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Orient Energy Systems

IMPLEMENTATION OF HUMAN RESOURCE POLICIES

KHALID RAFIQ
2008
College of Business Management, IoBM
LETTER OF AUTHORIZATION
December 13, 2008

Khalid Rafiq
Course Instructor – Human Resource Management
CBM, Institute of Business Management
Karachi

SUBJECT: Human Resource Management Report on Orient Energy Systems


Dear Sir:

We hereby submit this project report on Orient Energy Systems that you have authorized us to prepare,
in fulfillment of the requirement for the Human Resource Management course. We are submitting it
for your perusal.

This report outlines the overall operations of the organization, its business activities, processes, the four
management functions i.e. Planning, Organizing, Leading & Controlling and based on all this, the Human
Resource practices adopted by the organization at various levels of organizational and individual
classifications.

Preparing this report has been a rewarding and enlightening experience. During the preparation of this
report, we were able to correlate the theoretical knowledge you disseminated in the class with the
practical aspects. The process of preparing this report has enhanced our learning and added to our
knowledge and abilities.

If you have any queries, we are available at any time on the following numbers. We would be more than Orient Energy Systems | 12/13/2008

happy to discuss any issues that you may have.

Yours truly,

Zafar Iqbal Shehzad M. Ali Madani Fahad Malik Muhammad


Yunus Iqbal
0333-2149306 0300-2868040 0333-3715956 0334-3998004 0301-2877889

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ACKNOWLEDGEMENT
We would like to express our special gratitude to our mentor, instructor and friend, Khalid Rafiq, for his
valuable guidance in management and organizational behavior practices owing to his immense expertise
and related experience in the practical field.
We would also like to extend our thanks and appreciation towards the following people; without their
help we would have not been able to compile this report:

Mr. Muhammad Saeed Managing Director


Mr. Azhar Iqbal Deputy Managing Director
Mr. Anwar-Ul-Hasan Director, Sales
Mr. Naseem Ahmed Director, Technical
Mr. Javed Iqbal Director, Product Support
Mr. Shahid Anwar General Manager, Sales
Mr. Wasi-Ul-Hasan General Manager, Operations
Mr. M. Waseem General Manager, Product Support
Mr. Naseem Alam General Manager, Engineering
Mr. M. Mairaj Khan Deputy Manager, Commercial
Mr. M. Shamsheer Manager, IT
Mr. M. Asif Jalil Executive, HR
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TABLE OF CONTENTS

TABLE OF CONTENTS..................................................................................................3
ORIENT ENERGY SYSTEMS..........................................................................................6
INTRODUCTION.............................................................................................6
PRIMARY BUSINESS.......................................................................................7
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CURRENT MARKET.........................................................................................7
SALES HISTORY.............................................................................................8
SECONDARY BUSINESS.................................................................................8
RENTAL.................................................................................................................... 8
DIESEL GENERATOR SETS................................................................................................9
CHILLERS.................................................................................................................. 9
MACHINES................................................................................................................. 9
COMPRESSORS............................................................................................................ 9
MANAGEMENT FUNCTIONS - PLANNING......................................................................9
MISSION STATEMENT....................................................................................9
ANALYSIS OF MISSION STATEMENT....................................................................10
VISION STATEMENT.....................................................................................11
CORE VALUES..............................................................................................11
GOALS AND OBJECTIVES.............................................................................11
STRATEGIC GOALS.............................................................................................12
TACTICAL GOALS................................................................................................12
MBO (MANAGEMENT BY OBJECTIVES).................................................................12
ORGANIZING.............................................................................................................12
DEPARTMENTALIZATION.............................................................................13
TOTAL PERSONNEL STRENGTH...................................................................13
SPAN OF MANAGEMENT..............................................................................15
STAFF GRADING..........................................................................................15
DELEGATION ..............................................................................................16
COMMUNICATION TECHNIQUES...................................................................16
COMMUNICATION FLOW.....................................................................................16
VERTICAL COMMUNICATION...............................................................................16
HORIZONTAL COMMUNICATION.........................................................................16
ORGANIZATIONAL STRUCTURE.................................................................................18
LEADING...................................................................................................................19
MOTIVATORS...............................................................................................19
ROLE MODELS....................................................................................................20

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TRANSACTIONAL LEADERS.................................................................................20
TRANSFORMATIONAL LEADERS..........................................................................20
MONETARY REWARDS FOR EFFECTIVENESS AND EFFICIENCY....................21
EMPLOYEE LEARNING ..............................................................................................21
PERFORMANCE APPRAISAL.......................................................................................22
ORIENT ENERGY SYSTEMS IS USING 360 DEGREE FEEDBACK PROCESS AS A PERFORMANCE APPRAISAL FOR
MANAGERS THAT INCLUDE EVALUATIONS FROM A WIDE RANGE OF PEOPLE WHO INTERACT WITH THE MANAGERS. THE
PROCESS INCLUDES SELF EVALUATIONS AS WELL AS EVALUATIONS FROM THE MANGER’S BOSS, SUB ORDINATES, PEERS
AND CUSTOMERS............................................................................................................... 22

JOB ENLARGEMENT............................................................................................................22
ORIENT ENERGY SYSTEMS HAS STRONG BELIEF ON ADDING CHALLENGES OR NEW RESPONSIBILITIES TO AN EMPLOYEE’S
CURRENT JOB................................................................................................................... 22

MENTOR ................................................................................................................... 22
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ORIENT ENERGY SYSTEMS HAS STRONG BELIEF ON MENTORING DUE TO ITS HIGHLY EXPERIENCED TOP MANAGEMENT
WHICH GUIDES THE MIDDLE MANAGEMENT IN THE DIRECTION THAT HELPS THEM TO DEVELOP...........................22

SUCCESSION PLANNING.......................................................................................................22
ORIENT ENERGY SYSTEMS HAS STRONG BELIEF ON SUCCESSION PLANNING AND ITS MANAGERS HAVE CLEAR VIEW OR
TRACKING ON THE POTENTIAL EMPLOYEES CAPABLE OF FILLING HIGHER LEVEL MANAGERIAL POSITIONS.................22

LEADERSHIP BEHAVIOR AND STYLE ...........................................................22


OERTIME, FOOD, CONVEYANCE, MOBILE AND FUEL ALLOWANCES.............22
INCENTIVES.................................................................................................23
TRAINING................................................................................................................23
PROMOTION.............................................................................................................23
TYPES OF PROMOTIONS OR APPRAISAL..............................................................23
HORIZONTAL PROMOTION: ............................................................................................24
VERTICAL PROMOTION:.................................................................................................24
DRY PROMOTION OR RE-DESIGNATION: ..............................................................................24
MONETARY REWARDS .................................................................................................24
CONTROLLING..........................................................................................................24
FEEDBACK MECHANISM...............................................................................24
CONTROLLING MECHANISM.........................................................................25
GOALS AS CONTROLS.........................................................................................25
INTANGIBLE CONTROLS......................................................................................25
RESOURCES........................................................................................................25
LEAVE POLICY...........................................................................................................25
STAFF MEDICAL ENTITLEMENT...........................................................................26
AUTHORITY DELEGATION...................................................................................26
CONTROLLING DEVIATION..................................................................................27
FEEDBACK..........................................................................................................27
BUDGET .............................................................................................................28
INTERNAL AUDIT ................................................................................................28
EXTERNAL AUDIT................................................................................................28
INTERNAL REPORTS.....................................................................................................28
SAFETY & HEALTH..............................................................................................29
QUALITY POLICY................................................................................................. 30
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CAR POLICY & POOL VEHICLES ................................................................................30


TRAVELLING POLICY...........................................................................................................31
MIS POLICY...................................................................................................................31
CONCLUSION............................................................................................................31
QUESTIONNAIRE ANALYSIS.........................................................................32
SECTION # 1..........................................................................................................32
SECTION # 2..........................................................................................................32
SECTION # 3..........................................................................................................33
RECOMMENDATIONS................................................................................................ 34
APPENDIX B..............................................................................................................36
QUESTIONNAIRE..........................................................................................36
APPENDIX C.............................................................................................................. 36
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COMPANY PROFILE....................................................................................................37

ORIENT ENERGY SYSTEMS


INTRODUCTION
Orient Energy Systems is one of the Pakistan’s leading energy solution providers.
Orient Energy Systems was formed by a group of highly experienced and ambitious engineers of
the industry in 1996.
In 1998, the company was approached by Jenbacher Energy officials who were in search for a
competent organization to serve as their
sole distribution agent in Pakistan. After
careful evaluation, Jenbacher Energy,
Austria selected Orient Energy Systems to
deal with this great responsibility
exclusively and dedicatedly for the sale of
gas engines across Pakistan.
2003 was a very special year when
Jenbacher Energy, manufacturers of the
world’s most advanced gas engines became part of General Electric (GE Energy) and since
then the conglomerate is called GE Jenbacher. These gas engines having output range from 300
kW to 3000 kW at 1500 rpm are generally rated as Real gas engines running on natural gas

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pipeline & due to their unique capability to burn variety of gases from very lean wood gas to
highly rich LPG to heavy flare gas with remarkably high efficiency to produce most viable
power both in simple and co-generation modes of application.
The company has been offering specialized maintenance and overhaul services along with
typical and sophisticated repair skills to refurbish industrial class reciprocating internal
combustion engines. Orient Energy Systems offers to maintain the generator sets during the
operating life of the asset, which includes routine maintenance contracts, blanket maintenance

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contracts, total plant management (O&M) contracts and overhaul service with complete
monitoring through their factory trained technical managers and highly skilled service engineers.
The company employs more than 1000 qualified & skilled employees including graduate
engineers, marine / associate engineers and experienced generator set operators etc., rendering
their services and are ready to back up customers 24/7.
Orient Energy Systems also maintains a sizeable inventory of parts to meet all sorts of
requirements. These inventory stocks have been closely monitored and maintained through an
automated system through which parts specialists can precisely forecast shortages /
requirements / disbursements of parts to different projects.
The head office of the company is located in the prime vicinity of Korangi Industrial Area,
Karachi, whereas branch offices are situated in Lahore, Islamabad, Multan and Faisalabad. The
company also has a presence in Dubai, U.A.E. as well as Dhaka, Bangladesh.

PRIMARY BUSINESS
As the best dealer of GE Jenbacher gas generator sets in world for the past three years
consecutively, Orient Energy Systems is engaged in pre-sales, sales, after-sales and complete
consultancy services during and after the sales and specially after the successful commissioning
of the generator sets with its auxiliaries. Orient is involved in turnkey solution provider related to
power generation.
Since its inception in 1996 the company has more than 65% of the market share.

CURRENT MARKET
In the present market scenario, OES competes with the following competitors in its business of
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gas generator sets:

Company Dealership
Allied Engineering & Services Ltd Caterpillar, USA
Masco Energy Waukesha, USA
Cummins Pakistan Cummins, USA
Siemens Pakistan Personally owned coupling facility
Powertec Guascor, Spain
Deutz Deutz, Germany

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SALES HISTORY

Year No. of Units Sold


1999 2
2000 14
2001 10
2002 28
2003 28
2004 121
2005 169
2006 115
2007 104
2008 Till July 41

Total Units
633
Sold Till Date

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SECONDARY BUSINESS

Rental
Orient Energy Systems deals in rental business of diesel and gas generator sets on short term and
long term basis. The company partners with Rentec division of Orix Pakistan Leasing Company
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Limited, Orix Rentec is the financial partners and Orient Energy Systems is providing the
operations and maintenance of the generator sets.

Diesel Generator sets


Orient Energy Systems also deals in Diesel generator sets manufactured in UK and USA and
assembled in Italy and Mexico.
In the present market scenario, OES competes with the following competitors in its business of
Diesel generator sets:

Company Dealership
Allied Engineering & Services Ltd Caterpillar, USA
S M Jaffer F G Wilson
Cummins Pakistan Cummins, UK
Siemens Pakistan Personally owned coupling facility
Powertec John Deere, France
Greaves Pakistan SDMO, France

Chillers
Orient Energy Systems deals in Chillers manufactured in China.

Machines
Orient Energy Systems also deals in Earth Moving and material handling equipments
manufactured in China.

Compressors
Orient Energy Systems also deals in Compressors manufactured in China.
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MANAGEMENT FUNCTIONS - PLANNING

MISSION STATEMENT
“At Orient we are striving to continue providing value to the customers by providing them the
most reliable energy systems solutions, material handling, utilities and engineering solutions by
means of superior technology, dedicated services and take care of our employees and
stakeholders”.

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ANALYSIS OF MISSION STATEMENT
In view of the course studied, the above revised mission statement possesses the following
characteristics:

1. Customer Oriented
It contains “we are striving to continue providing value to the customers” i.e. Orient is
providing value added to customer and support them in achieving their goals.

2. Product Oriented
Previously it was power solution provider and only supplying the gas generator sets to
industrial customer but after a tremendous growth of company in last five years and also
growth in power sector, company has also diversified itself in other fields and now Orient
is not only providing diesel and gas fuel based Generator sets but they are also providing
forklift truck and earth moving machineries for material handling solutions, Absorption
chillers for air conditioning solutions, Air compressors for air solutions. They are also
providing turnkey solutions like complete supply of products, its engineering design, its
installation, implementation and heat recoveries, means they are the solution provider to
the industry not only the power generation equipment supplier.

3. Technology Oriented
Orient is the authorized distributor of GE Jenbacher gas generator sets in Pakistan and
Bangladesh and this product is having patented design and state of the art fuel governing
systems, extended maintenance interval and low ware and tear in its class means Orient is

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providing Superior Technology not merely the product.

4. Concern for Employees


Orient is compensating its employees with remuneration and fringe benefits competitive
with other employment opportunities and also providing them a place to contribute their
knowledge, skills, time and experience for the well being of company i.e. in long term for
them and ultimately providing value to customers.

5. Concern for Survival Oriented 34


Since, company is now providing industrial solutions therefore they are generating better
profits by means of value added services to customer and benefiting their customers,
owners, employees and society.

6. Services Oriented
Orient is providing dedicated services to their customers and they are having team of
highly skilled and professional engineers.
Basically, the nature of their product which is self power generation, utility, material
handling and engineering solutions demands the services of competent and trained people
round the clock philosophy is working on the same philosophy.

Orient endeavor to deliver the best customer experience by being responsive & effective to the
changing needs of various sections of society including governmental, industrial, commercial &
domestic needs in a way that benefits their customers, employees, stakeholders & society at
large. In doing so, Orient will meet customer expectations of highest quality, leading technology,
competitive pricing, energy conservation, customized designs & economically optimized
solutions with indigenous expertise. They believe in creating opportunities, utilizing and
rewarding the constructive and creative abilities, energies & vitality of their human

VISION STATEMENT
Provide economical and reliable energy solution to the industry by utilizing proven and latest
concepts in engineering and technology through most advanced piece of equipment of novel
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design duly backed up by knowledge and experienced professional engineers and technicians.

CORE VALUES

 Man Controls – Machine, Method, Material & Money

Follow 3 A’s Approach Follow 3 S’s Spirit.


GOALS AND OBJECTIVES
Be on the Actual place / spot  Speed
35  Look at the Actual Object  Specialization (Simplify)

 Confront the Actual Situation  Spirited attitude


(Concentration)
STRATEGIC GOALS

• Attain better grip on power industry by adding more and more values to customers and
intruding new products related to power sector.
• To increase the overall market share every year and try to maintain quality and services.
• Diversify business.
• Having satisfied employees to get the continuous growth.

TACTICAL GOALS
Keeping in view the market, Business Buyer Behavior, Brand SWOT, objectives for year 2008-
2009 is as under:
• To increase the market Share from 65 % to 70 % in Pakistan and overall share of Orient
Energy Systems in all over the world from 13% to 15%.
• Penetration in new segments like High Rise Building projects, Bio gas projects,
Entertainment, IPP project like IIL etc. and recreation centre.
• To curtail, administrative overheads by 5 % in order to get the maximum profit to spend
on the employees, tools and on the support of customers.
• Work for expertise in turnkey and Heat recovery projects to improve image and vision of
company.

MBO (MANAGEMENT BY OBJECTIVES)


The goals and objectives are developed by the manager and employees collaboration and the

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manager gets feedback and guides and supports the employee in reaching his/her goals with the
organization goals in mind. MBO lets Orient measure the performance of each department
vision and the performance of the individuals in the department. Departmental heads and
managers monitor the goals and objectives and rely on feedback to control deviations.

ORGANIZING
Orient Energy Systems has a very dynamic and progressive management structure in line with
industry practices.

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Competent human resources from within the company have fuelled tremendous growth by
excelling in functional management. In this innovative age of ever changing lifestyles, fueled by
the rampant development of technology; customer have been compelled to change their
purchasing habits. Orient Energy Systems responds to this challenge of providing best services to
customers based on convenience and in line with customer requirement.
The company has a large pool of professionals in all departments which contributes to the efforts
in selling, services and support.
A thorough study of the organization reveals that the hierarchy is a blend of centralized and de-
centralized. Middle and lower level managers and officers have a medium degree of autonomy
in making routine decisions and taking controlled risks. The benefits of this approach are evident
from the fast and continuous growth of the organization in recent years.

DEPARTMENTALIZATION
The organization has been divided into departments based on business areas:
o Gas generator sales
o Diesel Generator Sales
o Chiller Sales
o Compressors Sales
o Machinery Sales
o Large Power project sales / Special project sales
o Engineering / Technical
o Parts Sales
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o Product Support Services


o O & M Sales and Service

TOTAL PERSONNEL STRENGTH


The total number of employees working under Orient Energy Systems is as follows:

Sales 22
Engineering 33
Product Support Services 121
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Finance, HR & Administration 77
Parts 23
Operations & Maintenance 525
Sales Administration 13
Rental 275

TOTAL 1089

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SPAN OF MANAGEMENT
The span of management at OES is well established. There is not that much load on departmental
heads and managers, much due to the fact that duties of the subordinates are well delegated,
employees work in close proximity and the nature of the work is quite similar. Due to this,
subordinates require less time and supervision from their managers.
In circumstances when problems are serious and subordinates want to involve their managers or
departmental heads, then they come into action and guide them to resolve the issues effectively
and efficiently. OES’s span of control plays a vital role in improving efficiency and
effectiveness.

STAFF GRADING
Every staff will be placed in applicable Grade according the designations as per following table:

Grad
e Designations

1 Un skilled workers and other staff

2 Skilled workers and office staff

Sales rep, Supervisor, Junior Engineers & Junior


3 Executives

Senior Sales rep, Senior Supervisor, Engineers & Senior


4 Executives

5 Assistant managers & Deputy Managers L1


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6 Manager L1 & Deputy Managers

7 Managers & Senior Managers AGM L1

Assistant General Manager & Deputy General Manager


8 L1

9 Deputy General Manager & General Manger L1

10 General Manger

11 Directors

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DELEGATION
Orient’s employee tasks and objectives are well delegated, and most of the work is repetitive or
routine in nature. This is the reason which makes the achievement of goals and objectives much
easier. Managers have the authority to make decisions and the managers working directly under
the heads of their respective departments provide suggestions, which are used in final decision
making. Each employee is responsible for carrying out his / her duties and achieving their
targets. The head of the department is held accountable for any deviations from the expected
results.

COMMUNICATION TECHNIQUES
Most of the communication at Orient is verbal, face-to-face since employees work in close
proximity with each other. Orient, however makes use of other techniques such as written,
frequent telephonic conversations. Communication uses both top-down and bottom-up
approaches.

COMMUNICATION FLOW
Communication takes place in the organization both horizontally and vertically.

VERTICAL COMMUNICATION
Vertical Communication consists of downward and upward communications. Orient’s
downward communication takes place for job instructions related to a specific task,
explaining relationship between two or more tasks, explaining procedures and practices of
the organization, feedback on individuals and is also used to encourage a sense of mission

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and dedication of the organization.

Orient’s upward communication takes place to inform about progress on current work, when
serious problems arise and help is required and for providing information on new
developments in the banking sector.

HORIZONTAL COMMUNICATION
a. Friendly
b. Information Sharing
c. Communication Freely
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d. Difficulties and Problems of Subordinates
e. Responsibility of Organizational Goals
f. Team Work Approach

The management has formulated the rules for the communication control.

(i) Absence of proper communication between the management and employees help

Spreading rumors not conducive to the promotion of discipline in the organization.

(ii) The management must keep itself aware about the feelings of the employees in

respect of its actions and policies and take timely remedial steps when it finds that
some action is causing dissatisfaction among the employees.

(iii) On the other hand the employees need to be properly briefed and informed about

various management’s actions and policies to avoid creation of confusion and

misunderstanding

(iv) It is, therefore, of fundamental importance that all channels of communication

between the management and the employees are constantly kept open, and properly
utilized.
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ORGANIZATIONAL STRUCTURE

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LEADING

MOTIVATORS
ROLE MODELS
The leaders are strategically placed in the organization; heads of their respective departments are
transactional leaders, while the Directors are the transformational leaders

TRANSACTIONAL LEADERS

Mr. Shahid Anwar GM, Sales


Mr. M. Waseem GM, Product Support
Mr. Naseem Alam GM, Engineering
Mr. Wasi Ul Hasan GM, Operations

TRANSFORMATIONAL LEADERS

Mr. Muhammad Saeed Managing Director


Mr. Azhar Iqbal Deputy Managing Director
Mr. Anwar Ul Hasan Director, Sales
Mr. Naseem Ahmed Director, Technical
Mr. Javed Iqbal Director, Product Support

Orient puts a strong focus on growing leaders out of the workgroups, which motivates employees
to work hard. These managers prove strong role models for their subordinates, playing the part of
a catalyst and motivate the subordinates to out-perform themselves.
Upper management uses participative style of leadership, exhibiting their participation in every
process that brings the organization forward. Upper management regularly participates during all
the trade promotion activities and actively represents the organization in the wider arena.

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Middle managers in the organization act as facilitators and liaison personnel, working as
intermediaries to ensure smooth and effective communication between upper and lower
management through them. Their leadership style is therefore supportive.
Lower managers are individuals and groups that work in close association with the workers and
employees in determining their daily issues / problems, guiding them on improving themselves,
motivating them to actively participate in every process of the organization and hence improving
their efficiency. Their leadership style is hence a directive one.
Leaders in the organization actively exercise all the powers bestowed upon them. However, this
should be clearly noted out that coercive power is used very rarely (only in extremities) to
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influence the behavior of employees in reaching their goals. Powers most extensively used are
legitimate, reward, referent and expert, while information powers are exercised minimally.

MONETARY REWARDS FOR EFFECTIVENESS AND EFFICIENCY


Since OES uses an MBO structure of management, employees who achieve their goals
effectively and efficiently, their performance is acknowledged through various monetary rewards
and other benefits to maintain goal commitment. Without rewards, employees would never
work exceptionally well to reach their desired levels. These rewards play a large part in
motivating and constantly reminding them that effective and efficient work is rewarded.

Bonus payable to Diesel Engine Sales Engineers / Executives


Generator set KVA Bonus Required Gross Profit
0-25 1,250 10%
26-65 2,500 10%
66-250 5,000 10%
251-399 7,500 10%
400-500 10,000 10%
501-800 12,500 10%
801-1100 15,000 10%
>1100 17,500 10%

Bonus payable to Chiller Sales Engineers, HOD’s and Application Engineers

Chillers Bonus Required Gross Profit


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Sales Person 20,000 9%


Application Engineer 2,500 9%
HOD 5,000 9%

In Orient Energy Systems, rewards are distributed in relation to contribution i.e. means not only sales
people are been rewarded but their team consist of applications engineers, sales assistant, sales
administrator, project engineers and even their managers are having contribution in incentives which will
provides motivation to all and they are working like a team to achieve the organizational targets and
goals.

EMPLOYEE LEARNING
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Orient Energy Systems is a learning organization where employees are continuously attempting
to learn new things and apply what they learn to improve product or service quality.

PERFORMANCE APPRAISAL

ORIENT Energy Systems is using 360 degree feedback process as a performance appraisal for
managers that include evaluations from a wide range of people who interact with the
managers. The process includes self evaluations as well as evaluations from the manger’s
boss, sub ordinates, peers and customers.

Job Enlargement

Orient Energy Systems has strong belief on adding challenges or new responsibilities to an
employee’s current job.

MENTOR

Orient Energy Systems has strong belief on mentoring due to its highly experienced top
management which guides the middle management in the direction that helps them to
develop.

Succession Planning

Orient Energy Systems has strong belief on succession planning and its managers have clear

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view or tracking on the potential employees capable of filling higher level managerial
positions.

LEADERSHIP BEHAVIOR AND STYLE


The top management uses participative style of leadership. The style of management changes to
supportive leadership style at the middle and lower management. Sometimes participative style
of leadership can be seen at the lower level but seldom.

OERTIME, FOOD, CONVEYANCE, MOBILE AND FUEL ALLOWANCES

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Company has system to pay overtime to the persons as per Grade entitlement. Overtime Rates
will be Basic Salary per month /240 (Hrs in a month) x 2.
Where an employee is required to work extra than normal working hours and time exceeds 8.30
pm or works during holidays till lunch time , the employee in addition to over time (if entitled)
they will be entitled a food allowance for lunch / dinner at the rates defined in the table of
allowances Grade wise.
Employees (other than dispatch rider) who travel outside for official purpose and Company
transport is not provided, will be entitled Conveyance Allowance

INCENTIVES
There are incentives given to employees for achievement of goals by efficiency and
effectiveness, a few are as follows:

Training
Training is given to employees to enhance their skills and to help them in promotion and
growth. The employees are sent to foreign training to Austria or to attend courses locally to
enhance or build new shills. The training plays as a sign of promotion and growth and helps
in motivating the employee. Appropriate training to create awareness about the discipline is
how much it is valued by the management, how it is to be observed and what the company as
well as the individual will gain if he observes the norms of discipline, is a rare phenomenon.
Without such training the employees will hardly be tempted to observe the norms of
discipline.
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Promotion
The promotion is from within the organization because of this factor other employees are
always motivated to out-perform themselves. This incentive at Orient plays a crucial role in
keeping the employee motivated.

TYPES OF PROMOTIONS OR APPRAISAL


The organization as per the recommendation of concerned department and the HR department
consider the following modes of promotion.
1. Horizontal Promotion.
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2. Vertical Promotion.
3. Dry Promotion or Re-designation.

Horizontal Promotion:
Promotion is made within the same category, within same department or to some other
without a higher scale with only a raise in emoluments.

Vertical Promotion:
Promotion is made into a higher scale or grade with a raise in total perks and emoluments,
authority and increased opportunities. Promotion made from lower level management to
middle level or higher level management.

Dry Promotion or re-designation:


Promotion made without any raise in total emoluments due to some financial or other
reasons.

Monetary Rewards
If goals are met effectively and efficiently a high increment is give an increment of 15% on
basic salary is normal every year and when performance is high measured by goals and
objectives the employee gets a higher increment. Higher increment always keeps the
employee on his/her feet.

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CONTROLLING

FEEDBACK MECHANISM
The departmental heads arrange meetings with managers on quarterly bases for taking measures
to periodically follow-up to see how effective services are being provided and how better their
products and people are getting day by day.
Surveys, analyses, discussions, and appraisals resulting from the above-mentioned feedback
mechanism provide benchmarks by which departmental heads bring about controls against any

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future expected deviations in services and support and product performance and procedures, by
providing guideline to the managers on quarterly bases.

CONTROLLING MECHANISM
Controls are a key part of management and in a fast paced business environment they help keep
the employees on their feet and play a vital role in organization goal achievement.

GOALS AS CONTROLS
Quantitative goals are set as controls in all departments. These goals are closely monitored
and there expected results are measured with their actual results. This gives a firm idea if the
goals are being met or not. The goals are used as a control to measure performance.

INTANGIBLE CONTROLS
Customer satisfaction is also used in certain departments like sales, parts and services and it
is another important control. This control is very difficult to set, as they are not expressed in
any physical or monitory sense. If the customer is satisfied they must return.

RESOURCES
Resource (People and tools) and funds and are also be used as controls, what resources and
funds are being allocated and what is being achieved from them.

Leave Policy
All leaves will be applied for by all employees, duly approved by respective In-charge &
concerned Manager and be given to Admin Department otherwise leaves will be subject to
Orient Energy Systems | 12/13/2008

deduction.

Admin is maintaining the record of leaves of all employees. There is an extra point in bonus
for being punctual or having less casual leaves.

• Earned /Privilege Annual Leave


• Casual Leave
• Sick Leave
• Maternity Leave
• Leave without Pay
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STAFF MEDICAL ENTITLEMENT
Company has following policy:

• First aid treatment for injury/sickness sustained during the course of duty is provided free
of cost by the Company including hospitalization and medicines expenses. Head of
Department should duly fill an accident report.
• Employees covered under Social Security can get treatment from Social Security
Institutions.
• Only those employees are entitled to medical reimbursement with the Company has
committed in writing.
• Medical bills up-to a limit of 1(one) Gross salary per Annum are reimbursed upon
submission of the original bills proportionate to monthly entitlement.
• Unclaimed allowance is exhausted on year end at June 30th.
• There are no conditions attached for the reimbursement, how-ever the staff members are
instructed to keep the balance intact for emergency needs.
• Company will arrange staff medical health insurance as per discretion of the
management.

AUTHORITY DELEGATION Orient Energy Systems | 12/13/2008

Rules regarding the delegation of powers

• All expenses of routine nature will be approved at Managers level.


• No Capital Expenditure will be incurred without the prior specific approval in writing
from Chief Executive.
• In order to accelerate the process of decision-making and achieve maximum efficiency,
every Manager can further delegate authority to his subordinates within his own limits
34of
authority. Before delegating the authority the Manager concerned will ensure that his
subordinates possess the correct decision making capability. He will also keep in mind
that he cannot delegate to his subordinates the responsibility for the outcome of the
results.
• The powers given to any Manager/Head of Department will be treated as a delegation of
authority from his superior. Every Manager/Head of the Department will be
ultimately responsible for all the results in the area of work under him. He will have
a right to withdraw anyone or all the authorities of his subordinates, if he is convinced
that the subordinate is not capable of making correct decisions or the subordinate is
persistently misusing his powers.
• In order to enable a subordinate to make correct decision a free flow of information
between superior and subordinate is very essential, the subordinate should be furnished
with guidance, information and interpretation of the authority delegated to him.
• The limits of authority applicable to the superior will
automatically be applicable to his subordinate.
• Every Manager/Head of Department will exercise
powers only in his own area of activity unless specifically permitted to participate in the
decision concerning the other areas.
• No Manager/Head of the Department will be allowed to
make a mockery of the limitation of financial powers by purposely breaking a bigger
transaction into a number of transactions in order to bring it within his level of authority.
• If the resources (man or material) of one department are
Orient Energy Systems | 12/13/2008

required by another department the prior approval from the head of department is
required for relocation of resources.

CONTROLLING DEVIATION
Deviation occurs when the employee loses focus of the goals and objectives. To keep that in
control, weekly meetings are held and usually the managers instantly handle such a situation to
avert more deviation problem.

FEEDBACK

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Feedback is also used as a control, if the managers find any deviation or information lacking they
will know that something is wrong and the standard is not being met.

BUDGET
The budget is set for over all year and actual progress is compared with the budget and variations
are analyzed. The budget plays a vital role in understanding the variations. At the start of each
year every department head prepares a budget of the amount of funds he/she needs for achieving
the objectives and goals.

INTERNAL AUDIT
The internal audit department plays a key role in controlling because it closely monitors the
performance of the company and also evaluates that the company is following rules and
regulations as per management advice and also as per foreign principle GE Energy. The internal
audit department helps to follow laws and maintain integrity among the rules and regulations
specified by GE Energy and Top management.

EXTERNAL AUDIT
There is yearly audit and a professional firm of Chartered Accountants does it and it verifies the
working and reports directly to Top Management.

Internal Reports
Internal reports are generated on quarterly, monthly and weekly basis. These reports are
monitored strongly by the head of the respective departments and written and verbal
explanations are sought in case of any deviation. Monthly reports include:

• Sales Performance reports Orient Energy Systems | 12/13/2008

• Expense Reports
Since, budgets are allocated to every department for the entire fiscal year. However, the
finance department on a monthly basis monitors expenses.
Management meetings are held on a monthly basis to discuss issues regarding sales and
project completion targets, future plans etc. The GMs of the departments participate in these
meetings in addition to any other low level officers if required.

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SAFETY & HEALTH
It is a policy of the Company to give paramount importance to the health and safety of its
employees. The Company aims to conduct its activities in such a way as to minimize any
possibility of danger to health and safety of its employees or to other persons on its premises.
The Company complies with the safety standards as prescribed in the Factories Act and may also
set down additional standards to meet any future requirement of health and safety. Safety Rules,
in their true spirits are been observing and adhered by all employees.
The compensation on accidents/fatal accidents/hazardous occupational accidents is made in
accordance with the Law.
All employees are following the instructions related to following areas:

• Cleanliness
• Orderliness
• Safety Guard/Devices
• Working Process
• Safety Equipment
• Uniform
• Smoking
• Waste Material
• Operating & Safety Instructions
• Periodic Medical Checkups
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• Electricity
• Containers
• Machine & Equipment
• Safety at Work Place
• Evacuation & Fire Instructions
• Accidents
• Personal Health
• Company’s Responsibility

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• Mutual responsibility

QUALITY POLICY
Orient has clearly defined quality policy and instructions for products to customer, so that
products will be:

• As per specified quality standards.


• At competitive price.
• On-time delivery and
• Prompt after-sales service

Orient has clearly defined quality policy and instructions to develop human and organizational
resources to achieve these objectives. To maintain quality and office protocol they want all
associates should be quality conscious. Therefore, everyone is required to strictly follow these
guidelines on quality.

• Only rubber-soled and safety shoes are allowed in the work shop areas. Be sure to wear
appropriate shoes when working. Slippers without back strap are not allowed.
• Bringing in of food, drinking and eating, are allowed but only in specified time and areas.
• Do not indulge in unnecessary time wasting activities.
• Do not get involved in gossip & / or rumor spreading.

CAR POLICY & POOL VEHICLES


Company maintained car is provided to managerial and above staff, sales personnel, as per Orient Energy Systems | 12/13/2008
requirement of nature of job and as per recommendation of head of department.
For business exigencies (pool Car) where such car is considered essential for performance of job
assigned to department for departmental official work
The Company bears expenses of insurance, motor vehicle tax, repairs and maintenance including
replacement of parts on Car provided to an employee.
Managers who have been provided with Company’s car are entitled to avail the facility of Petrol/
CNG as per approved limit. For fuel PSO or other oil supplying company monthly entitlement
34
cards will be provided which will be paid by the company on monthly basis. Employees should
use these cards for use of fuel in company provided cards only.

Travelling Policy
Company has a define policy for Travelling with return tickets, hotel stay, food allowances and
daily allowances which favors the employees during travelling.

MIS Policy
Company has a define MIS policy for following:

• Antivirus Policy
• Data storage on File Server Policy
• Desktop Laptop Entitlement and Replacement Policy
• Laptop Policy
• Desktop Policy:
• Desktop Laptop License Application Policy
• Domain Email ID Creation and Deletion Policy
• End-User Password Guideline Policy
• Internet & Messenger Policy
• MIS Clearance Policy
• Official Email Usage and Data retention Policy
• USB & Data Carrying Devices Policy
Orient Energy Systems | 12/13/2008

• Wireless LAN Connectivity Policy

CONCLUSION
A sample of 34 employees was taken randomly from various departments ranging from senior to
mid level and junior employees and the following results were obtained.

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• Most of the employees confided that the remuneration, Increment, Promotion,
benefits, facilities, training opportunities and status they enjoy are fair or relatively
better than those available in the market for the same work.

• The policies regarding the rights and obligations of the employees are intact but are
not properly communicated to the employees which may result in negative emotions
and can lead to deviant workplace behavior.

• Majority of the workforce is satisfied with the compensation and benefits offered to
them by the organization, their job description and their relationships with their
juniors, peers and superiors and overall organizational culture was also considered as
satisfactory.

QUESTIONNAIRE ANALYSIS

Section # 1
Com pensation, tangible/Intangible benefits

12% 0% 9%
12% Very Dissatisfied
Dissatisfied
Undecided
Satisfied
Very Satisfied
67%

The employees in general are satisfied with the compensation and benefits offered by the Orient Energy Systems | 12/13/2008

organization, 12% of the employee were very much satisfied with the organization’s
compensation and benefits offerings, 67% of them were satisfied, 12% of them were neither
satisfied nor dissatisfied and 9% of the surveyed workforce was somewhat dissatisfied with
organization’s remuneration and benefits offerings.

Section # 2

34
Job Description / Workplace Relationships

9% 3% 6% Very Dissatisfied
12%
Dissatisfied
Undecided
Satisfied
70% Very Satisfied

The employees in general are satisfied with their job description and workplace relationships, 9%
of the employee were very much satisfied with the jobs they have been assigned and their
relationships with their colleagues, 70% of them were satisfied, 12% of them were neither
satisfied nor dissatisfied and 6% of the surveyed workforce was somewhat dissatisfied with their
job description and workplace relationships and 3% of the investigated workforce was very
dissatisfied with the job description and job related relationships most of them were complaining
about the work stress and job enlargement not been offered.
Orient Energy Systems | 12/13/2008

Section # 3
35
Organizational Culture

15% 3% 6% Very Dissatisfied


9%
Dissatisfied
Undecided
Satisfied
67% Very Satisfied

Organizational culture in common is assessed as satisfactory, 15% of the employees were very
much satisfied with the workplace culture, 67% of them were satisfied, 9% of them were neither
satisfied nor dissatisfied and 6% of the surveyed workforce was somewhat dissatisfied with the
organizational culture and 3% of the investigated workforce was very dissatisfied with the
organizational culture.

Orient Energy Systems | 12/13/2008

RECOMMENDATIONS 34
Based on our study of the organization, we have come up with the following set of
recommendations:

• A need to establish a link between the incentive rewards, employee performance and
company’s bottom line.
• A need to encourage every employee to participate in problem solving.
• A need to highlight the areas where OES need to improve its services and support for all
Customers.
• A need to do the employee assistance programs.
• A need to add complexity and meaningfulness to person’s work.
• A need to add job rotation in order to train the individuals in various functional areas of company
and help them to understand the company better and become the valuable asset for company in
long term.
• A need to communicate the company policies to the company’s personnel regarding their
jobs.
• A need to produce awareness in the employees so that they know why they should learn.
Orient Energy Systems | 12/13/2008

35
APPENDIX B

QUESTIONNAIRE

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APPENDIX C
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Orient Energy Systems | 12/13/2008

35
COMPANY PROFILE