Assignment

Submitted to: Sir Khuram Shahzad

Submitted by:

Aisha Attiq F2020273003

Bilal Aftab F2020273004

Hamza Arshad F2020273020

Subject: SHRM

Date: Jan 13, 21

Key Facts and figures:

1. There was a total of 85 assets (fields) in the country, 45 were operated by PPL and the rest were
operated through joint venture partnerships.
2. Over the past many years, most of PPL’s production had come from three sites: Sui, Kandhkot
and Adhi.
3. PPL also owned the largest mining company in Pakistan Bolan Mining Enterprise, which was
active in Balochistan.
4. Bokhari, a petroleum engineer with over 30 years of experience in the oil and gas sector, brought
in international exposure from having worked in three major oil companies in USA, Italy and
Kuwait.
5. Pakistan’s daily production of gas was about 4 BCF. Government projections showed a shortage
of 1.2 BCF per day.
6. In 2011 Pakistan ranked 141st in terms of energy per capita with a requirement of 482 kg of oil
equivalent, compared to India’s 614, China’s 2029, and the United States’ 7032.
7. Pakistan’s population had approximately doubled every 23 years which meant that the country’s
energy demands would continue to grow at a rapid rate.
8. The historical focus of exploration for gas in Pakistan had been limited to certain areas.
9. Pakistan had 827,000 Km of explorable area. The Government of Pakistan had issued licenses to
explore over 44% of that area. However, only 10% of this area had so far been explored in
Pakistan
10. From 1947 to 1983 there were on average 3.5 wells drilled per year.
11. After the discovery of Badin Oil Fields in Sindh by Union Texas, the interest of Exploration and
Production (E&P) companies increased in the country. The exploration activity picked up (about
25 wells drilled per year) but mostly in areas where there were very few reserves.

What change to bring:

1. Since there were three assets in the central and northern parts of the country, some of the offices
from Karachi were relocated to Islamabad.
2. There were some people across different tiers within the organization who were not happy with
the changes and the rapid pace at which the changes were being introduced.
 3. The restructuring required more work. Prior to restructuring, the additional load could have been
distributed across resources within the same functional area. Now assets had to have their own
resources.
4. There was mixed response towards some changes that were meant to bring PPL in line with the
norms prevalent in the E&P sector. For example, PPL had a 20-10 field rotation system that
allowed people to work in the field for 20 days and take 10 days off. However, the current norm
in the industry is a 21-21-day model in which employees work for three straight weeks and take
the next three weeks off.
5. Bokhari concerned about the extent to which these changes had been institutionalized, and
whether the changes would sustain if he were to leave at the end of his tenure.

Apply tool and techniques:

1. PPL invested a lot on training and development of employees through various local and
international public programmes, on average only 3-4 in-house technical trainings were
conducted in a year through international facilitators. The plan was to conduct 3-4 such
trainings per month. A total of 19 trainings in diverse technical areas through foreign trainers
were conducted in 7-8 months in these centers since they began operating in late 2015.
2. Bring instructors from outside in those training centers. We conduct classes on soft and
technical skills. Our systems are working so well that our partner companies have started
sending their employees to us. This is helping us with the cost of the centers as well.
3. Develop technical capacity within PPL to do offshore drilling, invest in the training and
development of our staff, strive to be safe and discharge our responsibility as the national
E&P as best as possible.
4. Successful utilization of technology to unleash substantial resources stranded within tight gas
sands
5. Build a learning organization that continuously evaluates and improves

Suggestions:

1. Maximize output from existing producing assets

2. Increase and expedite exploration and development activity
3. Analyze and optimize existing portfolio
 4. Acquire new blocks – a sustained increase in activity
5. Develop people through the best processes to ensure strong skill set and leadership
6. Deploy technologies to unleash gas resources in tight sands
7. Bring in JV partners – spread risk, shared knowledge and costs
8. Form alliances with service sector companies to reduce costs
9. Explore in the frontier areas for big finds

Competence:

1. Annual Balance Scorecards at corporate and functional levels will continue to define operational
efficiency measures against which management performance will be gauged
2. Arresting production decline and introducing a gradual incline of 5% over the next 5 years
3. Adding more reserves each year than those produced and sold (over 100% reserve replacement
ration)
4. Successful utilization of technology to unleash substantial resources stranded within tight gas
sands
5. Sustain increased drilling activity at current levels, especially in frontier areas
6. Build a learning organization that continuously evaluates and improves
7. Incorporation of best training & development processes for technology and leadership

Course of action:

 The lack of new people within higher ranks due to promotional expectation has resulted in a
culture that has not had any change.
 Better management of resource distribution – organization structure has not been changed for a
long timed.
 Lack of internal technical / soft skills training – limits the number sent out for training.
 Improve health and safety standards because there is a lack of knowledgeable worker in the area.

QUESTION NO 1: You need to analyze, by using good change management model, if the
change has been institutionalized at PPL.
 1. Strategy:

We think they have a perfect strategy which they mentioned in the case (Exhibit 10), they mostly
implemented this strategy in the organization and achieving their goals. For-Example: Record
well drilled, improvement in output of gas in 2015-2016. But the main problem is that the next
CEO will allow to stay on this strategy?

Rating: 7

2. Structure:

The structure is totally centralized, top management takes the decision without any involvement
of the low management.

We think the organizational structure should be decentralized, lower management should be

involved in the decision making process.

Rating: 5

3. Systems:

They are using the best technical platform (SAP), which is the best ERP in the world right now
and it helps a lot in doing the work more efficiently. The training plan and performance
evaluation system was linked with SAP. On the other side they are using the best systems and
machinery in finding the reserves and drilling.

Rating: 9

4. Staff:

They have old and experienced staff which is very good for the company. The biasness in
performance evaluation is the problem. Some staff members have grudges on others.

Rating: 7
 5. Skills:

The technicians and labor is highly skilled. They have proper trainings for the management area
and the technical area. On job development of skills, Skill trainings for the fresh graduate
students.

Rating: 8

6. Style:

Some senior executive were not happy when they treated all the employees equally. This was the
most negative point of the company before the Bokhari appointed as CEO.

Rating: 6

7. Shared Values:

The company should revise their core values. They were just focusing on the trainings,
performance, goals and equality. In our point of view they should look after the individual’s
values and norms.

Rating: 6
So the overall decision is that the change model is institutionalized.

QUESTION NO 2: You need to provide practical course of action that you can suggest to
PPL to get this change process institutionalized. Just consider yourself consultant.
Answer: As a consultant, the practical course of action is that:

Restructure the Job Description:

First look out the performance of the employees, restructure their job descriptions according to
their skills.

Trainings:

Give them proper training of the technical and soft skills.

Decentralized the Structure:

Discuss with top management that how much the decentralized organizational structure is
important and how it helps in the future.

Performance Evaluation:

After that the major task is the performance evaluation without any biasness and any personal
Grudges.

QUESTION NO 3: You will analyze and explain that how the competence will help HR
processional to get this change institutionalized.
The HR function played a key role as a catalyst in the restructuring implementation. A number of
exercises were conducted to determine suitable candidates for new positions in the restructured. An
employee engagement survey conducted in October 2015 showed more than 50% of the employees to be
moderately to severely disengaged.

Since the timing of the survey was just after the change process had started, according to Bokhari the
survey gave a good idea of the changing climate, but was not an indication of the success or failure of the
change initiatives.

Bokhari took a great deal of satisfaction from the results he had accomplished in PPL as a result of his
change initiatives. However, given the limited term contract of his tenure (three years), he was concerned
about the extent to which these changes had been institutionalized, and whether the changes would
sustain if he were to leave at the end of his tenure. Furthermore, there was an increased level of anxiety as
a result of the recently implemented forced ranking in the performance evaluation system.

QUESTION NO 4: Select on SHRM competence and explain that how it will work in this
situation to get change successfully institutionalized. If you think the change has already
been institutionalized. Then explain how that SHRM competence has played a role in it.