HRM Functions

PAKISTAN PETROLEUM
LIMITED
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Human Capital and Organizational
Behavior
PAKISTAN PETROLEUM LIMITED
Submitted To
Mr. Muhammad Saleem
Hamdard University Of Management Sciences - HIMS
Submitted By
Omaid Ansari (PGDN-0235)
Haseeb Ahmed (PGDN-0230)
Syed Mudassir Hassan (PGDN-0242)
Submission Date
September 10, 2009
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Hamdard University Of Management Sciences -
HIMS
Executive Summary
Pakistan Petroleum Limited (PPL) is Pakistan’s one of the oldest and

the largest upstream Oil & Gas Company. It is one of the pioneer
exploration and production (E&P) companies in Pakistan oil and gas
sector. PPL was incorporated in June 1950 with the Burmah Oil
Company (renamed Burmah Castrol) and GoP as its principal
shareholders. The Company’s holds operator ship of major oil and gas
fields including Sui, Kandhkot, Adhi and Mazarani, while its non-
operated portfolio includes interests in the Qadirpur, Miano, Sawan and
Tal fields. The Company’s exploration portfolio includes operated and
non-operated joint ventures in 10 onshore blocks and 2 offshore
blocks.
PPL holds joint ownership with the Government of Balochistan in Bolan

Mining Enterprises (BME), which is involved in the business of mining
exploratory well-drilling grade barite powder. BME is the operator of
the Gunga barytes mine in Baluchistan.
PPL’s head office is located in Karachi. The company’s total staff

strength is about 2,536 employees including 640 management staff
and 1,896 non-management staff.
PPL considers people as the most important resource and believes in

value creativity and innovation. Advocates teamwork and respects the
environment and is committed to its protection. It is fundamental
policy of Pakistan Petroleum Limited (PPL) to conduct its business
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with honesty, integrity and in accordance with the highest ethical and
legal standards.
The role of Human Resources function is to support the business as a

strategic partner and to provide such conditions where the employees
can achieve their ultimate potential. The jobs at PPL are professionally
challenging and rewarding. They keep employees reasonably stretched
for achievement of predefined objectives and provide a sense of
professional satisfaction
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ACKNOWLEDGEMENTS
We thank Mr. Muhammad Saleem for providing us the opportunity to

practically learn the practices, norms, policies and procedures
prevalent in the corporate world.
We also thank people at Human Resources Department of Pakistan

Petroleum Limited for being so helpful. Firstly, Mr. Bilal Khwaja & S.
Muzaffar Hussain (MTO Manager HR Dept) and then Mr.
Muhammad Hamdan (Assistant Business analyst HR Officer) who
expertly and patiently guided us through, and provided us with their
valuable time and resources required.
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Table of Contents
1 INTRODUCTION..................................................................................................................................8
1.1 Merits of Organizational Structure.......................................................................................15
1.2 Demerits of Organizational Structure..................................................................................15
2 ORGANIZATIONAL CULTURE...............................................................................................................16
2.1 Environment for people at work...........................................................................................16
2.2 Team Norms.......................................................................................................................16
2.3 Respect at work...................................................................................................................17
2.4 Competitiveness..................................................................................................................17
2.5 Diversity..............................................................................................................................17
3 HUMAN RESOURCE POLICIES............................................................................................................19
2.6 Employee Selection.............................................................................................................20
2.6.1 Entry Level....................................................................................................................21
2.6.2 Experienced Professionals...........................................................................................25
2.6.3 Internship......................................................................................................................27
2.7 Recruitment Process at PPL...............................................................................................27
2.7.1 Requests for Recruitment.............................................................................................28
2.7.2 R&S checks establishment and reviews applications...................................................28
2.7.3 R&S shortlists candidates ............................................................................................29
2.7.4 R&S Calls candidates for interview ..............................................................................29
2.7.5 Interviews candidates...................................................................................................29
2.7.6 Interviews and recommends final selection..................................................................30
2.7.7 R&S issues letter of offer..............................................................................................30
2.7.8 Offer Acceptance..........................................................................................................30
2.7.9 Company medical officer conducts medical..................................................................30
2.7.10 R&S Updates case file................................................................................................31
2.7.11 R&S notifies T&D to prepare Induction program.........................................................31
2.8 Training ..............................................................................................................................31
2.8.1 Local Training...............................................................................................................32
2.8.2 Foreign Training............................................................................................................33
2.9 Performance Evaluation......................................................................................................34
2.10 Rules of Service................................................................................................................35
2.10.1 Salary Increments.......................................................................................................36
2.10.2 House Allowance........................................................................................................36
2.10.3 Utilities Allowance.......................................................................................................36
2.10.4 Conveyance Allowance..............................................................................................37
2.10.5 Pick & Drop facility for Field Visits..............................................................................37
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2.10.6 Hospitality Allowance..................................................................................................37
2.10.7 Education Allowance..................................................................................................37
3 MOTIVATION............................................................................................................................38
3.1 Organizational Reward Systems.........................................................................................38
3.1.1 Annual Basic Salary Increment.....................................................................................38
3.1.2 Incentive Bonus Scheme..............................................................................................39
3.1.3 Travel and Transfer......................................................................................................39
Long Service Awards............................................................................................................40
3.2 On Service Benefits.............................................................................................................40
3.2.1 Insurance......................................................................................................................40
3.2.2 Leave............................................................................................................................41
3.2.3 Medical Assistance.......................................................................................................41
3.2.4 Loans............................................................................................................................42
3.3 End service benefits............................................................................................................42
3.3.1 Retirement Benefits Plan..............................................................................................42
4 PERSONAL CHARACTERISTICS SURVEY................................................................................................44
5 CONCLUSION.................................................................................................................................46
6 REFERENCES.................................................................................................................................47
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Functions of Human Resource Management
1 Introduction
Pakistan Petroleum Ltd is Pakistan's Premier E&P company, the oldest and largest
Exploration and Production Company in the country was incorporated on 5th June
1950 subsequent to the promulgation of the Pakistan Petroleum Production
Rules, 1949 with the main objective of conducting exploration, development and
production of Pakistan's oil and natural gas resources. PPL inherited all the assets
and liabilities of the Burmah Oil Company (Pakistan Concessions) Limited and
commenced business on 1st July 1952.
PPL and its ex-parent Burmah Oil Company have been active in the subcontinent
since the early part of the 20th century. A total of 239 wells including 65
exploratory and 174 appraisal / development wells have so far been drilled which
resulted in the discovery of about 19.90 Tcf gas (both operated and non-operated
leases). A gas condensate/oil field at Adhi with original recoverable reserves of
1,253 MT liquefied Petroleum Gas and 39.4 MMbbl of oil/condensate was also
discovered by PPL.
The Company also operates a Baryte mine in Balochistan province. It produces oil
well drilling grade Baryte powder from the mine, which has proven reserves of
1.25 million tones. For the year 2004-05, PPL's share of average production from
its operated and non-operated fields was 953 MMcfd of gas, 1,372 bpd of oil/NGL
and 26 tones per day of LPG. Production of gas from these fields meets about
25.1% of the country's indigenous production. The gas, LPG and NGL production
from PPL operated and non-operated fields for the year 2004-05 in terms of oil
equivalent, was about 171,205 barrels of crude oil per day.
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The Company has a staff of about 2520 as at 31 May, 2006 employees with about
431 qualified technical staff in the fields of engineering, computer and earth
sciences. PPL has well established IT department and all staff in the Head Office
has access to computers and are interconnected through Local Area Network
(LAN). The Wide Area Network (WAN) has also been established connecting PPL's
three major producing fields and Regional Office in Islamabad with the Head
Office at Karachi. The Company has implemented SAP in 2004 integrating core
business processes using Costing, Finance, Human Resources, Materails
Managemnet, Plant maintenance and Project Systems modules.
The Government of Pakistan (GoP) in September 1997 purchased the entire

equity interest of Burmah Castrol PLC, formerly Burmah Oil Company, in the
Company (comprising 21 million ordinary shares of Rs.10 each) representing
63.91 percent of the Share Capital thereby increasing its holding in the Company
to 93.35 percent. Subsequent to June 2004, the GoP has disinvested a portion of
its equity in the Company equivalent to 15% of the paid up share capital of (i.e.
102.873 million shares of Rs.10 each) through an Initial Public Offering (IPO). The
GoP has made a policy decision to privatize PPL and IPO is a significant step
towards this direction.
A consortium led by Merrill Lynch International and KASB securities (Pvt) Limited
have been appointed by the Privatization Commission (PC) as the Financial
Advisor (FA) for the strategic sale of GoP's 51 % interest in the company. Five (5)
parties were prequalified as potential bidders for the transaction. The
Government of Pakistan continues to pursue the privatization process through
sale of its majority interest in the Company to a strategic investor and remains
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committed to proceed with the transaction with a view to concluding the process
at an early date
Company Vision
“Our vision is to maintain PPL’s position as the premier producer of hydrocarbons
in the country and at the same time make a strategic transition to become an
international company, exploiting oil and gas resources beyond the borders of
Pakistan, resulting in value addition to shareholders’ investment and to the
nation as a whole.”
Company Mission
“Our mission is to optimize hydrocarbon production and pursue an aggressive
exploration program in the most efficient manner on the local as well as
international horizons through a team of professionals utilizing the latest
developments in the exploration and production technology and maintaining the
highest standards of health, safety and environment.”
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Historic Milestones
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Year Event
1952 Discovery of Pakistan's Largest Gas Reserves at Sui
Functions
1955 of Human Resource
Commencement Management
of pipeline quality Natural Gas supply to
Karachi for industrial and domestic use within record time of
three years of discovery at Sui
1959 Discovery at Kandhkot Gas Field. Discovery of Gas at

Mazarani Field
1976 Commercial Production of Barytes by Bolan Mining Enterprises
1978 Crude Oil discovery at Adhi field
1980 Commercial Production of Crude Oil from Adhi field
1982 Execution of Sui Gas Well Head Price Agreement (1982 GPA)
stipulating cost-plus fixed return Gas Pricing Formula
1986 Commissioning of Sui Field Gas Compression Project (Phase 1)

in Sui Main Limestone (SML) formation
1987 Start of Commercial Production From Kandhkot Gas Field
1990 Installation of Liquefied Petroleum Gas (LPG) and Natural Gas

Liquid (NGL) Plan and Commencement of LPG, NGL and gas
production from Adhi
1995 Commencement of gas production from Qadirpur Gas Field

(operated by a Joint Venture Partner)
1997 Completion of Phase II Extension of Sui Field Gas Compression

Project at SML and three Turbo Compressor Trains in Sui
Upper Limestone Reservoir
2000 Commencement of Extended Well Test (EWT) Production from

Block-22, Shikarpur
2001 Supply of gas from Miano Gas Field (Operated by a Joint

Venture Partner)
2002 Dismantling of 1982 GPA and execution of new market based

Sui and Kandhkot Gas Price Agreement linking the Sui and
Kandhkot gas price with international oil prices
Acquisition of Sui gas Purification Plant jointly owned by
SSGCL and SNGPL
2003 Commencement of gas supply from Mazarani Gas. Field

Commissioning of Gas Processing Facilities (Phase 1) and
supply of gas from Sawan Gas -Field.
12 - (Operated by a Joint
Venture Partner) Discovery of Pipeline Quality Gas Reserves in
Tal Exploration block, NWFP (operated by a Joint Venture
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Managing Director
Deputy Managing Internal Audit

Exploration Function Director
Production Corporate
North South Services
Function Project And
Division Division
Technical Services
Human
Joint Field Resources
Operation Operation Reservoir Production
Engineering Engineering
Material &
Procedure
Drilling & Compression
Mining Department.
Land &
Licences
Gas Quality
Department
Information
Technology
IT
Industrial
Relation
Material Public
Purchase Relation
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1.1 Merits of Organizational Structure

 Supports professional identity and career paths
 Permits greater specialization
 Easier supervision
1.2 Demerits of Organizational Structure

 More emphasis on subunits than organizational goals
 Higher dysfunctional conflict
 Poorer coordination and requires more controls
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2 Organizational Culture
2.1Environment for people at work

At PPL employees are expected to contribute to the success of the
business by pursuing the highest standards of ethical behavior and
integrity. Pakistan Petroleum Limited is committed to excellence in all
spheres of performance. PPL believes its human resource as its biggest
asset. It provides a congenial, healthy, productive and professional
work environment for its employees.
People view the PPL as an extension of oneself; they feel good about
what they personally achieve through the organization and have
exceptional Cooperation. Individual goals are aligned with the goals of
the company and people do what it takes to make things happen. As a
group, the organization is more like family providing personal
fulfillment which often transcends ego so people are consistently
bringing out the best in each other. In these conditions, Leaders do not
develop followers, but develop other leaders. Almost everyone is
operating at the level of Organization.
2.2Team Norms
PPL believes in team work. All team members are equal and every
team member's opinion is thoughtfully considered. Team members
speak respectfully to each other and make decisions by consensus, but
majority will rule if timely consensus is not reached, conflicts are
resolved directly with the persons in conflict
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2.3Respect at work
PPL recognizes that effective and productive relationships at work
depend on positive inter-personal behavior between all employees at
work, and that all employees have a responsibility and obligation in the
maintenance and promotion of such relations. PPL emphasizes to have
a respectable, responsible, courteous and caring attitude to all people
within the organization
PPL does not tolerate any form of discrimination, offensive behavior,

harassment or bullying and believe that all workers have a right to be
treated with dignity and respect. Any complaints will be dealt with
seriously, regardless of the seniority of those involved and anyone
found to be behaving unacceptably will be subject to disciplinary action
up to and including dismissal
2.4Competitiveness
PPL promotes healthy competition amongst its employees and
departments
2.5Diversity
PPL is an equal opportunity employer and treats job applicants and
employees in the same way, irrespective of sex, sexual orientation,
marital status, age, color, race, nationality, religion or ethnic origin.
PPL believes that a diverse workforce drives greater innovation and

better business performance and encourages a wide range of skills and
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hires a cultural mix of people who bring different but complementary

values, attitudes, talents and knowledge to the organization
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3 Human Resource Policies

Human Resources look after manpower requirements and ensure that
staff contribution to the business is fully maximized. It operates in
partnership with the field locations and provides advice on human
resource management, policies and practices which affect all staff at
all levels.
Staff compensation & benefits, employment policies, remuneration

surveys, job analysis, job evaluation, recruitment, employee / industrial
relations, manpower planning, staff appraisals, training and career /
succession plans, security at field locations and staff health are some
of the areas which fall under Human Resources.
In a nutshell, the role of Human Resources function is to support the

business as a strategic partner and to provide such conditions where
the employees can achieve their ultimate potential.
Working at PPL
The jobs at PPL are professionally challenging and rewarding. They

keep employees reasonably stretched for achievement of predefined
objectives and provide a sense of professional satisfaction
Challenges within PPL primarily emanate from its corporate vision to

maintain its position as the premier producer of hydrocarbons in the
country. Use of emerging technologies, competitive pressure, strict
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requirement of health, safety and environmental compliance and ever

demanding expectations of communities where we operate make the
job very demanding and challenging.
As a PPL employee, you are expected to contribute to the success of

the business. Your line manager works together with you to manage
performance and your career development, effectively identifying
areas where improvement or additional expertise is required.
In order to help you perform your assigned tasks in a professional way,

PPL offers a well-structured employee development program of human
resource excellence through a wide range of training options. The
training courses are offered both locally and internationally and are
carefully selected in order to ensure compatibility with the individual’s
aptitude and its relevance to his/her area of responsibility.
The primary focus is on development of personal effectiveness skills

and the immediate demands of the job. Our training programs are
designed with our employees in mind and focus on behavioral aspects
of leadership, people management and the management of change.
The learning which takes place is concerned with acquiring new
knowledge, understanding new concepts, developing new skills, and
behaving in a changed manner.
2.6Employee Selection
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PPL is at the heart of the exploration and production business, and one
of Pakistan’s most successful organizations. PPL is committed to
recruiting high caliber individuals who have the knowledge, experience
and expertise to fulfill the organization's strategic objectives.
We are committed to providing fair opportunity to all staff on the basis

of merit and suitability regardless of sex, race, ethnic origin, religion or
family status.
We are committed to attracting, training, developing and rewarding

talented people so that they continue to operate at their peak level.
We always strive to hire high potential individuals who share the same
values and are team players.
PPL invests heavily in employee development by structuring

personalized development plans for each employee. Our employees
are trained in core technical skills and latest developments. We pride
ourselves in building and maintaining a corporate culture that is
conducive to high performance, teamwork and is responsive to
change.
Recruitment at PPL is carried out at three levels:
 Entry Level
 Experienced Professionals
 Internship
2.6.1 Entry Level
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PPL is committed to the ongoing training and development of its

Trainees. They are encouraged to maximize learning opportunities
which will enhance their skills throughout their career.
The Company has a two-years on the job training scheme in place that
is meant for fresh qualified professionals such as engineers, drillers
(mechanical engineering graduates), geoscientists (Geologists &
Geophysicists), IT professionals, human resource professionals and
business graduates, etc. The trainees are inducted in the Company
keeping in view their existing strength, Company’s need and
availability of resources required for their effective and meaningful
practical training. The selection of trainees is based on competitive
written test and series of interviews.
The two-years hands-on training provides the trainees a great

opportunity to learn about the latest technology in their respective
professions on the one hand and on the other it helps them integrate
into PPL's business culture if they successfully complete their training
and are offered regular employment in the Company.
The aim of providing this comprehensive training is to equip the

trainees with practical skills in their professions. They get valuable
experience through working on state-of-the-art machinery, equipment
and systems. At the same time they get exposure to the petroleum
exploration and production operations. We also provide them
opportunities to develop their soft skills through teamwork that help
them meet the professional challenges lying ahead.
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During the training line managers review trainees’ progress regularly

and provide them opportunities to enhance their learning. PPL has a
merit oriented culture and on successful completion of training, regular
employment is offered to the trainees if:
o The trainee has acquired the required level of skills during

training.
o The trainee’s performance as trainee justifies consideration
for offering regular job in the Company, and
o A suitable regular position exists at the time.
Criteria for Selection as Trainee
Engineering graduates having gone through a four-year degree

program and others who have completed master’s degree in
Geosciences, Information Technology or Management Sciences are
eligible for induction as Trainees. Only recent graduates, from
accredited local and foreign educational institutions, having first class
academic record from Secondary School Certificate (or equivalent) to
graduate / masters degree, whichever the case may be, up to the age
of 27 years are eligible to apply. Whilst the academic results are
important to us, equally important is candidates’ performance
throughout the selection process.
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2.6.1.1 The Selection Process
There are three stages for graduate selection as Trainees:
2.6.1.1.1 The Assessment Test
Here candidates’ academic knowledge, numerical skills, and

general know-how are assessed. The test is usually of one hour
duration and is divided in two parts:
a. General paper carrying 60% marks has basic English, basic

Mathematics and questions that test the observation ability and IQ
of the candidate.
b. Technical paper with 40 % marks consists of basic and
conceptual questions related to the professional field of the
candidates.
2.6.1.1.2 The Application Form
On clearing the assessment test the candidates are short listed

according to their test scores and those who come up to the
Company’s standard are called for interview. Before appearing for
the interview each candidate is required to fill out an application
form carrying personal & family information, educational
achievements, experience (if any) and other related information.
2.6.1.1.3 The Interview
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Panel interviews are then conducted during which candidate’s

academic achievements, challenges faced in carrying out specific
assignments and personal qualities demonstrated in managing
difficult situations etc. are discussed. During these interviews,
candidate’s technical know-how, confidence level, mental
alertness and ability to express ideas etc are assessed by the
interview panel. Being a two-way process the candidates are
provided an opportunity to ask any questions they may have
about the Company and career development prospects. We give
considerable importance to candidate’s extra curricular interests
such as social/group interests, positions of leadership held during
student life, pastime hobbies and involvement in sports etc. We
use this information to assure ourselves that candidate’s
university/college life has been more than just academic
achievement.
2.6.2 Experienced Professionals
PPL strongly believes that besides nurturing raw talent and

transforming them into fully proficient members of PPL team there
is a need to induct experienced professionals in the Company
from time to time.
These experienced professionals bring a whole set of new ideas

and way of working to our organization resulting in improved
quality, productivity and efficiency.
In this section, we aim to provide information that matters to you

if you have at least 5 years' relevant experience and have a
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professional degree, preferably Masters in selected engineering,

geosciences, finance & accounting and management sciences
disciplines from reputable accredited local and foreign Universities
/ educational institutions.
2.6.2.1The Application Process
The purpose of our application process is to find out the best

match of our job requirements and opportunities in PPL with your
skills, abilities and career ambitions.
There are 2 stages of application process for experienced

recruitment at PPL:
2.6.2.1.1 CV/Resume
The first stage is for candidates to send us their CV/resume ideally

providing year wise details of achievements and job
responsibilities during employment history together with complete
details of academic qualifications.
2.6.2.1.2 Interview
After initial screening, short-listed candidates would be required to

fill in an Application Form. This form is designed to supplement the
details covered by candidates in their CV/resume.
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The next stage is a series of panel interviews conducted by

experienced HR personnel along with line managers.
Primary purpose of these interviews is to make a prudent

judgment about candidate’s technical know-how and behavioral
skills and their judicious applicability in specific situations in past,
candidate’s mental alertness and expression of ideas etc.
2.6.3 Internship
An internship assignment with PPL gives an opportunity to relate

classroom learning of various complex theories with real life
business challenges
Internships in PPL are generally offered, to final year students of a
four-year Bachelors degree program or first or second year of
postgraduate degree program, during May - September every
year for a period of 6 - 8 weeks.
The placement of candidate is tailored to his/her particular

academic interests and abilities and he/she is assigned a specific
project involving its planning and execution. Reasonable
allowance is paid during candidate’s stay with PPL.
2.7 Recruitment Process at PPL

This process identifies steps involved in the recruitment of PPL
staff. It begins with the functional area identifying a need in their
area. Recruitment and Selection Section (R&S) shortlists
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applicants. Representatives of R&S and the functional area

interview candidates for the position. The final decision to hire
rests with the functional area. The process concludes with R&S
sending an offer letter to the candidate.
2.7.1 Requests for Recruitment
The functional area initiates the process by requesting R&S to

start the recruiting process. The functional area provides R&S
criteria to select applicants.
2.7.2 R&S checks establishment and reviews

applications
R&S retrieves job applications from the system. R&S regularly

updates the CV database whenever they receive a suitable CV. If
deemed necessary, R&S advertises the position in the
newspapers. R&S may also contact headhunters if required.
Any recruitment requirements over and above establishment

figures need to be approved by the GMHR.
In case of clerical and unskilled labor requirements in Sui, hiring

locals is preferred. Vacancy is also advertised on PPL notice
boards in Sui. For Karachi based positions, it is posted at the
Headquarters.
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2.7.3 R&S shortlists candidates
R&S shortlists candidates from the applications. R&S uses

various criteria in short listing candidates such as Qualification,
GPA, and Work Experience.
2.7.4 R&S Calls candidates for interview
HR calls short listed candidates for interviews.
2.7.5 Interviews candidates
Depending on the level at which the individual is being hired,

different individuals within the department will interview the
applicant.
• The Chief will interview junior executives and non-

MPT staff.
• The Manager will interview Senior Executives up to

grade ten.
• The General Manager will interview any indivual

being hired above grade ten.
An individual from HR is also present at the interview. He/she is

there to judge candidate’s personality on an organizational level.
R&S posts interview assessments into the case file. Depending
on the interview, candidates will be further short listed for the
second interview.
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2.7.6 Interviews and recommends final

selection
Depending on the level at which the individual is being hired,

different individuals within the department will interview the
applicant. The Manager will interview junior executives and non-
MPT staff. The General Manager will interview Senior Executives
up to grade ten. The MD will interview any individual being hired
above grade ten. Interview assessments and final
recommendations are sent to R&S.
2.7.7 R&S issues letter of offer
Based on the case summary, R&S issues a Letter of Offer which

includes an appointment with the company doctor. For Non MPT
staff candidate has to be cleared by IG Quetta due to sensitive
security situation.
Two copies are prepared and sent to the following
• 2 copies to the candidate (one copy for him/herself

and the other to be signed and returned to the Company)
2.7.8 Offer Acceptance
Candidate sends the signed offer letter and indicates start date.
2.7.9 Company medical officer conducts

medical
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Company medical officer conducts examination and provides

clearance for candidate.
2.7.10 R&S Updates case file
R&S updates the case file with all candidate relevant information.
2.7.11 R&S notifies T&D to prepare Induction

program
R&S notifies Training and Development Section (T&D) to prepare

the induction program for the new hires. R&S would provide T&D
with all relevant new hire information such as entry level,
functional area etc.
2.8Training
Organizational Training is handled by Training and Development

Section at PPL. Organizational training program consists of a number or
workshops, seminars, symposium etc. Workshops are highly
customized, providing relevant and interesting learning opportunities
within a fast-paced, interactive environment. Programs are developed
to provide employees with the tools and competencies necessary to
face new challenges and further the organization's mission, the
organizational training program offers over 30 individual workshops,
seminars, symposiums etc covering a broad range of subjects
Training programs include:
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 Local training
 Foreign Training
2.8.1 Local Training

Following is the list of local training programs at PPL
2.8.1.1 Technical Training

Technical training is conducted through seminars, workshops,
conferences, congresses, conventions and forums to enhance and
polish the technical skills of employees.
Some of the technical training programs are listed below:
o Seminar on Drilling Waste Management
o Seminar on IT Security - Tools and Framework
o Workshop on voip technologies & protocol
o 3 day Microsoft security workshop
o Trauma injuries and disaster symposium
o Pakistan oil, gas & energy management conference
o Basic rescue training course
o Pakistan geological congress
2.8.1.2 Management Training

Management training is conducted through seminars, workshops,
conferences, congresses, conventions and forums to enhance and
polish the managerial skills of employees.
Some of the management training programs are listed below:
oSecurity awareness seminar
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oPetroleum law seminar
oRisk management seminar
oWorkshop on beyond secretarial role
oWorkshop on effective delegation
oProblem solving & decision making
oWorkshop for executive secretaries
oWorkshop on job analysis and job evaluation
oInterviewing skills
oCommunication skills
oSecretaries development program
o Time management
oConflict management for managers
o South Asian Management Forum 2005
o World HRM forum
2.8.2 Foreign Training

Foreign training is conducted by sending individual employee or a
group of employees to attend Seminars, conferences, technical
trainings, management trainings, workshops, congress, summits
etc to represent PPL and also to inline the technical and
management skills of the workforce with the latest global trends.
Some of the foreign training programs in which PPL participates

are listed below:
o Indian Oil & Gas Conference
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o Middle East Oil & Gas Show & Conference
o Human Resource Management Skills & Techniques
o International R&D Forum On Oil And Gas
o Internal Auditors Forum
o Middle East Information Management Forum
o Oil & Gas Sap User Meeting
o International Engineering Congress 2004
o Global E&P Technology Summit 2006
2.9Performance Evaluation
Performance evaluation is a necessary and beneficial process, which

provides annual feedback to staff members about job effectiveness
and career guidance. The performance review is intended to be a fair
and balanced assessment of an employee's performance
The supervisor’s evaluation of subordinate performance is an

extremely important task in organizations. These evaluations often are
used to make pay, promotion, training, lay-off and transfer decisions.
Performance Evaluation is done in June-July of every calendar year.
To accomplish a fair and balanced assessment, management at PPL

provides the employee an opportunity to express his/her opinions
about the employment relationship. The supervisor reviews the
employee’s job duties for evaluation against his/her job description.
The performance review process includes one-on-one discussion
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between the supervisor and employee with both parties being full
participants. Apart from the job description general behavior and
discipline of employee is also evaluated. Following are the areas in
which performance of an individual is evaluated at PPL.
• Attitude & Conduct
• Attendance
• Adaptability / Flexibility
• Learning Ability
• Initiative And Enthusiasm
• Reliability And Effectiveness
• Integrity
• Communication Ability
• Job Knowledge And Skills
• Other Jobs Held
• Safety Awareness
Supervisor prepares a performance review summary and forwards it to

the functional head who then along-with the performance review
committee takes decisions and decides on the performance
improvement plans. These decisions are then forwarded to the Human
Resources Department who acts on it.
2.10 Rules of Service

This section contains the current rules of service relating to
compensation, benefits, entitlements and facilities applicable to all
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staff in career employment of Pakistan Petroleum Limited. Every

employee holds a written statement of terms and conditions of
employment
2.10.1 Salary Increments
The Company has devised a salary structure with the objectives of

creating fair basic salary levels which reflects the relative
importance of jobs in the Company and which also takes account
of prevailing market rates, providing for salary progression on a
systematic basis, rewarding job holders in relation to their on-the
job performance and employing systematic procedures for
periodic review and control of the salary structure.
The annual basic salary review is undertaken in the middle of the

calendar year effective 1st July. Salary increases are not
automatic and are not granted solely on completion of a fixed
period of service. These have to be earned and depend on
performance of the job
2.10.2 House Allowance
Staff posted at Karachi, Islamabad or Quetta will be paid House

allowance @ 45% of basic salary per month
2.10.3 Utilities Allowance
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Utilities Allowance will be paid to staff @ 10% of basic salary, per

month. Staff opting for family accommodation at Sui Gas Field or
other field locations will not be entitled to Utilities Allowance.
2.10.4 Conveyance Allowance
Conveyance Allowance is payable @ 20% of basic salary to all junior

executive staff. Female Staff using Company’s transport to and from
work place are not entitled to this allowance.
2.10.5 Pick & Drop facility for Field Visits
Head Office staff visiting field locations or any other city, for
official purpose, shall be provided pick and drop facility by the
Company for airport/railway station or reimbursement of actual
taxi charges in lieu thereof.
2.10.6 Hospitality Allowance
Staff, when required by the Company to accommodate guests will

be reimbursed
2.10.7 Education Allowance
Education Allowance is payable to Sui based staff, provided

married accommodation at Sui, for children studying outside Sui.
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3 MOTIVATION
3.1Organizational Reward Systems
PPL’s reward system is the basic structural mechanism used to

motivate employees. The reward system includes the formal and
informal mechanisms by which employee performance is defined,
evaluated, and rewarded. PPL’s primary purpose in giving rewards is to
influence employee behavior.
The reward system comprises of:
3.1.1 Annual Basic Salary Increment

• Merit and COLA
The annual basic salary review will combine
(a) merit increase and
(b) cost-of living adjustment components.
The values for both these components will be determined by the

Company each year at the time of salary review.
• Good Service Award
Once an incumbent reaches the maximum salary of his particular

job group, he will no longer be eligible for further merit increase. His
future promotion will depend entirely upon availability of a higher
group position or re-evaluation of his job. He may, however, be
awarded cost of living adjustment. The salary in excess of the job
group maximum will be termed Good Service Award, which will not
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qualify for terminal benefits. If the incumbent is promoted or his job

re-evaluated to next higher group or the salary structure is revised
upwards, the Good Service Award part will be merged with basic
salary.
3.1.2 Incentive Bonus Scheme
To encourage staff to serve the Company on the long term and

avoid any unauthorized absences from the Company duty, it is
proposed to introduce an Incentive Bonus Scheme for all MPT staff
who are in continuous service of the Company for a minimum
period of three years.
The staff is entitled to the Incentive Bonus on the anniversary of

completion of three years continuous service, and thereafter on
completion of every three years continuous service. Three basic
salaries at the end of every three years of continuous service are
awarded to employee as a part of this scheme
3.1.3 Travel and Transfer
The Company shall provide appropriate transportation to staff

required to travel on Company business or on transfers in
accordance with and to the extent of the limits laid down by
company’s policy.
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3.1.4
Long Service Awards
As a token of recognition of the length of service of staff, the

Company gives Long Service Awards as given below:
No. of Years of Gold Emblems

service (gms)
15 17
20 18
25 19
30 20
35 22
40 24
3.2On Service Benefits
3.2.1 Insurance
Staff is provided insurance cover through two separate policies -
one against death and the other against death or disability from
accidents. The claims are payable in Pak rupees only.
The salient features of the policies are as follows:
- 40 -
• Group Life Insurance
The policy provides cover against death arising from natural

causes only
• Personal Accident Insurance
The policy provides a twenty-four hour worldwide coverage

against partial or total disabilities or death caused by
accidents, whether in the course of the Company’s business or
otherwise.
3.2.2 Leave
All permanent staff posted at Karachi, Islamabad and Quetta is

eligible to 40 days paid earned leave for each completed year of
service
3.2.3 Medical Assistance

The primary objective of the medical policy is to supplement
employee’s own efforts in maintaining a high standard of physical
fitness.
Staff and their eligible dependents are entitled to the medical

benefits described below. Dependents for purposes of this policy
mean wife and children up to the age of 21 years residing with the
staff concerned and who do not have their own independent
income and therefore are deemed to be dependent on the staff
- 41 -
3.2.4 Loans
Rules governing various staff loan schemes are attached herewith
as follows:
1. Loan for purchasing motorcycle / scooter / motorcar
2. Loan for construction or purchase of house
3. Loan for purchasing household appliances
3.3End service benefits

3.3.1 Retirement Benefits Plan
The "Retirement Benefit" plans are designed to help provide the
employee and his family with economic protection against loss of
earnings. Such loss of earnings may be due to retirement,
termination, disability or death.
The policy comprises of the following plans:
• Provident Fund
• Gratuity Scheme
• Pension Scheme
• Provident Fund
The Company operates the "PPL Senior Provident Fund." Staff is

eligible to become member of PPL Senior Provident Fund, from
the date of joining the service on confirmation. The Company
and the member each contribute 10% of the basic salary of the
member. Staff may take loans from the fund for certain specified
purposes, subject to the credit balance of the individual's
account.
- 42 -
• Gratuity Scheme
Staff will be eligible to gratuity under the following conditions:
o On death during service
o On leaving service for any reason, other than

dismissal or misconduct, after having completed five years
service.
o On leaving service before having completed 5 years

continuous service by reason of ill health or in case of
female staff, marriage.
• Pension Scheme
Staff is eligible to receive pension if they are members of the

Provident Fund and have been in the service of the Company or
Associated Company subsequent to 1st January, 1969. Pension
age for a male shall be his birthday on which he attains the age
of 60 years. Pension age for a female shall be her birthday on
which she attains the age of 55 years. The foregoing amendment
shall be deemed to have effect from1st January, 1990.
- 43 -
4 Personal Characteristics Survey
Turnover Absenteeism Productivit Job

y Satisfaction
Age At PPL turnover Older In Older people
rate of older employees managerial are more
people is less as have lower positions satisfied with
compared to rates of older people their jobs as
younger people. avoidable are more compared to
The main reason absence than productive younger
is retirement do younger as compared people
benefits employees. to younger because they
However they people enjoy more
have higher because of benefits.
rates of their vast
unavoidable experience
absence due in the field.
to the aging
factors.
Gende Turnover rate is Absenteeism Productivity At PPL
r almost same for rate of of both females are
both male and females is genders is more satisfied
female high as almost same with their job.
employees compared to
males
because they
cannot resist
stress
situations
Tenure Senior Senior Senior Most of the
employees are employees people are senior people
less likely to quit have more more at PPL have a
because of the responsibilitie productive satisfied
long term s so the because of attitude
benefits provided absenteeism their work towards their
by PPL rate is low as experience jobs.
compared to in PPL
younger
employees
- 44 -
Marital Turnover rate of Both male Productivity No specific

Status female married and female of female relationship
employees is married married staff between
high as employees is low marital status
compared to have a high because and job
married male rate of most of the satisfaction
employees due absenteeism married was observed
to increased because of females at PPL
family increase in have a high
responsibilities number of preference
dependents for their
families.
- 45 -
5 Conclusion
Pakistan Petroleum Limited, the oldest and largest Exploration and

Production Company in the country, believes in quality human
resource and considers its employees as the biggest assets of the
company. It provides a healthy and congenial work environment and
expects dedicated, devoted and motivated employees in return. The
strategies are designed to provide the best remuneration packages
and to produce satisfied employees.
The Company organizes community development and welfare

activities aimed at enhancing the quality of life of the individual and
community at large by alleviating adverse social and economic
conditions of the people living in the vicinity of its areas of business
operations.
- 46 -
6 References
1. Personal Interview with PPL employee

2. www.ppl.com.pk
3. HR Policy Manual PPL
4. Code of Ethics PPL
5. http://wikipedia.org/
- 47 -

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PAKISTAN PETROLEUM

PAKISTAN PETROLEUM LIMITED

Pakistan Petroleum Limited (PPL) is Pakistan’s one of the oldest and

PPL holds joint ownership with the Government of Balochistan in Bolan

PPL’s head office is located in Karachi. The company’s total staff

PPL considers people as the most important resource and believes in

The role of Human Resources function is to support the business as a

We thank Mr. Muhammad Saleem for providing us the opportunity to

We also thank people at Human Resources Department of Pakistan

The Government of Pakistan (GoP) in September 1997 purchased the entire

1952 Discovery of Pakistan's Largest Gas Reserves at Sui

1959 Discovery at Kandhkot Gas Field. Discovery of Gas at

1976 Commercial Production of Barytes by Bolan Mining Enterprises

1978 Crude Oil discovery at Adhi field

1980 Commercial Production of Crude Oil from Adhi field

1986 Commissioning of Sui Field Gas Compression Project (Phase 1)

1987 Start of Commercial Production From Kandhkot Gas Field

1990 Installation of Liquefied Petroleum Gas (LPG) and Natural Gas

1995 Commencement of gas production from Qadirpur Gas Field

1997 Completion of Phase II Extension of Sui Field Gas Compression

2000 Commencement of Extended Well Test (EWT) Production from

2001 Supply of gas from Miano Gas Field (Operated by a Joint

2002 Dismantling of 1982 GPA and execution of new market based

2003 Commencement of gas supply from Mazarani Gas. Field

Deputy Managing Internal Audit

1.1 Merits of Organizational Structure

 Permits greater specialization

1.2 Demerits of Organizational Structure

 Higher dysfunctional conflict

 Poorer coordination and requires more controls

2.1Environment for people at work

PPL does not tolerate any form of discrimination, offensive behavior,

PPL believes that a diverse workforce drives greater innovation and

hires a cultural mix of people who bring different but complementary

3 Human Resource Policies

Staff compensation & benefits, employment policies, remuneration

In a nutshell, the role of Human Resources function is to support the

The jobs at PPL are professionally challenging and rewarding. They

Challenges within PPL primarily emanate from its corporate vision to

requirement of health, safety and environmental compliance and ever

As a PPL employee, you are expected to contribute to the success of

In order to help you perform your assigned tasks in a professional way,

The primary focus is on development of personal effectiveness skills

We are committed to providing fair opportunity to all staff on the basis

We are committed to attracting, training, developing and rewarding

PPL invests heavily in employee development by structuring

Recruitment at PPL is carried out at three levels:

2.6.1 Entry Level

PPL is committed to the ongoing training and development of its

The two-years hands-on training provides the trainees a great

The aim of providing this comprehensive training is to equip the

During the training line managers review trainees’ progress regularly

o The trainee has acquired the required level of skills during

Criteria for Selection as Trainee

Engineering graduates having gone through a four-year degree

2.6.1.1 The Selection Process

There are three stages for graduate selection as Trainees:

2.6.1.1.1 The Assessment Test

Here candidates’ academic knowledge, numerical skills, and

a. General paper carrying 60% marks has basic English, basic

2.6.1.1.2 The Application Form

On clearing the assessment test the candidates are short listed

2.6.1.1.3 The Interview

Panel interviews are then conducted during which candidate’s