Вы находитесь на странице: 1из 40

1

CHAPTER – 1
1.1 PURPOSE OF THE STUDY.

 The main purpose is to fulfill the basic requirement of


the course leading to MBA Degree under IBA – MBA
Programme.

 To familiarize the reader with the process of


corporatization of Power Sector in Pakistan.

 To understand the function of the organization.

 To know the working procedure of the organization.

 To help enhance the writing skills as well as to learn


the techniques of conducting research on any major
business concern.

 To practically see the application of Business


Administration/ Management Techniques being applied
in a big utility organization like HESCO.

 To know how the recruitment process is completed is


finalized and recruitment is made in any organization
like HESCO.

1.2 METHOD OF STUDY.

The research was conducted by working I the HR


department in HESCO being the head of the Recruitment
Cell occupied the position as Deputy Manager (HRM), being
the head of section working since last four years. The
recruitment is completed in the each year.
2

During the course of study various techniques were


adopted which including personal interview, collection
Primary Data/Secondary data collection of secondary Data
from various reports / statements which have been
incorporated in this research report.

Since HESCO is a corporatized entity of WAPDA various


policies, rules, instructions and procedures framed by
WAPDA and published in various bulletins and reports have
also been referred to.

1.3 LIMITATIONS:

• Secrecy of data made it difficult to gather the


information.

• HESCO domain is spread throughout Sindh touching


the boarders of Balochistan and Punjab which made it
difficult to practically reach every strategic place.

• Lack of time and financial resources.

• Confidential section of Recruitment Cell of HESCO


made the researcher so difficult to trace the old record
of recruitment made in the past 10 years, to compare
the existing strength of recruitment made by HESCO
with the recruitment made during the last several years.
3

CHAPTER – 2
INTRODUCTION
2.1 HISTORY OF WAPDA
The Water and Power Development Authority (WAPDA)
was established through a parliamentary enactment in
February 1958 for integrated and rapid development and
maintenance of water and power resources of the
Country. This includes controlling soil salinity and water
logging to rehabilitate the affected land in order to
strengthen the predominantly agricultural economy of
the country. Its operation call foe a high degree of
financial discipline so as to secure regularity in its
transactions and also watch the timely assessment and
realization of its revenues on account of sale of power.

2.2 MAIN FUNCTION OF WAPDA


As per the charter, amended in March 1959 to transfer the
existing electricity departments from the federating units
to it, WAPDA has been assigned the duties of investigation,
planning and execution of projects and schemes for
• Generation, Transmission and distribution of
power,
• Irrigation, water supply and drainage,
• Prevention of water logging and reclamation of
saline land,
• Flood control and
• Inland navigation.

2.3 THE AUTHORITY, MANAGER AND HUMAN RESOURCE


The Authority, composed of four members, is headed by a
Chairman. The other three member are one from each
headed as Member water, power and finance wings. The
administration part also comes under Member (Finance).
The Members oversee the affairs of their respective wings
through General Managers for the streamlined operations
4

in the respective disciplines. For all practical purposes, the


entire country has been divided into zones.
Over 46 years of operations, WAPDA's human resource has
developed into a reservoir of knowledge, competence and
expertise through training and experience gained at the
accomplished projects and remaining associated with
diversified development activities. Presently, the human
resource number is 1,33,564. These include professionals,
specialists, scientists, economists, administrators,
accountants and skilled workers for planning, building,
managing and operating projects. Power wing being the
developer and custodian of the largest and most
significant utility service in the country employees over
eighty nine per cent of the human resource followed by
water wing and common services.

WATER

Member (Water) controls the water sector in the entire


country divided into north, central and south zones. These
cover, in general, North West Frontier Province (NWFP),
Punjab, Sindh and Balochistan federating units
respectively. The activity of water wing involves execution
of surface and sub-surface water development and
drainage-Salinity Control and Reclamation Projects
SCARPs). Chief Engineers and Project Directors imR ent the
projects.

POWER

Member (Power), heading the wing, supervises the


functions of Chief Executive, National Transmission and
Despatch Company (NTDC), 12 General Managers, Director
Generals and Chief Engineers. Each of Planning, Finance,
Grid System Operation (GSO), Grid System Construction
(GSC), Thermal Operation, Hydro-electric Power,
5

Coordination and WAPDA Power Privatization Organization


(WPPO) departments are headed by General Managers. A
Director General heads the Customer Services and Chief
Engineer, Power (Operation) departments.

Each of eight corporate distribution companies is headed by a


Chief Executive who has a host of technical and non-technical,
skilled and unskilled paraphernalia under him. Five of these
companies are operating in the thickly populated province of the
Punjab and one each in NWFP, Sindh and Bal07rovinces.

FINANCE
Member (Finance) has under him the departments of
Finance, Internal Audit and Budget and Accounts headed
by General Manager (Internal Audit) arid Director General
Finance (B&C). He also exercises administrative control
over Chief Engineer (Central Contracts Cell), Director
General (Taxes), 7 WAPDA and Director Public Relations.
A General Manager for general administration and services
has two Director Generals to assist him, one each for
Services and General Administration, and Medical Services,
General Manager for Monitoring and Surveillance has a
Director General and a C!)Jef Engineer (Monitoring) with
him. He also handles matters relating to Wafaqi Mohtasib's
office.
Secretary WAPDA prepares minutes of the Authority's
meetings, maintains records of its decisions and issues its
directives and coordinates among the three Wings besides
monitoringjU1d implementation of Authority's decisions.
WAPDA has an elaborate setup for training covering all the
wings of the Organization headed by a General Manager.
Grants made by the federal and provincial governments for
specific jobs.
• Loans obtained from the federal and provincial
governments.
6

• Sale proceeds of WAPDA Bonds.


• Loans obtained by the Authority with general
sanctions of the government
• Foreign aids and loans obtained from he IBRD,
ADB and other international loan giving agencies on
such terms and conditions as may be approved by
the government
• Sale of power
• All other sums received by the Authority

2.4 RESTRUCTURING OF WAPDA


The corporatisation process was effectively completed and
the corporatised entities of WAPDA (9 DISCOs, 3 GENCOs
and NTDC) are functioning under independent Board of
Directors. The process of Manpower Transition was
completed and the manpower had been assigned to the
Companies. All HR activities including hiring and promotion
for Grade I to 17 was also assigned to Companies.
Significant progress was made in respect of devising
policies and procedures for promotion and induction
boards, administrative powers for disciplinary actions and
leave rules.
Transfer of title of immovable assets from WAPDA to
Corporate Entities in the revenue record is an ongoing
process. Practically, all entities have the physical
possession of all their operational assets. However,
approximately, 65 percent transfer of land was achieved
before the end of the current year and WAPDA has agreed
to give Irrevocable Powers of Attorney to all Companies to
enable the Companies to assume ownership. As far as
transfer of liabilities is concerned, the execution of loan
7

transfers from WAPDA to corporate entities is almost


complete and all loan liabilities were allocated to the
companies. Loan liabilities transfer agreements (LL TAS)
were signed with all the companies, which are the mother
agreements for the purpose of transfer of loans. Bonds
liabilities agreements (BLA) for transfer of liability
pertaining to WAPDA Bonds were signed between WAPDA
and the Corporatised Entities.
Consequently, almost all major lenders (i..e. World Bank,
JBIC, KFW, IDB, French, ADB, Kuwait, Swiss, Swedish and
Nordic) gave their consents for transfer of their loans from
WAPDA to the corporatized entities. World Bank suggested
a draft agreement and Law and justice Division gave its
concurrence on the draft Loan Assumption Agreements
(LAAs), Subsidiary Loan Assumption Agreements (SLAAs)
and Amendment to Guarantee Agreements (AGAs) of
various companies. Out of 294 the hulk of Loan
Agreements were signed by Company, WAPDA and EAD.

2.5 CORPORATIZATION / PRIVATIZATION OF WAPDA.

The corporatization/privatization of WAPDA including


mainly Power Wing of WAPDA, which has been divided into
Thirteen (13) companies consisting of Nine (9) distribution
companies (DISCOs), three generation companies (GENCO)
comprising different Thermal Power stations and one
National Transmission and dispatch company (NTDC)
which is composed of 500/220 KV network of Grid Stations
and Transmission system of WAPDA. These have been
corporatized as separate entities.
8

CHAPTER – 3
ORGANIZATION OF COMPANY (HESCO)

3.1 BACK GROUND

In implementation of Govt. of Pakistan Programmed for


restructuring & privatization of Pakistan Power Sector,
Hyderabad Electric Supply Company Limited HESCO was
formed by converting defunct Area Electricity Board (AEB)
Hyderabad into a incorporated Company Limited by
shares. Company’s historical back ground and its
objectives have already been discussed in detail in
preceding chapter at section 1.3.

3.2 ORGANIZATION OF HESCO.


The comprehensive terms organization and organization
structure have been defined by many authors. The concept
of some authors is given below:

According to Mescon, ALberd & Khedouri (1980) “an


organization is group of people whose activities are
consciously coordinated towards a common objective.
Organization is frame work of management in action. It
was defined earlier as the structure of responsibilities
allocated to the managerial, supervisory and specialist
positions and of the relation that arise in the discharge of
those responsibilities.”

Simply draw a line form Chief Executive Officer to his


subordinate executive colleagues, indicating functional or
specialist relationship, may be a useful representation of
specific relationship. The relationships are the part of
planned pattern of working of management which enable
to executives to cooperate in the pursuit of common task
9

and in the fulfillment of common policy (Breach & Long


man).

3.3. HESCO, COMPANY AND ITS OBJECTIVES:

Hyderabad Electric Supply Company Limited was


incorporated during July 1998 under the company’s
ordinance 1984 as public company limited. The company is
formed to takeover / acquire all the properties, assets and
liabilities of Hyderabad Area Electricity Board owned by
Pakistan Water and Power Development Authority
(WAPDA) and such other assets and liabilities as decided
by the Authority the company’s main object is to distribute
/ supply electricity to the existing consumer residing the
province of Sindh except Karachi Division and
extend/expand the business, infrastructure, facilities and
activities within the geographical boundaries to provide
electric supply services to the prospective consumers.

The authorized share capital of the company is


Rs.50,000.000 Million divided into five thousand Million
ordinary shares of Rs.10.00 each. It is run through a Board
of Directors consisting of 6 (six) members and one being
its Chief Executive. As per memorandum of association,
company’s other objects includes:-

• To carry out the village electrification within the area of


supply.

• To carry out the renovation and augmentation


including extension of HT/LT lines.

• To ascertain the tariff rate with the approval of


National Electric Power Regulatory Authority (NEPRA).
10

• To build, construct, maintain buildings and offices as


per own requirement.

• To install services & equipment, meters and other


devises for the purpose of measuring power consumption.

• To acquire transport of any kind which are necessary


of supply & distribution of electricity?

• To carry out business of running, managing software


and computer programme for use in connection with the
same.

• To enter into agreement with firms etc, for the


purpose of carrying out any business of the company.

• To carry on the business & provide with associated


services.

• To borrow, raise funds on secured money in such a


manner as the company deems fit.

• To open, operate bank accounts of the company with


any bank.

• To act and undertake the business as mentioned in


the memorandum of association of HESCO.
(HESCO chart of Accounts by SGV Consultants 1997)
11

CHAPTER – 4
HUMAN RESOURCE DEPARTMENT
4.1 THE HUMAN RESOURCE DEPARTMENT

The function of the HR Manager are acquiring training,


appraising, and compensating employees, and attaining to
their labor, relations, health and safety and fairness
concerns, along with the responsibility of to look after the
affairs of existing staff and also thousands retired once.
Recruitment of new employee’s promotions and other
incentives and all the assignment related to the employees
are being done by HR Manager/department. There are also
other many reasons for what HR Manager/department is
important. For example an Organization won’t like to.

 Hire the wrong persons for the job.


 Experience high turnover.
 Find your people not doing their best.
 Waste time with useless interviews.
 Have your company taken to court because of discriminatory
actions.
 Have your company cited under Federal occupational safety
laws for unsaved practices.
 Have some employees think their salaries are unfair and
inequitable.
 Relative to other in the organization.
 Allow a lack of training to undermined your department
effectiveness.
 Commit any unfair labor practices.
12

Within an organization a line Manager HRM responsibilities will be as


followed.

 Placing the right person on the right job.


 Orientation for the new employees.
 Further training of employees for improving their
performance.
 Creating working relationships and integrity.
 Creating and maintaining department moral.
 Protecting employee’s health and physical conditions.

4.3 HR & ADMN DIRECTOR

He is responsible for the formation of this department. He


keep vigilant eye on each and every step taken by HR
department by his immediate subordinates i.e Manager
(Admn), Manager (HRM) and Manager (L&L) and Deputy
Managers.

4.4 MANAGER (HRM)

Manage (HRM) is responsible for conducting enquiry of


disciplinary actions from BPS-11 to above making
recruitments, promotions, and Trainings etc.

4.5 MANAGER (ADMN)

Manage (Admn) is responsible to deal Audit/Draft Paras


supervision of all services matters for provision of the
facilities i.e. W.W.Funds, Marriage Grant, Pension,
compensation to the widows etc.

4.6 MANAGER (L&L)

Manage (L&L) is responsible for handling the legal affairs


of the company with and follow up the cases in the court of
13

law. Arranging the meetings for Labour Management


Relations in order to buildup cordial industrial relations etc.

4.7 DY. MANAGER (HRM)


Dy. Manage (HRM) is responsible for making induction
through out HESCO including the children of (WAPDA
Employees) conducting written test/interview against
various categories etc.

4.8 DY. MANAGER (TMP)


Dy. Manage (TMP) is responsible for establishment
matters, such as maintaining the records of the
employees, regarding Trainings, their promotions, Up-
Gradations, Selection Grade, Transfer/ Postings of
officers/officials etc.

4.9 DY. MANAGER (SERVICES)


Dy. Manage (Services) is responsible for dealing the
services matters pertaining Medical facilities to the
employees, Welfare Funds to the widow of the employees,
Marriage Grants, Scholar ship to the children of employees,
House Acquisition facilities.

4.10 DY. MANAGER (TRANSPORT)


Dy. Manage (Transport) is responsible to providing the
transport facilities to the employees for pick and drops
from offices of residence the facilities to their children for
going to Schools and providing the vehicles and
maintenance to officers of BPS-17 and above as per there
entitlement.
4.11 DY. MANAGER (SECURITY)
Dy. Manage (Security) is mainly responsible for providing
security measures to the installation of WAPDA (i.e. Grid
Stations) and residential colonies for officers/officials.
14

4.12 DY. MANAGER (L&L)


Dy. Manage (L&L) is responsible to assist in the legal
matters for HESCO company such as attending the Labour
courts, office of Wafaqi Mohtasib, High Courts and
Supreme Courts etc.

CHAPTER – 5
HUMAN RESOURCE MANAGEMENT

5.1 CONCEPT
The concept of Human Resource Management has been
defined by various authors. William and Keith Davis have
defined HRM as:
“The term Human Resource” refers to the people in an
organization when managers engage in human resource
(HR) activities as part of their jobs, they seek to facilitate
the contribution, people make to achieving and
organization’s strategies and plan. The importance of HR
efforts comes from the realization that people are common
element in every organization they create the strategies
and innovations for which organizations are noted. As a
slogan at a Union Carbide plant puts it “Assets make
things possible, people make thing happen”. According to
Richard L Daft “The Term Human Resource Management
refers to the activities under taken to attract, develop and
maintain an effective work force with in an organization”.
15

5.2 FUNCTIONAL PROFILE OF HUMAN RESOURCE AND


ADMINISTRATION DEPARTMENT (HR&AD) IN HESCO.

As described in the manual of Human Resource and


Administration prepared by the consultant M/S Siddat
Hyder Morshid & Co., the Human Resource and
Administration (HR & Admn.) Department is headed by
Director (HRM and Admn) and is responsible for
development and effective implementation of policies and
guidelines relating to various aspects of human training
and professional development, performance appraisal,
compensation management, competency assessment,
industrial, relation, disciplinary matters, etc. On the
Administration side, the Department is primarily
responsible for provision of various support service
including maintenance of office premises and office
equipment, management of staff housing colonies, security
and safety at office premises, administration of contract
service, mailing, telephone, stationery etc.

The organization chart of Human Resource and Admn.


Directorate is at Exhibit - 3.1. The specific responsibilities
of the Department relating to Human Resource
Management and Administration are discussed in following
sections.

5.2.1 HUMAN RESOURCE PLANNING

Human Resource Planning is the forecasting of Human


Resource need and the projected matching of individual with
expected job vacancies. In HESCO, man power requirement
are forecasted by various departments and sections
according to need commensurate with the quantum of work
and volume of consumers. These requirements are
consolidated at Head office level and got approved form the
Chief Executive HESCO Hyderabad by Director HRM & Admn.
16

5.2.2 JOB DESCRIPTION

A job description typically lists job duties as well as


desirable qualifications for a particular job (L Daft – 1996).
IN HESCO Director (HRM & Admn.) reviews job descriptions
and person specification of incumbents on bench mark
position to identify any deviation viz a viz specified
responsibilities and actual avtivities and task under taken
by incumbents.

5.3 ORIENTATION

Orientation has been defied by many authors of Human


Resource Management literature. Keith Davis defines it
was “Orientation programs familiarize primarily new
employees, with their roles, the organization, its policies
and other employees.”
All newly appointed employees are subjected to orientation
at HESCO Regional Training Institute. The purpose of such
orientation is to familiarize the newly appointed personnel
with the department and its various functions heads of all
the sections take part in the orientation programme.

5.4 TRAINING & DEVELOPMENT.

Training and development represents a planned efforts by


an organization to facilitate employees learning of job
related behaviors (Bernad Keys - 1988). Some authors
distinguished the two forms of intervention by noting that
the term training usually refers to teaching low level or
technical employees as to how to do their present jobs
whereas development refers to teaching managers and
professionals, the skills needed for both present and future
jobs (Richard Daft – 1996). On the job training refers to a
type of training in which an experienced employee is asked
to take a new employee under his wings and show the new
comers how to perform job duties (Richard Daft- 1996).
17

Human resource manager is responsible to identify training


needs in various disciplines with in the organization and
formulates training policies and submit it for the approval
of management. He also organizes in house courses and
workshops by inviting professional trainers or make
arrangements for participation of employees in programs
conducting by various institutions.

There also exists a continuous process of on-job training


for different categories of employees like Line Man, Line
Foreman, Meter Inspector, Line superintendent, Junior
Engineers etc, at HESCO level. Officers are also imparted
various management, technical and financial training at
WAPDA Distribution Academy Islamabad and WAPDA Staff
College Islamabad where Jr. Management, Middle
Management and Sr. Management Courses, mandatory for
promotion to posts in Basic Pay Scale (BPS) 18,19 and 20
respectively are conducted.
5.5 CAREER DEVELOPMENT
A career consists of all the jobs held during one’s working
life. For some people, these jobs are part of a career plan
for others, a career is simply a matter of luck. Merely
planning a career does not guarantee success. Superior
performance, experience, education and occasional luck
play an important role. Successful peoples identify their
career goals plan and then take action. With modern
employers continuously restructuring, in response to their
competitive environment, traditional life long employment
relationship with a single employee are becoming less
likely. In order to cope up with such situations and reduce
the employees turnover, career development is now an
accepted Human Resource Strategy. Effective career
planning programs may reduce turnover, specially
amongst those who have the greatest career mobility, the
best employees (Werther Devis 1996)
18

In WAPDA Career management Cell is functioning under


General Manager (Administration) at head office which is
responsible for all movements transfers, postings, training
and promotions etc, of officers in Grade-18 and above.
While at HESCO level Director Human Resource formulates
career progression plan for all employees in consultation
with the user department. He is assisted by a Manager
(HR&Admn.) in this task. For example as per service rules
a Line man can move upto the level of Line Superintendent
and a Line Foreman/Superintendent (B-Tech Qualified) can
become Junior Engineer also (Service Rules for Technical
Subordinates -1996).

5.6 PERFORMANCE APPRAISAL


Performance appraisal has been defined by different
authors of HRM in different ways. Similarly Werther Davis
has defined it in the following words:
“Performance appraisal is the process by which
organization evaluate individual job performance. When it
is done correctly employees, their superiors, the HR
Department and ultimately the organization benefits by
ensuring that individual efforts contribute to the strategic
focus of the organization. However, performance
appraisals are influenced by other activities in the
organization and in turn affects the organization’s success.
Performance appraisal are about employees performance
and accountability”.

In HESCO, employees performance evaluation is done at


the end of the each year through Annual Confidential
Report (ACR). WAPDA has prescribed two separate formats
for performance evaluation for employees as well as
officers. ACR is required to be initiated by the incharge of
officer, section, branch called Initiating Officer (I.O.) who
gives his assessment of performance of the employee
covering various aspects of personal qualities and
19

performance standards. The ratings may be outstanding,


very good, good, average and below average. All upward
movement of employees career such as promotion, move
over, grant of higher scale are dependant upon ACRs.

5.7 COMPENSATION
The term compensation refers to:
1. All monetary payments, and
2. All goods or commodities used in lieu of money to
reward employees (Henderson -1985)
R.L. Daft states that “An organization’s compensation
structure includes wages and/or salaries and benefits such
as health insurance, paid vacations or employee fitness
centers. A company’s compensation structure does not
just happen, it is designed to fit company strategy and to
provide compensation equity.”

During internship the Manager (HR & Admn.) informed that


HR & Admn. Department is assigned the task of reviewing
salary, scales and benefits structures and conducting
salary surveys for attaining internal equity between jobs as
well as competitiveness with the external job environment.
However, since HESCO has not yet started functioning as
fully autonomous corporate entity and its work force
consists of WAPDA employees on secondment
(deputation), it has not designed independent wages and
salary structure for employees.

It was also intimated that the present salary structure of


employees in HESCO is exactly at per with that of
employees of federal and provincial Governments in Basic
Pay Scale 1 to 21. However, some fringe benefits like job
related technical as well as qualification allowances, free
use of electricity upto certain limits according to pay scales
20

and medical facilities etc, have been extended by WAPDA


on its own and are applicable in HESCO.

5.8 SEPARATION AND TERMINATION

The employees who are found inefficient, involved in


corrupt practices, are un-willing workers or have any other
moral turpitude are dealt with under WAPDA Employees
Efficiency and Disciplinary (E&D) Rules, 1978 and WAPDA
Employees Conduct Rules under these rules an employee
can be imposed penalty of dismissal, removal from service
or compulsory retirement. But for taking such action
comprehensive procedure laid down in the above
mentioned rules are to be followed by the competent
Authority (WAPDA Manual of General Rules -1995).

5.9 EMPLOYEES BENEFITS

Various benefits for serving as well as retiring employees


as intimated during internship are discussed in the
following sections.
21

5.10 PENSION BENEFITS

Under WAPDA employees Pension Rules, 1977 an


employee can be granted retiring pension on following
occasions:
i) He voluntarily opts for retirement on completion of
25 years continuous service.
ii) On attaining the age of Superannuation i.e. 60 years.
iii) He is declared permanently unfit for further service
by medical board.
The pension is calculated on the basis of pay depending
upon length of service rendered by the individual
employee concerned pension table specifying the rates
applicable is available at Exhibit-3.3 An employee can
also exercise option for commutation of his pension under
the rules. It means that he can opt to receive 50% of his
pension in the shape of monthly payments while
remaining 50% can be commuted for the life expectancy
of the employee. In which case he gets payment of
commutation in lump sum. The commutation table given
in WAPDA pension rules which is available at Exhibit – 3.4.

5.11 LIFE INSURANCE


All employees are covered under Group Life Insurance
(GLI) scheme. They pay nominal premium deducted from
their monthly salary in the case of death of an employee
during service his family is paid assured sum according to
his pay by state life of Pakistan. However, the employees
in BPS 1 to 5, who are deployed on hazardous and life
threatening duties are exempted from payment of GLI
premium from there salaries in this case the department is
liable to pay such insurance. In addition family of a
deceased employee who dies while performing his duties
and his death is attributed to his duties is also paid
22

compensation of Rs.1,00,000.00 under the law i.e. work’s


man compensation act.

5.13 TRADE UNION ACTIVITIES


The Union Activities of employees are controlled at Head
office level/Circle & Division Levels. In WAPDA there is a
Director (Labour and Welfare) working under G.M.
Administration who is responsible for looking after affairs
of bargaining agents. There is a Central Labour Union at
Head Office level whereas in HESCO the same union is
working at regional level. The union activities are governed
under Industrial Relations Ordinance (IRO – 1969). The
representation of union also exist at sub-division and
Divisional level.

In HESCO there is a Dy. Director (Labour and Legal)


working under Director HR & Admn. to look after all
matters pertaining to Labour & Management relations, as
well as legal affairs.
23

CHAPTER – 6
RECRUITMENT AND SELECTION PROCESS IN HR
DEPARTMENT
6.1 RECRUITMENT PROCESS

Many authors have defined the terms “Recruitment” in


different ways. Batman has described the term recruitment
as the development of pool applications for a job.
Recruitment may be internal to organization (considering
current employees for promotion and transfers) or
external. Similarly, Richard L Daft has defined recruiting as
“activities or practices that defined the characteristics of
applicants to whom selection procedure are ultimately
applied”. Similarly selection has been defined by the above
author as “the process of determining the skills, abilities
and other attributes a person needs to perform a particular
job”. WAPDA has framed selection and recruitment rules
for each and every category for employees employed by it.
These rules contain these rules are call service rules
contain the criteria required for that particular post
showing the, minimum and maximum age, minimum
education qualification/experience, and composition of
selection board and authority competency to allow to
make appointments etc.

Being a corporatized entity of WAPDA these service Rules


are also being followed by HESCO. All vacancies, other
than those reserved for promotion or recruitment of
employees’ children, are filled in form open market
through advertisement, widely published in leading
national news papers. The candidates are directed through
news papers to apply against the desired posts if they
fulfilling requisite regarding Age &
Qualification/Experience.
24

That all applications submitted by the candidates against


various categories received in the Divisions are forwarded
in the o/o Manager Operations circle of respective areas.
The Manager Operations finally send the applications along
with the list of the candidates of each category.

The applications are then processed for checking the


documents as well as to check the requisite criteria
regarding age & qualification, and list is prepared for
acceptance and rejection of applications.

The candidates who fulfill the criteria regarding


qualification & age are call for written test. The schedule of
conducting examination is published through news papers
or called through call letters.

The initial merit list is prepared for those candidate who


are passed in the written test. The candidates who stood at
the top of the merit list are called for interview on the
basis of formula (i.e. Three candidates are called against
one vacant post).

6.2 SELECTION PROCESS


INTERVIEWS

A selection board is constituted by the competent


authority to conduct the interview of successful candidate
against the posts which are advertised and to filled. The
member of selection board gathered in the office as per
given scheduled of interview.

The panel of interview conduct the interviews and evaluate


the candidate by asking the questions related to the
25

relevant field of the candidate to assessing the ability of


candidate and so on.

The board finally submit the evaluation sheet showing the


detail of marks obtained by the candidates in General
Knowledge, Technical Knowledge and intellectual
knowledge of the candidate.

The recruitment section of the HR department finally


evaluate the candidates against the posts applied by the
candidate and prepared the merit list based on the marks
obtained by the candidates in the written test/interview
and academic weightage.

OFFER LETTER/APPOINTMENT LETTERS

The successful the candidate at the top of the list are


issued offer of appointment letters, in which name of the
post, BPS, the salary and other benefits/facilities are
allowed to the candidate. The merit list is valid for one
year as per rules, and the candidates who are waiting in
the merit are issued offer of appointment letters as and
when the further vacancy exists.
26

CHAPTER – 7
FINANCIAL MANAGEMENT AND ACCOUNT
DEPARTMENT
7.1 INTRODUCTION
Financial Management, as an integral part of the over-all
management, is not a totally independent area. It draws heavily
on related disciplines and filed of study, which inter-alia include
accounting. The relationship between finance and accounting,
conceptually speaking has two dimensions:
a) They are closely related to the extent that accounting
is an important input in financial decision making.
b) There are key differences in view point between
them. These are elaborated as under:
Accounting function is a necessary input into the finance
function. That is, accounting is a sub function of finance. The
accounting generates information / data relating to accounting
is financial statement, such as the balance sheet, the income
statement and cash flow statement. The information contained
in these statements and repots assists the financial managers in
assessing the past performance ad future direction of the firm.
Thus accounting and finance are functionally closely related.
(Khan & Jane – 1994)
In HESCO both the disciplines finance and accounting are
headed by a Finance Director. A brief description of the
organization of Finance Department is given in succeeding
sections.
27

7.2 ORGANIZATION OF FINANCE.


The organization chart of Finance Department is reflected at
Exhibit – 4.1. As per said chart the hierarchy of Finance is as
under:
Finance Director:
Finance Director (F.D) is overall head of Finance and accounts
department. He is responsible for maintaining computerized
accounting and management information system, corporate
planning and budget control as well as funds management. The
finance director has under him managers of corporate planning
and control and corporate accounting.

Manager Corporate Planning and Control (MCPC)


Manager Corporate Planning and Control (MCPC) works under
supervision of F.D. and is the incharge of Finance section. He is
responsible for supervising the corporate planning activities in
HESCO which includes costing / pricing of electricity, budgeting,
financial planning, funds and loan management.

Manager Corporate Accounting (MCA)


Manager Corporate Accounting is the incharge of accounts
section. He is responsible for consolidation and compilation of
accounts received from field accounting units. He performs his
functions through three Dy. Manager Accounts and is
responsible for preparation of financial statements and assets
accounting.

FINANCE DIRECTOR

MANAGER MANAGER
CORPORATE CORPORATE
ACCOUNTING PLANNING
28

Establishme Assets Compilatio Admn. Budget Banking


nt Section Sectio n Section Section Section Section
n

(Source: Brief on HESCO – 2001)


29

7.3 FINANCE SECTION


HESCO is a utility company which provides services of
distribution of electricity to consumers through out the Sindh
province except Karachi. Its source of earning, thus, is collection
of revenue from consumers. HESCO purchases power from
National Transmission and Dispatch company (NTDC), a
subsidiary of WAPDA at a provisionally fixed purchase price of
Rs. 2.50 / Kilo Watt / Hour (1000 Watt = 1 KWH = 1 Unit). The
above price has been fixed by WAPDA for its all eight (8)
distribution companies. The average tariff of electricity for year
1999-2000 remained at Rs. 3.57 per unit.
HESCO has average cash collection of Rs. 800-900 million per
month on account of sale of electricity and Rs. 10-12 million on
account of new connection fees. Finance Director has to
effectively manage these funds. He negotiates with commercial
books and financial institutions for investment of surplus funds
in maximum profit bearing schemes and accounts. (Manager
Corporate Accounting, HESCO – 2001)

Corporate planning is another key functions is financial


management. It includes preparation of Revenue and capital
Budget. In HESCO budgeting is being made on historical basis. It
means that estimation is done by keeping in view the past
trends of expenditure.

Capital budgeting is done on the basis of prospective consumers


and forecasted revenue increase which also is included in the
over all Annual Development Program (ADP of WAPDA)
controlling of budget is also a significant job of finance
department.

7.4 ACCOUNTING SECTION


Accounting functions of HESCO are being looked after by
Manager Corporate Accounting under Finance Director. HESCO
30

field formations are comprised of 56 No. Accounting units. Each


accounting unit is headed by a Drawing and Disbursing /
Controlling Officer who is assisted by an account officer /
Divisional Accountant in discharge of his financial functions. The
status of an accounting unit in HESCO is similar to that of a
branch in commercial organizations each unit keeps
independent record of all funds received by it form finance
department. It is also responsible to keep complete record of
assets held under the jurisdiction the controlling officer. At the
close of each month the controlling officer send trial balance of
all accounting transaction to Manager Corporate Accounting at
head office. On receipt of Trial Balance from all the accounting
units there are consolidated at head office level.

There are various Assistant Managers who performs different


functions as shown in the organization chart of finance
department at Exhibit – 4.1. The financial year begin on 1 st July
and closes on 30th June of calendar year. As per requirement of
companies ordinance 1984, half yearly financial statements are
prepared for the period ended 31st December. Similarly annual
accounts are prepared after close of the year on 30th June. The
financial statements thus prepared are subjected to statutory
audit by professional external auditors appointed by the
members / share holders in the Annual General Meeting (AGM)>
The financial statements are placed before the Board of
Directors who approve the accounts. The accounts are then
presented before share holder in AGM to fulfill the statutory
requirement of companies ordinance 1984.

7.5 FINANCIAL STATEMENTS AD ITS ANALYSIS.


Financial statements are issued by corporate management,
which is responsible for their form and content. It is
management that selects accounting matters, compile
accounting data and prepares the financial statements The
accounting process or financial reporting system, which
31

generates financial information for eternal users, encompasses


four principals financial statements.
• Balance Sheet (Statement of financial position)
• Income Statement (Statement of earnings)
• Statement of Cash flows.
• Statement stock holders equity.

These four financial statements, augmented by foot notes


and supplementary data, are interrelated. Collectively they
are intended to provide relevant reliable and timely
information essential to making investment, credit and
similar decisions, thus meeting the objectives of financial
reporting.
The balance sheet shows assets, liabilities and stock
holders equity, the statement of stock holders equity
reports capital transaction with owners. The income
statement reflects revenue, expenses and gain and losses.
The statement of cash flows includes operating, investing
and financing in flows and out flows, main transactions are
reflected in more than one statement so that the entire set
is required to evaluate the firm. (Khan & Jain – 1994)
AS ALREADY MENTIONED IN CHAPTER -1
UNDER LIMITATIONS THE INTERNEE WAS
NOT ABLE TO INCLUDE FINANCIAL
STATEMENTS OF HESCO, SO FINANCIAL
STATEMENT ANALYSIS HAS NOT BEEN
DONE.
32

CHAPTER – 8
OPERATION AND MAINTENANCE
8.1 CONCEPT OF SERVICE
Kotler has defined service as “any activity or benefit one
party can offer to another that is essentially intangible and
does not result in ownership of any thing”. He further
describes characteristic of service as under:
“Service inseparability, service intangibility and service
perishability. It means that services are produced and
consumed at the same time and can not be separated
from their provider whether providers are people or
machine. Moreover services can not be stored for later sale
or use (Kotler – 1998).
Many business concerns and commercial organizations are
providing different types of services to their customers like
hotels they are providing boarding and lodging services to
their customers Telephone and gas companies who
provide services of telecommunication and energy
respectively. Similarly HESCO is also a utility service
provider department. It supplies electricity to house holds,
shops, industries, education institutions, agricultural tube
well, etc. through a complex network of transmission and
distribution lines. Such service is called Distribution of
Power/Electricity. It is because of distribution that WAPDA
as well as HESCO is in every home.
As per commercial data obtained during internship there
are around 1.103 million electricity consumers of different
categories in HESCO detail of which is available at Exhibit –
5.1

8.2 OPERATION AND MAINTENANCE SYSTEM


For the purpose of distribution of Electricity and
Maintenance of system thereof, the whole province of
33

Sindh except Karachi is divided into five (5) operation


circles and 2 GSO circles.
34

Each circle is further divided into three to five divisions headed


by an Executive Engineer (XEN) and each division is comprised
of four or five sub-divisions with a sub-divisional officer (SDO)
being incharge of operation sub-division and Assistant Engineer
incharge of GSO sub-division. In addition each XEN is supported
by Divisional Accounts Officer and Revenue Officer (RO) /
Customer Service Officer (CSO) see Exhibit 5.2. The public at
large comes into contact with WAPDA through these sub-
divisions. There are 37 divisions and over 100 Nos. sub-divisions
in the territorial jurisdiction of HESCO. The brief description of
job performed by SE, XEN, SDO and RO is given in succeeding
sections concerning operation only being directly related to
public.

8.2.1 FUNCTIONS OF SUB-DIVISION


According to WAPDA policy, a sub-division is created for
every 10,000 Nos. Urban or 6000 Nos. Rural connections. A
sub-division is headed by SDO and has following main
sections under him each headed by supervisor
organization cart of SDO can be seen at Exhibit 5.3.

a) New connection section


The section deals with registration of the consumers
applications, assessing the technical aspects of the
applications, processing the connection documents,
maintaining various record and consumers individual files.
It is through this section a new connection is given to the
consumer and after observing usual formalities a meter is
installed at the consumer’s premises.

b) Disconnection (DCO) & Re-Connection (RCO) Section


The section is responsible for executing disconnection and
reconnection orders received from revenue officer. Case
for non payment by a consumer his meter is disconnected.
35

c) Complaint and Maintenance Sections

These sections are responsible for maintaining meter


reading records and carrying out monthly meter reading
programs, advising the Revenue Officer of the reading on
meter reading forwarding list, examining inquiries
concerned with functioning of meters and inaccuracy of
meter readings. This is the sections against which
consumers have most of the complaints like non recording
of actual reading, sending meter readings without making
physical visits to meters for months and reporting bogus
meter readings etc.
(Manual of Commercial Procedure – 1991)

8.2.2 FUNCTIONS OF REVENUE OFFICER (RO) /


CUSTOMER SERVICE OFFICER (CSO)

According to WAPDA Manual of commercial procedure a


Revenue Officer (RO) also designated as customer services
officer (CSO) reports functionally direct to the Director
Commercial and Finance Director at HESCO head office,
administratively reports to XEN at division. His duties
includes efficient application of billing and collection
procedure. He also acts as an advisor an non technical,
commercial and billing matters arising in the division. He
also keeps liaison with SDOs on meter regarding, new
connection, dis-connections, reconnections and bill
collection matters. Organization setup of Revenue Officer
is at Exhibit – 5.4. A Revenue Officer has following sections
under his control:

This section is headed by a Divisional Accountant who is


responsible for writing up the cash book, reconciliation of weekly
36

bank statements with the cash book, reconciliation of debtors


control accounts. He also acts as a financial advisor to RO in
discharge of his duty.

b) General Section
This section is headed by a commercial superintendent
and is responsible for receiving duplicate copies of
application forms and other specified connection
documents from the SDO, maintaining connection
application register and file for each consumer.

c) Billing Control Section


This Section works under a supervisor and is responsible
for controlling meter reading and advices to computer
centre and ensuring that the billing is correct. Besides, it
also carries out adjustments to incorrect bills, issuing final
demand and disconnection notices, preparing certain
management reports and statistics as well as dispatch of
bills.

8.2.3 FUNCTIONS OF A DIVISION


A Division is headed by an Executive Engineer (XEN) with
four to five sub-division officers under him. XEN is required
to effect speedy connection, assessment, dis-connections,
re-=connections, meter changing and meter readings.
Besides, they are also responsible to look into the technical
aspects of consumers complaint in accordance with
functional responsibilities delegated to them from time to
time under various procedures and manuals. The XEN
works under supervision of SE. He is also required to
maintain and adequate system of communication between
all offices to ensure that RO and SDOs cooperate at a high
level of efficiency. (WAPDA Manual of Commercial
Procedure – 1991)
37

8.2.4 FUNCTIONS OF CIRCLE


An operation circle is headed by a Superintending
Engineer, who is assisted by Dy. Director Technical (DDT)
and a Dy. Commercial Manager (DCM) in looking after the
technical as well as commercial matter with in the
territorial jurisdiction. SE has been vested powers of
sanctioning electricity load from 70 KW to 229 KW. Load
beyond this is approved by the Chief Executive. A circle is
composed of three to five divisions and SE is incharge of
all XENs/ROs/SDO working under him. SE is functionally
under supervision of Technical Director and
Administratively under the Chief Executive at HESCO Head
Office.

INFORMATION REGARDING CONSUMERS


PROFILE AND THEIR CONSUMPTION
PATTERN IS AVAILABLE AT EXHIBIT – 5.5
38

CHAPTER – 9
CONCLUSIONS AND SUGGESTIONS

9.1 CONCLUSION
After completion of research the following conclusions
have been observed.

1. It appears that corporatization has not been fully


implemented in HESCO, WAPDA head office still seems
to be controlling the affairs. Consequently, organization
of HESCO appears to be partly commercial and partly
Government controlled public sector organization.

2. It seems that executives and workers have not been


oriented to work in a commercial environment.

3. Employees were appeared to be dissatisfied with some


of aspects of services being rendered.

4. The company appears to have been running in loss. This


may be due to high cost of electricity which compels
people to steal the electricity. The HESCO employees
seems to be unable to check such tendency due to
several economic, social and political constraints.

5. Dishonest and wrong billing seems to have effect on


revenue. Because consumers, receiving inflated bills
appear to have a tendency to go to litigation instead of
paying the bills, resulting in blockage of revenue.
39

6. It was observed that penalty of late Payment was


imposed upon consumers which is generally due to late
distribution of bills of bill distributors. As such innocent
consumers are penalized for no fault of theirs.

7. It appears that on the recruitment side the candidates


hop much for appointments but on other side the less
No. of post are allowed which resulted the frustration in
the young generation which reflect disappointed
amongst competent candidates

9.2 SUGGESTIONS
After careful study of in the HR Department, the following
suggestions are given for batter improvement as under:

1. HESCO may be allowed to assume full autonomous role


so as to run its affairs on commercial basis instead of
being controlled by WAPDA.
2. All employees and executives may be trained and
oriented in modern management techniques including
finance and organizational behavior.
3. Instead of Government basic pay scales the employees
may be allowed salaries comparable with other privet
organization. The salary of the employees may be
enhanced on individual performance basis. Similarly
good and hard working employees should be rewarded
and unwilling should be punished.
4. The rate of electricity may be rationalized so that a
common man can easily manage to pay the bill within
his financial resources.
5. Honest and correct billing may be ensured so as to
restore the confidence of public and to avoid blockage
of revenue.
40

6. The process recruitment should be fair and transparent


the entire process for recruitment shall be completed
with the period of three months. The merit of candidate
shall be displayed on the notice board, the posts vacant
lying in the department since years may be filled,
yearly/six monthly so that the new blood may not be
disappointed.

The officials/staff entrusted to work of internal audit shall


also be trained and oriented with modern techniques, rules
and regulations applicable in corporations.
9.3 References
1. WAPDA MANUAL BOOK

2. WAPDA ANNUAL BOOK

3. WAPDA RULES AND REGULATIONS

4. WEB SITE WWW.PAKWAPDA.GOV.PK

5. HESCO OFFICERS /OFFICIALS DATA

6. GARY DESSLER (HUMAN RESOURCES MANAGEMENT).