Water And Power Development Authority Wapda Commerce Essay

This study plays a vital role for the people at the end of the decision making in the Government sector of Pakistan. Usually the method that has been adapted is based on the bygone experience or hit and trail method that is because of the limited knowledge and research available on this sector. There are two types of compensation benefits monetary and non-monetary. Monetary are also called cash benefits and are considered as the part of the pay as per the BPS scale or rank while non-monetary benefits that can also be called tangible benefits are considered as the perks and benefits that are provided to the employee as additional privilege to be working in that certain organization. In addition to that there are differences in the compensation criteria within Public sector and Private sector, not just Pakistan but in all over the world. This paper put its focus on the importance of the non-monetary or tangible benefits provided to the Water and Power Development Authority (WAPDA), which is a government organization operating in one Punjab, Pakistan. This paper finds its best interest in having an understanding on the level of motivation these non- monetary benefits provide to the WAPDA employees, that leads to the high level of performance of the employee, the level of job satisfaction and how it actually benefits the organization. The sample of sample of 30 employees of WAPDA was taken, specified within the BPS scale of 11 to 21 through a questionnaire. Three types of tangible incentives were taken into account are Job Incentives, Medical Facilities and Traveling Benefits. All the data was gathered and have been interpreted with the help of the graphical representation.

Introduction

Pakistan Water and Power Development Authority (WAPDA) came into being in 1958 as a Semi-Independent corporation that was established with the intentions of organizing and providing an integrated route for the development of arrangements in Water and Power Sectors, that was therefore under the supervision of the respective Electricity and Irrigation Department of the Provinces.

In October 2007 the decision was taken to split WAPDA into two separate objects that are WAPDA and Pakistan Electric Power Company in short (PEPCO). WAPDA takes responsibility for water and hydropower development on the other hand PEPCO is responsible for thermal “power Production”, transmission, supply & billing.

WAPDA is responsible for investigating, planning & executing arrangements for the following: to generate, transmit and power distribute, to irrigate, water allocation & drainage, to prevent and reclaim from water logging & saline lands, flood controlling & inland course-plotting.

The Authority has a Chairman and three Members working from end to end with a Secretary. WAPDA is included in the companies having largest employers of human resources in Pakistan. WAPDA actually revolves around the three major departments which has there sub departments like any other organization. Every department has three level of posts under which each officer is hired that are technical, managerial and clerical.

The Power Wing

The Water Wing

The Finance Department

The grades of the employees are same according to the posts regardless of the department they are working in WAPDA.

Mission

Achieve and maintain the highest degree of efficiency, reliability and responsiveness as a public service organization for variety of customers. Public and company workers’ 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 key to our success.

Vision

As the leading electricity distribution company, strive to provide un-interrupted electric supply and quality service to all customers at the minimum possible cost.

Objectives

WAPDA’s objective is to provide smooth and reliable flow or supply of electricity. In case of any disturbances with the electricity flow, they intend to restore it as soon as possible so that locals of Pakistan don’t face any issue because of the interferences. To maintain the supply they accurately and with time read the meter and go for the billing system. They facilitate the locals in case of the new connection request in as less time as possible. They are following an open door policy to make their consumers as comfortable as they can and enjoy every luxury of life. Other than that in case of in time payments made by the customers they are provided with some special concessions. To facilitate the consumers there are franchises and WAPDA offices located in every area of Lahore to deal with day to day issues and emergencies faced by the people and provide them with solutions, not just this the customer service centers are 24/7 present for the feedback of their customers. In addition to that they also care for their labors and workmen with proper training to adopt safety measure while working on lines to avoid any sort of mishap; they actually take steps for the welfare of the company and creating sense of belonging amongst company employees that eventually leads to the well-being of the whole country. They also create aware among consumers with energy saving campaigns through public service messages. Another objective is of creating and maintaining positive image of WAPDA in the minds of the consumer with smooth flow of electricity in all over Lahore and other cities of Pakistan.

Corporate Entities

WAPDA, the Pakistan Water and Power Development Authority, was created in 1958 as a semi-autonomous body for the purpose of coordinating and giving a unified direction to the development of schemes in water and power sectors, which were previously being dealt with, by the respective electricity and irrigation department of the provinces.

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Since October 2007, WAPDA has been bifurcated into two distinct entities i.e. WAPDA and Pakistan Electric Power Company (PEPCO). WAPDA takes responsibility for water and hydropower development whereas PEPCO is in charge for the administration of WAPDA’s fourteen public limited companies in the parts of thermal power Production, transmission, distribution and billing. These are as follows:

4 Companies of Production of Thermal Power -GENCOs:

Southern Production Power Company Limited GENCO-1, operating from Jamshoro district Dadu near Hyderabad, Sindh.

Central Power Production Company Limited GENCO-2, operating from Guddu district Jacobabad, Sindh.

Northern Power Production Company Limited GENCO-3, operating from TPS Muzaffargarh district Muzaffargarh. Punjab.

Lakhra Power Production Company Limited GENCO-4, operating from WAPDA House, Lahore.

1 National Transmission and Power Dispatch Company -NTDC

9 Distribution Companies (DISCOs) are as follows:

Lahore Electric Supply Company Limited- LESCO

Gujranwala Electric Power Company -GEPCO

Faisalabad Electric Supply Company -FESCO

Islamabad Electric Supply Company- IESCO

Multan Electric Power Company -MEPCO

Peshawar Electric Supply Company -PESCO

Hyderabad Electric Supply Company Limited -HESCO

Quetta Electric Supply Company- QESCO

Environmental Analysis

Currently Pakistan is going through a severe energy crisis. Even with the strong growth in economy since the past decade and resultant increasing demand for energy and still no appropriate actions have been taken that enables installing additional capacity that generates the essential energy sources. As it is very much evident form the amount of load shedding that is occurring in Pakistan that the demand is way more than supply and has become the most frequent phenomenon in the course of recurrent power shutdowns. Pakistan needs about 14000-15000MW electricity per day; on the other hand demand is anticipated to raise approximately 20,000 MW per day. At the moment it has an ability to generate almost 11, 500 MW per day which gives the deficit of more or less 3000-4000MW per day. This underperformance has a bad impact on the industry, commerce and people in their everyday life. The feasible actions are required on immediate basis that would be to preserve all levels of power, utilize all accessible bases to develop the overall Production of energy. Apparently there is news that government is having thoughts of importing energy from Iran and Central Asian Republics and utilizing original sources like hydel, coal, waste, wind, and solar power nit just this but also additional alternate and renewable energy sources other than nuclear power plants for Production of energy. It is totally uncalled for that if the country wants to carry on its trade and industry development and perk up the excellence of life of its people then sober efforts are needed in enclosing a rational energy policy.

The country has pitched into energy crisis since the year 2007 that results in increased demand in electricity which crosses the threshold of double digit figure following increasing in sales of electrical and electronic appliances on lease finance. As per Pakistan Economic Survey the utilization of electricity has gone up by 8.6% within first three-quarter of last fiscal year. Nevertheless the top management of WAPDA sustains that electricity demand heaved up to 13% within last quarter. As per the survey the household sector as by now the largest consumer of electricity accounting for 44.2% in overall electricity utilization, on second number is the industries by 31.1%, third agriculture 14.3%, fourth further government sector 7.4%,fifth commercial 5.5% and street light 0.7%. Observing the precedent tendency and the future progress, WAPDA has also made some amendments in its load estimation by 8 % per annum adjacent with prior forecasts of 5 % on average.

Electricity Production

The electricity production segment in Pakistan comprises of hydro, thermal and nuclear power plants. Approximately 31 % power is produced by hydel system, 66.8 % by thermal structure and the remaining 2.2 % is produced by nuclear power production structures.

Hydel Production

After the partition Indo-Pakistan in 1947, Hydel production capacity was only 10.7 MW divided as 9.6 MW – Malakand Power Station & 1.1 MW -at Renala Power Station in the Pakistani region. With time several small and medium scale projects were built like the first water storage dam also a power house at Warsak that to rose hydel capability to approximately 267 MW up till 1963.

In 1967 & 1977, Mangla Dam on Jhelum River and Tarbela Dam on Indus River came into being for the provision of power production. The 13 hydel stations capacity is as follows:

Capacity

The electricity load trend in Pakistan differs in every season; and most of the load is in the summer season. The power production and maximum load figures is given as follows:

The projected or estimated demand of electricity from 2015 till 2030 based on the past trend is given as follows:

Consumption

The consumption pattern of Electricity is given as follows:

Governing Structure

The Ministry of Water and Power takes responsibility including all policy affairs that are relevant with the growth of water and power resources. Moreover that it operated some of the definite tasks like analyzing strategic and financial formation for the future big scale plans for both public and private segments while keeping in mind the technical feasibility of those plans.

Still the amended load forecast has been unsuccessful with all measurement that results in no other solution with the Authority other than beginning with load shedding, and every year with additional number of hours per day for the load shedding which has negative impact on economy in every way. All that is required at this point in time is a quantum leap in the production of electricity in not so severe situation to regress the potential of load shedding in upcoming years owing to decrease in slit between demand and supply of electricity at peak hours.

Literature Review

In the research paper, “A study of the relationships between compensation package, work motivation and job satisfaction” written by Jacques Igalens & Patrice Roussel, a theoretical framework centered on expectancy and discrepancy theories helps in having a proper understanding of the way that factors of entire compensation provided to the employees to some extent have a potency to sway work incentive and job satisfaction. As observed, the prime features of complete incentive program have an impact in a way to increase in different feedbacks by employees. Two samples of employees were taken into consideration one was of 269 relieved employees and 297 non-relieved employees, were the one to take into account individually with the purpose of examination, to classify the distinctions in the responses of these two assemblies. The associations between the components of total compensation, work motivation and job satisfaction were evaluated by a structural equations model with LISREL VII. There were pitches made to foresee the circumstances of compensation efficiency on work motivation and job satisfaction in the traditional framework of employment in France. The three main deductions of the study were:

In certain circumstances, personalized compensation for exempt employees acted as motivation for work.

Flexible pay for nonexempt employees doesn’t motivates or increases job satisfaction

Incentives of exempt and nonexempt employees don’t motivate or increase job satisfaction.

The figure explains gives a better view on the interrelations between the two models more clearly.

There are three possibilities of this study that are in different orders. The first point suggests the learning of the relationship with some of the bases of pay satisfaction and the method of work motivation. In addition to that Greenberg (1987) and Kanfer (1992) propose the associations amongst organizational justice and work motivation can be observed with an integrated model of the motivational practice. The second point as a progression method of this investigation helps to improve the examination as per the assured discrete standards like as membership of a trade union, while as per the contextual variables of Mitchell (1997) suggests that organizational culture adds to one of these related variables that can be analyzed to classify the focus population. The third point can be linked to transcultural research, this model affects entirely with the interfaces of perceptual variables in the developments of motivation and satisfaction. The third point is actually an approach to the individual would enable to help in contrast of these mechanisms concerning employees of some countries.

The paper named, “Motivation Crowding Theory” written by Bruno S. Frey and Reto Jegen.

The motivation crowding effect revolves around the disguise intermediation through monetary motivations or punishments may destabilize and in diverse distinguishable forms fortify intrinsic motivation. Nowadays, the theoretical prospect of motivation crowding is acting as prime matter of discussion amongst economists. This paper demonstrates that the effect is also of empirical evidence in sustenance of the presence of crowding-out and crowding-in effect. The study is centered on conditional indication, laboratory studies by psychologists as well as economists and even in field research by econometric studies. The parts of confirmation that came in front suggest that comprehensive and distinctive fields of the economy and society have been composed for some different countries and durations of time. The effects of Crowding hence are explained as an experientially significant occurrence that has a tendency to further in certain situations to control the outdated price effect.

Economics states that the likelihood of exterior interferences through motivations or punishments crowding-out intrinsic motivation in unalike recognizable circumstances has commonly been acknowledged as the abstract level; on the other hand the theory is also doubtful in the eyes of various scholars. However maximum numbers of critical views are in favor of the observed significance of the crowding effects. This study indicates that this uncertainty cannot be justified and that stout experiential proof does shows its presence as for crowding-out and crowding-in. This conclusion is based on circumstantial evidence, laboratory confirmation by both psychologists and economists, in fact not juts then but also field confirmation by economy and society: youngsters’ learning behavior; parents willingness to go for given medication; financial and figurative rewards for agreeing with several laboratory errands; the propensity to adjust in the laboratory scenery, replicating work settings in an organization; the expanse of reliance demonstrated in a laboratory state of unfinished agreements; the response of managers to different types of administrations by their superiors; the inclination to provide with deliberate job; the inspection of timetables in daycare hubs; the on-time flight presentation in the industry of airline; the keenness to admit atomic waste sources, especially in reference of pleasing person’s tax responsibility that is called tax morale. The empirical conclusion has been composed for numerous diverse countries and time durations.

Hence it is safe to say that Crowding affects are an empirically applicable occurrence. Nevertheless without any doubt it is not compulsory that it conquer over the traditional one as compared to price effect. Certainly the effort can be seen both in theory and as an empirical application to classify the surroundings that affect the crowding-out and crowding-in outcomes ascend, and the circumstances which have been anticipated to govern the qualified price effect.

Another research paper entitled “The Motivational Properties of Tangible Incentives” by the authors namely Scott A. Jeffrey and Victoria Shaffer states that numerous organizations located in North America habit tangible incentives that are explained as the physical articles that are in terms of noncash but still are depending on presentation, to compensate and motivate the employees. The example can be taken very mush heard regarding the pink Cadillac’s that Mary Kay Cosmetics giveaways to its best sales agents; conversely, the most uncommon notion that some people knows of what degree this form of incentive is followed in organizations. A research by an industry concluded that 78percent of organizations are following the notion of providing tangible incentives to their sales personnel and 67percent of organizations are consuming the same incentives for non-sales workforce. The study (Tim Houlihan, personal communication -April 2006) officials of the industry anticipate that nearly US$1 billion was expended on this form of incentive in 2004 and that numeral is projected to rise at around 7percent per year. Even though 1 billion dollars of expenditure might appear insignificant relative to whole U.S. payroll of above the amount of $4 trillion dollars still there is as such no examination has been done on the factors of tangible incentives that help them to be motivating cause for employees. Thus substantial sum of capital is being used up on tangible incentives by a partial consideration of the way it can be utilized at its best. The point that is noticeable here is that tangible incentives which are non-monetary ought to be measured extrinsic motivators since they are usually depending on presentation and are delivered by a cause other than of the person. For that reason, this paper does not try to cover the consideration on the subject of the usage of extrinsic benefits with their outcome by intrinsic benefits. Somewhat, the emphases is on features of tangible benefits and the reason behind workforce think of it as motivating factor. It introduces and explores the psychological ideas of justification, social reinforcement the ability to be separate and evaluation and inspects the way it has an impact on motivational element of tangible benefits.

Granting the 1 billion dollars paid on tangible benefits are insignificant as compared to number of employee advantage even then it is quite a considerable size of money. Keeping in mind the great amount consumed still the deficiency of demanding research in this part needs the attention. Furthermore, certain theories that are explained in this article might be in use for organizations underutilizing this sort of incentive. Starting off with the part that firms are making a large amount of expenditure on these incentives with limited knowledge on the subject that could actually support with some theory. There are some discussions on the mode with which it can be implied that helps in its utilization of these tangible incentives. Some of the psychological mechanisms have also been discussed and presented on justifiability, social reinforcement and separability. The motivational factor of tangible benefits is explained with pinpointing those elements of these enticements with respect to some of these concepts. There is no such argument on the removal of cash incentives in approval of tangible incentives though there is no doubt that cash is and always will be an essential influence. Research in this part can help to conclude at what time they had better is practiced, through which kind of employees would be utmost effective and in what way these incentive schemes should be applied. Considering by what means tangible benefits upsurge workforce motivation having the prospective to importantly expand the efficacy of all packages of incentives.

Added to above information this paper “”Total Reward”: Its usefulness as a strategic lever in motivating staff and affecting their workplace performance” written by Charlotte Clark, examines in what way “Total Reward” would be useful with respect to stimulate staff and the way it has an impact on their performance. “”Total Reward”” able to generate reasonable benefit (Hiles, 2009), it is even believed “perhaps the ‘greatest breakthrough in compensation and benefits since health care plans started to show up along with pay packages’ ” (Giancola, 2009).

“Total Reward” includes four types that are pay, benefits while learning & development and work environment. Herzberg’s “two factor theory” likewise assorts tangible & intangible factors. Tangible elements considered as ‘hygiene’ aspects avoid job dissatisfaction while intangible factors as ‘motivators’ regulate the strong point of satisfaction. Workforce getting “Total Reward” would consequently get exceeding content since they obtain together ‘hygiene’ factors and ‘motivators’.

Last but not the least the research by the name of “Impact of Reward and Recognition on Job Satisfaction and Motivation” which is an empirical study by Rizwan Qaiser Danish and Ali Usman identifies that human resources are the utmost significant midst all the funds an organization possesses. In the direction of retain efficient and knowledgeable staff in an organization it is actually vital in general act of an organization. Motivated personnel would assist in making a group competitively supplementary value added and lucrative. The present study is an effort to bargain the foremost aspects that inspire forces and explains the affiliation with the reward, recognition and motivation when working in a corporation. The data was gathered from employees of varied category of societies to get widespread demonstration of sectorial arrangement. The numerical examination exhibited that altered scopes of work motivation and satisfaction are meaningfully interrelated and reward and recognition have great influence on motivation of the employees. Effects of the study for administrators and policy creators in the perspective of human resource performs have been discussed and came out to be pretty effective as a motivating factor.

The purpose of the study was to discover the sway of reward and recognition on motivation and job satisfaction. Investigation takes a close association amid more than a few extents of work motivation and satisfaction but appreciation sideways with the job itself and operating processes have revealed little mean values and irrelevant relationship. With respect to Pakistan’s framework the employees reflect that there is a slight chance of gratitude from the supervisor in doing a good job. These shortages can be sorted in case of superiors motivate their subordinates with suitable acknowledgment and gratitude by making little efforts as showing concern about their family problems. Employee’s contribution in the resolution constructing procedure will act as an encouragement and builds enthusiasm while employed in the organization. in addition to that the occasional salary increments, allowances, bonuses, fringe reimbursements and other compensations provided consistently as well as on particular stages retains their morale high and helps them to be more motivated. this research in addition to be revolving around the motivational process for any employee working in any of the organization also put emphases in building the relationship between employees and employer.

Human Resource (WAPDA)

The key areas of human resources includes hiring process, promotion process, disciplinary process, training process, complaint process, competencies of human resources and appropriateness of job descriptions. These functions were accessed with reference to the policies and procedures adopted by WAPDA for insuring that competent staff are inducted in transparent manner for handling the funds disbursed y donor agencies.

Based on the review of Human Resources Management, it appears to be that overall systems are in place and internal control system is effective.

Framework

WAPDA is following certain human resource Policies and Procedure Manuals that are:

Pakistan WAPDA service of Electrical Rules 1965

Pakistan WAPDA Common Cadre Administrative Posts Service Rules 1965

WAPDA Manuals of General rules

These rules were compiled by the Directorate of Rules (Services and General Administration) WAPDA by incorporating all the instructions of Authority form time to time till 31st December 2008 though these rules are still incorporated and are being followed religiously said spokesperson WAPDA. These rules apply to all WAPDA employees irrespective of the service or discipline they belong.

Organizational Structure

WAPDA is divided in three different sectors/wings that are sub divided in to other departments. The highest BPS scale in WAPDA is 21, the highest rank in WAPDA is of the Chairman and another employee that is at the same level is the Secretary Power who isn’t concerned with any other employee of WAPDA, he is just the representative /spokesperson of Government in the organization who participates in some of the government related issues or affairs related to WAPDA. Below him are the five employees three of them are the Members/Senior GM (BPS 21) of the three different wings that are water, power and finance and other two are PSO (BPS 18) and Managing Director of Administration (BPS 19). Under Member Power comes 5 General Managers (BPS 20) of different department but have the same level; Finance, Hydel , Training, Principal (WSC) IBD and Principal (WEA) FSD. Under Member Water come 14 different General Managers (BPS 20) of different departments. Member Finance has an authority on 5 different ranks; one of them is of BPS 20, two of BPS 19 and two of BPS 17. Managing Director of Administration (BPS 20) has two officers working under him of BPS 19. All other details are explained in the chart that is given below explains the WAPDA organizational structure well enough:

Organization Strength

The below given table identifies the total strength of WAPDA employees being sanctioned, Regularly working, re- employed, are working on contract basis, are on deputation, working on daily wages. The number of vacant officers and other staff is also mentioned but those numbers of people are excluded from the total strength.

Summary

Category

Sanctioned

Regular

Re- Employed

Contract

Deputation

Daily Wages

Total

Vacant

Officer

2413

1665

7

150

8

0

1830

583

Staff

15990

11430

11

1475

8

595

13519

2471

Total

18403

13095

18

1625

16

595

15349

3054

Pre- Award Survey Of Water and Power Development Authority (WAPDA) 2012

Power Wing

The table given below identifies the strength of the employees that are sanctioned, regular, re-employed, are working on contract and daily wages, and went o deputation or the seats that are vacant only in the Power Wing of WAPDA.

Category

Sanctioned

Regular

Re- Employed

Contract

Deputation

Daily Wages

Total

Vacant

Officer

483

312

1

83

0

0

396

87

Staff

5238

4089

1

312

1

40

4443

795

Total

5721

4401

2

395

1

40

4839

882

Pre- Award Survey Of Water and Power Development Authority (WAPDA) 2012

Water Wing

The table given below identifies the strength of the employees that are sanctioned, regular, re-employed, are working on contract and daily wages, and went o deputation or the seats that are vacant only in the Water Wing of WAPDA.

Category

Sanctioned

Regular

Re- Employed

Contract

Deputation

Daily Wages

Total

Vacant

Officer

1373

970

4

42

4

0

1020

353

Staff

8471

5604

9

948

7

518

7086

1385

Total

9844

6574

13

990

11

518

8106

1738

Pre- Award Survey Of Water and Power Development Authority (WAPDA) 2012

Common Services

The table given below identifies the strength of the employees that are sanctioned, regular, re-employed, are working on contract and daily wages, and went o deputation or the seats that are vacant only in the Common Services of WAPDA.

Category

Sanctioned

Regular

Re- Employed

Contract

Deputation

Daily Wages

Total

Vacant

Officer

557

383

2

25

4

0

414

143

Staff

2281

1737

1

215

0

37

1990

291

Total

2838

2120

3

240

4

37

2404

434

Pre- Award Survey Of Water and Power Development Authority (WAPDA) 2012

WAPDA Strength

The total strength of WAPDA employees in year 2012 in all the three wings are as follows:

BPS

S