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Block No. 13, Sector H-8, Allama Iqbal Open University, Islamabad.
Submitted by:
Muhammad Hammad Manzoor MBA (HRM) 2nd Semester
Roll No. 508195394 508, 5 Floor, Continental Trade Centre (CTC) Block 08, Clifton, KARACHI (0321-584 2326, 0322-555 5901)
th
ACKNOWLEDGEMENT
All praises to Almighty Allah, the creator of the Universe who blessed me with the knowledge and enabled me to complete this research. I feel great pleasure and honor to express my sincere gratitude and heartfelt thanks to my worthy subject faculty member Mr. Sajid Saeed Sab, for his guidance, encouragement and friendly attitude during the present study and throughout the period of M.B.A (Semester II).
I pay my thanks to all the Faculty of the Department & AIOU Karachi Campus Staff for their kind support, constructive criticisms and real encouragement. I wish to thank Ms. Madiha Ahmed Khan for valuable discussions and knowledge sharing during the completion of this project. I further wish to record my thanks to all my students, class fellows, well wishers and especially Petroleum Exploration Pvt. Limited Management Mozaffar Ali Khan (Field Manager), Usman Javed, Mr. Khizar Iftikhar, Khurram Shahzad, Rehan Hassan, Sohail, Waleem, Javed for their help, valuable suggestions, whole hearted cooperation and prayers.
Finally, I owe all my academic success and progress in life to my loving parents and sisters, whose affection, endless prayers, good wishes and inspiration remained with me for higher ideals of life.
M. Hammad Manzoor
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
ABSTRACT
The study had been carried out by keeping in mind about the selection criteria for Labor Management Relations at Field, Petroleum Exploration Pvt. Limited (PEL), an Oil & Gas Exploration Company in Pakistan. Petroleum Exploration Pvt. Limited has been selected for the sake of the data analysis and working on its merits and demerits, the methodology includes the evaluation of the Labor Management Relations, that how they work and different models had been discussed under this study by the management and the labor union. After analyzing the different inputs and models used by PEL, results and conclusions were worked out from studies which lead the study for further SWOT analysis. SWOT analysis had been carried out and conclusion followed by recommendations had been made in this regards.
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
Sr. No.
1
Contents Description
Introduction
Labor Relations Model Business Model
Page No.
5
Review of Literature
One to One Model Transactional Model Formal and Informal Sector Worker Most Unionized Sector of Pakistan Most Unionized Industries of Pakistan Future of Unionization in Pakistan Company Profile Data Collection Methodology & Analysis Conclusions
6-17
18-30
Data Analysis
Demerits and Deficiencies Merits & Strengths
31-32
Recommendations
33
References
34
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
ONE TO ONE MODEL FLOW Explanation: Most labor management relations are not so simple. Instead, both company A and local No 100 may be found to be at the center of a web of relationships to other organizations, of which their relationship to each other is only a single instance. We examine the web of relationship involving company A, we see that company A has responsibilities to its stockholders and customers as well as to local No 100. It also has relationships with other companies through an association to which it belongs; it has obligation imposed by governmental regulatory bodies; it has commitments to the communities in which it operates; and it has responsibilities to other unions with which it heals. This is a more accurate model of the relationship of company A to local No 100 because it shows that the company must also deal with many o f these other groups on issues that affect local No 100. For example, in considering whether to give in to
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
The alternative is much more complex and shows that there are many more factors involved in the relationship between company A and local No 100 than just the two organizations alone. As such, the more complicated model is generally a more accurate reflection of reality. The few situations in which it applies in reality are not difficult ones to analyze. Most often, however; labor relations are of the type diagrammed above and below and are not simple at all.
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
UNION LOCAL NO. 100 AND ITS RELATIONSHIPS If will recall that John, Dunlops model of the industrial relations system focused on the development of arrangements for the workplace as the ultimate outcome. There are other outcomes of significance, however, including the political activity of unions, the decisions by companies about where to locate facilities, and decisions by mangers and unions about lockouts and strikes. TRANSACTIONAL MODEL: A model offered by Sethi and Dimmock illustrates these additional outcomes, as well as the rules determined to apply at the workplace, and also shows the influences. It stresses, to a greater degree than Dunlop, the ethos (i.e the values, philosophy, and ideology) of the participants in the system. In part because of the importance of ethos and choices in the model, its authors refer to it as a transactional model. In essence, the transactional model implies that management and union are influenced in their actions by other factors than economics. This implication is consistent with much of the psychological and behavioral research now being conducted on labor relations. The model begins with environmental variables that include not only ecological factors but also economic, legal, political, social, and technological factors as well. These factors affect the actors in the industrial relations system via their own needs, values, goals, power, and other factors.
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
TRANSACTIONAL MODEL
What individual actors decide to do is also affected by their personal relationships with other people. For example, a potential controversy between an employee and a manger may be avoided if the two people like one another; or a conflict between a union and a company may be avoided if the union leader and the companys top executive trust each other. All the factors mentioned so far determine the strategy that each actor will choose for dealing with other actors. The union, employer, and government each then determine how to proceed to achieve its goals. Unions and companies try to achieve objectives through bargaining with one another. They are also concerned to see that conflict does not get out of hand. The government passes legislation and acts in the courts to enforce its laws. At the level of the workplace, the individual is affected by the processes occurring between the organized entities of management, labor, and government and to a degree participates in them. The union member, for example, votes on the unions leadership and ordinarily is asked to vote to approve or disapprove a contract that the union negotiates with management. Furthermore, an individual employee may participate via discussions with his or her supervisor of through a work team. Finally, the individual has rights conveyed on her o r him by government legislation and regulation. ENVIRONEMNTAL MODEL: It holds the different variables which are always supportive to the Labor Management relationship. The could be highlighted as environmental variables;
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
SIZE OF LABOR MOVEMENTS IN PAKISTAN: History of Pakistan trade union movement has roots deep in the Indian sub continent workers struggle and is directly related with the emergence of industries in different parts of India. It was soon after 1813 when we see the beginnings of the modern Indian industry and the all most simultaneously sporadic actions of the industrial workers which introduce first batch of industrial legislations. Numbers of strike were instigated by various labor unions in different industrial sector throughout India in around 1895. These activities have given shape to the Labor movement in India. Under the pressure of the workers industrial actions the first sign of industrial laws emerged under British rule in the name of factor act 1881 followed by another enactment in 1911 which laid down working hours for employees in the factories in order to pacify the workers. Till that time workers actions were not organized one. 20TH CENTURY, WORKERS UNITY AND LEGISLATIONS: It is well known fact that till early 20th century there was no organized trade union movement in the country. After the 1st world war it clearly shows the emerging trade union organization and struggle as part of national resistance against foreign domination. The politicization of workers and its mobilization under the joint all India trade union congress clearly indicated the sparks of a movement which has forced the government to introduce legislations in the name of Government of India act, 1919 guaranteed the freedom of formation of association and trade unions in the sub continent. EMERGENCE OF PAKISTAN AND PLIGHT OF WORKERS After the partition from India in 1947 Pakistan inherited the labor laws of British India and adopted all of them as the law of land. This newly curved country got only 9% of the total industry of pre partition India and these industries were concentrated in few urban centers with small number of workers employed as compare to India. Due to that fragile industrial base, workers were in very small numbers so as a result very limited chunk of workers affiliated with the trade unions and the workers movement. And it was even less number of workers were registered under the
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
MARTIAL LAWS AND TRADE UNION MOVEMENT It was unfortunate for the newly independent country that in the very beginning the realm of power was unconstitutionally captured by the strong, over ambitious and adventurous army establishment in 1958 by General Ayub Khan through a military coup. Like all other political and trade unions organizations, Pakistan Trade Union Federation (PTUF), a radical and left oriented trade union federation, was also banned, all its assets were confiscated, offices were closed down and large number of its leaders and active members were arrested along with members of Communist Part of Pakistan. TRADE UNION IN PAKISTAN TODAY: Trade union movement in Pakistan goes through the very crucial period at the movements. After took over of the government by military clique in October 1999 anti workers police has been enforcing upon. Present government has initiated number of polices on the dictates of IMF and WB that have made direct affect on already weak trade union movement. On the one hand IRO 2002 have snatched all trade union right the workers had for long while on other hand public sector entities have been selling out under the policy of privatization in accordance of neo-liberal agenda of WB and IMF and WTO. In last 8 years nearly 0.8 million have been sacked from the jobs, trade union leaders and activists are the first casualty at the time of sacking. In this scenario labor movement is standing at very fragile grounds. However the trade unions have registered considerable enlargement in numbers during last 60 years. If we compare it we see that there were 209 registered unions in 1951 with
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
The decade of seventies saw the golden period for trade unions with membership reaching almost one million (1977) NATIONAL UNIONS S. No 1 2 3 4 5 6 7 8 INDUSTRIES RELATION QUANTITATIVE No of Union 48 54 19 4 15 5 48 84 277 No of Union 21 15 INFORMATION Number of Members 19599 300904 140816 11310 18757 657 22180 41432 555655 Number of Members 2073 2873 ISLAMABAD No of % 4% 54% 25% 2% 3% 0% 4% 7% 100% No of % 5% 8%
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
Industry Bank Workers Communication Workers Eng/Mechanical Workers Mines Workers Oil & Gas Workers Shop Workers Workers Factories Others Total Industry Bank Workers Communication Workers
S.No 1 2
CBA AND WORKERS COVERAGE As per data collected by provincial labour departments in 2001, of the 7,318 unions registered with the departments only 1,905 have Collective Bargaining Agent (CBA) status. Similarly, out of over million members only one third were enjoying CBA status. This is perhaps because of pocket unions controlled by the management for creating hurdles and obstacles in the way of genuine trade unions. The provision allowing more than one union in the law is also responsible for this. It may be noted that in Pakistan the work force opts mostly to work with the CBAs. Once a trade union wins this status more than 90% of the union members join the winning union. Anyhow, an important point is that even the average membership of CBA remained low and this factor is mostly marked in textile, banking, municipalities and food sectors.
THE INFORMAL ECONOMY AND WOMEN WORKERS SITUATION
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
Informal Sectors Workers Quantitative Information % S. No 1 2 3 4 5 6 7 8 9 Total % Name of Union Legislators, Senior Officials and Managers Professionals Technicians and Associate Professionals Clerks Service Workers and Shop and Market Sales Workers Skilled Agricultural and Fishery Workers Craft and Related Trade Workers Plant and Machine Operators and Assemblers Elementary Occupations (Unskilled) 200 Overall % 35 3.3 16.6 13.6 0.4 0.5 86.5 7.9 36.2 100 Male % 27.9 1.8 3.4 10.4 0.3 0.2 27.4 7.4 21.2 100 Female % 7.1 1.5 13.2 3.2 0.1 0.3 59.1 0.5 15
FORMAL AND INFORMAL SECTOR WORKER Formal work is rapidly converting in informal sector due to implementation of different agreements and policies of IMF, WB and WTO by the states all over the world. These policies immensely violate workers rights in general and women workers in particular in informal sector. Millions of women workers are enormously engage in informal sector especially in home based work in urban and rural areas. The market based neo-liberal economic system regards women as a convenient source of cheap labour and part of the
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
There are about 50 million home based workers in South Asia. In Pakistan 65% of all women workers are home based which is growing day by day. In 2000, 35% of all women workers were home based workers and it grows 51% in 2005. How ever unofficial sources claim that in 2001-2002, 63% of women workers were engage in informal sector which increase up to 65.7% in 2003-04 and majority of them work on piece rates. Pakistan's labor movement is showing its ability to continue the past trend of labor absorption. Generation of additional work opportunities commensurate with labor supplies, increasing by over 3 percent annually, has emerged as the most formidable challenge of the century. The labor market is presently confronted with lack of desired facilities and right protection, hence creating a huge potential for expansion of labor movement. The current successful examples of movements of KESC and PIAC labor unions can be taken as case studies in other industrial and services sectors. Lesser productive and low remunerative work opportunities are thus emerging as the major characteristic of the labor movement in Pakistan. As the economy of Pakistan will grow in the coming decades, so will be the number and ratio of work force including the low paid and under paid employs and labors. Since the labor laws and other rules have not fully protected the labor rights, therefore the labor unions have taken a huge and important role. Therefore the size of labor movement in the coming decades is expected to expand in all sectors and industries. MOST UNIONIZED INDUSTRIES AND SECTORS POWER SECTOR Power sector is the most unionized sector of Pakistan.
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
FUTURE OF UNIONIZATION IN PAKISTAN The trade union and civil society movements have an important part to play in Pakistan's society. The major goal is to gain recognition for rights of workers and get companies to implement labor laws. Without recognition, there is no implementation. Pakistan's minimum wage is 6,000 rupees a month (72 USD), but most workers get paid 3,500-4000 rupees, which is barely enough to live on. LEF Estimates that a family of 3-4 needs at least 12,000 rupees a month.
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
PEL holds exploration and production rights over 17,300 km2 area in some of the best proven and potential areas for hydrocarbon find in Pakistan. Currently PEL acreage portfolio consists of 06 development and production leases and 10 exploration licenses, 03 offshore exploration licenses and 02 non-operated licenses. PEL Joint Venture Partners The diversity of operating companies which are joint venture partners with PEL clearly shows their confidence in PEL as a sound operating company. Below is the list of our esteemed joint venture partners.
GHPL (Government Holdings Private Limited) PPL (Pakistan Petroleum Limited) PEII (Pyramid Energy International Incorporated) OGDCL (Oil & Gas Development Company Limited) BP (British Petroleum) FHPL (Frontier Holdings Private Limited) SHERRITT International Oil & Gas Limited SPUD Energy Limited OGI (Oil & Gas Investments) MGCL (Mari Gas Company Limited) OMV Pakistan
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
with Govt. of Pakistan like on acreage allocation, Logistics and taxation etc. COO, is coordinating with CE for the solution of the matters with Govt. and his peers including SGM and the GMs. SGM is being reported by GM (Production), GM (Process) and GM (Finance). GM (Production) is supported by Manager Production GM (Process) is supported by Manager Process Manager Production has the responsibilities of dealing with official and field matters for which he gains assistance from Operations Engineer for office and Manager Production operations from field. Manager Process has the responsibilities of dealing with official and field matters for which he gains assistance from Process Engineer for office and Manager Plant operations from field. Manager Field is directly reported by: Sr. Process Engineer Sr. Production Engineer Maintenance Engineer Instrumentation Engineer Admin Officer Medical Office HSE Officer Accounts Officer Manager Land Sr. Process Engineer handles all the plant related matters for gas processing Sr. Production Engineer handles all the gas production matters from wells.
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
Maintenance Engineer keeps a close eye on the over all field for any mechanical failure. Instrumentation Engineer is for rectification of digitally operated equipments. Admin officer is responsible for managing administration. Medical officer is very important for these field operations to handle any emergency. HSE officer is keeping safety on priority for the sake of life saving. Accounts officer all the financial matters on the field. Manager Land is responsible for handling the issues with land owners.
Most of the working from junior staff to seniors is carried out through immediate actions on most of the sensitive operations happening in the field. Medical Officer with an Ambulance and supported staff remain there for 24 hours basis to handle any emergency which could have been caused by the negligence of any of the staff during nonstop production and processing of the natural gas.
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
the matters with Higher Management like on Labor allocation, Funds Availability for Labor, etc.
Vice President Field Labor Union - PEL has the key responsibilities of
the Labor Representative via labor, generally holds the meeting with the Labor Representatives on every two (02) weeks time span and discuss latest and current issues from the Labor.
Labor Representative has been assigned to the different departments who are
responsible for the thorough interaction between each labor professional, in actual they are the senior labor who always stay in between the labors and collect the information on daily basis.
Labor Representatives from the three departments hold the general meeting
for data collection from other departments and share the problems of their respective departments.
Collective bargaining with management Struggle for employees benefits Fund raising Resolve issues related to workers
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
GM Process
OFFICE MANEGEMENT
Process Engineer
FIELD MANAGEMENT
Manager Process
Field Accounta nt Asst. Maintenance Engineer Asst. Production Engineers Well Operators Shift Helpers
Manager Finance Accounts Officer Sr. Maintenance Engineer Sr. Production Engineers Instrument Engineer Field Manager/ Plant manager
HSE Officer Sr. Process Engineer Asst. Process Engineers Plant Operators
Manager Land
Admin Officer
Medical Officer
Shift Helpers
Liaison Officer
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
Human Resource Managment (527) Merits, Demerits, Strengths and Deficiencies: Merits & Strengths:
The company is wholly Pakistani owned and has the bright future in the energy sector of Pakistan. Senior and superior professionals have been engaged with for the exploration and production of hidden energy natural assets of Oil and Gas. The company has very aggressive future plans for drilling and production of Oil and Gas. The company is fully equipped with modern day equipment for the facilitation of employees to enhance their performance effectively. Organized communication channel, shown in the attached Organogram, been used for spreading information from bottom to top management. Under the proctorship of Mr. Zaheeruddin the company is developing by leaps and bounds and spreading its business throughout Pakistan and abroad. Have Joint Venture with almost 70% E&P companies operating in Pakistan. Mr. Zaheeruddin was awarded the best business man for the year 2007 by the Prime Minister of Pakistan. The departments like Exploration, Production and Process are working cordially and proving to be the back bone of each other. Mr. Zaheeruddin and Co. does have very good relations with Govt. which is very important especially in the matter of acreage allocation. The company is on the verge of developing several ongoing projects which would prove a real epic in the disastrous power and energy shortage situation of the country. Equal opportunity Employer.
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
The Labor Union Hierarchy is too lengthy for the immediate decisions to be taken. The Labor Union does not hold good relations with the Field Management which some time causes less benefits to the labor. The medical facility provided by Field Management to the labor is not of the required standards. HR department does not have enough resources to deal with day to day issues of Labors. Administrations department does not have enough strength to cop with day to day affairs. Field management do not respond to in appropriate time which sometimes bothers out put of the gas production. It does not have proper opportunities for management professionals.
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
References:
A special tribute and thanks to the following professionals of Petroleum Exploration (Pvt.) Ltd for cooperating in providing data and fruitful assistance.
Name
Mozaffar Ali Khan Muhammad Usman Javed Muhammad Hasnain
Designation
Manager Field Manager Process President Labor Union
Contacts
mozaffar@pepl.com.pk muj@pepl.com.pk husnain@pepl.com.pk
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)
Sector No. I, Airport Housing 508, 5th Floor, # Society, CTC Chakala , RAWALPINDI Continental Trade Centre, (0300-550 O899) Block-08 08, KARACHI. (0321Clifton 584 2326) Human Resource Management 02 527
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By: M. Hammad Manzoor, MBA HRM-II, 508, 5th Floor, Continental Trade Centre (CTC), Clifton 08, Karachi. (Roll No. 508195394)