Organizational Behavior Report on KESC

2013

Organizational Behavior Report at KESC

OB REPORT ON KESC ABOUT AB OUT THEIR POLICIES, STRATEGIES, PRACTICES AND PROCEDURES.

ORGANIZATIONAL ORGANIZAT IONAL BEHAVIOR | Mr. Shafqat U llah

Organizational Behavior

IQRA UNIVERSITY

Contents Group Members ...................................................................................................................................... 3 Introduction to KESC ............................................................................................................................... 4 Mission Statement .................................................................................................................................. 4 Vision Statement ..................................................................................................................................... 4 Structure ................................................................................................................................................. 4 Departmentalization ........................................................................................................................... 4 System..................................................................................................................................................... 4 Strategies, Policies and their Effects ....................................................................................................... 4 Steps taken by KESC to motivate their Employees ............................................................................. 5 Division of Labor ................................................................................................................................. 5 HR Department ....................................................................................................................................... 5 Understanding People ........................................................................................................................ 5 Fair Appraisal System .......................................................................................................................... 5 SCORING.......................................................................................................................................... 5 RATING SCALE ................................................................................................................................. 6 PERFORMANCE REVIEW – ELIGIBILITY ............................................................................................ 6 PROMOTIONS.................................................................................................................................. 6 PERSONAL LEARNING AND DEVELOPMENT PLAN (PLDP)............................................................... 6 PERFORMANCE IMPROVEMENT PLAN (PIP) ................................................................................... 6 APPRAISAL CURVE ........................................................................................................................... 6 REWARD MATRIX ............................................................................................................................ 7 Goal Setting Process ........................................................................................................................... 7 Operations Department .......................................................................................................................... 7 Organizing ........................................................................................................................................... 7 Planning Process at KESC .................................................................................................................... 7 Practices .......................................................................................................................................... 7 Levels in Planning ............................................................................................................................ 8 Effectiveness of the Plans ............................................................................................................... 8 Decision Making in KESC ..................................................................................................................... 8 Nature of Decisions made at KESC .................................................................................................. 8 Decision Making Techniques used in KESC ..................................................................................... 8 Operations Control ......................................................................................................................... 8 Controlling....................................................................................................................................... 8 Controlling Process ......................................................................................................................... 8 Corrective Actions ........................................................................................................................... 8 Organizational Behavior Report at Karachi Electric Supply Corporation

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Information Technology in KESC ............................................................................................................. 9 Information System in KESC ................................................................................................................ 9 Marketing Department ........................................................................................................................... 9 Corporate Social Responsibility .......................................................................................................... 9 Newsletters and Conferences ............................................................................................................. 9 Energy Efficiency Partnerships............................................................................................................ 9 Finance Department ............................................................................................................................. 10 Finance function has been bifurcated in to 4 divisions reporting to Group CFO: ................................ 10 Controlling and Accounts .................................................................................................................. 10 Treasury ............................................................................................................................................ 10 Finance and Business Administration ............................................................................................... 10 Distribution Finance .......................................................................................................................... 10 Conclusion............................................................................................................................................. 10 Technological Problem ...................................................................................................................... 10 Transmission ................................................................................................................................. 10 Geographic Problems .................................................................................................................... 10 Distribution Problems ................................................................................................................... 10 Recommendations ................................................................................................................................ 11

Organizational Behavior Report at Karachi Electric Supply Corporation

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Group Members Nasir Ali – 20414 Suhail Shaikh – 20646 Sara Fatima – 21493


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Introduction to KESC The Karachi Electric Supply Company Limited was incorporated on 13th September 1913 under the Indian Companies Act, 1882 as amended to date Wide the Companies Ordinance 19 84.The Government of Pakistan took control of the Company by acquiring majority shareholding in 1952 The 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.

Mission Statement To 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 wellbeing of our people and to strive to recognize their diversity and skills.

Vision Statement 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.

Structure Departmentalization The seven main departments of KESC are listed below 

Generation Department



Grid Stations & Transmission Lines



Distribution Department

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Consumer Department

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Human Resource Department

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Supply Chain Department

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Finance & Account Department

System  



It 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 staffed.

Strategies, Policies and their Effects Corporate 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  Organizational Behavior Report at Karachi Electric Supply Corporation

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Goal-Setting Theory of Motivation 

Goal setting theory of motivation is used in KESC.

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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.

Steps taken by KESC to motivate their Employees 

Employees in the organization (K.E.S.C) are given the authority of decision making.

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Pre-defining pay structure.



Upper post placements (internal job placement).

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Safety.

Division of Labor 

 

It 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 a certain task into different individuals or different departments.

HR Department Understanding People 

Our employees with their diverse culture, ethnic and varying educational backgrounds that make the working environment of the company so dynamic.

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We are constantly seeking ways to improve our employees' skills.

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Several training courses and workshops are available to our employees.

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We are also looking into developing industrial relation programs and a performance management system.

Fair Appraisal System They have a very fair appraisal system and each individual is rated on the basis of bell curve. Below is their rating scale: SCORING

For BU-Distribution and G&T:

Points

For ALL other BU’s:

Points

Business objectives

67

Business objectives

70

Leadership Imperatives

23

Leadership Imperatives

25

Safety Objectives

10

Safety Objectives

05

Total

100

Total

100


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RATING SCALE Outstanding

90 and above

Exceed Expectation

71 to 89

Met Expectation

51 to 70

Below Expectation

50 and below

PERFORMANCE REVIEW – ELIGIBILITY 

 



Employees who have joined before 1st of July 2012. (i.e. have completed six months with KESC) Employees who are active in December Payroll Employees who have gone on LPR during the year after July 01, 2012, will be appraised for the period they have spent as active employees In case of transfer of an employee, six months rule will be followed. Appraisal will be conducted by that supervisor under whom t he employee have spent six months

PROMOTIONS Promotions will be as per below mentioned criteria: 

Those who have received a promotion in less than 24 months are not eligible. However, their salary review will be done as per their performance rating.

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All promotions will be strictly subject to approved Organizational chart and vacancies.

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There will be no double promotion (i.e. 2 levels jump).

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Only Exceed Expectations and Outstanding will be eligible for promotion.

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At least EE or OS rating in current and previous year appraisal.

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Sustain or exceed performance rating from the previous year rating.

PERSONAL LEARNING AND DEVELOPMENT PLAN (PLDP) PLDP will aim to enhance employees’ knowledge, skills and abilities. This form is mandatory for all resources (except those who are rated BE).

PERFORMANCE IMPROVEMENT PLAN (PIP) PIP will be made for employees who will be rated Below Expectations (BE) in order to improve their future performance.

APPRAISAL CURVE


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REWARD MATRIX Grades

BE

ME

EE

Outstanding

V, VI, VII

0%

6%

10%

16%

III, III-A, IV

0%

9%

13%

19%

I, II

0%

13%

18%

24%

Goal Setting Process The approach followed in KESC for goal setting is that of Management by Objectives (MBO) MBO principles are: 

Cascading of organizational goals and objectives

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Specific objectives for each member

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Participative decision making

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Explicit time period

Operations Department Organizing  

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



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It 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. Delegating 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. Organization is the end result of the process of Organizing.

To establish organizing in KESC, the management follows following five FAYOL’s guidelines: 

It promotes both material and human coordination.

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It formulate clear and precise decisions.

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Duties are defined clearly.

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The management promotes discipline.

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For that purpose, sanctions against faults and errors are applied

Planning Process at KESC Practices Practices involved in planning processes:


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

Day-to-day planning

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Planning for the next one year

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Planning for the next five years

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Levels in Planning 

Station level planning

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Department level planning



Corporate level planning

Effectiveness of the Plans 

Government policies



World bank funds

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Impediment on coal extraction

Decision Making in KESC Nature of Decisions made at KESC 

Programmed decisions

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Non-programmed decisions

Decision Making Techniques used in KESC 

Individual decision making.

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Group decision making.

Operations 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 

Controlling Control is making something happen the way it was planned to happen

Controlling Process 

Measuring performance



Comparing measured performance to standard

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Taking corrective actions

In KESC controlling is done through measuring following standards: Profitability standards   Generation standards Leadership standards   Personal development standard  Social responsibility

Corrective Actions Taking corrective action: Recognizing symptoms  Recognizing problems 


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Information Technology in KESC 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.

Marketing Department Corporate Social Responsibility What KESC is doing to fulfill the social responsibility? 

Equilibrium

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Welfare schemes

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Environment

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Sports

Newsletters and Conferences KESC publishes their newsletter every month with the name of AZM Newsletter. They also organize AZM conferences:

Energy Efficiency Partnerships KESC has done its best to retain the image of a corporate that is socially responsible KESC has signed several MoU (Memorandum of Understanding), in which the most recent are with:  

 

NED University - Embarking upon a Strategic Partnership towards Energy Efficiency. TCF - Entering into strategic alliance with TCF to construct schools in disadvantaged communities of Karachi. Phillips - KESC signs accord with Philips to promote Energy Efficient Lifestyle. Karwan-e-Hayat - KESC to provide Free Electricity to ‘Karwan -e-Hayat’ to Support Mental Healthcare


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Finance Department Finance function has been bifurcated in to 4 divisions reporting to Group CFO:

Controlling and Accounts 

Its core function is the financial control monitoring and advisory on general entries.

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Over viewing and responsible for budget handling.

Treasury 

Its function is to controlling and handling of cash.

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Smooth disbursement of salaries

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Ensure payments to vendors.

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Responsible to ensure availability of cash for company expenses.

Finance and Business Administration 

The function of FBA department is to check invoices received to the company and make it sure that all generated invoices are as per the budget setting.

Distribution Finance 



The DF department is also called Business Finance department which works as a synchronized with business operations. They are one who does financial analysis on daily basis and keep update the company about its current status. In finance terminology they are called field staff as well.

Conclusion Technological 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. Distribution Problems KESC faces a huge problem of POWER THEFT which happens in three ways:  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.  KESC is in the phase of turn around and is facing stiff challenges too. It is now inducting new young qualified professionals at all levels and has introduced a system performance appraisals too. With the new management envisioning a paradigm cultural shift the changes being made are in line with the vision and mission of the company


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Recommendations The Karachi Electric Supply Company needs to be enhancing its generating capacity by installing and maintain new generating plants. Presently KESC generating stations are dependent on furnace oil and Gas that leads the high tariff at consumers end and could cause economic crisis in t he city. KESC can overcome the shortfall of electricity by installing alternate energy power plants and can also be in favor of renewable energy system. It is also recommend the KESC should go for Hydral Power generation in order to give relief to its consumers and earn maximum ration of profitability. We also would like to recommend that, KESC should facilitate to its employees for electricity benefit keeping in view the cadre of an employee, that ultimately increase the motivational level of the employee and by this act an employee would be more loyal to the company and own his responsibilities as well.


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Organizational Behavior Report on KESC

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