Human Resource Essay

2873 words - 11 pages

HUMAN RESOURCE MANAGEMENT AT STAR ENERGY LIMITEDMr. Jawwad Cheema, Director Projects at Star Energy Limited, was sitting in his office in a very tense and pensive mood that was evident from his face. He had a personal file of a trainee engineer in front of him; and he has to do this abominable task, of telling this young man that his services are no longer required by the company. Every time in such situations, it breaks his heart to tell such a bad news to someone who has been under his training for one year. Trainee engineers were paid Rs 10,000 per month for a probation period of one year at Star Energy. The MTO batch usually was consisted of 40 - 50 fresh graduates. Generally 5 to 8 MTOs were offered regular employment after one year training. All others were terminated at the end of program. Everyone knew that they are free to leave the program whenever they could find an opportunity. However, there was an excessive supply of engineers and real job were scarce without connections.Mr. Cheema had discussed this issue with the owners several times, but was told that they have implemented this MTO program for the training purpose only and anyone can leave the training if they have found a job. They told him:"Look, when these MTOs come here they have never seen an inside of a boiler or transformer and they know nothing about engineering. We train them. Otherwise they will be on streets, God knows doing what,"Mr. Cheema and his colleagues were never convinced of this argument and considered as exploitation of workers at cheap salaries. He wanted to change this culture. He had his sympathies with the employees.Mr. Cheema was a 68 year old man. He had studied engineering from Japan and then he worked for a Saudi Arabia based multinational firm for 20 years. He came back to Pakistan in 1995 and joined Star Energy as the General Manager. Then in year 2000, he was promoted as Director Projects and since then he has been working in that capacity. He played a major role in setting up the thermal power plant in association with a Japanese company. He is a respected figure in the company. But even a person of his stature had a very limited influence on company operations and policies.Power Sector in PakistanThe electricity and power sector of publically registered companies consists of 17 companies in Pakistan with total paid up capital ranging from Rs.75.4 billion to Rs. 80 billion. Core competitors of Star Energy are Nishat Chunian, Nishat Power, Kohinoor Energy, Kot Addu Power, and Hub Power Company.Nishat Chunian Power started its operations in mid 2010 and has a total capacity of producing 200 MW of energy. The total paid up capital of the company is Rs. 3.67 billion and the company is a subsidiary of Nishat Chunian Ltd. which was founded in 1990 as a single spinning unit and is considered as a market leader in spinning industry.This case was written by the students of batch 2012 (Ms. Afia Farooqi, Mr. Muhammad Arsalan Aftab, Mr. Zahid Latif, and Ms....

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