Applications of Management Principles

Applications of Principles of ManagementPakistan State Oil

Introduction

For the past 35 years, Pakistan State Oil has been fuelling the needs of the nation. Acknowledged as the leading Public Sector Company of Pakistan, PSO has been driving the wheels of the national economy and is the first public company to pass the 1 Trillion rupee revenue mark.

History and BackgroundThe creation of Pakistan State Oil (PSO) can be traced back to the year 1974, when on January 1st; the government took over and merged Pakistan National Oil (PNO) and Dawood Petroleum Limited (DPL) as Premiere Oil Company Limited (POCL).

VisionTo excel in delivering value to customers as an innovative and energetic company that gets to the future first.

Mission

We try to provide our customer the best quality of petroleum, goods and services based on:A professionally trained, high-quality, motivated workforce The lowest-cost operationsSustained growth in earnings in real termsHighly ethical, safe, environment-friendly and socially responsible business practicesGoals:

Goodwill first priorityBusiness developmentEnabling environment for human potential to flourishBrand Recognition & Brand ImageSocial, philanthropic or community development Long term goals Enter in coal fuelOwn refinery system Decreases the cost of productivityPlansAdd value to its business Benefits for shareholders and the employees of the companyFormal framework by job tasks Branding reputation

StrategiesLowest cost operations policyMarket share with leader ShellHighest quality lubricants Unbranded lubricants OBJECTIVES OF PSOMaximize profitability Explore potential markets Expand the PSO Cards Business Develop bio-fuels

Four functionsPlanning:Both PSO and Engro are in agreement that coal is the best possible indigenous fossil fuel resource for Pakistan and has the potential to address the country's severe power shortage and bring energy security to the country. Through this project, not only will the energy chain be strengthened it will also generate extensive economic activity nationwide while developing Pakistan's human capital through the execution and operation of state-of-the-art coal mining and coal-based power generation projects. Additionally by playing a lead role in developing this national resource, both companies will be able to strengthen their financial bottom line and expand further through downstream commercial projects based on Thar coal.

Leading:Different Deputy General Managers is responsible to attain their respective tasks on scheduled time. Organizing:As PSO has a strong back up of petroleum & power engineering so the PSO will be established the power plants and Engro is providing the human resource. This contribution was set because of the specialties of the firms in their respective Industries.

Controlling:Different General Managers is and would be tracking the performance evaluation on different scales of time. Rather than that Managing Directors would be keeping an eye over the progress on different intervals of Time. Interpersonal Roles:The first level Managers are usually got in touch with Non-Managerial employees who are usually on production side and use to supervise them Rather than that different interactions with external elements also take place like Management training programs for upcoming talent.

Informational Roles: Different projects or consumers have different demands all information to satisfy the consumer needs is collected by Deputy General Managers and processed forward with the help of General Managers.E.g: if any of Investor wanted to have a brief information on the financial accounts of PSO so DGM and GM would provide him sufficient knowledge to work with.

RolesDecisional Roles:

These roles are occupied by Managing Director and Board of Director (BoD). If PSO found any opportunity to work on any project, MD and (BoD) would be taking decision whether to conduct the project or not.

RolesTechnical Skills:Training and development Manager would be training the internees twice a year. He has that much skills that he is able to conduct his job properly. Human Skills: Deputy General Managers usually provide motivational speeches or organization success stories in their respective department during working days to motivate employees towards their work tasks.Conceptual Skills:Usually Managing Director and Board of Director does not upholds the project, which was offered by many different corporates e.g: PSO Managing Director has ended up the agreement with PIA because of their increased credit amount.

SkillsOrganizational culture with 7 elements

Attention to detailEmployee Engagement Programs occurs at different intervals of time to check whether the employees are putting their full efforts in their work or not. Innovation and Risk TakingHighly supportive environment in regard of completing of work task make employee to bring up innovative ideas and risk management. StabilityThe decisions & performances stability may vary from time to time.

AggressivenessDue to same sales promotions and tasks to all sales employees made a healthy competition between the employees with a great out comes. Team Orientation:Usually almost every project or sales promotion is taking place in team. Outcome Orientation:PSO have high ethical standards and a Business 'Principles and Ethics Policy' in place. We value, encourage and inculcate corporate reforms, good governance, best business practices and an environment of continued adherence to 'Zero Tolerance', resulting in the development of our human capital and meeting all business challenges.People OrientationInteractive sessions are regularly held by the Managing Director at all levels because clear, coherent and consistent messages ensure that employees are able to integrate the inputs into their thinking

Trust on omnipotent or symbolic view

PSO believe on omnipotent viewSystem of performance and feed evaluationIndividual performance based on company goalsPerformance based rewardsGeneral environment how it affects the decision of managers.Concern about the environmentEducating the customersDecision making process Step1: Identifying a problem: According to PSO (Pakistan State Oil) the problem is for a new project a strong marketing and sales promotion is required. Step 2: Identifying decision criteria:PSO wants to promote their new project through different kinds of advertisements include print advertising, outdoor advertising, broadcast advertising, billboards advertising, and public service advertising.

Print media10Social media8Commercial advertisements6Outdoor activities4Public services2STEP 3 ALLOCATING WEIGHTS TO THE CRITERIA:

According to their project they promote their products. STEP 4 DEVELOPING ALTERNATIVES: For a new project like fuel pumps or to promote new products for instance lubricants (engine oil) PSO promoted through commercial advertisements, print media and social media.

Print mediaNewspaper Magazines booksSocial mediaFace book Twitter YouTubeCommercial advertisements30 sec ad on T.VWebsites radioSTEP 5 ANALYZING ALTERNATIVES: Here they analysis that which alternative is more profitable for a company through these advertisement ways.

Investments In Millions Total costPrint mediaNewspaper 20Magazines 10 Books 1040Social mediaFace book 10Twitter 7YouTube 12 27Commercial advertisements30 sec ad on T.V50Websites 20Radio 1585Public servicesFree education 40Aid services 13Bill boards 2578STEP 6 SELECTING AN ALTERNATIVE: The revenue PSO generated from promotion of new project and which is reasonable cost for investment that is print media and social media is obviously less expensive rather than print media but according to company they target business people, whether middle or lower class every business person read newspapers, magazines or books every day etc. STEP 7 IMPLEMENTING THE ALTERNATIVE:

We have implemented print media because it is more profitable for company in less cost to promote their project through newspaper, books or magazines etc.

STEP 8 EVALUATING DECISION EFFECTIVENESS:

After meeting a marketing campaign and after certain time period an analysis test can be done to check out that our decision making process is successful or not.

Importance of motivation which theory their implementing in the organizational

Shaukat Raza Mirza Management Excellence Award - PSO Managing Director's Performance AwardEmployee Motivation surveys High ethical standards and a Business 'Principles and Ethics Policy' PSO encourages recreational activities of workforce at all levelsMixture of X and Y theoryX theory is highly followedOrganization structure vs. mechanic structure

PSO organization structure is organic. Every level of managers have their limit of authority to take decisions. Wide span of control but depend on the department of managers whether Finance, Marketing, HR department etc. Cross functional teams take decisions. Low formalization and decentralization.

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