KHALID RAFIQ2008

College of Business Management, IoBM

Orient Energy Systems

IMPLEMENTATION OF HUMAN RESOURCE POLICIES

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LETTER OF AUTHORIZATION

December 13, 2008

Khalid Rafiq

Course Instructor – Human Resource Management

CBM, Institute of Business Management

Karachi

SUBJECT: Human Resource Management Report on Orient Energy Systems

Dear Sir:

We hereby submit this project report on Orient Energy Systems that you have authorized us to prepare,

in fulfillment of the requirement for the Human Resource Management course. We are submitting it

for your perusal.

This report outlines the overall operations of the organization, its business activities, processes, the four

management functions i.e. Planning, Organizing, Leading & Controlling and based on all this, the Human

Resource practices adopted by the organization at various levels of organizational and individual

classifications.

Preparing this report has been a rewarding and enlightening experience. During the preparation of this

report, we were able to correlate the theoretical knowledge you disseminated in the class with the

practical aspects. The process of preparing this report has enhanced our learning and added to our

knowledge and abilities.

If you have any queries, we are available at any time on the following numbers. We would be more than

happy to discuss any issues that you may have.

Yours truly,

Zafar Iqbal Shehzad M.

Yunus

Ali Madani Fahad Malik Muhammad

Iqbal

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

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ACKNOWLEDGEMENT

We would like to express our special gratitude to our mentor, instructor and friend, Khalid Rafiq, for his

valuable guidance in management and organizational behavior practices owing to his immense expertise

and related experience in the practical field.

We would also like to extend our thanks and appreciation towards the following people; without their

help we would have not been able to compile this report:

Mr. Muhammad Saeed Managing Director

Mr. Azhar Iqbal Deputy Managing Director

Mr. Anwar-Ul-Hasan Director, Sales

Mr. Naseem Ahmed Director, Technical

Mr. Javed Iqbal Director, Product Support

Mr. Shahid Anwar General Manager, Sales

Mr. Wasi-Ul-Hasan General Manager, Operations

Mr. M. Waseem General Manager, Product Support

Mr. Naseem Alam General Manager, Engineering

Mr. M. Mairaj Khan Deputy Manager, Commercial

Mr. M. Shamsheer Manager, IT

Mr. M. Asif Jalil Executive, HR

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TABLE OF CONTENTS

ORIENT ENERGY SYSTEMS 5INTRODUCTION..............................................................................................5PRIMARY BUSINESS........................................................................................6CURRENT MARKET.........................................................................................6SALES HISTORY..............................................................................................7SECONDARY BUSINESS...................................................................................8

RENTAL 8DIESEL GENERATOR SETS 8CHILLERS 8MACHINES 8COMPRESSORS 8

MANAGEMENT FUNCTIONS - PLANNING 9MISSION STATEMENT.....................................................................................9

ANALYSIS OF MISSION STATEMENT 9VISION STATEMENT......................................................................................10CORE VALUES..............................................................................................11GOALS AND OBJECTIVES..............................................................................11

STRATEGIC GOALS 11TACTICAL GOALS 11MBO (MANAGEMENT BY OBJECTIVES) 11

ORGANIZING 12DEPARTMENTALIZATION..............................................................................12TOTAL PERSONNEL STRENGTH.....................................................................13SPAN OF MANAGEMENT...............................................................................14STAFF GRADING...........................................................................................14DELEGATION................................................................................................15COMMUNICATION TECHNIQUES....................................................................15

COMMUNICATION FLOW 15VERTICAL COMMUNICATION 15HORIZONTAL COMMUNICATION 15

ORGANIZATIONAL STRUCTURE 17LEADING 18

MOTIVATORS...............................................................................................18ROLE MODELS 18TRANSACTIONAL LEADERS 18TRANSFORMATIONAL LEADERS 18

MONETARY REWARDS FOR EFFECTIVENESS AND EFFICIENCY.......................19LEADERSHIP BEHAVIOR AND STYLE.............................................................20

OERTIME, FOOD, CONVEYANCE, MOBILE AND FUEL ALLOWANCES...................21INCENTIVES.................................................................................................21

1. TRAINING 21

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2. PROMOTION 22TYPES OF PROMOTIONS OR APPRAISAL 22HORIZONTAL PROMOTION: 22VERTICAL PROMOTION: 22DRY PROMOTION OR RE-DESIGNATION: 223. MONETARY REWARDS22

CONTROLLING 23FEEDBACK MECHANISM...............................................................................23CONTROLLING MECHANISM.........................................................................23

1. GOALS AS CONTROLS 232. INTANGIBLE CONTROLS 233. RESOURCES234. LEAVES 23STAFF MEDICAL ENTITLEMENT 24AUTHORITY DELEGATION 25CONTROLLING DEVIATION 26FEEDBACK 26BUDGET 26INTERNAL AUDIT 26EXTERNAL AUDIT 26 INTERNAL REPORTS 26SAFETY & HEALTH 27QUALITY POLICY 28

TRAVELLING POLICY 29MIS POLICY 29CONCLUSION30

QUESTIONNAIRE ANALYSIS..........................................................................30SECTION # 1 30SECTION # 2 31SECTION # 3 32

RECOMMENDATIONS 33APPENDIX B 34

QUESTIONNAIRE..........................................................................................34APPENDIX C 34

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ORIENT ENERGY SYSTEMS

INTRODUCTION

Orient Energy Systems is one of the Pakistan’s leading energy solution providers.

Orient Energy Systems was formed by a group of highly experienced and ambitious engineers of

the industry in 1996.

In 1998, the company was approached by Jenbacher Energy officials who were in search for a

competent organization to serve as their sole distribution agent in Pakistan. After careful

evaluation, Jenbacher Energy, Austria selected Orient Energy Systems to deal with this great

responsibility exclusively and dedicatedly for the sale of gas engines across Pakistan.

2003 was a very special year when Jenbacher Energy, manufacturers of the world’s most

advanced gas engines became part of General Electric (GE Energy) and since then the

conglomerate is called GE Jenbacher.

These gas engines having output range from

300 kW to 3000 kW at 1500 rpm are

generally rated as Real gas engines running

on natural gas pipeline & due to their

unique capability to burn variety of gases

from very lean wood gas to highly rich

LPG to heavy flare gas with remarkably

high efficiency to produce most viable

power both in simple and co-generation modes of application.

The company has been offering specialized maintenance and overhaul services along with

typical and sophisticated repair skills to refurbish industrial class reciprocating internal

combustion engines. Orient Energy Systems offers to maintain the generator sets during the

operating life of the asset, which includes routine maintenance contracts, blanket maintenance

contracts, total plant management (O&M) contracts and overhaul service with complete

monitoring through their factory trained technical managers and highly skilled service engineers.

The company employs more than 1000 qualified & skilled employees including graduate

engineers, marine / associate engineers and experienced generator set operators etc., rendering

their services and are ready to back up customers 24/7.

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Orient Energy Systems also maintains a sizeable inventory of parts to meet all sorts of

requirements. These inventory stocks have been closely monitored and maintained through an

automated system through which parts specialists can precisely forecast shortages /

requirements / disbursements of parts to different projects.

The head office of the company is located in the prime vicinity of Korangi Industrial Area,

Karachi, whereas branch offices are situated in Lahore, Islamabad, Multan and Faisalabad. The

company also has a presence in Dubai, U.A.E. as well as Dhaka, Bangladesh.

PRIMARY BUSINESS

As the best dealer of GE Jenbacher gas generator sets in world for the past three years

consecutively, Orient Energy Systems is engaged in pre-sales, sales, after-sales and complete

consultancy services during and after the sales and specially after the successful commissioning

of the generator sets with its auxiliaries. Orient is involved in turnkey solution provider related to

power generation.

Since its inception in 1996 the company has more than 65% of the market share.

CURRENT MARKET

In the present market scenario, OES competes with the following competitors in its business of

gas generator sets:

Company Dealership

Allied Engineering & Services Ltd Caterpillar, USA

Masco Energy Waukesha, USA

Cummins Pakistan Cummins, USA

Siemens Pakistan Personally owned coupling facility

Powertec Guascor, Spain

Deutz Deutz, Germany

SALES HISTORY

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Year No. of Units Sold

1999 2

2000 14

2001 10

2002 28

2003 28

2004 121

2005 169

2006 115

2007 104

2008 Till July 41

Total Units

Sold Till Date633

SECONDARY BUSINESS

Rental

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Orient Energy Systems deals in rental business of diesel and gas generator sets on short term and

long term basis. The company partners with Rentec division of Orix Pakistan Leasing Company

Limited, Orix Rentec is the financial partners and Orient Energy Systems is providing the

operations and maintenance of the generator sets.

Diesel Generator sets

Orient Energy Systems also deals in Diesel generator sets manufactured in UK and USA and

assembled in Italy and Mexico.

In the present market scenario, OES competes with the following competitors in its business of

Diesel generator sets:

Company Dealership

Allied Engineering & Services Ltd Caterpillar, USA

S M Jaffer F G Wilson

Cummins Pakistan Cummins, UK

Siemens Pakistan Personally owned coupling facility

Powertec John Deere, France

Greaves Pakistan SDMO, France

Chillers

Orient Energy Systems deals in Chillers manufactured in China.

Machines

Orient Energy Systems also deals in Earth Moving and material handling equipments

manufactured in China.

Compressors

Orient Energy Systems also deals in Compressors manufactured in China.

MANAGEMENT FUNCTIONS - PLANNING

MISSION STATEMENT

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“At Orient we are striving to continue providing value to the customers by providing them the

most reliable energy systems solutions, material handling, utilities and engineering solutions by

means of superior technology, dedicated services and take care of our employees and

stakeholders”.

ANALYSIS OF MISSION STATEMENTIn view of the course studied, the above revised mission statement possesses the following

characteristics:

1. Customer Oriented It contains “we are striving to continue providing value to the customers” i.e. Orient is

providing value added to customer and support them in achieving their goals.

2. Product OrientedPreviously it was power solution provider and only supplying the gas generator sets to

industrial customer but after a tremendous growth of company in last five years and also

growth in power sector, company has also diversified itself in other fields and now Orient

is not only providing diesel and gas fuel based Generator sets but they are also providing

forklift truck and earth moving machineries for material handling solutions, Absorption

chillers for air conditioning solutions, Air compressors for air solutions. They are also

providing turnkey solutions like complete supply of products, its engineering design, its

installation, implementation and heat recoveries, means they are the solution provider to

the industry not only the power generation equipment supplier.

3. Technology OrientedOrient is the authorized distributor of GE Jenbacher gas generator sets in Pakistan and

Bangladesh and this product is having patented design and state of the art fuel governing

systems, extended maintenance interval and low ware and tear in its class means Orient is

providing Superior Technology not merely the product.

4. Concern for Employees

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Orient is compensating its employees with remuneration and fringe benefits competitive

with other employment opportunities and also providing them a place to contribute their

knowledge, skills, time and experience for the well being of company i.e. in long term for

them and ultimately providing value to customers.

5. Concern for Survival Oriented Since, company is now providing industrial solutions therefore they are generating better

profits by means of value added services to customer and benefiting their customers,

owners, employees and society.

6. Services Oriented Orient is providing dedicated services to their customers and they are having team of

highly skilled and professional engineers.

Basically, the nature of their product which is self power generation, utility, material

handling and engineering solutions demands the services of competent and trained people

round the clock philosophy is working on the same philosophy.

Orient endeavor to deliver the best customer experience by being responsive & effective to the

changing needs of various sections of society including governmental, industrial, commercial &

domestic needs in a way that benefits their customers, employees, stakeholders & society at

large. In doing so, Orient will meet customer expectations of highest quality, leading technology,

competitive pricing, energy conservation, customized designs & economically optimized

solutions with indigenous expertise. They believe in creating opportunities, utilizing and

rewarding the constructive and creative abilities, energies & vitality of their human

VISION STATEMENT

Provide economical and reliable energy solution to the industry by utilizing proven and latest

concepts in engineering and technology through most advanced piece of equipment of novel

design duly backed up by knowledge and experienced professional engineers and technicians.

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CORE VALUES

Man Controls – Machine, Method, Material & Money

GOALS AND OBJECTIVES

STRATEGIC GOALS

Attain better grip on power industry by adding more and more values to customers and

intruding new products related to power sector.

To increase the overall market share every year and try to maintain quality and services.

Diversify business.

Having satisfied employees to get the continuous growth.

TACTICAL GOALS

Keeping in view the market, Business Buyer Behavior, Brand SWOT, objectives for year 2008-

2009 is as under:

To increase the market Share from 65 % to 70 % in Pakistan and overall share of Orient

Energy Systems in all over the world from 13% to 15%.

Penetration in new segments like High Rise Building projects, Bio gas projects,

Entertainment, IPP project like IIL etc. and recreation centre.

To curtail, administrative overheads by 5 % in order to get the maximum profit to spend

on the employees, tools and on the support of customers.

Work for expertise in turnkey and Heat recovery projects to improve image and vision of

company.

MBO (MANAGEMENT BY OBJECTIVES)

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

manager gets feedback and guides and supports the employee in reaching his/her goals with the

organization goals in mind. MBO lets Orient measure the performance of each department

vision and the performance of the individuals in the department. Departmental heads and

managers monitor the goals and objectives and rely on feedback to control deviations.

Follow 3 S’s Spirit.

Speed

Specialization (Simplify)

Spirited attitude (Concentration)

Follow 3 A’s Approach

Be on the Actual place / spot

Look at the Actual Object

Confront the Actual Situation

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ORGANIZING

Orient Energy Systems has a very dynamic and progressive management structure in line with

industry practices.

Competent human resources from within the company have fuelled tremendous growth by

excelling in functional management. In this innovative age of ever changing lifestyles, fueled by

the rampant development of technology; customer have been compelled to change their

purchasing habits. Orient Energy Systems responds to this challenge of providing best services to

customers based on convenience and in line with customer requirement.

The company has a large pool of professionals in all departments which contributes to the efforts

in selling, services and support.

A thorough study of the organization reveals that the hierarchy is a blend of centralized and de-

centralized. Middle and lower level managers and officers have a medium degree of autonomy

in making routine decisions and taking controlled risks. The benefits of this approach are evident

from the fast and continuous growth of the organization in recent years.

DEPARTMENTALIZATION

The organization has been divided into departments based on business areas:

o Gas generator sales

o Diesel Generator Sales

o Chiller Sales

o Compressors Sales

o Machinery Sales

o Large Power project sales / Special project sales

o Engineering / Technical

o Parts Sales

o Product Support Services

o O & M Sales and Service

TOTAL PERSONNEL STRENGTH

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

Sales 22

Engineering 33

Product Support Services 121

Finance, HR & Administration 77

Parts 23

Operations & Maintenance 525

Sales Administration 13

Rental 275

TOTAL 1089

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SPAN OF MANAGEMENT

The span of management at OES is well established. There is not that much load on departmental

heads and managers, much due to the fact that duties of the subordinates are well delegated,

employees work in close proximity and the nature of the work is quite similar. Due to this,

subordinates require less time and supervision from their managers.

In circumstances when problems are serious and subordinates want to involve their managers or

departmental heads, then they come into action and guide them to resolve the issues effectively

and efficiently. OES’s span of control plays a vital role in improving efficiency and

effectiveness.

STAFF GRADING

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

Grade Designations

   

1 Un skilled workers and other staff

2 Skilled workers and office staff

3Sales rep, Supervisor, Junior Engineers & Junior

Executives

4Senior Sales rep, Senior Supervisor, Engineers & Senior

Executives

5 Assistant managers & Deputy Managers L1

6 Manager L1 & Deputy Managers

7 Managers & Senior Managers AGM L1

8Assistant General Manager & Deputy General Manager

L1

9 Deputy General Manager & General Manger L1

10 General Manger

11 Directors

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DELEGATION

Orient’s employee tasks and objectives are well delegated, and most of the work is repetitive or

routine in nature. This is the reason which makes the achievement of goals and objectives much

easier. Managers have the authority to make decisions and the managers working directly under

the heads of their respective departments provide suggestions, which are used in final decision

making. Each employee is responsible for carrying out his / her duties and achieving their

targets. The head of the department is held accountable for any deviations from the expected

results.

COMMUNICATION TECHNIQUES

Most of the communication at Orient is verbal, face-to-face since employees work in close

proximity with each other. Orient, however makes use of other techniques such as written,

frequent telephonic conversations. Communication uses both top-down and bottom-up

approaches.

COMMUNICATION FLOW

Communication takes place in the organization both horizontally and vertically.

VERTICAL COMMUNICATION

Vertical Communication consists of downward and upward communications. Orient’s

downward communication takes place for job instructions related to a specific task,

explaining relationship between two or more tasks, explaining procedures and practices of

the organization, feedback on individuals and is also used to encourage a sense of mission

and dedication of the organization.

Orient’s upward communication takes place to inform about progress on current work, when

serious problems arise and help is required and for providing information on new

developments in the banking sector.

HORIZONTAL COMMUNICATION

a. Friendly

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b. Information Sharing

c. Communication Freely

d. Difficulties and Problems of Subordinates

e. Responsibility of Organizational Goals

f. Team Work Approach

The management has formulated the rules for the communication control.

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

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

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

respect of its actions and policies and take timely remedial steps when it finds that

some action is causing dissatisfaction among the employees.

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

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

misunderstanding

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

between the management and the employees are constantly kept open, and properly

utilized.

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ORGANIZATIONAL STRUCTURE

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LEADING

MOTIVATORS

ROLE MODELS

The leaders are strategically placed in the organization; heads of their respective departments

are transactional leaders, while the Directors are the transformational leaders

TRANSACTIONAL LEADERS

Mr. Shahid Anwar GM, Sales

Mr. M. Waseem GM, Product Support

Mr. Naseem Alam GM, Engineering

Mr. Wasi Ul Hasan GM, Operations

TRANSFORMATIONAL LEADERS

Mr. Muhammad Saeed Managing Director

Mr. Azhar Iqbal Deputy Managing Director

Mr. Anwar Ul Hasan Director, Sales

Mr. Naseem Ahmed Director, Technical

Mr. Javed Iqbal Director, Product Support

Orient puts a strong focus on growing leaders out of the workgroups, which motivates employees

to work hard. These managers prove strong role models for their subordinates, playing the part of

a catalyst and motivate the subordinates to out-perform themselves.

Upper management uses participative style of leadership, exhibiting their participation in every

process that brings the organization forward. Upper management regularly participates during all

the trade promotion activities and actively represents the organization in the wider arena.

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Middle managers in the organization act as facilitators and liaison personnel, working as

intermediaries to ensure smooth and effective communication between upper and lower

management through them. Their leadership style is therefore supportive.

Lower managers are individuals and groups that work in close association with the workers and

employees in determining their daily issues / problems, guiding them on improving themselves,

motivating them to actively participate in every process of the organization and hence improving

their efficiency. Their leadership style is hence a directive one.

Leaders in the organization actively exercise all the powers bestowed upon them. However, this

should be clearly noted out that coercive power is used very rarely (only in extremities) to

influence the behavior of employees in reaching their goals. Powers most extensively used are

legitimate, reward, referent and expert, while information powers are exercised minimally.

MONETARY REWARDS FOR EFFECTIVENESS AND EFFICIENCY

Since OES uses an MBO structure of management, employees who achieve their goals

effectively and efficiently, their performance is acknowledged through various monetary rewards

and other benefits to maintain goal commitment. Without rewards, employees would never

work exceptionally well to reach their desired levels. These rewards play a large part in

motivating and constantly reminding them that effective and efficient work is rewarded.

Bonus payable to Diesel Engine Sales Engineers / Executives

Generator set KVA Bonus Required Gross Profit

0-25 1,250 10%

26-65 2,500 10%

66-250 5,000 10%

251-399 7,500 10%

400-500 10,000 10%

501-800 12,500 10%

801-1100 15,000 10%

>1100 17,500 10%

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

Chillers Bonus Required Gross Profit

Sales Person 20,000 9%

Application Engineer 2,500 9%

HOD 5,000 9%

In Orient Energy Systems, rewards are distributed in relation to contribution i.e. means not only sales

people are been rewarded but their team consist of applications engineers, sales assistant, sales

administrator, project engineers and even their managers are having contribution in incentives which will

provides motivation to all and they are working like a team to achieve the organizational targets and

goals.

EMPLOYEE LEARNING

Orient Energy Systems is a learning organization where employees are continuously attempting

to learn new things and apply what they learn to improve product or service quality.

PERFORMANCE APPRAISAL

ORIENT Energy Systems is using 360 degree feedback process as a performance appraisal for

managers that include evaluations from a wide range of people who interact with the managers.

The process includes self evaluations as well as evaluations from the manger’s boss, sub

ordinates, peers and customers.

Job Enlargement

Orient Energy Systems has strong belief on adding challenges or new responsibilities to an

employee’s current job.

MENTOR

Orient Energy Systems has strong belief on mentoring due to its highly experienced top

management which guides the middle management in the direction that helps them to develop.

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Succession Planning

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

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

LEADERSHIP BEHAVIOR AND STYLE

The top management uses participative style of leadership. The style of management changes to

supportive leadership style at the middle and lower management. Sometimes participative style

of leadership can be seen at the lower level but seldom.

OERTIME, FOOD, CONVEYANCE, MOBILE AND FUEL ALLOWANCES

Company has system to pay overtime to the persons as per Grade entitlement. Overtime Rates

will be Basic Salary per month /240 (Hrs in a month) x 2.

Where an employee is required to work extra than normal working hours and time exceeds 8.30

pm or works during holidays till lunch time , the employee in addition to over time (if entitled)

they will be entitled a food allowance for lunch / dinner at the rates defined in the table of

allowances Grade wise.

Employees (other than dispatch rider) who travel outside for official purpose and Company

transport is not provided, will be entitled Conveyance Allowance

INCENTIVES

There are incentives given to employees for achievement of goals by efficiency and

effectiveness, a few are as follows:

1.Training

Training is given to employees to enhance their skills and to help them in promotion and

growth. The employees are sent to foreign training to Austria or to attend courses locally to

enhance or build new shills. The training plays as a sign of promotion and growth and helps

in motivating the employee. Appropriate training to create awareness about the discipline is

how much it is valued by the management, how it is to be observed and what the company as

well as the individual will gain if he observes the norms of discipline, is a rare phenomenon.

Without such training the employees will hardly be tempted to observe the norms of

discipline.

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2.Promotion

The promotion is from within the organization because of this factor other employees are

always motivated to out-perform themselves. This incentive at Orient plays a crucial role in

keeping the employee motivated.

TYPES OF PROMOTIONS OR APPRAISAL

The organization as per the recommendation of concerned department and the HR department

consider the following modes of promotion.

1. Horizontal Promotion.

2. Vertical Promotion.

3. Dry Promotion or Re-designation.

Horizontal Promotion:

Promotion is made within the same category, within same department or to some other

without a higher scale with only a raise in emoluments.

Vertical Promotion:

Promotion is made into a higher scale or grade with a raise in total perks and emoluments,

authority and increased opportunities. Promotion made from lower level management to

middle level or higher level management.

Dry Promotion or re-designation:

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

reasons.

3.Monetary Rewards

If goals are met effectively and efficiently a high increment is give an increment of 15% on

basic salary is normal every year and when performance is high measured by goals and

objectives the employee gets a higher increment. Higher increment always keeps the

employee on his/her feet.

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CONTROLLING

FEEDBACK MECHANISM

The departmental heads arrange meetings with managers on quarterly bases for taking measures

to periodically follow-up to see how effective services are being provided and how better their

products and people are getting day by day.

Surveys, analyses, discussions, and appraisals resulting from the above-mentioned feedback

mechanism provide benchmarks by which departmental heads bring about controls against any

future expected deviations in services and support and product performance and procedures, by

providing guideline to the managers on quarterly bases.

CONTROLLING MECHANISM

Controls are a key part of management and in a fast paced business environment they help keep

the employees on their feet and play a vital role in organization goal achievement.

1. GOALS AS CONTROLS

Quantitative goals are set as controls in all departments. These goals are closely monitored

and there expected results are measured with their actual results. This gives a firm idea if the

goals are being met or not. The goals are used as a control to measure performance.

2. INTANGIBLE CONTROLS

Customer satisfaction is also used in certain departments like sales, parts and services and it

is another important control. This control is very difficult to set, as they are not expressed in

any physical or monitory sense. If the customer is satisfied they must return.

3. RESOURCES

Resource (People and tools) and funds and are also be used as controls, what resources and

funds are being allocated and what is being achieved from them.

4. Leave Policy

All leaves will be applied for by all employees, duly approved by respective In-charge &

concerned Manager and be given to Admin Department otherwise leaves will be subject to

deduction.

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Admin is maintaining the record of leaves of all employees. There is an extra point in bonus

for being punctual or having less casual leaves.

Earned /Privilege Annual Leave

Casual Leave

Sick Leave

Maternity Leave

Leave without Pay

STAFF MEDICAL ENTITLEMENT

Company has following policy:

First aid treatment for injury/sickness sustained during the course of duty is provided free

of cost by the Company including hospitalization and medicines expenses. Head of

Department should duly fill an accident report.

Employees covered under Social Security can get treatment from Social Security

Institutions.

Only those employees are entitled to medical reimbursement with the Company has

committed in writing.

Medical bills up-to a limit of 1(one) Gross salary per Annum are reimbursed upon

submission of the original bills proportionate to monthly entitlement.

Unclaimed allowance is exhausted on year end at June 30th.

There are no conditions attached for the reimbursement, how-ever the staff members are

instructed to keep the balance intact for emergency needs.

Company will arrange staff medical health insurance as per discretion of the

management.

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AUTHORITY DELEGATION

Rules regarding the delegation of powers

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

No Capital Expenditure will be incurred without the prior specific approval in writing

from Chief Executive.

In order to accelerate the process of decision-making and achieve maximum efficiency,

every Manager can further delegate authority to his subordinates within his own limits of

authority. Before delegating the authority the Manager concerned will ensure that his

subordinates possess the correct decision making capability. He will also keep in mind

that he cannot delegate to his subordinates the responsibility for the outcome of the

results.

The powers given to any Manager/Head of Department will be treated as a delegation of

authority from his superior. Every Manager/Head of the Department will be

ultimately responsible for all the results in the area of work under him. He will have

a right to withdraw anyone or all the authorities of his subordinates, if he is convinced

that the subordinate is not capable of making correct decisions or the subordinate is

persistently misusing his powers.

In order to enable a subordinate to make correct decision a free flow of information

between superior and subordinate is very essential, the subordinate should be furnished

with guidance, information and interpretation of the authority delegated to him.

The limits of authority applicable to the superior will

automatically be applicable to his subordinate.

Every Manager/Head of Department will exercise

powers only in his own area of activity unless specifically permitted to participate in the

decision concerning the other areas.

No Manager/Head of the Department will be allowed to

make a mockery of the limitation of financial powers by purposely breaking a bigger

transaction into a number of transactions in order to bring it within his level of authority.

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If the resources (man or material) of one department are

required by another department the prior approval from the head of department is

required for relocation of resources.

CONTROLLING DEVIATION

Deviation occurs when the employee loses focus of the goals and objectives. To keep that in

control, weekly meetings are held and usually the managers instantly handle such a situation to

avert more deviation problem.

FEEDBACK

Feedback is also used as a control, if the managers find any deviation or information lacking they

will know that something is wrong and the standard is not being met.

BUDGET

The budget is set for over all year and actual progress is compared with the budget and variations

are analyzed. The budget plays a vital role in understanding the variations. At the start of each

year every department head prepares a budget of the amount of funds he/she needs for achieving

the objectives and goals.

INTERNAL AUDIT

The internal audit department plays a key role in controlling because it closely monitors the

performance of the company and also evaluates that the company is following rules and

regulations as per management advice and also as per foreign principle GE Energy. The internal

audit department helps to follow laws and maintain integrity among the rules and regulations

specified by GE Energy and Top management.

EXTERNAL AUDIT

There is yearly audit and a professional firm of Chartered Accountants does it and it verifies the

working and reports directly to Top Management.

Internal Reports

Internal reports are generated on quarterly, monthly and weekly basis. These reports are

monitored strongly by the head of the respective departments and written and verbal

explanations are sought in case of any deviation. Monthly reports include:

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Sales Performance reports

Expense Reports

Since, budgets are allocated to every department for the entire fiscal year. However, the

finance department on a monthly basis monitors expenses.

Management meetings are held on a monthly basis to discuss issues regarding sales and

project completion targets, future plans etc. The GMs of the departments participate in these

meetings in addition to any other low level officers if required.

SAFETY & HEALTH

It is a policy of the Company to give paramount importance to the health and safety of its

employees. The Company aims to conduct its activities in such a way as to minimize any

possibility of danger to health and safety of its employees or to other persons on its premises.

The Company complies with the safety standards as prescribed in the Factories Act and may also

set down additional standards to meet any future requirement of health and safety. Safety Rules,

in their true spirits are been observing and adhered by all employees.

The compensation on accidents/fatal accidents/hazardous occupational accidents is made in

accordance with the Law.

All employees are following the instructions related to following areas:

Cleanliness

Orderliness

Safety Guard/Devices

Working Process

Safety Equipment

Uniform

Smoking

Waste Material

Operating & Safety Instructions

Periodic Medical Checkups

Electricity

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Containers

Machine & Equipment

Safety at Work Place

Evacuation & Fire Instructions

Accidents

Personal Health

Company’s Responsibility

Mutual responsibility

QUALITY POLICY

Orient has clearly defined quality policy and instructions for products to customer, so that

products will be:

As per specified quality standards.

At competitive price.

On-time delivery and

Prompt after-sales service

Orient has clearly defined quality policy and instructions to develop human and organizational

resources to achieve these objectives. To maintain quality and office protocol they want all

associates should be quality conscious. Therefore, everyone is required to strictly follow these

guidelines on quality.

Only rubber-soled and safety shoes are allowed in the work shop areas. Be sure to wear

appropriate shoes when working. Slippers without back strap are not allowed.

Bringing in of food, drinking and eating, are allowed but only in specified time and areas.

Do not indulge in unnecessary time wasting activities.

Do not get involved in gossip & / or rumor spreading.

CAR POLICY & POOL VEHICLES

Company maintained car is provided to managerial and above staff, sales personnel, as per

requirement of nature of job and as per recommendation of head of department.

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For business exigencies (pool Car) where such car is considered essential for performance of job

assigned to department for departmental official work

The Company bears expenses of insurance, motor vehicle tax, repairs and maintenance including

replacement of parts on Car provided to an employee.

Managers who have been provided with Company’s car are entitled to avail the facility of Petrol/

CNG as per approved limit. For fuel PSO or other oil supplying company monthly entitlement

cards will be provided which will be paid by the company on monthly basis. Employees should

use these cards for use of fuel in company provided cards only.

Travelling Policy

Company has a define policy for Travelling with return tickets, hotel stay, food allowances and

daily allowances which favors the employees during travelling.

MIS Policy

Company has a define MIS policy for following:

Antivirus Policy

Data storage on File Server Policy

Desktop Laptop Entitlement and Replacement Policy

Laptop Policy

Desktop Policy:

Desktop Laptop License Application Policy

Domain Email ID Creation and Deletion Policy

End-User Password Guideline Policy

Internet & Messenger Policy

MIS Clearance Policy

Official Email Usage and Data retention Policy

USB & Data Carrying Devices Policy

Wireless LAN Connectivity Policy

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CONCLUSION

A sample of 34 employees was taken randomly from various departments ranging from senior to

mid level and junior employees and the following results were obtained.

Most of the employees confided that the remuneration, Increment, Promotion,

benefits, facilities, training opportunities and status they enjoy are fair or relatively

better than those available in the market for the same work.

The policies regarding the rights and obligations of the employees are intact but are

not properly communicated to the employees which may result in negative emotions

and can lead to deviant workplace behavior.

Majority of the workforce is satisfied with the compensation and benefits offered to

them by the organization, their job description and their relationships with their

juniors, peers and superiors and overall organizational culture was also considered as

satisfactory.

QUESTIONNAIRE ANALYSIS

Section # 1

Compensation, tangible/Intangible benefits

0% 9%12%

67%

12%Very Dissatisfied

Dissatisfied

Undecided

Satisfied

Very Satisfied

The employees in general are satisfied with the compensation and benefits offered by the organization, 12% of the employee were very much satisfied with the organization’s compensation and benefits offerings, 67% of them were satisfied, 12% of them were neither

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satisfied nor dissatisfied and 9% of the surveyed workforce was somewhat dissatisfied with organization’s remuneration and benefits offerings.

Section # 2

Job Description / Workplace Relationships

3% 6%12%

70%

9% Very Dissatisfied

Dissatisfied

Undecided

Satisfied

Very Satisfied

The employees in general are satisfied with their job description and workplace relationships, 9%

of the employee were very much satisfied with the jobs they have been assigned and their

relationships with their colleagues, 70% of them were satisfied, 12% of them were neither

satisfied nor dissatisfied and 6% of the surveyed workforce was somewhat dissatisfied with their

job description and workplace relationships and 3% of the investigated workforce was very

dissatisfied with the job description and job related relationships most of them were complaining

about the work stress and job enlargement not been offered.

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Section # 3

Organizational Culture

3% 6% 9%

67%

15% Very Dissatisfied

Dissatisfied

Undecided

Satisfied

Very Satisfied

Organizational culture in common is assessed as satisfactory, 15% of the employees were very

much satisfied with the workplace culture, 67% of them were satisfied, 9% of them were neither

satisfied nor dissatisfied and 6% of the surveyed workforce was somewhat dissatisfied with the

organizational culture and 3% of the investigated workforce was very dissatisfied with the

organizational culture.

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RECOMMENDATIONS

Based on our study of the organization, we have come up with the following set of

recommendations:

A need to establish a link between the incentive rewards, employee performance and

company’s bottom line.

A need to encourage every employee to participate in problem solving.

A need to highlight the areas where OES need to improve its services and support for all

Customers.

A need to do the employee assistance programs.

A need to add complexity and meaningfulness to person’s work.

A need to add job rotation in order to train the individuals in various functional areas of company

and help them to understand the company better and become the valuable asset for company in

long term.

A need to communicate the company policies to the company’s personnel regarding their

jobs.

A need to produce awareness in the employees so that they know why they should learn.

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APPENDIX B

QUESTIONNAIRE

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APPENDIX C

COMPANY PROFILE