Internshio report-on-pesco

INTERNSHIP REPORT
ON
WAPDA (PESCO) PESHAWAR
Submitted To
AMAN ULLAH KHAN AWAN
(Director) IMS UST BANNU
Submitted By
BILAL JAN MANJA KHEL
Roll No. 792
BBA.IT(Hons)
SESSION: 2006 –2010
INSTITUTE OF MANAGEMENT SCIENCES UNIVERSITY OF SCIENCE & TECHNOLOGY BANNU
(Khyber-Pakhtunkhwa)

INTERNSHIP REPORT
ON
WAPDA (PESCO) PESHAWAR
Submitted To
AMAN ULLAH KHAN AWAN
(Director) IMS UST BANNU
Submitted By
RIAZ ULLAH KHAN
Roll No. 792
BBA.IT(Hons)
SESSION: 2006 –2010
Internship report submitted to the Director Institute of Management Sciences University of Science and
Technology Bannu for the fulfillment of the requirement of the degree of BBA IT .
INSTITUTE OF MANAGEMENT SCIENCES
UNIVERSITY OF SCIENCE & TECHNOLOGY BANNU

A P P R O V A L S H E E T
INTERNSHIP REPORT
ON
BANK ALFALAH LIMITED
EXTERNAL EXAMINAR:
Signature __________________________________
Designation ___________________________________
DIRECTOR:
Name PROF. AMAN ULLAH AWAN
Designation __________________________________
Signature__________________________________
SUPERVISOR:
Name Mr. Aftab Khan
Designation __________________________________
Signature __________________________________
INSTITUTE OF MANAGEMENT SCIENCES
UNIVERSITY OF SCIENCE & TECHNOLOGY BANNU

My humble efforts during the internship
and preparation of this report are
dedicated to my Parents and Friends who
give much guidance and congenial
support to me.

Table of contents
Preface ……………………………………………….I
Acknowledgement …………………… ………………………II
Executive summery ………………… ………………………III
1. Introduction ……………………………………………1-4
Introduction ………… …………………………………...1
Back ground of the study…………………………………..1
Purpose of the study………………………………………..1
Scope of the study…………………………………………..2
Importance of the study……………………………………2
Data collection ………..…………………………………….2
2. Review of the organization …………………………………..
History of PESCO……………………………………………3
Diagram ………………………………………………………3
Area electrical board peshawar ……………………………..4
Roll of privatization commission……………………………6
Mission statement of PESCO………………………………....7
Vision statement of PESCO…………………………………...7
Goals of PESCO………………………………………………..7
PESCO Core values…………………………………………8
Services of PESCO…………………………………………….8

3. HR AND ADMIN………………………………………………
Function of HR Director ………………………………………9
Human resource planning………………………………………12
Recruitment in PESCO………………………………………….13
Selection process of PESCO………………………………………16
4. COMPENSATION AND PERFORMANCE APPRAISAL
Compensation of PESCO………………………………………19
Financial or direct compensation……………………………….19
Non financial or indirect compensation…………………………20
5. THE REVENUE OFFICES PESCO……………………………
Diagram …………………………………………………………….22
General section……………………………………………………22
Billing section ……………………………………………………..24
Collection and debtor control …………………………………….26
Findings and suggestions…………………………………………27.

6. SWOT ANALYSIS ………………………………………………
Objective of Swot analysis ………………………….. 29
Strengths……………………………………………….. 30
weaknesses…………………………………………… 32
Opportunities …………………………………………. 34
Threats………………………………………………….. 36
Bibliography………………………………………………. 37

PREFACE
"Anything learnt by practice is worthy than by theory."
Our degree is a professional one, and a professional must has technical knowledge, which is achieved
through experiences.
It is the requirement for the completion of BBA IT degree that the students has to spend 8 weeks in an
organization as internee after completing most part of his course. Internship has specific purposes. It
provides real life environment to students where they can implement their knowledge practically,
improve their analytic and leadership skills and enhance their capabilities in different aspect of business
field. At the end of their course they have to write a report as the requirement of degree, which improve
their writing skills.
I did my internship in Wapda (PESCO) peshwar .
I arranged the contents of this report during my internship and all facts present in this report are true to
my best knowledge.
RIAZ ULLAH KHAN
BBA(IT) 8TH
Term
IMS (UST BANNU)
I

Acknowledgement
“In the name of Allah, the most gracious, the most merciful”
All praises and thanks are for ALMIGHTY ALLAH who is entire source of all knowledge and
wisdom to mankind.
Special praises for the HOLY PROPHET MUHAMMAD (P.B.U.H) who forever is touch of
knowledge and goodness for humanity as a whole on the successful completion of the project.The
completion of this report was possible for me, but the cooperation and encourage that I received from parents,
teacher and friends that made my job easier.
I am cordially obliged to the Chief executive Mr Rasheed Khan and all the staff members at different
Section as they were with me on the journey of my learning and helped me a lot.
I do acknowledge the help, guidance and congenial support of my respected teachers and I have no
words to express my deepest thanks and regard to Mr.Aftab Khan whose suggestion and guidance helped me
in completing this report and I would like to thank all those, who have contributed to the completion of this
report, both directly and indirectly.
Specially, I am heartedly thankful to Sir. Aman Ullah Khan Awan for his fore sighted vision and
sympathetic guidance. I would say that without his kind supervision and help I would have not been in a position
to make my internship productive and a pleasant learning experience.
Thanking you all for your sincere and cordial assistance and supervision.
RIAZ ULLAH KHAN
BBA(IT) 8TH
Term
IMS (UST BANNU)
II

EXECUTIVE SUMMARY
The WAPDA (PESCO) Peshawar is situated Inside Sadar Peshawar, Opp Bilor plaza Peshawar . The
basic objective of this department is to provide services to the people of stat in Pakistan.
In the past days universities were producing graduates without practical/field experience. These
graduates faced many problems in the practical life/jobs. Due to which remain jobless for a long time.
If they would get a job, they were not performing their duties. Because they were from a theoretical
background not having any practical experience regarding their chosen field of study.
Finally the universities recognized the fact and added additional requirement in the fulfillment of the
graduate degree. This additional requirement in the was that of the internship.
The students are bounded to work in an organization for at least two months. This is now the degree
requirements for master programs and is called internship.
This is a research type study where the internee explores the organization. The strengths, weaknesses,
threats and opportunities of the organization are found out. After this, the comparative analysis is done
and recommendation are made for the utilization of the strengths, put right the weaknesses, availing the
opportunities and overcoming the threats of organization. This study is, not only useful for the
concerned organization as well.
This report is basically an internship report. Being a student of BBA-IT (HONS) at institute of
management sciences, university of BANNU, two month of internship in an organization is
compulsory for me for the completion of my BBA-IT (HONS) degree. Due to which I completed my
internship in the PESCO revenue of Peshawar to study the human resource activates brought for
enhancement both in its employees and public.
RIAZ ULLAH KHAN
BBA(IT) 8TH
Term
IMS (UST BANNU)
III

CHAPTER 1
INTRODUCTION OF THE STUDY
1.1 Background of the study
In the past days university were producing graduates without practical / experience .
These graduates faced many problems in the practical life/job. Due to which remain jobless for
a long time. if they were not performing their duties because they were from a theoretical
background not having any practical experience regarding their chosen field of study.
Finally the universities recognized the fact and added additional requirement in the fulfillment
of the graduate degree. This additional requirement was the was that of the internship. The
students are bounded to work in an organization for at leas two months. This now the degree
requirement for master programs and is called internship. This is a research type study where
the interne explore the organization. The strengths, weaknesses, threats and opportunities of the
organization are found out. After this , the comparative analysis is done and recommendations
are made for the utilization of the strengths, put right the weakness, availing the opportunities
and overcoming the threats of the organization as well.
This report is basically and internship report . being a student of BBA-IT Degree at institute of
management science , university of Bannu two months of internship in an organization is
compulsory for me for the completion of my BBA-IT degree. Due to which I completed my
internship in the PESCO Revenue Office Bannu to study the human resource activities brought
for enhancement both in its employees and public.
1.2 purpose of the report
this report has been written as a partial fulfillment of the BBA-IT degree requirement at
institute of management sciences, university of Bannu. It is aimed at the application of the
internee’s knowledge at the practical field analysis of the concerned organization as well
making recommendation so as to beneficial for internee and the organization as well .

1.3 Scope of the report
The report covers the basic activities and function of PESCO specially the HRD Section
analysis of the organization as well. Recommendation have been given in light of the analysis
being carried out.
1.4 importance of study
the thesis report is the reflection of analytical power of student. In case of PESCO main
emphasis have been given to the HRM practices. Manpower is the only appreciating asset of
any organization. This report may help students in future to understand human resource
practices in out country . it would also attempt to evaluate the overall performance of the
PESCO manpower
This thesis is based on study carried out for the fulfillment of the degree requirement of the
master in business administration at the institute of management sciences ( I M S ), Bannu.
To practically apply the knowledge of classroom lectures to the real life situations.
To understand the various human resource practices of the organization.
To make possible recommendation in light of the analysis.
To polish research thesis writing skills/ abilities.
1.5 data collection
in preparation of this report ,mentioned below data collection techniques have been used i.e
primary dare & secondary data.

Chapter 2
Review of the organization
The Peshawar electric supply company
History
WAPDA
Water and power development authority (WAPDA) was created in 1958 through WAPDA Act
1958. prior to this the electricity supply services in Pakistan was undertaken by different
agencies, both in public and private sectors, in different areas.
DIAGRAM
CHAIRMAN
WAPDA
SECRETARY
WAPDA
MEMBER POWER
MEMBER
FINANCE
MAMBER WATER

Area electrical board Peshawar
The local areas electricity distribution services is being performed regions of WAPDA. Then
the area electricity board (AEB) Peshawar, on the eight AEBs in Pakistan was established
under the scheme of area electricity board in 1982,in order to provide more autonomy and
representation to provincial government, elected representatives and other interest groups in
functions of the AEBs.
PESCO
The environment and structure of the power industry throughout the world is undergoing
dramatic change. The power sector is moving from monopoly to privatization and from
integration to disintegration. To keep pace with this change , the government of Pakistan
approved a strategic plan in 1994 as a consequence of which the power /wing of WAPDA
Has been unbundled into 12 companies for generation, transmission and distribution of
electricity .
Peshawar area electricity board was recognized into one such corporatized entity under the
name of Peshawar electric supply company (PESCO) with effect from 22-03-1998 , with the
aim of commercialization and eventually privatization.
Peshawar electric company limited (PESCO) established as a result of the unbundling of the
vertically integrated power wing of Pakistan water and power development authority
(WAPDA) . the company was established and incorporated in April 1998 as a public limited
company under Pakistan company ordinance 1984.
It was originally organized to take over the properties, assets , obligations and liabilities of
former Peshawar area electricity board (AEB) of wapda serving khyber pakhtunkhwa of
Pakistan including the tribal area.
Subsequently , a new company tribal electric supply limited (TESCO) was spun out of PESCO
in june 2002 for supply to tribal areas of PESCO . presently service area of PESCO include
Khyber pakhunkhwa excluding tribal areas.
PESCO distributes and supplies electricity to about 1.5 million customers of various categories
within its services area. National electric power regulatory authority (NEPRA) has granted
distribution license of PESCO for distribution and supply of electricity pursuant of generation,
transmission and distribution of electric power Act,1997 (NEPRA Act). The various categories
of PESCO include domestic , commercial , industrial and agricultural served by an extensive
distribution system network of 132 KV, 66KV ,33KV ,11 KV and low voltage.

The role of privatization commission of Pakistan in the formation of PESCO
Formation of PESCO
PC had earlier invite parties for appointment as financial advisory consortium (FA) to assist the
Government of Pakistan (GOP) is considering the privatization of Peshawar electric supply
company limited (PESCO), Which is also a fully owned GOP company formed as a result of
the unbundling of the vertically integrated power wing of Pakistan water and development
authority (WAPDA) Into fourteen independent companies i.e four thermal generation
companies ( GENCO s), one nation transmission and dispatch company (NTDC) and nine
distribution companies (DOSCP s) for corporatization , commercialization and subsequent
privatization. The company was incorporated as a public limited company under Pakistan
companies ordinance, 1984 in September 1998 and started commercial operation independent
of WAPDA on march 01 , 1999. it is one of the nine DISCO s responsible for supply and
distribution of electricity in the KPK of Pakistan excluding the tribal areas .
PC received Eight EOI s . however , five of them submitted their technical and financial
proposal for pre-qualification divestiture to undertaken by the private sector, through
competition, accountability, managerial autonomy and profit incentives; and the government
for the privatization pf power sector.
Financial advisor
Privatization commission has hired a financial advisor for the transaction by inviting the
interested parties to submit expression of interest. As a consequence of the technical and
financial evaluation, society general corporate finance advisory and its sub contractors have
started the field due diligence in PESCO head office, Peshawar , the transaction structure was
finalized by june 2005 and the privatization of PESCO was completed by june 2006.

Mission statement of PESCO
Mission , broadly stating is , the purpose for which an organization exist and why should it
compete in certain sectors and industries . tithing mission , sometimes sated as purpose , the
organization addresses itself to that it intends to accomplish both in the long and short run .
mission is very broad statement of organization direction, and is normally summarized and
documented in a mission statement . in the same way , the PESCO has mission statement as
follow;
“ we aim to be an efficient and dynamic distribution business that is the best in Pakistan in the
areas of safety, reliability, great employees and the quality customer satisfaction to all
consumers”
Vision statement of PESCO
Achieve and maintain the highest of efficiency, reliability and responsiveness as public service
organization for variety of customers.
Public and company worker safety shall be high on our priority.
Retaining and growing our business , staff and customer base will be of primary importance.
Developing innovative business relationships both inside and outside our local distribution area
will be a key to our success.
Goals of PESCO
Goals are the ends towards which activities are aimed. In fact these are the results to be
achieved. The PESCO have following certain objectives;
To maintain , augment and expand , as needed, a cost effective and efficient distribution system
to adequately meet the power needs of its consumers.
To comply with the performance specified by NEPRA regarding voltage and frequency
variation, tripping, bread downs, line losses etc.
To continue certain public service obligation including the following;
Installation of basic distribution facilities.
Maintenance of service reliability and safety.
Connection to new customers to ensure open
access to all.
To compete with other DISCO s.
To lead the organization through major cultural change w.r.t
To improve quality of service .
To reduce theft and improve commercial efficiently.
To innovate and satisfy the consumers demand.
To strive for setting the tariff above the cost of supply to ensure a reasonable return on
investment.
To improve morale and professionalism amongst its employees.

PESCO Core values
Our core values are the common denominators for what we do and how we do it. The past ,
present and future of our company are based of our company are based on these cores values
being lived by our employees and our leadership.
We respect our customers.
We value each other.
We strive to continually improve.
We expect to be profitable.
We do meaningful work.
Services of PESCO
1. We maintain electricity distribution that delivers electricity to your
home/business.
2. we connect your home / business to electrical power and maintain that connection,
safely and reliably.
3. we read your power in case of outages or emergencies.
4. we read your meter and calculate your charges for billing purposes.
5. we maintain a current and historical record of your account , including your
consumption and any electricity retailer choices you made.

CHAPTER 3
HR AND ADMIN
FUNCTION OF HR DIRECTOR
General statement of functions
The HR directors undertake the following tasks’
1. under direction from the chief executive officer of the company , HR &Admin shall
be responsible for the recruitment and placement of the “right people to right jobs”
and enhancing their levels of motivation/job satisfaction through .
a) The provision of the necessary support systems and structures such as an attractive
compensation package , a fair and objective system for promotion and career
progression, training and development inputs to keep people in pace with the changing
demands of their jobs, etc
b) The certain of working environment and activeness administrative support systems that
will promote employee and productivity.
Task Element
More Specifically the HR director shall perform following functions.
1. A human resource philosophy which shall the company’s actions with respect to
human management.
2. prepare a HR plan to support the short and medium-term goals pf the company.
3. develops the policies, and procedures for the following human resources
management concerns:
a ) manpower planning / budgeting
b) recruitment and selection
c) Appointment , deployment, redeployment/ transfers
d) compensation and benefits administration .
e) Career planning and promotion
f) Performance management.
g) Incentives administration .
h) Training and development.
i) Grant of selection grade.
j) Consider and approve transfer request.
k) Sanction leave.
l) Disciplinary cases upto BPS 1-16
Public relations overview

To put up press cutting daily to head of the institution;
To perform day to day public relations assignments including:
a. To get publication of all WAPDA/PESCO news in newspaper and also
photographic coverage in media.
b. To issue all contradiction and clarifications for print and electronic media.
c. To make liaison between PESCO and journalists.
d. To keep close contact with journalists.
e. Ti visit regularly press club and hold discussions with columnists and
journalists.
f. Represent chairman WAPDA , and CEO (PESCO) on the occasions required.
g. To participate in radio and tv programs defending WAPDA /PESCO
h. To visit frequently the print and media offices.
i. Ti arrange press conferences/press briefing
To hold press parties.
To issue news /PP/contradiction on daily basis.
To issue advertisement as required.
To arrange photographic coverage of different events.
To ensure the projection of the organization.
To highlight the positive responses of the public representation.
L&L Overview
Duties/Functions
1. Labor/management affairs.
2. preparation of pension papers.
3. welfare fund and GLI
4. appointment of legal counsels.
5. to propose all court/litigation cases on the behalf of company.
6. to guide and impart legal advice to subordinate offices.
Achievements
• One window service facility at each sub-division
Establishment of computerized customer services center in each circle.
• Establishment of mobile customer services to facilitate installment and correction of
bills.
• Central chief executive customer serves center
• Restructuring of circle , division and sub division
• Positioning of field offices near geographic center of their jurisdiction and co-location
XEN & RO offices.
• Printing of 12 months billing detail on bill.
• Well defined and uniform policy for detection bills.

• Enhanced allocation for scheduled banks and post offices authorized to collect bills.
• Establishment of model sub-division
• Restructuring of stores to ensure prompt availability.
• Establishment of marketing cell and task force and task at PESCO HQ facilitate
industrial/commercial/tube well consumers.
• Frequent open forums for employees for redress of their problems.
• Open katchehries by filed officers.
Function of HRD Section
The human resource development sections of many organization carry out different important
functions. They are;
1. staffing
a. job analysis
b. recruitment
c. selection
2. development
a. orientation of new employees
b. training
c. career planning
3. Motivation
a. Salary
b. Promotion
c. Job designing
d. Job enlargement
e. Job enrichment
f. Job enrichment
4. maintenance
a. Provident fund
b. Pension fund
c. Health insurance
d. Group insurance
e. Child education
But before we go for the above mentioned functions, it is necessary to know about the term
human resource planning.

Human resource planning
“human resource planning is sometimes also called and manpower planning”
Human resource planning is the process by which managers and teams ensure that they have
the right number and kind of people capable of efficiently and effectively completion those
tasks that will help the organization achieve its goals and objectives . human resource planning
consists of some steps, the HRD Recruitment policy of PESCO also relies on some steps which
are ;
1. mission formulating
2. establishing goals and objectives
3. a profit assessment of the current human resource
4. development of the organization current employee
5. development of human resource information system
6. replacement chart
7. assessment of future human resource needs
8. development of future programs
job analysis
as the human resource development section of any personnel department starts its HR function
with the proper planning for the prosperous future of the organization, the job analysis is the
important step of the HRD section of PESCO for the effective planning, planning in PESCE ,
is done in the context of job analysis. HRD section carries out job analysis for the creation of
new jobs, appraisal of present jobs and removal of the existing jobs.
Job description
Job description is and outline of the board responsibilities (rather than detailed task) involved
in a particular job. It is useful for informing the applicants about what the hob entails and also
for the settlement of disputes arising afterwards
Job specification
This is a written enlistment of the different skills, experiences and qualifications required for a
particular job. This is also information for applicant where they see whether they fulfill the
requirements of the job or not. They will apply and vice versa.
Recruitment in PESCO
What is recruitment ?
Recruitment can be defined in number of ways
1. it is process of attracting individuals on a timely basis, in sufficient numbers, and
with appropriate qualification and encouraging then to apply for job in an
organization
2. “the process of attracting individuals to apply for jobs that is open” the decision
to appoint heads of section for a position is to cost effective attract, detect and

select people who are most likely optimally contribute to the organization within
that position
Recruitment or taking on employees is one of the most important task of the HRD section of
PESCO as the success of any organization depends, to large extent , on the quality of its
employees. Employees may be needed when :
• The organization expand
• New skills are needed
• Because of technological requirements
• Employ retire ,dismissed or tern over
Appointment Rules of PESCO
• Appointment shall be made only against established Position ,for which approved job
description and budget provision exist
• Appointment shall be made in one of the following ways :
1. by direct recruitment and selection (Internal or External)
2. by browsing serves of the personnel from federal or provincial
government department ,autonomies local board of director.
• All regular appointment to the position in grade 7 to 10 and grade 5 shall be advertised
appropriately. in the case grade 6the open advertisement will made if the employees
from the internal organization are not available . But the position on grade 1 to 4 will be
advertise internally .
The appointing board of director for different grade are as under.
Grade 10 Appointment will be made by board of director.
Grade 8/9 Appointment will be made by board of director.
Grade 5-7 Management Committee including CEO , concern PM ,PRO and
the sectary of the committee .
Grade 1-4 PN or the nominees of the head office ,PRO ,SSO
A candidate must process the required qualification when Appling for the position A four year
B . Sc . degree considered equivalent to master and PhD degree is considered equivalent to four
year experience.
Applications for position in PESCO are submitted in the prescribed application form available
at the HRD section of PESCO .
Minimum age for grade 1-4 is 18 while for grade 5-10 it is 21 years.
Recruitment sources of PESCO
The mean that can provide suitable candidates for the vacancies at your organization sources .
recruitment can be classified into two types.
Internal sources
Recruitment from within the organization is known as internal recruitment PESCO. prefers to
attract as internal pool of employees for recruitment to new jobs if they fulfill the requirements
of the jobs. The jobs is advertised on the notice board at the head office as well as at regional
offices.
Methods of internal requirement

• Employ Referral
The current employees of PESCO refer suitable candidate for available jobs in the
organization. This is internal requirement because the internal employees are use to refer
candidate. This method is used for requirement of PESCO.
• Probationers
New employ are not hired on permanent basis in PESCO rather they are hired as
probationer for six month. the performance of these probationer is closely checked in
this period. If the performance of the probationary period is satisfy the employ become
permanent.
Methods of external Requirement
External recruiting means,” recruiting people for out side the organization”, new blood is
always need for organization and PESCO dose practice it by hearing people from out side the
organization .PESCO uses the following methods for external recruitment.
a) personal recommendation
when there is vacancy in PESCO and a present employee knows about a competent person for
vacancy, he boldly recommends that person. The HRD section then contact that person and is
hired, if found suitable , the job.
b) private employment agencies
PESCO seldom uses the private employment agencies for recruitment purpose because seldom
this is very costly , also the available agencies in KPK are not competent enough to fulfill the
purpose .
b) Advertisement
c) The famous news papers are used for external recruitment
purpose . a great pool of candidates is attracted in this way,
job description and job specification are clearly given in the
advertisement . the applicants submit their application within
the due date. The application are short listed and the short
listed candidates are called interview . those who qualify the
interview are offered the job

d)
Selection process of PESCO
Selection is “to chose individuals who possess the necessary skills , ability , and
personality to successfully fill specific jobs in the organization; the earlier guide lines
given in the recruitment of PESCO will help the HRD section to make proper selection
of suitable candidates. PESCO makes either from inside or from outside the organization
. not only PESCO but every reason behind it is to motivate the existing employees. The
major sources of employees are discussed in this chapter.
Selection from inside the organization
HRD section from inside the organization
HRD section of PESCO is responsible to carry out the selection process , the staff of the
PESCO is give more importance because the organization know the performance of all
the employees.
Internal advertisement
The internal advertisement is done by displaying the job on the notice board. This basic
aim behind this advertisement is to inform the internal pool of the organization.
Short listing of the candidates
Once the last is over, the short-listing starts. Short listing is done in accordance with jobs
description and specification requirements. They make the short listing of the deserving
candidates and call them.
Aptitude / written test or interviews
The short listed candidate are required to report for the written test on the specified dates
and places. Those who pass the test are called for interview on specified dates and
places.
Selection from out side the organization
The following steps are involved un the external process of PESCO
External advertisement

PESCO HRD section starts its external selection process with the external advertisement
. it gives the advertisement in different media. i.e print and electronic media . the print
media covers the daily newspapers. The advertisement is mostly given on the weekends
both in the English and urdu newspapers.
Short listing
Here the short listing is different and difficult as compared with the internal selection
because the number of the candidates is large. PESCO always gives importance to short
listing. Extensive attention is given to this process . the application are short listed in
accordance with the job description and specification so that suitable candidates may be
brought forth.
Aptitude/written test/interview
Test are designed in accordance with the requirements of the jobs. The candidates are
give tasks and written assignments by the selection committee of the HRD section.
The top scorers of the test are called for interview . some presentation is to examine the
communication skills of the candidate of the candidates.
Documentation and verification
At the end of selection process the documents the documents and verification of the
candidate is done by the HRD section. The information given the candidates and their
documents are verified through proper means . physically examination is also necessary
for certain position. In this ways suitable candidate are found and their necessary for
certain position. In this way suitable candidates are found and their names are
recommended

CHAPTER 4
“ COMPENSATION AND PERFRMACE APPRAISAL
“financial remuneration given by the organization to its employees in exchange for their
work “ the compensation is really liked by the employees because they are receiving
return of their hard works in the form of compensation .compensation is what employees
receive in exchange for their contribution to the organization . compensation is a
motivational for employees because this is question of their bread and butter.
The management always had deep concerns for the motivation level of the staff. When
an organization has a proper compensation policy. It help the organization achieve its
objective and obtain productive employees. Effective compensation plan has the
following-
Effective compensation plan has the following essentials;
• Compensation level must be competitive in order to return the current employees.
• The plan must encourage the reward - desired behavior . effective compensation plans
reward performance , loyalty , experience , responsibility and etc.
• The cost of a rational compensation system must be reasonable to return the workers.
• Every government has its own laws regarding compensation system must be reasonable
to retain the workers.
• Every government has its own laws regarding compensation of employees. It is
necessary to follow these laws. Therefore consideration should be given to federal and
provincial laws while developing plan.
• Cost of living of the area must be taken into account.
• Market survey is also needed to find competitors, packages.
• The ability of the organization should also be considered .
Compensation of PESCO
PESCO also take care of the above compensation essentials while making the compensation
plan for the organization. The compensation of the organization is divided into two types i.e
direct or the financial compensation and the indirect or the non financial compensation.
Financial or the direct compensation

The financial benefits cover the monetary side of compensation . the wages , salaries pay for
performance , financial reward etc. are included in financial/direct compensation . once the
HRD section makes some new compensation plans, it is send to CEO for approval . the CEO
along with board of directors gives the approval for the implementation of the plan. As for as
the financial compensation of PECCO are concerned these are paid according to the grade of
employees. The grade are from 1 to 10. the staff in grade 1-4 is called support staff and 5-7 is
called professional staff. At the topmost level is the executive or management staff and their
grades are range from 8-10. now the job analysis makes things easy for the HRD section. In the
appointment letter of PESCO all he benefits are mentioned for the comers to PESCO , the
following are the financial compensation given by the organization.
MONTHLY SALARY
The monthly salary along with other benefits is written in the appointment letter of the new
employees . all the doubts of the individual are made clear before joining the organization . the
pays are in lump-sum manner I .e all the allowances are given with the monthly salary.
According to PESCO service rules 1994- the regular employees ( those employees who have
successfully completed their probation period) shall draw their pay. Further all employees are
responsible to pay their income tax a 10% of their basic salary . the gross or net salary of a
month contain basic pay : rent allowance. Conveyance allowance etc.
TA/DA ( TRAVEL ALLOWANCE/DAILY ALLWANCE)
PESCO also gives travel allowance and the daily allowance . PESCO provides the conveyance
for the officials visits to the field and also gives TA/DA . These allowances vary with the
grade.
Salary increments
The HRD section also gives yearly salary increment to the employee . normally a 10%
increment is given per year in the net salary of employees. And this increment is awarded from
the first day of the calendar year.
Provident fund
The provident fund is given to the regular employees – those who have completed their
probation period . the employer and the employee quality contribute to the provident fund . the
employs shall contribute 10% of their salary to the provident fund. Employees on the
deputation are not eligible for it. PESCO also gives gratuity are given at the completion of the
job period . I .e after retirement on monthly basis . the employees are registered with employee
old benefits institution (EOAB)

Non financial or the indirect compensation
Compensation that is not in the monitory teams is called non financial compensation. these
include appreciation letters . leaves, exposure trips, group insurance , training and medical etc.
non financial or indirect compensation covers compensation to its employees.
Staff Medical
The entire employee whether regular or probationer are provided with medical facilities by the
organization.
Leaves
The employees are given casual leave of 12 working days a year I .e day a month, similarly an
employee is allowed 12 days sick leave ( with pay) per year. Married female is permitted to
avail the maternity leave (with pay ) this privilege can only be availed after the completion of
probationary period.
Group insurance (GI)
Gi is not only a legal requirement but it also creates a sense of social security in the employees.
Staff is also covered by the group insurance in case of accidents during the service. Disability
and death , caused during service are covered inter group insurance.
CHAPTER 5
THE REVENUE OFFICE PESCO BANNU
PESCO BANNU
PESCO is one of the important division of PESCO. It supplies electricity to whole Bannu
division and its frontier region. It supplies electricity to domestic as well as commercial
consumers. It is divided into five subdivision. PESCO Bannu has three departments that is sub-
divisional office and computer office. As my field of study is revenue office so I will through
light on the function and other specific of this department.
Revenue office PESCO
The primary function of revenue office is billing the customers recording of new connection of
arrears , recording of arrears recording of arrears of collection et
The revenue office divided into following sections
1. consumer record section

2. accounts section
3. billing section
4. posting section
5. cash bank section
The General Section
THE PROCEDURE FOR NEW COMMECTIONS, CHANGE OF NAME,
CHANGE OF TRARIFF, AND EXTENSION OF LOAD
1. The revenue office general section receive from SDO connection section.
Divisional office circle copies of
-application
-demand notice
-part D of service estimate and justification form.
-change notification
And file them in individual consumer file
The revenue office general section maintains an application register for connection of all
categories
REVENUE
OFFICE BANNU
Consumer record
section
Posting section Billing section Account section Cash/bank section

The counterfoil of paid demand notice is received from the bank, and is checked against
the copy of demand notice received from the SDO divisional office, circle office and
area electricity board.
New connection and changes as advised to the computer center by him.
On daily basis all new connection and changes are checked to computer center proof
lists, from the consumer, individual files to ensure that the computer master files are
correct.
Computer center proof list consist of the following
1. master files addition
2. list of duplicate reference
The duty of revenue officer
1. Receive from consumer record clerk reports on paid demand notices in respect of which
the connection have not been effected after a period of a month. Investigate
circumstance with sub-divisional office and report in writing to XEN cases where
satisfactory reason have been given,
2. receive from consumer record clerk report on other irregularities in demand notices.
Investigate circumstance with sub-divisional officer and report to XEN cases where sati
fiction reason have not given.
3. receive reports on any omission to adjust estimated service rental or service capital cost
when leant of service shown on the service connection order varies with the original
estimate. Investigate with sub-division officer and report in writing to XEN.
4. check that the number of new connection order received by the consumer records clerk
equals the number of new connection shown on cp-form-13
for each sub-division. Investigate with SDO and report in writing to XEN .
5. Examine daily the date batch the date batch register cp-form-82 held by data control
clerk to ensure that the same is being maintained properly and computer center is
processing all documents sent to it at the right time in accordance with the laid down
schedule.
6. check entries in revenue office application register and ensure that the register has been
checked with computer with computer center master file proof list sign register in token
of his check.

Billing section
General system description
 Meter reading and billing are carried out over all available days in a month in a complete
cycle process. The revenue office is organized in section for each of the following
- Billing control
- Debtors control
Meter reading lists are prepared in advance by the computer center. They are sent to the
revenue office who arranges for reading for meter readings to be entered on the lists by the
meter staff in the sub-division office follow up meter reading is prepared manually in sub-
division, after entry of readings in the sub-division office the meter reading lists are retuned to
revenue office where control record over the computer billing are maintained. After entry in the
revenue office records the reading lists are collection together in a batch file for each sub-
division.
The batch number is comprised of the sub-division number (1 digits ) and the billing cycle day
number ( 2 digits ) . the batch files are then passed to the computer center along with
forwarding memo (cp-form 80)
- consumer ‘ bills are prepared in the computer in center and sent to the revenue office for
distribution to consumer . bills are distributed who are under the control of the sub-
division office,
- with preparation of consumer bill the computer also prints an assessment list showing
the charges on each bill and also , at the end the total of charges and the total number of
consumers connected . temporarily disconnected and with equipment removed in each
batch.
- The computer prepares disconnection notice period , the disconnection notice which are
sent to consumer who have not paid their bills by the due date. Following the expiry of
the disconnection notice period, the disconnection orders prepared by computer are send
by the revenue officer to sub-divisional officers in respect of bills which are unpaid . the
computer maintains a record of all court orders granted to consumer until disputes are
resolved and order withdrawn.

- Each month the computer center prepares and analysis of energy sales by tariffs for each
sub-division and division and analysis of outstanding debts showing arrears by tariff and
age. A statement of feeder line losses is prepared for each sub-division by the computer
center.
- Adjustments to bills are made only on receipt of a properly authorized bill adjustment
not prepared in the revenue office. All adjustment controlled by the commercial
superintendent and dealt with under co-cide-18 adjustment are processed separately each
day by the computer,
The computer’ bills and assessment list show detail and the total of an adjustment
respectively, the billing summary is amended by the computer at the end of each month , for
tariff , of units and for value .
Where an adjustment is in necessary a decision in court , this carried out immediately , keeping
in mind that the computer may have records reconstituted in the computer before the
adjustment is processed by the computer .
- Separate computer records are maintained PESCO employees entitled to free electricity.
The bills show the gross amount, the allowance deducted and the net amount payable by
the employee. At the end a copy is sent by revenue office to the concern officer. The
controlling officer checks the list to ensure. That the deduction made is according to the
rules, and accept the debits advice.
- Where is not convenient to dispatch data to a revenue officer to the computer centre,
data collection will be arranged and controlled at PESCO headquarters, in the office of
the director commercial .
- Where bill distribution are under the control of the revenue office, the billing control
supervisor will arranger for rotation of their delivery areas so that a distributor does not
deliver bills in the same location on allocated to specific delivery areas.
Collection and debtor control
General system description
1. Consumer pays their bills and demand notices to specified banks. The bank receives
the bill or demand notice, enters the receipt on bank scroll, and retains the
counterfoil. Consumers may also make payment of their bills to revenue officer
through crossed cheque or bank grafts.

2. Daily the bank sends a copy of bank scroll and the counterfoil to the revenue office,
separate scrolls are used for demand notices and an extra copy, along with
additional counterfoils is sent to the sub-divisional officer.
3. The revenue office accounts section check the bills counterfoil to the bank scroll,
check the addition of the bank scroll, and enter the scroll total in the forwarding
memo bank scrolls.
4. The scroll and bill counterfoils are sent daily to the computer center and each
consumer’s payment is posted by the computer into the computer consumer’s
ledger. The computer supplies a total of each posted to each billing batch and a total
of unidentified cash, reconnection fees and other receipts. The reconcel with the
total all bank scroll for each division . In preparing the input for cash posting the
computer center will all at time use the amount shown on the payment counter
folio . the counter folio amount are previously checked by RO staff to ensure that
the amount shown on the scroll are correct however in the different in the event in
the different not beang discover during this cheek the computer center will process.
The amount shown on the center folio .
5. the branch bank remit the amount collected to collection account in there local head
offices as designee by the PESCO head offices and send a copy on the bank
statement to the revenue officers indicated total revenue receive during the week
and money remitted to there head offices collection account each week and the end
of each week.
6. during each month the computer print out the following analysis of the debtors
ledger.
1. Total debtor for each batch in each sub division showing .
• Electricity duty
• Surcharge
• Total debtor at the end of the month
2. Age analysis of the debtor for each subdivision and total for the division and
area board by tariffs and the end of the billing cycle.
Finding and suggestion
After the thorough study and analysis of PESCO we have fined that no one
can deny the important role of PESCO in the commercial and domestic sector. It is the only
organization supplying electricity in KPK.
It is like lifeblood for modern industry. Because without electricity modern machinery can
not be operated similarly electricity is of same importance for agriculture. Because now a
day most of the field is irrigated with tube wells and the electricity are the primary
requirements for the operation of tub wells. In the office most of the work is performed with
computer and computer are operated with electricity.

Although there are some alternatives for electricity like electric generators which is
operated with diesel and petrol but these are too much costly. So the only cheap mean of
energy is electricity generated from water and supplies to the whole KPK PESCO.
Although we have fined that PESCO plays very important role but we have also fiend some
weaknesses of PESCO which should have to be rectify by taking corrective actions.
We have fined from the financial statements of PESCO that it suffers huge losses. There are
some major reasons for these losses for these losses two of them are the thefts of electricity
and poor collection of arrears.
Different methods are used for the thefts of electricity but the most common of them are
theft of electricity by direct hooking meter damaging etc.
For PESCO to be profitable and most efficient it should take strict action to rectify its
weaknesses.
Higher management is required to device some corrective to improve its receivable
turnover. They are also required to take strict actions against electricity thieves. They are
required to advise the public that electricity is the valuable asset of the nation it should used
with great care and should be saved should be saved up to possible extent.

CHAPTER 6
SWOT ANALYSIS
“SWOT, is an acronym that stand for strengths, weaknesses, opportunities, and threats”,
many techniques are available for analyzing an organization. SWOT analysis is one of such
techniques. The objective of SWOT analysis are as under.
Objective of SWOT analysis
• it is used to conduct internal audit. Internal factors such as strengths and weaknesses are
identified in the internal audit.
• It is used to conduct external audit. External factors such as opportunities and threats are
identified in the external audit.
• The SWOT analysis is then used as the bases for constructing a TOWS matrix.
• Different alternative strategies are then recommended on the basis of TOWS matrix.
SWOT Analysis of PESCO
No organization is perfect. There exist some strengths, weaknesses, opportunities and threats,
formally called SWOT. Following is the SWOT analysis of PESCO.

STRENGTHS
Strength is defined as, “a skill or capability that enables an organization to conceive of an
implement its strategies”,
PESCO strength is that it is the only company which provides which provides electric power to
domestic and industry sector. They have no close competitor in the market therefore they have
monopoly in the market.
PESCO in particular HRD section has some unmatched qualities, which at length makes its
backing strengthened. Some of these point are as follows:
Project planning
PESCO has well groomed professionals in the field of project planning. It has expertise in
project proposal writing and forming a good and effective plan for carrying out projects of
different nature. PESCO has also the record of completing the assigned in the due time and
budget.
Well established organization
PESCO established as separate organization in 1995. it is a well equipped and established
organization. The main assets of it are its human resource. Its employees feel belonging to the
organization.
Established HRD section
It provides its technical assistance at every level especially at the village or the gross root level.
For the provision of the trainings to the community and staff of PESCO is the main aim of
HRD . it also gives assistance to other section I .e training, laws enforcement, community
awareness, natural resource management, monitoring and evaluation and social sector
development.
Sound human resource management

PESCO believes in hiring active and inspired candidates. Experience is an important
requirement. The qualification, criteria for selection of employee , is related to the field the
candidate is opting for. At PESCO head office , most of the management has communication
skills in local and foreign languages. PESCO attracts qualified pool of applicants by offering
attractive salary. It also offer other incentives like medical facilities etc.
Employee inter relation ship
A pleasant operational atmosphere atmosphere develops the efficiency of the staff and also
boosts the employees motivation. HRD section employees have good relationship with each
other. The work burden is shared between the employees.
Satisfactory relationships with clients
HRD staff has good relation with its clients. The staff is well-mannered and co operative in its
conduct with the clients.

Weaknesses
Weakness can be defined as, “ a skill and capability that does not enable an organization to
choose and implement strategies that support its mission “, PESCO has the following major
weaknesses,
• Load shedding
• Line losses
• Shortage of safety equipment
• Shortage of skilled personals
• Lake of advance and high tech machinery
• Unavailability of computerized fault detection system
• Low voltage
• Less recovery from defaulters
• Communication gap between high management and employees
• Unsatisfactory salary structure
Weaknesses, like strengths are a part of almost every organization. These weaknesses points
out the potential areas of improvements. A cumulative effort to overcome these flaws success
possible, during the internship period the weaknesses that generally surfaced and were visible
at PESCO organization are as described below in detail:
Infrastructure
The outlook of in organization plays important role in portraying its image to customers.
Similarly the image of the section also matters because a section makes a structure of the
organization. The HRD section has structures that is simple and enough eyes catching that
attracts and motivation the employees and victors. There is less seating arrangements in the
office for both the employees and the customers further HRD is very compressed as there are
no separate offices for many of the managers.
Stipend
The stipend are much less as compared to the duties. It gives challans of different rates
according to the 1975 PESCO Act.
Understaffed department

The number of staff is much less than to their duties e.g a field man performs three types of
duties at the same times.
Poor performance appraisal
Performance appraisal is generally considered a motivational as well as evaluative tool. At
PESCO and HRD its use is normally made in and exploiting fashion.
Favoritism and nepotism play and adverse rule in the performance appraisal which advisory
affected the process also evaluation is made on the basis on the achievement of the market
target which are some time unrealistic and heard .
Poor physical setting
The HRD section physical setting is not suitable due to witch the section look distracts at first
sight , there seems to be no one in the section hence the visitors feels uncomfortable .
Ineffective information desk
The information desk in HRD section is very in efficient usually there peons are present on the
desk , which is no way a good approach for public relation . on many occasion visitors find
there concern person after long struggle .

Discrimination
There is relaxation for female in qualification and market , but today word it is just
discrimination .
Out date material
The material available about organization and HRD section it self is out date there are
very little fresh material available for the interns.
Political interference in selection
As government is a major donor of PESCO ,there for government officials have greet
influence in its affairs especially in the selection of new employ .
OPPORTUNITIES
according to griffin,” an opportunity is an area in the environment that if exploited, many
generate high performance” .success more than any thing is all about converting opportunity
what every board of directors else considers danger” opportunities, when exploited properly
reap profit and earn success. they are almost always a matter of time. they are to be sought,
picked and made use of before any board of directors else gets up and do so. it is just about
being smart and accurate.
pesco and hrd section also have some opportunity it can utilize and obtain good market
position. some of the opportunities are hinted here.
expansion in operational area
PESCO has the opportunity to expand it operation to many other districts as well because
nowadays there is good image for PESCO due to increase in population and constructing new
building. people are there to welcome PESCO in various un-electrified districts.

hiring high caliber graduates
now universities are producing quite high caliber graduates. PESCO has the opportunity to
make use of such talent especially in the had section
availability of good trainers
good trainers are now available in region. PESCO can appoint them to redress its deficiencies
in its training program
Threats
threat is “an area in the environment that increase the difficulty of an organization, achieving
high performance” treats un unseen, futuristic, probable events that can occur and prove
dangerous in consequences. every organization is face by some category of threats in its
operations and foundation. opening new outlets, altering existing polices, designing fresh
marketing strategies, bringing change in physical structures, almost every activity that an
organization does face some kind of threats, just like the benefits is seeks.
the section also faces some threats, which can just prove minor assumed fears” as well as can
become events with grave consequences. the prevailing condition indicates the following as the
possible threats.
law and order situation
the law order situation always plays a vital role in the successful operation of almost every
organization. although there is no as such bad law and order problem in the areas where
PESCO operates, but in the long run, it might effect.
due to army operations in the tribal areas most of the high tension lines and poles have been
damaged y the militants, which cause failure in the supply of electricity to the areas

natural disasters
natural disaster like foods, earth quick, thunderstorms, typhoons, tornados is the major factors
of damaging transmission lines, poles, and other equipments
Bibliography
 www.pesco .gov.pk
 Wapda commercial procedures power wing 3rd
edition
 Griffin Ricky w (1997) management 5th
edition

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