Pakistan State Oil Pakistan Petroleum Limited

Pakistan State Oil Pakistan Petroleum Limited

 COMPARATIVE ANALYSIS

RECRUITMENT & SELECTION

OF:

PAKISTAN STATE OIL

PPL

Pakistan State Oil Pakistan Petroleum Limited

 COMPARATIVE ANALYSIS

TRAINING & DEVELOPMENT

OF:

PAKISTAN STATE OIL

PPL

Pakistan State Oil Pakistan Petroleum Limited

Pakistan State Oil Pakistan Petroleum Limited
 INTRODUCTION TO THE COMPANY

When it comes to fuel, PSO (Pakistan State Oil) is a familiar name known to
every consumer and potential consumer of the petroleum industry. But the
PSO’s product line is not limited to fuel alone; in fact it has a distinct level.

Being the largest petroleum marketing company, PSO has the proud
privilege of serving many prestigious, large size projects and industrial
establishments falling in private and public sector in Pakistan.

In the field of refined petroleum products, LPG, chemical and lubricating

oil, PSO is the largest storage, distributing and marketing company of
Pakistan. it is also the largest Pakistani enterprise having an annual turnover
of more than Rs. 18.72 bn for approximately Rs. 54 million per day. In the
petroleum sector the market share of PSO is 76% while Shell, Caltex and
other petroleum companies shares the rest.

Pakistan State Oil Pakistan Petroleum Limited

 COMPANY PROFILE

Date of Establishment
Jan 1 1974

Federal government took over management of PNO (Pakistan National Oil)

and DPL (Daw Petroleum Limited) under marketing petroleum products
(federal controlled) at 1974.

Date of Incorporation
June 3 1974

The government incorporated “petroleum storage development corporation”

(PSDC)

Date of Renaming
Aug 23 1976

The government decided to change the name of PSDC to State Oil Company
Limited (SOCL).

Purchase Decision
Sept 15 1976

The government purchased ESSO undertaking and vest the same in SOCL.

Merger
Dec 13 1976

The government merged PNO and POCL into SOCL and named it Pakistan
State Oil Limited.

Date of Operation
Dec 30 onwards

Pakistan State Oil Company from Dec 30 onwards has operated under this
name slowly and gradually penetrated the market eventually becoming the
market leader in petroleum industry.

Pakistan State Oil Pakistan Petroleum Limited

 VISION STATEMENT

“To excel in delivering value to customers as an innovative and dynamic

energy company that gets to the future first”

MISSION STATEMENT

We are committed to leadership in 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 recognize 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 earning in real term.

• Highly ethical, safe, environment friendly and socially responsible

business practices.
Pakistan State Oil Pakistan Petroleum Limited
 ORGANIZATIONAL CHART

Managing
Director

Executive Executive
Director (1) Director (2)

3 GMs Marketing 2 GMs Finance GM Training & GM Logistics

Development

Retails Industrial Brand Audit Shares

Consumer Mgmt

Senior Mangers

Managers

Senior Executives

Executives

Senior Officers

Officers

Pakistan State Oil Pakistan Petroleum Limited

 HUMAN RESOURCE DEPARTMENT
Pakistan State Oil Limited has a Human Resource Department which is
considered to be a back bone of the whole organization. Ever department has
to go through the procedures set by the HR department.

PSO’s HR department has divided into two parts:

1. Personnel
2. Industrial Relations

PSO’s personnel department carries on the following responsibilities and

processes

 Recruitment
 Selection
 Promotion
 Compensation
 Resignation
 Disciplinary actions
 Transfers
 Terminations
 Reference letters
 Checks
 Custodian of information
 Planning implementation

Pakistan State Oil Pakistan Petroleum Limited

The industrial relations department deals with the following processes and
responsibilities.

 Non-Management staff
 Contractors
 Union
 Drivers
 Out sought

There are numbers of activities human resource department performs, which

we have discussed earlier. But we will be concentrating on the following
activities:

 Recruitment
 Selection
 Training and Development

We will be discussing the following activities in detail as how does the

human resource department of Pakistan State Oil Limited implement these
processes.

Pakistan State Oil Pakistan Petroleum Limited

 RECRUITMENT

The personnel department of PSO firstly clarified the facts regarding their
recruiting procedures. For this purpose the seniors give a brief introduction
of the recruiting policies were clearly mentioned. Three aspects that are
related to PSO’s recruiting procedure, includes

 The HR department as whole,

 The concerned department,
 The Publics Relations department, management

The procedure starts when the concerned department informs the HR

department that it requires a recruit. Now, it is the beauty of the HR to
decide whether the recruit can be found from within the organization by a
transfer or a promotion or external recruit are to be hired. The role of the
publics relations department in this process is that they place an
advertisement in the classified sections of the leading newspapers of the
country, which is, if an external recruit is to be considered for the vacancy.

Pakistan State Oil Pakistan Petroleum Limited

 SELECTION

After the process of recruitment, comes the process of selection. In this

process those applicants are identified to suit the best for the required job.
The human resource department of PSO performs the following steps.
 Step 1: Receiving applications
 Step 2: Screening of applications according to the following criteria’s
o Fresh graduates or masters (depending upon the requirement of
a particular job).
o Applicants who have not applied before.
o The applicants should hold a degree from a UGC recognized
university or college
 Step 3: Selected applicants employment tests are conducted
 Step 4: 1st interview of the test passed applicants
 Step 5: References and background checks
 Step 6: The results are send to the selection committee that decides,
whether to keep the selected applicants or not.
 Step 7: If the committee approves the applicants than a medical test is
conducted.
 Step 8: Final interview
 Step 9: Job offer
 Step 10: Sign different papers for formalities.
 Step 11: person joins in as a Trainee, for a period of two years.

Pakistan State Oil Pakistan Petroleum Limited

Pakistan State Oil Pakistan Petroleum Limited
 TRAINING AND DEVELOPMENT

Pakistan State Oil Limited, human resource department encourages

employees to take training for their existent job requirements and for the
future needs. Training in PSO is a never-ending cycle; throughout the year
there are training programs, in which the employees participate. The
department makes arrangement for both management course and
Information Technology courses in order to keep pace with the competitive
market. Before the existence of this department training was only given to
senior employees. Training needs are identified through the following ways:

 Training needs analysis

 Performance appraisal
 Management request
 Questionnaires
 Voluntarily

Budget
After assessment it’s the duty of training department to manage courses in the given
budget. The budget is allocated to the department at the begging of the year.

Training Resource Assessment

This includes short listing of the institutes available for training. It helps the department
to find best quality institutes at reasonable rates by comparing institutes with each other.

Training Calendar

This is a very important stage, which includes schedule of training and it is

usually spread through the inter office memorandum. It includes a detailed
timetable of courses offered and it is revised every year.

Pakistan State Oil Pakistan Petroleum Limited

Presentation & Revision

This stage includes a formal presentation to the upper management for the
final decision. This presentation includes all the gathered information about
the courses, budget, resources and schedule. Management can always ask
training department to revise the spiral if they find any clash.

Implementation

Implementation will take place in this step. Finally training department will
send employees for the desired training courses.

Evaluation
After training, responses of the trained employees are recorded on the
evolution sheet. This help to determine the success of the training course.
Trained employees may be required to sit in a test or interview, which help
company to evaluate their learning.

Training Resources

 In house training sessions

 Sessions conducted by outside agencies
 Training abroad

Training helps the employees to enhance their skills and performance and to
meet the ever-growing technology. Like for e.g. PSO has established a
training program with NCR for training all the employees for I.T program.
Trainings techniques used at PSO are following:

 In-House (PSO House)

 Off-Campus of PSO House
 Out of Station
 Job Rotations
 Counseling sessions
 Lectures/presentation

Pakistan State Oil Pakistan Petroleum Limited

  Education Refund Policy

Pakistan State Oil Pakistan Petroleum Limited

Pakistan State Oil Pakistan Petroleum Limited
 Vision Statement
Our vision is to maintain PPL’s position as the premier producer of
hydro carbons in the country and at the same time make a
strategic transition to become an internal company exploiting oil
and gas resources beyond the borders of Pakistan, resulting in
value addition to share holders investment and to there nation as
a whole.

Mission Statement
Our mission is to optimize the hydro carbon production and
pursue an aggressive exploration program in the most efficient
manner in the local as well as international horizon through the
team of professionals utilizing the latest developments in the
exploration and production technology and maintaining the
highest standards of health, safety and environment protection.

Company Profile
PPL, the oldest and largest exploration and production company
in the country was incorporated on the 5th June 1950 subsequent
to the promulgation of the Pakistan petroleum production rules,
1949 with the main objective of conducting exploration,
development and production of Pakistan’s oil and natural gas
resources. PPL inherited all the asset and liabilities of Burma Oil
Company (Pakistan’s concessions) limited and commenced
business on the 1st July 1952.

The company’s hold operatorship of major oil and gas fields

including Sui, Kandhkod and Adhi, while its non operated portfolio
includes interest in the Qadirpur, Miano, Sawan and Tal fields.
The company’s exploration portfolio includes operated and non
operated joint ventures intend onshore blocks and two offshore
blocks.

The company has a staff of about 2051 employees with about

414 qualified technical staff in the fields of engineering, computer
and earth sciences. PPL has well established IT department and
all staff in the head offices has access to computers and re
interconnected through local area network. The wide area
Pakistan State Oil Pakistan Petroleum Limited
network has also been established connecting PPL’s three major
producing fields and regional office in Islamabad with the head
office at Karachi. The company has embarked on a process pre
engineering and information system management project to
optimize the business process and work flow. This includes
procurement of Industry specific enterprise resource planning
solution known as SAP (System application Package).

Pakistan State Oil Pakistan Petroleum Limited

PPL organization structure:

Pakistan Petroleum Limited

Managing Director

General Manager General Manager General Manager

Marketing Human Resource Finance

Senior Managers Senior

Executives

Operating Managers Executives

First Line Managers

Non Managerial
Staff

Pakistan State Oil Pakistan Petroleum Limited

 Human Resource Management

PPL is committed to create a work environment based on

transparent employer-employee relationship and endeavors
to develop a work force not only satisfied in terms of
professional development and compensation but also
committed to future development of the company.
The human resource department of PPL is subdivided into
the following four departments.
 Personnel
 Staff
 Employee Relation
 Medical and services
All of the above departments are engaged in different
function. Personal section is engaged in recruitment and
selection of employees. Staff section is concerned with the
compensation system, training and development of the
employees. Employee relation is engaged in performance
management and medical and services section is related
with the health issues of the employees.

The main objectives of the Human Resources Department

are:
 Advising management on human resource policies
required to ensure that organization has a highly
motivated and high performing workforce, has a highly
motivated and high-performing workforce, has people
equipped to cope with change and meets its legal
employment obligation.

Pakistan State Oil Pakistan Petroleum Limited

  Implementing and maintaining all necessary human
resource policies
and procedures to enable the company to achieve its
objectives.

 Assisting in the development of the company's overall

direction and
strategy, particularly with regard to human resource
implications.

 Handling crises and difficult relations situations to

ensure that they do
not get in the way of the organization achieving its
objectives.

 Providing a communication link between employees

and the company’s management.

 Acting as a custodian of organizational standards and

values in the management of human resources.

Recruitment of work
force
Recruitment is the process of finding and attracting capable
applicants for employment. The process begins when new
recruits are sought and ends when their application are
submitted. The result is a pool of applicants from which new
employees are selected.
These recruitments are done in a very systematic format

Pakistan State Oil Pakistan Petroleum Limited

that is, first of all the manager of a respective unit for which
the recruitment has to be made put a recruitment request
through a computerized form which is then instantly
communicated to the concerned authorities and the human
resource department for approval. All the information
required and the details about the personal required is
entered in the form and it becomes a matter of click of a
mouse for approval of the request for the managers and
respective action is taken by the Human Resource
Department. In both cases the recruitments for all the
positions are firstly posted internally and then externally.

PPL recruits from both internal and external channels.

Pakistan State Oil Pakistan Petroleum Limited

Internal
Channels
The first port of call when considering how to fill a
vacancy is from PPL itself which results in boosting the
motivation and moral of the employees and at the same
time PPL is able to select a personal who is good knowledge
of the company and knows the rules and regulations along
with his experience in the organization. This process is for all
but entry level positions.

Job posting Program

Human resource department become involved when job
openings are publicized to employees through job posting
programs, which inform employees about openings and
required qualification and invite qualified employees to
apply. The notifies usually are posted on company bulletin
board. Then through self nominations or recommendation of
the manager employees who are interested in the posted
openings report to the human resource department and
apply.

Pakistan State Oil Pakistan Petroleum Limited

External Recruits Channel
When job openings cannot be filled internally, the
Human Resource department looks for external potential
candidates for the job.

Write -Ins
Write-Ins are job seekers who send a application to Human
Resource department in search of a job. When ever there is
a job opening then first of all these written inquires are
sorted out and those job seekers who meet the requirement
of the job are called in. Usable applications are kept in an
active file until a suitable opening occurs or until an
application is too old to be considered valid, usually for four
month.

Advertising
If human resource department cannot find a suitable
candidate from write-ins then advertising is one form of
recruitment which is opted. A common way of advertising is
through newspapers. Advertisement is normally given to fill
the senior posts or for the trainee engineers and other
management staff. The ad describes the job duties, outline
minimum job qualification and tell the benefits.

Universities
As the company is engaged in the exploration, development
and production of oil and gas its source of its technical
human resources is the engineering universities in Pakistan

Pakistan State Oil Pakistan Petroleum Limited

therefore, it has regular contact with engineering
Universities like NED, NUST, Mehran and GIKI which helps in
providing a flow of potential employees. In this way the
company recruits those people who can then easily be
trained and be of most use to PPL.

Internship Programs
PPL has always welcomed internees from different institutes,
the HR department selects internees just by evaluating the
resume and verbal communication with the institute to
which the student belongs to.
PPL normally takes internees during the summer for
duration of 6 weeks when there is a very large pool to select
from. During the internship the internee is given different
tasks to do on his own and proper guidance is provided by
the concerned employees when ever needed. Through this
program PPL wisely creates a record of the performance of
each internee through feedback from the managers and
conceders them first before placing an advertisement in the
newspaper for recruitment.

Competitors

PPL has only one major competitor in Pakistan which is

British Petroleum limited as far as the human resources are
concerned and unfortunately PPL has been very unsuccessful
in recruiting personals from BPL because BPL provides a very
high pay scale and benefits to its employees and keeps them
satisfied all the time.

Pakistan State Oil Pakistan Petroleum Limited

 Selection Process of PPL
The company selection process helps in hiring competent
and qualified individuals to fill staffing needs. A particular
department finds out, once an opening the HR department
then quickly matches the position requirements to qualified
associates by using Human Resource Information Systems
(HRIS). For a proper match the company follows this
selection process:

1. Telephone Interview
The telephone interview is the first contact with
the applicant. The company’s trained staff uses this
opportunity to obtain specific information about the
applicant’s knowledge, skills and abilities. PPL also use this
time to educate the applicant about the company’s interview
process.

2. Application
All applicants are required to complete an
employment application containing past work history,
skills, interest and qualification.

3. Personal Interview
An extensive structured based interview
between the applicant and HR official enables the HR
department to identify qualification, personal attributes
and career goals. The interview gives the opportunity to
establish a solid employer-employee relation, which is
vital for providing quality-focused, productive associates.

4. Evaluation Process
PPL’s selection process involves measuring
the skill level of applicants. Testing and evaluation is a
solution process, which helps in hiring the most talented,
intelligent and motivated candidates for the company.

Pakistan State Oil Pakistan Petroleum Limited

 Candidates, internal or external are evaluated and tested
on all of today’s leading software packages. Apart from
software packages, the interviewer is also required to fill
an assessment form soon after the interview is over.

Pakistan State Oil Pakistan Petroleum Limited

 5. Pre-Employment Screening
The following pre-employment screening
techniques are conducted to ensure the most accurate
and up to date information available.

• Employment Verification – HR department obtains

references on each applicant before their initial
assignment. All associates past employers will be
contacted to verify dates of employment,
position/title, reason for leaving and eligibility for
rehire.
• Education Verification – The HR, verifies educational
and professional certification when required for
specific positions. Search results include the
verification of dates, degrees, and or certificates
awarded.
• Medical Screen – The company conducts medical
tests. Usually, only the blood test.
• Credit Report- The HR department provides a full
credit report to include information on all public
filings.

6. Oriental Interview
Upon completion of the interview and pre-
employment screening process, new associates are
introduced to the company policies and procedures. Name
given to Realistic Job Previews, where the candidates are
actually taken to the work environment.

7. Quality Assurance
The aim of any Hr department is to provide
the company with the best possible recruit to select. The
department’s quality assurance is to ensure complete
satisfaction and encourage two-way communication.
Quality assurance is achieved through status calls,
Pakistan State Oil Pakistan Petroleum Limited
 confirmation calls, first day calls, and weekly progress
calls, etc.

Pakistan State Oil Pakistan Petroleum Limited

 Training and Development

Training is the planned process to modify attitude,

knowledge or skill behavior through learning experience to
achieve effective performance in an activity or range of
activities. Its purpose in the work situation is to develop the
abilities of the individual sand to satisfy the current and
future human needs of the company. Effective training is a
crucial element of effective performance.
Whereas training is concerned with equipping staff to carry
out their responsibilities to the required standard in the
present job, development is concerned with giving
individuals the necessary knowledge, skills and experience
to enable them to undertake greater and more demanding
roles and responsibilities. The main reason for undertaking
training is for the organization is to ensure that it is
achieving the best possible return from its investment in its
most important resource.
At PPL training and development of its employees plays a
very crucial roll in the functioning of the organization.
Because the petroleum sector requires very highly trained
technical staff who can face any situation and use the latest
equipment available therefore it becomes necessary for
them to continuously monitor the technological
advancements made in the world and prepare there work
force to make fullest use of it.

Pakistan State Oil Pakistan Petroleum Limited

literate, this change was not made very easily PPL had
planned for this a long time a go and slowly started bringing
in this change by implementing its state of the art
technology, SAP which is the best available Enterprise
Resource Planning Package in the market.

One more factor which leads to continuous

development of their employees is that PPL's plan to
automate virtually every process and start doing things
systematically in which PPL has been very successful. Every
employee in the company now has his personal computer
and are computer

Pakistan State Oil Pakistan Petroleum Limited

 SAP Training Program

As mentioned earlier that PPL is now using state of the art

enterprise resource planning software know as SAP for
totally computerizing every thing from purchase to Human
Resource Management. The implementation of this software
has been going on for the past 2 - 3 years and now it is in its
final stages. To implement a totally computerized solution
requires proper training of the employees to use the system
in an effective manner therefore due to the large number of
employees a small SAP training program was started with in
PPL through which the officials were trained on how to use
the SAP software for their respective departments.

Technical Staff
In the beginning all the technical staff is hired as trainee
employees for a minimum period of 2 years during which the
employees are given on job training and get acquainted with
the work settings. This is time period of two years is very
crucial for the employee during which he or she is very
closely looked after and evaluated. After proper checks the
employee is made permanent.
Similarly out in the field the field engineers are initially hired
as trainee employees and are given on field on job training
concerning the drilling and exploration of oil and gas.
Employees working in the field are given fire extinguishing
training and how to manage emergencies.

Pakistan State Oil Pakistan Petroleum Limited

Other Training and Development Programs
The staff members are regularly sent on short courses,
seminars and workshops held both in-house as well as at
reputed training institutions of the country.

 LUMS
 OGTR
 Fauji Fertilizer

In addition senior staff members also attend overseas

training programs at prestigious training institute.

Training Budget
PPL assigns an annual training and development budget
for its employees under which employees are selected on
performance bases and recommendation by the manager
of the respective unit.
For example Mr. Ahmed was sent for ABAP training, which
is a programming language for SAP. This is a 5 week
course and costs 1.5 million which is a proof that PPL puts
its best efforts in training employees and gives highest
priorities to it.

Pakistan State Oil Pakistan Petroleum Limited

 Comparison between the PSO and PPL
Recruitment and Selection:

Both the companies almost follow the same general pattern of recruitment.
In PSO first, the job opening is identified by the operating managers. Then
they’ll inform to the HR manager that they are in need of some recruits for
that particular job opening. On the other hand in PPL job openings are
identified by the operating managers and then they will inform the HR
managers about it then HR manager checks the validity of the job openings.
If they are satisfied they start finding the recruits.

PSO gives a lot of importance in finding recruits from within the

organization, for that they have concentrated a lot on job posting programs
and in the similar manner PPL also wants to have recruits within the
organization and they also initiate their current employees who are fit for the
particular job to apply as an applicant.

In PSO there are certain jobs for which they need fresh graduates. The
reason why it be, new job category and cost effectiveness for the company
while in PPL they look for fresh graduate only for the first line managers. If
job openings are not filled internally PPL finds out external potential
candidates through advertising, internship programs and educational
institutions. They also keep a sharp eye on potential employees of their
competitors.

After the recruiting process is well done, the HR department holds the
responsibilities to select the qualified applicants. For that screening process
is conducted at both the organization because there have been always large
numbers of applicants due to their extremely good reputation and goodwill.
After screening the pool of applicants a general test is conducted (PSO gives
more emphasis on their test).

All the other processes are almost similar, both conduct the interview and
references and background check. In PSO there is a selection committee in
which the operating manager of the respective department is involved, and is
the duty of that person to evaluate the needed skill factors. Whereas in PPL a
written document is presented to the HR manager in which the skill factors
are written very clearly, the HR manager will himself evaluate the candidate.

Pakistan State Oil Pakistan Petroleum Limited

Final interview is taken by the immediate supervisor in both the companies
and the supervisor takes the hiring decision.

The to be employees are required to sign a bonds paper before the official
hiring decision is made by the supervisor.

Training & Development

Training and Development is a very important process in both the

organizations. In PSO training is a never ending cycle through out the year,
there are training programs in which employees participate. Applicants are
first employed as a trainee for two years and then they work as a
professional worker.
In PPL training is concerned with equipping staff to carry out their
responsibilities to the required standard in the present job, where as PSO
helps the employees to enhance their skills and performance and to meet the
ever growing technology.
PSO has recently established a training program with NCR for training the
employees for the IT program where as PPL offer SAP training program for
totally computerizing every thing from purchase to human resource
department. The staff members are regularly sent on short courses, seminars
and workshops. They also sent their employees to well reputed institution of
the country such as LUMS, OGTR, Fauji Fertilizers.

Pakistan State Oil Pakistan Petroleum Limited