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    1 Groups and Teams in OrganizationsGroups are a ubiquitous part of organizational life. They are the basis for much of the work

    that gets done, and they evolve both inside and outside the normal structural boundaries of the

    organization. We will define agroup as two or more people who interact regularly to accomplish a

    common purpose or goal. The purpose of a group or team may range from preparing a new

    advertising campaign, to informally sharing information, to making important decisions, to

    fulfilling social needs.

    1.1 Types of Groups and Teams

    In general, three basic kinds of groups are found in organizationsfunctional groups,

    informal or interest groups, and task groups and teams.

    A task group is one that is created by the organization to accomplish a relatively narrow

    range of purposes within a stated or implied time horizon. In the aftermath of the crash of the space shuttle Columbia, numerous task groups were assembled to collect debris, analyze

    information, and attempt to determine what went wrong. This team, for instance, is working on

    debris from the wreckage in a hangar at Cape Canaveral. By attempting to reconstruct sections of

    the shuttle, the team hopes to develop new methods for avoiding future disasters.


    Every organization has many different types of groups. In this hypothetical organization, a

    functional group is shown within the purple area, a cross-functional team within the yellow area,

    and an informal group within the green area.


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    2/39 Functional Groups A functional group is a permanent group created by the

    organization to accomplish a number of organizational purposes with an unspecified time horizon.

    The advertising department at Target, for example, seeks to plan effective advertising campaigns,

    increase sales, run in-store promotions, and develop a unique identity for the company. It is

    assumed that the functional group will remain in existence after it attains its current objectives

    those objectives will be replaced by new ones. Informal or Interest Groups An informal or interest group is created by its own

    members for purposes that may or may not be relevant to organizational goals. It also has an

    unspecified time horizon. A group of employees who lunch together every day may be discussing

    productivity, money embezzling, or local politics and sports. As long as the group members enjoy

    eating together, they will probably continue to do so. When lunches cease to be pleasant, they will

    seek other company or a different activity. Informal groups can be a powerful force that managers cannot ignore. One writer

    described how a group of employees at a furniture factory subverted their bosss efforts to increase

    production. They tacitly agreed to produce a reasonable amount of work but not to work too hard.

    One man kept a stockpile of completed work hidden as a backup in case he got too far behind. In

    another example, autoworkers described how they left out gaskets and seals and put soft-drink

    bottles inside doors. Of course, informal groups can also be a positive force, as demonstrated

    recently when Continental Airlines employees worked together to buy anew motorcycle for

    Gordon Bethune, the companys CEO, to show their support and gratitude for his excellent


    In recent years the Internet has served as a platform for the emergence of more and

    different kinds of informal or interest groups. Just as one example, Yahoo! includes a wide array of

    interest groups that bring together people with common interests. And increasingly workers who

    lose their jobs as a result of layoffs are banding together electronically to offer moral support to

    one another and to facilitate networking as they all look for new jobs.

    1.2 Why People Join Groups and TeamsPeople join groups and teams for a variety of reasons. They join functional groups simply

    by virtue of joining organizations. People accept employment to earn money or to practice their

    chosen professions. Once inside the organization, they are assigned to jobs and roles and thus

    become members of functional groups. People in existing functional groups are told, are asked, or

    volunteer to serve on committees, task forces, and teams. People join informal or interest groups

    for a variety of reasons, most of them quite complex. Indeed, the need to be a team player has


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    grown so strong today that many organizations will actively resist hiring someone who does not

    want to work with others.

    1.2.1 Interpersonal Attraction One reason why people choose to form informal or interest

    groups is that they are attracted to one another. Many different factors contribute to interpersonal

    attraction. When people see a lot of each other, pure proximity increases the likelihood that

    interpersonal attraction will develop. Attraction is increased when people have similar attitudes,

    personalities, or economic standings.


    As groups mature, they tend to evolve through four distinct stages of development.

    Managers must understand that group members need time to become acquainted, accept one

    another, develop a group structure, and become comfortable with their roles in the group before

    they can begin to work directly to accomplish goals.


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    1.3.1 Role Structures

    Each individual in a team has a part, orrole, to play in helping the group reach its goals.

    Some people are leaders; some do the work, some interface with other teams, and so on. Indeed, a

    person may take on a task specialist role (concentrating on getting the groups task accomplished)

    or a socio emotional role (providing social and emotional support to others on the team). A few

    people, usually the leaders, perform both roles; a few others may do neither. The groups role

    structure is the set of defined roles and interrelationships among those roles that the group or team

    members define and accept. Each of us belongs to many groups and therefore plays multiple roles

    in work groups, classes, families, and social organizations.


    Roles and role structures within a group generally evolve through a series of role

    episodes. The first two stages of role development are group processes, as the group members let

    individuals know what is expected of them. The other two parts are individual processes, as the

    new group members perceive and enact their roles.

    Role Ambiguity arises when the sent role is unclear. If your instructor tells you to write a

    term paper but refuses to provide more information, you will probably experience role ambiguity.

    You do not know what the topic is, how long the paper should be, what format to use, or when the

    paper is due. In work settings, role ambiguity can stem from poor job descriptions, vague

    instructions from a supervisor, or unclear cues from coworkers. The result is likely to be a

    subordinate who does not know what to do. Role ambiguity can be a significant problem for both

    the individual who must contend with it and the organization that expects the employee to perform.

    Role Conflict occurs when the messages and cues composing the sent role are clear but

    contradictory or mutually exclusive. One common form is inter role conflict conflict between

    roles. For example, if a persons boss says that tone must work overtime and on weekends to get

    ahead, and the same persons spouse says that more time is needed at home with the family,

    conflict may result. In a matrix organization, inter role conflict often arises between the roles one

    plays in different teams as well as between team roles and ones permanent role in a functional



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    Intra role conflictmay occur when the person gets conflicting demands from different

    sources within the context of the same role. A managers boss may tell her that she needs to put

    more pressure on subordinates to follow new work rules. At the same time, her subordinates may

    indicate that they expect her to get the rules changed. Thus the cues are in conflict, and the

    manager may be unsure about which course to follow.

    Intra sender conflictoccurs when a single source sends clear but contradictory messages.This might arise if the boss says one morning that there can be no more overtime for the next

    month but after lunch tells someone to work late that same evening. Person-role conflictresults

    from a discrepancy between the role requirements and the individuals personal values, attitudes,

    and needs. If a person is told to do something unethical or illegal, or if the work is distasteful (for

    example, firing a close friend), person-role conflict is likely. Role conflict of all varieties is of

    particular concern to managers. Research has shown that conflict may occur in a variety of

    situations and lead to a variety of adverse consequences, including stress, poor performance, and

    rapid turnover.

    Role Overload A final consequence of a weak role structure is role overload, which

    occurs when expectations for the role exceed the individuals capabilities. When a manager gives

    an employee several major assignments at once, while increasing the persons regular workload,

    the employee will probably experience role overload. Role overload may also result when an

    individual takes on too many roles at one time. For example, a person trying to work extra hard at

    work, run for election to the school board, serve on a committee in church, coach Little League

    baseball, maintain an active exercise program, and be a contributing member to her or his family

    will probably encounter role overload.

    In a functional group or team, the manager can take steps to avoid role ambiguity, conflict,

    and overload. Having clear and reasonable expectations and sending clear and straightforward cues

    go a long way toward eliminating role ambiguity.

    Consistent expectations that take into account the employees other roles and personal

    value system may minimize role conflict. Role overload can be avoided simply by recognizing the

    individuals capabilities and limits. In friendship and interest groups, role structures are likely to be

    less formal; hence, the possibility of role ambiguity, conflict, or overload may not be so great.

    However, if one or more of these problems does occur, they may be difficult to handle. Because

    roles in friendship and interest groups are less likely to be partially defined by a formal authority

    structure or written job descriptions, the individual cannot turn to those sources to clarify a role.


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    Of course, when people work together in an organization, things do not always go

    smoothly. Indeed, conflict is an inevitable element of interpersonal relationships in organizations.

    We look at how conflict affects overall performance. We also explore the causes of conflict

    between individuals, between groups, and between an organization and its environment.


    Conflictis a disagreement among two or more individuals, groups, or organizations.

    This disagreement may be relatively superficial or very strong. It may be short-lived or

    exist for months or even years, and it may be work related or personal. Conflict may manifest itself

    in a variety of ways. People may compete with one another, glare at one another, shout, or

    withdraw. Groups may band together to protect popular members or outrun popular members.

    Organizations may seek legal remedies.

    Most people assume that conflict is something to be avoided because it connotesantagonism, hostility, unpleasantness, and dissension. Indeed, managers and management theorists

    have traditionally viewed conflict as a problem to be avoided.24 In recent years, however, we have

    come to recognize that, although conflict can be a major problem, certain kinds of conflict may

    also be beneficial. For example, when two members of a site selection committee disagree over

    the best location for a new plant, each may be forced to more thoroughly study and defend his or

    her preferred alternative.

    As a result of more systematic analysis and discussion, the committee may make a better

    decision and be better prepared to justify it to others than if everyone had agreed from the outset

    and accepted an alternative that was perhaps less well analyzed. As long as conflict is being

    handled in a cordial and constructive manner, it is probably serving a useful purpose in the

    organization. On the other hand, when working relationships are being disrupted and the conflict

    has reached destructive levels, it has likely become dysfunctional and needs to be addressed. We

    discuss ways of dealing with such conflict later in this chapter.

    The general relationship between conflict and performance for a group or organization

    shows if there is absolutely no conflict in the group or organization, its members may become

    complacent and apathetic. As a result, group or organizational performance and innovation may

    begin to suffer. A moderate level of conflict among group or organizational members, on the other

    hand, can spark motivation, creativity, innovation, and initiative, and raise performance. Too much

    conflict, though, can produce such undesirable results as hostility and lack of cooperation, which

    lower performance. The key for managers is to find and maintain the optimal amount of conflict


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    that fosters performance. Of course, what constitutes optimal conflict varies with both the situation

    and the people involved.

    1.6 Causes of Conflict

    Conflict may arise in both interpersonal and intergroup relationships. Occasionally conflict between individuals and groups may be caused by particular organizational strategies and

    practices. A third arena for conflict is between an organization and its environment.

    1.6.1 Interpersonal Conflict

    Conflict between two or more individuals is almost certain to occur in any organization,

    given the great variety in perceptions, goals, attitudes, and so forth among its members. William

    Gates, founder and CEO of Microsoft, and Kazuhiko Nishi, a former business associate from

    Japan, ended a long-term business relationship because of interpersonal conflict. Nishi accused

    Gates of becoming too political, while Gates charged that Nishi became too unpredictable and

    erratic in his behavior.

    A frequent source of interpersonal conflict in organizations is what many people call a

    personality clashwhen two people distrust each others motives, dislike each other, or for

    some other reason simply cannot get along.29 Conflict may also arise between people who have

    different beliefs or perceptions about some aspect of their work or their organization. For example,

    one manager might want the organization to require that all employees use Microsoft Office

    software, to promote standardization.

    Another manager might believe that a variety of software packages should be allowed, in

    order to recognize individuality. Similarly, a male manager may disagree with his female colleague

    over whether the organization is guilty of discriminating against women in promotion decisions.


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    Conflict can also result from excess competitiveness among individuals. Two people vying

    for the same job, for example, may resort to political behavior in an effort to gain an advantage. If

    either competitor sees the others behavior as inappropriate, accusations are likely to result. Even

    after the winner of the job is determined, such conflict may continue to undermine interpersonal

    relationships, especially if the reasons given in selecting one candidate are ambiguous or open to

    alternative explanations. Robert Allen resigned as CEO of Delta Air Lines a few years ago becausehe disagreed with other key executives over how best to reduce the carriers costs. After he began

    looking for a replacement for one of his rivals without the approval of the firms board of directors,

    the resultant conflict and controversy left him no choice but to leave.31 More recently, similar

    problems have plagued Boeing as its top executives have publicly disagreed over routine matters

    and sometimes gone to great lengths to make each other look bad.

    1.6.2 Intergroup Conflict

    Conflict between two or more organizational groups is also quite common. For example,

    the members of a firms marketing group may disagree with the production group over product

    quality and delivery schedules. Two sales groups may disagree over how to meet sales goals, and

    two groups of managers may have different ideas about how best to allocate organizational


    Many intergroup conflicts arise more from organizational causes than from interpersonal

    causes. There are three forms of group interdependencepooled, sequential, and reciprocal.

    Just as increased interdependence makes coordination more difficult, it also increases the potential

    for conflict. For example, in sequential interdependence, work is passed from one unit to another.

    Intergroup conflict may arise if the first group turns out too much work (the second group will fall

    behind), too little work (the second group will not meet its own goals), or poor-quality work.

    At one J. C. Penney department store, conflict arose between stockroom employees and

    sales associates. The sales associates claimed that the stockroom employees were slow in

    delivering merchandise to the sales floor so that it could be priced and shelved. The stockroom

    employees, in turn, claimed that the sales associates were not giving them enough lead time to get

    the merchandise delivered and failed to understand that they had additional duties besides carrying

    merchandise to the sales floor.

    Just like people, different departments often have different goals. Further, these goals may

    often be incompatible. A marketing goal of maximizing sales, achieved partially by offering many

    products in a wide variety of sizes, shapes, colors, and models, probably conflicts with a

    production goal of minimizing costs, achieved partially by long production runs of a few items.


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    One group of managers wanted to introduce a new sportswear line as quickly as possible, but other

    managers wanted to expand more deliberately and cautiously. Because the two groups were not

    able to reconcile their differences effectively, conflict between the two factions led to quality

    problems and delivery delays that plagued the firm for months.

    Competition for scarce resources can also lead to intergroup conflict. Most organizations

    especially universities, hospitals, government agencies, and businesses in depressed industrieshave limited resources. In one New England town, for example, the public works department and

    the library battled over funds from a federal construction grant. The Buick, Pontiac, and Chevrolet

    divisions of General Motors have frequently fought over the right to manufacture various new

    products developed by the company.

    1.6.3 Intergroup Conflict in the Workplace

    It defines a group as "a number of persons near, placed, or classified together." Others

    define a group as a "social unit that consists of a number of individuals (1) who, at a given time,

    have role and status relationships with one another, stabilized in some degree and (2) who possess

    a set of values or norms regulating the attitude and behavior of individual members, at least in

    matters of consequence to them."

    Intergroup relations between two or more groups and their respective members are often

    necessary to complete the work required to operate a business. Many times, groups inter-relate to

    accomplish the organization's goals and objectives, and conflict can occur. Some conflict, called

    functional conflict, is considered positive, because it enhances performance and identifies

    weaknesses. Dysfunctional conflict, however, is confrontation or interaction between groups that

    harms the organization or hinders attainment of goals or objectives. Causes of Intergroup Conflict

    One of the most prominent reasons for intergroup conflict is simply the nature of the group.

    Other reasons may be work interdependence, goal variances, differences in perceptions, and the

    increased demand for specialists. Also, individual members of a group often play a role in theinitiation of group conflict. Any given group embodies various qualities, values, or unique traits

    that are created, followed, and even defended. These clans can then distinguish "us" from "them."

    Members who violate important aspects of the group, and especially outsiders, who offend these

    ideals in some way, normally receive some type of corrective or defensive response. Relationships

    between groups often reflect the opinions they hold of each other's characteristics. When groups

    share some interests and their directions seem parallel, each group may view the other positively;


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    however, if the activities and goals of groups differ, they may view each other in a negative

    manner. When trying to prevent or correct intergroup conflict, it is important to consider the

    history of relations between the groups in conflict. History will repeat itself if left to its own

    devices. Limited resources and reward structures can foster intergroup conflict by making the

    differences in group goals more apparent. Differences in perceptions among groups regarding time

    and status, when coupled with different group goals, can also create conflict. Reorganization of theworkplace and integration of services and facilities can be stressful to some and create negative

    conflict. Some individuals within the group have inherent traits or social histories that impact

    intergroup conflict, but problems within intergroup relations are not usually caused by the deviate

    behavior of a few individuals. Consequences of Intergroup Conflict

    Intergroup conflict causes changes to occur, both within the groups in conflict and between

    them. Within the groups, members will usually overlook individual differences in an effort to unite

    against the other side, and with this concerted effort the focus is on the task. The group can become

    more efficient and effective at what they do, and members can become more loyal, closely

    following group norms. Problems can occur, however, when the group loses focus of the

    organization's goals and becomes closed off from other groups. Haughtiness and isolation quickly

    lead to decreased communication. Communication is the key between groups in reciprocal

    interdependence, and these have the highest negative consequences for lack of effective

    communication. Miscommunication can be the death knell of any organization. Managing Conflict in Organizations

    How do managers cope with all this potential conflict? Fortunately, there are ways to

    stimulate conflict for constructive ends, to control conflict before it gets out of hand, and to resolve

    it if it does. Below we look at ways of managing conflict.

    1.7 Stimulating Conflict

    In some situations, an organization may stimulate conflict by placing individual employees

    or groups in competitive situations. Managers can establish sales contests, incentive plans,

    bonuses, or other competitive stimuli to spark competition. As long as the ground rules are

    equitable and all participants perceive the contest as fair, the conflict created by the competition is

    likely to be constructive because each participant will work hard to win (thereby enhancing some

    aspect of organizational performance).


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    Another useful method for stimulating conflict is to bring in one or more outsiders who

    will shake things up and present a new perspective on organizational practices. Outsiders may be

    new employees, current employees assigned to an existing work group, or consultants or advisors

    hired on a temporary basis. Of course, this action can also provoke resentment from insiders who

    feel they were qualified for the position.

    The Beecham Group, a British company, once hired an executive from the United Statesfor its CEO position, expressly to change how the company did business.

    His arrival brought with it new ways of doing things and a new enthusiasm for

    competitiveness. Unfortunately, some valued employees also chose to leave Beecham because they

    resented some of the changes that were made. Changing established procedures, especially

    procedures that have outlived their usefulness, can also stimulate conflict. Such actions cause

    people to reassess how they perform their job and whether they perform it correctly. For example,

    one university president announced that all vacant staff positions could be filled only after written

    justification had received his approval. Conflict arose between the president and the department

    heads, who felt they were having to do more paperwork than was necessary. Most requests were

    approved, but because department heads now had to think through their staffing needs, a few

    unnecessary positions were appropriately eliminated.

    1.8 Controlling Conflict

    One method of controlling conflict is to expand the resource base. Suppose a top manager

    receives two budget requests for $100,000 each. If she has only $180,000 to distribute, the stage is

    set for conflict because each group will believe its proposal is worth funding and will be unhappy

    if it is not fully funded. If both proposals are indeed worthwhile, it may be possible for the

    manager to come up with the extra $20,000 from some other source and thereby avoid difficulty.

    As noted earlier, pooled, sequential, and reciprocal interdependence can all result in

    conflict. If managers use an appropriate technique for enhancing coordination, they can reduce the

    probability that conflict will arise. Techniques for coordination (described in Chapter 11) include

    making use of the managerial hierarchy, relying on rules and procedures, enlisting liaison people,

    forming task forces, and integrating departments. At the J. C. Penney store mentioned earlier, the

    conflict was addressed by providing salespeople with clearer forms on which to specify the

    merchandise they needed and in what sequence. If one coordination technique does not have the

    desired effect, a manager might shift to another one.

    Competing goals can also be a source of conflict among individuals and groups. Managers

    can sometimes focus employee attention on higher-level or super ordinate, goals as a way of


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    eliminating lower-level conflict. When labor unions like the United Auto Workers make wage

    concessions to ensure survival of the automobile industry, they are responding to a super ordinate

    goal. Their immediate goal may be higher wages for members, but they realize that, without the

    automobile industry, their members would not even have jobs.

    Finally, managers should try to match the personalities and work habits of employees so as

    to avoid conflict between individuals. For instance, two valuable subordinates, one a chain smokerand the other a vehement antismoker, probably should not be required to work together in an

    enclosed space. If conflict does arise between incompatible individuals, a manager might seek an

    equitable transfer for one or both of them to other units.


    Despite everyones best intentions, conflict sometimes flares up. If it is disrupting the

    workplace, creating too much hostility and tension, or otherwise harming the organization,

    attempts must be made to resolve it. Some managers who are uncomfortable dealing with conflictchoose to avoid the conflict and hope it will go away. Avoidance may sometimes be effective in

    the short run for some kinds of interpersonal disagreements, but it does little to resolve long-run or

    chronic conflicts.

    Even more unadvisable, though, is smoothingminimizing the conflict and telling

    everyone those things will get better. Often the conflict only worsens as people continue to

    brood over it.

    Compromise is striking a middle-range position between two extremes. This approach can

    work if it is used with care, but in most compromise situations, someone wins and someone loses.

    Budget problems are one of the few areas amenable to compromise because of their objective

    nature. Assume, for example, that additional resources are not available to the manager mentioned

    earlier. She has $180,000 to divide, and each of two groups claims to need $100,000. If the

    manager believes that both projects warrant funding, she can allocate $90,000 to each. The fact

    that the two groups have at least been treated equally may minimize the potential conflict.

    The confrontational approach to conflict resolutionalso called interpersonal problem

    solvingconsists of bringing the parties together to confront the conflict. The parties discuss the

    nature of their conflict and attempt to reach an agreement or a solution. Confrontation requires a

    reasonable degree of maturity on the part of the participants, and the manager must structure the

    situation carefully. If handled well, this approach can be an effective means of resolving conflict.

    In recent years, many organizations have experimented with a technique called alternative dispute

    resolution, using a team of employees to arbitrate conflict in this way.


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    Regardless of the approach, organizations and their managers should realize that conflict

    must be addressed if it is to serve constructive purposes and be prevented from bringing about

    destructive consequences. Conflict is inevitable in organizations, but its effects can be constrained

    with proper attention. For example, Union Carbide sent 200 of its managers to a three-day

    workshop on conflict management. The managers engaged in a variety of exercises and

    discussions to learn with whom they were most likely to come in conflict and how they should tryto resolve it. As a result, managers at the firm later reported that hostility and resentment in the

    organization had been greatly diminished and that people in the firm reported more pleasant

    working relati

    1.9.1 Solutions to Intergroup Conflict

    There are numerous choices available to circumvent conflict, to keep it from becoming

    damaging, and to resolve conflict that is more serious. These include simple avoidance where

    possible, problem solving, changing certain variables in the workplace, and in-house alternative

    dispute resolution (ADR) programs. Any resolution method should depend on why the conflict

    occurred, the seriousness of the conflict, and the type. A face-to-face meeting, as in problem

    solving, can be very effective in conflicts of misunderstanding or language barriers. The groups

    can discuss issues and relevant information, with or without a facilitator, to reach resolution.

    Where groups have differing goals, it may be prudent to establish some type of goal that can only

    be reached when the conflicting groups work together. A superordinate goal not only helps

    alleviate conflict, it focuses more on performance, which is what the organization needs to survive.

    A downside to this option is the identification of a common enemy of the conflicting groups, who

    must come together to prevail. Eventually, the solidarity crumbles and groups begin to again turn

    against each other. Another stopgap solution to conflict is simply avoiding it. Although this does

    not resolve the problem, it can help get a group through a period of time, in which those involved

    may become more objective, or a greater, more immediate goal would have been met. Along those

    lines, another solution is smoothing the groups by focusing on common interests and de-

    emphasizing the differences between them. This approach is especially effective on relatively

    simple conflicts and is viewed as a short-term remedy. Yet another quick fix is the authoritative

    command, where groups, who cannot satisfactorily resolve their conflict, are commanded by

    management. This response does not usually deal with the underlying cause of the conflict, which

    is likely to surface again in some way. This would probably be a choice of last resort in this era of

    individual independence and self-determination. Although it is not always possible to change a


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    person's behavior, by focusing on the cause of the conflict and the attitudes of those involved, it

    will lead to a more permanent resolution. It is also possible to change the structural variables

    involving the conflicting groups, such as changing jobs or rearranging reporting responsibilities.

    This approach is much more effective when the groups themselves participate in structural change

    decisions. Without meaningful input, this resolution method resembles avoidance or forcing and is

    not likely to succeed, further frustrating all involved. Any method or response to conflict, lostproductivity, miscommunication, or unhealthy work environment can be reconstituted in many

    forms of ADR. Alternative dispute resolution should also be appropriate to the needs of those

    involved. It is crucial that the organization determines the needs of its stakeholders, the types of

    conflict that occur, and the conflict culture (how conflict is dealt with) within the organization

    before initiating an ADR program. Any program must allow for creativity, approachability, and

    flexibility if people are asked to utilize it. All employees should be aware or involved in the

    establishment of an ADR program, if it is to work properly. Without full involvement or input,

    needs assessment is hit or miss, and assumptions lead to actions, which lead to the same place you

    were before. This assumicide behavior by an organization's leadership would not be tolerated in

    marketing a new product or acquiring a capital asset, so why are people less important?

    Any collaborative process intended to address and manage intergroup conflict should have

    objectives to encourage it. In this major commitment of time and resources, success is its best

    reward, but to ensure an ADR approach suitable for you, it is important to:

    Build trust

    Clearly define participants' roles and authorities

    Establish ground rules

    Promote leadership

    Bring a collaborative attitude to the table

    Maintain participant continuity

    Recognize time and resource constraints

    Address cultural differences and power imbalances

    Build accountability and organizational commitment

    Make this a consensus process

    Produce early measurable results

    Link decision making and implementation

    Promote good communication and listening skills


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    Conflicts within or between groups can be destructive or constructive, depending on how

    the conflict is handled. When an organization is creating a dispute resolution process, there are key

    factors to success:

    1.A critical mass of individuals who are committed to the process;

    2.A leadership group who perceive it in their best interest and the best

    interests of the people they serve;3.Strategic cooperation among historical enemies;

    4.Realistic and satisfactory outcomes;

    5.A moratorium on hostilities or conflict-seeking behavior.

    There also are barriers to success:

    1. Fear of losing power;

    2. Unwillingness to negotiate;

    3. No perceived benefit;

    4. Corporate philosophy;

    5. Top leadership reluctance;

    6. Lack of knowledge about ADR;

    7. Lack of success stories.

    Responsible measures to reduce barriers and encourage a true paradigm shift are training,

    incentives, marketing, periodic review, case studies, and top management support and

    participation. Facilitators trained in mediation and other forms of ADR are a necessary resource

    from outside or within the organization. The workplace of the new millenium will have in-house

    mediation or other conflict management programs to reduce formal claims and act as a risk

    management business practice.

    2 Practical Study of the organization:

    2.1 History of PARCO

    PARCO was established in 1972 as joint venture between the governments of Pakistan and

    Abu Dhabi and to run and operate petroleum refineries, cross country crude / product pipeline and

    storage in Pakistan.

    For this purpose the first project was completed in 1981, by laying an 864 km 16 dia

    pipeline from Karachi to Gujrat (Mahmood Kot). This pipe line is in operation from last 21 years.

    This pipeline was laid as a first phase for the mid country oil refinery. The aim was to transport oil

    from Karachi to other parts of the country with less transportation and maintenance cost. So from

    1982 PARCO was in the Business of Transportation. They received the oil of marketing

    companies and give the facility of transportation from Karachi to Mahmood Kot.


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    Previously there were some problem in storage and handling. In 1990 they increased their

    storage capacity by 50,000 at Korrangi and got the facility of direct discharge of tankers at

    Keamari and pumping it to Korrangi.

    PAK ARAB REFINERY LTD (PARCO) with 60% of the share holding is by the

    Government of Pakistan and 40% by the Emirate of Abu Dhabi through its Abu Dhabi Petroleum

    Investment Company (ADPI), a subsidiary group of International Petroleum Investment Company(IPIC).

    The Refinery capacity is around 4.5 million tons per annum equivalent to a processing

    throughput of 100,000-barrels/ day of a mixed Arabian Light/ Upper Zakum/ crude slate, which is

    being transported to the Refinery site by PARCO's Keamari to Mahmood Kot (KMK) pipeline

    system from Karachi. The maximum production of refinery is 110000-barrels/day, but the

    consumed production is 80000-barrels/day. The city of Multan, only 65 km, from the Refinery is

    well connected with a national communications network of rail, road and air. The nearest rail link

    is through Mahmood Kot, which is about five kilometers from the Refinery.

    Within a 30 km radius of the refinery, there are two thermal power complexes at Kot Addu

    and Muzaffargarh having a capacity of 1,500 and 1,300 MW respectively. With the

    commencement of Refinery operations the companies consequently plan to market its fuel

    products, LPG and Lubricants through own and franchised PEARL retail depots and distribution

    facilities. Off take agreement have already been signed with SHELL, CALTEX and PSO for the

    uplift ment of 75% off all products of MCR. For remaining 25% production an agreement has

    signed with TOTAL (France).



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    To maintain PARCOs flagship role in the countrys energy sector by making it a fully

    integrated oil conglomerate through broader vision, accentuated drive and professional

    excellence. A continuous struggle is needed to make PARCO a symbol of success that

    can offer unmatched benefits to its owners, employees, business associates and the

    community it operates in.

    VISIONFor PARCO to remain among tomorrow's corporate winners.

    They explain their vision statement in following way:

    it may not only need to have a clear vision but also a passion for translating that vision into

    reality. The big challenge is therefore, not only trying to figure out what future will be the right

    one, but to choose a future that will give definite competitive advantage to the Company over the

    long-term. Therefore, creating a cause for action besides charting a course on how to get there.

    2.2 Data collection methods / Methodology

    The applied method in the study is the use of secondary information. Through this method, the

    study can gain advantages that are helpful in the continuous progress of the investigation. One of

    those advantages is to discover the literature gaps because of the review done to the past studies

    concerning the same subject. In addition, through the collection of information


    PARCO, net profit has crossed Rs.3 billion Mark. PARCO has generated significant benefits for

    the national economy against GOP's initial investment of Rs. 324 million. Unto 2001 it has paid

    the following amounts to Government

    Custom Excise Duty Rs.1469 million

    Income Tax Rs.5385 million

    Dividend Rs.3804 million

    Beside PARCO has enabled Government of Pakistan to save in freight pool Rs.13658 million.


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    CAPITAL STRUCTURE (in million)

    Expanded Shareholders' Equity from Rs. 540 million to Rs. 13 billion (by over 24 times)

    Equity Financing of vital energy sector projects completed or under implementation: -


    The PARCO is operating in different business of oil. They have near about 10 products or

    brand. All these brands have huge demand and known well by peoples due to their quality. The

    brand name of products is given in the table below.


    Motor Sprit (87 RON) Motor Sprit (90 RON)

    High Speed Diesel Oil (HSD) Kerosene

    Jet Fuel 1 Jet Fuel 4

    Low Speed Diesel Oil (LDO) Furnace Oil

    LPG Crude Oil


    In PARCO there are nine (9) departments, which are working day and night for the

    progress of the Refinery and for the welfare of the employees. There is also sub-departments under

    these main departments. The main departments include:

    Electric and Instruments Utilities and Offside

    Process department Shipping and Excise

    Personnel and Administration Health, Safety & Environment

    Technical Services Engineering Services

    Mechanical and maintenance


    The 1,600 employees operate the Mid-Country Refinery round the clock but environment

    at PARCO is just like a family. There is strong coordination and social bonding among different

    levels of employees. A low level worker can access the high level manager without any hindrance.

    It is fully employee-oriented firm in which employees are the most important asset for the

    company. When the Government went for downsizing, PARCO contacted to the Ministry of


    Authorized Capital 1,500 5,000

    Paid-up-Capital 540 2,160

    GOP 324 1,296

    *ADPI 216 864

    Reserves 1 14,340

    Long Term Loan 1,115 52,762Debt: Equity Ratio 67:33 77:23


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    petroleum and requested in the favor of their employees. It has decentralized structure and team

    based environment. Employees work in teams so that they may able to work together more

    efficiently. No unionization is there. To avoid such problems all low level workers are hired at

    contractual basis and other management workers are on permanent jobs. PARCO is very much

    conscious about the education of employees. It hires highly qualified and competent persons. They

    sayWe believe on giving the designation to employees according to their qualification.

    There is restriction that the applicant will be eligible to apply for a job if he has at least A grade

    throughout his education.

    2.5.2 Facilities for the Employees

    PARCO provides different facilities to its employees according to their designations. It

    tries to satisfy their employees by giving them different facilities such as:

    1. Housing Complex:

    Different residential apartments are given to the workers. There are different categories of

    houses. For bachelor employees there are Bachelors Hostels in which, there are two categories one

    is for administrated staff and other for technical workers. Employees are provided with apartment,

    houses, and bungalows as the got promotions.

    2. Bloomfield Hall School:

    A school is established with the coordination of Bloomfield Hall School system for

    employees children. Building is provided by PARCO and the mutual management i.e. of is here to

    manage the school. Staff is hired with the coordination of PARCO and Bloomfield Hall

    administration. Vice Principal Mrs. Shaista Qureshi handle all the operations related to this branch.

    3. Officers Club:

    For recreation of employees officer club is established. Employees get the memberships of

    this club and renew it annually. Different sort of activities are done by this club. Melodious Geet &

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

    4. Hajj policy:

    PARCO provides the opportunity of offering Hajj to their employees on its behalf. For this

    purpose, every year some employees are selected from different department by lucky draw.

    5. Ibn-e-Sina Hospital

    PARCO is more conscious about there employees health. For this purpose certain hospitals

    in which Ibn-e-Sina is one of them. There are separate hospitals for technical and administration

    staff. All the facilities are available in these hospitals.


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    HRD at Mid country Refinery:

    All the issues and operation related to the personnel at mid country refinery are controlled

    by its HR manager Mr. Mansoor Bin Kafeel. The hiring decision related to very low level worker

    are taken by him. But the major operations are performed after the approval of GM Corporate

    Affairs at head office Karachi.Diverse cultural backgrounds and multi-ethnic origins add up to create a strong resource

    base at PARCO. Each member makes a valuable contribution while overall functioning as a team.

    Committed to doing more for their country, PARCO people remain dedicated and passionate about

    their work. PARCO people are focused on broadening horizons and meeting new challenges.

    Creative and multi-talented, these fine individuals take pride in shaping the future of

    Pakistan.Different Issues Related With HR Department

    Social Responsibilities:

    PARCO is very much concerned about social responsibilities. it performs many activities

    which gives proof about it. Some of these are following:

    Safety Programs:

    PARCO give more importance to the safety of employees. Different sessions and trainings

    are conducted to give the awareness to the employees about their safety. Safety Walks are also

    conducted annually before the Performance Award Ceremony. Safety Walk 2006 was conducted

    November 16 2006.

    Clean Environment:

    There is great stress on the clean environment. Different precautions are adopted in this

    concern. To appreciate PARCOs efforts in this regards, soon after securing trip quality

    certification for its Mid-Country refinery, PARCO notched another quality achievement in the

    form of Environment Excellent Award, 2006. The award is in appreciation of PARCOs concern

    for environment, its environment-friendly policies as well as investments in this regards.

    Awareness about Cancer:

    With the coordination of Shaukat Khanum Cancer hospital, they try to create awareness in

    the society about cancer. They sponsor many walks, seminars and meetings in this regards.

    2.5.4 Managers responibilities.

    The critical battleground in career development is inside the mind of the person charged

    with supervisory responsibility. So in PARCO, Senior Management executive is responsible for

    communicating career options to the technical and administrative staff. PARCO believes in that

    The weakness of employee is the weakness of manager and the strength of employee is the


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    strength of manager. It is the responsibility of manager to develop his team, identify the weak

    areas of every individual and then offer training in that areas where the training is needed.

    Problems in Performance Measurement & Evaluations:

    Although Personnel Department tries to communicate a fair and smooth appraisal system

    but due to some reasons, the inaccuracy in performance measurement occurs. The reasons for this

    include:1.Organizational Influences.

    2.Personal Biasness.

    3.Difficult To Set Qualitative Standards.

    There are also some problems, which the personnel department has to face in the accurate

    evaluation of the measured performance. The problems include:

    1.Subjective Standards.

    2.Rating errors.

    3.Negative Communication.

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

    fine. They have strong intensity of the relationship in the organization.



    PARCO is the largest oil refinery in Pakistan. Its production capacity is more than the capacity

    of other refineries combined. Its size gives the opportunity to capture the market share and

    dominate the competitors.

    PARCOs 1228 km pipeline network distinguishes it from the competitors. It has very managed

    network for the supply of crude oil.


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    PARCO has achieved an AAA credit rating. This credit rating is issued by the credit rating

    agencies for the payment of the long-term loans.

    PARCO employees are very much committed to their work. They behave like they are in

    business for their selves. They have free access to the management and their suggestions and

    recommendations are given serious considerations.

    PARCO is first ever oil refinery in Pakistan involved in the refining, distribution through

    pipelines and marketing of its products. By integrating the upstream and downstream activities,

    the company has been able to manage the functions well and get margin from each activity.


    Over all demand of the petroleum products is increasing at the rate of 5-10% in Pakistan.

    Especially in northern region rate is even more so this provides the substantial opportunity.

    Most of the oil refineries are located in upper side or low side. There was no refinery in

    northern side so this will provide an opportunity to market the products in this region and this

    region also provides a substantial growth potential in future.


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    300,000 millions tons of gasoline is surplus every year. The excess gasoline can be used to earn

    the export revenues by selling it to foreign countries.


    Now being in the competition with the big oil marketing companies, PARCO has not yet

    realized the importance of advertising and other promotional activities. On the other side PSO,

    SHELL, and CALTAS are spending heavy amounts on the promotion of their products.

    PARCO mid country refinery (MCR) is running at the 70% of its capacity. This means that they

    are producing 20,000 BPD less than what they can. If this would remain the practice, the


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    company would be facing difficulties in future. They can never reap the advantage of size and

    economies of scale would never be achieved.

    PARCO mostly rely on foreign marketing companies for marketing of oil products.

    At present they are not utilizing their capacity fully and they are utilizing only 80% of total their

    capacity. So for removing this condition they need strong marketing campaign because it will

    create the awareness among the people, which will be helpful for increasing the demand of

    PARCO products. This marketing effort not only will be helpful for selling 25% but also for

    the utilization of full capacity.


    PARCOs mid country refinery has been newly established it might have to face the problems

    to get the order from oil marketing companies. OMCs have their long-term agreements with

    oil refineries and they are bound to fulfill their agreements. In this situation it would be tough

    job for the PARCO to show its presence in the market.


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    Country is facing uncertain economic and political situation. Oil prices fluctuate and they are

    not stable. This economic uncertainty has direct impact upon the future of the company. During

    recession OMCs decrease the purchase quantity of oil and this creates a surplus for the

    company. The company has no proper utilization of this surplus and ultimately they have to

    reduce the production, which has negative impact on the profitability of the company.


    Parco is one billion dollar sophisticated state-of-the-art refinery. The company is strong

    due to its human resource. The elements such as competence in management, well defined policy

    and procedures making mechanism ability, and committed leadership present in natural order that

    makes the PARCO AAA rating firm since the last four years.

    PARCO expansion is upstream and downstream through ventures and alliances. For

    backward integration PARCO develop pipeline network from Karachi to PARCO destination. The


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    managerial decision of pipeline network reduce the cost of Value System by million of dollars of

    every year.

    As far as the forward integration is concerned PARCO venture with the French based oil

    retailing company and serve the national market as OMC (Oil Marketing Company). This decision

    increases the average capacity utilization of plant.

    PARCO also improve its forward integration strategy by alliance with other OMCsparticularly with PSO by supplying the crude oil to KAPCO through the pipeline which is owned

    by PSO. PARCO also share the storage units of PSO for other forward integration activities.

    RECOMMENDATIONS:This time when industry is fully mature, and the competition in terms of access to final

    consumer is very high the companies usually face the problems of slow demand growth, emphasize

    on differentiation and services, marketing. Although they have tackled the problems very well but

    there is always need for the cope with the changing world, so some proposed strategies are as




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    PARCO should look for the export of its Petroleum products specially the LPG that is in

    excess of demand. This will not only help to keep the operations efficient but also to earn a very

    valuable foreign exchange for the country.


    PARCO has already signed an agreement with the SHELL, CALTEX and PSO for the

    uplift of 75% of all its products. But with the remaining 25%, which is almost 1.2 million tons peryear, they have to increase their marketing efforts to sell it out. They need to promote their

    products because they have to face a very tough competition form old market players including



    We have presented the different proposed strategies, now we talk about the implementation

    plan for the achievement of these proposed strategies.

    For the implementation of the Market Penetrating strategy PARCO peoples can penetrate

    the market by advertisement on

    1. TV



    TV is most effective media to promote the product. Because it helps to creates the

    awareness and has mass media access and best for their marketing and selling efforts. During the

    timing of cricket matches, they can attract the attention of viewers.

    For the implementation of Market Development Strategy It is keen to find the off shore

    markets for their products. Government of Pakistan should take personal interest and find the

    markets in Japan and other far eastern countries can be a good market for their products.

    TECHNOLOGICAL FACTORS: In this ever-changing world of business only those will

    be surviving who have got latest technology and they have complete knowledge this technology.

    PARCO is very good in both technology and the use of technology.


    Stanley Holmes, Nike: Can Perez Fill Knights Shoes?Business Week,November 19,




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    Stanley Holmes, Inside the Coup at Nike,Business Week, February 6, 2006,

    www.businessweek.com on May 20, 2006;

    Stanley Holmes, Nikes CEO Gets the Boot,Business Week, January 24, 2006,


    Daniel Roth, Can Nike Still Do It Without Phil Knight?Fortune, April 4, 2005,


    Annexure 1



    PRL PARCOCultural Issues Yes NoIdentification of/ address tothe Labor Needs

    During training by having close and goodrelationships with CBA


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    Organization Networking E mails, Telephones and weeklymeetings

    on the intranet daily and monthly meetings celebrate family day every year

    Remuneration Recently a salary survey wasconducted through third party


    TNA, performanceappraisals

    Goal based performance and IPF(Individual Performance factors)

    Performance targets & Behaviorcompetencies

    Compensation Policies Promotions

    VPP Spark awards SRA (Special RecognitionAwards)

    Rating as poor, good &

    outstanding. Employee of the month

    Kind of Leadership between the Leaders andthe Followers

    Not very healthy due totransformational changes would probably take 5 years tobuild a healthy relationship

    Good team work and closerelationships

    The Best Practices

    PRL PARCOBest practices learned Going towards openness in

    communication. Trying to develop task forces andteams. Adoption of best practices fromMNCs. Approachability of Sr.Management. Delegation of task

    Through KPIs

    Ethical Behavior Ethics policies, EthicsCommittee monitors and resolvesethical issues and dilemmas

    Through PMP(performance mgt process)


    Extensive trainings Indoor/Outdoor 16 Hrs/year/employee training

    On Need basis

    Stress Management Sports and games Stress Management programsHandle Conflict As per the policies or otherwise

    by counseling Through demonstration Employee Engagement

    PRL PARCOImprovement in Peopleskill

    Through trainings Through trainings through job rotation

    Job Design

    Rotation is done on need

    basis. Enhancement is doneaccording to the skill level andexperience of employees.

    Rotation is done on need basis.

    If any employee wants to changedepartment he needs to get NOCdocument approved from head.

    Change Management

    PRL PARCOOrganizational Change,Example

    Not managed, opening line ofcommunication upward

    By PMP, using surveys andinterview of employees Adopted the policies from BritishPetroleum


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    Compliance withGovernment standards

    Continuous improvement ofprocesses Bi- annual audits

    No strict policies observed.

    Gauging Behavior


    Employee Attitude By Satisfaction surveys By PMP By visual observation

    Salary Structure Nothing general salary levels are known butnot the individuals salary

    Absenteeism andTurn over

    line managers to report it toHR

    Strict discipline. If a person is late more than 3 daysin a month he loses his leaves If a person is late more than 7 dayshe gets dismissed.


    Commissioning of Karachi-Mahmood Kot crude -cum-product

    pipeline system


    Additional 50,000 tons of Storage facility at Korrangi and directdischarge of ships into PARCO network to ease pressure onKeamari Oil Piers (DKF).


    Introduction of flow improving technology to increase pipelineinstalled capacity of 2.9 to 4.0 million tons/ annum.


    Completion of Bubak and Fazilpur Pumping stations, furtherraising the pumping capacity by 50%.


    System UP-gradation/Modernization: Telecom & SCADA,Revamping, Intelligent Pigging & Pipeline Rehabilitation


    Completion & Commissioning of 360 kms Pipeline Ext. Project

    From Mahmood Kot to Sheikupura near Lahore Via Faisalabad


    Commissioning of PARCO Mid Country Refinery (MCR) with a4.5 MT/ p.a capacity


    Launching of Marketing Operations of PEARL in partnershipwith SHV & OMV and incorporation of a Joint Venture Co. withTOTAL Fina Elf for development of retail outlets.


    Under current implementation: White Oil Pipeline Project(WOPP)


    Annexure 2


    The following is an overview of our major milestones:

    Year Milestone

    1990 Debottlenecking of Keamari Facilities (DKF) Project. Additional 50,000 tons of storage facility atKorangi & direct discharge of ships into PARCO network to ease pressure on Keamari Oil Piers.


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    1992 Introduction of flow improving technology to increase pipeline installed capacity of 2.9 to over 4.0million tons/year, with flow improver.

    1994 Completion of Bubak and Fazilpur pumping stations, raising pumping capacity by 50% to 6.0million tons/year.

    1997 Completion and commissioning of 360 km Pipeline Extension Project MFM) from Mahmood Kot toMachhike near Sheikhupura via Faisalabad.

    2000 Completion and commissioning of Mid-Country Refinery (MCR) at Mahmood Kot.

    2000 Launch of Marketing Operations.

    2002 Commissioning of Gantry at Faisalabad

    2004 Completion of PAPCOs 780 Km White Oil Pipeline (WOP) at a cost of US$ 480 million.

    2005 IMS Certification of Mid-Country Refinery

    2006 Korangi-Port Qasim Link Pipeline (KPLP)

    2006 Export of Motor Gasoline

    2006 IMS Certification of Pipeline Division

    2007 IMS Certification of Corporate Headquarters

    2008 Zamzama condensate injection from PSA-2 Bubak

    2009 Implementation of SAP ERP

    2009 HR Transformation

    Annexure 3


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    Annexure 4


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    Annexure 5


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    Annexure 6


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    Annexure 7


    Mr. Muhammad Rasheed Jung

    Managing Director, Pak-Arab Refinery Ltd.

    Mr. Muhammad Rasheed Jung has 38 years of experience in managing and operating oil refineries, petrochemicalcomplexes and pipeline systems in Pakistan as well as abroad. He has been associated with Pak-Arab Refinery Limitedsince 1989 and has played a significant role in successful completion of PARCOs various expansion projects. He was theProject Coordinator for PARCOs US$ 886 million state-of-the-art Mid-Country Refinery. Prior to joining PARCO, Mr.Jung had been working for ADNOC, PERAC and National Refinery Limited. His key areas of expertise are Engineering,Financial/Strategic Management, Corporate Affairs and Human Resource Development. He holds Masters Degree inElectrical Engineering from Germany and is a senior member of Instruments Society of America.

    Mr. Tariq Rizavi

    Chief Executive Officer, Pak Arab Pipeline Company Ltd.

    He holds a Masters Degree in Chemical Engineering and a Postgraduate Diploma in Management. He joined PARCO as aTrainee Engineer in July 1975 and was the first engineer and possibly amongst the very first employees of PARCO.During his thirty three years association with PARCO, Mr. Rizavi has developed his career with higher and higherresponsibilities in Process Engineering, Commercial and Corporate Planning. He has also provided leadership support to

    the Human Resource Development / Administration discipline.

    Mr. Feroze Jehangir Cawasji

    DMD Finance & Corporate Affairs

    Mr. Feroze Cawasji joined PARCO in 2003 as Deputy Managing Director (Finance & Corporate Affairs), he is a memberof the Institute of Chartered Accountants of Pakistan (ICAP) and brought with him more than 20 years of rich experience,including 15 years in the oil industry. With his appointment, the company crossed another milestone on the way inachieving a strong and balanced organizational structure that is capable of sustaining its growth.

    Mr. Shuja Uddin Ahmed

    DMD Operations

    Mr. Ahmed has around 32 years of professional experience in leading Petroleum Industry and multinational organizations;including about 30 years diversified experience in PARCO. Major areas of responsibility included Corporate & Strategic

    Planning, Project Development, Projects, Mid Country Refinery Project, and Marketing & Commercial. He holds a B.Sc.Degree in Chemical Engineering and has attended several training programs and professional development courses.

    Mr. Munawar A. Tejani

    Company Secretary

    With PARCOs continuing growth and diversification, Mr. Munawar A. Tejani joined PARCO as Company Secretary toprovide support to the Management Team. Mr. Tejani is a member of the Institute of Chartered Accountants of Pakistan(ICAP) besides holding a Bachelors degree in law. He brings with him more than 20 years experience in financial andsecretarial areas.


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    Syed Zakir Hussain Shah

    GM Pipelines

    Mr. Zakir Hussain Shah joined PARCO in 1978 and was assigned the construction of the Karachi-Mahmoodkot pipeline.He has worked in various capacities and departments and has extensive experience in Project Implementation. He has

    played a pivotal role in various PARCO projects including the White Oil Pipeline Project. His area of expertise alsoincludes Operations and Maintenance of pipelines. Mr. Zakir has a bachelors degree in Mechanical Engineering.

    Mr. Anwar Ahmed

    GM Special Assignments

    During his 32 years association with PARCO, Mr. Anwar Ahmed has grown into more senior responsibilities within theFinance discipline. He has a Masters Degree in Economics and is also a fellow member of the Institute of CharteredAccountants of Pakistan. He joined PARCO as an accountant and since then, on the basis of his ability and hard work, has

    been steadily assuming higher responsibilities.

    Mr. Ahmed Nadeem Jamal

    Head of Internal Audit

    Mr. Jamal has been with PARCO since 2002 and currently serving as Head of Internal Audit. Having extensiveexperience with different multinationals where he was responsible for Information Technology, Finance, MaterialsManagement and Internal Audit. Mr. Nadeem Jamal is a member of the Institute of Chartered Accountants of Canada andBermuda since 1985 and an FCA member of the Institute of Chartered Accountants of Pakistan.

    Mr. Abdur RashidGM Technical

    Mr. Abdur Rashid has a Bachelors Degree in Mechanical Engineering and has served PARCO since 1993. During hisprofessional career of 35 years, he has worked on petroleum refinery, petrochemical plants and pipeline projects, coveringalmost all facets of project engineering leading teams involved in Mega Projects of immense importance in the EnergySector.

    Mr. Shah M Saad Husain

    GM Corporate Affairs

    Mr. Saad has Masters degree in Engineering (USA) and Business Administration (IBA) along with 32 years ofmanagement experience in the energy and engineering sectors with multinational, private and government organizationsin Engineering, Project Management, Marketing, Business Development, HR, External Affairs, Corporate Planning,Administration, CSR and Customer Relations. Prior to joining PARCO in November 2008, he worked for about 10 yearsat Indus Motor Company, the joint venture of Toyota Motor Corporation in Pakistan, where he has held the positions of

    Director Marketing, Director HR, and Director Corporate Planning & Customer Relations. Before that, he was employedas General Manager in British Petroleum and in BHP, and has also worked in PIDC as Chief Engineer.

    Syed Zawar Haider

    GM Marketing and Commercial

    He holds a Bachelors Degree in Mechanical Engineering and MS in Engineering & Management Science from USA.Since his joining, Mr. Zawar Haider has played an important role in various marketing and commercial initiatives ofPARCO. He has brought 25 years of sound and diversified experience of working with leading multinationals in the oilindustry like Shell, Mobil, Exxon Mobil with local and overseas assignments. Mr. Haider was also seconded by PARCOto Oil Companies Advisory Committee (OCAC) as Secretary General in November 2006 where he took importantinitiatives on downstream oil industry issues.

    Mr. Shahid Mahmood Khan

    Head of Corporate PlanningMr. Shahid Mahmood Khan has joined PARCO as Head of Corporate Planning, in 2008. He brings with him around 30years of experience in General Management, HR, Administration, Marketing, Finance, Materials Management / SupplyChain, Government/Trade Bodies Relations, Business Development, Corporate and Strategic Planning in diversifiedsectors including Oil & Gas, Automobile and Chartered Accountancy / Consultancy. Mr. Khan is a Chartered Accountantand has attended various management courses including the advanced management program from INSEAD, France.


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    Mr. Attaullah

    GM Refinery

    Mr. Attaullah did his B.Sc. Engineering in Mechanical in 1975 from the University of Engineering and Technology,Lahore and MBA from Bahauddin Zakaria University, Multan. Later he did a Diploma in Planning and ResourceManagement from Colorado State University. In 1985, he completed his Masters in Engineering Economics from thesame university. Mr. Attaullah joined PARCO in May 1998 as Chief Engineer and remained actively involved in the

    construction, commi ssioning, start-up and later in Maintenance and Materials Management of Mid-Country Refinery.He became Manager in January 2000 and has worked in Utilities and Oil Movement, and Maintenance Departments,

    before becoming DGM (Refining).