CASE STUDY

PAKISTAN STATE OIL

Introduction:PSO is the market leader in Pakistan’s energy sector. The company has the largest network of

retail outlets to serve the automotive sector and is the major fuel supplier to railways, power

projects, armed forces and agriculture sector. PSO also provides Jet Fuel to Refueling Facilities

at 9 airports in Pakistan and ship fuel at 3 ports. The company takes pride in continuing the

tradition of excellence and is fully committed to meet the energy needs of today and rising

challenges of tomorrow.

Pakistan State Oil, the largest oil marketing company in the country, is currently engaged in

storage, distribution and marketing of various POL products. The company’s current market

share of 82.3% in the black oil market and 59.4% share in the white oil market, alone speak

volumes about its success.

Vision:To excel in delivering value to customers as an innovative and dynamic energy company

that gets to the future first

Mission:We are committed to leadership in energy market through competitive advantage in providing

the highest quality petroleum products and services to our customers, based on

Professionally trained, high quality, motivated workforce, working as a team in an

environment, which recognizes and rewards performance, innovation and creativity,

and provides for personal growth and development

Lowest cost operations and assured access to long-term and cost effective supply

sources5

Sustained growth in earnings in real terms

Highly ethical, safe environment friendly and socially responsible business practices

Leadership Style:ELT is chaired by the Managing Director with Executive Director (Human Resources &

Services), Executive Director (Finance/ Information Technology), Executive Director(Customer

Services) and General Manager (Operations & Construction) as members. ELT committee meets

on regular basis and reviews all matters pertaining to human resource including recruitment,

transfers, disciplinary actions, promotions, and employee benefits. The committee also reviews

succession plans and organizational developments

Organizational Culture:PSO is a sales oriented company. Strong culture is a symbol of more profit more earning and

sense of responsibility. It is also a monument of well-disciplined enterprises in which every

organ of that organization is well concerned with the ultimate objective of the organization. As

it’s a fundamental truth that every individual from worker to Top manager is aware of his rights

privileges responsibilities and outcome of efforts being invested.

Six Dimensions Of Culture:1. Innovation and risk taking : According to our survey what we have found is that employees

are not much encouraged to be innovative and take risks.  

2. Attention to detail  : According to our survey employees have given importance.

3. Outcome Orientation : The manager’s focuses on both results or outcomes and the

techniques needed to achieve those outcomes.

4. People Orientation  :Management decisions do not take into consideration the effect of

outcomes on people within the organization. They have made their employees a central part

of their culture.

5. Team Orientation : They emphasize on team orientation i.e. work activities are organized

around them.

6. Stability:   PSO is maintaining the status in contrast to growth.

Organizational Structure:The organizations formal framework by job tasks is divided in groups but is coordinated.

The basis on which jobs are grouped in order to accomplish organizational goals is

functional departmentalization.

Human Resource Department:People being our one of the most important source of long-term competitive

advantage, PSO invests in the development of its human resource through trainings, skills

development and inculcating performance management culture. PSO like many of the world’s

leading businesses has found success in aligning business goals with those of human resource.

PSO’s HR Mission:

We value people of PSO as our greatest Resource

As a partner in business we undertake to achieve business goals through people

We aspire to create a good working environment for our people where they are motivated

to reach PSO goals

Training & Development: PSO is focused on the development of its human resource in line with the international best

practices by providing employees with growth and development opportunities through various

customized training sessions

By doing so the company aims to maximize employee productivity and enhance the Company’s

overall performance. 

The strategic alliance with LUMS can help achieve the human resource and organizational

development objectives of PSO

Motivation Survey:

We value people of PSO as our greatest ResourceSpecial efforts for continuously enriching our business systems and implementing relative

strategies have always been fruitful which are aimed at augmenting a work culture that enhances

employee motivation as well as gaining a better understanding of forces that shapes motivation,

attitude, behavior patterns and expectations.

Employee Motivation surveys are conducted that recognize the needs, opinions, concerns and

perceptions of our human capital about the organization and what they value in terms of

professional and personal interests and incentives. Keeping a human element is mind these

surveys help identify a meaningful employee relationship with the organizational objectives and

understand their job responsibilities and work expectations.

Job Environment:

We have high ethical standards and a Business 'Principles and Ethics Policy' in place. We value,

encourage and inculcate corporate reforms, good governance, best business practices and an

environment of continued adherence to 'Zero Tolerance', resulting in the development of our

human capital and meeting all business challenges

Policies:PSO shall undertake social, philanthropic or community development programs which are in

alliance with its business strategies or that which will benefit the broader interests of the

community.

Having become the largest oil marketing company in the nation, PSO has not overlooked the

expectations of its stakeholders, and realizes its national and moral obligations ever so strongly.

Recommendations: It should improve its research and development.

They should improve their services at their retail outlets.

PSO should build their own refinery

They should analyze their competitors environment

They should improve their old vision outlets

Aggressive Advertising Strategy

Innovative Lubricant Marketing Campaigns

Drastic Improvement in Customer Service

Greater Focus on CNG Infrastructure

Retail Rationalization Strategy

Excellent Housekeeping/ Cleanliness at Retail Outlets

Attract and Retain Quality Human Resource

Adopt Backward Vertical Integration Strategy

Use Pipelines rather than Road Tankers

Develop Alternate Energy Infrastructure

Benchmark Best Industry Practices