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Summary

Parco is the biggest oil refinery in Asia. Parco stands for Pakarab

Refinery Limited. Parco is incorporated in MAY 1974 as a public

limited company. Pakarab refinery limited (Parco) is a joint venture of

Government of Pakistan (GOP) & Abu Dhabi.

PARCO

Introduction:

PARCO means energy. PARCO is a fully integrated energy company and

considered to be the leading player in the industry.  It is one of the largest companies of

the Pakistani corporate sector with an asset base approaching Rs. 100 billion.  As a

joint venture between the Governments of Pakistan and Abu Dhabi, it is seen as a role

model of Pak-Arab business co-operation and an 'enlightened investment decision'. 

PARCO is poised to further consolidate its growth and strategic supplier role for the

country.  That's why PARCO MEANS corporate ENERGY.

Vision Statement

For PARCO to remain among tomorrow's corporate winners.

They explain their vision statement in following way: it may not only need

to have a clear vision but also a passion for translating that vision into reality. The big

challenge is therefore, not only trying to figure out what future will be the right one, but

to choose a future that will give definite competitive advantage to the Company over the

long-term. Therefore, creating a cause for action besides charting a course on how to

get there.

Mission Statement

To enhance and establish a professionally sound corporate identity.

To operate the existing Pipeline System, Mid Country Refinery and marketing

initiatives in a manner that establishes it as a centre of excellence in Pipeline,

Refining & Marketing Activities in the Country.

To embark upon Integrated Investment Program which takes

cognizance of the existing bottlenecks and long-term petroleum needs of the

Country.

To provide a lead to the indigenous Petroleum Industry in finding of solutions to Technical

and Managerial problems.

To develop appropriate Human Resources for undertaking of large Energy Projects in the

Country.

History:

For many years after the completion of the pipeline, the dream was to

actualize the planning for a Mid-Country Refinery at Mahmood Kot, near Multan.  In

September 2000, the dream became reality with the start-up of the country's largest

capacity refinery of 100,000 barrels per day, costing US$ 886 million - commissioned

well within budget and a month ahead of schedule.  The state-of-the-art refinery is

based on the latest equipment and process technology and also serves as a training

resource for technologists from the region.  To us, PARCO MEANS modern and

efficient ENERGY.

Corporate Profile:

PARCO has now been in existence for more than 30 years. Its corporate

voyage through these years has been full of important milestones. In the past 17 years

PARCO has grown in size and strength and can look with confidence to a much brighter

future. Incorporated as a public limited company in 1974, PAK ARAB REFINERY LTD is

a Joint Venture between the countries of Pakistan and Abu Dhabi. The share holding in

the Company is in the proportion of Government of Pakistan (60%) and ABU DHABI

Petroleum Investment (ADPI). 40% in which 7% shares are of Govt. of Austria.

PARCO's major activities are:

Oil Refining and allied facilities

Oil Pipeline systems, storage and allied facilities

Marketing

International Partnerships

As a model joint venture, PARCO is a firm believer in partnerships. 

TOTAL headquartered in France, SHV Energy of Holland and OMV of Austria

represents some of the key strategic alliances that allow co-marketing of fuel like motor

gasoline, diesel, LPG and lubricants.  On the ground a network of nearly 100 gasoline

stations under the marquee of TOTAL PARCO will be in operation by the end of 2004. 

25% of PARCO's LPG production is marketed as PEARL Gas by SHV, while PARCO is

marketing PEARL Lubes made by OMV Austria along with locally blended Lubricants as

well.  PARCO can truly be considered as a national asset with an international image. 

Administration:

PARCO pumping stations exist in many areas such as Karachi, Keamari,

Korangi, Bubak, Shikarpur, Faisalabad, Fazilpur and Mahmood kot. These plants are

controlled by administration of head office at Karachi. The issues relate to their technical

work, operations at Karachi and mid country refinery are controlled and demonstrated

by their own administrations.

Internal Culture of PARCO:

The 1,600 employees operate the Mid-Country Refinery round the clock but environment

at PARCO is just like a family. There is strong coordination and social bonding among

different levels of employees. A low level worker can access the high level manager

without any hindrance. It is fully employee-oriented firm in which employees are the

most important asset for the company. When the Government went for downsizing,

PARCO contacted to the Ministry of petroleum and requested in the favor of their

employees. It has decentralized structure and team based environment. Employees

work in teams so that they may able to work together more efficiently. No unionization is

there. To avoid such problems all low level workers are hired at contractual basis and

other management workers are on permanent jobs. PARCO is very much conscious

about the education of employees. It hires highly qualified and competent persons. They

say

“We believe on giving the designation to employees according to their

qualification.” There is restriction that the applicant will be eligible to apply for a job if he

has at least A grade throughout his education.

Facilities for the Employees:

PARCO provides different facilities to its employees according to their

designations. It tries to satisfy their employees by giving them different facilities such as:

1. Housing Complex:

Different residential apartments are given to the workers. There are

different categories of houses. For bachelor employees there are Bachelors Hostels in

which, there are two categories one is for administrated staff and other for technical

workers. Employees are provided with apartment, houses, and bungalows as the got

promotions.

2. Bloomfield Hall School:

A school is established with the coordination of Bloomfield Hall School

system for employees’ children. Building is provided by PARCO and the mutual

management i.e. of is here to manage the school. Staff is hired with the coordination of

PARCO and Bloomfield Hall administration. Vice Principal Mrs. Shaista Qureshi handle

all the operations related to this branch.

3. Officers’ Club:

For recreation of employees officer club is established. Employees get the

memberships of this club and renew it annually. Different sort of activities are done by

this club. Melodious Geet & Ghazal Evenings and Sports Mania are some of the

activities that are held by officers’ club.

4. Hajj policy:

PARCO provides the opportunity of offering Hajj to their employees on its

behalf. For this purpose, every year some employees are selected from different

department by lucky draw.

5. Ibn-e-Sina Hospital

PARCO is more conscious about there employees health. For this

purpose certain hospitals in which Ibn-e-Sina is one of them. There are separate

hospitals for technical and administration staff. All the facilities are available in these

hospitals.

sUMMARY

PARCO is an employee oriented firm, focuses more on its employees’ careers,

safety, health, etc. The human resource policies of PARCO are its own and the

influence of the government is not much. For example, the promotion and reward

policy of PARCO is performance based which is contrary to the seniority base in

other government organizations. The PARCO is implementing the career

development mainly by the job rotation and training the employees about the

skills which are necessary for the performance of the job.

Managing Director

General Manager corporate affairs

Chief Executive HR & Administration

HR Manager Mahmood Kot

Chief Executive HR & Administration

Senior Manager executive Training&Development

Senior Manager executive Employment

Senior Manager executive Selection

&Benefits

Senior Manager executive Compensation &Benefits

Manager 1Senior Manager executive

Employment

Senior Manager executive Employment

lopment

Manager 1

Manager 2

Manager 3

Manager 3

Manager 4

Manager 4

General Assistant

General Assistant

General Assistant 2

Training Manager executive

Training Manager executive

HR Manager Karachi

HRD at Mid country Refinery:

All the issues and operation related to the personnel at mid country

refinery are controlled by its HR manager Mr. Mansoor Bin Kafeel. The hiring decision

related to very low level worker are taken by him. But the major operations are

performed after the approval of GM Corporate Affairs at head office Karachi.

HRD at Karachi:

Personnel related problems and decisions of all pumping stations staff are

handled by HR manager of Karachi. However some times many matters are handled

with the mutual consideration of both the HR managers. All the major hiring decisions of

pumping stations and refinery plants are made in Karachi head office.

Different Issues Related With HR Department

Motivation of Employees:

There are two main targets of its Human Resource Department

Retaining the employees

High motivation

For this purpose they provide different facilities for comforts and luxuries.

They provide residential apartments, officers’ clubs facilities, health facilities etc. There

is great demand of their employees in other countries especially in Middle East. So to

retain them in Pakistan they offer high salary package, bonus and facilities. As trainees

they are paid with more than 10,000 salary and housing facilities are also provided to

them.

It also provides different allowances in spite of their basic pay.150 liters

petrol per month is given to lower level employees for their personal car consumption.

This quantity varies according to the scale. Suzuki cultus is given to group head, Honda

to the Managers and 2D to the General Manager.

To prevent the employees from de motivation each worker’s salary slip is

kept confidential. If any increment is given to one of employee then others are remained

unaware about it.

Each year Performance Award Ceremony is held in which the employees

who have performed very well during this period are awarded by different gifts, shields,

bonus cheques and increment in salary. Recently Performance Award Ceremony 2006

is done on November 18, 2006.

Social Responsibilities:

PARCO is very much concerned about social responsibilities. it performs

many activities which gives proof about it. Some of these are following:

Safety Programs:

PARCO give more importance to the safety of employees. Different

sessions and trainings are conducted to give the awareness to the employees about

their safety. Safety Walks are also conducted annually before the Performance Award

Ceremony. Safety Walk 2006 was conducted November 16 2006.

Clean Environment:

There is great stress on the clean environment. Different precautions are

adopted in this concern. To appreciate PARCO’s efforts in this regards, soon after

securing trip quality certification for its Mid-Country refinery, PARCO notched another

quality achievement in the form of Environment Excellent Award, 2006. The award is in

appreciation of PARCO’s concern for environment, its environment-friendly policies as

well as investments in this regards.

Awareness about Cancer:

With the coordination of Shaukat Khanum Cancer hospital, they try to

create awareness in the society about cancer. They sponsor many walks, seminars and

meetings in this regards.

Summary

The primary responsibility of PARCO is to develop and

communicate career options within the organization to the

technical as well as administrative employees. PARCO has

created an open & cooperative environment that facilitates

the development of individual career plans. In PARCO, the

career options & career paths are mentioned in the policies

of HRD established by the GM Corporate Affairs. These

career paths are then communicated to the Manager HR

working at Mahmood kot.

Career Development in PARCO

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The target of career development is that “Individual thinks about himself,

his family, his religious obligations and his community welfare.”

Who Is Responsible For Career Development in Parco

Successful career development requires action from three sources:

Organization’s Responsibilities

PARCO is purely an Employee oriented organization. The primary

responsibility of PARCO is to develop and communicate career options within the

organization to the technical as well as administrative employees. PARCO has created

an open & cooperative environment that facilitates the development of individual career

plans. In PARCO, the career options & career paths are mentioned in the policies of

HRD established by the GM Corporate Affairs. These career paths are then

communicated to the Manager HR working at Mahmood kot.

Employee’s Responsibilities

PARCO provides a general framework for developing and communicating

career plans but the major responsibility lies with the individual how he grasps the

available opportunity available in the environment in an effective manner. For example,

in PARCO, if an employee thinks that a particular degree will help him to enhance his

existing skills and will facilitate his career path, and then individual will put up application

with Manager HR. PARCO will allow that employee to go for leave without pay in order

to acquire that degree. If an employee completes his degree with some distinction, then

that individual will be given the pay of the whole duration of degree and will get 100%

fee concession. In this way, the employee is having full support from PARCO. When

Annual report is prepared, then it is mentioned that this employee has completed this

degree with distinction and he will be considered as an alternative for another position.

Manager’s Responsibilities

The critical battleground in career development is inside the mind of the

person charged with supervisory responsibility. So in PARCO, Senior Management

executive is responsible for communicating career options to the technical and

administrative staff. PARCO believes in that “The weakness of employee is the

weakness of manager and the strength of employee is the strength of manager”.

It is the responsibility of manager to develop his team, identify the weak areas of every

individual and then offer training in that areas where the training is needed.

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Summary

Sources of Career Development in PARCO are

Education,Training,Job Experiences.Their management

trainee usually holds the same designation for more than two

years.And their orientation programs involves

comprehensive introduction of their vast organization.

Sources of Career Development in PARCO

Career development takes place in PARCO by the use of three sources:

Education.

Training.

Job Experiences.

Education

PARCO believes that education plays a vital role in career development of

an employee. If an employee is diploma holder, then it is mentioned with his

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designation. If an employee is B Tech Engineer, then engineer is mentioned with his

designation. PARCO also facilitates his employees to get professional degrees like MS

etc. during their jobs in order to fully equip their employees with the dynamic changes

occurring in the environment as well as to enhance their skills & abilities.

Training

The objective of training in PARCO is to “Identify weak area of employee

and convert that weakness into strength. The weakest person is highly focused.”

Initial Training

PARCO offers Initial Training to the new employees starting their careers.

This training consists of 2 years time period and consists of the following:

Class-room training (9 months).

On the job training (15 months).

In class room training, the employee is given knowledge about general

subjects like chemical, electrical, instrument handling etc. In this session, the employee

learns about several things like Nature of job, communication skills, presentation skills,

motivation & dedication, importance of teamwork in the competitive & dynamic

environment of PARCO and social responsibilities. During classroom training, monthly

tests are conducted to evaluate the performance of employees.

During on-the-job raining, the employee is given training particular to his

area of job. The employee is going to work with skilled persons of that very department.

For example, if an employee is appointed in Operations department, then he will get

training related with Instrument handling and other technical issues essential for safe,

efficient & effective operations of the oil refinery. During this 2 years training program,

the trainees are also given salaries and housing facilities both for bachelors and

families. The initial training is offered in Karachi Head office and also at Mehmoodkot oil

refinery.

Summary

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PARCO is very much conscious about Safety & Environment so regular

training sessions are conducted.Training on emerging managerial issues

reputed by institutions like LUMS is conducted. Emplyees are sent abroad

as well .Further, Employees gain experiences of different jobs in PARCO

by the technique of “MULTICRAFTING” which is the term used for job

rotation in PARCO

Training during Job

PARCO is very much conscious about Safety & Environment. So regular

training sessions are conducted from time to time in order to ensure safe operations in

the oil refinery. It is compulsory for employees of all levels to attend these training

sessions. Every employee gets his schedule of attending training session from his

group head. In these sessions, the skilled and experienced employees of departments

are asked to conduct training. Foreign consultants are also invited to give training

regarding operations of machine especially if it is bought internationally..

In 2009 and 2010 : training courses on : firefighting system , protective

equipment , SAP, module introduction , are the few names of the many courses

conducted.

PARCO also conducts training on emerging managerial issues for their

managerial employees. For this purpose, experts from reputed institutions are invited

like LUMS. Employees are also sent to Japan, Dubai, UK and other countries for

technical training individually and in groups as well. For example, recently four

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employees are sent for 15 days training to UK regarding “Techniques to Reduce

Material Ceiling.”

Job Rotation

Employees gain experiences of different jobs in PARCO by the technique

of “MULTICRAFTING” which is the term used for job rotation in PARCO. The

objective of multicrafting is to produce potential successor of every job in PARCO.

Company has backup of employees all the time. Capabilities & skills of employees are

enhanced and they get exposure to almost all the working aspects of PARCO.

Multicrafting is used to avoid the situation in which an employee can blackmail the

organization. It starts from Senior Management Executive and ensures manageability of

things. For example, GM Finance will become Gm Operations. There is no rise in pay

because designation remains the same. All such decisions are taken by GM Corporate

Affairs at the head office Karachi.

An example of human resource manager training program

attended by PARCO. Below is the application form :

Summary.

An integerated system of individual

assessment,organizational assessment and discussion of

career paths. PARCO goes for continuous evaluation during

initial training program. At the end of each month, tests are

conducted to assess & evaluate the performance of trainee

Implementation of Career Development in Parco

Successful implementation of career development involves the following

steps:

Individual Assessment

Parco provides a flourishing environment to its employees in which its

employees develop themselves and believes on mental growth and broadness.

Employee continuously go for his internal analysis (Strengths & Weakness) and then

determine for himself the following things:

What are my weaknesses?

How can I convert my weaknesses into strengths?

What career options should be adopted to achieve already specified career

goals?

When a career option is chosen by employee, then this is communicated

to GM Corporate affairs. If GM approves it, then it is communicated to Mgr HR and

finally to Sr. Management Executive who finally coordinates it with the employee.

Organizational Assessment

PARCO goes for continuous evaluation during initial training program. At

the end of each month, tests are conducted to assess & evaluate the performance of

trainee. It is compulsory for every employee to secure at least 70% marks in the test in

order to proceed further. If a trainee secures less than 70% marks in two consecutive

test, then report will be send to head office and action will be taken. In order to assess

the overall performance of employees, Annual Performance review is conducted at the

end of each year. These forms are based on average performance of employees

through the whole year and do not judge the current performance. These forms are

provided to Group Head and are received by group head from the employees after

completion. Performance grades are allocated to employees on the basis of their

performance. Then counseling sessions are conducted with every individual in isolation

after the forms are submitted to Manager HR. Group head discuss with every individual

about his assessment and specify weak areas of that very employee. If the need exists,

the counseling sessions should be conducted once in a month.

Communicating Career Options

PARCO most of the time goes for internal hiring through the technique of

multicrafting. For internal hiring, information & opportunities are communicated to

employees in a formal session by the group head. If there is need for external hiring,

then career options are communicated through newspaper advertisements.

Career Pathing

Career paths are defined in HR policies established by GM Corporate

Affairs at the head office Karachi. Then these are communicated to HR Mgr at

Mehmoodkot and finally communicated to employees by HR Mgr.

Career Self Management

Employees of PARCO are very conscious about keeping themselves at

pace with the changes occurring in organization & industry by utilizing career options by

themselves and by availing opportunities provided by PARCO like Diversified Training

Programs. In this way, the employees enhance their skills and feel a sense of

Motivation, Loyalty & Commitment.

Type of organization Manufacturing

employees executive , line managers, mangers, Engineer and

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technical staff, operating staff, Sales force

Existence of Hr department

yes

Purpose of performance appraisal

guide to job changes, salary decision, employee development, supervisory understanding

Performance appraisal approach comparison against standards, direct performance measure

Who does performance appraisal immediate supervisorFeedback to employee about

results

upto some extent

Methods of appraisal rating scale(personal trait and behavior scale, job dimension rating scale

Problems organizational influence, personal biasness, difficult to set qualitative standard

accuracy up to some extentReason for inaccurate evaluation subjective standard, rate error, negative

communication

Description of Performance Apparisal System I

As the manufacturing organization, PARCO has various categories of

employees including senior executives, line managers, managers, engineer

and technical staff, operating staff and sales force, so it is comprised of

various nature of jobs, making it complex to conduct a smooth performance

appraisal system.

To deal with human resource of the organization, the main HR department

is located in Karachi but its personnel department is working at the site

located in Qasba Gujrat, Mahmood kot, Distt. Muzaffargarh

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The main HR Department in Karachi formulates the actual appraisal policy

and communicate to the personnel department at the site, then personnel

department conducts performance appraisal of employees accordingly.

For employees on probation , their performance report is done after six

months. For permanent employees, their appraisal is conducted after every

one year. The organization financial year is July to June.

The personnel department conducts the performance appraisal of

employees for their Promotion, their Job Changes, Development, and

Salary Decisions. Personnel department normally uses different types of

approaches for different types of employees depending upon their job

nature. Mostly, they use Comparison Against Standards or Direct

Performance Measurement approach. In this organization, both formal and

informal systems are comprised for performance evaluation which are

usually handled by immediate supervisor.

The formal system’s procedure is described below, while the informal

system includes the activities like Club Sitting, Parties, Attitude during

informal activities, Seminars, Games etc.

The appraisal method, used by the personnel department, is Rating Scale,

in which they use Job Dimension Rating Scale and Personal Traits &

Behavior Rating Scale. The reason for using these methods is that it covers

the job activities to be done as well as the attitude & behavior required by

that job. Five degrees of scale are used such as Very Good, Good, Fair,

Satisfactory, Poor.

Parco has job security to its employees. Company also checks the

references of the employees from their previous jobs. Promotion is given

on experience and good work. In performance appraisal, the following

characteristics are measured:

1.Employee Dependency

2.Delegation Of Authority

3.Behavior With Juniors

4.Communication Skills

5.Job Performance

6.Behavior With Supervisors

Procedure

Personnel department sends the appraisal form to immediate supervisors.

Supervisors fill the forms and send back to the Personnel Department. On

the basis of supervisor’s evaluation, the instructions from the personnel

departments are communicated to supervisors to deal with the particular

employees. But the employees appraisal results are not communicated to

the employees formally but with the passage of time ,as needed, they are

informally communicated by immediate supervisors.

After conducting appraisal, the personnel department communicates

its evaluation with recommendations regarding appraisal policy. Then HR

department makes decisions on the basis of Personnel department’s

evaluation.

Problems In Performance Measurement & Evaluations:

Although Personnel Department tries to communicate a fair and smooth

appraisal system but due to some reasons, the inaccuracy in performance

measurement occurs. The reasons for this include:

1.Organizational Influences.

2.Personal Biasness.

3.Difficult To Set Qualitative Standards.

There are also some problems, which the personnel department has to

face in the accurate evaluation of the measured performance. The

problems include:

1.Subjective Standards.

2.Rating errors.

3.Negative Communication.

But the personnel department believes that its performance appraisal

system is still working fine.

COMPENSATION ASPECTS

Department

The organization has eight departments.

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The organization has formal “HR” department.

No. of employees

A total of eight hundred employees are working in The organization.

Survey for pay rates

The organization does conduct informal survey for establishing the pay

rates of various grades.

Basis for pay structure

The organization set the pay structure for various appointments on the

basis of :

1. Qualification

2. Experience

3. Technical skill

Job evaluation concept

No job evaluation concept is being followed by the organization.

Basic salaries

Basic salaries are set according to qualification, experience, and technical

skills.

Union

A formal labor union (C.B.A.) exists in the organization.

The union discuss the issues like:

1. Wages rates

2. Income security

3. Time of with pay

4. Cost of living adjustment

5. Health care

Payment policy

No response is given by the organization.

Regular salaries are paid to the employees during probationary period.

Increments

The employees are awarded annual increments.

Allowances policy

Allowances are paid grade wise.

Compensation to the trainees

Compensation to the trainee employees is paid according to the grades.

Accident compensation

Compensation is paid through in vogue group insurance policy as per

government regulations.

Medical treatment

Free medical treatment is entitled to the employees, their parents and their

families through various hospitals on the pool of the organizations.

Payments during leaves

Employees are paid during leave periods.

TA/DA’s policy

TA/DA’s are paid to the employees at different categories according to

their grades and entitlement.

Overtime premium

The organization pays the overtime premium to the employees.

Compensation for foreign qualified

No such compensation is paid in case of foreign qualified individuals

Additional technical qualification salary

Yes, additional benefits paid to technically high qualified personnel.

Pension policy

Yes, the organization has pension policy for their employees.

Post retirement benefit

Free medical treatments to self, spouse and dependent children.

Basis for pays

The organization follows both job base pay and skill base pay policies.

The organization has the centralized process for pays / wages

establishment.

Chief executive compensation

The compensation for chief executive is based on:

1. Qualification

2. Experience

3. Performance

4. Service length

Manager’s compensation

The managers are offered compensation in term of salary, benefits, short

term incentive and long term incentives

Professional compensation

No response is given by the organization.

Female workers

The organization has female workers.

The females are being paid more as compare to male workers.

Pay policy

The organization has secret pay policy.

The pays are revised after every two years.

In case of inflation, for the retire personnel there is no change in pension

policy.

Relationship between productivity and salaries

The organization believes in the relation between productivity and pays /

salaries / wages.

They have strong intensity of the relationship in the organization.

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EMPLYEE FORM

ADDRESSES OF OFFICES

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Corporate Office

Corporate Headquarters,

Korangi Creek Road,

Karachi- 75190,

Pakistan.

Registered Office

Avari Plaza,

Adjacent to Hilton Hotel,

87,Shahrah-e-Quaid-e-Azam,

Lahore. Pakistan.

Refinery Office

Qasba Gujrat, Mahmood Kot,

Distt. Muzaffargarh,

Pakistan.