaj Khan
Deputy Manager, Commercial
Mr. M. Shamsheer
Manager, IT
Mr. M. Asif Jalil
Executive, HR
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TABLE OF CONTENTS TABLE OF CONTENTS....... ............... ................ ............... ............... ................ ............... ............... ................ ................ ............... ............. .......... ........ .... 3 ORIENT ENERGY SYSTEMS....... ............... ............... ............... ................ ................ ............... ............... ................ ............. ......... ........ ........ ........ .... 6 INTRODUCTION INTRODUCTI ON....... ............... ............... ............... ................ ................ ............... ............... .............. .......... ........ ........ ........ ........ ........ ...... .. 6 PRIMARY BUSINESS....... ............... ................ ................ ............... ............... ................ ............... .............. ........... ........ ........ ........ ....... ... 7
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CURRENT MARKET....... ............... ................ ............... ............... ................ ............... ............... ................ ................ ............... ............ ..... 7 SALES HISTORY ........ ................ ............... ............... ................ ................ ............... ............... ................ .............. .......... ........ ........ ........ ......8 SECONDARY BUSINESS........ ................ ............... ............... ................ ............... .............. ........... ........ ........ ........ ........ ........ ........ .... 8 RENTAL....................... .................................................. ...................................................... .................................................................. ....................................... 8 DIESEL GENERATOR SETS........................... ...................................................... ...................................................... .......................................... ............... 9 CHILLERS....................... .................................................. ...................................................... ........................................................... ..................................... ..... 9 MACHINES........................ ................................................... ...................................................... .............................................................. ................................... 9 COMPRESSORS........................... ...................................................... ...................................................... ....................................... ........................ ............... ... 9 MANAGEMENT FUNCTIONS - PLANNING....... ............... ............... ............... ................ ................ ............... .............. ........... ........ ...... ..9 MISSION STATEMENT........ ............... ............... ................ ................ ............... .............. ........... ........ ........ ........ ........ ........ ........ ....... ... 9 ANALYSIS OF MISSION STATEMENT ........ ................ ................ ............... ............... ................ ............. ......... ........ ........ ........ .... 10 VISION STATEMENT....... ............... ................ ............... ............... ................ ............... ............... ................ ............ ........ ........ ........ .... 11 CORE VALUES........ ................ ................ ............... ............... ................ ............... ............... ................ ................ ............... ............... ..........11 GOALS AND OBJECTIVES ........ ................ ................ ............... ............... ................ ............. ......... ........ ........ ........ ........ ........ ......11 STRATEGIC GOALS........ ................ ............... ............... ................ ................ ............... ............... ............. ......... ........ ........ ........ ........ ........ ...... .. 12 TACTICAL GOALS........ ................ ................ ............... ............... ................ ............... ............... ................ ................ .............. .......... ........ ........ .... 12 MBO (MANAGEMENT BY OBJECTIVES) OBJECTIVE S)....... ............... ................ ............... ............... ................ ................ ............... ........... .... 12 ORGANIZING ....... ............... ................ ............... ............... ................ ................ ............... ............... ................ ............... ............... .............. .......... ........ ....... ... 12 DEPARTMENTALIZATION DEPARTMENTA LIZATION ........ ............... ............... ................ ................ ............... ........... ........ ........ ........ ........ ........ ........ ....... ... 13 TOTAL PERSONNEL STRENGTH ........ ................ ................ ............... ............. .......... ........ ........ ........ ........ ........ ........ ...... .. 13 SPAN OF MANAGEMENT ........ ............... ............... ................ ............... ............... .............. .......... ........ ........ ........ ........ ........ ...... .. 15 STAFF GRADING ........ ............... ............... ................ ............... ............... ................ ................ .............. .......... ........ ........ ........ ........ ...... .. 15 DELEGATION ........................ ................................................... .......................................................... ........................................... ............ 16 COMMUNICATION COMMUNIC ATION TECHNIQUES ........ ................ ............... ............... ................ ................ ............... ............... ............. ..... 16 COMMUNICATION COMMUNIC ATION FLOW....... ............... ................ ................ ............... ............... ................ ............... .............. ........... ........ ........ ........ ......16 VERTICAL COMMUNIC COMMUNICATION ATION........ ................ ............... ............... ................ ............... ............... ................ ............. ......... ........ ........ .... 16 HORIZONTAL HORIZONTA L COMMUNIC COMMUNICATION ATION....... ............... ................ ............... ............... ............. ......... ........ ........ ........ ........ ........ ........ ...... .. 16 ORGANIZATIONAL ORGANIZATIO NAL STRUCTURE........ ................ ............... ............... ................ ................ ............... ............... ............... ........... ........ ........ .... 18 LEADING........................................................ ................................................................................... .............................................. ............................... ..............19 MOTIVATORS MOTIVATO RS....... ............... ................ ................ ............... ............... ................ ............... ............... ................ ............... ........... ........ ....... ... 19 ROLE MODELS........ ............... ............... ................ ............... ............... ................ ................ ............... ............... ............ ........ ........ ........ ........ ....... ... 20 TRANSACTIONAL TRANSACTIO NAL LEADERS........ ................ ............... ............... ................ ................ ............... ............... ............... ........... ........ ........ .... 20 TRANSFORMATIONAL TRANSFORMA TIONAL LEADERS........ ................ ................ ............... ............... ................ ............... .............. ........... ........ ........ ......20 MONETARY REWARDS FOR FO R EFFECTIVENESS AND EFFICIENCY EFF ICIENCY.... ....... ...... ...... ...... ...... .....21 EMPLOYEE LEARNING .......................... ..................................................... ................................................... ................................... ................. ...... 21 PERFORMANCE APPRAISAL ....... ............... ................ ................ ............... ............... ................ ............... ........... ........ ........ ........ ........ ........ ...... ..22 ORIENT ENERGY S YSTEMS IS USING 360 DEGREE FEEDBACK PROCESS AS A PERFORMANCE APPRAISAL FOR MANAGERS THAT INCLUDE EVALUATIONS FROM A WIDE RANGE OF PEOPLE WHO INTERACT WITH WITH THE THE MANAGERS. THE PROCESS INCLUDES SELF EVALUATIONS AS WELL AS EVALUATIONS FROM THE MANGER’S BOSS, SUB ORDINATES, PEERS ................................................... ...................................................... ........................................................... ................................22 AND CUSTOMERS......................... JOB ENLARGEMENT........................... ...................................................... ...................................................... ...................................................... ........................... 22 ORIENT ENERGY S YSTEMS HAS STRONG BELIEF ON ADDING CHALLENGES OR NEW RESPONSIBILITIES TO AN EMPLOYEE’S .................................................... ...................................................... ...................................................... ................................... ........22 CURRENT JOB.......................... MENTOR ........................... ...................................................... ...................................................... ...................................................... .................................. .......22
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ORIENT ENERGY S YSTEMS
HAS STRONG BELIEF ON MENTORING DUE TO ITS HIGHLY EXPERIENCED TOP MANAGEMENT
............... ............... ........... .... 22 WHICH GUIDES THE MIDDLE MANAGEMENT IN THE DIRECTION THAT HELPS THEM TO DEVELOP........
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SUCCESSION PLANNING.......................... ..................................................... ...................................................... .................................................. ....................... 22 ORIENT ENERGY S YSTEMS HAS STRONG BELIEF ON SUCCESSION PLANNING AND ITS MANAGERS HAVE CLEAR VIEW OR ................22 22 TRACKING ON THE POTENTIAL EMPLOYEES CAPABLE OF FILLING HIGHER LEVEL MANAGERIAL POSITIONS................. LEADERSHIP BEHAVIOR AND STYLE .......................... ................................................ ................................. ........... 22 OERTIME, FOOD, CONVEYANCE, CO NVEYANCE, MOBILE M OBILE AND FUEL ALLOWANCES .... ........ ....... ..... .. 22 INCENTIVES ........ ................ ................ ............... ............... ................ ............... ............... ................ ................ ............. ......... ........ ........ ...... .. 23 TRAINING........................ ................................................... ...................................................... .................................................... .................................. ......... 23 PROMOTION....................... .................................................. ........................................................................... ........................................................... ........... 23 TYPES OF PROMOTIONS OR APPRAISAL ....... ............... ................ ............... ............... ................ ................ ............ ........ .... 23 HORIZONTAL PROMOTION: ......................... .................................................... ................................................................... ........................................ 24 VERTICAL PROMOTION:.......................... ..................................................... ...................................................... ............................................ .................24 DRY PROMOTION OR RE-DESIGNATION: ........................ ................................................... ...................................................... ........................... 24 MONETARY REWARDS ........................ ................................................... ...................................................... ........................................ ................... ...... 24 CONTROLLING...................................... ................................................................. ................................................. .................................. ................... ....... 24 FEEDBACK MECHANISM....... ............... ............... ............... ................ ................ ............... ............... ................ ............... .......... ... 24 CONTROLLING MECHANISM MECHANIS M........ ............... ............... ................ ................ ............... ............... ................ ............... ........... .... 25 GOALS AS CONTROLS........ ................ ............... ............... ................ ............... ............... ................ ................ ............... ............... ............ .... 25 INTANGIBLE CONTROLS....... ............... ................ ................ ............... ............... ................ ............... ............... ................ ............... ......... .. 25 RESOURCES ........ ................ ................ ............... ............... ................ ............... ............... ................ ................ ............... ............... ................ ........... ... 25 LEAVE POLICY......................... .................................................... ...................................................... ....................................................... ............................25 STAFF MEDICAL ENTITLEMENT ........ ............... ............... ................ ................ ............... ............ ......... ........ ........ ........ ........ ........ .... 26 AUTHORITY DELEGATION ....... ............... ................ ................ ............... ............... ................ ............ ........ ........ ........ ........ ........ ........ ......26 CONTROLLING DEVIATION........ ............... ............... ................ ................ ............... ............... ................ ............... ............. .......... ....... ... 27 FEEDBACK........ ............... ............... ................ ............... ............... ................ ................ ............... ............... ................ ............ ........ ........ ........ ........ ......27 BUDGET ........................... ...................................................... ...................................................... ....................................................... ............................28 INTERNAL AUDIT ........................ ................................................... ...................................................... ............................................. ..................28 EXTERNAL AUDIT........ ............... ............... ................ ............... ............... ................ ................ ............... ............... ................ .............. .......... ......28 INTERNAL REPORTS....................... .................................................. ...................................................... ................................................... ........................ 28 SAFETY & HEALTH........ ................ ................ ............... ............... ................ ............... ............... ................ ............. ......... ........ ........ ........ ....... ... 29 QUALITY POLICY........ ................ ............... ............... ................ ................ ............... ............... ................ ............ ........ ........ ........ ........ ........ ....... ... 30 CAR POLICY & POOL VEHICLES .......................... ..................................................... ........................................... ........................... ........... 30 TRAVELLING POLICY......................... .................................................... ...................................................... ....................................................... ............................31 MIS POLICY.......................... ..................................................... ...................................................... ...................................................... ................................... ........31 CONCLUSION...................................................... ................................................................................. ....................................... ........................ ............... ...31 QUESTIONNAIRE QUESTIONNA IRE ANALYSIS ........ ................ ................ ............... ............... ............ ........ ........ ........ ........ ........ ........ ........ ...... .. 32 SECTION # 1......................... .................................................... .................................................................... ..................................................... ..............32 SECTION # 2......................... .................................................... .................................................................... ..................................................... ..............32 SECTION # 3......................... .................................................... .................................................................... ..................................................... ..............33 RECOMMENDATIONS RECOMMENDATI ONS........................................................ .............................................................................. .................................. .................. ...... 34 APPENDIX B........................ ................................................... ...................................................... .......................................... ........................... ................. ..... 36 QUESTIONNAIRE QUESTIONNA IRE........ ............... ............... ................ ............... ............... ................ ................ ............... ............... ............... ........... ...... .. 36 APPENDIX C........................... ...................................................... ...................................................... ........................................ ......................... ................ .... 36
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COMPANY PROFILE....... ............... ............... ............... ................ ................ ............... ............... ................ ............... ............... ................ ................ ........ 37
ORIENT ENERGY SYSTEMS INTRODUCTION
Orient Energy Systems is one of the Pakistan’s leading energy solution providers. Orient Energy Systems was formed by a group of highly experienced and ambitious engineers of the industry in 1996. In 1998, the company was approached by Jenbacher Energy officials who were in search for a compet competent ent organi organizat zation ion to serve serve as their their sole sole distri distribut bution ion agent agent in Pakis Pakistan tan.. After After carefu carefull
evalua evaluati tion, on, Jenbache Jenbacherr Ene Energy, rgy,
Austria selected Orient Energy Systems to
deal
with
this
great
responsibility
exclusively and dedicatedly for the sale of gas engines across Pakistan. 2003 was a very specia cial year when hen Jenbac Jenbacher her Energy Energy,, manufa manufactu cturer rerss of the world’s most advanced gas engines became part of General Electric (GE Energy) and since then the conglomerate is called GE Jenbacher . These gas engines having output range from 300 kW to 3000 kW at 1500 rpm are generally rated as Real gas engines running on natural gas
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pipeline & due to their unique capability to burn variety of gases from very lean wood gas to highly rich LPG to heavy flare gas with remarkably high efficiency to produce most viable power both in simple and co-generation modes of application. The company company has been been offeri offering ng specia specializ lized ed mainte maintenan nance ce and overha overhaul ul servic services es along along with with
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typic typical al and sophis sophistic ticate ated d repair repair skill skillss to refurb refurbish ish indust industri rial al class class recipr reciprocat ocating ing intern internal al combustion engines. Orient Energy Systems offers to maintain the generator sets during the operating life of the asset, which includes routine maintenance contracts, blanket maintenance t r
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contra contracts cts,, total total plant plant managem management ent (O&M) (O&M) contra contracts cts and overhaul overhaul servic servicee with with comple complete te monitoring through their factory trained technical managers and highly skilled service engineers. The company company employ employss more more than than 1000 qualif qualified ied & skille skilled d employ employees ees includ including ing graduat graduatee engineers, marine / associate engineers and experienced generator set operators etc., rendering their services and are ready to back up customers 24/7. Orie Orient nt Ener Energy gy Syst System emss also also main mainta tain inss a size sizeabl ablee inve invent ntor ory y of parts parts to meet meet all all sort sortss of requirements. These inventory stocks have been closely monitored and maintained through an auto automa mate ted d syst system em thro through ugh whic which h part partss speci special alis ists ts can can prec precis isel ely y fore foreca cast st shor shorta tage gess / requirements / disbursements of parts to different projects. The head office of the company is located in the prime vicinity of Korangi Industrial Area, Karachi, whereas branch offices are situated in Lahore, Islamabad, Multan and Faisalabad. The company also has a presence in Dubai, U.A.E. as well as Dhaka, Bangladesh.
PRIMARY BUSINESS
As the the best best deal dealer er of GE Jenb Jenbach acher er gas gas gener generat ator or sets sets in world world for for the the past past thre threee year yearss consecutive consecutively, ly, Orient Orient Energy Systems is engaged in pre-sales, pre-sales, sales, sales, after-sale after-saless and complete complete consultancy services during and after the sales and specially after the successful commissioning of the generator sets with its auxiliaries. Orient is involved in turnkey solution provider related to power generation. Since its inception in 1996 the company has more than 65% of o f the market share.
CURRENT MARKET 8 0 0 2/ 3 1/ 2 1
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In the present market scenario, OES competes with the following competitors in its business of gas generator sets:
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Company Allied Allied Engin Engineer eering ing & Servi Services ces Ltd Ltd Masco Energy Cummins Pakistan Siemens Pakistan Powertec Deutz
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Dealership Caterp Caterpill illar, ar, USA USA Waukesha, USA Cummins, USA Personally owned coupling facility Guascor, Spain Deutz, Germany
SALES HISTORY
Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Till July Total Units Sold Till Date
No. of Units Sold 2 14 10 28 28 121 169 115 104 41
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SECONDARY BUSINESS
Rental Orient Energy Systems deals in rental business of diesel and gas generator sets on short term and long term basis. The company partners with Rentec division of Orix Pakistan Leasing Company
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Limited, Orix Rentec is the financial partners and Orient Energy Systems is providing the operations and maintenance of the generator sets.
Diesel Generator sets Orient Energy Systems also deals in Diesel generator sets manufactured in UK and USA and assembled in Italy and Mexico. In the present market scenario, OES competes with the following competitors in its business of Diesel generator sets:
Company Allied Allied Engin Engineer eering ing & Servi Services ces Ltd Ltd S M Jaffer Cummins Pakistan Siemens Pakistan Powertec Greaves Pakistan
Dealership Caterp Caterpill illar, ar, USA USA F G Wilson Cummins, UK Personally owned coupling facility John Deere, France SDMO, France
Chillers Orient Energy Systems deals in Chillers manufactured in China.
Machines Orie Orient nt Ener Energy gy Syst System emss also also deal dealss in Eart Earth h Movi Moving ng and and mate materi rial al handl handlin ing g equi equipm pment entss manufactured in China.
Compressors Orient Energy Systems also deals in Compressors manufactured in China.
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MANAGEMENT FUNCTIONS - PLANNING
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MISSION STATEMENT
“At Orient we are striving to continue providing value to the customers by providing them the most reliable energy systems solutions, material handling, utilities and engineering solutions by means means of super superio iorr techn technol ology ogy,, dedi dedica cate ted d serv servic ices es and take take care care of our empl employ oyee eess and and stakeholders”.
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ANALYSIS OF MISSION STATEMENT In view of the course studied, the above revised mission statement possesses the following
characteristics:
1.
Customer Oriented It contains “we are striving to continue providing value to the customers” i.e. Orient is providing value added to customer and support them in achieving their goals.
2. Product Oriented Previously it was power solution provider and only supplying the gas generator sets to industrial customer but after a tremendous growth of company in last five years and also growth in power sector, company has also diversified itself in other fields and now Orient is not only providing diesel and gas fuel based Generator sets but they are also providing forklift truck and earth moving machineries for material handling solutions, Absorption chillers for air conditioning solutions, Air compressors for air solutions. They are also providing turnkey solutions like complete supply of products, its engineering design, its installation, implementation and heat recoveries, means they are the solution provider to the industry not only the power generation equipment supplier.
3. Technology Oriented Orient is the authorized distributor of GE Jenbacher gas generator sets in Pakistan and Bangladesh and this product is having patented design and state of the art fuel governing systems, extended maintenance interval and low ware and tear in its class means Orient is
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providing Superior Technology not merely the product.
4. Concern for Employees Orient is compensating its employees with remuneration and fringe benefits competitive
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with other employment opportunities and also providing them a place to contribute their knowledge, skills, time and experience for the well being of company i.e. in long term for them and ultimately providing value to customers. t
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5. Concern for Survival Oriented
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Since, company is now providing industrial solutions therefore they are generating better profits by means of value added services to customer and benefiting their customers, owners, employees and society.
6. Services Oriented Orient is providing dedicated services to their customers and they are having team of highly skilled and professional engineers. Basically, the nature of their product which is self power generation, utility, material handling and engineering solutions demands the services of competent and trained people round the clock philosophy is working on the same philosophy.
Orient endeavor to deliver the best customer experience by being responsive & effective to the changing needs of various sections of society including governmental, industrial, commercial & domestic needs in a way that benefits their customers, employees, stakeholders & society at large. In doing so, Orient will meet customer expectations of highest quality, leading technology, compet competiti itive ve pricin pricing, g, energy energy conser conservat vation ion,, custom customize ized d design designss & econom economica ically lly optimi optimized zed soluti solutions ons with with indige indigenous nous expert expertise ise.. They They believ believee in creati creating ng opportu opportunit nities ies,, utiliz utilizing ing and rewarding the constructive and creative abilities, energies & vitality of their human
VISION STATEMENT Provide economical and reliable energy solution to the industry by utilizing proven and latest concepts in engineering and technology through most advanced piece of equipment of novel 8 0 0 2/ 3 1/ 2 1
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design duly backed up by knowledge and experienced professional engineers and technicians.
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CORE VALUES Man Controls – Machine, Method, Material & Money Follow 3 A’s Approach
GOALS AND OBJECTIVES Be on the Actual place / spot
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Follow 3 S’s Spirit. Speed
Look at the Actual Object
Specialization pecialization (Simplify)
Confront the Actual Situation
Spirited
attitude
STRATEGIC GOALS •
•
Attain better grip on power industry by adding more and more values to customers and intruding new products related to power sector.
•
To increase the overall market share every year and try to maintain quality and services.
•
Diversify business.
•
Having satisfied employees to get the continuous g rowth.
TACTICAL GOALS
Keeping in view the market, Business Bu siness Buyer Behavior, Brand SWOT, objectives for year 20082009 is as under: •
To increase the market Share from 65 % to 70 % in Pakistan and overall share of Orient Energy Systems in all over the world from 13% to 15 %.
•
Pene Penetr trat atio ion n in new segm segmen ents ts like like High High Rise Rise Buil Buildi ding ng proj projec ects ts,, Bio Bio gas proj projec ects ts,, Entertainment, IPP project like IIL etc. and recreation centre.
•
To curtail, administrative overheads by 5 % in order to get the maximum profit to spend on the employees, tools and on the support of customers.
•
Work for expertise in turnkey and Heat recovery projects to improve image and vision of company.
MBO (MANAGEMENT BY OBJECTIVES)
The goals and objectives are developed by the manager and employees collaboration and the
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manager gets feedback and guides and supports the employee in reaching his/her goals with the organization goals in mind. MBO lets Orient measure measure the performance of each department vision and the performance of the individuals in the department. Departmental heads and
Orient Energy Systems has a very dynamic and progressive management structure in line with
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industry practices.
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managers monitor the goals and objectives and rely on feedback to control deviations.
ORGANIZING
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Compet Competent ent human human resour resources ces from from within within the compan company y have have fuell fuelled ed treme tremendou ndouss growth growth by excelling in functional management. In this innovative age of ever changing lifestyles, fueled by the the ramp rampant ant devel develop opme ment nt of tech techno nolo logy gy;; cust custom omer er have have been been comp compel elle led d to chang changee thei their r purchasing habits. Orient Energy Systems responds to this challenge of providing best services to customers based on convenience and in line with customer requirement. The company has a large pool of professionals in all departments which contributes to the efforts in selling, services and support. A thorough study of the organization reveals that the hierarchy is a blend of centralized and decentralized. Middle and lower level managers and officers have a medium degree of autonomy in making routine decisions and taking controlled risks. The benefits of this approach are evident from the fast and continuous growth of the organization in recent years.
DEPARTMENTALIZATION The organization has been divided into departments based on business areas:
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Gas generator sales
o
Diesel Generator Sales
o
Chiller Sales
o
Compressors Sales
o
Machinery Sales
o
Large Power project sales / Special project sales
o
Engineering / Technical
o
Parts Sales
o
Product Support Services
o
O & M Sales and Service
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TOTAL PERSONNEL STRENGTH
The total number of employees working under un der Orient Energy Systems is as follows: Sales Engineering Product Support Services
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22 33 121
Finance, HR & Administration Parts Operations & Maintenance Sales Administration Rental
77 23 525 13 275
TOTAL
1089
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SPAN OF MANAGEMENT
The span of management at OES is well established. There is not that much load on departmental heads and managers, much due to the fact that duties of the subordinates are well delegated, employees work in close proximity and the nature of the work is quite similar. Due to this, subordinates require less time and supervision from their managers. In circumstances when problems are serious and subordinates want to involve their managers or departmental heads, then they come into action and guide them to resolve the issues effectively and and effi effici cien entl tly. y. OES’ OES’ss span span of cont contro roll play playss a vita vitall role role in impr improvi oving ng effi effici cien ency cy and and effectiveness. STAFF GRADING
Every staff will be placed in applicable Grade according the designations as per following table:
Grad e
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Un skilled workers and other staff
2
Skilled workers and office staff
3
Sales rep, Supervisor, Junior Engineers & Junior Executives
4
Senior Sales rep, Senior Supervisor, Engineers & Senior Executives
5
Assistant managers & Deputy Managers L1
6
Manager L1 & Deputy Managers
7
Managers & Senior Managers AGM L1
8
Assistant General Manager & Deputy General Manager L1
9
Deputy General Manager & General Manger L1
10
General Manger
11
Directors
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Designations
DELEGATION
Orient’s employee tasks and objectives are well delegated, and most of the work is repetitive or routine in nature. This is the reason which makes the achievement of goals and objectives much easier. Managers have the authority to make decisions and the managers working directly under the heads of their respective respective departments departments provide suggestions, suggestions, which are used in final decision decision making. Each employee is responsible for carrying out his / her duties and achieving their targets. The head of the department is held accountable for any deviations from the expected results. COMMUNICATION TECHNIQUES
Most of the communication at Orient is verbal, face-to-face since employees work in close proximity with each other. Orient, however makes use of other techniques such as written, freq freque uent nt tele telepho phoni nicc conve convers rsat atio ions ns.. Commu Communi nicat catio ion n uses uses both both toptop-dow down n and bott bottom om-up -up approaches.
COMMUNICATION FLOW Communication takes place in the organization both horizontally and vertically. VERTICAL COMMUNICATION
Vertic Vertical al Commun Communica icatio tion n consis consists ts of downwa downward rd and upward upward commun communica icatio tions. ns. Orient Orient’s ’s downw downwar ard d commu communi nicat catio ion n take takess plac placee for for job job inst instru ruct ctio ions ns rela relate ted d to a spec specif ific ic task task,, explaining relationship between two or more tasks, explaining procedures and practices of the organization, feedback on individuals and is also used to encourage a sense of mission 0 0 2/ 3 1/ 2 1
and dedication of the organization. Orient’s upward communication takes place to inform about progress on current work, when seri seriou ouss prob proble lems ms aris arisee and and help help is requi require red d and for for prov provid idin ing g info inform rmat atio ion n on new developments in the banking sector.
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HORIZONTAL COMMUNICATION
a. Friendly t
b. b. Info Inform rmat atio ion n Shari Sharing ng
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c. Commu Communi nicat catio ion n Fre Freel ely y
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d. Difficulti Difficulties es and and Problems Problems of Subordinate Subordinatess e. Respons Responsibi ibilit lity y of Organiz Organizati ational onal Goals Goals f. Team Team Work Work Appr Approa oach ch
The management has formulated the rules for the communication control.
(i) Absence of proper communicat communication ion between the management management and employees help Spreading rumors not conducive to the promotion of discipline in the organization. (ii) The management must keep itself aware about the feelings of the employees in respect of its actions and policies and take timely remedial steps when it finds that some action is causing dissatisfaction among the employees. (iii) On the other hand the employees need to be properly briefed and informed informed about various management’s actions and policies to avoid creation of confusion and misunderstanding (iv) (iv)
It is, theref therefore ore,, of of fundam fundament ental al import importance ance that that all all channel channelss of of comm communi unicat cation ion between the management and the employees are constantly kept open, and properly utilized.
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ORGANIZATIONAL STRUCTURE
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LEADING
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MOTIVATORS
ROLE MODELS
The leaders are strategically placed in the organization; heads of their respective departments are transactional leaders, while the Directors are the transformational leaders TRANSACTIONAL LEADERS
GM, Sales GM, Product Support GM, Engineering GM, Operations
Mr. Shahid Anwar Mr. M. Waseem Mr. Naseem Alam Mr. Wasi Ul Hasan
TRANSFORMATIONAL LEADERS Mr. Muhammad Saeed Mr. Azhar Iqbal Mr. Anwar Ul Hasan Mr. Naseem Ahmed Mr. Javed Iqbal
Managing Director Deputy Managing Director Director, Sales Director, Technical Director, Product Support
Orient puts a strong focus on growing leaders out of the workgroups, which motivates employees to work hard. These managers prove strong role models for their subordinates, playing the part of a catalyst and motivate the subordinates to out-perform themselves. Upper management uses participative style of leadership, exhibiting their participation in every process that brings the organization forward. Upper management regularly participates during all the trade promotion activities and actively represents the organization in the wider arena. 0 0 2/ 3 1/ 2 1
Middle Middle manage managers rs in the organi organizat zation ion act as facili facilitat tators ors and liaiso liaison n personn personnel, el, workin working g as interm intermedi ediari aries es to ensure ensure smooth smooth and effect effective ive commun communica icatio tion n betwee between n upper upper and lower lower management through them. Their leadership style is therefore supportive. Lower managers are individuals and groups that work in close association with the workers and
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employees in determining their daily issues / problems, guiding them on improving themselves, motivating them to actively participate in every process of the organization and hence improving their efficiency. Their leadership style is hence a directive one. Leaders in the organization actively exercise all the powers bestowed upon them. However, this should be clearly noted out that coercive power is used very rarely (only in extremities) to
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influence the behavior of employees in reaching their goals. Powers most extensively used are legitimate , reward, referent and expert , while information powers are exercised minimally. MONETARY REWARDS FOR EFFECTIVENESS AND EFFICIENCY
Since Since OES OES uses uses an MBO MBO stru struct ctur uree of manag managem ement ent,, empl employ oyee eess who who achi achiev evee thei theirr goal goalss effectively and efficiently, their performance is acknowledged through various monetary rewards and other benefits to maintain goal commitment . Without rewards, employees would never work work except exceptiona ionall lly y well well to reach reach their their desire desired d levels levels.. These These reward rewardss play play a large large part part in motivating and constantly reminding them that effective and efficient work is rewarded.
Bonus payable to Diesel Engine Sales Engineers / Executives Generator set KVA 0-25 26-65 66-250 251-399 400-500 501-800 801-1100 >1100
Bonus 1,250 2,500 5,000 7,500 10,000 12,500 15,000 17,500
Required Gross Profit 10% 10% 10% 10% 10% 10% 10% 10%
Bonus payable to Chiller Sales Engineers, HOD’s and Application Engineers Chillers Sales Person Application Engineer HOD
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Bonus 20,000 2,500 5,000
Required Gross Profit 9% 9% 9%
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In Orient Energy Systems, rewards are distributed in relation to contribution i.e. means not only sales peopl peoplee are been been reward rewarded ed but but their their team team consis consistt of applic applicati ations ons engine engineers ers,, sales sales assist assistant ant,, sales sales administrator, project engineers and even their managers are having contribution in incentives which will provides motivation to all and they are working like a team to achieve the organizational targets and goals.
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EMPLOYEE LEARNING
Orient Energy Systems is a learning organization where employees are continuously attempting to learn new things and apply what they learn to improve product or service quality.
PERFORMANCE APPRAISAL ORIENT Energy Systems is using 360 degree feedback process as a performance appraisal for managers that include evaluations from a wide range of people who interact with the managers. The process includes self evaluations as well as evaluations from the manger’s boss, sub ordinates, peers and customers.
Job Enlargement Orient Energy Systems has strong belief on adding challenges or ne w responsibilities to an employee’s current job.
MENTOR Orient Energy Systems has strong belief on mentoring due to its highly experienced top management which guides the middle management in the direction that helps them to develop.
Succession Planning Orient Energy Systems has strong belief on succession planning and its managers have clear view or tracking on the potential p otential employees capable of filling higher level managerial
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positions. LEADERSHIP BEHAVIOR AND STYLE
The top management uses participative style of leadership. The style of management changes to
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supportive leadership style at the middle and lower management. Sometimes participative style of leadership can be seen at the lower level but seldom. t
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OERTIME, FOOD, CONVEYANCE, MOBILE AND FUEL ALLOWANCES r
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Company has system to pay overtime to the persons as per Grade entitlement. Overtime Rates will be Basic Salary per month /240 (Hrs in a month) x 2. Where an employee is required to work extra than normal working hours and time exceeds 8.30 pm or works during holidays till lunch time , the employee in addition to over time (if entitled) they will be entitled a food allowance for lunch / dinner at the rates defined in the table of allowances Grade wise. Employees (other than dispatch rider) who travel outside for official purpose and Company transport is not provided, will be entitled Conveyance Allowance INCENTIVES
Ther Theree are are ince incent ntiv ives es give given n to empl employ oyee eess for for achi achieve eveme ment nt of goals goals by effi effici cien ency cy and and effectiveness, a few are as follows:
Training Training is given to employees to enhance enh ance their skills and to help them in promotion and growth. The employees are sent to foreign training to Austria or to attend courses locally to enhance or build new shills. The training plays as a sign of promotion and growth growth and helps in motivating the employee. Appropriate training to create awareness about the discipline is how much it is valued by the management, how it is to be observed and what the company as well as the individual will gain if he observes the norms of discipline, is a rare phenomenon. Without such training the employees will hardly be tempted to observe the norms of discipline. 8 0 0 2/ 3 1/ 2 1
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Promotion The promotion is from within the organization because of this factor other employees are
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always motivated to out-perform themselves. This incentive at Orient plays a crucial role in keeping the employee motivated. TYPES OF PROMOTIONS OR APPRAISAL
The organization as per the recommendation of concerned department and the HR department consider the following modes of promotion.
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2. Vert Vertic ical al Prom Promot otio ion. n. 3. Dry Promo Promotio tion n or Re-d Re-desi esigna gnatio tion. n. Horizontal Promotion:
Promotion is made within the same category, within same department or to some other without a higher scale with only a raise in emoluments. Vertical Promotion:
Promotion is made into a higher scale or grade with a raise in total perks and emoluments, authority and increased opportunities. Promotion made from lower level management to middle level or higher level management. Dry Promotion or re-designation:
Promot Promotion ion made made withou withoutt any raise raise in total total emolum emolument entss due to some some financi financial al or other other reasons.
Monetary Rewards If goals are met effectively and efficiently a high increment is give an increment of 15% on basic salary is normal every year and when p erformance is high measured by goals and objectives the employee gets a higher increment. Higher increment always keeps the employee on his/her feet.
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CONTROLLING FEEDBACK MECHANISM
The departmental heads arrange meetings with managers on quarterly bases for taking measures
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to periodically periodically follow-up follow-up to see how effective effective services services are being provided and how better their products and people are getting day by day. Surveys, Surveys, analyses, analyses, discussion discussions, s, and appraisals appraisals resulting resulting from the above-menti above-mentioned oned feedback feedback t
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mechanism provide benchmarks by which departmental heads bring about controls against any r
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future expected deviations in services and support and product performance and procedures, by providing guideline to the managers on quarterly bases. CONTROLLING MECHANISM
Controls are a key part of management and in a fast paced business environment they help keep the employees on their feet and play a vital role in organization goal achievement. a chievement. GOALS AS CONTROLS
Quantitati Quantitative ve goals are set as controls controls in all departments. departments. These goals are closely closely monitored and there expected results are measured with their actual results. This gives a firm idea if the goals are being met or not. The goals are used as a control to measure performance. INTANGIBLE CONTROLS
Customer satisfaction is also used in certain departments like sales, parts and services and it is another important control. This control is very difficult to set, as they are not expressed in any physical or monitory sense. If the customer is satisfied they must return. RESOURCES
Resource (People and tools) and funds and are also be used as controls, what resources and funds are being allocated and what is being achieved from them. Leave Policy
All leaves leaves will be applied applied for by all all employees, employees, duly approved approved by respect respective ive
In-charge In-charge &
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deduction. Admin is maintaining the record of leaves of all employees. There is an extra point in bonus for being punctual or having less casual leaves.
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Earned /Privilege Annual Leave
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Casual Leave
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Sick Leave
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Maternity Leave
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Leave without Pay
STAFF MEDICAL ENTITLEMENT Company has following policy: •
First aid treatment for injury/sickness sustained during the course of duty is provided free of cost cost by the Company Company includin including g hospit hospitali alizat zation ion and medici medicines nes expens expenses. es. Head Head of Department should duly fill an accident report.
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Employ Employees ees covered covered under under Social Social Securi Security ty can get treatm treatment ent from from Social Social Securi Security ty Institutions.
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Only those employees are entitled to medical reimbursement with the Company has committed in writing.
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Medical bills up-to a limit of 1(one) Gross salary per Annum are reimbursed upon submission of the original bills proportionate to monthly entitlement.
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Unclaimed allowance is exhausted on year end at June 30th.
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There are no conditions attached for the reimbursement, how-ever the staff members are instructed to keep the balance intact for emergency needs.
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Comp Compan any y will will arra arrang ngee staf stafff medi medica call heal health th insu insura ranc ncee as per per disc discre reti tion on of the the management.
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AUTHORITY DELEGATION Rules regarding the delegation of powers
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•
•
from Chief Executive.
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In order to accelerate the process process of decision-making decision-making and achieve achieve maximum maximum efficiency efficiency,,
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All expenses of routine nature will be approved at Managers level. No Capital Expenditure will be incurred without the prior specific approval in writing
every Manager can further delegate authority to his subordinates within his own limits 34of
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authority authority.. Before delegatin delegating g the authority authority the Manager concerned concerned will ensure that his subordinate subordinatess possess the correct correct decision making capability capability.. He will also keep in mind that he cannot delegate to his subordinates the responsibility for the outcome of the results. •
The powers given to any Manager/Head of Department will be treated as a delegation of author authorit ity y from from his superi superior. or. Ever Every y Manag Manager er/H /Hea ead d of the Depar Departm tment ent will will be ultimately ultimately responsible for all the results in the area of work under him. He will have
a right to withdraw anyone or all the authorities of his subordinates, if he is convinced that the subordinate is not capable of making correct decisions or the subordinate is persistently misusing his powers. •
In order to enable a subordinate to make correct decision a free flow of information between superior and subordinate is very essential, the subordinate should be furnished with guidance, information and interpretation of the authority delegated to him. •
The limits of authority applicable to the superior will
automatically be applicable to his subordinate. •
Ever Every y Manag Manager er/H /Hea ead d of Depa Depart rtme ment nt will will exer exerci cise se
powers only in his own area of activity unless specifically permitted to participate in the decision concerning the other areas. •
No Manager/Head of the Department will be allowed to
make a mockery of the limitation of financial powers by purposely breaking a bigger transaction into a number of transactions in order to bring it within his level of authority. •
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If the resources (man or material) of one department are
requir required ed by another another depart department ment the prior prior approv approval al from from the head head of depart department ment is required for relocation of resources.
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CONTROLLING DEVIATION
Deviation occurs when the employee loses focus of the goals and objectives. To keep that in control, weekly meetings are held and usually the managers instantly handle such a situation to avert more deviation problem. FEEDBACK
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Feedback is also used as a control, if the managers find any deviation or information lacking they will know that something is wrong and the standard is not being met. BUDGET
The budget is set for over all year and actual progress is compared with the budget and variations are analyzed. The budget plays a vital role in understanding the variations. At the start of each year every department head prepares a budget of the amount of funds he/she needs for achieving the objectives and goals. INTERNAL AUDIT
The internal audit department plays a key role in controlling because it closely monitors the perfo performa rmance nce of the company company and also also evalua evaluates tes that the company company is follow following ing rules and regulations as per management management advice and also as per foreign principle GE Energy. The internal audit department helps to follow laws and maintain integrity among the rules and regulations specified by GE Energy and Top management. EXTERNAL AUDIT
There is yearly audit and a professional firm of Chartered Accountants does it and it verifies the working and reports directly to Top Management. Internal Reports
Internal reports are generated on quarterly, monthly and weekly basis. These reports are monito monitored red strongl strongly y by the head head of the respect respective ive departm department entss and writte written n and verbal verbal explanations are sought in case of any deviation. Monthly reports include:
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Sales Performance reports
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Expense Reports
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Since, budgets are allocated to every department for the entire fiscal year. However, the
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finance department on a monthly basis monitors expenses. Management meetings are held on a monthly basis to discuss issues regarding sales and project completion targets, future plans etc. The GMs of the departments participate in these t
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SAFETY & HEALTH It is a policy of the Company to give paramount importance to the health and safety of its employees. The Company aims to conduct its activities in such a way as to minimize any possibility of danger to health and safety of its employees or to other persons on its premises. The Company complies with the safety standards as prescribed in the Factories Act and may also set down additional standards to meet any future requirement requirement of health and safety. safety. Safety Rules, in their true spirits are been observing and adhered by all employees. The compensati compensation on on accidents/f accidents/fatal atal accidents/ accidents/hazardo hazardous us occupational occupational accidents is made in accordance with the Law. All employees are following the instructions related to following areas:
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Cleanliness
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Orderliness
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Safety Guard/Devices
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Working Process
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Safety Equipment
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Uniform
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Smoking
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Waste Material
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Operating & Safety Instructions
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Periodic Medical Checkups
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Electricity
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Containers
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Machine & Equipment
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Safety at Work Place
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Evacuation & Fire Instructions
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Accidents
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Personal Health
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Company’s Responsibility
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Mutual responsibility
QUALITY POLICY Orient has clearly defined quality policy and instructions for products to customer, so that products will be: •
As per specified quality standards.
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At competitive price.
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On-time delivery and
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Prompt after-sales service
Orient Orient has clearly defined quality policy and instructio instructions ns to develop develop human and organization organizational al resources to achieve these objectives. To maintain quality and office protocol they want all associates should be quality conscious. Therefore, everyone is required to strictly strictly follow these guidelines on quality.
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Only rubber-soled and safety safety shoes are allowed in the work shop areas. Be sure to wear appropriate shoes when working. Slippers without back strap strap are not allowed.
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Bringing in of food, drinking and eating, are allowed but only in specified time and areas.
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Do not indulge in unnecessary un necessary time wasting activities.
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Do not get involved in gossip & / or rumor spreading.
CAR POLICY & POOL VEHICLES
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Company maintained car is provided to managerial and above staff, sales personnel, as per requirement of nature of job and as per recommendation of head of department. s m et s y S y gr e n E
For business exigencies (pool Car) where such car is considered essential for performance of job assigned to department for departmental official work The Company bears expenses of insurance, motor vehicle tax, repairs and maintenance including replacement of parts on Car provided to an employee. t
Managers who have been provided with Company’s car are entitled to avail the facility of Petrol/ CNG as per approved limit. For fuel PSO or other oil supplying company monthly monthly entitlement entitlement
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cards will be provided which will be paid by the company on monthly basis. Employees should use these cards for use of fuel in company provided cards only.
Travelling Policy Company has a define policy for Travelling with return tickets, hotel stay, food allowances and daily allowances which favors the employees during travelling.
MIS Policy Company has a define MIS policy for following:
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Antivirus Policy
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Data storage on File Server Policy
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Desktop Laptop Entitlement and Replacement Policy
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Laptop Policy
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Desktop Policy:
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Desktop Laptop License Application Policy
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Domain Email ID Creation and Deletion Policy
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End-User Password Guideline Policy
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Internet & Messenger Policy
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MIS Clearance Policy
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Official Email Usage and Data retention Policy
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USB & Data Carrying Devices Policy
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Wireless LAN Connectivity Policy
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CONCLUSION A sample of 34 employees was taken randomly from various departments ranging from senior to
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Most Most of the employ employees ees confid confided ed that that the remuner remunerati ation, on, Increm Increment ent,, Promo Promotio tion, n, benefits, facilities, training opportunities and status they enjoy are fair or relatively better than those available in the market for the same work.
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The policies regarding the rights and obligations of the employees are intact but are not properly communicated to the employees which may result in negative emotions and can lead to deviant workplace behavior.
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Majority of the workforce is satisfied with the compensation and benefits offered to them by the organization, organization, their job descripti description on and
their their relationships relationships with their their
juniors, peers and superiors and overall organizational culture was also considered as satisfactory.
QUESTIONNAIRE ANALYSIS
Section # 1 Compensation, tangible/Intangible benefits
12%
0%
9% 12%
Very Dissatisfi Dissatisfied Undecided Satisfied Very Satisfied
67%
The employ employees ees in general general are satisf satisfied ied with with the compens compensati ation on and benefi benefits ts offere offered d by the organ organiz izati ation on,, 12% of the the empl employ oyee ee were were very very much much sati satisf sfie ied d with with the the orga organi niza zati tion on’s ’s compensation and benefits offerings, 67% of them were satisfied, 12% of them were neither satisfied nor dissatisfied and 9% of the surveyed workforce was somewhat dissatisfied with organization’s remuneration and benefits offerings.
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Section # 2
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Job Description / Workplace Relationships Relationships
9%
3%
6% 12%
Very Dissatisfi Dissatisfied Undecided Satisfied
70%
Very Satisfied
The employees in general are satisfied with their job d escription and workplace relationships, 9% of the employee were very much satisfied with the jobs they have been assigned and their relationships with their colleagues, 70% of them were satisfied, 12% of them were neither satisfied nor dissatisfied and 6% of the surveyed workforce was somewhat dissatisfied with their job description description and workplace workplace relationship relationshipss and 3% of the investigated investigated workforce workforce was very dissatisfied with the job description and job related relationships most of them were complaining about the work stress and job enlargement not been offered.
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Section # 3
Organizational Cultur Culture e
15%
3%
6%
9%
Ver y Diss Diss atisfie atisfie Dissatisfied Undecided Satisfied
67%
Ver y Satisfied Satisfied
Organizational culture in common is assessed as satisfactory, 15% of the employees were very much satisfied with the workplace culture, 67% of them were satisfied, 9% of them were neither satisfied nor dissatisfied and 6% of the surveyed workforce was somewhat dissatisfied with the organizational culture and 3% of the investigated workforce was very dissatisfied with the organizational culture.
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RECOMMENDATIONS
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Base Based d on our our stud study y of the the orga organi niza zati tion on,, we have have come come up with with the the foll follow owin ing g set set of recommendations: •
A need to establish a link between the incentive rewards, employee performance and company’s bottom line.
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A need to encourage every employee to participate in problem solving.
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A need to highlight the areas where OES need to improve its services and support for all Customers.
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A need to do the employee assistance programs.
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A need to add complexity and meaningfulness to person’s work.
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A need to add job rotation in order to train the individuals in various functional areas of company and help them to understand the company better and become the valuable asset for company in long term.
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A need to communicate the company policies to the company’s personnel regarding their jobs.
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A need to produce awareness in the employees so that they know why they should learn.
APPENDIX B QUESTIONNAIRE
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APPENDIX C r
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COMPANY PROFILE
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