Kesc (iobm)

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Karachi Electrical Supply KESC Company

KARACHI ELECTRIC SUPPLY COMPANYManagement Term Report

PRESENTED BY:

Farrukh Ali Uqaili Aveenash Irfan Bhatti Muhammad Danish Mujtaba

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INTRODUCTION OF KESCThe Karachi Electric Supply Company Limited was incorporated on 13th September 1913 under the Indian Companies Act, 1882 as amended to date vide the Companies Ordinance 1984.

The Government of Pakistan took control of the Company by acquiring majority shareholding in 1952


INTRODUCTION OF KESCThe licensed area of KESC is spread over entire Karachi and its suburbs up to Dhabeji and Gharo in Sindh and over Hub, Uthal, Vindhar and Bela in Baluchistan.

The privatization of the Company has been finalized in November 2005 with the transfer of 73% shares of Government of Pakistan along with Management Control to the new owner via M/s KES Power & others.


INTRODUCTION OF KESCThe post privatization ownership structure of the Company is as follow:

Ownership Govt. of Pakistan New Investors Others

No. of Shares 3,403,763,472 9,611,964,737 151,346,774

%age of Shareholding 25.65% 73.00% 01.35% 100.00%

Total

13,167,074,983


Mission StatementTo generate, transmit and distribute electricity for the progress and prosperity of the city and of the country.

To extend our customers expectation with reliable, stable and affordable electricity. With a service to match.

To enhance the performance, health, safety and overall well being of our people and to strive to recognize their diversity and skills.


To improve our operational and financial performance, for the benefit of our employees, customers and shareholders.

Mission Statement

To make lasting social contribution to the people of Karachi.

To communicate in an open, transparent and ethical way to all our stakeholders at all times.


Vision Statement of KESC

To ensure un-interrupted power supply to the valuable customers of the Metropolis signifying a productive and constructive role of KESC in socio economic activities and revival of national economy by way of sustainable industrial growth.


CORPORATE SOCIAL RESPONSIBILITY BY KESCWhat KESC is doing to fulfill the social responsibility:

Equilibrium Welfare schemes Environment Sports Click to edit Master text styles Second level Third level

PLANNING PROCESS AT KESC PROCESS: PEOPLE INVOLVED IN PLANNING

Day-to-day planning Planning for the next one year Planning for the next five years


PLANNING PROCESS AT KESC LEVELS IN PLANNING:

Station level planning Department level planning Corporate level planning


PLANNING PROCESS AT KESC EFFECTIVENESS OF THE PLANS:

Government policies World bank funds Impediment on coal extraction


NATURE OF DECISIONS MADE AT KESC: 1. Programmed decisions. 2. Non-programmed decisions.

DECISION MAKING IN KESC


DECISION MAKING TECHNIQUES USED IN KESC: 1. Individual decision making. 2. Group decision making.

DECISION MAKING IN KESC


ENVIRONMENT OF THE ORGANIZATION1. 2.INTERNAL ENVIRONMENT EXTERNAL ENVIRONMENT


ORGANIZINGIt is the process of establishing orderly uses for all the organizational resources. Organizing for all levels in KESC is about developing organizational structures and relationships.

Developing organization structures, in turn, is about grouping of work among people for effectiveness. Click to edit Master text styles Second level Third level

ORGANIZINGDelegating at KESC is all about downloading of responsibility, authority and accountability to lower levels.

KESC is keen to develop relations with the other organizations as it is about creating conditions for co-operative efforts of people


IMPORTANCE OF ORGANIZINGOrganization is the end result of the process of organizing


ORGANIZING IN KESCTo establish organizing in KESC, the management follows following five guidelines: It promotes both material and human coordination.

FAYOLs

It formulate clear and precise decisions. Duties are defined clearly.

The management edit Master text styles Click to promotes discipline. For that purpose, sanctions against Second level Third level faults and errors are applied.

DEPARTMENTALIZATIONThe seven main departments of KESC are listed below:

Generation Department Grid Stations & Transmission Lines Distribution Department Click to edit Master text styles Second level Third level

DEPARTMENTALIZATION

Consumer Department Human Resource Department Supply Chain Department Finance & Account Department


ORGANIZATIONAL STRUCTURECorporate ManagementChief Executive Officer Chief Financial Officer . External Affairs Management Corporate & Legal Services

MIS Reporting

Financial Planning & Budgeting

Commercial Services

Facility Management

Public Affairs Management

Private Affairs Management

Marketing

HR Management

Legal Affairs Management

Operational Management

Chief Operating Officer

Director System Planning & Engineering GM System Planning & Engineering Manager Generation Planning & Engineering Manager , Transmission Planning & Engineering Manager , Distribution Planning & Engineering

Director Information & C ommunication GM Change Management Manager IT Security

Director Generation

Director Transmission & Distribution GM Operations GM Maintenance GM Customer Care GM Performance

Director Finance

Director Human Resources

GM Operations

GM Maintenance

GM Finance

GM Training & De velopment Manager Payroll & HR Admin. Manager Corporate Services

Manager Plant 1

Manager Transmission

Manager SHE

Manager Controlling & Accounting Manager Treasury

Manager , I&C, HW & Infra

Manag er Plant 2

Manager Distribution 1

Manager Quality Management

Manager IT Security

Manager Plant 3

Manager Distribution 2

Manager Billing

Manager Plant 4

Manager Metering

Manager Procurement & Inventories

DIVISION OF LABOURIt is the assignment of various portions of a particular task among a number of organization members. The purpose of division of labor in KESC is to minimize the work load.

The management of KESC practices division of labor by dividing to edit Master text into different Click a certain task styles individuals or different departments. Second level

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SPAN OF MANAGEMENTIt is the number of individuals a manager can supervise. Due to diversity in functions and geographical continuity, the degree of span of. management at KESC is not too wide

There are rightly sized and adequate staff. Click to edit Master text styles Second level Third level

SCALAR RELATIONSHIPIt is the chain of command positioning of individuals on an organizational chart. The lower a person position on the organization chart, the less authority that person possesses.


GOAL SETTING PROCESSThe approach followed in KESC for goal setting is that of Management by Objectives (MBO)

MBO principles are:

Cascading of organizational goals and objectives

Specific objectives for each member

Participative decision making

Explicit time period

Performance evaluation and feedback

MOTIVATIONGoal-Setting Theory of Motivation: Goal setting theory of motivation is used in KESC. Goals motivate workers to meet higher performance levels.

Employees target reachable goals, allowing them to take part in goal setting which increases their commitment to even those goals that are more difficult to attain.


MOTIVATIONSTEPS TAKEN BY KESC TO MOTIVATE THEIR EMPLOYEES: Employees in the organization (K.E.S.C) are given the authority of decision making

Pre-defining pay structure Upper post placements (internal job placement) Safety


CORPORATE CULTURECorporate culture for management that influence the behavior of the employees within the organization to get significant positive effect on organizational success.

Our core aims regarding work environment at KESC are:

Balancing diversity in the workplace Positive engagement with the workforce Enrichment of jobs


UNDERSTANDING PEOPLEOur employees with their diverse culture, ethnic and varying educational backgrounds that make the working environment of the company so dynamic. We are constantly seeking ways to improve our employees' skills. Several training courses and workshops are available to our employees. We are also looking into developing industrial relation programmes and a performance management system.

CONTROLINGControl is making something happen the way it was planned to happen Controlling process: Measuring performance

Comparing measured performance to standard Click to actions Taking correctiveedit Master text styles Second level Third level

CONTROLINGIn KESC controlling is done through measuring following standards:

Profitability standards Generation standards Leadership standards Personal development standard Click to edit Master text styles Social responsibility standards Second level Third level

CONTROLINGTaking corrective action: Recognizing symptoms

Recognizing problems


CONTROLINGOperations Control: Operation control is defined as making sure that the operational activities are carried out as planned. For this KESC has taken the following steps:

Maintenance control Cost control


CONTROLING

Information Technology In KESC Information System In KESC


CONTROLINGIMPLEMENTATION OF INFORMATION SYSTEM IN KESC:

Computerization of records Proper backup of all the record of KESC in the main server machine Implementation of SAP accounting software Email accounts have been generated for the employees Centralized call center text styles Click to edit Master

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CONCLUSIONGeneration Problems:

As of 2007, KESC owned 1756 MW of generation capacity which had overtime been degraded to 1336 MW. The approximate demand for power in the city is at least 2300 MW There has been no recent increase in the generation capacity in KESC region of supply


CONCLUSIONTechnological Problem:

Transmission: Thirty percent of electric power is lost during transmission due to poor quality infrastructure

Geographic Problems:

Most of the generation capacity of KESC is located in east of the city. This adds an unnecessary transmission cost in moving this power to north, west and south of the city.


CONCLUSIONDistribution Problems: KESC faces a huge problem of POWER THEFT which happens in three ways:1.

Tampering of Meters Industrial clients who are billed according to a sanctioned load use bigger grips to get more power. People use kundas (hooks) on distribution lines.

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RECOMENDATIONS1.

We need to have more nuclear plants. Our hydropower is highly vulnerable to India. They can stop the water anytime and also it is predicted water levels are going to decline in future We should be looking for other sources of energy instead of fighting over building dams and wasting time like we did in the case of kalabagh dam Thar is the fifth largest coalfield in the world. Why not build coal or steam power plants. We cant surely afford large power plants but still there is a consistency for small scale generation to overcome load shedding.

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