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CHAPTER -1



I NTRODUCTI ON & HI STORY OF ARL












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Introduction
Attock Refinery Limited (ARL) is the pioneer of crude oil refining in the country. With
its operations dating back to 1922 and its plants gradually upgraded/replaced with state-of-the-
art hardware, the Company's Morgan Refinery possesses the capability to process the lightest or
the heaviest crude (presently processing 23 API to 65 API crudes) found in the country. Its range
of petroleum products includes Unleaded Premium Motor Gasoline, Solvents, Jet Fuels,
Kerosene, Mineral Turpentine Oil (MTT), Low Sulphur High Speed Diesel (HSD), Light Diesel
Oil (LDO), Low Sulphur Furnace Oil, Jute Batching Oil (JBO), Cutback Asphalts, Paving Grade
Asphalts and LPG. All of its products are presently consumed locally, meeting 50% requirement of
petroleum products of the northern areas of Pakistan. Recently ARL has also commenced exports to
Afghanistan and other international markets.

History
It all began in February 1922, when two small (2,500 Barrel per day) "Stills" came on
stream at Morgah. The setting up of these facilities followed the first discovery of oil at Khaur
where drilling started on January 22, 1915 and at very shallow depth of 223 feet 5,000 barrels of
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-Stage-Distillation 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


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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).
Vision
To be a world class and leading organization continuously providing high quality diversified
environment friendly energy resources and petrochemicals.
Mission
We will utilize best blend of state-of-the-art technologies, high performing people, excellent
business processes and synergetic organizational culture thus exceeding expectations of all
stakeholders.
Core Values
Our success will not be a matter of chance, but of commitment to the following enduring beliefs
and values that are engrained in the way we think and take actions to pursue a climate of
excellence:
Integrity & Ethics
Integrity, honesty, high ethical, legal and safe standards are cornerstones of our business
practices
Quality
We pursue quality as a way of life. It is an attitude that affects everything we do for
relentless pursuit of excellence
Social Responsibility
We believe in respect for the community and preserving the environment for our future
generations and keeping National interests paramount in all our actions
Learning & Innovation
We embrace lifelong learning and innovation as an essential catalyst for our future
success. We believe in continuous improvement and to seize opportunities inherent in
change to shape the future


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Team work
we believe that competent and satisfied people are the company's heart, muscle and soul.
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 flourish under an ecosystem of shared understanding founded on the concept of
empowerment, accountability and open communication in all direction
































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CHAPTER - 2



DEPARTMENTS I N ARL












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Departments In Attock Refinery Limited

There are eight departments in Attock Oil Refinery and a hospital named as ATTOCK
HOSPITAL (PRIVATE) LIMTED as seen in the organizational structure shown above. The
functions performed by these departments and the hospital are described in detail below.

Engineering Department. The aim of Engineering Department is to provide
Quality, Cost Effective and Reliable Engineering support to its Customers in the field
of Design, Inspection and Contract. We shall achieve this through Optimum
Utilization of Resources, Development of People and Systems, Superior Performance
and Implementing Current World Class Systems and Practices. The Engineering
Department provides engineering support and services in the field of Inspection,
Design, and Contracts. The Engineering department consists of three sections: Design
Section: The Design Section is responsible for mechanical and civil design of new
projects and modifications carried out in the Refinery.
(1) Inspection Section. The function of Inspection Section is to assure that
operating equipment is in safe condition during period of operation.
Inspection section also determines when equipment repairs and replacement
is required.
(2) Contract Section. The Contract Section is responsible for preparation of
ITB, floating of tenders, evaluation of bids and preparation of contracts.

a. Finance, Procurement & Material Management Department. The mission of the
Finance Department is to provide real time high quality support for strategic
visioning, growth, renewal and optimal utilization of financial and intellectual
assets, managing investing, financing and operating activities, managing business
risks and growth, developing matrices for measuring productivity of assets,
enhancing organizational operational efficiency and effectiveness for long-term


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value creation of the Company.

(1) Finance & Accounts Section. The Finance & Accounts Department develops
sound plans and procedures for effective management of ARL's financial
interests. The activities are carried out with efficient and reliable systems of
accounting of the company's operation, internal control, safeguarding of
company's assets, procedures relating to funds management, taxation and
insurance. The department administers staff Pension, Provident Fund and
disbursements of salaries of all the employees. It also develops and
recommends plans to finance Refinery operations and arrange banking
facilities. In most cases, foreign exchange remittance services are also
provided. The Finance Department keeps itself abreast of laws relating to
Income tax, Sales Tax, Foreign Exchange, Customs and Excise duties. In the
light of these laws, the department recommends policies best suited to the
Company.
(2) Information Technology Section. Computerization at ARL was
introduced in 1980 when ARL purchased ICL 2903 Computer. In the
beginning, its use was limited and was done in batch mode. All data was
verified and controlled at the Computer Center. Data used to be processed on
monthly basis. In 1989-90 ARL Management decided to go on-line. In this
respect, a multi user computer ICL DRS-400 was purchased with UNIX
Operating System and Oracle Database. With the assistance of KPMG
Peat Marwick, the on-line systems were developed in 1991. The on-line
systems were available to Finance Stores, Purchase and Human Resources
Departments. In 1995, a powerful IBM RS/6000 Model 390 replaced the ICL
DRS-400 Computer. This further improved the performance of on-line
applications. In 1998, the computerization at ARL took another leap when
ARL Management decided to provide Local Area Networking with the Internet
facility to various departments. Daily exchange rates of various currencies,
petroleum prices etc. are being monitored regularly on the Internet. Proposals


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are under consideration to extend LAN and Internet facility inside Refinery.

(3) Procurement Section. The Purchase Section is responsible for the
procurement of machinery, store supplies, spares and services from local as
well as foreign sources. Purchases are carried out on the most competitive
prices, after obtaining the best combination of price, quality and service.
(4) Material Management Section. The Stores Section manages the
general stores and handling of materials to staff bungalows. It maintains a list
of supply contracts with various agencies and provides feedback to
management. Additionally, the allocation of sales and demand trends for all
the products is carried out.

b. Maintenance Department. The Maintenance Department comprises of various
services that are mainly related to effective maintenance and improvement of
Refining units, Offsite facilities, Utilities Network, Workshops, Transport,
Electrical Power Transmissions, Communication Equipment, Instrumentation,
Civil Buildings, Structures and Roads including estate. The department makes
necessary repairs to machinery quickly and economically. The necessary repairs
to the Refinery plant and its surrounding property, i.e. roads, railroad tracks and
water supply facilities are among the duties assigned to the department. In
addition, the equipment inspection, lubrication, alterations are daily routine
activities of the department.
c. Operations Department. The aim of Operations Department is to ensure
efficient, safe and smooth operations of the Refinery, optimize energy usage,
produce value-added products and maintain an oil accounting record for efficient
monitoring of Refinery Operations. It also aims to develop a motivated team for
the Refinery operations, upgrade the Refinery's existing operation by using state-
of-the-art technology in order to meet the future challenges and impart continuous
training and development of operations staff to have high spirit of excellence,
fairness, quality of work and discipline on the job. The Operations Department


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ensures cordial relationship with other departments for improving the overall
productivity of the Company and to maintain equipment healthy and overall house-
keeping. The Operations Department is the largest department in the Refinery. Its
overall function is to receive crude and send it to storage, its refining and
dispatch of to Marketing Companies. The department receives crude from 41
different oilfields and allocates tanks for its storage according to the
specification of the crude. Operation department is responsible for safe and
optimum operation of four crude topping units and one Naphtha Plat forming
Unit. The department takes measures in producing petroleum products of high
quality and, standards. that meet or exceed the PSI specifications: Operations
Department is also being equipped with various internationally recognized
softwares like PIMS &'HYSIS, for continuous monitoring and planning for
most efficient operations of the Refinery. A team of operations engineers is
trained on these softwares for effective utilization. The department has good
liaison with Excise and Sales Department and Ministry of Petroleum & Natural
Resources in order to have correct, timely, calculation and deposition of
Government duties and levies. The Operations Department has liaison with
Marketing companies, i.e. Pakistan State Oil, Shell, Caltex and Attock Petroleum
Limited for safe and timely distribution of quality products. The production of
let -Al has been enhanced to meet the total demand of Northern Areas.
Previously, the product was transferred from Karachi to Islamabad. The Refinery
nameplate capacity is 35000 bpd and it refines all local crude produced in the
Potohar and Southern region of the Country. ARL's operation team has recently
taken a challenge of the commissioning of two newly installed plants, i.e. 10000
BPD Heavy Crude Unit and 5000 BPD Catalytic Reformer. These are running on
commercial production within the schedule time thus proving that ARL
Operations team can take the future challenges and will keep a high standard of
professional dedication. The different variety of crude oil being processed at
Refinery gives a unique and vast experience for its operations team.



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(1) Fire & Safety Section. The role of Fire,& Safety section is auditing
and training for safe operations of plant machinery and personnel. Fire &
Safety section identifies and appraises the accident problems, develops
accident prevention and loss control procedures, communicates these
procedures and information to relevant departments and finally measures the
effectiveness of these controls to report in monthly Safety Committee
meeting as feed back for improvement. There are regularly scheduled Safety
Committee meetings headed by "the Chairman Safety Committee and
attended by all concerned Managers or their deputies. These meetings are
minuted, as follow-up is required for action items. The Refinery has an
excellent loss prevention record. Current Fire brigade strength is six men per
shift with an auxiliary back up of two men during morning shifts. Each shift
has the responsibility of maintenance of fighting equipment at Fire
Station. Besides each shift has responsibility for maintenance of equipment
in certain area of Refinery. Company has recently employed young
qualified Fireman and they undergo regular training along with other staff.
A purpose built training ground is prepared for basic live fire practice.

d. Planning & Development Department. It is our mission to plan and execute
the projects with highest degree of skills as per international standards keeping in
view Company's long-term plans, Government incentives and National economics.
The prime objective of P&D Department is to ensure timely completion of
assigned projects. The department handles the Process Engineering issues of new
projects and coordination for developing and compiling documents for new
projects. It is directly involved in the budgeting process of projects, vetting of cost
estimates, Design Basis, Reviews of process design proposals and assistance in
commissioning of new plants. The P&D department ensures at the planning stage
that all necessary activities have been carried out for allocation of funds. The
department coordinates with Engineering department for activities leading to
signing of contracts, bids evaluation and preparation of contracts.


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e. Sales Department. The Sales and Commercial Department manages the sales
activities of all the products produced by the Refinery. The activities are carried
out to sustain Refinery production through uninterrupted sales of products
according to sound^ sales practices while maintaining a close relationship with
customers and, provision of good customer services. The Sales Department suggests
changes in the sales price of products. The department also maintains liaison with
OMC's and assist them on demand / supply pattern and assists the oil marketing
companies in after sales service. The department maintains close liaison with the
Operations Department & Technical Services Department and obtains sales targets
for each month and forward complaints from customers regarding specification of
products. The department prepares and submits statements of uplift of products to
OCAC, Government agencies and Excise Department as per their requirement. The
record are also maintained of Government levies and account of Marketing
companies and the Finance Department are advised of the amounts required towards
payment of Government levies on the sale of products.

f. Technical Services Department. It is our mission to provide prompt Technical
Services of highest professional standards to our customers by acquiring latest
knowledge, skills and tools. To take correct, timely and sustainable decisions. To
improve teamwork and efficiency, free and smooth communication at all levels and
locations shall be established. To act as pace setters, every team member shall strive
for continuous improvement in specific field of specialization and shall be
empowered to take technically sound and economically viable decisions at the right
time. Technical Service Department (TSD) has a multifunctional role in the Refinery.
Apart from providing all type of technical assistance to the Management, Technical
Services assists in formulating operating policies, cost controls, production
planning, quality control, pricing of crude and products and environmental
monitoring with a view to improve overall Refinery Profitability. Technical Services
provides assistance to Operations staff in detailed analysis of operational problems


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and gives suggestions on operation parameters for different modes of operation.
Development of detailed process design for additions, modifications and revamp,
debottlenecking / evaluation of existing process equipment to improve efficiency,
reliability, reduce operating costs and identify operating constraints, is carried out.
Preparation of reports in case of operational mishaps, identifying underlying causes and
giving suggestions for future improvement are also carried out. Engineering
softwares such as HYSYS, PIMS
;
ESI etc are utilized for assisting in meeting the
aforementioned assignments. Technical Services is also responsible for the
preparation of various production, reports, including budgetary production for
own' requirements and for government agencies, (based on the analyses of
expected crude receipts and sale of products) in coordination with Operations and
Sales Department. Regular meetings with the Producers are held to review the
current and long-term crude oil projections. Energy and environmental audits,
analysis of data/results along-with recommendations for improving energy efficiency
and environmental compliance to NEQS, are carried out by TSD. Constant review of the
Refinery Margins, study and advice on possibilities of improving Refinery economics
including pricing of crude and products is carried out. Technical Services also
liaisons with outside agencies such as Ministry of Petroleum and Natural Resources,
Oil Companies Advisory Committee, PIP, PSI etc. and consultants such as UOP,
CIDA etc. TSD activities also- includes planning of long-term projects and preparation
of feasibility reports for new projects.
(1) Laboratory. ARL has an ISO-9002 certified laboratory situated inside
the Refinery. ARL's Laboratory is the first in the refining sector to achieve
ISO certification. Laboratory is part of the Technical Services
Department. The Laboratory tests all crude coming to the Refinery and
certification of quality of all products dispatched from the Refinery. It assists
the Sales Department in resolving any issues with the customers on product
quality. Apart from the routine testing the Laboratory is also engaged in
activities such as crude analysis of new crude for suitability of processing,
development of value added products, testing for trouble-shooting at the process


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units to meet required specifications, assistance in adjustment of operating
conditions, R&D on chemicals being used in different products,
environmental testing for compliance with NEQS etc. A very important
function of the Laboratory is Research and Development activity which is
targeted to benefit the Refinery operations in particular and National level
in general.
g. Attock Hospital (Private) Limited. In September 1998, board of directors of
ARL made a decision to setup hospital known
as Attock Hospital (Private) Limited in the area of Attock Refinery Limited for
general welfare and health care of people living in the surrounding area in general
and employees of AOC Group in particular. The Attock Hospital (Private) Limited
(AHL), a subsidiary of ARJL, provides medical facilities to the employees and
their families. The hospital is operating on a 24-hours basis. Medicines are
available to the employees of ARL and their families free-of-cost from the
pharmacy. Specialized treatment alongwith laboratory facilities with enhanced range
of medical tests are also provided. The hospital also provides emergency and general
treatment to the people of surrounding areas. Indoor hospitalization is available to
Non-Management Staff, Junior Management Staff and their families and Private
patients also. The management is in the process of expanding to include advance
diagnostic facilities. These objectives will be achieved in phases and as a measure
of first phase laboratory facilities have been enhanced, specialists in the field of
ENT, Gynecology, obstetrics pediatrics, medical, skin and surgical have been
introduced in out patients department. The above facilities have been extended for
general public also. Soon the hospital will be .equipped with the latest Ultrasound
and a sophisticated x-ray .plant.
1
It is planned to have a small Operation Theater
in the present premises to cater for emergency and surgical need of the employees
and their families as well as for general public at affordable rates.



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Human Resource Department.
To aim of Human Resource Department is to ensure that our customers get quality and unparalleled
services to satisfy their needs. This will be achieved through improving productivity continuously; ensuring
recruitment and retention of high quality professionals, providing opportunities to build their careers, evolvi ng and
implementing training and development plans. HR department will strive to protect company's land and property,
develop and implement assertive industrial and social policies and utilize company resources optimally by using the
latest technology and adopting modern HR practices. Over the years, Attock Refinery Limited has experienced
growing diversity of the workforce. The stock of technical knowledge and skills embodied in the Refinery's
manpower results from investments in formal education and on-job trainings. The Human Resources has been
playing a pivotal role in ensuring employment of right men for the right jobs at the right time which are based on
merit. At the Human Resources, the management has been putting on every effort to portray ARL as an ethical and a
socially responsible organization.

The Human Resource Department has been in the forefront in providing skilled
workforce to progress in its multifaceted, fast-paced and highly developed industry. Keeping in
view the importance of growing industrial needs, the ARL management has given major
emphasis to training, coaching and development of its employees in all disciplines. Also, the
ARL management has focused on career progression of the' employees. The recognition of
employees serves as an incentive and has a profound effect on the level of motivation and loyalty
to the company.


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CHAPTER - 3




PRODUCTS & SERVI CES OF ARL






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PRODUCTS
Product Specification:
The Attock Refinery Limited produces the full range of petroleum products:
o Liquefied petroleum gas (lpg)
o Petroleum solvent grade 45/120
o Naphtha
o Unleaded premium motor gasoline (pmg)
o Mineral turpentine (mtt)
o Jp-1
o Jp-8
o kerosene oil
o high speed diesel (hsd)
o light diesel oil (ldo)
o jute batching oil (jbo)
o furnace fuel oil (ffo)
o low sulfur fuel oil (lsfo)
o residuel furnace oil (rfo)
o Paving grade asphalts
o 1 - grade: 80/100
o 2 - grade: 60/70
o Cut back asphalts
o 1 - grade mc-70
o 2 - grade rc-70
o 3 - grade rc-250
o polymer modified bitumen (pmb)


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EXPORT PRODUCTS
Following products are available for export:
o Export Naphtha
o Low Sulfur, Low Benzene, Low Aromatics Petrol 87 RON as per Pakistan
Standard Institution Specifications
o JP-8 MIL-DTL-83133
o Kerosene Oil as per Pakistan Standards Institution Specifications
o Bitumen Grade 60/70 and 80/100 as per AASHTO M-20 specifications
o Low Sulfur High Speed Diesel (HSD) as per Pakistan Standards Institution
Specifications
o Winterized Diesel
SERVICES
The Quality Control Laboratory (QCL) of ARL is the first laboratory in the oil-refining sector of
the country to achieve the coveted ISO 9002 accreditation. This land mark achievement was
accomplished in May 1999 through completely indigenous efforts of our highly professional
QCL team. However, ISO 9002 certification is but only a small step towards our commitment to
provide analytical services of highest order to our customers.
Quality Control Laboratory of ARL has been awarded ISO/IEC 17025:2005 Accreditation by the
Pakistan National Accreditation Council (PNAC), Ministry of Science and Technology,
Government of Pakistan on October 4, 2007, thereby becoming the first and the only laboratory
in the oil & gas sector of Pakistan to achieve this distinction.
ISO/IEC 17025:2005 Laboratory Accreditation is the criteria for laboratories to demonstrate the
technical competence to carry out specific test methods, generate valid internationally traceable
calibration data, test results, and operate an effective quality system. This accreditation, thus,
gives ARLs Laboratory an international standing equivalent to any of the international
laboratories of repute.


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CHAPTER - 4



SWOT ANALYSI S OF ARL







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SWOT ANALYSIS

Where there is a company in operation it has to work in two kinds of environment i.e.
The external environment and
The internal environment of the company.

For a company to avail maximum and avoid maximum, it has to know what it has to avail
and what it has to avoid. The external environment has to be scanned by the management for any
arising opportunities or any critical threats. The resources of a company constitute its strengths
and weaknesses.
External factors are broadly categorized into;
Economic forces
Social, cultural, demographic, and environmental forces
Political, governmental and legal forces
Technological forces
Competitive forces etc

Internal factors are broadly categorized into;
Marketing strength of firm
Financial/Accounting resources
Management
Computer information system
Production/operations etc



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Benefits of 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:
INTERNAL ANALYSIS
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.
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


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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.
EXTERNAL ANALYSIS
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.
COMPETITORS
Pakistan refinery limited
National refinery limited
Pak-Arab Refinery Limited
Byco Petroleum Pakistan Limited




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ORGANIZATIONAL STRUCTURE OF ARL


CEO


Deputty. General
Manager


Asst. General
Manger


Senior Manager


Manger


Deputty.
Manger


Asst. Manger


Senior Executives


Executives


Senior officer


Junior officer




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CHAPTER - 5



STRATEGI ES & HR POLI CI ES OF ARL













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MARKETING STRATEGY
Companys strategic plans include enhancement of its refining capacity and production of better
and more environment-friendly petroleum products to maintain and expand its market in line
with the growth and expansion strategy.
COMPETITIVE STRATEGY
ARL takes pride in the edge it enjoys over its competitors in respect of efficiency, lower
operating cost, high quality human resources, reliability and introduction of newer generation
technologies. The Company is actively engaged in diversification of its operations within the
energy sector which includes the white oil pipeline project.
CUSTOMERS
ATTOCK PETROLEUM LIMITED (APL)
PAKISTAN STATE OIL COMPANY LTD.
SHELL PAKISTAN LTD.
CHEVRON PAKISTAN LTD.
TOTAL PARCO PAKISTAN LTD.
HUMAN RESOURCE POLICIES
ARL Corporate policy on human resources is to attain the highest standards of professionalism
throughout the organization
by recognizing and revealing individual capabilities, productivity, commitment and contribution.
ARL firmly believes that the continued progress and success of the Company depends upon to a
great extent on its
personnel - that only with a carefully selected, well trained, achievement orientated and
dedicated employee force, can the
company maintain its Leadership in the Refining industry.
And because the most valuable asset of the company is its personnel, ARL has the following
human resource policies:


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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.







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CHAPTER - 6



HR PLANNI NG & J OB DESCRI PTI ON












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HR PLANNING AND JOB DESCRIPTION
(RECRUITMENT CRITERIA)

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.
a. Identifying and acquiring right kind of human resource
b. Motivating them to achieve excellent performance
c. Creating interactive links between employee goals and business goals.

1. HR Planning in Attock Refinery Limited
HR planning in Attock Refinery Limited consists of the following activities:
a. 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.
b. 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.
c. 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


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goals. This motivation is based on various policies which are described in detail in
the chapter related to motivation.

2. 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 genera 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
Designation Grade
Department
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
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)


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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









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CHAPTER - 7



RECRUI TMENT & SELECTI ON I N ARL









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RECRUITMENT AND SELECTION IN ARL

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

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.

Objective of Policy
To provide experienced & skilled manpower, both for management as well as non-
management positions, as per the requirements of department(s).

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.
(2) SE (HR) fills the Personal Requisition Form and sends to initiating
department.
(3) Initiating department fills the PRF and returns it to SE (HR).


32

(4) SE (HR) sends the PRF to the M(HR) for onward approval of CEO.
(5) After the approval of PRF, SE (HR) prepares the advertisement (Ad)
which is approved by M (HR) / CEO
(6) Once draft ad is approved it is sent to SE (PR) for the preparation of
sample ad through Ad Agency
(7) SE (PR) returns the sample ad to SE (HR) for proof reading
(8) SE (HR) does the proof reading and sends the final ad for CEO approval
through M (HR)
(9) Upon approval of the ad, SE (HR) sends the ad to SE (PR) for publication
in the newspaper as advised by M (HR)
(10) 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.
(11) These applications are entered into the database and a number is allotted to
each.
(12) SE (HR) prepares the list of applications and sends it to the concerned
departmental manager.
(13) The concerned departmental manager sends back the list of short listed
candidates according to their requirement criteria.
(14) SE (HR) sends the interview call letters to the short listed candidates along
with Employee Information Form.
(15) The interview panel takes the interview and analyzes the candidate and
fills out the Interview Rating Sheet accordingly. For contract employee
Interview Rating Sheet (See Anx A) is filled.
(16) In case of Management Trainees Interview Rating Sheet (See Anx A) is
filled.
(17) SE (HR) prepares the Candidate Comparative Statement from the
interviewing rating sheets and sent to CEO along with Employment
Recommendation Form, through M (HR).


33

(18) In case CEO wishes to interview the candidate, this is arranged as per the
instructions of CEO Secretariat.
(19) 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.
(2) These applications are entered in the database and a number is allotted to
each.
(3) After receiving the application SE (HR) contacts the applicant by phone or
email or by sending a call letter along with Employee Information Form.
(4) SE (HR) follows the same procedure as described above.
ORGANIZATIONAL CHART OF H.R. DEPTT.
Human Resource
deptt.
Training &
Development
Staff Affairs
Time office
System &
organizational deptt.
Recruittment
Adminstration
Security
Administration
(offices, clubs &
colonies)
Land legal issues
Public Relations
HR & ADMIN DEPARTMENT



34

WORK DESCRIPTION:
I have learn lot of things in that organization, some basic things which help me are given below
Personal experience in organization:
It was a tremendous experience that I have availed with devotion and commitment. But one thing
Here I am sharing some of my learning regarding my internship in different sections of Human
resource department.

First I met Mr. Sagheer HR representative of ARL. Who introduce me with all kind of
functions performed by Staff Affairs.

Making of History Sheets of Employees working in ARL.

In this task I have to make History Sheets on Microsoft Word in which I have to
summarize all the data of employees.

I learnt about that how they perform appraisal of their employees through Management
Personnel Targets Appraisal


Understanding of Check list for New Joiners in ARL.

In the last week of internship they have rotated me in different sub departments of H.R &
Admin.







35





CHAPTER - 8



TRAI NI NG & DEVELOPMENT I N ARL











36

TRAINING AND DEVELOPMENT

Introduction
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 which are as under:
a. In house courses
b. In country courses
c. Overseas courses

Training Need Assessment
Senior executive officer (training and development). Sends Management Staff
Training Need Assessment Form (see in anx A) to department manager for assessment
purposes of the employee to be sent for training etc. This form is returned to DMC after
completion.

Definitions
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.
APO: Asian Productivity Organization.
OMS: Outlook Messaging System


37

SE (T&D): Senior Executive (Training & Development) .
LAN: Local Area Network.
M (O): Manager (Operations)
SM (TS&E): Senior Manager (Technical Services & Engineering)
AGM (FP&MM): Assistant General Manager (Finance, Procurement and Material
Management).

Responsibility
M(HR)/AM(HR) is also responsible for implementation of this work instruction.

Explanation of Courses in Detail
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.

In-House Courses.
(1) Various organizations, companies, institutions and consultants send their
brochures, flyers, and booklets to ARL, which finally reach MDC.
(2) 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.
(3) SE (T&D) sends the case to M (HR) through AM (HR) for approval by
CEO.
(4) M (HR) approves it or regrets it.
(5) In case of approval from CEO the concerned company / institution etc are
informed of the decision and details are finalized by MDC staff.
(6) SE (T&D) sends Internal Memorandum to all the departmental head for
the nomination of participant, giving details of the course.
(a) Departmental Head nominates the person from his department.


38

(7) SE (T&D) sends the copy of the memorandum to AGM (FP&MM), I/c
(Admin) for necessary actions..
(8) SE (T&D) may also inform the participants about the course through the
QMS.
(9) SE (T&D) makes sure that all arrangements are completed for the course
as per the Checklist for In-house Course,
d. In Country Courses
(1) Various organizations, companies, institutions and consultants send their
brochures, flyers, and booklets to ARL, which finally reach MDC.
(2) MDC suggests the names of the staff for the course after consultation with
the respective departmental head.
(3) After the recommendation from the departmental head, AM(HR) / SE
(T&D) sends the case to CEO through M(HR) for approval.
(a) CEO approves or regrets the course.
(4) Departmental head also receives the information about the courses,
conferences & seminars. They sometimes directly send the case to CEO
for approval.
(5) CEO approves the case and sends, it back to MDC for further action.
3.4.5.1 If the case is not approved, SE (T&D) files the case.
(6) In case of approval from CEO, SB (T&D) contacts the concerned
company and finalizes all the details.
(7) SE (T&D) sends the course confirmation through Internal Memorandum
to the departmental head and nominee.
(8) SE (T&D) sends the*copy of the memorandum to AGM (FP&MM), I/c.
(Admin) for necessary actions.
(9) SE (T&D) may also inform the nominee and departmental head through
the OMS.
(10) SE (T&D) makes sure that all arrangements are completed for the course
as per the Checklist for In-Country Course.



39

e. Overseas Courses
(1) Literature for overseas courses reaches MDC through various sources.
Most significant of these are JCCP and APO courses.
(2) SE (T&D)/AM (HR) propose the names of the staff members for the
course after consultation with the departmental head.
(3) SE (T&D) arranges for a TSC meeting to prepare final recommendation
for nomination of staff members for overseas courses.
(a) TSC comprises of SM (TS&E), M (HR), M (0), M (M) AM
(Acct) and AM (HR).
(b) Proposal contains the details of all the courses already attended
by the nominee proposed.

(c) Training budget is also taken into account for the proposal
(4) 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.
(5) After the approval of the CEO, SE (T&D) sends the nominations to the
hosting country through e - mail/Fax.
(6) 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.
(7) SE (T&D) informs the nominee and departmental head through the OMS.
(8) Refer to the procedure Communications for more details about the OMS
or visit site ii(tp://rwp01/exch
(9) 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.
(10) Every participant signs a surety bond (on Government of Pakistan Stamp
Paper of Rs. 100) before leaving for course.


40

(11) SE (T&D) makes sure that all arrangements are completed for the course
as per the Checklist for Overseas Course.
(12) Participant after attending the course delivers the, presentation about his
learning and experience of the course to his colleagues at MDC.

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

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











41





















42





CHAPTER - 10



PERFORMANCE APPRAI SAL











43

PERFORMANCE APPRAISAL

Introduction
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.

The detail of the performance appraisal policy is as under:

1. 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.

Objectives
Performance appraisal of the Management Personnel is designed to meet me following
objectives:
a. To assess and improve current performance of me Employees over a pre-
determined period of time.
b. Determine realistic salary increase and promotion to higher position based on
performance.
c. Facilitate career planning of me Employees.
d. Document the performance to satisfy administrative and legal requirement.
e. To create improvement and target oriented culture in me Company.

f. Identify the strengths and weaknesses as they bear on job-related performance and
potential.
g. Determine training and development needs of the Employees.



44

2. Application of Policy
The Manager Human Resources will be responsible for the application and
implementation of this Policy. He will ensure that the Management Personnel are evaluated in
the prescribed (FORM-A, B & C in AnxA) in accordance with the provisions of this Policy.

Who Should Appraise
Performance Appraisal will primarily be the responsibility of the immediate Supervisor
to whom the appraisee reports.

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 ratings are expressed numerically according to the following scale of
values:
Performance Rating Scale Performance Rating Category
1 Outstanding
2 Good
3 Above Average
4 Average
5 Below Average

2. Overall Performance Rating Categories
In establishing the overall performance levels of the Management Personnel, the
appraiser will be guided by the following five Rating Categories in which their performance is
subdivided for salary and promotion planning purposes:
a. Rating Category 1 Outstanding. The employees rated in this category
excel in all important aspects of their work. They are conspicuous performers in
terms of originality, initiative, assertiveness, versatility and soundness of


45

judgment. They require a minimum of supervision and follow-up reviews. They
clearly exhibit the capabilities to advance to much higher levels of responsibility
demanding broader and diversified qualities.
b. Rating Category 2GOOD. These employees excel in most important
aspects of their work. In their particular areas of strength, they would be at par
with rating category 1 employees, but they would not Save the versatility of me
"Outstanding" employee. They are, of course, less clearly distinguishable from
rating 3 (above average) performers than "Outstanding" employees. Typically, the
"good" employees would exhibit one or more of the following qualities:
(1) Is an innovator. Instead of accepting the established way, he improves on
it
(2) Has an unusually quick grasp of the ideas of others and the vision to assess
their workability and cuts through the core of a problem without being
diverted by irrelevant and the non-essentials.
(3) Is more man ordinarily dependable and is often singled out by his
supervisor for more important or difficult assignments.
(4) Plays a key role in motivating and helping others and is viewed by his
associates as a source of counsel, guidance, constructive opinion and fresh
ideas.
c. Rating Category-3 ABOVE AVERAGE. The employees in this
category excel in some important aspects of their work. They are fully qualified
and wholly competent and produce quality results in me allotted schedules. They
may or may not appear to have the potential to advance to mere responsible
position.
d. Rating Category 4-AVERAGE. All those employees who are able to meet
average standards as to most job requirements but are deficient in some important
respects may be rated in this category. This deficiency may be a specific
weakness in the execution of a particular part of the job or it may be a general
level of performance which barely attains the minimum standards of quality /
quantity.


46

e. Rating Category 5-BELOW AVERAGE. Employees rated in this
category ace those, whose work is unsatisfactory. Ordinarily these employees may
not be retained indefinitely and are liable to be terminated after being given
reasonable opportunity to attain a satisfactory work standard.
3. Mixed Appraisal System Based On Targets And Personal Dimensions
a. It has been considered appropriate to adopt mixed system of appraisal partly
based on targets and partly on dimensions. The main objective of assessing the
performance of an employee on the basis of targets is to improve his current
performance and to facilitate bis pay increase. In addition, me management also
needs to know deficiencies in me performance of an individual so as to help him
make up such deficiencies and also to improve his potential for promotion.
b. Before the beginning of the year, the employee should be asked to work out what
targets he would like to achieve during the ensuing year. The targets should be
specific, challenging, achievable, verifiable, quantifiable and capable of being
documented, it is advisable, though not necessary; that, as far as possible, the
targets are based on or are directly related to performance areas of the job as laid
down in the job description of the employee. The targets after being formulated
should be submitted to the Section Incharge / Head by due date, who would
discuss them with the employee and give them final shape. The Section
In charge/Head or the Department Manager may amend, vary or reverse the
targets in consultation with me employee concerned which shall be finally
approved by the Department Manager. In the same meeting the criteria for rating
and methods of verification i.e. whether me employee has achieved or not
achieved or to what extent has achieved a target should also be discussed and
finalized. Ordinarily, but not necessarily, an employee should not have more than
six and less man three targets for a year which would normally not include the
routine work.
c. Appraisal on Target
(1) The Appraisal Form "A" (Anx A) deals with me targets, which consists
of seven (7) columns. Column No.1 shall contain the performance area of


47

an employee as listed in his job description. Column No.2 shall contain
targets agreed for the year against each performance area. Column No.3
pertains to percentage weightage to be assigned to each target depending
upon its significance, which may vary from each other. However, weight
age is to be distributed in such a manner that me total percentage for all
the targets shall be 100%. Column No.4 deals with verification criteria for
each target.
(2) In Column 5, me outcome of the target achieved with reference to
verification criteria shall be indicated, m Column No.6, the rating earned
by me employee against each target achieved shall be mentioned
numerically in terms of the performance category i.e. Outstanding, Good,
Above Average, Average and Below Average as the case may be.
(3) In Column 7, the Net Result of the Weightage and Rating earned shall be
mentioned with me total rating points to be added on achievement of
targets. In order to work out me rating category of employee in term of
achievement of the target, the following formula shall be observed:
{(Weightage% of Target 1 X Ratiag of Target 1 + Weightage% of Target 2 X Rating of
Target 2 + Weightage% of Target 3 X Rating Target 3 + Weightage% of Target 4 X Rating
of Target 4 + Weightage% of Target 5 X Rating of Target 5 + Weightage% of Target 6 X
Rating of Target 6)} - 100 = Weighted Average Rating
OR
(Wi%*&t+Wt%*RyW3%*R^W%*R<+Ws%*Rs+W(%*R<) 100 = Weighted Average
Rating
d. Targets and Dimensions Appraisal Record. In most cases people forget
important events taking place during the year. They are normally influenced by
the most recent occurrences while appraising performance of me whole year. To
make up this deficiency and to provide reliable evidence before me Committee to
be constituted for reviewing the appraisals, every appraiser "shall maintain a
performance appraisal record sheet for each employee as per Form B. (Anx A)
e. Appraisal on Job Description and Personal Dimensions. The Appraisal Form


48

"C" (Anx A) has been designed on the basis of job description and personal
dimensions. It contains 16 performance dimensions out of which 8 concern the
job description and 8 are relevant to the personal dimensions. Each dimension has
(5) degrees. The appraiser should tick the degree of each dimension, which he
considers appropriate to the performance of an individual. In most cases help may
be' taken from me performance of an individual in relation to me targets. For
example, if a person has achieved all me targets, it could mean mat he is excellent
on the dimension of "Tenacity" because without vigorously pursuing the targets,
it would not have been possible to achieve all the targets. In some cases, help may
be taken from the "Appraisal Record" to be maintained by every appraiser for
recording important events in me performance of the employee, he is supposed to
appraise during me year. Reliance on tangible target on me events recorded m me
Appraiser Record while appraising me performance of an employee on me basis
of performance dimensions will make the final result more objective. The total
points given to the dimensions rated shall be calculated on me basis of the
criteria/formula given on the front page of Appraisal Form C (AnxA). The result
of the same will be the score on dimensions.
f. Appraisal Rating Criteria. The final appraisal rating shall be the rating of
appraisal on the basis of targets and the rating on me basis of dimensions. The
targets Form A (Ans A) have been assigned weight age of 30 % rating and the
personal dimensions Form C (anx A) have been allocated 70 % rating. The net
effect of these two ratings would be the final performance assessment of an
employee for the appraisal year.
g. Performance Review by Department. The appraisal when completed by the
Appraiser shall be reviewed by the Officer next higher in hierarchy / Department
Manager who may vary or amend the rating in consultation with the appraiser.
h. Final Review / Assessment by Appraisal Committee. Finally, an Appraisal
Committee constituted by the Chief Executive Officer shall review me appraisals.
The Department Manager concerned when required shall justify the assessment.
The committee may call for such further evidence as it may deem appropriate and


49

may approve or amend the rating. Review of appraisal by the said Committee will
provide greater validity to the assessment and minimize the chances of
subjectivity to a greater extent.
i. Performance Review Meeting.
(1) The appraisal shall be discussed with the appraisee who may record his
views, if any, at page vi of Appraisal Form C. (Anx A). Before
discussing the subject with the appraisee, he should be told that the object
of the appraisal is certainly not to pass judgement on his characteristics or
qualities. The idea is to help him develop and grow as an important
member of the Organization. He should, therefore, not mind pointing out
of any deficiency in his performance but should willingly accept me same
as the deficiency could be made up only when it is accepted.
(2) The appraisal form contains a provision for recording the areas in which
the employee needs training or development by any other method such as
counseling, job rotation and special assignments etc. The appraiser should,
therefore, record his views in this connection at page vii of Appraisal
Form C (AnxA).
j. Minimizing the chances of subjectivity
(1) The main weakness of employees' performance appraisal is that it is
highly prone to subjectivity i.e. the final rating of the appraisal is generally
biased by me subjectivity of the appraiser. This is true because the
appraiser and the one whose performance is appraised are human beings.
Emotionalism and prejudice are some of the inherent characteristics of
human nature. It could, therefore, be impossible to eliminate the influence
of subjectivity from the process altogether. But methods can be evolved to
minimize the scope of subjectivity. For example, the chances of
subjectivity affecting appraisal will be reduced by say 25% if the
dimensions are appraised in terms of actual performance. The chances of
subjectivity affecting appraisal will be reduced by another 25% when the
performance is partly appraised on the basis of verifiable targets. This will


50

make the appraisal more transparent. There will be further reduction in the
chances of subjectivity by another 25% if the appraisal is finally reviewed
by an Appraisal Committee which will be empowered to call for necessary
evidence or proof in respect of each rating and to amend or vary the same.
The chances of subjectivity affecting appraisal will be reduced by another
10% if it is impressed upon the appraiser and the appraise, that the
predominant object of performance appraisal is certainly not to pass
judgment on one's qualities. It is to help him develop and when an
employee is developed it could be beneficial to both the employee and the
Company. The chances of subjectivity affecting the appraisal will be
reduced by another 10%, if the appraiser is-made conscious of some of the
following biases, which usually affect appraisal, and is advised to keep
them in mind while appraising the performance of his subordinates. With
the rest of the 5% we should live.
(a) The Halo Effect. This occurs when a rating on One dimension
substantially influences me rating on other dimensions for the
same employee. For example, when an employee is rated as good
on the first dimension, he is automatically rated as good on all
other dimensions mat follow without any regard for the actual
performance.
(b) The Error of Central Tendency. This occurs when some raters
do not like to rate weir subordinates as good or bad. In feet the
performance rating is distorted to make every one appear as
average.


51

(c) The Leniency and Strictness Bias. The leniency bias occurs
when me rater tends to be liberal in evaluating the performance of
the employees for example, giving good or excellent rating to
every one. Likewise the strictness bias occurs when the rater tends
to be too strict, for example, not giving excellent rating to any one
or giving good rating to very few.
(d) Cross-Cultural Biases. Sometimes general beliefs and
winking in a society may influence the appraisal rating
accordingly. For example, respect of elders is an integral part of
our culture and the appraiser may be lenient in appraising me
performance of an elderly subordinate just because of this feet.
(e) Personal Prejudice. This occurs when just personal likes or
dislikes distort the appraisal rating. Ratings are affected,
sometimes strongly, by the most recent incidents especially when
the employee is rated on the basis of personal traits.
4. Guidelines for Supervisors For Performance Review Session
a. Review the specific Work Targets Vs. work Dimensions of each employee being
rated before starting to use the Appraisal Form. In this review cover me full span
of the rating period.
b. To build employees' faith in the appraisal, complete explanation should be given
by the appraiser about me rating system used. First show the appraise a blank
rating sheet which lists down the factors of performance against which he has
been rated.
c. Explain the five performance categories and the prescribed areas of performance
of each category.
d. After offering me above explanation, the appraiser should turn his attention
towards the man's own rating and explain to him his performance evaluation.
Here appraiser must recognize mat the signals appraisee receives from appraiser
about his assessment have a strong impact on his self-esteem and on his
subsequent performance. Since performance appraisal touches on one of the most


52

emotionally charged activities in business life, me APPRAISER has got to handle
this part of discussion extremely carefully in order mat the employee does not
leave me room with a feeling of frustrated hopes man amity, and more dissention
than improved morale. Appraiser's attitude in me performance review is,
therefore, more important than his words. If appraiser is natural and objective and
if the employee feels that appraiser is also trying to be helpful, he is unlikely to be
anxious or upset. He will tend instead to respond and enter into the discussion in
the manner of appraiser's own approach.
e. If appraiser wants me appraise to modify or change his job behavior in some way,
remember that what counts is not what appraiser might tell him in a performance
review but rather what he is able and willing to accept. A skillful supervisor leads
the employee to better sets of Judgement. An individual cannot effectively act or
change his behavior towards improving performance until he is personally
convinced of the reality and degree of his own shortcomings.
f. Here are some suggestions as to how appraiser should handle the performance
review, step by step:
(1) At die very outset do not shows the completed Appraisal Form to the
employee, .nor discuss the exact numerical rating, since this may upset
him unnecessarily? Instead, use it as your own reference point in
discussing in general terms the his strengths and weaknesses of the job
(support to the extent possible by specific examples).
(2) Start the discussion by describing the employee's job and its requirements,
explaining your expectations fronrhim towards the job. Then ask him:
"What parts of your job do you feel you do particularly well?"
"Where do you think you can make improvements?"
Then tell him your opinion about his work, considering the differences
slowly and heading him to modify his thinking.
(3) Now explain to him that appraiser has considered all the points and that in
appraiser's best judgment he is suitably rated in various performance
dimensions by showing him appraisal form without disclosing final


53

performance rating.
(4) Conclude the interview with a note to hope that the employee will show
improvements in his performance and come up higher next year.
(5) Once the review has been completed and final approval granted by the
Chief Executive Officer the copy of the appraisal upto page vii of the
Appraisal Form "C" (anx A) shall be supplied by the Human Resources
Department to the Appraise through his Department Manager.
5. Frequency and Criteria
a. The performance appraisals shall be earned out annually and reckoned from
November 1 of previous year to October 31 of next year. The minimum
qualifying period for the grant of increment will be six months of continuous
service as on December 31 of each year.
b. During the year, if an employee has performed his duties under one supervisor for
more than three months and for the remainder period of the year under another,
both supervisors will evaluate him for me respective period of time, separately.
The performance ratings of both the supervisors shall be divided by two to arrive
at the final performance-rating category.
c. Do not rate employee whose period of service is less than 6 months (employee
still on probation) to permit formulation of a reasonable rating judgement.
d. In exceptional cases where targets cannot be given to the Management Staff in a
year, the appraisal shall be carried out on the performance dimensions Form C
(Anx A) only.
e. Each year, during the first week of October, the Human Resource Department will
send 'Appraisal Form' to die Department Heads in proportion to the number of
Management Staff working in each Department.
f. The Appraisal Rating Form will be filled by the Line Supervisor latest by
November 15 and reviewed by the Department Manager by or before December
1.
g. The Department Manager, after reviewing the appraisals may complete his own
rating of the Section mcharges / Heads reporting to him.


54

h. Department Manager shall send the Appraisal forms duly filled / reviewed to
Human Resource Department latest by December 10 for review / assessment by
the Appraisal Committee. In the event of disagreement of the Committee, wholly
or partially with any appraisal, the Committee will discuss with the Manager
concerned in which case the view of the Appraisal Committee shall prevail.
i. The Committee will analyze its review not hdser man January 20
111
along with
the final approval from the Chief Executive Officer for increase in salary or
promotion to higher grade on merit Chief Executive Office, where he considers
just and proper may decrease the appraisal eating at his own discretion without
assigning any reason. However, in case of enhancing the performance rating of
any appraisee, me Chief Executive Officer may do so in consultation with the
Appraisal Committee.
j. Based on the approval accorded by me Chief Executive Officer, formal letters of
merit increase in salary or promotion to next grade will be issued to me
employees concerned with copies to Finance Department
k. Merit increment will be over and above me normal increment and will be at the
discretion of the management

6. Modification
The Management may review me policy or alter any of its provisions from time to time
as the circumstances may warrant.

7. Implementation
This Policy will come into force for all practical purposes with immediate effect


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PRACTICAL STUDY
For the completion of my internship at Attock Refinery Limited I have to do a practical study on
the career development in ARL.This task was assigned me by Sajid Husain (Executive Human
Resource).
CARRER DEVELOPMENT IN ARL
Career development in ARL is done by succession planning & career management
committee. They always seek for potential Successors.
They are always 2-3 for any vacancy available. For this purpose they develop Individual path
development plan. In this they do
Job rotation,
Coaching,
Mentoring
Generally there are 3 successors selected for a vacant position. First it is recommended by the
head of department that which employee is to be promoted, and then committee is asked
committee is usually consulted in critical situations. Then approval is made for promotion of an
employee. Then a plan is made. Road map is made (individual development plan) by formal
training, classroom training or any other IT skill education is given for the purpose of training
TIME REQUIRED
It depends upon the performance of employees. Usually it is done annually as once in a year.

REQUIREMENTS OF PROMOTION
Qualification & experience both are needed for the promotion. Neither qualification nor
experience alone can promote employee. Both are equally needed. Sometimes this requirements
varies due to nature of job
PROBABILITY OF PROMOTION
There are two extremes either employee will be promoted or he will be not



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TRAITS
Traits which are needed for promotion are as follows:
Job knowledge
Efficiency orientation
Lanning & organizing
Decision making
Developing people
Safety consciousness
Communication skills
Leadership skills
Initiative
Problem solving skills
Team spirit
Interpersonal skills
Adaptability
Innovation
Tenacity
DEVELOPMENT TECHNIQUES USED
Development Techniques that are used in ARL are as follows
Job rotation
Coaching
Mentoring
Counseling

Job Rotation is considered as the best development technique which is used widely in
ARL for development.
DESIGNING OF CAREER PATH GOALS
Career path goals of all the employees are defined by the career management committee.



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ROLE OF INDIVUAL IN CAREER DEVELOPMENT
Individual himself Play an important role in career development. It can be determined by how
much he is responsible for the tasks. It can also be determined by
Head of department see if he is considering or not
Committee also observe how much he is facilitating

















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ANALYSIS

The role of H.R Department is very effective and positive for every organization if the
Department is performing efficiently. There is a proper procedure of employees development
and promotion. Training opportunities are also provided to all staff members equally.
The tasks assigned to me are very helpful in enhancing my technical skills as well as
interpersonal skills. I learned a lot about the Organizational Culture, structure of the organization
Through my observation I experience & learn the working and dealings of the ordinates with
their subordinates.
During my internship I tried my best to perform well, my three primary strengths are, I have the
ability that I got adjust in any new environment easily, in a very short span of time, this helped
me a lot in learning different behaviors in work environment. My 2nd strength is my good
communication skills. And my last strength is I have leadership qualities, I like to lead while
working in any kind of environment. I would like to improve my computer skills. I can do things
in different ways, for example I can motivate my co workers by using different tactics. I enjoyed
working at ARL,as my supervisor was very supportive and corporative, he helped me a lot
during my internship. I also got opportunity to take a tour of inside refinery area.
, I have worked on sick leaves, different types of allowances offered to the workers. As I have
given a task to analyze the career development process of employees working at ARL. I have
also worked on the HUMAN RESOURCE MANAGEMENT SYSTEM (HRMS), for this
purpose the organization have its own software have worked on different sections of HRMS
including recruitment, employee, promotion/increment, training, appraisal, subsystems and
reports. I have made ARL history sheets, which contains department wise strength details of
regular management staff.
I have also worked on leave record of trainees, current employees and those who left.
I have maintained the history record of trainees and contract staff.
GRATUITY FUND
Yearly a certain percentage of the basic salary is deducted and will be given to the employees,
when his/her job is completed/expired, that gratuity fund will be given to them.


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For increasing the morale of the employees, the HR department, uses the greeting card system
(GCR), through which birthday cards & eid cards are sent to the employees. This methodology
attracted/inspired me a lot.
Beside the though routine of the employees, ARL is also facilitating its employees by arranging
all such activities in MORGAH CLUB , through which the employees feel motivated and more
devoted towards their work.

While doing practical study on the career development process, most of the textbook knowledge
is used, it helped me a lot, in accomplishing my task.

These all learning will help me a lot in the future as an H.R professional.
The proper and competitive evaluation of the methods and procedures adopted by other
competitors will enhance the performance of Human Resource Department. This is the era of
Information Technology. The functions and procedures of the company should be converted
from manual to the automatic. It will enhance the performance & accuracy of the Human
Resource Department and ultimately of the company. Human Resource Department should
allocate resources for this purpose.







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CONCLUSION:
Working at ARL as an internee, have given me the opportunity to learn that how to work in an
organization as a professional. It was great experience working there, I have learned a lot about
the different HR practices. How to deal with the personnel, time keeping, and management of the
attendance record of the employees

The actual working substances are the human beings .It goes with out saying that Human
resources are the most important in the organization and so does the Human Resource
Department .It integrate all the activities and functions of the company like job analysis,
recruitment, staffing, training, designing compensation package, employees appraisal system.
Human Resource Department plays the key role in the hiring, retention, motivation and
promotion of the employees .Actually it assign the specified duties to the specified persons in
this age of specialization. Human Resource manager should be well versed and confident in his
field. He/she should be humane, well natured and have go face reading capabilities .All this
ensures his/her success. He/she should be of the notion victory is not everything, but the way of
fighting is.



APPENDICES
a. Internship Completion Certificate
b. Card of EXECUTIVE H.R