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PCM Assignment 1
PCM Assignment 1
COMPENSATION
MANAGEMENT
Assignment 1
The Employees' Old-Age Benefits Institution (EOBI) is the pension, old age benefits and social
Insurance institution of the Government of Pakistan. It operates under the control of Ministry of
Overseas Pakistanis and Human Resource Development. It came into formation in 1976, through
the passage of the Employees' Old-Age Benefits Institution Act of 1976 by the Parliament of
Pakistan, under the Pakistan Peoples Party (PPP) government of Prime Minister Zulfikar Ali
Bhutto. As of August 2016, the current Chairman of EOBI is Mr. Khaqan Murtaza. Employees' Old-
Age Benefits Institution provides following benefits to the insured person or its survivors. An
insured person typically becomes eligible to get pension after reaching the age of 60 and
completing 15 years of insured service.
Comments:
EOBI is a government run organization and as such has a pyramid organizational structure, where
decision making process follows a top bottom approach. The strategies and decisions are taken
at the top and are then passed down to the respective department heads, whose job is to enforce
them. The leadership of the organization is constantly changing, as every political party appoints
its own Chairman. This has prevented the organization from developing its own culture, as each
Chairman brings about new changes to the organization. EOBIs employees are more concerned
with the job security, the organization the job offers as it is a government organization rather
than on their personal growth. Being a service oriented business, the organization does not keep
any inventories. While employees are not discouraged to interact with each other, however the
organizations do not take any significant steps on an official level to bring employees closer. This
has given rise to the silo mentality as employees of a department are only concerned with the
performance of their own division. EOBI has domestic reach as it caters to Pakistani pensioners.