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Albario Engineering Pvt.

Ltd

Student Name: Muhammad Jahanzeb Lodhi


Student ID: mc170200773
Session: 2017-19
Date: 9th January, 2019

Virtual University of Pakistan


Dedication
I dedicate this work to my family especially my parents, for their endless support and
encouragement. They always encouraged me to study and work hard. This is the fruit of their
devotion and prayers which enabled me to achieve my Masters Degree.

Acknowledgement

All praise and thanks to the Almighty ALLAH, the most gracious, the most merciful who gave
us the opportunity to carry out this project.
Besides my deep appreciation which goes to my family members who had been so tolerant and
have supported me throughout the degree period, special thanks to Mr. Ammar Khalid Mayo,
Dy. Manager outage department at AEPL, for his encouragement and support which he had
given to me. All the other officers and the staff members of the organization also assisted me in
learning during my internship. I am truly grateful to all these people.

I am also thankful to the Virtual University of Pakistan which provided me opportunity to gain
knowledge and allowed me to complete my Masters Degree.
Executive Summary:
This report is about my internship at Albario Engineering Pvt. Ltd (AEPL). AEPL is a
leading Engineering Company specializing in Engineering Consultancy, Electromechanical
Contracting, Operations & Maintenance, Equipment Sourcing, Project Management, and
Aftermarket Sales & Services. The organization was established in 1954 with a vision to be a
Leading Engineering Solution Provider Company in the Region. The company has its Head
office in Lahore and regional offices in Islamabad, Multan, Guddu, Karachi, along with
international offices in Oman, UAE, Saudi Arabia, Iraq and Nigeria. There is brief introduction,
history, structure and hierarchy chart of the organization in the report.

Many undergoing projects of the company are carrying out and many future contracts are
being made with various public and private companies / clients. Being a multi-national company,
along with having clients all over Pakistan, the company also has its clients in many regions of
the globe.

The company is organized in various functional departments. I was given brief


orientation of all the various sections / departments of the company. I have learnt about the
Company’s Operational, Administration, Finance, Marketing, Procurement and Human Relation
Departments and learnt that how these departments perform their operations and functions
successfully.

During my internship, I was deployed in the Outage and the Administrative departments.
In the company, I have observed, applied and practically experienced the theories which I learnt
throughout my MPA degree. Specifically, in the Admin department, I learned the functions of
Admin branch that how reports of field activities are made, how the employees perform clerical
duties, how they maintain various records about all the employees of the organization, how to
conduct meetings, how to coordinate with field teams, and how the admin section play important
role in effective communication flow in the organization.

I also observed the Human Resource Management Processes which include the planning
and forecasting of the human resource, recruitment and selection process, training and
development and other HR Department’s functions. During my internship, I was assigned
various task and activities to assist the managers due to which I learnt many new skills from their
experience.

I critically analyzed the various aspects of the organization: be the management


processes, organizational design, leadership style and forms of control in the organization. There
is a SWOT Analysis of this company attached with the report. The strongest area of the company
is the experience and expert knowledge of the technical employees and top management. The
weakest area of the organization is the un-organized hierarchy of the organization. With the rapid
change of technology, the company also has some opportunities and threats that might affect the
progress of the organization.

There is no doubt that the company is well organized and the command is in the hands of
expert engineers and managers, but there are some areas which need improvement in order to
increase productivity, profitability and the overall efficiency of the company, hence helping the
company flourish more rapidly. At the end of the report, I have given my recommendations by
keeping in view my analysis, assessment and observation of the company.
Table of Contents
Introduction:.................................................................................................................................................. 9
Mission of the Organization:..................................................................................................................... 9
Vision of the Organization: ....................................................................................................................... 9
Introduction of the Organization’s Sector ................................................... Error! Bookmark not defined.
Overview of the Organization ....................................................................................................................... 9
a. Brief History ................................................................................................................................... 10
b. Nature of the Organization.............................................................................................................. 10
c. Future contracts planned for a particular period ............................................................................. 10
d. Types of Services ............................................................................................................................ 11
e. Competitors ..................................................................................................................................... 12
Organizational structure .............................................................................................................................. 13
a. Organizational Hierarchy Chart ...................................................................................................... 13
b. Number of Employees .................................................................................................................... 14
c. Main Office: .................................................................................................................................... 14
d. Introduction of Departments ........................................................................................................... 14
Admin Department: ............................................................................................................................ 14
HR Department: .................................................................................................................................. 14
Accounts & Finance Department:........................................................................................................ 15
Business Development Department: ................................................................................................... 15
Project Development Department: ...................................................................................................... 15
Civil Construction Department: .......................................................................................................... 16
Operation & Maintenance Department: .............................................................................................. 16
IT Department:……………………………………………………………………………………...16
e. Comments on the Organizational Structure .................................................................................... 16
Internship Activity Plan .............................................................................................................................. 16
a. Brief introduction of the departments where I did my internship ................................................... 17
b. My Internship period....................................................................................................................... 17
c. Names of the Departments where I got training ............................................................................. 17
Training Program ........................................................................................................................................ 18
a. Operations / Activities of the Departments ..................................................................................... 18
Admin Department: ............................................................................................................................ 18
HR Department: .................................................................................................................................. 19
b. Tasks assigned to me during Internship .......................................................................................... 22
Critical Analysis: ........................................................................................................................................ 24
Management Functions ........................................................................................................................... 25
a. Planning ...................................................................................................................................... 25
b. Organizing................................................................................................................................... 26
c. Leading ....................................................................................................................................... 28
d. Controlling .................................................................................................................................. 29
Human Resource Management Functions .............................................................................................. 30
Human Resource Planning and Forecasting ....................................................................................... 30
Employees Recruitment & Selection .................................................................................................. 30
Training & Development .................................................................................................................... 30
Performance Management .................................................................................................................. 31
Employee Compensation & Benefits .................................................................................................. 31
Organizational Career Management ................................................................................................... 31
Labor Management Relations ............................................................................................................. 31
SWOT Analyses.......................................................................................................................................... 32
Strengths ................................................................................................................................................. 32
Weaknesses ............................................................................................................................................. 32
Opportunities........................................................................................................................................... 33
Threats .................................................................................................................................................... 34
Conclusion .................................................................................................................................................. 35
Recommendations ....................................................................................................................................... 35
References:.................................................................................................................................................. 36
Annexes:…………………………………………………………………………………………………...37
Introduction:
AEPL is a leading Engineering Company specialized in Electromechanical Contracting,
Operations & Maintenance, Engineering, Sourcing, Project Management, and Services Business
(To Support Installed Base). It is a one window solution provider company. With offices all over
the country, AEPL employ more than 250 professionals – support staff of around 250 and a
dedicated team of 400+ members for plant construction and operations & maintenance activities.

The company works with scores of multinational organization in diversified disciplines.


However, AEPL‘s jewel in its crown is its affiliation as strategic partner of General Electric,
USA for 3 decades. AEPL has won the GE Crystal Trophy for Best Performance 5 times which
stands as a testimony of AEPL’s commitment towards excellence.

Mission of the Organization:

“Win by providing Pro-active Value Added Services to our customers.”

Vision of the Organization:

“To be a Leading Engineering Solution Provider Company in the Region.”


Overview of the Organization
a. Brief History

In 1954, Albario Pakistan was established as an equipment supplier. Till 1962, it continued
working under the same portfolio until the establishment of Albario Construction Corporation
(Civil Work) in 1962. Then in 2001, its name changed to Albario Engineering (Pvt) Ltd. (AEPL)
and it formed an independent organization for E&M Contracting and O&M Services. In 2006,
the company started Electro-Mechanical contracting of Large Power Projects. Here, the growth
of company did not stop and it kept of expanding its services. In 2007, AEPL Engineering
Works, Workshop, Inspection & Testing Division was developed and in 2009 and 2011, it
started sponsoring project development and contract execution in Middle East, respectively.
.

b. Nature of the Organization

AEPL is a PEC (Pakistan Engineering Council) registered engineering firm, lying in O-1
and CA categories. The firm works as a sub-contractor of GE (General Electric), USA. It
is committed to serve its clients by understanding their requirements and endeavoring to
meet those requirements professionally, reliably, timely, safely, economically &
consistently by providing EPC, Project Management, Consultancy, Electro-Mechanical
Installation, Operation & Maintenance Services and Provision of Manpower for Planned
and Unplanned Inspection & Overhaul Services to them.

c. Future contracts planned for a particular period

1) 50 MW Jhimpir Wind Power Plant (O&M)

Contract Duration: 10 Years (starting from 2018)

2) 50 MW Tenaga Wind Power Plant (O&M)


Contract Duration: 2 Years (starting from 2016) for BOP
10 Years (starting from 2016) for WTG

3) 50 MW Master Wind Power Plant (O&M)

Contract Duration: 10 Years (starting from 2016)

4) 50 MW Sapphire Wind Power Plant (O&M)

Duration: 10 Years (starting from 2015)

5) 1230 MW Haveli RLNG Power Plant

Duration: 3 Years extendable (starting from 2018)

6) 1180 MW Bhikki RLNG Power Plant

Contract Duration: 2 Years Extendable – Starting from 2017

7) 1223 MW Balloki RLNG Power Plant

Duration of the contract is 10 Years, starting from 2017 to 2026.

8) 450 MW Nandipur Power Project, Pakistan

AEPL is providing Manpower Support Services to Northern Power Generation Company


Limited, Pakistan for Operation & Maintenance of 425 MW (3x9E based) Combined Cycle
Power Plant.

d. Types of Services

Albario Engineering Pvt Ltd provides various types of services. Following is the list of its
services:

1. Electro / Mechanical Contracting


2. O&M Services
3. Outage Services
4. Project Sales & Aftermarket Services
5. Engineering Consultancy Services
6. Fabrication Workshop/Inspection &
Testing Services
7. Energy & Telecom Solutions
8. Sponsor / Develope

e. Competitors

There a many competitors of Albario Engineering Pvt. Ltd. Following are list of some
main competitors:

 Descon
 Prescon
 EPESOL
 NESPAK
 Sampak International (Pvt.) Ltd
 Aitemad group of companies
 Orient energy services
 Allied group of companies
 Chinese firms
Organizational structure

a. Organizational Hierarchy Chart


b. Number of Employees

There are 6000+ employees working in this company. Distribution of the employees
is different in various sections and according to the requirement. With offices all over the
country, AEPL employ more than 5000+ man power for plant construction and operations &
maintenance activities. Besides, it also owns 1000+ skilled manpower for turnaround
services. As the company provides consultancy, contracting and engineering services
therefore, most of the employees are Managers and Engineers and the skilled and trained
labor force.

c. Main Office:

The Head Office of the company was located at 91-C, Model Town Lahore. Recently,
the office has been shifted to AEW (Albario Engineering Workshop) near Bahria Town,
Lahore and the building is being used as a Head Office.

d. Introduction of Departments

Following are various departments / sections of the company:

HR & Admin Department:

The section is headed by Manager (Admin & HR) and there are 6 employees working in
this section. This department is further bifurcated into two sections, that is, admin and
HR departments. Their functions and duties are described as follows:
Admin Department
The section deals with following administrative matters of the organization:
 Maintain / Document Record of the employees
 Organize / Conduct Meetings
 Preparation of Presentation for Meetings
 Coordinating and facilitating the field teams

HR Department:

This Department is also headed by Manager (HR). This department deals with the
following matters of the organization:
 Human Resource Planning and Forecasting
 Recruitment and Selection of the Human Resource
 Orientation to the employees
 Training and Development
 Promotion related matters of the employees
 Performance Evaluation of the employees
 Retention and Termination on the employees on the basis of performance

Accounts & Finance Department:

This department is headed by Chief Finance Officer and it deals with the salaries
(Bonuses, Profit Sharing) of the employees, making payments for purchasing, making
financial reports / statements and keeping record of all the monetary transactions. All the
agreements are made with prior approval of Chief Financial Officer (CFO) who is further
directed by the Directors of the company.

Business Development (BD) department:

This department is headed by Senior Manager Business Development. All the


other BD managers work as a team and report to him. The responsibilities of this
department are to expand the business of company by searching and hunting various
business opportunities available in the market. This department also performs the
activities regarding sales and marketing.

Project development (PD) department:

The Project Development department is headed by a Senior Manager Projects


Development and Execution. He is reported by Manager Bidding, Technical Manager
Bidding, and the Project Engineer. Along with estimating / project costing, this
department procures from local and foreign markets. All the necessary office equipment
is also purchased by this department.
Civil construction department:
Civil construction department deals with the design and development of housing colonies
infrastructure, civil construction (power generation, transmission & distribution,
industrial, oil and gas), multi-story building and residential complexes, and co-
development of real estate projects.
Operation & Maintenance department:
Most of the employees of Albario Engineering Pvt. Ltd belong to O & M department.
This department comprises of Outage department, Wind O&M department, Plant O&M,
and inspection and testing department. The leads of all these departments report to GM
(General Manager) O&M.

IT Department:

IT Department deals with the website formation and development. It also ensures that all
the necessary equipment like laptops, mobile phones, and printers stay connected and the
company internet works properly. All the advertisement for the company on the website
and social networks like posting advertisement of career opportunities or announcement
of any news is done with the help of IT Department.

e. Comments on the Organizational Structure


The organizational structure of Albario Engineering Pvt. Ltd is a well designed structure and is
supportive to all the processes / functions of the organization. The organizational structure of the
company is more or less similar to the bureaucratic structure, that is, hierarchical in nature. The
top down hierarchy of the organization helps in effective communication flow in the
organization. There are clearly defied roles and responsibilities of the management and staff
employees which help in smoothing functioning of work. Furthermore, there is coordination
among the civil, mechanical and O&M departments which helps the company in providing
reliable engineering services to its clients.

Internship Activity Plan


My Internship Activity Plan included the followings:
1. Introduction & Orientation of the Company and its various Departments and Sections by
HR Manager.
2. Seven (7) weeks attachment with the testing department. Where I learnt that how testing
department of the company works in the field, what equipment is used by the company
and how field teams operate them.
3. Six (6) weeks attachment with Human Resource and Admin Department to learn the
responsibilities of the HR and the Admin Departments, there different processes and
become a part of the HR & Admin Teams by performing tasks of these departments.

a. Brief introduction of the departments where I did my internship

During my internship at Albario Engineering Pvt. Ltd, I was given a brief orientation of
all the sections and departments of the company. Although, the plan was to rotate me in all
departments of the company, but until now I have gotten training in only two of them i.e. the
Testing Department and the Admin & HR Department. I have already mentioned all the major
functions of these departments in the Introduction of the Departments which is Part of this report.

Mr. Saad Ullah Jarral is the manager of the Admin and HR Department. There are 6
employees who take care of all the HR and Admin matters of the organization. While, Testing
department is part of the Outage department. The outage lead reports to the GM operation &
maintenance.

b. My Internship period

My Internship period at Albario Engineering Pvt. Ltd started from 20th October 2018
with the status of trainee engineer and is currently ongoing.

c. Names of the Departments where I got training

I got training in the testing department for 07 weeks and in HR & Admin
department for the period of 06 weeks. So until now, my training period comprises of 13
weeks and the training is still ongoing.
Training Program
a. Operations / Activities of the Departments
Admin Department:

The detail of operation / activities of admin section is as under:

Make and Communicated Rules & Regulation / Policies:

Admin department deals with the rule / regulations / policies of the company. The
Manager (Admin & HR) proposes new rules & regulations / policies with the
approval of the Managing Director and communicates all these rules and policies
to the employees of the company.

Maintain / Document Record of the employees:

The admin department performs various administrative works such as


maintenance of employee’s personal records, their leave record or temporary
replacements of the employees
Organize / Conduct Meetings
The admin section also arranges all the meetings at the company. It also takes
care of all the matters i.e. communicate information about meetings to the
employees, arrangement of refreshment for the attendees etc.
All types of correspondence
All types of correspondence / noting and drafting are performed in this section.
The section plays important role in communication flow within and outside of the
organization.

Providing the logistic support


All kinds of logistic support i.e. arranging transportation for the field teams,
ensuring the materials necessary for housekeeping and other things necessary to
perform office work is provided by the admin department.
HR Department:

The HR Department performs following operations / activities in the organization:

Human Resource Planning and Forecasting:

It is the responsibility of HR department to assess the need of hiring an


employee and then selecting the Right person for the right job. Planning and
Forecasting is the first function of the Human Resource Management. The HR
department of the company conducts meetings for the planning and forecasting of
Human Resource or workforce with the concerned departments. Where future
workforce requirements are discussed and also contingency plans are made. The
Human Resource Planning analyzes the desired and the available strength of the
Human Resource.

If the desired strength of the human resource is greater than the available
strength of the human resource, the company hires new employees from the open
market by advertising on its website and then through the recruitment and
selection process. It also hires the human resource if there are some future
demands that require more human resource. And if it is found that the current
employees need training, the planning to provide them the needed is also done by
the HR department.

On the other hand, if the employees of the organization are more than the
required number, the company may lay off some employees through its HR
department. There is no any fixed time or period for Planning and Forecasting of
Human Resource: As the company bids in a project, or gets any new project or
any project is completed, the human resource planning process is started. The
Directors and the Managers justify the need of more employees and the HR
Department may transfer or recruit the employees according to the requirements
of the concerned departments.

Recruitment and Selection Process of Human Resource:


After HR planning and forecasting, if the company requires more employees,
then the HR Department looks forward to recruitment and selection process.

Selection of Board Members: The Board Members for Interview and


Selection are decided according to post and requirement of the concerned
department. Usually, a senior manager or the general manager of the concerned
department along with HR manager is part of the board. For selection of technical
experts and staff, the company adopts a slightly different procedure than
recruitment of non-technical employees which is as follows:

Recruitment of Technical Staff and Experts:

Recruitment and Selection process of this company for engineers and


technical staff is of critical importance as it is the requirement of the company that
the employees must be expert in their relevant fields.

Recruitment and Selection process of the company is as under:

Advertisement: Company advertises its vacant post on its official


website. In the advertisement, the company provides minimum qualification and
experience requirements. The range of salary package is also provided to attract
the experts. The advertisement also includes the terms and conditions i.e. age
limit and the last date for applications to reach the mentioned address of the
company.

Scrutiny of applications: After the last date for receiving applications,


the HR department scrutinizes the applications and shortlists the applications that
fulfill the minimum criteria for qualification, experience and fulfill all the terms
and conditions. Then interview letters are sent to the shortlisted candidates
through e-mail, and they are also contacted telephonically through which the
information regarding the interview date, time and location is conveyed to the
candidates.

Written Test & Interview: Final stage is written test and interview of the
recruitment and selection process. The shortlisted candidates have to take written
test and appear in the interview on the specific date mentioned in the call letter.
The candidates who pass the written test then qualify for the interview. The
selection board/committee evaluates the candidates and selects the best candidates
for the company.

Recruitment of Non-Technical Staff:

For the recruitment of general / non technical staff, the HR Department


usually prefers to conduct walk in interviews. Vacant posts are advertised and the
interested candidates are called for direct interviews. There is no written test for
non technical and general staff.

Performance Evaluation of the Employees

Evaluation of the performance of the employees is also the responsibility


of the HR Department. The performance of the employees is evaluated annually.
The standards and expectations of the performance are developed and effectively
communicated to the employees by the HR Department. Each and every
employee of the organization is well aware of his/her job responsibilities and is
accountable for his/her actions. The performances of the employees are evaluated
according to the set standards and expectations.

Training and Development

In order to cope with the changing external environment and rapid


advancement of technology in the era of globalization, the company provides
training to its engineers, technicians and other staff members. Company also
provides training to the new employee to enhance their skills in order to enable
them to perform their jobs in a better way. Various Sessions and training
programs are conducted in order to familiarize the employees with new and
advance technology.

First, training need is assessed by the performance of the employees with


the recommendation of any manager or officer, and the employees are nominated
for training. Mostly technical staff is provided with the training to familiarize
them with the new technology. Then training is provided at the company by the
senior Managers and engineers. If the facility cannot be provided within the
company, then the employees are sponsored by the company for training outside
the company.

Promotion / Retention / Termination


The HR Department takes important decision regarding the promotion, retention
and termination of the employees on the basis of performance evaluation. If the
employees showing extra ordinary performances then they are awarded with promotion
and if the performance of the employees is not up to the mark, even after training, then
the employees are terminated from the service.

b. Tasks assigned to me during Internship

I was assigned various tasks in the Outage / Testing and the Administration and
Human Resource Departments during my internship at this company. Detail of the
duties/tasks I performed and learned is as under:-

Tasks assigned to me in the Testing Department:

 First of all, I was sent to the Halmore Power Plant, Sheikhupura with the testing
team where various testing activities on Transformers, Switch yards and Circuit
Breakers were performed.
 There I observed that how teams work in the field, what protocols they follow and
how they move and operate the machinery for performing the required tests.
 After the accomplishment of testing activities, reports of the testing activities
were made by keeping in view the noted readings, and these reports were sent to
the Deputy Manager and the testing engineer.
 I was given many technical manuals by the Deputy Manager ( Ammar Khalid
Mayo), who was also my supervisor, and feedback on them was taken by having
detailed discussions on them.
 Then I was transferred to Karachi on projects going on there, where the company
is working as a sub-contractor of GE (General Electric).
 In Karachi, various projects were going on simultaneously, but I were assigned
Mauripur and Shadman grid stations.
 Shadman grid station was almost completed and the process of commissioning
was being done there. Besides, I also made reports of the activities being done
there.
 On Mauripur grid, tests to check Bus bar protection system, Bus bar
synchronization, and the Tripping time of the circuit breakers were calculated.
 Then I was called back to the Head Office and shifted in the Admin & HR
Department.

Tasks assigned to me in Admin & HR Department:

 I was assigned to help in maintaining personal record of the employees.


 I composed different types of letters and notes that improved my noting and
drafting skills
 I learned the various rules and regulation of the organization regarding
administrative matters
 I learned that how official record is made and maintained
 I learned that how assets and equipment of the office are moved and arrangements
of it are made according to the requirement of the field teams
 I learned how to organize a training sessions
 I learned that how to prepare an advertisement for required posts and to advertise
it on the official website
 I attended the calls from the candidates and solved their quarries
 I was assigned to help in scrutinize the applications received from the candidates
 I was asked to issue call letters via e-mail to the eligible candidates
 I also made calls to the eligible candidates for test and interview
 I also witnessed the interview of the candidates and learned many tactics to
evaluate the candidates
Critical Analysis:
During my internship at Albario Engineering Pvt. Ltd, I noticed that, often, the managers
and the senior employees do not reach office on time and which shows lack of discipline and
punctuality. Due to their carelessness the staff employees also show up late at work.
Furthermore, if the executive manager / director takes leave or go home early most of the
subordinates do not complete their working hours. The managers should be punctual and should
follow the office timing, as punctuality plays key role in the growth of any organization and it is
one of the major characteristics of the successful organizations.

Furthermore, the system of consumption of resources in the field must be revised. Many
times, resources allocated to be used in the field are insufficient. In that case, field team members
have to spend money themselves and then after the completion of project claim their spending to
the accounts and finance department. The process of expense claim is so hectic that it takes many
weeks. This system needs to be improved and a policy should be formed so that the enough
resources are distributed in the way that they fulfill the needs of field teams.

Some employees of the organization are also running their part time businesses causing
lack of focus on their jobs at this company. The management should consider this issue and
discuss with these employees, and try to overcome the issue because it might hinder the progress
of the organization.

Also, at the organization, new employees are burdened with work. The top management
of the company uses the services of the employees other than their job description which is
unethical. The seniors pass on their work to the new employees even if it is not related to their
field. This causes delay in routine matters and pressurize the new employees. The management
should hire other staff for such purpose. Moreover, those employees who are privileged are the
over-privileged and those who are under-privileged are so badly neglected. The company should
devise a policy to equally distribute the benefits among all employees according to their posts /
services provided to the company.
There is no area at the company premises to perform prayers or eat lunch. Employees
have to stop their work at the lunch hour so that all the employees could have lunch there. This
hinders the works and consistency is affected badly. The company should provide suitable room
/ arrangement for employees to perform their prayers at the premises so that the unnecessary
waste of time could be avoided, and the outage department should be provided with a proper
work place.

Management Functions
a. Planning
Decision making process

Strategic decisions are mostly made by the top management, that is, by the
directors of the company. Management holds most of the meetings without any prior
planning and scheduling. There is lack of long term future planning at the organization.
This point is also discussed as a threat for company in the SWOT analysis. Top
management mostly deals with the current projects and, usually, makes the short term
plans.

Decision making process of the company includes regular meetings and


discussion, on every important matter, with the major stake holders. While, the decisions
regarding technical matters are made with the consultation of all the heads, i.e. General
Managers and / or Senior Managers of the concerned departments.

Organization’s current strategies

Along with maintaining its status in the field of O & M, the company is focusing
to flourish in other fields like civil construction and wind safety training. It has gotten
“CA” category from the PEC (Pakistan Engineering Council) and is making efforts to
extend its capabilities in this field. Further, the company has established its Wind
Training Simulation System which is going to be operational soon. So, it is evident that
along with maintaining its current position, the company has started focusing on its
different wings and is making efforts to establish itself in different fields so that it could
be able to expand its business.
b. Organizing
Organizational deign

The organizational design of the company is facing many challenges and one of
the challenges is that there is imbalance of centralization and decentralization in the
company. The company is entirely centralized which causes unnecessary delay in
decision making. Further, the hierarchy is so complex and mixed that along with
overlapping the roles, it also causes confusion to understand that who will report to
whom and what are the duties and roles of an employee.

Departmentalization

The company has functional departmentalization as it is organized into


department according to their functions i.e. Admin & HR, Finance and accounts, IT,
Business Development, Project Development, Civil Construction, and O & M. It is in the
favor of the company that there exists coordination among various departments of the
company, which overcomes the confusion and complexity caused by the overlapped
hierarchy.

Span of control

The company has a narrow span of control of the management. The directors of
the company have direct control over the affairs of the companies, employees and the
senior management of the departments. That is why, this helps in various departments to
build a sustainable system of coordination among themselves.

Chain of Command

Due to the large size of organization, there exists a long chain of command in the
organization. At some points, the employees have to report, unnecessary, to the person
next in the chain of command, and the employees have to work under more than one boss
which represents the lack of unity of command. But ultimately, every senior manager or
the general manager has to report to, directly, to the company directors.
Centralization/Decentralization

The company is highly centralized and its centralization is a hurdle in the


initiatives of the individual employees. Employees are not allowed to take initiatives on
their own or without prior approval from the competent authority i.e. the senior
management. This also causes delays in the process which is harmful for the organization
in the fast changing era of globalization.

Formalization

There is high level of formalization in this organization. Employees are well


aware of their jobs and responsibilities. Especially, in the field, some SOPs (Standard
Operating Procedures) are defined which are necessary to follow. Similarly, every
process is accomplished and the approval is taken by a formal way. But, sometimes, the
employees have to work other than their job description, and to accomplish any task
without following a standard way to do it, while by-passing the formalization.

Work specialization

Work specialization is high among all the departments of the company, especially
among the engineering departments. All the heads of the departments including General
Managers and the Senior Managers are the expert of their fields and have technical
experience comprising of many years. Even both the directors of the company have
technical expertise which helps them in making important decisions regarding the
business of company.

Managing change and innovation

Albario Engineering Pvt. Ltd is successfully coping with the current changes and
innovations in the market as well as the demands of the customers. But, sometimes, due
to rigid hierarchy and the process of approval etc, the company fails to be proactive and
hence fails to bring change according to the changing environment due to which it loses
many opportunities in the market.
Managing IT and communication

The IT and communication system of the company in this rapidly changing era
needs to be changed. The company uses obsolete IT / networking system even for the
internal use of the office / employees. It needs to be up gradated. There is also the lack of
a proper Management Information System (MIS) which could properly arrange and store
the important data of the company.

c. Leading

Leadership style

The leadership style in the company is Bureaucratic i.e. all the strategic decisions
are made by the directors and senior managers of the company which are then passed
down to the bottom of the hierarchy. This type of leadership style is widening the gap
between the management and the staff due to which lack of proper communication
among the employees and the higher management exists. To overcome the issue, input
must be taken from the employees while making decisions of the company.

Power & Politics

There is less delegation of power to the lower level employees of the


organization. All powers are accumulated in the hands of directors and the senior
managers. On the other hand, middle managers just act as supervisor and have less
financial or administrative powers. While there is no politics or other unfair means used
for the personal growth. This ensures the healthy competition among the employees.

Motivation

Employees lack motivations in this company due to a number of reasons. Main


reason is that the employees don’t have the job security. Further, the company does not
offer pays as compared to its competitors. Those who get benefits from the company are
over-privileged. On the other hand, those engineers, middle managers and the employees
who carry out company business in the field are neglected and under-privileged.
Therefore, there is high turnover of the employees in the company especially at the
middle and lower level of the staff. Only the source of motivation for employees is that
while remaining in the company, they are part of a team of a big company which will
enable them to gain a vast experience, hence flourishing their expertise.

d. Controlling
Controlling Approach

The corporate culture approach is being followed by the company. This


controlling approach of the company set values for the employees to achieve their goals.
Apart from this, the management practices a complete control over the activities of the
employees. The dark side of the picture is that the management uses this control in its
own favor by increasing the work load of the employees and assigning them extra duties
inconsistent with their job description and their relevant fields.

Controlling Standards

Organization has set the standards of quality of processes and performances. All
the employees have to follow controlling standards and work according to the predefined
expectations. Their actions are controlled by comparing them with the predefined set of
standards, and then corrective action is taken according to the requirement.

Controlling of operations

The company holds ISO 9001, OHSAS 18001, ISO 14001and ASME certification
which guide the activities of employees while performing their tasks. By following the
set patterns defined by these standards, the operations are controlled in the company.

Controlling of Performance

The management of the company controls the performance of the employees by,
first, setting the standards of performance evaluation and then by noting and measuring
the performance of the employees according to these standards. If any discrepancy is
found, steps are taken to overcome the gap either by providing training to the employees
or by using positive (incentives) or negative (warning / reprimand) means of performance
improvement.
Controlling of Information / knowledge

Controlling of Information / knowledge in the organization is the responsibility of


all the managers. All the employees of the organization should be familiarized with the
strategies, goals, objectives of the company. Decisions are made by the higher
management and then communicated to the employees. While, confidential information
is not shared with all employees and is communicated to the concerned person only.
Sometimes, unnecessary barriers are put in the flow of information which needs to be
removed.

Human Resource Management Functions


Human Resource Planning and Forecasting

Due to high turnover of the staff employees, the HR department faces many
difficulties in planning and forecasting. Along with forecasting the future needs of the
human resource and performing planning to retain it, it has to mitigate the effects of high
turnover by filling the vacant posts. As the bidding for the new project is made, the HR
department calculates and forecasts the required amount of employees to complete the
project and then make arrangements to fulfill that need of the company.

Employees Recruitment & Selection

Advertisement is made against the vacant positions of the company on the official
website and applications are required from the candidates by the HR department. Then
among these applications, candidates are shortlisted and called for the test and / or
interview. Then selected candidates are issued the call letters. Along with giving priority
to merit, sometimes, the company also gives preference to the candidates who have
strong reference or links.

Training & Development

With the help of TNA (Training Need Assessment), the need of training of
employees is determined and employees are selected for the training. Then the company
provides training to its employees. Usually, the company does not use expert trainers for
the purpose of training and development. Instead, it relies on the managers / senior
technical experts to train the employees. But when this need is not fulfilled by them, and
the T&D (Training and Development) of employees is of critical importance, the services
of experts outside the company are hired.

Performance Management

The record of performance of the employees is not documented / maintained


properly. Therefore, the recognition of performance is difficult. The poor reward system
of the company also affects the performance of the employees. Also, there lack a
mechanism to evaluate the performance of employees in the field.

Employee Compensation & Benefits

Along with lacking a good pay structure, the company also lacks a proper
compensation and benefit system. Salaries are not predefined and are mostly negotiated
at the time of interview. The company seldom gives bonuses to its employees. Those who
are given benefits are enjoying more than they deserve, while many employees who need
appreciation from the management are neglected / overlooked, causing the lack of
motivation among employees.

Organizational Career Management

Organization does not give enough importance to Career Management / Career


Development. There are not any laid down criteria for promotions. Those who are
working against a position are performing their duties against it since a long period.
Mostly the persons at managerial positions get promotions on the basis extraordinary
performance (either by highlighting it to the top management) or by using their
relationship / link with the top management. Promotions of staff employees are very rare.

Labor Management Relations

Labor / staff of the organization have many grievances with the management. The company has
not successful in maintaining effective relations with labor. Staff members, who complain or rise
their voices against the management loss their jobs. Labor at the company doesn’t have any
leverage / bargaining power. The company has strict policy against the formation of union, and
restricts the practice of politics in the organization.
SWOT Analyses
Strengths

Following are the strengths of the company:

Company portfolio: The Company has a diverse background and history starting since 1954. It
has successfully completed many public and private sector projects. The strength of Company in
the form of experience in the relevant field is of crucial importance.

Technical Experts: The Company has many technical experts in all its departments who have the
skills to exceed the expectations of the clients.

Local leader in O&M: AEPL is known as a local leader in the provision of O&M services to the
power plants. Its pro-activeness in maintaining its status and updating the machinery and
employees’ skills with respect to time adds to the strength of the Company.

Tangible and Intangible assets: The Company owns many tangible and intangible assets. Its
accession to the modern equipment, the financial reserves, guest houses and buildings and other
tangible assets as well as intangible assets like provision of quality service and the company’s
reputation adds to the strength of company.

Partnership with GE: The Company’s ability to continuously maintain its partnership with GE
(General Electric, USA) and having capability to follow the standards of its partner is also its
strength. This helps a lot in enabling the company to keep out its competitors and other major
companies out of the competition.

Weaknesses

According to my observation the company has following weaknesses:


Weak organizational structure: The organizational structure of the company is highly centralized.
Also, the hierarchy is complex and needs to be improved. Many employees are working in the
departments which are out of their domain.

Human dependant system: The Company’s system is human dependant. Its major worth lies due
to its employees. In case, they want to disrupt the business of the company, they can easily do it.

Far away site and work areas: The business of the company is expanded to overall Pakistan. Due
to its pan Pakistan sites and work stations, it becomes challenging for the company to hold
control over its employees.

No job rotation of the employees: The Company lacks the concept of job rotation of the
employees. Though the employees are specialized in their work but job rotation makes
employees learn more than one skill and enhance their work efficiency.

Dissatisfaction of Employees: Employees have to perform duties other than their job description.
This causes resentment and dissatisfaction among the employees which, along with decreasing
their productivity and efficiency, also increases their turnover ratio.

Slow Approval Process: The approval procedure to pass any bill or any policy etc takes too much
time which delays the processes which affects the business of the company.

Opportunities

Following are some opportunities for this organization that could be beneficial if the company
makes right choices:

Developmental Projects: Many projects in Pakistan are going on and many new projects are
about to start. CPEC (China Pakistan Economic Corridor) is a major project which can open
many opportunities for the company.

Major Civil Construction Works: Current government has decided to construct dams in the
country. The construction of these dams will bring opportunities for the Civil Construction
department. As, this department of the company is not well established, so it is the high time to
make progress in this department by focusing on it.
Focus towards renewable energy: The focus of the world has shifted to renewable energy
resources. The Government of Pakistan is giving many incentives to ensure the progress in this
field. Solar energy department has been established by the company. The company can have
many opportunities in this field by setting focus on it.

Diversity of services: The Company has the capability to provide a number of various services.
The demands of clients can be fulfilled under one window. If the company comes out of the
portfolio of GE and sets its standards according to local market, it can enhance its business by
availing opportunities in the local market.

Threats

Threats are external factor, out of control of the organization, which can cause serious
damages to the company. Following are some threats to this company:

Local emerging companies: Many local companies are emerging which can compete AEPL in
the local market and can decrease its revenue.

Rapidly changing technology: In the globalized world, rapidly changing technology is the
greatest threat to this company. The requirements of the customers are changing with the change
in technology. The company will lose its business if it fails to enhance its capabilities in all its
departments with time.

No barrier of new entries: Due to lack of barriers to new entries in the engineering sector, and the
support provided by the government to these firms, company is facing challenges. There are
numerous competitors of the company that decrease the market share of the company.

Dwindling economy of Pakistan: The economy of Pakistan is de-valuing and its foreign reserves
are shrinking day by day. This causes inflation and the equipment and the project costs increase.
Also, the company needs to take many steps like downsizing, reducing incentives etc., which are
harmful for the company.
Conclusion
Albario Engineering Pvt. Ltd is a mature company. It has the capability to counter its
threats with its strength. Also, it has its own weaknesses. But they can be overcome if the higher
management pays attention to them. With respect to finance and technology, it is a strong
company and it can make more progress and better utilize its opportunities if some structural
changes are made in it.

My internship in the company was a great learning opportunity for me. It gave me
exposure about the market. I observed and learned various functions of the organization. It was a
great experience for me that I worked with the experts and learned a lot from their vast
managerial experiences.

Recommendations
As we know that, always, there exists a room for improvement. So, in order to improve
market share and profitability of this company, I suggest following recommendations:

 Organizational structure needs to be re-organized. The structure must be decentralized.


And the hierarchy needs to be re-established.
 The higher management should adopt latest management style by bringing the 2019
factor in it. And the organizational processes should be fastened.
 In spite of being human dependant, the company must be system dependant.
 It should adopt the policy of right man for the right job while assigning duties to
employees. Despite giving inter-departmental work, simultaneously, to employees, the
policy of job rotation should be adopted.
 HR department must be pro-active so that the grievances of the employees could be
minimized.
 Mechanism should be devised to monitor field teams.
 Also, the company should change its market, i.e. other than WAPDA, by focusing on
private and utility sectors, KPK and AJK energy projects.
 It must expand its business to small scale construction projects like factory building,
cement plants etc.
 Along with establishing civil department, the mechanical department must be devised
separately.
 I observed lack of long-term planning in the company. It should set long term goals, and
despite working as a sub-contractor, try to come out of the GE portfolio, hence expanding
its business.

References:
I have collected the information from the following sources:

 Management and Staff Employees of the company


 Official Website of the Company
 Facebook page of the Company
 Self Observing the processes and function of the company
Annexes: