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Student ID Number: 35823

Title of Dissertation: What is the role of HRM and some of HRM procedures used
in Engineering and Humanitarian Organizations.
Name of Supervisor: Dr. Khaled Abdulla
(Dissertation Supervisor)

Date:

March 23, 2009

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that it is a breach of BITE and Coventry University regulations to copy the work of another without clear
acknowledgement and that attempting to do so render me liable to disciplinary proceeding.

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FINAL DISSERTATION
Topic / Research Question
What is the role of HRM and some of HRM procedures used
in Engineering and Humanitarian Organizations.

SUBMITTED BY
Abdul Basit Alvi
BITE ID: 35823
Submitted in partial fulfillment of the requirement for the
MBA Innovative Management
in collaboration with Coventry University
and British Institute of Technology & E-commerce

MARCH 2009

Certification

I hereby recommend that the dissertation was prepared under my supervision by Abdul
Basit Alvi (Student ID: 35823) What is the role of HRM and some of HRM
procedures used in Engineering and Humanitarian Organizations?

........................................
(Dr. Khaled Abdulla)
Dissertation Supervisor

Abstract
HRM plays an important role in all organizations. It deals with the people which
are thought to be the main assets of the organization. HRM procedures need to
be addressed carefully for the progress and further growth of the businesses.
Role of HRM and its procedures are equally important when we are discussing
about;
What is the role HRM and some of the procedures used in engineering and
humanitarian organizations?

Acknowledgement;
By the name Almighty Allah who is the most merciful, most beneficial and all
praise is due to Almighty Allah.
First of all, I am really thankful to Almighty Allah who gave me such wisdom
command, power and ability without which I would not be able to complete my
task.
I am thankful to my parents, my wife and beloved daughter who remembered me
in their prayers and encouraged me to continue my studies with full passion.
I am also thankful with the the depth of my heart to my supervisor for providing
me guidance, countless assistance and advices from beginning to the end of my
dissertation.
I also thank to my colleagues, Mr. Fakhar Alam, Mr. Khursheed Ahmed and Asif
Khan for their support and help during my research. Many many thanks to my
uncle Major Rohail Qureshi for providing me his overall knowledge about the
subject.
I am also thankful to HRM teams of Attock Oil refinery,Pakistan and Merlin UK for
providing me the required data and information.

Table of Contents;
1. Abstract
2. Acknowledgements
3. Table Of Contents
1. CHAPTER I - Introduction
1.1 Introduction
1.2 Research aim and Objectives
2. CHAPTER II Literature Review
2.1 HRM Models
2.2 Functions
2.2.1 Management Essential Functions
2.2.2 HRM Functions/Activities
2.2.3 Staffing(GET)
2.2.5 Motivation(Stimulate)
2.2.6 Maintenance(Keep)
2.3 Staffing Activities
2.4 Training and Development Goals
2.5 HR Functions
2.6 Employment Planning
2.7 Organizational Framework
2.8 Assessing Current HR Requirements
2.8.1 Labor Demand
2.9 Better Solutions for HRM
2.10 Job Analysis
2.10.1 Job Analysis Outcomes
2.11 Sources of Recruitment
2.11.1 Internal Search
2.11.2 Employee Referrals
2.11.3 External Recruiting Sources
2.12 HRM Functions and role in Engineering and Humanitarian organizations
3. CHAPTER III - Methodology
3.1 Introduction
3.2 Research Design and Strategy
3.3 Data Collection and Analysis
3.4 Grounded Theory in Research
3.5 Limitations
4. CHAPTER IV Case Study; Attock Refinery Limited(ARL),Pakistan
4.1 Industry Background
4.2 History
4.3 Pakistan Oil Refinery Industry
4.4 Introduction of Attock Refinery Limited
4.5 History Of ARL
4.6 Present Situation
4.7 Vision,Mission and Core Values
4.8 Products Of ARL
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4.9 Department Information

4.10 Organizational Structure
4.11 HR Department of ARL
4.11.1
Introduction to Human Resource
4.11.2
Defining HRM
4.11.3
Human Resource Department
4.11.4
HR Policies of ARL
4.11.5
Structure of HR Department of ARL
4.11.6
Sections of HR in ARL
4.12 Recruitment and Selection
4.12.1
Introduction
4.12.2
HR Planning in ARL
4.12.3
Job Description/Recruitment Criteria
4.13 Recruitment and Selection in ARL
4.13.1
Recruitment and Selection Policy in ARL
4.13.2
Objective of Policy
4.14 Procedures related to HR policy
4.15 Training and Development
4.15.1
Introduction
4.15.2
Training and Assessment
4.15.3
Definition
4.15.4
In house Courses
4.15.5
In Country Courses
4.15.6
Overseas Courses
4.15.7
Training Evaluation
4.15.8
Management Record Of Courses
4.15.9
Training Conducted by ARL
4.16 Staff Affairs
4.16.1
Staff Affairs
4.16.2
Performance Appraisals
4.16.3
Reward Management
4.17 ERP and Administration
4.17.1
ERP; Enterprise Resource Planning
4.17.2
Introduction
4.17.3
Sections of Administration
4.18 SWOT Analysis
5. CHAPTER V - Conclusions
5.1 Conclusion of the study
6. Chapter VI Bibliography
6.1 Books
6.2 Websites
6.3 References
6.4 Personal Contacts

Chapter 1: Introduction
1.1:Introduction;
HRM plays a vital role in every organization and is a key department for the
progress and growth of any organization.
HRM procedures shows the commitment of HRM department with the objectives
of the organization and the success or failure of any organization equally
depends on the standards of employees.
Competent,skilled and motivated staff can take the organization towards top
position while lack in such characteristics of the employees can cause the failure.
HRM procedure need to be well organized and transparent giving chances to
skilled,dedicated,motivated and competent people to come forward and play their
role in the progress and growth of the organization.

1.2:Research Aims and Objective;

The purpose of my research is to find out that; what is the role of HRM and some
of the HRM procedures used in Engineering and humanitarian organizations.
The research is focused on the role of HRM in any organization and different
HRM procedures of recruitment,training and development etc used in the
organizations.
A case study of Attock Oil Refinery is also a part of this research and the data
and information collected will be use to prove the aims and objectives of my
research.
This research has several objectives which are as follows.
1. To enhance the companys ability to adopt and use the best HRM procedures
for recruitment,training and development.
2. Building a more efficient, effective and highly motivated team.
3. Increased productivity and reduce employee turnover.
The research question of this dissertation is as follows;
What is the role of HRM and some of the HRM procedures used in Engineering
and humanitarian organizations.

CHAPTER 2: Literature Review

Human Resource Management is the process of acquiring, training,
appraising, and compensating employees and attending to their labor relations,
health and safety, and fairness concerns.
(Dessler et al)

2.1:HRM Models;
SOFT MODEL
This modal focus on the commitment that is produced if th employees are given
trust,proper training and development opportunities and if the employees are
permitted to accomplish their work autonomously and they have grip on their

work ( Guest 1987; Hendry and Pettigrew 1990; Kamoche 1994; Mahoney and
Deckop 1986; Purcell 1993; Purcell and Ahlstrand 1994; Tyson 1995 a ).
Soft HRM is associated with the human relations movement, the utilization of
individual talents, and McGregor's ( 1960) Theory Y perspective on individuals
(developmental humanism).
Soft HRM is also associated with the goals of flexibility and adaptability and
implies that communication plays a central role in management
( Storey and Sisson 1993).
Hard HRM Model
According to this model there is relatively a more control on the employees
based on their performances and the objective of this control is to prevent and
strengthen the competitive advantage of the organization( Guest 1995).In this
model the employees are managed in a more organized and systematic pattern
than that of soft model.
This model focus on the need and requirement of strategic fit in which the
policies of human resources are closely interrelated with the strategic objectives
of the organizations(external fit) and are related with each other(internal fit)
( Baird and Meshoulam 1988; Hendry and Pettigrew 1986), giving an overall
benefit of increasing the competitive advantage of the organization ( Alpander
and Botter 1981; Devanna et al. 1984; Lengnick-Hall and Lengnick-Hall 1990;
Miles and Snow 1984; Storey and Sisson 1993; Tichy et al. 1982; Tyson and Fell
1986).
According to Legge (1995) :
In the literature, four HRM models has been originally identified by
Legge (1995) which are:
Normative
Descriptive-functional
Descriptive-behavioral
Critical evaluative
Normative;
In this model the executives and managers deal with their employees as
the members of a team,focus on quality,creativity and empower the decisions
and regulations in a normative way.
McGregor's Theory Y and Theory X gives the essential and key
norms,regulations,values and the ideas of the managers about their subordinate
employees.
Descriptive-Functional;
(the approach referred as"the approach of a professionally system oriented
boss or manager)

It focuses on the regulations of the employment under the internal labor market
of the organization. It emphasizes on the theory that all functions to be done
within pluralistic or unitary set up.
This model focus on the processes,roles,polices and frameworks which is
necessary for managing the people in an organization. Top management is
responsible for the
recruitment,appraisal,rewards,training&development,discipline,job definitions and
completions and all such issues and within the organization. In fact the
managers should consider the importance of external regulations (the laws, the
factors of institutions of employment for example that imposed by the trade
unions).
Critical-Evaluative
Watson (1986) focused on further critical study about the personnel
management and its function in an organization. He addressed the question of
the "mystifications and justificatory overtones" of (generally neo-human
relations) the perspective of normative.
The employee and employees interactions is not taken as an interaction
between two equal parties. Law is to be considered in addressing such issues
But mostly employers don't like to interact more with their employees and
employees have to loose their jobs and benefits before the time at which they
can claim it legally.
Descriptive-Behavioral;
This is the approach which focus on the real behaviors and experiences of the
management and also focus on the understanding of others on such behaviors
and experiences.
It also focus on the question about management that how they act and perform
in the real world and how it can be compared with that of normative.

2.2:FUNCTIONS
2.2.1: MANAGEMENT ESSENTIAL FUNCTIONS
The basic functions of the management can be summarized as to;
Plan; The management is responsible for planning all the activities and
resources within the organization. To plan about all issues and objectives.
Organize; The management is also responsible for organizing the plans and
strategies in a systematic way.
Lead; After a proper planning and organizing the management has to lead for
the successful completions and achievements of the goals and objectives.
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Control; Management need to focus on controlling the whole the process.

2.2.2: HRM Functions / Activities

The functions and activities of the Human Resource Management in an
organization can be summarized as;
GETTING PEOPLE; The main role of HRM in an organization is to recruit the
right people for right job.
PREPARING PEOPLE; After the successful selection and recruitment HRM is
responsible for preparing the new staff and existing staff for doing their work.
They have to arrange and provide them proper guidance,feedback and training
&development facilitates.
STIMULATING PEOPLE; HRM needs to stimulate the people for further
improvement in their skills and abilities.
KEEPING PEOPLE; HRM should focus on keeping the staff and making them
more professional and skilled by continuous guidance and trainings

2.2.3: STAFFING (GET)

Staffing and recruiting the staff is an important issue for any organization and
HRM has to prove themselves by recruiting the required staff at the right
time,within specified budget and enough skill according to the nature of the job.
Staffing can be further divided in following steps;
Strategic human resource planning; HRM makes plans for resourcing and
recruiting the manpower accordingly.
Recruiting; HRM initiates the recruiting process and collects the details of the
candidates.
Selection; After getting the details and all necessary documents,interviews are
conducted. Based on the education,experiences and interviews HRM select the
right people for right job.

2.2.4: TRAINING AND DEVELOPMENT (PREPARE)

HRM needs to focus on preparing the selected staff for accomplishing the
required tasks. This is done by;
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Orientation;The newly hired staff is given a general orientation about the nature
of the job and the expectations from them.
Training;All necessary trainings are provided to the newly hired staff so that
they get all the necessary informations and expertise according to their nature of
the job. HRM also needs to provide them continuous training throughout their job
role for further upgrading their knowledge.
Development;HRM is responsible to provide the continuous feedback and
knowledge via different workshops,training sessions etc for further development
of their expertise.

2.2.5: MOTIVATION (STIMULATE)

HRM role is quite important for motivating the employees. Motivation can be
done by following ways;
Job design; Job to be designed in such a way that it enhance the interest of
workers in their role.
Performance appraisals; Appraisals to be carried out based on the
performance and results of the employees.
Rewards and compensation; Proper and transparent rewards&compensation
strategies and policies to be made for getting maximum output from the
employees.
Employee benefits; Employee,s benefits like bonuses,insurance etc to be
taken more seriously giving a sense of more devotion to the employees with their
work roles.

2.2.6: MAINTENANCE (KEEP)

The role of HRM is not just to recruit the people but they are supposed to make
such
a relationship with employees that gives them a friendly environment and
satisfaction while working in the organization.
Health and safety; HRM should take care of the health&safety issues of the
employees and provide them a safe working environment,
Communications; HRM needs to establish a proper communication system
with the employees for knowing about their problems and new innovations etc.
Employee relations; HRM also needs to make such a relationship with the
employees that they feel the family environment in the organization. They share
their views and knowledge with each other and management without any
hesitation.

2.3:STAFFING ACTIVITIES
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Recruitment is a quite sensitive task in any organization. To prove the right

workforce according to the nature of job is a great responsibility of the HRM
department. Following factors are quite important to consider while recruiting the
staff.
Employment planning; A proper planning of employment like the ways of
advertisement,interviews&selection criteria etc is the basic thing to take into the
account.
Strategic goals and objectives; HRM should be well aware about the goals
and objectives of the organization and should make the strategics keeping in min
those goals and objectives.
Job requirements change; Job requirement might change and HRM should be
flexible enough to make strategics and plans according to the requirement.
Job analysis; HRM needs to analyze the job carefully and should consider all
requirements for vacancies.
Job description; Job description should be quite clear to HRM and they should
clear it to candidate as well. It should cover all aspects of the nature of the job.
Example;JD of Merlin; Merlin UK is a charity organization and following is a job
description for a new vacancies which shows that how HRM needs to provide
clear and detailed information to the candidates about the nature of the job.

Job Description
Position: Finance and Administration Officer
Programme: Central African Republic
Responsible To: Country Director
Location: Bangui
Start Date: ASAP
Duration: 6 months subject to funding
Salary: 12,113 - 14,338 annual salary dependent on relevant experience,
plus an annual cost of living allowance of 5,111, insurance cover,
accommodation and flights.
Only short-listed applicants will be contacted. Due to the urgency of this
position,
applications will be short-listed on a regular basis and we may offer this
post before the
closing date.
Please note: this is an unaccompanied position.
Responsibilities
1

Merlin Job description 2

Under the leadership and direction of the Country Director :
Finance
Ensure that proper financial procedures and systems are implemented and
maintained
Ensure compliance with the financial policies and guidelines of Merlin and the
requirements of donors.
Ensure compliance with local regulations in respect of financial and other
matters (eg
Registration, FX, taxation and labor laws)
Ensure that all taxes due are paid in the correct time frame
Set up, maintain, and monitor internal controls
Co-ordinate and maintain a cash forecasting system to ensure adequate funds
are
available to meet program requirements
Monitor ongoing levels of expenditure on individual programmes as against
budget and
provide timely advice of likely over and under spends
Prepare budgets, amendments and forecasts
Prepare donor financial reports in line with donor reporting requirements
Ensure reconciliation between management information and ledger records
Generally keep under review the financial and reporting systems and ensure
compliance to the field financial manual
Human Resources
Maintain Human Resources systems and procedures, with particular
emphasis on
ensuring compliance with labour legislation
Ensure that national staff personnel issues and needs are met according to
local labour
law and Merlin policy

 Ensure all contracts, terms & conditions, job descriptions for national staff are
issued
and are in compliance with the local laws
Provide support, training and guidance on HR issues as required
Administration
Ensure that contractual commitments (e.g. for the rental of vehicles and/or
premises)
are expressed in forms appropriate for the circumstances of the programme
Ensure that all expatriate staff are in-country on appropriate visas and that
their
personal files are kept updated
Set up and maintain Administrative systems and procedures across all sites
Management
Manage local Administrative Assistant
Provide support, training and advice to staff as required
Pay regular visits to Field sites for regular monitoring, supervision and training
purposes
Work closely with MedCo, LogCo and provide supervision and support as
required
Ensure budgetary implications are understood by respective programme
managers and
other staff
Person Specification
Essential
Merlin Job description 3
Qualifications, experience and competences
French language
Accounting Diploma/qualification
Experience of implementing financial control systems.
Charity sector experience
Managing accounts on accounting software
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 In depth knowledge of financial systems, financial/administrative management

and
reporting.
Good training/capacity building and management skills.
Focused individual with capacity to plan and manage in a multiple deadlineworking
environment.
Pro-active financial officer with risk assessment aptitude.
Willing to work in an insecure environment.
Understanding of security issues and guidelines
Strong interpersonal skills and good team player
Ability to work on own initiative
Strong communication skills, with excellent written and spoken English
Confident and proficient in the use of MS Office with intermediate level EXCEL
knowledge
Experience of establishing strong working relationships with colleagues from
different
functions and cultures
Experience of a flexible approach to managing and prioritizing a high workload
and
multiple tasks in a fast paced environment with tight deadlines
Experience of pro actively identifying and addressing issues
An understanding of and commitment to Merlins mission and values
Desirable
Qualifications, experience and competences
Qualified Accountant
Previous experience of working in field financial management.
Experience of field administrative/HR management.
Experience of donor compliance
To apply for this position
To apply for this position please download an application form from our website
1

www.merlin.org.uk. Completed applications should be emailed to

applications@merlin-uk.org
stating in the subject field the job title, country and reference number (if any) of
the vacancy you
have applied for.
Job skills; HRM needs to know and well aware about the skills required for the
position and do their best to provide right person for right job.
Recruiting; Recruiting needs to be done well in time and keeping in view all the
above mentioned factors.
Selection; Selection is the more sensitive issue which falls on the shoulders of
HRM department. Based on interviews,knowledge ,skills,experience and nature
of job, HRM needs to select the candidates in a transparent way.

2.4:TRAINING AND DEVELOPMENT GOALS

It is the responsibility of HRM department to provide training and development
facilities to all employees. The main goals and objectives of training and
development are;
Adapt to new surroundings; HRM has to be flexible enough to cope with the
changing working conditions and should provide such a training system to
employees which match with the changing requirements.
Cope with change; Technologies are changing day by day so HRM should
make such training and development planning that match and update the
knowledge of the employees.
Meet organizational needs; HRM needs to focus on the goals and objectives
of the organization and make such plans which matches the objectives of the
organization.
Training and Development Activities; HRM needs to arrange different
training sessions,workshops and activities for the continuous knowledge of the
employees.

MOTIVATION
HRM departments needs to motivate the employees. Motivation can be done
either by;
Individual; Individually to each employee be giving him incentives based on
performance.
Managerial; through their managers and department wise
Organizational; Covering the whole organization.
Performance; Based on performance and efficiency of the employees.
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Willingness; Based on the willingness and devotion of the employees with the
goals and objectives.
Ability; Based on the abilities of individuals to successfully complete their tasks
in critical situations.
Respect; Based on the respect of employees to their co workers and
supervisors.

MOTIVATION GOAL
Motivation is based on following goals;
Competent and adapted employees; Motivation is supposed to provide the
competent and loyal employees that have the strong commitments with their job
and organization.
With up-to-date skills, knowledge, abilities; Motivation enables the
employees to upgrade their knowledge and skills as per requirement.
Exerting high energy levels; Motivation helps management to get the
maximum output from the employees and helps them to do at their best.

MAINTENANCE
HRM plays an important role fro providing the better maintenance and services to
the employees which are;
Health; Its is the responsibility of HRM to provide the health facilities to the
employment .Many organizations provide free medical treatment and insurance
to their employees.
Safety; HRM is also responsible for the safety of their employees at the
workplace. Safe environment for work is the basic right of employees which HRM
have to provide them as a priority.
Communications; HRM needs to make proper communication channel and
procedure between employees and and management. It will be helpful for getting
new ideas and feedback from employees.
Employee assistance programs; HRM has to play their role of assisting and
supporting the employees. All matter should be tackled and solved and
employees should be provided all kinds of help and support from HRM.
Environment where employee voices are heard; HRM have to make such an
environment in the organization in which everyone can discuss their problems
openly and their problems should be taken seriously.

2.5:Human Resource Function

A Summary;

The role of HRM in an organization can be summarized as follows;

Planning; To make proper plan and strategies for human resources.
Recruitment, Selection n Placement; Recruiting and selecting the right people
for right jobs.
HRM Development; To carry out all sort of development in the area.
Compensation and Benefit; To take care the benefits of the employees and all
such issues.
Employee and Labor Relation; to make proper and strong relationship with
employees.
Maintenance (Safety, Health n record); To take care all the issues of
maintenance and services like health&safety etc of the employees.
HRM Research; Continuous research for making more better procedures.
HRM is also responsible for looking after the following issues in the organization;
Over time; Keep record of the overtime of the employees.
Absenteeism; Keep attendance of the employees and taking care of the leave
records.
Wasted time; Minimize the wasted time.

Safety measures; Ensure safety of the employees.

Quality; Ensure the best quality of the work.
Working conditions; To provide good working environment for the employees.
Over staffing; Taking care the issues of over staffing and keep the staff within
budget and requirement
Motivational pay; Motivate the staff to increase their efficiency and provide
them incentives based on good results.
Improvements; Continuous improvements in the sector of HRM within the
organization.

2.6:Employment planning
Planning of the employment is the systematic way of predicting the future
employment forecast and employees supply
by
The estimation of quantity and type of required employees.
To be proactive with changing in the market
It consist of following Steps;
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Overall strategic directions and objectives of the organization.

To define the competencies needed.
Change in the requirement of the existing inventory of HR.
Practical planning to reduce gaps in existing and future requirements.
Preventing the under and over staffing.
Ensure

the Right quantity of Employees, at Right kinds of skills, at the Right

Place, and at the Right Time.
Ensuring

that the company is proactive.

Providing

coherence and direction to all system and activities of HR.

Uniting

the perspectives and objectives of staff and line managers

2.7:Organizational framework
Role of HRM in the context of organization consists of following factors;
Organization Vision; To take care and make HR policies matching with the
vision of the organization.
Mission

Statement; To make and implement the mission statement.

SWOT

Analysis; Analyze the strengths, weaknesses, opportunities and threats

and make policies& strategies accordingly.
Competitive

Intelligence; To Seek the basic information about the

competitors

2.8:Assessing current Human Resource Requirement

The role of HRM also need them to get continues feedback regarding HR
requirement in the organization. This can be done by;
Collecting the information through the forms
Checking

the supervisors

Producing

the report of HR inventory

Developing

the Profiles of every employee

Assessing

development and training requirements

Improving

the performance

2.8.1:LABOR DEMAND
Following issues are linked with the demand of labour in an organization which
HR department needs to take into account;
Year

by year; People retirement at normal intervals and continuous requirement

of filling the gaps.
Job level;Staff promotions and gap to be cover accordingly.
Job type;Right person to be recruited according to the nature of the job.
Diversity;Focus on providing more than one skills to each employees and bring
diversity in the skills.
Knowledge;Knowledge to be provided and upgraded regularly.
Skills;Focus on providing more skills to employees.
Abilities;Continuous observation on the abilities of each employee and take the
benefit from their abilities.
Forecasting methods;To make the proper forecasts for the future
requirements.
HOW; Make the planning and strategies for Human Resources.
LABOR SUPPLY INCREASES DUE TO;
New recruitments
Recent graduates
Returnees of Military (Basic
Migrating of employees
Unemployed
Contingency
Transfer

jobs)

workers

in

Returning

from the leave

LABOR SUPPLY DECREASES DUE TO;
Retirements of employees
Dismissals
Transfer

of employees

out

Layoffs
Voluntary

quits

Sabbaticals

Prolonged

illness

Deaths

How to match LABOR DEMAND AND SUPPLY??

HRM role is to balance between the demand and supply and focus on;
Shortages;Closely monitor the shortages and requirement in all departments
Change long term objectives;Make flexible and immediate policies as per
requirements.
Short term effects;To make it sure that skills gaps be covered quickly.
Quantity; Focus on quantity which is enough for completing the task..
Quality;Focus more on quality of work.
Oversupply; Closely monitor the HR inventory and keep an eye on the
redundancies.
Downsizing;Downsizing in case of unnecessary redundancies.

2.9:BETTER SOLUTIONS FOR HRM;

HRM can use some of the following solutions ;
Outsourcing
Sending the work outside the organization.
Continuous

improvement
Continuous improvement in procedures.
Rightsizing
Downsizing or up sizing as per requirement.
Work

process engineering
Revising the process of work and minimization of wastes.
Flexible workforce
Provide diversity and flexibility in the workforce.

2.10:Job Analysis
It

provides the information regarding the jobs presently done and the skills,
abilities and knowledge that each individual require for performing the job
adequately.
It

involves the description and identification of what is going to happen on the

job.
Precisely

and accurately identifying the needed knowledge, skill, tasks essential

for performing them and the conditions under which they must performed.

2.10.1:JOB ANALYSIS OUTCOMES

Following are three outcomes of the job analysis which are;
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Job
Job
Job

description.
specification.
evaluation.
JOB DESCRIPTION;
Following are the main features of Job description;
It focus on the job.
It is a written statement.
It shows that what has done.
How to be done.
Why to be done.
It Includes all details.
It has content of the job.
It shows the working environment
It specifies the terms&Conditions of the employment.
TYPICAL JOB DESCRIPTION FORMATS;
A typical Job description should consist of;
Title of the Job
Responsibilities&duties
Distinguishing characteristics
Authorities
Etc
JOB DESCRIPTIONS ARE USEFUL FOR;
Job description is useful for;
New Hires.
Recruiters.
For Performance appraisal.
ADA identifying the essential

function of the job.

JOB SPECIFICATION;
Main features of Job Specification are;
It focus on the persons which do the job.
It

identifies the minimum incumbent qualifications.

Skills,Knowledge,
Personality

experience, education, abilities, certification.

etc

.
JOB EVALUATION;
Job evaluation consists of following features;
Establishing the comparability of the job.
Compensation issues.
Relative values.
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Competitive
ADA etc.

Analysis.

HR FUNCTIONS REQUIRE THE JOB ANALYSIS BECAUSE OF;

Development of employees.
Development of career.
Performance appraisals.
Compensations issues.
Health&Safety.
Relations with labors.

2.11:Sources of Recruitment;
Following are the main recruitment sources for HR department;

2.11.1-INTERNAL SEARCH;
Advantages;
Time Saving; Easy for HR to find suitable candidates within the
organization,time saving etc.
Public relations; Improve the public relationships within the organization.
Builds the morale; Gives the motivation and boost up the morale of the
employees.
Encourages the ambitious and devoted employees; Helps the employees to get
promotions and rewards.
Cheaper; Saves the advertisement costs.
Know the candidates better; As candidates are already working in the
organization so everyone knows about their skills and abilities.
Already socialized;HRM department is already familiar with the candidates.
Training requirements; Less training is required for the candidates within the
organization.
And good EEOC notices etc.
Disadvantages;
Miss good talent from outside; Talent from outside the organization does not get
chances.
Causes the infighting and rivalry; Rivalry between the employees to get more
from others.
Inbreeding ;no new ideas etc.

2.11.2.EMPLOYEE REFERRALS;
HR might choose to recruit the candidates by employee referrals. The main
advantages and disadvantages of it are;
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ADVANTAGES;
It gives realistic preview of the job.
The candidate is more acceptable for others.
The candidate is more likely to accept the offer.
The candidate is more likely to remain in the firm.
Gives chances for the bonus to the referrals.
DISADVANTAGES;
Social Factors;It might be not acceptable for all.
Economic Factors; It might be expensive as there is o other option for
bargaining.
Friendship;It is based on friendships so it might slow down the work speed.
Diversity;It might stop the employees to diversify their skills.

2.11.3-EXTERNAL RECRUITING SOURCES

Employment agencies
Advertisements;
Schools, colleges and universities
Professional organizations
Unsolicited applicants

ADVERTISEMENTS;
Advertisements can be given in the local newspapers, placards on the gates, in
the trade journals and Internet etc.
TV and Radio can also be used as the medium of advertisement.
Advertisement is made wider if;
Specialized skills are required.
Higher level in the organization.
Short supply of the particular skills in market
Rates of Response vary because of;
Identification of the organization.
Conditions of the labor market.
Specifics in the advertisement.

EMPLOYMENT AGENCIES
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PUBLIC/STATE AGENCIES
They have the benefits for unemployment.
They take no or very less fees.
They are suitable mostly for low skill jobs.
PRIVATE EMPLOYMENT AGENCIES
They take Fees which might be paid or split.
Their image is better.
Advertisements is their headache.
Mostly suitable for the higher skills.
Are able to perform screening of candidates upto some extents.
Might provide training facilities etc.
The gives guarantee to candidates for the placements.
MANAGEMENT CONSULTING FIRMS
Mostly suitable for searching the executives.
Best for Headhunting.
Specialized in high skills
Suitable for finding senior managers.
It might be difficult for them to fill the gap of technical specialists.
Companies pay large amount of fees to such firms
.
Schools, Colleges, Universities.
The are good sources for services of placement.
Easy to get fresh talent.
Internships helps companies and candidates to get familiarities with the work.
Job fairs are good source for head hunting.
High grade students mostly get good chances.
UNSOLICITED APPLICANTS
The applicants that approach the employers through letters, Emails, telephones
or in person.

CYBERSPACE RECRUITING
Websites are a good source of advertising the vacancies.
More than 80% companies are using Internet.
Lot of services of Commercial job posting are available.
All kinds of the jobs can be found and advertised in a single website.

INDEPENDENT CONTRACTORS
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Recruitment Consultants; can be helpful in some cases.

Off site specific tasks can be given to such contractors.
They are thought to be good for the organization.
Helps to avoid lengthy Recruitment procedures .
No retirements issues in this case.
No compensation of the workman.
Economically good for company.
Etc

2.12:HRM Functions and role in

Engineering&Humanitarian Organizations;
Michael Armstong(2006) describes the importance of HRM in Engineering
organizations and insists to make transparent HRM procedures in order to get
highly skilled manpower.
Paul John William and Charles Andrew(1977) discusses following HRM
procedures in Engineering and Humanitarian organizations;
Job Posting; Job is advertised either on company notice board or by other
means like emails,webs,TV ,newspapers etc and a detailed job description of
each vacancy is clearly notified.
Job Application Form: Job Application form is forwarded to the candidates.
Some organizations provide the facility of filling the application form on line.
Application Form should be as much detailed as possible so that all information
about the candidate can be collected.
Merlin UK,is a Charity organization and its Application Form is a typical example
of a suitable and detailed form.
Short Listing; C vs and documents are collected before the last date of applying
and short listing is done based on the C vs,qualifications and experiences of the
candidates.
Call Letters; Call letters are dispatched to the short listed candidates and they
are directed to appear for preliminary interview.
Interview; Interviews are conducted from the candidates and their skills and
expertise is examined.
Final interview; Many organizations conduct more than one interview for
selecting the best candidates.
Selection; Based on interviews,qualification and experiences candidates are
selected for the jobs.
Job Offer Letters;Job offer letters are dispatched to the selected candidates
mentioning the complete terms&conditions of the employment. Candidates are
directed to report for their duties on a specified date.
Trainings;Trainings sessions are arranged during the probation period of the
new employees.
Induction; They are inducted in their departments.
Confirmation letter;After successful training and probation period,confirmation
letters are dispatched to them.
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HRM department is also responsible for time to time training and

development programmes of the employees. HRM has also to look after the
employee,s issues like pensions,insurances,wages,increments,health&safety
etc.
Gavriel Salvendy(2001) describes the importance of clear and strong HRM
procedures for industrial organizations which helps the organization to grow
further. He focus on the importance of selecting right person for right job and
importance of HRM for providing the skilled and devoted manpower.
David Edward(2003) discusses the role and procedures of HRM in
Humanitarian organizations. He describes that how much it is important for HRM
to recruit less but more effective and skilled employees in such organizations.
Due to higher check and balance from donors charity organizations cant recruit a
big staff. They are supposed to recruit less but multi skilled staff.

Chapter 3: Methodology
3.1:Introduction
This chapter is about the strategies of using the methodology and the way of
designing the study. We use primary and secondary research for collecting the
data which is considered as the most suitable method for collecting the data. It
will be discussed that what are the reasons and how the data was collected in
the research. Another important discussion in this chapter is about the selection
of grounded theory in spite of many other existing methodologies. The discussion
is about the selection of methodology and then the designing of questionnaires.
Limitations are also part of this discussion in the end.
3.2:Research Design and Strategy;
Collis and Hussey (2003) stated eight steps for achieving the objectives of
dissertation which are;
Selection of Methodology.
Limitations.
Grounded Theory.
Design of Research.
Selection and Techniques of Data Analysis.
Selection and Techniques of Data collection.
Summary.
The discussion in this research is about the procedures and role of HRM in
Engineering and Humanitarian Organizations and HRM Procedures in Attock Oil
Refinery,Pakistan is also discussed in detail. Of course the role of HRM in any
organization is quite important and sensitive. The role of HRM and its procedures
is discussed in Literature review in detail. Objectives of research are quite
essential to achieve and for analyzing the collected data a theory is developed.
Qualitative approach I,e Grounded theory help in building theory and is
considered as a clear methodology. Whereas Primary data is collected by
interviews and questionnaires .Company reports,documents,company official
1

website and personal contacts in the company are used for collecting the
secondary data. To involve semi structured interviews and questionnaire is very
important and developing a theory and furthermore for achieving the objectives of
the research. Theoretical sampling is involved after the collection and analysis of
primary data. Company documents and reports like the documents of training
procedures are involved for collection of secondary data.
3.3:Data Collection and Analysis
For getting the better answers the questionnaires are designed in the open
format. Those questionnaires include all details about the role and procedures of
HRM in the organization.
Interviews taken by the groups of;
Managers and
Employees
As mangers can lead the organization to success so they should have enough
skills and knowledge. Managers play an important role for the development of
employees and establishing the organization. Performance levels of the
employee can be collected from HR managers and they are key people for
getting such informations. Human resource managers will be questioned in such
a way that it will be easy then for them to give the answers after the analysis.
Human Resource department of Attock Oil Refinery,Pakistan are using all latest
and systematic HR procedures and playing an important role in the growth of the
organization so it will be better approach to observe,ask questions and collect the
data about the HR procedures in their organization. Human resource managers
and staff are of central point of focus as the whole research is about the role and
procedures of Human Resource management.
Glaser and Strauss(1967) discussed many ways for the analysis the
qualitative data focused more Constant comparison analysis which is the most
suitable method for such analysis (School Psychology
Quarterly Vol. 22(4) page 557-584).
Charmaz (2000) and Leech, Onwuegbzuie and Anthony (2007) also
discussed that how important is the selected technique (constant
comparative analysis) and so this technique is quite helpful for analyzing the
collected data ..
3.4:Grounded Theory in Research
Denzin and Lincoln (1994) discussed lot of research methods but suggested that
grounded theory is the most suitable method for qualitative research. The best
selection for the dissertation is qualitative research method because the
recruiting, development and training is very important factor in an organization.
A defined theory can be easily developed with the help of grounded theory which
can help us to approach the major ideas behind the integrated techniques in HR
procedures.
Glaser and Strauss (1967)explained various aspects of grounded theory within
the environment of an organization. They discussed that how this method of
qualitative research I,e grounded theory can present a systematic and defined
analytical method for developing further critical ideas. Further more another
reason to use grounded theory is that it can also be linked with quantitative
1

method as well as qualitative and quantitative both methods help for

accomplishing the objectives. The collection of data and methods of analysis in a
research play an important role for developing the theory.
Scott (1996) explained the importance of the grounded theory in such a way that
is is helpful for interpreting the analyzed and collected results. This method of
qualitative research is helpful for the selection of the methods of data analysis
and collection as per aims and objectives.
Strauss and Corbin (1994) discussed another point of view which is basically a
comparative analysis between qualitative and quantitative research methods.
They summarized that quantitative
methods is not much appreciated these days because they don't explain the
interpretation
with collected results and are not helpful for changing the environments in the
organizations.
So it can be concluded that both qualitative and quantitative methods are
important but their selection depends on the research. This is also a high value
point that in case of quantitative research methods it is needed that analysis to
be done from different aspects of the organization. Whereas in case of qualitative
research method ,these methods gives a framework that can be helpful for
developing and defining a rout for accomplishing the objectives and aims of
research. After the views of experts it is also clear that grounded theory is much
valuable in lot of aspects. The most beneficial factor of this theory is that it is
helpful for interpreting the results and is also helpful in collection and analysis of
the results. Grounded theory is executed in a defined way
and is also helpful in integrating with the quantitative methods wherever it is
possible.
Grounded theory,s selection in this research is an obvious option after the study
of the main features of the theory. For investigation of the selected organization
as far as recruitment,training and development of the employees
is concerned, a framework was required. Therefore this method of qualitative
research was helpful for developing the framework for accomplishing the
objectives and aims.
Collection of data is carried out through questionnaires
,interviews,reports,documents and websites. Designing of questionnaires is
initially done for developing the idea about the methods of recruiting,training and
development of the employees which might be useful. Questionnaires designing
is done for getting further help for conducting the interview. Questionnaires are
designed in different categories and the main idea in designing the
questionnaires is to determine and examine the different recruitment,training and
development ideas which are used by managers during the design of
recruitment,training and development of the employees. It is also the objective of
the discussion to know the point of view of the employees of the selected
organization about recruitment,training and development. Structured and semi
structured approach is used while conducting the interviews. Verification of
interviews is done by views of management and employees methods of trainings
etc. Interviews also helped to provide more ideas about recruitment,training and
1

development. Therefore it is stated that the issues which come in the view for
recruiting,training and development employees by the involvement of different
procedures of HRM. Report of an selected organization is also included for
investigation.
In fact the grounded theory is helpful for analyzing such reports as the
method of qualitative research is helpful for developing a theory that can help in
understanding of result. So,grounded theory is helpful for grabbing a balanced
idea about recruitment,training and development of the employees as grounded
theory discusses the frameworks about the integration of different methods.
3.5:Limitations
For summarizing the above mentioned primary and secondary research
methods there are lot of suitable ways for collecting the data and alternately
there are some limitations as well. Firstly,there is a lack of reliability and validity in
secondary research that might only be used for supporting the primary research
up to some extent. Secondly,the interviews and questionnaires are not selected
from a much wide area in primary research that may not be signifying the whole
situation.

CHAPTER 4:Case Study:Attock Refinery

Limited(ARL),Pakistan
4.1: INDUSTRY BACKGROUND
Oil refinery is a plant of industrial process in which processing of crude oil is
done and is separated in the useful products of petroleum like diesel
fuel,gasoline,heating oil,asphalt base,liquefied petroleum gas and kerosene etc.
Typically the oil refineries are big sprawling industrial frameworks consisting of
large piping system running all around which carries continuous supply of fluids
between different units for further processing.
4.2:History;
First oil refinery was built up by Ignacy ukasiewicz near Jaslo,Austrian Empire
(which is in Poland now) in the years between 1854-56 but in the beginning they
were very small as there was not too much demand of refined fuel in those days.
As kerosene lamp of Lukasiewicz got much popularity so the industries of
refining started growing more.
First big refinery was built up in 1856 at Ploieti,Romania. Lot of other oil
refineries were set up at the same place with the investments from the
companies of United States before World War II When Nazi Germany took over.
In the Operation Tidal Wave,August 1943, United States Air Forces bombarded
many of these oil refineries. After that most of them were rebuilt but they are
facing environmental concerns as well. Another example in the beginning is
Oljen,which is now being preserved in UNESCO world heritage site,
Engelsberg as a museum. Its operation was started in 1875 and is a part of
Ecomuseum Bergslagen.
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At one interval, the refinery at Ras Tanura, Saudi Arabia, which is owned by
Saudi Aramco was claimed as the largest oil refinery of the world. While in the
most time of 20th century Abadan oil refinery in Iran remained the largest refinery
of the world. This oil refinery was extensively suffered during the Iraq-Iran war.
The largest complex refinery is the "Centro de Refinacin de Paraguan" (CRP)
which is operated by PDVSA and is in Venezuela It has a production,s capacity
of 956,000 barrel/ day (Amuay 635,000 bpd, Cardn 305,000 bpd and Bajo
Grande 16,000 bpd).South Korean Corporation's Ulsan oil refinery having the
capacity of 840,000 barrel/day and Reliance Petroleum refinery in Jamnagar,
India having the capacity of 660,000 barrel/day are respectively second and third
largest refineries.
In th beginning United States oil refineries were processing crude oil for
recovering the kerosene oil. Whereas other by-products like gasoline etc were
considered as wastes and these were mostly dumped in the nearby river directly.
The demand of diesel and gasoline increased soon after invention of automobile
and are the primary products of refineries now a days. Oil refineries were predating EPA which was very toxic for the environment. Oil refineries are now
bound to meet the modern standards of water and air cleanliness by strict
legislations. Of course , for getting the permit for building up even a latest and
modern refinery having minimum impact on environment other than CO2
emissions is now so difficult and difficult that not too much new refineries are
opening now a days (though lot of them have been expanded) in US since 1976.
As the result of this, some people are believing that this might the reason that
why United States has become dependent on the import of the finished gasoline
more as more, as compared to the incremental crude oil. Whereas it is revealed
from the studies acceleration in in mergering activities in the production and
refining sector has further minimized the capacities and resulted into more tighter
markets particularly in US.
4.3:PAKISTAN OIL REFINERY INDUSTRY;
Currently, Pakistan have five major operating oil refineries with the combined
capacity of refining of 270,000 barrels/day approximately. The consumption of
the energy products is increasing day by day and Pakistan remained stagnant in
the capacity of installed oil refineries. For meeting the day by day increasing
domestic demand of the energy products Pakistan is still dependent on importing
such products. Pakistan is currently consuming 16 million tons of the petroleum
products,82% of which approximately is being imported.
ARL is a company of refining the crude oil. Attock Oil Refinery(ARL) was
established in 1922 by Attock Oil Company (AOC) in 1922 and is the oldest
refinery of the country. It has a very good experience of the successful operation
for more than 80 years Attock Oil Refinery has been updated and upgraded
gradually. It has bee replaced by the latest sate of the art hardware for remaining
the competitive and for meeting the new requirements and challenges. Attock Oil
Refinery is now more than fifty years old and both PRL and NRL are over thirty
years old .On the other hand Dhodak oil fields started the operation and
1

production in December, 1994. Attock Oil Refinery was converted in the public
limited company in the month of June 1979 and now is listed in the three main
stock exchanges of Pakistan.
Pakistan Refinery Limited ,PRL, is a nice example of the collaboration between
investors of foreign and Pakistan. Pakistan Refinery Limited was incorporated as
a public limited company in May, 1960 and is being on the stock exchanges of
Karachi and Lahore. This company is now engaging in the refining of the crude
oil. An agreement was signed on 28th November,1959 for construction and
operation of the oil refinery at Korangi,Karachi and was jointly participated by
investors of Pakistan and four major oil companies. Zulfiqar Ali Bhutto who was
then the Minister for power,fuel and natural resources laid down the stone
foundation on February 6, 1962. By July, the silhouette of Refinery could be
seen. In the addition of this construction, a tank farm was built at Keamari for
handling the imports of crude oil and exports of the product. On 2 nd October,
1962 the plant started its operations and on 14 th November,President of
Pakistan,Field Marshall Mohammad Ayub Khan, inaugurated the refinery. The
annual capacity of processing of the plant was enhanced in 1964 from 1.5
millions tons to 2.1 million tons of the crude oil throughput.
In 1963,NRL,National Refinery Limited was being incorporated as the public
limited company at Karachi. Under the Economic reforms Order 1972, Pakistani
Government took over the management of National Refinery Limited. Now a
days NRL is under the management of the Ministry of Petroleum & Natural
Resources which is currently exercising the control through its shareholding in
the State Petroleum Refining and Petrochemical Corporation ,PERAC. NRL is a
petrochemical complex and petroleum refining company and is producing a lot of
range of lubes, fuels, BTX (petrochemicals), asphalts and other specialty
products for exporting and domestic consumption. It is situated in Korangi
Industrial area, Karachi on a 263 acres plot of land.
Pakistan's Pak-Arab Refinery (PARCO), a joint venture between Pakistan and
Abu Dhabi, was established in 2000 to relieve Pakistan's dependence on refined
petroleum imports. As Pakistan's largest oil refinery, it has a capacity of 100,000
bbl/d of throughput. The estimated project cost is US$ 760 million. PARCO had a
plan to lay down a pipeline from Karachi to Multan and establish a mid-country
refinery. Incorporated in Pakistan in May 1974, as a Public Limited Company,
Pak-Arab Refinery Limited (PARCO) is a 60:40 joint venture, having paid-up
capital of Rs.11.6 billion and total equity of Rs.37.2 billion. PARCO s Board is
made up of six GOP Directors including the Chairman and the Managing Director
and four Abu Dhabi Directors representing Abu Dhabi Petroleum Investment
Company L.L.C (ADPI).
Bosicor Pakistan Limited was incorporated in 1995 and commenced commercial
operations in 2004. BPL's refinery is located on the coast of Balouchistan, on an
area of approx. 81 acres out of total company owned estate of approximately 600
acres, about 45 km from the city of Karachi. Refinery has a total capacity of 1.5
million tons/annum AND 55 % its shares owned by Bosicor Corporation Limited
(a foreign entity). The site has direct access to Arabian Sea. Third entry point of
1

oil through sea for country in private sector. Lower freight cost / tonne, cheaper
crude receipt through large size tanker (130,000 DWT) by installing a SBM. This
will also mean a 140 km shorter trip for oil tankers.
PSO,Pakistan State Oil is building a new refinery by the joint venture with Korea
and Kuwait at Badin, Sindh. Its annual capacity of refining is 4.8 million tonnes
and it will have the capability of processing the waxy crude oil produced in this
region. The estimated project cost is USD 800 million.
Pak-Iran Refinery is the joint venture between the Petrochemical Corporation
(PERAC) and State Petroleum Refining of Pakistan and the National Iranian Oil
Company. Its designed capacity of refining is 6 million tonnes of crude oil per
annum. It will be constructed near Hub, Baluchistan at Khalifa Point. The
estimated cost of this project is USD 1.2 billion. No infrastructure is existing at
Khalifa Point right now and an additional investment will be required for the
provision of this infrastructure.
Indus Refinery Limited ,IRL, is a Pakistani Public Limited Liability Company
which was registered in 2004 and its founding shareholders are the Middle
Eastern based American and British citizens (89%) and nationals of Pakistan
(11%). Site of IRL refinery is situated at the Main National Highway near Port
Qasim which is approximately 21 km from the FOTCO oil terminal and jetty and
is 2.5 km from Ghaghar Phatak. Its authorized share capital is Rs. 6,000,000,000
which is divided into 600,000,000 shares of Rs.10 per each share. IRL is a
93,000 barrel/day or 4.95 million metric tons/ annum complex of refining the fuel.
It will be 6th petroleum refinery in the country and the largest refinery of the
country. IRL will have a big competitive edge over the existing refineries as a
result of its modern and latest production technology and economy of scale.

4.4: INTRODUCTION OF ARL;

Attock Refinery Limited ,ARL, was incorporated as the Private Limited Company
in November,1978 for taking over the business of Attock Oil Company Limited
,AOC, which is related to the refining of the crude oil and supply of the refined
products of petroleum. In June,1979, it was subsequently converted into the
Public Limited Company and is now listed on three main Stock Exchanges of
Pakistan. It also got registration with Central Depository Company of Pakistan
Limited ,CDC.
Original paid up capital of the Company was Rs 80 million which was being
subscribed by the holding company I.e, AOC, Government of Pakistan,
investment companies and the general public. Present paid-up capital of the
Company is Rs 454.896 million.
ARL is pioneer of refining the crude oil in Pakistan after starting its operations
from 1922.The plants of ARL are being upgraded and replaced gradually with the
state of the art hardware after the successful experiences of its operations of

more than 80 years and now it is able to meet the competitors and meet the
challenges and new requirements as well.

4.5: History
All of this started in February 1922, when two small (2500 Barrel / day) "Stills"
arrived on the stream at the place of Morgah. Discovery of oil al Khaur was
followed by setting up of these facilities where drilling work initiated on 22 nd
January, 1915 and at a very shallow depth of about 223 feet 5,000 barrels of the
oil flowed. The disappointing behavior of the Khaur field, however, soon gave rise
to great difficulty to keeping the refinery gainfully employed. Fortune turned in
1937 with a discovery of oil in Well No. 7 at Dhulian. As the crude availability and
the demand for petroleum product in the area increased, the refinery was
expanded in late thirties and early forties. A 5,500 BPD Luromus Two-StageDistillation Unit, a Dubbs Thermal Cracker, Lubricating Oil Refinery and Wax
Purification facility and the Edeleanu Solvent Extraction unit for smoke-point
correction of kerosene were added. The Morgah Refinery produced the full range
of petroleum products: gasoline, middle distillates, fuel oils, lube base oils,
waxes, greases, solvent oils and various grades of paving as well as there were
subsequent discoveries of oil at Meyal and Toot (1968).
In November 1978, Attock Refinery Limited was incorporated as a Private
Limited Company to take over the business of the Attock Oil Company Limited
(AOC) relating to refining of crude oil and supplying of refined petroleum
products. It was subsequently converted into a Public Limited Company in June
1979 and is listed on the three Stock Exchanges of the country. The Company is
also registered with Central Depository Company of Pakistan Limited (CDC).
Reservoir studies during the period 1970-78 further indicated high potential for
crude oil production of near about 20,000 BPD. In 1981, the capacity of refinery
was increased by the addition of two Distillation units of 5,000 and 20,000 BPD
capacity, respectively. Due to their vintage, the old units for lube/wax production,
as well as Edeleanu, were closed down in 1986.
ARLs last up gradation project in 1999 included a Heavy Crude Unit of 10,000
bpd and a Catalytic Reformer of 5,000 bpd. This was followed up with the
commissioning of a Captive Power Plant of 7.5 MW in 2000. Till late 2000, Crude
oil was being received through pipeline and bowsers in the ratio of 13% and
87%, respectively. To reduce road congestion and traffic hazards in the city and
the area around the refinery, the crude oil being received from the Southern fields
through bowsers (which is 45% of total receipts), is now being decanted at a new
Decanting Facility at Khaur (100 km from Rawalpindi) and pumped to the refinery
through already existing pipelines, thereby ensuring both an environment friendly
mode of transportation and maximum utilization of existing assets (pipelines).

4.6: Present Situation

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The current nameplate capacity of Attock Refinery Ltd is 37,500 barrels / day
comprised of four Units of distillation. ARL is continuously searching the value
added products and is now embarked on production of the Polymer Modified
Bitumen ,PMB, which is first venture of this kind in Pakistan and is in line with
our long term commitments to bring the innovation to our valued customers, also
it ensures maintainability durability of the roads of Pakistan in the process. This
might be estimated and evaluated not only by our investments in PMB plant
which was inaugurated in March 2001, but also by different rial sections carried
out with our PMB which are performing very well for over two years now. Right
now,ARL and National Highway Authority, NHA, are jointly sharing the cost of
PMB which is involved in twelve Kilometers "Taxila - Turnol Rehabilitation
Project" which proves an excellent effort for providing the solutions to our
industry of road construction. ARL has recently successfully added the fuel JP8
to its range of the Jet fuels production which was already included JP1 and JP4.
Attock refinery Limited has already provided Low Sulfur Furnace Oil and Low
Sulfur Diesel Oil as it has a policy of producing the fuels of more friendly to
environment. ARL has also started the production of the unleaded gasoline.
Production of low benzene and low aromatics gasoline is now the main target of
ARL. As the government has the policy to maximize the exports so Attock
Refinery Limited has also successfully started exporting PMG, PMG and Jet
fuels to neighboring country Afghanistan and another product of the
Petrochemical grade Naphtha to Singapore.
As part of the business diversification plans of ARL, A project of white
Petroleum ,petlieum, which is a of transportation is badly required for our
country. The project is including the laying of a 470 Kilometers. 95ng pipeline
from the place of Machhike ,Sheikhu Pura, to Morgan and to Taru Jabba
,Peshawar. Kerosene,Premium Motor Gasoline PMG, High Speed Diesel Oil
HSD, and Jet Fuels etc will be transferred through this pipeline, which will be
passing through all the big consumption centers coming in its way .For future
supplies to the areas areas like Hazara,Mardan and Sialkot etc Spur lines are
also planned. ARL has commitments with the protection of the environment just
because it s dedicated to its product,s quality. In the year 1993, at the time of
promulgation of National Environmental Quality Standards NEQS, Attock
Refinery Limited done a comprehensive survey regarding its facilities of effluent
treatment with the collaboration of an international consultant having the
objective of upgrading it. Attock Refinery Ltd has spent more than PKR 20
Million on the projects of environment for meeting NEQS through installation of
Slant Rib Coalescing ,SRC, unit for the recovery of oil and also the Dissolved Air
Flotation ,DAF, unit to control the quality of water which quality leaves from the
refinery. As far as emissions of gases are concerned, not only stacks of ARL are
meeting the standards of NEQS , but up gradation project of ARL was also
equipped with the state of the art technology for ensuring the compliance with
with the standards of NEQS. This is also carried out in order to prove that
1

commitment of ARL for quality and and to protect the environment is continuing
as an on going characteristics of its operations.
National Cleaner Production Center, NCPC,is initiated by the sector of fuel and is
a center of excellence. UNIDO established it at ARL for targeting the techniques
of Cleaner Production in the Industry, resulting in minimizing the waste at the
source. This is a strategy for prevention in spite of the strategy of traditional
reactive end of the pipe. This project is including in NEAP-SP( National
Environmental Action Plan Support Program) of the Pakistan's Government of
Pakistan and in addition of it the Fuels sector is extending to other sectors like
Leather,Multi sectoral and textile etc. Two projects of cleaner production , Zero
Effluent and the Solid Waste Management were started in the year 2003 at
Attock Refinery Limited having the concepts of 3R's: Reduce, Reclaim and
Reuse.
Apart from the day by day and actively encouraging usage of the solar energy for
promoting the sources of renewable energy, Attock Refinery Limited has
embarked on building the Morgan Biodiversity Park in the district of Rawalpindi
near the villages of Morgah / Kotha Kalan as a part of the environmental
conservation. It will be jointly established by ARL, UNESCAP and Economic
Affairs Division of Pakistan and will be first of its kind in Pakistan. This region has
a rich heritage of biodiversity and is typically representing POTOHAR. This
proposed rich park will be helping in poverty alleviation of the area along with
conservating the region,s rich biodiversity.
It might be attract full for visitors, students on their tutorial visits and picnic parties
and being an enormous blend of knowledge and entertainment and knowledge it
will be welcoming them. ARL has made planning s for further expansion of the
capacity of its refining and to add more units of downstream processing for value
addition and for producing more products of environment friendly .Savings on the
refining margins and basis of strategic advantages are the justifications for
expanding the refining capacity of Pakistan, which in other case switch over
towards the overseas refineries. Pakistan is enriched with suitable and adequate
availability of skilled and trained manpower within the country for running the
additional refineries efficiently.
Local construction and engineering companies are fully capable for
manufacturing and constructing the feasible parts of new refineries, but also
promoting the indignation.
ARL is always committed to excellence and is ensuring to run its present refinery
in a much efficient and safe way and is continued for building on the deep and
strong relationships with the customers. ARL is doing it by providing the best
products and services of best quality constantly exceeding expectations to its
customers.

4.7:VISION, MISSION AND CORE VALUES :

Vision 2020
To remain a world class,renowned and a leading organization which is
continuously providing energy resources of high quality and environment
friendly .
Mission 2010
To become a model of diversified energy resources and a petrochemical
organization which exceeds the expectations of all of its stakeholders. This will
be achievable for us if we utilize the best
blend of state of the art technologies, synergistic culture of the
organization,excellent processes of the business and high performing people.
Core Values
The success which we we get will not just be a matter of chance, but it will be a
matter of commitments with the following enduring values and beliefs which are
ingraining in the way we are thinking and taking actions for pursuing a climate of
the excellence;
Integrity & Ethics
The cornerstones of practices of our business are honesty,Integrity,high ethical,
legal and safe standards.
Quality
We focus on pursuing the quality being a way of our life. It is the attitude that is
affecting everything which we are doing for the relentless pursuit of the
excellence.
Social Responsibility
It is our believe to respect the community and to preserve the environment for
generations of our future and also to keep the paramount of our National
interests in all our actions.
Innovation & learning
For our successful future ,we embrace lifelong innovation and learning as an
important catalyst. Our believe is in continuously improvement and seizing the
opportunities inheriting in change for shaping our future.
Team work
It is our believe that satisfied and competent people are the heart,soul and
muscles of our company. We savor flashes of genius in organization's life by
reinforcing attitude of team work and knowledge sharing based on mutual
respect, trust and openness
Empowerment
We are flourishing under a ecosystem which consists of the shared
understanding and is founded on concept of open communication, accountability
and empowerment in all directions.
4.8: Products of ARL
Serial No. PRODUCT NAME

USAGE
1

1
2
3
4
5
6
7
8
9
10
11

12

PMG or Premium
Motor Gasoline
Kerosene Oil

Used in cars, motor

cycle etc.
In paints, used for
fire
HSD or High Speed Used in heavy
Diesel
machinery e.g.
Buses, Trawler
JP-1 or Jet
Aircraft Fuel
Petroleum
JP-8
Aircraft fuel used in
International Aircraft
FFO or Furnace
In power plant,
Fuel Oil
Kilns, Steel Mill etc.
Jute Batching Oil
In byproducts of
Jute
Solvent Oil
Used as thinner in
different chemicals
MTT or Mineral
In varnish for
Turpentine Oil
shining etc.
LDO or Light Diesel In thrashers etc.
Oil
Asphalt or Bitumen Used in carpeting,
construction of new
roads and in
foundation of
buildings etc.
Naphtha
Oil from first stage
of refining. Mainly
exported for plastic
ware.

4.9: Departments Information

Following are departments in ARL
Finance

Business Review and Assurance Department

Commercial and Material Management
Maintenance
Operations
Technical Services/ Planning and Development
Engineering
Quality Control Laboratory
Health, Safety and Environment
1

Human Resources and Administration

Training and Development

Public Relations
Staff Affairs
Time Office
ERP
Fair Price Shop
Recruitment
Administration

Staff Position Classification and Grades

Attock Refinery Limited has the following categories of staff members as
under:
S. No.
1
2
3
4
5

Description
Non-Management (Unionized) Labor
Grades
Non-Management (Unionized) Clerical
Grades
Non-Management (Non-Unionized)
Fire Service, Security & AHL
Management Cadre (Regular)
Management Cadre (Contract)

Grades
1 to 9
C1 to C5
N1 to N9
Grade I VIII
As determined by the
Management

Total Number of Staff Members

Total number of staff members in ARL as on December 31, 2008 is shown below:
Permanent:
Management:
205
Non-Management:
465
Direct Contract:
Management:
07
Non-Management:
03
Indirect contract
Management:
74
Non-Management
50
Training:
87
Stipend:
39
Total
=
1381

4.10: Organizational Structure

Information related to the organizational structure of Attock Refinery
Limited is as under.
Board of Directors. The board of directors of ARL consists of 12
members, including chairman, Chief Executive Officer (CEO) and company
Sectary. The list of 12 members of Board of Directors is as under.
Bashir Ahmad (Chairman)
1

Ghaith R. Pharaon
staqbal Mehdi
Mohammad Iqbal Awan
Mohammad Mansoor Zubair
Shuaib Anwer Malik
Laith Ghaith Pharaon
Mofarreh Said AI Ghamdi
Arif Kemal
Babar Bashir Nawaz
Mohammad Raziuddin (Chief Executive Officer)
Ahmed Abid (Company Secretary)
GENERAL LAYOUT OF ARLS STRUCTURE
Chairman
Chief Executive Officer (CEO)
General Manager
Assistant General Manager
Senior Manager
Manager
Deputy Manager
Assistant Manager

Senior Management
Staff

Senior Executive Officer

Executive Officer
Senior Officer - 1
Senior Officer - II
Junior Management
Staff

Officer
Lower Staff

4.11:HR Department Of ARL

4.11.1:Introduction to Human Resource
This project report is related to the Human Resource Management Practices in
Attock Refinery Limited. Therefore, it is necessary to first define Human
Resource Management.
1

4.11.2:Defining HRM

Human Resource Management is a set of activities that managers

are engaged into attracting and retaining employees and to ensure
that they perform at high level and contribute to the
accomplishment of organizational goals.
Human Resource Management is a strategic and coherent
approach to the management of organizations most valuable
assets that are People working there, who are individually and
collectively contributing towards the achievement of organizational
goals.
4.11.3:Human Resources Department
The human resources department is responsible for optimization and
rationalization of resources. Its aim is to ensure recruitment and retention of high
quality professionals, evolving and implementing training and development plans
and undertaking assertive industrial and social policies. It evaluates the
performance of employees on their job, which helps counsel them to improve
their performance.
4.11.4:ARL has the following human resource policies:
1. Employ the best-qualified persons available, recognizing each person as
an individual thus affording equal opportunity
2. Pay just and responsible compensation in line with the industry standards, job
requirements and work force.
3. Help employees to attain their maximum efficiency and effectiveness through
a well-rounded training and development program.
4. Provide and maintain comfortable, peaceful and orderly working conditions.
5. Promote from within whenever possible and provide opportunities for
growth and promotion to the employees.
6. Treat each employee with fairness and respect and in return expect from him
in service marked by dedication, devotion, commitment and loyalty.
7. Encourage each employee to improve and develop himself and thereby
prepare him for positions of higher responsibility.
8. Recognize and reward efficiency, team work, discipline and dedication to duty
and responsibility.
9. Exhaust all means to resolve Labor-Management differences, promptly and
Amicably, if any.
10. Provide a wholesome and friendly atmosphere for harmonious Labor
Management relations.
4.11.5:Structure of Human Resource Department of ARL

According to the structure of Human Resource Department of Attock Oil Refinery,

Manager is the head of this department, who is directly reportable to the Chief
Executive Officer (CEO).
The human resource department is biggest department of ARL, with more than
500 workers in the department. There are several departments working
collectively to manages the needs of companys human resource and perform
different functions of HR. All the departments were interlinked with each other.
Heads of all the department are responsible to report to Manager (HR).
Company is following the MBO (management by objective) approach. All the
Employees can set their own goals collaboration with their managers and section
Head. At the end of the year section Heads and Managers can Appraisal the
performance of there employees according to their performance and completion
of desire goals. Promotion and increment is totally base on the performance of
the employee.
My six week internship is in HR department and I have visit and work with six
Sections of HR Departments of ARL. In next chapters I will discuss every one of
them one by one.
4.11.6:Sections of HR in ARL
Following are the main sections working in HR Department of ARL

Training and Development

Public Relations
Staff Affairs
Time Office
ERP
Fair Price Shop
Recruitment
Administration

4.12:Recruitment & Selection

4.12.1:Introduction
HR Planning can be defined as The systematic forecasting on the organizations
future demand and supply. It addresses HR needs of an organization in the
quantitative and qualitative terms. HR planning involves decision making that
combines three activities.
Identifying and acquiring right kind of human resource
Motivating them to achieve excellent performance
Creating interactive links between employee goals and business goals.
4.12.2:HR Planning in Attock Refinery Limited
HR planning in Attock Refinery Limited consists of the following activities:

Demand forecasting.
Human resource department of ARL receives the demand for human resource
from different departments. The respective departments also provide job
descriptions to the HR department which contain the complete details about the
abilities (skills, education, knowledge etc) and other requirements to be
possessed by the required candidate.
Supply forecasting.
It means to identify the sources from where we can recruit and select the
suitable human resource. The are two sources for this purpose are internal and
external. Internal supply of HR consists of workers / human resource within the
organization while external supply of human resource consists of suitable
workers from outside Attock Refinery Limited. Attock refinery limited uses both
sources of supply in order to attract and elect / retain human resource, but the
organization mostly prefers external sources for this purpose. The process of
recruitment and selection of candidates through internal and external sources will
be explained in detail in next chapter.
Motivating the Human Resource
The Human Resource in ARL is motivated so that they perform at high levels in
order to work for the achievement of ARL goals. This motivation is based on
various policies which are described in detail in the chapter related to motivation.
4.12.3: Job Description / Recruitment Criteria
It is the duty of human resource department to make job descriptions based on
job analysis (which is also done by HRD). The general format of job description
(related to / used by all departments for various posts) is as under:
ATTOCK REFINERY LIMITED
(JOB DESCRIPTION)
Ref: _____________________
Name
Service No
Designatio
Grade
n
Departmen
t
1. FIELD OF RESPONSIBILITY
2. FUNCTIONS
a. SPECIFIC TO THE JOB
b. RELATING TO PERSONS IN THE DEPARTMENT
c. REPORTS/ STATEMENTS
i. Daily
ii. Weekly
iii. Fortnightly
iv. Monthly
1

v. Quarterly
vi. Bi-Annually
vii. Yearly
3. WORK RELATIONSHIP
a. WITHIN THE ORGANIZATION
b. OUTSIDE THE ORGANIZATION
4. AUTHORITY
(To be described by human Resources Department in
consultation
with Department Manager concerned)
5. ACCOUNTABILITY
(To be described by human Resources Department in
consultation with Department Manager concerned)
6. QUALIFICATIONS AND EXPERIENCE REQUIRED
7. REPORTING TO
OFFICER CONCERNED
DEPARTMENT HEAD
Signature
____________________ Signature
______________________
Name
____________________ Name
______________________
Designation ____________________ Designation
______________________

Remarks by Human Resources Department

________________________________________________________________
_______
________________________________________________________________
_______
CHECKED BY
REVIEWED BY
APPROVED BY

Manager (HR)

AGM (HR)

Chief Executive Officer

4.13: RECRUITMENT AND SELECTION IN ARL

After guiding the demand for human resource along with the job descriptions and
also deciding about the source for recruitment ad selection the Human Resource
Department of ARL recruit and selects candidates on the basis of recruitment
and selection policy.

4.13.1:Recruitment and Selection Policy of ARL

After guiding the demand for human resource along with the job descry It is a
policy of ARL management to hire and retain the experienced, skilled and
committed staff for the smooth execution of its operations, both in technical as
well as non-technical areas. This policy sets the standard guidelines for the
Employment Process of Contract Staff for Attock Refinery Limited. This policy
implies to the recruitment of Contract Staff on advertised (external recruitment
and selection) and non-advertised (internal recruitment and selection positions.
4.13.2:Objective of Policy
To provide experienced & skilled manpower, both for management as well as
non-management positions, as per the requirements of department(s).

4.14:Procedure Related to Policy

Recruitment on Advertised Position (External Recruitment and
Selection).
The steps for the implementation of this policy for recruitment and selection on
external basis are as under:
1. Head of the department sends an Internal
Memorandum to the M (HR) indicating the
requirement, which is then sent to SE (HR) for
further action.
SE (HR) fills the Personal Requisition Form and sends to
initiating department.
Initiating department fills the PRF and returns it to SE (HR).
SE (HR) sends the PRF to the M(HR) for onward approval of CEO.
After the approval of PRF, SE (HR) prepares the advertisement
(Ad) which is approved by M (HR) / CEO
Once draft ad is approved it is sent to SE (PR) for the preparation
of sample ad through Ad Agency
SE (PR) returns the sample ad to SE (HR) for proof reading
SE (HR) does the proof reading and sends the final ad for CEO
approval through M (HR)
Upon approval of the ad, SE (HR) sends the ad to SE (PR) for
publication in the newspaper as advised by M (HR)
M (HR) receives all applications. Although a closing date for
applications is given on ad, the CEO / M (HR) has the discretion to
accept a late application on special cases.
These applications are entered into the database and a number is
allotted to each.
1

SE (HR) prepares the list of applications and sends it to the

concerned departmental manager.
The concerned departmental manager sends back the list of short
listed candidates according to their requirement criteria.
SE (HR) sends the interview call letters to the short listed
candidates along with Employee Information Form.
The interview panel takes the interview and analyzes the candidate
and fills out the Interview Rating Sheet accordingly. For contract
employee Interview Rating Sheet is filled.
In case of Management Trainees Interview Rating Sheet is filled.
SE (HR) prepares the Candidate Comparative Statement from the
interviewing rating sheets and sent to CEO along with Employment
Recommendation Form, through M (HR).
In case CEO wishes to interview the candidate, this is arranged as
per the instructions of CEO Secretariat.
The Personal Record File of Contract Staff is maintained by SE
(HR) office.

Recruitment on Non-Advertised (Internal Recruitment and Selection)

Position.
The steps for the implementation of this policy for recruitment and selection on
internal basis are as under:
1. SE (HR) receives the applications referred by
internal sources.
These applications are entered in the database and a number is
allotted to each.
After receiving the application SE (HR) contacts the applicant by
phone or email or by sending a call letter along with Employee
Information Form.
SE (HR) follows the same procedure as described above.
JOB DESCRIPTION
Department: HR&ADMIN
Job title: Officer (ERP)
Reports to: Mr. Zulfiqar Ali
Title: Coordination (ERP)
Job Grade:
Type of position:
1
Contract

Revision Date:
December 31, 2008

General Description:
- Being in the administrative and managerial position shall be responsible
for the supervision ERP and related work
- Daily working on late arrival & inform relevant section in charges.
1

Regular analysis of over time.

Increment record updating.
Keep up to date employee rosters.
Employees working hours verification.
Verification of General Services Salary / Increments etc.
To keep update record General Service Salary, Increment and Transfer
cases and other related work.
To ensure up to date record of employee transfers.
NMS Man of Quarter and Man of the year working.
NMS Good attendance allowance working.
To initiate Annual Appraisals for annual increment and promotion of the
staff working under his control
To initiate disciplinary action, if any, against the staff reporting to him under
intimation to his Section Head
Any other work that may be assigned by the sectional Head or the
Department Manager from time to time.

Education Requirements
- BA/B.SC/FA/F. Sc
Supervision Exercised
- Office Assistant
- Trainee Executive Officer
I have read and understood
above details and I offer
Unconditional acceptance of these
SAGHIR HUSSAIN

JOB DESCRIPTION
Department: HR&ADMIN
Job title: Officer (ERP)
Reports to: Mr. Zulfiqar Ali
Title: Coordination (ERP)
Job Grade:
Type of position: Contract
1

Revision Date:
December 31, 2008

General Description:
- Being in the administrative and managerial position shall be responsible
for the supervision ERP and related work
- Keep up to date information of dependents for medical & Atta facility.
- Keep up to date employee personal information.
- Keep track of any change in employee roster, shift & timings.
- Intimation of absent employees to department in charge.
- Keep up to date record of leave.
- Working on leaves, overtime & late arrivals of General Services Staff.
- Promotion record updating.
- Verification of over time.
- Man of Quarter & Man of the year working.
- To maintain I-Form Register.
- To maintain Lime Washing Registers.
- To initiate Annual Appraisals for annual increment and promotion of the
staff working under his control
- To initiate disciplinary action, if any, against the staff reporting to him under
intimation to his Section Head
- Any other work that may be assigned by the sectional Head or the
Department Manager from time to time.
Education Requirements
- BA/B.SC/FA/F. Sc
Supervision Exercised
- Trainee Executive Officer
- STA
I have read and understood
above details and I offer
unconditional acceptance of these
KAMRAN SHAHZAD

4.15:TRAINING AND DEVELOPMENT

4.15.1:

Introduction

ARL management provides training facilities to all its employees to enhance

their skills in their respective fields. Training courses can be in-house, in country
and overseas. MDC identifies the type of training needs course of the staff after
discussion with the respective departmental head. After the approval of the
departmental head, MDC executes the program after approval from CEO.
This function of human resource management is performed by Human Resource
Department of Attock Oil Refinery. According to the training and development
policy being implemented in ARL, there are three types of training programs and
respective training budget for (2008-2009) which are as under:
Courses
In house courses
In country courses
Overseas courses
Total =

Annual Budget
2,6,00,000.
7, 00,000.
7, 00,000.
4,0,00,000.

4.15.2
Training Need Assessment
Senior executive officer (training and development). Sends Management Staff
Training Need Assessment Form to department manager for assessment
purposes of the employee to be sent for training etc. This form is returned to
DMC after completion.
4.15.3:
Definition:
Before studying the training and development policy in detail it is necessary to
understand the abbreviation that will be used. The explanation of the
abbreviations is as under:
ARL:
Attock Refinery Limited
CEO:
Chief Executive Officer
M (HR): Manager (Human Resources)
AM (HR): Assistant Manger (Human Resources)
I/c(Admin): In charge (Administration)
TSC:
Training Steering Committee
MDC / WTC: Management Development Center / Workers Training
Center
JCCP:
Japan Cooperation Center Petroleum.
SE (T&D): Senior Executive (Training & Development)
M (O):
Manager (Operations)
SM (TS&E): Senior Manager (Technical Services & Engineering)
AGM (FP&MM): Assistant General Manager (Finance, Procurement
and Material Management).
4

M (HR) / AM (HR) is also responsible for implementation of this

work instruction.

4.15.4: In-House Courses:

Various organizations, companies, institutions and consultants send their

brochures, flyers, and booklets to ARL, which finally reach MDC.
SE(T&D)/AM (HR)/M (HR) initiate the case for an in-house course at
MDC, keeping in view the utility of the course for the staff.
SE (T&D) sends the case to M (HR) through AM (HR) for approval by
CEO.
M (HR) approves it or regrets it.
In case of approval from CEO the concerned company / institution etc are
informed of the decision and details are finalized by MDC staff.
SE (T&D) sends Internal Memorandum to all the departmental head for
the nomination of participant, giving details of the course.
Departmental Head nominates the person from his department.
SE (T&D) sends the copy of the memorandum to AGM (FP&MM), I/c
(Admin) for necessary actions..
SE (T&D) may also inform the participants about the course through the
QMS.
SE (T&D) makes sure that all arrangements are completed for the course
as per the Checklist for In-house Course,

4.15.5:

In Country Courses:

Various organizations, companies, institutions and consultants send their

brochures, flyers, and booklets to ARL, which finally reach MDC.
MDC suggests the names of the staff for the course after consultation with
the respective departmental head.
After the recommendation from the departmental head, AM(HR) / SE
(T&D) sends the case to CEO through M(HR) for approval.
CEO approves or regrets the course.
Departmental head also receives the information about the courses,
conferences & seminars. They sometimes directly send the case to CEO
for approval.
CEO approves the case and sends, it back to MDC for further action. If the
case is not approved, SE (T&D) files the case.
In case of approval from CEO, SB (T&D) contacts the concerned company
and finalizes all the details.
SE (T&D) sends the course confirmation through Internal Memorandum to
the departmental head and nominee.
SE (T&D) sends the*copy of the memorandum to AGM (FP&MM), I/c.
(Admin) for necessary actions.
5

SE (T&D) may also inform the nominee and departmental head through
the OMS.
SE (T&D) makes sure that all arrangements are completed for the course
as per the Checklist for In-Country Course.

4.15.6:

Overseas Courses

Literature for overseas courses reaches MDC through various sources.

Most significant of these are JCCP and APO courses.
SE (T&D)/AM (HR) propose the names of the staff members for the
course after consultation with the departmental head.
SE (T&D) arranges for a TSC meeting to prepare final recommendation
for nomination of staff members for overseas courses.
TSC comprises of SM (TS&E), M (HR), M (0), M (M) AM (Acct) and AM
(HR).
Proposal contains the details of all the courses already attended by the
nominee proposed.
Training budget is also taken into account for the proposal
SE (T&D) prepares the minutes of the TSC and gets them signed by
members and finally sends it to CEO for approval. The CEO approves,
rejects or replaces the nomination.
After the approval of the CEO, SE (T&D) sends the nominations to the
hosting country through e - mail/Fax.
As soon as the formal confirmation of the nominee is received, SE (T&D)
sends a Internal Memorandum to AGM (FP&MM) for payment of course
fee. Senior Executive (Public Relations) for making traveling and overseas
accommodation arrangements and Executive (Office Services and
Transport) for pick and drop of the nominee to and from the airport.
SE (T&D) informs the nominee and departmental head through the OMS.
Refer to the procedure Communications for more details about the OMS
or visit site ii(tp://rwp01/exch
SE (T&D) also sends e-mail to ALL through OMS that if they require any
information from that country, they can contact the participant.
Every participant signs a surety bond (on Government of Pakistan Stamp
Paper of Rs.100) before leaving for course.
SE (T&D) makes sure that all arrangements are completed for the course
as per the Checklist for Overseas Course.
Participant after attending the course delivers the, presentation about his
learning and experience of the course to his colleagues at MDC.

4.15.7:
Training Evaluation:
After an employee returns from training course, a Training Evaluation Form (Anx
A) is sent to the department manager for the evaluation of the employee, which
is returned to MDC after completion
5

4.15.8: Management Record of the Courses:

MDC keeps record of all the In-house, In-country and overseas courses in
Oracle Database.
SE (T&D) updates the database on as and when required basis,
Database has the following advantages:
Name wise record of all the courses attended by the management staff
List of all the participants in a course
Total cost of the respective course
4.15.9:

Training Conducted by ARL:

In house Training:
Aug007: business English, interview skills , HR skills 4 line managers/
managerial skills
SEP007: Target setting, Empowerment, Conflict Management
OCT007: Leadership Skills, Motivation, Empowerment
NOV007: Presentation Skills, Adaptability & Flexibility
Dec007: Planning & Organizing Skills, Management development Programme
JAN008: Initiative ness, Coaching & Monitoring
FEB008: Problem Solving & Decision making Skills, Project Management
MARCH008: Stress Management, Team Work
APR008: Self Confidence, Report Writing
MAY008: Monitoring & Coordinating Skills, Management Development Program
In Country Trainings:

Operation & Maintenance of Rotary Equipment

Effective Business Communication
Competency Development
Direct Excel Course
Essential of industrial Relation Collective Bargaining Strategies & Contract
Recruitment & Selection Skills
Applying Kaizen Management for Successful Leadership & Teamwork
Understanding ISO2000_IT Service Management System
Financial Management for NON-Finical Managers
Traceability
Method Validation
Assessor Training Course on ISO17025

Out country Training:

Improving Operational Efficiency of Boiler & Furnace
5

International Institute :
JCCP
In country & In house Institutes:
LUMS(Lahore Univ Of Management Sciences)
MDI (Management Development Institute)
SDPI(Sustainable, Development, Policy
Institute)
NAVITUS
ICIL
ACE
CMD(Center for Management Development)
GOVERNMENT

4.16:Staff affairs
4.16.1:

Staff affairs:

Staff affairs section will perform different set of activities for management staff of
the refinery. Record of all the employees from joining to till date was maintained
in the section.
The core activities of staff affairs are as under
Employee Record
Performance Evaluation
Employee Appraisal Form
Congratulations on a Job Well
Letter of appreciation to Employee
Employee Job and Motivation Improvement Meeting
Warning Notice
Giving Job Performance Feedback (Checklist) .
For management staff record of their salary, benefits package and annual
appraisal is been kept and monitor in the section
4.16.2:
PERFORMANCE APPRAISAL
Annual performance appraisal and prepared for each member of the
management staff. The annual report shows overall conduct and performance in
relation to the objectives set for the year and fixes objectives to the following
year. The report is discussed in detail with the employee and a relevant portion of
the copy is given for his personal record.
5

The detail of the performance appraisal policy is as under:

Performance Appraisal Policy
It is the Policy of the Company to systematically evaluate me Management
Personnel for me Job Performance, Potential for Development and establish
appropriate Rewards. Performance Appraisal will primarily be the responsibility of
the immediate Supervisor to whom the appraise reports
Objectives
Performance appraisal of the Management Personnel is designed to meet me
following objectives:
To assess and improve current performance of me
Employees over a predetermined period of time.
Determine realistic salary increase and promotion to higher
position based on performance.
Facilitate career planning of me Employees.
Document the performance to satisfy administrative and
legal requirement.
To create improvement and target oriented culture in me
Company.
Identify the strengths and weaknesses as they bear on jobrelated performance and potential.
Determine training and development needs of the
Employees.
Performance Rating Factors
Each employee is to be rated on each of the rating factor listed in the Appraisal
FORM-A & C (Anx A) BE SURE TO ENTER A RATING JUDGEMENT ON EACH
OF THE FACTOR.
Performance Rating Scale
Performance Rating Category

4.16.3:

Outstanding

Good

Above Average

Average

Below Average

REWARD MANAGEMENT
5

The HRM practice of reward management is being implemented in ARL through

reward management policy.
According to reward management policy, reward is
A recompense for anything done
In recognition of merit
For performance of a service
Employee Classification
Employees can be classified as management staff and nonmanagement staff:
1. Management
2. Junior management staff
3. Senior management staff
Pay Structure of Management Staff
Grades
1
2 (i)
3 (i)
3(ii)
4
5(i)
5(ii)
5(iii)
5(iv)
6
7
8
CEO

Basic pay
2,500
3,000
7,500
10,000
12,000
15,000
20,000
25,000
30,000
40,000
50,000
60,000
Board approval

Total package
9,136
11,385
24,048
32,339
37,990
47,885
61,377
75,448
87,540
115,043
145,927
173,790

Total package includes conveyance, utilities,

maintenance, servant, telephone, petrol working
allowances, house rent, bonus, leave fare assistance,
provident fund, pension
Company provided and maintained cars for grade 4
and above fixed fuel allowance from 200 to 400 liters
per month
Full medical coverage for self and family

Provident Fund
10% of basic pay per month is deducted as provident fund from salary of
employee and equal share by the company
Entitlement
5

Males workers age limit

=
Female workers age limit =

60 years
55 years

Profit Bonus for Management Staff

4 bonuses annually.
10 years service
20 years service
30 years service
40 years service & above
1 bonus = 2 basic pays.

Rs.5,000
Rs.10,000
Rs.15,000
Rs.20,000

Long Service Award for Management Staff

Pension
Basic pay x length of service x 2.3% = monthly pension
e.g. Rs. 10,000 x 10 years x 2.3 = rs.2300 per month
Different Awards, Polices, and Allowances
Long Service Awards
Length of Service

Gift along with Shield

35 years

Microwave Oven

30 years

Dinner set or Washing Machine

25 years

Food Factory or Room Cooler

20 years

Bicycle or Wrist watch

10 years

Wall clock

For Retirees

Length of service in years

Prize Bind Along with shield

41 to 50 years

Rs.4000

36 to 40 years

Rs.3500

31 to 35 years

Rs.2500

26 to 30 years

Rs.2000

20 years

Rs.1000
5

Man of the year Award

Cash award of Rs.5000 with shield is given to the man of the year on the basis of
his performance.
Man of the Quarter
Cash award of Rs.1500 is given to the man of the quarter on the basis of
performance.
Safety Award
Safety award of Rs.700 is given to the workers of the Fire and safety department
on basis of there performance
Give Away Policy
Every worker in the refinery are given pair of safety shoes, clerical shoes, shoe
polish, summer/winter uniform, soaps, towels, chappals, socks, candles, dates
(in Ramadan season) annually.
Medical Policy
ARL have its own Attock Hospital Limited which provide pharmacy, outside/
inside consultant, operation, ultrasound, laboratory test, x-ray, chronic ailment,
admission in AHL, general treatment facilities to the workers and their families.
The medical policy have following criteria:
Regular employee is given full coverage of medical facilities from AHL.
Wife of a worker is given full medical coverage.
Second, third and fourth wife as the case may be is entitled for Primary
care treatment at AHL.
All children are entitled to OPD and indoor treatment in AHL up to age of
24 years.
After the age of 26 years the male children are to be treated as private
patients. Four children are entitled to specialized treatment up to the age
of 24 years.
Parents of the workmen are entitled to OPD and primary care treatment at
AHL.
Retired employees living within 10 km radius are entitled to OPD and
primary care treatment.
Contract employees are entitled to OPD and primary care treatment at
AHL.
Hajj/Umra Policy
To determine three successful workers for performance of Hajj, the company
holds a draw every year. All Muslim workers having 5 years of service and above
are eligible for this, same is case with Umra policy, two workers having 5 years of
service are selected for Umra annually.
House Rent
House rent allowance is given at the rate of 35% of basic pay. And utility
allowance is Rs.400 per month
In case any worker is living in the quarter allotted to another worker the
former will not be entitled to the house rent allowance.

As and when the worker living outside is provided company

accommodation he would cease to get the house rent and utility allowance
from the date of his taking possession of the house.
Shift Allowance:
Workers who perform their duties in the rotating shifts round the clock are given
allowance of Rs. 295 per month.
Conveyance Allowance:
S. No Description
1
2
3

Workers living within radius

of 5km from place of their
work.
Workers living at a distance
of 5km and less than 8km
from their place of work.
Workers living at a distance
of more than 8km from
place of their work.

Previous rate
(per month)
Rs.100

Revised Rate per

month (2008-09)
Rs.100

Rs.400

Rs.440

Rs.450

Rs.490

Messing Allowance:
The workers who are required to perform duty either at Rawalpindi/Islamabad or
outstation will continue to be paid messing allowance at the present rates.
Traveling Allowance:
Traveling allowance is Rs.35 per person.
Traveling allowance is admissible to self, wife and three dependent
children upto the age of 24 year.
Title in terms of railway fare will be economy class
Journey must be taken by the shortest route and bus fare will only be
admissible in case the journey is performed to the place, which are not
connected by rail.

4.17:ERP & Administration

4.17.1:
ERP: Enterprise Resource Planning:
This department is formed for implementation of Human Resource Management
system.
The HRM system used in organization is called MERLIN ERP SYSTEM
This is an intermediate department between different users of HRM system and
IT Department.
This department is under control of HR department
5

CORE WORK ACTIVITIES:

Finding gaps in required and actual applications.

Providing assistance to different users of the system when problems occur
Facilitate and train users of the system.
Formed different types of reports
Employee personal Information
Resume
Hiring List
Employee basic pay information
Departure reason parameter
Employee to be deleted
Skill inventory
Leave management system.
Time Office Management System.
Security Management System

MODULES USED IN HRM System

Recruitment
Employee
Promotion and increment
Training
Appraisal
Separation
Sub-systems
Reports of System

Employees turnover
Employee List Report
Separate employee list
Employee promotion list
Employee retiring between
Employees turnover
Turn over report is use to find out the percentage of employees
leaving the organization
We can calculate turn over simply by dividing Average
Employees with total number of resign.
We can calculate average by adding count at start + counted at
end divided by 2.
5

4.17.2:

By using the system we can find out turn over report of one
month to a year.
A turn over report of past three months is given below

Introduction:

Administration department in ARL works under HR department and perform

necessary duties and activities related to them. This department perform plenty
of activities which includes events management , petrol pump, transport , club
and many others.
Core activities perform by administration department are as under;
Office services like office assistance
General services like deputing general workers / peons in general office
Shifting of furniture and related items in different offices
Distribution of Tea in general office and refinery 2 times a day.
Maintenance of general office building
Procurement and distribution of furniture to employees according to their
length of service
Repairing of old furniture
Photocopier Affairs
Calling Cards distribution to management staff
4.17.3:
Sections of Administration:
There one sections of Administration
Transport Section & Petrol Pump
7.3.1 Transport Section & Petrol Pump:
6

Transport office will deal with allocated pool vehicles allocating vehicles to ARL
employees and Official guests of company. In special cases vehicles are hired
from outside. transport section will perform following functions.
Daily movement of Pool vehicles
Procurement of new vehicles
Disposal of new vehicles
Fuel from ARL pump
Allocated Vehicles for management staff and their fuel quota
Fuel working allowance for grade 3 and 4
Fuel on personal account
Fuel to group of companies
School college transport facilities to children of employees
General aspects of transport office
Some of the main positions of the section are
Executive (Admin)
Trainee Senior Management (Fuel manager)
Senior Officer (transport)
Supervisor senior (transport)
Supervisor senior (Petrol Pump)
Drivers (16)
4.18 :

SWOT ANALYSIS

SWOT Analysis:
A SWOT Analysis is conducted by the company so that it is able to position itself
to take advantage of particular opportunities in the environment and to avoid or
minimize environmental threats. In doing so, the organization attempts to
emphasize its strengths and moderate the impact of weaknesses. The analysis is
also useful for uncovering strengths that have not been fully utilized and in
identifying weaknesses that can be corrected. Matching information about the
environment with the organization's capabilities enables management to
formulate realistic strategies for attaining its goals.
A SWOT Analysis of ATTOCK REFINERY LIMITED is as follows:
STRENGTHS

Socially Responsible company.

ARLs Oil related products enjoy strong brand image and market pull.
Innovative and constantly growing product line. ARL has launched new
products, including variants of existing products in recent past.
Financial, marketing and sales strategies are formulated by gauging the
customer demands.
Periodic research carried out to judge market trends/ other aspects.
It is a large scale organization, with abundant funds.
6

Growing Sales and profits.

Major shareholder in the Oil refining industry of Pakistan.
Efficient Distribution networks through out the country.
Quality oil relater Products.
Environment Friendly.
Strong Implementation of Human Resource Policies
ISO Certifications
All Staff Members are treated on quality basis

WEAKNESSES

Feasibility of new oil related products needs to be analyzed before

launching them.
Limited advertising efforts.
They are exporting their oil related products to few countries of the world
and they have a limited market within the country.
OPPORTUNITIES
They have Number of market available to sell their oil related products,
within the country and also around the world, where ARLs products have
not been introduced.
There are substantial growth opportunities available.
Credit policy can be adopted to increase sales.
THREATS

Price fluctuations due to rupee devaluation

They need to increase their marketing efforts; otherwise they will face
problems to compete in this competitive era.
The market is paying more than ARL to employees , so to minimize
turnover rate must match the market wage.

CHAPTER 5: CONCLUSION
5.1: CONCLUSION
HRM plays a key role in the progress and growth of any company and HRM
procedures needs to be strictly followed specially in Engineering and
humanitarian organizations as they need more skilled,diversified and motivated
staff. Also they need continuous training for updating and upgrading their
knowledge and skills.
Attock Refinery Limited is the pioneer in crude oil refining in the country with its
operations dating back to the early nineteen hundreds backed by a rich
experience of more than 80 years of successful operations, ARLs plants have
been gradually upgraded / replaced with state-of-the art hardware to remain
competitive with new challenges and requirements.
6

The company effectively manages its human resource by efficiently implementing

the human resource management practices in the organization. It is due to the
effective implementation or HRM activities, specifically by Human Resource
Department. That the company has been able to motivate its workforce and
achieve the targets as well as high profits

Chapter 6: Bibliography
6.1 Books:
Bratton, J., Gold, J., (2003), Human Resource Management (3rd ed.), New York:
Palgrave
Macmillan
6.2 Websites:
http://www.businesslink.gov.uk/bdotg/action/layer?
r.l1=1073861197&topicId=1075689112
&r.l2=1074446317&r.s=tl [Accessed on 27th June, 2008]
http://aede.osu.edu/people/erven.1/HRM/training_new_employees.pdf [Accessed
on 17th
July, 2008]
http://www.humancapitalmanagement.org/pdf/Technology.pdf [Accessed on 28th
July, 2008]
http://www.ppionline.org/ppi_ci.cfm?
knlgAreaID=107&subsecID=175&contentID=253143
[Accessed on 12th July, 2008]
url.http://www.arl.com
url.http://www.goole.com
www.merlin.org.uk
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6.4: Manuals:
Administration Policies and Procedures Manual ARL
Training and Development Policies and Procedures Manual ARL
Recruitment Policies and Procedures Manual ARL
ERP Data Base System ARL
Staff Affairs Policies and procedures Manual ARL
Compensation Policies Manual ARL
Appraisal Policies manual ARL
6.5: Personal Contracts;
Mr. Asif Saeed (Manager HR) ARL
Mr. Col (R) Muhammad Shujahat (Senior Executive HR) ARL
Mr. Zulfiqar Ali (Coordinator ERP) ARL
Mr. Sajid Hussain (Coordinator T & D) ARL
Mr. Obaidullah (Executive Admin) ARL
Mr. Iftikhar Zulfiqar (Senior Executive HR) ARL
Mr. Kamran Shahzad (Officer HR) ARL
Mr. Saghir Hussain (Officer HR) ARL
Mr. Atif Hameed (Officer HR) ARL
Mr. Khursheed Ahmed (HR Officer) Merlin UK,Muzaffarabad,AJK,Pakistan
6