Summary

Parco is the biggest oil refinery in Asia. Parco stands for Pakarab
Refinery Limited. Parco is incorporated in MAY 1974 as a public
limited company. Pakarab refinery limited (Parco) is a joint venture of
Government of Pakistan (GOP) & Abu Dhabi.



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PARCO
Introduction:
PARCO means energy. PARCO is a fully integrated energy company and
considered to be the leading player in the industry. It is one of the largest companies of
the Pakistani corporate sector with an asset base approaching Rs. 100 billion. As a
joint venture between the Governments of Pakistan and Abu Dhabi, it is seen as a role
model of Pak-Arab business co-operation and an 'enlightened investment decision'.
PARCO is poised to further consolidate its growth and strategic supplier role for the
country. That's why PARCO MEANS corporate ENERGY.
Vision Statement
For PARCO to remain among tomorrow's corporate winners.
They explain their vision statement in following way: it may not only need
to have a clear vision but also a passion for translating that vision into reality. The big
challenge is therefore, not only trying to figure out what future will be the right one, but
to choose a future that will give definite competitive advantage to the Company over the
long-term. Therefore, creating a cause for action besides charting a course on how to
get there.
Mission Statement
To enhance and establish a professionally sound corporate identity.
To operate the existing Pipeline System, Mid Country Refinery and marketing
initiatives in a manner that establishes it as a centre of excellence in Pipeline,
Refining & Marketing Activities in the Country.
To embark upon Integrated Investment Program which takes
cognizance of the existing bottlenecks and long-term petroleum needs of the
Country.

To provide a lead to the indigenous Petroleum Industry in finding of solutions to Technical
and Managerial problems.
To develop appropriate Human Resources for undertaking of large Energy Projects in the
Country.
History:
For many years after the completion of the pipeline, the dream was to
actualize the planning for a Mid-Country Refinery at Mahmood Kot, near Multan. In
September 2000, the dream became reality with the start-up of the country's largest
capacity refinery of 100,000 barrels per day, costing US$ 886 million - commissioned
well within budget and a month ahead of schedule. The state-of-the-art refinery is
based on the latest equipment and process technology and also serves as a training
resource for technologists from the region. To us, PARCO MEANS modern and
efficient ENERGY.
Corporate Profile:
PARCO has now been in existence for more than 30 years. Its corporate
voyage through these years has been full of important milestones. In the past 17 years
PARCO has grown in size and strength and can look with confidence to a much brighter
future. Incorporated as a public limited company in 1974, PAK ARAB REFINERY LTD is
a Joint Venture between the countries of Pakistan and Abu Dhabi. The share holding in
the Company is in the proportion of Government of Pakistan (60%) and ABU DHABI
Petroleum Investment (ADPI). 40% in which 7% shares are of Govt. of Austria.
PARCO's major activities are:
Oil Refining and allied facilities
Oil Pipeline systems, storage and allied facilities
Marketing


International Partnerships
As a model joint venture, PARCO is a firm believer in partnerships.
TOTAL headquartered in France, SHV Energy of Holland and OMV of Austria
represents some of the key strategic alliances that allow co-marketing of fuel like motor
gasoline, diesel, LPG and lubricants. On the ground a network of nearly 100 gasoline
stations under the marquee of TOTAL PARCO will be in operation by the end of 2004.
25% of PARCO's LPG production is marketed as PEARL Gas by SHV, while PARCO is
marketing PEARL Lubes made by OMV Austria along with locally blended Lubricants as
well. PARCO can truly be considered as a national asset with an international image.
Administration:
PARCO pumping stations exist in many areas such as Karachi, Keamari,
Korangi, Bubak, Shikarpur, Faisalabad, Fazilpur and Mahmood kot. These plants are
controlled by administration of head office at Karachi. The issues relate to their technical
work, operations at Karachi and mid country refinery are controlled and demonstrated
by their own administrations.
Internal Culture of PARCO:
The 1,600 employees operate the Mid-Country Refinery round the clock but environment
at PARCO is just like a family. There is strong coordination and social bonding among
different levels of employees. A low level worker can access the high level manager
without any hindrance. It is fully employee-oriented firm in which employees are the
most important asset for the company. When the Government went for downsizing,
PARCO contacted to the Ministry of petroleum and requested in the favor of their
employees. It has decentralized structure and team based environment. Employees
work in teams so that they may able to work together more efficiently. No unionization is
there. To avoid such problems all low level workers are hired at contractual basis and
other management workers are on permanent jobs. PARCO is very much conscious

about the education of employees. It hires highly qualified and competent persons. They
say
We believe on giving the designation to employees according to their
qualification. There is restriction that the applicant will be eligible to apply for a job if he
has at least A grade throughout his education.
Facilities for the Employees:
PARCO provides different facilities to its employees according to their
designations. It tries to satisfy their employees by giving them different facilities such as:
1. Housing Complex:
Different residential apartments are given to the workers. There are
different categories of houses. For bachelor employees there are Bachelors Hostels in
which, there are two categories one is for administrated staff and other for technical
workers. Employees are provided with apartment, houses, and bungalows as the got
promotions.
2. Bloomfield Hall School:
A school is established with the coordination of Bloomfield Hall School
system for employees children. Building is provided by PARCO and the mutual
management i.e. of is here to manage the school. Staff is hired with the coordination of
PARCO and Bloomfield Hall administration. Vice Principal Mrs. Shaista Qureshi handle
all the operations related to this branch.
3. Officers Club:
For recreation of employees officer club is established. Employees get the
memberships of this club and renew it annually. Different sort of activities are done by

this club. Melodious Geet & Ghazal Evenings and Sports Mania are some of the
activities that are held by officers club.

4. Hajj policy:
PARCO provides the opportunity of offering Hajj to their employees on its
behalf. For this purpose, every year some employees are selected from different
department by lucky draw.
5. Ibn-e-Sina Hospital
PARCO is more conscious about there employees health. For this
purpose certain hospitals in which Ibn-e-Sina is one of them. There are separate
hospitals for technical and administration staff. All the facilities are available in these
hospitals.



























sUMMARY
PARCO is an employee oriented firm, focuses more on its employees careers,
safety, health, etc. The human resource policies of PARCO are its own and the
influence of the government is not much. For example, the promotion and reward
policy of PARCO is performance based which is contrary to the seniority base in
other government organizations. The PARCO is implementing the career
development mainly by the job rotation and training the employees about the
skills which are necessary for the performance of the job.


















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Managing Director
General Manager corporate
affairs
Chief Executive HR &
Administration
HR Manager Mahmood Kot
Chief Executive HR &
Administration
Senior Manager executive
Training&Development
Senior Manager executive
Employment
Senior Manager executive
Selection
&Benefits
Senior Manager executive
Compensation &Benefits
Manager 1
Senior Manager executive
Employment
Senior Manager executive
Employment
lopment
Manager 1
Manager 2
Manager 3
Manager 3
Manager 4
Manager 4
General Assistant
General Assistant
General Assistant 2
Training Manager executive
Training Manager executive
HR Manager Karachi



HRD at Mid country Refinery:
All the issues and operation related to the personnel at mid country
refinery are controlled by its HR manager Mr. Mansoor Bin Kafeel. The hiring decision
related to very low level worker are taken by him. But the major operations are
performed after the approval of GM Corporate Affairs at head office Karachi.
HRD at Karachi:
Personnel related problems and decisions of all pumping stations staff are
handled by HR manager of Karachi. However some times many matters are handled
with the mutual consideration of both the HR managers. All the major hiring decisions of
pumping stations and refinery plants are made in Karachi head office.

Different Issues Related With HR Department
Motivation of Employees:
There are two main targets of its Human Resource Department
Retaining the employees
High motivation
For this purpose they provide different facilities for comforts and luxuries.
They provide residential apartments, officers clubs facilities, health facilities etc. There
is great demand of their employees in other countries especially in Middle East. So to
retain them in Pakistan they offer high salary package, bonus and facilities. As trainees

they are paid with more than 10,000 salary and housing facilities are also provided to
them.
It also provides different allowances in spite of their basic pay.150 liters
petrol per month is given to lower level employees for their personal car consumption.
This quantity varies according to the scale. Suzuki cultus is given to group head, Honda
to the Managers and 2D to the General Manager.
To prevent the employees from de motivation each workers salary slip is
kept confidential. If any increment is given to one of employee then others are remained
unaware about it.
Each year Performance Award Ceremony is held in which the employees
who have performed very well during this period are awarded by different gifts, shields,
bonus cheques and increment in salary. Recently Performance Award Ceremony 2006
is done on November 18, 2006.
Social Responsibilities:
PARCO is very much concerned about social responsibilities. it performs
many activities which gives proof about it. Some of these are following:
Safety Programs:
PARCO give more importance to the safety of employees. Different
sessions and trainings are conducted to give the awareness to the employees about
their safety. Safety Walks are also conducted annually before the Performance Award
Ceremony. Safety Walk 2006 was conducted November 16 2006.
Clean Environment:
There is great stress on the clean environment. Different precautions are
adopted in this concern. To appreciate PARCOs efforts in this regards, soon after

securing trip quality certification for its Mid-Country refinery, PARCO notched another
quality achievement in the form of Environment Excellent Award, 2006. The award is in
appreciation of PARCOs concern for environment, its environment-friendly policies as
well as investments in this regards.
Awareness about Cancer:
With the coordination of Shaukat Khanum Cancer hospital, they try to
create awareness in the society about cancer. They sponsor many walks, seminars and
meetings in this regards.

















Summary
The primary responsibility of PARCO is to develop and
communicate career options within the organization to the
technical as well as administrative employees. PARCO has
created an open & cooperative environment that facilitates
the development of individual career plans. In PARCO, the
career options & career paths are mentioned in the policies
of HRD established by the GM Corporate Affairs. These
career paths are then communicated to the Manager HR
working at Mahmood kot.















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Career Development in PARCO
The target of career development is that Individual thinks about himself,
his family, his religious obligations and his community welfare.
Who Is Responsible For Career Development in Parco
Successful career development requires action from three sources:
Organizations Responsibilities
PARCO is purely an Employee oriented organization. The primary
responsibility of PARCO is to develop and communicate career options within the
organization to the technical as well as administrative employees. PARCO has created
an open & cooperative environment that facilitates the development of individual career
plans. In PARCO, the career options & career paths are mentioned in the policies of
HRD established by the GM Corporate Affairs. These career paths are then
communicated to the Manager HR working at Mahmood kot.
Employees Responsibilities
PARCO provides a general framework for developing and communicating
career plans but the major responsibility lies with the individual how he grasps the
available opportunity available in the environment in an effective manner. For example,
in PARCO, if an employee thinks that a particular degree will help him to enhance his
existing skills and will facilitate his career path, and then individual will put up application
with Manager HR. PARCO will allow that employee to go for leave without pay in order
to acquire that degree. If an employee completes his degree with some distinction, then
that individual will be given the pay of the whole duration of degree and will get 100%
fee concession. In this way, the employee is having full support from PARCO. When
Annual report is prepared, then it is mentioned that this employee has completed this
degree with distinction and he will be considered as an alternative for another position.


Managers Responsibilities
The critical battleground in career development is inside the mind of the
person charged with supervisory responsibility. So in PARCO, Senior Management
executive is responsible for communicating career options to the technical and
administrative staff. PARCO believes in that The weakness of employee is the
weakness of manager and the strength of employee is the strength of manager.
It is the responsibility of manager to develop his team, identify the weak areas of every
individual and then offer training in that areas where the training is needed.















Summary
Sources of Career Development in PARCO are
Education,Training,Job Experiences.Their management
trainee usually holds the same designation for more than two
years.And their orientation programs involves
comprehensive introduction of their vast organization.





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Sources of Career Development in PARCO
Career development takes place in PARCO by the use of three sources:

Education.
Training.
Job Experiences.
Education
PARCO believes that education plays a vital role in career development of
an employee. If an employee is diploma holder, then it is mentioned with his
designation. If an employee is B Tech Engineer, then engineer is mentioned with his
designation. PARCO also facilitates his employees to get professional degrees like MS
etc. during their jobs in order to fully equip their employees with the dynamic changes
occurring in the environment as well as to enhance their skills & abilities.
Training
The objective of training in PARCO is to Identify weak area of employee
and convert that weakness into strength. The weakest person is highly focused.
Initial Training
PARCO offers Initial Training to the new employees starting their careers.
This training consists of 2 years time period and consists of the following:
Class-room training (9 months).
On the job training (15 months).
In class room training, the employee is given knowledge about general
subjects like chemical, electrical, instrument handling etc. In this session, the employee
learns about several things like Nature of job, communication skills, presentation skills,

motivation & dedication, importance of teamwork in the competitive & dynamic
environment of PARCO and social responsibilities. During classroom training, monthly
tests are conducted to evaluate the performance of employees.
During on-the-job raining, the employee is given training particular to his
area of job. The employee is going to work with skilled persons of that very department.
For example, if an employee is appointed in Operations department, then he will get
training related with Instrument handling and other technical issues essential for safe,
efficient & effective operations of the oil refinery. During this 2 years training program,
the trainees are also given salaries and housing facilities both for bachelors and
families. The initial training is offered in Karachi Head office and also at Mehmoodkot oil
refinery.


















Summary
PARCO is very much conscious about Safety & Environment so regular
training sessions are conducted.Training on emerging managerial issues
reputed by institutions like LUMS is conducted. Emplyees are sent abroad
as well .Further, Employees gain experiences of different jobs in PARCO
by the technique of MULTICRAFTING which is the term used for job
rotation in PARCO







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Training during Job
PARCO is very much conscious about Safety & Environment. So regular
training sessions are conducted from time to time in order to ensure safe operations in
the oil refinery. It is compulsory for employees of all levels to attend these training
sessions. Every employee gets his schedule of attending training session from his
group head. In these sessions, the skilled and experienced employees of departments
are asked to conduct training. Foreign consultants are also invited to give training
regarding operations of machine especially if it is bought internationally..
In 2009 and 2010 : training courses on : firefighting system , protective
equipment , SAP, module introduction , are the few names of the many courses
conducted.
PARCO also conducts training on emerging managerial issues for their
managerial employees. For this purpose, experts from reputed institutions are invited
like LUMS. Employees are also sent to Japan, Dubai, UK and other countries for
technical training individually and in groups as well. For example, recently four
employees are sent for 15 days training to UK regarding Techniques to Reduce
Material Ceiling.

Job Rotation
Employees gain experiences of different jobs in PARCO by the technique
of MULTICRAFTING which is the term used for job rotation in PARCO. The
objective of multicrafting is to produce potential successor of every job in PARCO.
Company has backup of employees all the time. Capabilities & skills of employees are
enhanced and they get exposure to almost all the working aspects of PARCO.
Multicrafting is used to avoid the situation in which an employee can blackmail the
organization. It starts from Senior Management Executive and ensures manageability of
things. For example, GM Finance will become Gm Operations. There is no rise in pay

because designation remains the same. All such decisions are taken by GM Corporate
Affairs at the head office Karachi.
An example of human resource manager training program
attended by PARCO. Below is the application form :







Summary.
An integerated system of individual
assessment,organizational assessment and discussion of
career paths. PARCO goes for continuous evaluation during
initial training program. At the end of each month, tests are
conducted to assess & evaluate the performance of trainee










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Implementation of Career Development in Parco
Successful implementation of career development involves the following
steps:
Individual Assessment
Parco provides a flourishing environment to its employees in which its
employees develop themselves and believes on mental growth and broadness.
Employee continuously go for his internal analysis (Strengths & Weakness) and then
determine for himself the following things:
What are my weaknesses?
How can I convert my weaknesses into strengths?
What career options should be adopted to achieve already specified career
goals?
When a career option is chosen by employee, then this is communicated
to GM Corporate affairs. If GM approves it, then it is communicated to Mgr HR and
finally to Sr. Management Executive who finally coordinates it with the employee.
Organizational Assessment
PARCO goes for continuous evaluation during initial training program. At
the end of each month, tests are conducted to assess & evaluate the performance of
trainee. It is compulsory for every employee to secure at least 70% marks in the test in
order to proceed further. If a trainee secures less than 70% marks in two consecutive
test, then report will be send to head office and action will be taken. In order to assess
the overall performance of employees, Annual Performance review is conducted at the
end of each year. These forms are based on average performance of employees
through the whole year and do not judge the current performance. These forms are
provided to Group Head and are received by group head from the employees after
completion. Performance grades are allocated to employees on the basis of their

performance. Then counseling sessions are conducted with every individual in isolation
after the forms are submitted to Manager HR. Group head discuss with every individual
about his assessment and specify weak areas of that very employee. If the need exists,
the counseling sessions should be conducted once in a month.
Communicating Career Options
PARCO most of the time goes for internal hiring through the technique of
multicrafting. For internal hiring, information & opportunities are communicated to
employees in a formal session by the group head. If there is need for external hiring,
then career options are communicated through newspaper advertisements.


Career Pathing
Career paths are defined in HR policies established by GM Corporate
Affairs at the head office Karachi. Then these are communicated to HR Mgr at
Mehmoodkot and finally communicated to employees by HR Mgr.
Career Self Management
Employees of PARCO are very conscious about keeping themselves at
pace with the changes occurring in organization & industry by utilizing career options by
themselves and by availing opportunities provided by PARCO like Diversified Training
Programs. In this way, the employees enhance their skills and feel a sense of
Motivation, Loyalty & Commitment.






Type of organization

Manufacturing
employees executive , line managers, mangers, Engineer and
technical staff, operating staff, Sales force

Existence of Hr department
yes

Purpose of performance appraisal
guide to job changes, salary decision, employee
development, supervisory understanding
Performance appraisal approach comparison against standards, direct performance
measure
Who does performance appraisal immediate supervisor
Feedback to employee about
results
upto some extent
Methods of appraisal rating scale(personal trait and behavior scale, job
dimension rating scale

Problems organizational influence, personal biasness, difficult
to set qualitative standard
accuracy up to some extent
Reason for inaccurate evaluation subjective standard, rate error, negative
communication


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Description of Performance Apparisal System I

As the manufacturing organization, PARCO has various categories of
employees including senior executives, line managers, managers, engineer
and technical staff, operating staff and sales force, so it is comprised of
various nature of jobs, making it complex to conduct a smooth performance
appraisal system.
To deal with human resource of the organization, the main HR department
is located in Karachi but its personnel department is working at the site
located in Qasba Gujrat, Mahmood kot, Distt. Muzaffargarh
The main HR Department in Karachi formulates the actual appraisal policy
and communicate to the personnel department at the site, then personnel
department conducts performance appraisal of employees accordingly.
For employees on probation , their performance report is done after six
months. For permanent employees, their appraisal is conducted after every
one year. The organization financial year is July to June.
The personnel department conducts the performance appraisal of
employees for their Promotion, their Job Changes, Development, and
Salary Decisions. Personnel department normally uses different types of
approaches for different types of employees depending upon their job
nature. Mostly, they use Comparison Against Standards or Direct
Performance Measurement approach. In this organization, both formal and
informal systems are comprised for performance evaluation which are
usually handled by immediate supervisor.

The formal systems procedure is described below, while the informal
system includes the activities like Club Sitting, Parties, Attitude during
informal activities, Seminars, Games etc.
The appraisal method, used by the personnel department, is Rating Scale,
in which they use Job Dimension Rating Scale and Personal Traits &
Behavior Rating Scale. The reason for using these methods is that it covers
the job activities to be done as well as the attitude & behavior required by
that job. Five degrees of scale are used such as Very Good, Good, Fair,
Satisfactory, Poor.
Parco has job security to its employees. Company also checks the
references of the employees from their previous jobs. Promotion is given
on experience and good work. In performance appraisal, the following
characteristics are measured:
1.Employee Dependency
2.Delegation Of Authority
3.Behavior With Juniors
4.Communication Skills
5.Job Performance
6.Behavior With Supervisors

Procedure
Personnel department sends the appraisal form to immediate supervisors.
Supervisors fill the forms and send back to the Personnel Department. On
the basis of supervisors evaluation, the instructions from the personnel
departments are communicated to supervisors to deal with the particular
employees. But the employees appraisal results are not communicated to
the employees formally but with the passage of time ,as needed, they are
informally communicated by immediate supervisors.
After conducting appraisal, the personnel department communicates
its evaluation with recommendations regarding appraisal policy. Then HR
department makes decisions on the basis of Personnel departments
evaluation.

Problems In Performance Measurement & Evaluations:
Although Personnel Department tries to communicate a fair and smooth
appraisal system but due to some reasons, the inaccuracy in performance
measurement occurs. The reasons for this include:

1.Organizational Influences.
2.Personal Biasness.
3.Difficult To Set Qualitative Standards.

There are also some problems, which the personnel department has to
face in the accurate evaluation of the measured performance. The
problems include:
1.Subjective Standards.

2.Rating errors.
3.Negative Communication.

But the personnel department believes that its performance appraisal
system is still working fine.


































COMPENSATION PLANS


COMPENSATION ASPECTS
Department
y The organization has eight departments.
y The organization has formal HR department.
No. of employees
y A total of eight hundred employees are working in The organization.
Survey for pay rates
y The organization does conduct informal survey for establishing the pay
rates of various grades.
Basis for pay structure
y The organization set the pay structure for various appointments on the
basis of :
1. Qualification
2. Experience
3. Technical skill
Job evaluation concept
y No job evaluation concept is being followed by the organization.
Basic salaries
y Basic salaries are set according to qualification, experience, and technical
skills.
Union
y A formal labor union (C.B.A.) exists in the organization.

y The union discuss the issues like:
1. Wages rates
2. Income security
3. Time of with pay
4. Cost of living adjustment
5. Health care
Payment policy
y No response is given by the organization.
y Regular salaries are paid to the employees during probationary period.
Increments
y The employees are awarded annual increments.
Allowances policy
y Allowances are paid grade wise.
Compensation to the trainees
y Compensation to the trainee employees is paid according to the grades.
Accident compensation
y Compensation is paid through in vogue group insurance policy as per
government regulations.
Medical treatment
y Free medical treatment is entitled to the employees, their parents and their
families through various hospitals on the pool of the organizations.
Payments during leaves
y Employees are paid during leave periods.
TA/DAs policy

y TA/DAs are paid to the employees at different categories according to
their grades and entitlement.

Overtime premium
y The organization pays the overtime premium to the employees.
Compensation for foreign qualified
y No such compensation is paid in case of foreign qualified individuals
Additional technical qualification salary
y Yes, additional benefits paid to technically high qualified personnel.
Pension policy
y Yes, the organization has pension policy for their employees.
Post retirement benefit
y Free medical treatments to self, spouse and dependent children.
Basis for pays
y The organization follows both job base pay and skill base pay policies.
y The organization has the centralized process for pays / wages
establishment.
Chief executive compensation
y The compensation for chief executive is based on:
1. Qualification
2. Experience
3. Performance
4. Service length
Managers compensation

y The managers are offered compensation in term of salary, benefits, short
term incentive and long term incentives
Professional compensation
y No response is given by the organization.
Female workers
y The organization has female workers.
y The females are being paid more as compare to male workers.
Pay policy
y The organization has secret pay policy.
y The pays are revised after every two years.
y In case of inflation, for the retire personnel there is no change in pension
policy.
Relationship between productivity and salaries
y The organization believes in the relation between productivity and pays /
salaries / wages.
y They have strong intensity of the relationship in the organization.











y EMPLYEE FORM
y ADDRESSES OF OFFICES




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Corporate Office
Corporate Headquarters,
Korangi Creek Road,
Karachi- 75190,
Pakistan.
Registered Office
Avari Plaza,
Adjacent to Hilton Hotel,
87,Shahrah-e-Quaid-e-Azam,
Lahore. Pakistan.
Refinery Office
Qasba Gujrat, Mahmood Kot,
Distt. Muzaffargarh,
Pakistan.