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History Of The Pakistan State Oil Company Business Essay

The creation of Pakistan Point out Petrol (PSO) can be traced back to the year 1974, when on January 1st; the government required over and merged Pakistan Country wide Olive oil (PNO) and Dawood Petroleum Limited (DPL) as Premiere Olive oil Company Small (POCL).

Soon from then on, on 3rd June 1974, Petroleum Storage area Development Firm (PSDC) came into existence. PSDC was then renamed as Point out Oil Company Limited (SOCL) on August 23rd 1976. Pursuing that, the ESSO undertakings were purchased on 15th Sept 1976 and control was vested in SOCL. The finish of that calendar year (30th Dec 1976) observed the merger of the Premier Oil Company Limited and State Petrol Company Limited, presenting way to Pakistan talk about Petrol (PSO).

After PSO's inception, the corporate culture underwent a comprehensive renewal program that was fully put in place in 2004. The program through the years included the revamping of the organizational structures, rationalization of personnel, worker empowerment and transparency in decision making through cross functional teams. This new corporate renewal program has divided the company's major procedures into indie activities supported by legal, financial, informative and other services. In order to reinforce and keep an eye on this structural change, related check and balances have been founded by incorporating monitoring and control systems.

Human Source Development became one of the key priorities on the company's plan under this commercial reform.

It is because of this effective implementation of corporate and business reform and steady application of the greatest industrial procedures and business development strategies, that PSO has been able to keep up its market leadership in an extremely competitive business environment.

PSO is the market head in Pakistan's energy sector. The company has the largest network of shops to provide the automotive sector and is the major gas dealer to aviation, railways, power projects, armed forces and agriculture sector. PSO also provides Jet Gas to Refueling Facilities at 9 airports in Pakistan and dispatch petrol at 3 plug-ins. The company takes pride in continuing the custom of excellence and it is fully focused on meet up with the energy needs of today and growing issues of tomorrow.

Pakistan State Petrol, the largest essential oil marketing company in the united states, is currently involved in storage, circulation and marketing of various POL products. The business's current market talk about of 82. 3% in the dark oil market and 59. 4% share in the white engine oil market, by itself speak quantities about its success.

PSO Major Highlights - FY 2009

Sold 7 million a great deal of furnace olive oil - the highest in the last 8 years

Efficiently managed supply to the energy sector regardless of the liquidity crisis

Imported around 90% of the country's POL imports - 3. 4 million tons of HSD and 5 million tons of FO

Helped in the revenue assortment of more than Rs. 161 billion to the GOP (Sales Tax: 97 billion, taxes: 1. 4 billion, PDL: 61 billion)

Extended support to various charitable organizations in the health & education sector including contribution for the treatment of IDPs due to the Swat operation

PSO Vision

To excel in providing value to customers as an impressive and strong energy company that gets to the near future first.

PSO Mission

We are focused on control in energy market through competitive benefit in providing the best quality petroleum products and services to your customers







Corporate Responsibility

Pakistan State Olive oil, the largest oil marketing company in the country is currently engaged in the marketing and distribution of various POL products, including Motor unit Gasoline, High Speed Diesel, Furnace Oil, Jet Petrol, Kerosene, LPG, CNG, Petrochemicals and Lubricants. In addition to this we also import different products according with their demand structure and possess the largest storage area facilities representing 80% of the country's total safe-keeping capacity.

PSO suits POL requirements of a broad spectrum of customers composed of the retail consumer, various industrial units, government, electricity jobs, aviation and sea sectors of Pakistan. We could truly the individuals of economy of the country.

A network of 3612 shops enables us to reach Pakistanis from Nagarparkar to Sost. We live proud to cater to the fuel and non gasoline needs of approximately 2. 8 million customers each day.

PSO industrial consumer dominance in the government sector can be judged by the actual fact that the major federal government entities like OGDC, Pakistan Military, Pakistan railways, Navy, NLC, PAF Wah and HIT have entrusted PSO to meet their POL needs.

Besides supplying petrol to national electricity resources like WAPDA and KESC, PSO is the only real furnace oil provider to all Independent Power Projects (IPPs) in Pakistan with a share of over 80% in furnace olive oil market. Additionally, PSO is also playing its credited role in meeting the growing energy demand of the country.

PSO also provides fuel to commercial devices like textile, concrete, agriculture, transport etc. Our professional consumer bottom part includes exclusive entities like the Presidency and the Prime Minister Secretariat, where PSO has developed consumer retailers for timely refueling of their fleets.

Furthermore, PSO also assists the energy needs of both nationwide & international airline carriers. We provide jet fuel into-plane refueling facilities at 9 airports of Pakistan i. e. Karachi, Lahore, Islamabad, Peshawar, Multan, Faisalabad, Turbat, Pasni and Sialkot.

We also supply fuel to boats at Karachi Port, Korangi Seafood Harbour & Slot Qasim. Additionally, we focus on the gasoline requirements of Pakistan Navy, Maritime Security Agency, Karachi Interface Trust, PNSC, Faisal Marine Essential oil Services (Pvt) Ltd.


Human Source of information (HR) Team has been there in PSO since it was developed. Initially, there were four "Personnel Departments" of Premier Oil Company Small, Pakistan National Olive oil and Dawood Petroleum Limited and State Petrol Company Limited. Merger into one team created some problems in the company as much employees who had been in these departments had to be relocated or given early retirements. In 2000, the "Personnel Department" was altered to "Human Reference Department".

Previously the function of Personnel division at PSO was only related to the employee functions. The worker functions consisted of keeping record of the employees, how punctual and regular are they, what exactly are their benefits and earnings, what is their history, how much experience they may have, their personal details were also stored and likewise only employee-related records were placed.

As enough time passed and the Table of Management of PSO noticed that more documents about employees need to be included in the Human Resource Team to keep kept up to date information and record of employees also to sustain a good and efficient workforce so they widened the activities of the HR division. The HR office activities now consist of job evaluation and design, recruitment, HR Planning, Succession Planning, selection, follow-up of orientation program, placement, figuring out employee's training and development needs, profession counselling, performance appraisal, benefits, disciplinary activities against misconduct and settlement management.

Alongside the development of its physical facilities, PSO is deeply aware of the pivotal role that recruiting play in the success of a business. As a matter of fact, human reference development has been discovered as a location of key importance. While conditioning the ranks of its employees with quality specialists at various degrees of management, the company also undertakes several initiatives for improving efficiency and efficiency in any way levels of services. Through computer training, various courses, sponsorships of staff for studies at professional corporations and seminars, the business offers its employees ongoing opportunities for ongoing self-improvement and learning.

In modern times, health, safety and environment (HSF) has emerged as one of the major topics of corporate and business governance at PSO. As They Strongly Believe That Human Source is the asset that should be appreciate with the passage of time. Consequently, PSO considers a solid focus on the development of a value added and Worthwhile Investment.

HR Techniques OF PSO

JOB Examination AND DESIGN

Job making is not really a formal process but it's important for HR team when it desires to employ new employees or give marketing promotions to the present employees for a particular designation. Employees (mainly professionals, General Managers, Performing General Professionals, and Deputy General Managers) are also included while designing the work being that they are the ones who make a decision which tasks, obligations and duties are to be performed where employee.

HUMAN Source of information INFOMATION SYSTEM

With the execution of SAP it is becoming easier to store and update information about employees. The HRIS is up to date daily and it also modified when there is certainly hiring, copy, sanction of loan to employees, increase in allowances and etc. HRIS stores all information about employees like their personal backgrounds, budget, pay slips, leaves availed, designation, performance appraisal, just how many offers have they received, projects which they worked, training and development that they had, their weaknesses, interests, skills and abilities and so many more things.

Authorization to HRIS is given to Professional Director of HR team, Senior Exec and Senior Officer has authorization for storing and updating information on Recruitment, Copy, Time Management and Leave Policies. Brain of HR and Payroll division are responsible to validate that employees get their salary by verifying from loan company about copy of wages from PSO consideration to Employee's bill. Both of these get access to this information in HRIS. Section can also confirm this information from HR team. So from each section some employees have authorization to access HRIS. Each office is permitted to use its information plus they cannot have access to the info of other departments.

Because of SAP job explanation for many careers changed as much jobs required technical skills that will be the employees should feel comfortable to use personal computers. Because of this HR department acquired to change and update the info of job building.


Following are the steps that HR needs for designing job:

Identifying the job

Gathering job profiles



Identifying THE WORK: The first rung on the ladder is to identify the work vacancy. The HR people identify the number of careers that are in the business and then design the ways of collecting the information.

Gathering Job Information: After figuring out the job, the HR people then collect information about the job. They are doing so by obtaining information from HRIS. In addition they do surveys, interviews of individuals doing the same job, dialogue with the department's supervisor and also take the help of experts to know the tasks, skills and duties required to get the job done and also to see how effective their settlement offer is.

Rationalizing: After gathering required information, they sort out the information to add the required and job-related information and get rid of the information that's not relevant. They also rationalize the info based on the regions. For instance, the job specification of sales official in Karachi will be different from that of Bahawalpur.

Documentation: After rationalizing the info they document the information in the form of job description in order to make reference to it whenever required. They keep it both in the form of manual and also in the HRIS.


HR people contemplate it important to see employees while collecting information because employees then feel respected and they think that their views will be considered and they have some impact on the decision HR people make. For example, this past year they organized workshop of Organizational Health Service that was done with respect to PSO to find out that how employees experience the company and the result was that 80-90% of the employees were happy. There have been also some questions regarding the company like reveal one thing you want to change in the business. Afterwards, they advised that their employees about it and told them that they were happy with the results and they asked the employees who had been unhappy to come quickly to HR people and discuss their problems in order to find a remedy for this.

For job evaluation and design, they also take the employees recommendations into consideration through suggestion containers and the e-mails that they get. The supervisors are also asked to acquire wide open communication with their workers to see that they do not have overload of work and they are satisfied with their work.


Performance benchmarks make the employees' shows be measured. It can help HR people know that whether there are any defaults in their job design. For the evaluation of performance, they use comparability method. The supervisors are required to do it on the weekly basis so that any issue can be identified beforehand.


In this process, workers must do same work over and over and their task is simplified such that it requires less time and effort and the work is done successfully. The drawback of this approach is the fact employees get bored of doing same and this bring about fatigue. But there are a few careers about which nothing can be carried out. For instance, chemist can't be sent to the marketing section as his work relates to the chemicals and there are no departments in PSO where he can be sent to improve his/her skills unless see your face is really prepared to learn various other skills apart from his/her field.


PSO has Job Rotation Plan which employees may use when they would like to or when HR would like to move a worker to other section. Its disadvantage is the fact that if an employee acquires skills that he/she will not use it, it'll be an expense for the business so it is additional investment by the company. For example, if an IT person is relocated to Brand Management department and he does not have any interest in after that it it'll be of no use to the staff and the business. If the same worker is delivered to SAP section then it will be beneficial both for the business and the staff.


Human Source planning is important so that every time a problem such as vacancy of any job occurs it can be dealt quickly. That's the reason there's a need of proactive methodology. Everything needs to be organized for efficient and healthy working of the business.

The main causes of demand of employees are company growth and because of implementation of SAP PSO got a new department named "SAP Department" and they had to employ people because of this department and. By using Human Source of information plan, HR people can easily predict the future vacancies that are anticipated which is by analyzing the tendency projections, asking the departments' brain if they think that a worker of his team might leave the company and by seeking help of experts.

Employees' activities such as terminations, resignations, fatalities etc. cause demand of employees. Due to these actions a distance is formed and the HR people have to intervene to fill this distance.

Estimate of Human being Resource supply is performed from analyzing previous data, history, previous experience and also the demand that may occur. It's important to proactively make a decision that who will replace who when there is any vacancy to be able to allow the company to work in a harmonious way.


Recruitment is the process of locating identifying and attracting in a position applicants. Sources of recruitment for PSO are as follows.

Internal search


Employee referrals

Public job agencies

Walk in candidates

College and Colleges etc.


When there is a vacancy of PSO a large amounts of applications are received mainly through the advertisements in the newspapers or through the referrals of current employees. The employees screen the applicants. Because the recommenders know both job and the person being recommended they tend to refer job seekers who are well trained for the position.

PSO prefers inside supply of employees for two reasons:

Current employees are already adjusted with the culture of firm.

It reduces the cost involved in recruitment, selection, orientation and training programs.

The want to encourage their current employees that they care for them and assisting them to grow by promoting them.

The interior employees feel the sense of belongingness, are motivated and be more productive, which is also beneficial for the business.

Internal candidates must be a confirm employees of PSO who have completed atleast twelve months of service in their existing designation.

Selected candidates must sign up for the new position after getting clearance from seniors and will be on probation for a period of 90 days.

External Recruitments requirements:

No prospect under years of eighteen can apply for the job

Department Heads are also involved with hiring processes

Human resources jointly with the team heads determine the salary range

Minimum qualification must be considered a bachelor degree

Candidates are required to effectively complete any job related written test directed at them


PSO's policy is the fact if the staff has done something wrong then your company uses the option of firing as a mean of de-recruitment. This seldom happens unless someone has shattered the rules of the company. Sometimes employees are also transferred. PSO lately used another method of de-recruitment. They used the Golden handshake design and voluntary parting schemes.


The two major troubles encountered by the PSO during recruitment are:

Growing competition: The major challenge that PSO acquired to face just lately was the competition by "Telenor" and "Warid", which instantly came up and began getting the manpower of PSO and other organizations by offering high income and incentives. Lots of the PSO employees still left the organization to join Telenor and Warid and the harmonious working system of the business was disturbed by the competition and it had taken them enough time to stabilize the organization and get the company's operations back on the right track.

Availability of trained employees: The next problem is the availability of qualified employees in the market. Sometimes it happens that whenever they are hiring a person for particular designation then there may be shortage of qualified employees and the pool of applicants is very less and they decide not to hire anybody and to wait for sometime or give training to internal employee and promote him by saving the excess cost that would have been required for employing new employees.


Selection is the process of screening process job job seekers to ensure that most appropriate applicants are hired. In PSO they select an employee on the basis of his certification. Different selection devices are used to find the best suitable prospect for the work.


The selection process is a series of specific steps used to decide which recruits should be employed. These are stated below:


The candidates have to drop their Resumes in dispatch division or send it on the site. The HR people also type the information that they have in their HRIS about people who had kept their resumes before like walk-ins.


Those applicants who match with the company's requirement are educated about the particular date of test. It is an intelligence, aptitude and potential test. If the organization has to select 15 people than 45 employees are needed an interview and the best 15 are employed. The challenge that the business must face during the hiring of employees is the limitation on recruiting people. PSO only hires the employees that are required to perform tasks.


The interview depends upon the level of worker to be appointed. If it's for low level then only one interview is conducted of course, if an employee is appointed for the middle or top management then your group of steps follows. Normally there is certainly one worker and 3-4 employers during the interview. The advantages out of this interview composition are that the extremes are cancelled out; biasness is removed, discrimination is discouraged, true view is manufactured and the employer's skills in different subjects helps to find the right person for the right job. The down sides are dominating employer if any, the employee gets nervous in front of many employers, conflicts between employers that who should be determined.


After the interview is conducted, employee's backgrounds and personal references are inspected to avoid false boasts, work experience, salary, integrity and credibility of employees. Employment references receive more inclination then personal references because it explains to the employers about the employees past working conditions, devotion and behavior at the job.


After a job candidate has been decided on, he is literally examined. For careers with certain requirements, the physical exam has some validity, which includes blood test, blood circulation pressure check up, temperatures and chest X-rays.


The taking care of director of HR division makes the ultimate decision for selecting the employee's once they have been nominated by the mature executives who gets the selection process heading. The unselected people are usually notified through words after the applicant is determined and confirmed for the job. The record of unselected people is maintained for future years job openings.

Training and development techniques at PSO:

The training functions in PSO are aimed at providing the essential company related and job related knowledge to the newly employed applicants. The training processes may take shorter times like a discussion of few minutes or longer times like 2-3 days with regards to the character of work and certain requirements of the job. It is also some times on the power of man or woman who how early on he picks the information. The trainers are well capable of providing the training services to the employees, they can be discovered, experienced, forthright and intention. The training process is targeted at placing the trainees relaxed, making them take interest, making them make inquiries the ambiguities and making them available of the entire knowledge that is necessary for their individual jobs.

The reason for training the existing employees is to up grade the capacities and efficiency of most those employees and put together them to get more detailed accountable positions in future. Provide employees with increased opportunity to grow and succeed with in the business. To bolster management and professional teams by any means organizational levels. To construct training programs and provide employees a variety of Job skills, Techie, Clerical and Supervisory and Managerial courses. The employees are trained officially and routinely either locally or abroad regarding pre-planned programs. Training in PSO upgrades features of employees, provides advice and individual guidance.

Some techniques and options for Training Employees:

Training through lectures

Use of Aesthetic supports for training

Training through making employees visit job areas

Training while focusing on job

Training for special tasks etc

Employee settlement at PSO:

Employee with receive reimbursement that is pertinent to the field experience matching with approved salary structure of the positioning.

Employee starts up a merchant account in the company preferred standard bank.

The salary is credited in the lender by the end of every month.

On resignation, the worker is paid his dues within fifteen business days starting from the day he left the organization.

Increments are also given at the end of the entire year, increments are percentage of wages.

Promotions are given on good performance after concluding two years in the current grade.

Bonuses are given on worthy performances as a way of appraising.

Bonuses are also given to the long term employees on both of the Eids and on other times too if the management determines to do so.

Employee Relations in PSO

Equality of employees:

In PSO, every staff has some integrity & value in his / her own. All employees always are equal in PSO. There is not any discrimination in employees in the business based on ethnicity, faith, color, race etc.

PSO never compromise on the health & security of employees. This is why they have restricted security of its offices, pushes and stores. If you wish to get in the building of PSO or the pumps and outlets of PSO you have to go through the security. PSO believes that worker should feel secure literally as well as psychologically. Because of this PSO provides its employees job security in the hour of downturn.

Medical Benefits:

Confirmed employees and their immediate family are protected in this insurance policy. These benefits are provided through the insurance company. These benefits cover both out-patient and hospitalization.

Workplace Protection Measure

Intelligent Fire Detection System

PSO, being the company that gets to the future first stay abreast with the latest inventions not only in providing systems that ensure customer health but also in the systems that ensures the safe practices of PSO's Property and its Human being Resource. Keeping this vision in awareness, PSO has chosen state of the start Intelligent Fire Recognition System for the top office and for other PSO facilities. The purpose is to find the open fire at its early stage and the reason is not limited with detection but it addittionally identifies the precise location where fireplace has actually destroyed out.

Employee Wellbeing Measure

Water Filter

As mentioned earlier, PSO gives credited importance to its employees at every level.

A step towards employees' wellbeing is the installation of water filter plant at PSO facilities i. e. terminals, depots, aviation stations, LPG plants, blending plants and retail outlets. You will find three main resources of drinking water source at PSO facilities;

1. Floor Water

2. Local Drinking water Supply System

3. Tankers

The normal water sample is collected for trials at laboratory. Earth water is analyzed once a year for microbial & chemical substance constituents while piped & non-piped system of source is examined bi-annually for microbial constituents and once in 12 months for substance constituents.

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