Water And Power Development Authority Wapda Commerce Essay

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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.

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

Staff Designation

Strength

Management (Chairman And Secretary Power)

2

21

Members & Senior GM

4

20

General Manager, Chief Engineer, CEO

64

19

Director/ Manager, Senior & Resident Engineer Etc.

260

18

PSO, Deputy Director/ Manager, Executive Engineer, Security Officer, Store Keeper, Press Manager, Sr. B &AO/ Audit/ Finance/ Account Etc.

623

17

Asst. Director/ Design Engineer/ Research Officer/ R.E/ Store Manager, Audit Officer, Junior Engineer, Budget & Account Officer, Medical Officer Etc.

877

16

Asst. Research Officer/ Audit Officer/ Telecom Officer, Computer Operator/ Teacher, Senior Superintendent, Foreman, Stenographer G-I Etc.

820

15

Account Asst./ Cashier Assistant, Budget Examiner, Inspector, Junior Superintendent, Stenographer G- I Etc.

285

14

Account/ Audit Assistant, Cashier, Junior Inspector, Librarian, Stenographer G-II Etc.

1044

13

Head Draftsman, Foreman, Special Security Guard, Store Supervisor Etc.

49

12

A.C Supervisor, Asst Foreman, Computer/ Data Entry Operator, PABX Operator, Stenographer II Etc.

474

11

Research Assistant, Mechanic, Electrician, Sub Engineer, Stenographer II, Accounts Assistant

1109

10

Driller, Security Inspector, Telecom Mechanic Etc.

32

9

Senior Clerks/ Electrician Etc.

476

8

Hydro-Grapher, Mechanic, Auto Electrician Etc.

287

7

Junior Clerk, Driver, Machine-Man, Plant Operator Etc.

1803

6

Junior Machine-Man, Driver, Field Assistant Etc.

1740

5

Computer Clerk, Electrician, Junior Clerk/ Machine-Man Etc.

1374

4

Tube-Well Operator, Field Helper, Drilling Helper Etc.

293

3

Bus Conductor, Watchman, Cleaner, Store Helper Etc.

465

2

Attendant, Battery-man, Watchman, Cleaner Etc.

2134

1

Aya, Watchman, Skilled Labor, Service Man Etc.

1134

Total

15349

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

Research Statement

'Non-monetary benefits lead to employee motivation more in WAPDA employees relative to monetary benefits as compensation'

As every employee of the company are given some sort of compensation to make encourage them or motivate them for working with them and accomplishing the tasks and job that are assigned to them in a well-defined manner that will benefit the firm and the overall economy of the country. Same is as with WAPDA as they are given compensation benefits in non-monetary terms that are Job Incentives, Medical Facilities and Travelling Benefits. Other benefits are not included in the research as those are available in other organizations as well. These three are particularly presented to WAPDA employees.

This is irony of life that in today's world of marketing where everything is selling on the basis of how marketers arouse the need of their product in the market while on the other hand WAPDA is the only organization which is advertising to sway customers to lessen the use of electricity.

Now days when inflation has spread like a virus, it doesn't just affected Pakistan's economy but turned the whole economy in a very bad shape. However, electricity is a constantly developing technology and the aspects one currently associates with electricity and electricity Production are nowhere close to the original features. In the past century and a half, electricity has steadily evolved from a scientific curiosity, to a luxury of the affluent, to a modern need. Along the way, it has been shaped by a variety of non-technological factors: economic, political, social, and environmental, to name a few. So the reason for choosing the firm is that WAPDA is the only organization that is supplying and generating electricity to the whole Punjab. As mentioned above prior 1998 WAPDA had both Production and supply of electricity but after that policies changed and now nine different distribution companies under the authority of area based distribution working under PEPCO are handling supply of electricity. This has divided the burden from one organization to different distribution companies as relative to WAPDA institutes to make the whole procedure more effective and efficient.

As WAPDA is a non-profit organization and is under the authority of Government, getting hired in it isn't that easy. Interested candidates have to work really had to be a part of this organization. If an engineer is hired, he will get hired as the lowest grade in officers (BPS 17) and eventually make his/her way through the highest post (BPS 21). As it is a government owned, the procedures are pretty sluggish as approvals, signatures of the authority is needed for any query that has been floated in the organization and this could be one of the reason that even if the orders ahs passed of promoting any employee, 6-7 months are needed by the employee to get the written and official letter to his hand. Even with these issues faced by WAPDA employees, people still consider WAPDA as one of the best organizations. So the reason for doing my research to understand the reason behind such notion, it is more explained in the part of the research objectives.

The objective of this while research is to understand that the only thing that could motivates any employee in such environment would be the pay they are getting paid, which is certainly not enough if looking at it from this perspective that usually people who are getting hired in WAPDA are not from that rich background, and usually has been observed are supporting their families as well on asking they mentioned that it's not just the pay it's the compensating non-monetary benefits that are offered to them, and not just to them but to their family as well. The most mentioned were:

Job Incentive (the emphasis was on the house allowances/accommodation and free supply of units as they mentioned that electricity charges are high (decided by the government) and with such income they wouldn't have been able to afford it).

Medical Facility the whole medical complex is provided to the WAPDA employees that without any discrimination provide all of the employees regardless of their grade are provided with all the facilities one must have for a healthy living.

Travelling benefits employees consider this very thoughtful of WAPDA that they are provided with though small but one of the major issues they face while working as they are provide of transport issues. WAPDA has its in house transport service to pick and drop employees (especially employees that are working in the fields) and other travelling compensations that are needed by the employees.

Research Objectives

The level of importance of EACH compensation benefit as a package make available to them.

The opinion on having cash in exchange of these monetary benefits that are provided to them.

The extent of motivation level of working in WAPDA as an employee because of compensation benefits provided to them.

All the other factors job analysis, job fit, organization fit, job satisfaction are kept constant to understand the relationship between these compensation benefits and motivational level to work in WAPDA having to face the major issues that at times leads to de-motivation like work environment, work relations, appraisal issue, appreciation etc.

Research Methodology

Research Design

This research paper has been conducted with the intention of understanding the level of motivational level in the WAPDA employees with both and quantitative and qualitative research methods.

Quantitative Research according to Zikmund in his book Research Methods it is "to determine the quantity or extent of some phenomenon in the form or numbers". Two types of qualitative research has been used that are; primary and secondary. Primary research is data gathered and assembled specifically for the research project at hand which is done for this research by floating a questionnaire and getting them filled by WAPDA employees and later the result has been calculated by tabulating the data and representing them through graphs; pie charts, line charts, bar charts. The second type of research that is secondary research is data that has been previously collected for some project other than the one in hand, in this research it has been gathered by literature review from some journals, newspaper articles, and WAPDA's documents like gathering historical data from to explain the energy issues faced by Pakistan in the past five years. This research type is advantageous in this way that numbers are self-explanatory and doesn't require that much justification.

Research Tool

The 5 page questionnaire (Appendix) has been constructed having 5 parts that are general; gathering demographic information about the respondents, the three variables happen to be compensation benefits; job incentives having 8 items, travelling benefits having 4 items and medical facilities having 4 items and last one that asks about their opinion about the overall compensation systems having 3 items. 40 questionnaires were floated out of which only 30 were useful for the research.

Sample Size

Out of all the employees of WAPDA only accessed employees were those who are residing in Lahore, and in Lahore only in WAPDA House. 30 Respondents were able to fill in the questionnaire. Sample size specification includes employees both male and female of WAPDA within the basic pay scale of 11 till 21 working in WAPDA House, Lahore.

Methodology Justification

This paper have been written using quantitative research due to the fact that it's more evident in terms of having a support with numerical values that increases the confidence level of authenticity. This method was beneficial in the sense that data was gathered through primary research that means that all the facts, statistics, figures and everything that has been collected is first hand and isn't based on any sort of assumptions or notions that have not been identified by the sample population in this case the employees. The questionnaire was floated and was asked them the questions that were directly related to the research, that will help this research to get to the conclusion. Secondary research has been used to identify the factors and other possibilities that have an impact on the motivation of employees and not just in Pakistan; not just this but help to identify the practices of motivating employees in other countries and how those practices if followed in Pakistan would be helpful for the organizations to make their employees more motivated and satisfied with the job as well as the company.

Research Constraints

Due to choosing the government sector there are certain limitations that are and will be faced. The first and the foremost is very limited information related to the organization and for every bit of information one needs to consult the WAPDA employees and their written records which are not easily available either. Another challenge that has been faced though is still related to it would be of their confidentiality, being the government owned organization nothing all the information and data have discretion issues and they doesn't encourage any sort of research to be done on them. Thirdly the research is tad biased as only 30 questionnaires were filled out of 4839 employees. Fourth the data was available only till year 2010.

Data Interpretation

There are 5 different sections of the questionnaire. Data has been analyzed with the same sequence as given in the questionnaire starting from general demographic questions to other different types of compensation benefits. Reference: Appendix: Questionnaire

General

The first part has 5 questions regarding the demographics of the respondents, which are as follows:

Gender

The first question focuses on the gender distribution of the employees of WAPDA. Out of thirty respondents only three questionnaires were filled by females that make only 10percent percent of females while twenty seven of them were males and that makes 90percent out of 100. This simply interprets that most of the employees that are working in WAPDA are males. Reference: Appendix: Figure 1

Age

Second question focuses on the age of the employees. There were three options in terms of age bracket were given to them. First is 20 - 30 years, second is from 31 to 40 years and last one is above 40. As per the tabulation of the respondents 60 percent of the sample size falls in the third category that is above 40. While 27 percent of employees are in second category and only 13percent falls in the first option that is from 20 to 30 years. This simply means that most of the employees in the BPS 11 till 21are above 40 years of age. Reference: Appendix: Figure 2

Sector

The third question asks from the employees regarding in which sector they work, three options were given to them that are water, power and finance. As there are sub departments within each sector. Out of thirty respondents 11 were in Water sector that makes 37percent of total sample size, 9 were in Power sector that makes 33percent and 8 were in Finance sector that makes 30percent of total respondents. Reference: Appendix: Figure 3

Post (Skill level)

The fourth question was focusing on the post or skill level of the WAPDA employees. This means that for what purpose are they hired and also varies due to their educational background like engineering (civil, electrical), business administration or masters. Out of thirty respondents 40 percent of them possess technical posts, 43 percent are at managerial posts and only 17 percent are at clerical positions. As the respondents were just from BPS 11 till 21 very few of the officers comes to BPS 17 or above. And the only reason would be of that employee being hard-working and is in WAPDA for long ago. Reference: Appendix: Figure 4.

BPS

The fifth question is regarding the BPS (basic pay scale) or the grade is actually the designation with which they are working in WAPDA, it basically is the level of the employee. There were four options that were the BPS grades from 11 to 13, 14 to 16, 17 to 19 and last option is 20 to 21. Eleven respondents fall in the second option that is within 14 to 16 BPS, ten in 17 to 19 BPS, then seven falls in the option of 11 to 13 BPS and only 2 respondents were in the fourth option that is within 20 and 21. Reference: Appendix: Figure 5.

Job Incentives

This the second part of the questionnaire that actually focuses on the on service benefits that are given to the employees as a non-monetary compensation other than the pay that are provided to them. There are different benefits that are given to them so this question basically focuses on that each one of these are basically to what extent are important in their opinion. That is why each question is given with a likert scale it is the continuum from 'extremely important', 'slightly important', 'neutral, 'not very important' and 'not at all important'. Each benefit is given with these options in the form of a likert scale and respondents have asked to select their option in terms of their view with respect to different benefits provided in the job incentives.

Free Supply of Electricity Units (KWH)

Every WAPDA employee is provided with some free units, these units are provided to them in the form concession as being part of power Production and formerly supply of the electricity.

According to one of the office order it is stated that the authority has been pleased to enhance the concession of free electricity to WAPDA employees that has been incorporated since November 1st, 1991. The entitlement under each category of employees will be as under:

Sr. No.

Category of Employees

Amount of Concession (monthly)

1

Staff in grade 1-4

100 units

2

Staff in grade 5-10

150 units

3

Staff in grade 11-15

200 units

4

Staff in grade 16

300 units

5

Staff in grade 17

450 units

6

Officers in grade18

600 units

7

Officers in grade19

880 units

8

Officers in grade 20

1100 units

9

Officers in grade 21

1300 units

This allotment has been made by the General Secretary of WAPDA in Hydro Electric Labor Union.

A consumer is charged with the rates that are given below:

First 100 units will be charged on the rate of Rs. 5.790 per KWH

Next 200 will be charged at the rate of Rs. 8.110 per KWH

Next 400 will be charged at the rate of Rs.12.330 per KWH

After that all the consumed units will be charged at the rate of Rs. 15.070 per KWH

The cost calculation of the free units (kwh) allotted to the WAPDA employees in terms of compensation and on service benefits, if not provided will be given some amount of money equal to the cost of the kwh units that can be consumed in a month. The allotment of the units is on monthly bases and differs from grades of the employees which are from BPS one (1) to twenty-two (21).

If the amount is calculated that how much cost is of these concession units that are allotted to WAPDA employees in terms of the price rate of the each unit that is paid by the private consumer on hourly basis as the rates are different at the different time of the day, will give the amount of money that is spend to provide the WAPDA employees with these units. The calculation will be done in this way that the total number of units allotted to the WAPDA employees of each grade and multiplying it with the rates that has been charged to the general public and adding the total cost to understand the total amount that are provided to the WAPDA employees in the form of the concession units as a compensation.

Accounting of the units allocation (kwh) in terms of the price that has been spent on the employees of the WAPDA as a compensation to motivate them and to perform better in the job hence making overall performance of the organization making better.

BPS

No. of Posts

(a)

Units Allocated

(b)

Price Allocation According To The Units

(c)

Amount Spent On One Employee

(d)*

Total Amount Of Cost Spent On Total Number Of Employees According To Bps

(e)=b x d

Annual Accounting of the Cost

(f)=e*12

21

7

1300

100 x Rs. 5.790

200 x Rs8.110

400 x Rs 12.330

600 x Rs15.070

16,175

21,027,500

2,52,330,000

20

64

1100

13,161

14,477,100

1,73,725,200

19

260

880

9,846

8,664,480

1,03,973,760

18

623

600

5,900

3,540,000

42,480,000

17

877

450

4,051

1,822,950

21,875,400

16

820

300

2,201

6,60,300

7,923,600

15

285

200

1,390

2,78,000

3,336,000

14

1044

200

1,390

2,78,000

3,336,000

13

49

200

1,390

2,78,000

3,336,000

12

474

200

1,390

2,78,000

3,336,000

11

1109

200

1,390

2,78,000

3,336,000

Total

51,582,330

6,18,987,960

*Calculation method is given in the Appendix: Table

The total amount that has been spent on the allocation of the free electric supply units to WAPDA employees from BPS 11 to 21 is Rs. 6,18,987,960 approximately annually in Pakistan Rupees.

The question focuses on that to what extent in WAPDA employee's opinion are these free units are important as a job incentive. Out of thirty respondents majority of the respondents that would be seventeen in number, selected the option of it being extremely important. Eight respondents think that it's slightly important while three respondents are indifferent with this option. And only two respondents (Each) selected the last two options given that were not very important and not at all important. Reference: Appendix: Figure 6

Family Benefits

These are the benefits as is self-explanatory with the name are not just given to the employees but also to the family members. In case of a married employee his own family; that would be his wife and children and his parents, and in case of a single person his parents and his siblings only are allowed to be benefited with this facility. These benefits include medical facilities for the family members including surgical facility, prescription allowances, some of the orderly allowance like servants and a driver and take home car as well as accommodation facility depending on the employees BPS and his/ her marital status. In employees view these benefits are extremely important as twenty of the respondents actually selected the option of it being extremely important. Seven of the respondents ticked the option of slightly important, one of the respondents selected the option of being indifferent and only two of the respondents thinks that it's not very important while none of the respondent considered this option to be not at all important. This simply concludes that majority actually considered this is as a benefit for the employees of WAPDA. Reference: Appendix: Figure 7.

General Provident Fund

General Provident Fund is actually a fund that is actually a sort of non interest loan that WAPDA employees can take as per their wish and it is dependent on the employee completely whether they want to pay it back by deducting the amounts of installments form their monthly pay or not. The option of not paying the loan is because this fund or the money in the fund is actually the amount actually being deducted from their pay since they have joined the service with intentions of giving them back when they get retired so that they can live their life after service comfortably. Though as per the employees the most selected option was being 'slightly important' as fifteen of the respondents were in favor of this option. twelve of the respondents believe that it's 'extremely important', two of the respondents considers that neither it's important nor it's unimportant as they have selected the option of 'neutral' and only one of them thinks that its 'not very important'. So it is safe to say that in employees opinion this fund/loan is very important and it has a great value as it can be used in case of emergency and at the time of deficient of loan. Plus it is sort of a saving of a money for the future use without any sort of other service charges that are actually deducted if he same amount is with bank and being interest free loan that is always available as a liquid cash is obviously be preferred. Reference: Appendix: Figure 8.

Accommodation Facility

WAPDA is a governmental organization and an employee working in the government organization is or eventually will transfer from city to city within a province and in rare cases in cities of other provinces. So in these cases they need a place to live in, which WAPDA provides to them depending on their grade. And if certain employee has his/her own accommodation arrangements as in finds a house on rent then WAPDA provides them with limited amount of house allowances to pay the rent, the employee would find the house within the same amount range or he/she has to pay from his own pocket. In case of having to live in the same city the employee has his house he will still be provided with some additional value again depending on the grade as part of the pay. On asking the respondents as their view on this as an incentive eighteen of the respondents believe that it is 'extremely important' and other twelve thinks it's 'slightly important'. None of the employee selected any of the other three options. Reference: Appendix: Figure 9.

Orderly Facility

This refers to providing the officers of only grade 20 and above with a serving assistance at home in the form of a driver, watchman or house maid depending on the employee grant completely or providing them with some amount that is sanctioned by the government, at present it is Rs. 1900 to Rs. 3000, it is provided to the employees so that they make arrangements as per their comfort. Though the respondents aren't in favor of this facility at all probably the reason being it only provided to the grade 20 and above and obviously for majority of other officers it is of no avail. The response came out to some extent as biased, twenty-one of the respondents thinks it's "not very important" and rest nine respondents thinks it's 'not at all important' and none of the other three options have been selected. Reference: Appendix: Figure 10.

Qualification Allowances

These are the allowances that are provided to the employees for professional development and not just provided only when they are working in WAPDA but also after getting retired. The amount is just Rs. 500 to Rs. 600 regardless of the grade of the employee. On service it will be provided as many times the employee appeared for the courses which eventually helps them promote the grade and only once when they get retired on retrieval of the GP fund (mentioned above). The respondents have given mixed feedback majority of the people that makes twelve of them chose the option 'not very important', eight of them chose 'not at all important', five of the respondents thinks it is 'slightly important', four are indifferent about it as they selected the option 'neutral' and only one respondent thinks that it is 'extremely important'. This doesn't seem to be that important in the employees view and it shouldn't be due to the fact that amount that is given to them doesn't benefit them in a wide scale. Reference: Appendix: Figure 11.

Travelling Benefits

These benefits include the costs that incur when the employees are travelling for the business purpose e.g. they went on a course, any of the field visits at the construction site of dams, it also involves the employees those doesn't have their own personal vehicles to come to office or uses public transport for that matter and even if they have their own conveyance they will be accommodated with addition of certain amount of money in their pay range.

Fuel Allowances

These allowances carry the addition of some money in their pay. This basically allows them to use certain amount of fuel per month in case of having their own vehicle and this varies with their grade, the distance of their office from their houses and the engine of the vehicle. This also covers the 20 and above with take home car. Fourteen of the employees consider that this is 'slightly important', seven are indifferent about it and chose the option of 'neutral', four of the respondents consider that it is "not very important', three considers this 'not at all important' and only two respondents thinks that its 'extremely important'. Reference: Appendix: Figure 12.

Take Home Car

This option is just for the employees in the BPS 20 and 21. As because of their seniority and working in WAPDA for such a long time, so are provided with a car that is considered as a property of the government and is given to the employee until he gets retired or dies to some reason. All the expenses and cost that incurs will be paid by the WAPDA as well. The graph explains that eleven of the respondents consider this option as 'slightly important'; nine of them ponder that it is 'not very important'; four of the respondents are indifferent about it while the co incidence is that the two extremes of the graph that is 'extremely important' and 'not at all important' are selected by three respondents each. This is a very mixed response and one can't get into any conclusion with this though it is quite evident that majority of the respondents are in favor of this facility. Reference: Appendix: Figure 13.

Mileage Allowance

In case of travelling out of town or far away on behalf of the office so up to 40 km will be paid by WAPDA. This option is for grade lower than 20 as BPS 20 and above are already compensated with take home car and fuel allowances. According to the pie chart 50 percent of the respondents ruminate that it is 'extremely important', 23 percent thinks that its 'slightly important', 14 percent believes that it is not very important, 10 percent think that it is 'not at all important' and only 3 percent are uninterested about it as they chose the option of 'neutral'. A very varied response is shown by the graph but as half of the respondents consider this extremely important then it must be benefiting the employees in some way. Reference: Appendix: Figure 14.

Transport Facility

Certain employees that are working in really low grade (1 to 15) are provided with WAPDA transport service (bus) picks them from the nearest bus stops, While others officers who wish to avail the pick and drop service they have to pay some charges that is sanctioned by Government will be deducted from their salary on monthly basis as at the moment they deduct 150 Rs. regardless of the distance of the house from office. Looking at the graph it is quite evident that only 37 percent of the respondents think that it is 'slightly important', 23 percent unconcerned with this, 17 percent believes that its 'extremely important' and remaining 10 percent thinks that it is 'not at all important'. The result shows that as majority chose the option of it being slightly important then it comprise of some value in the eyes of the employees. Reference: Appendix: Figure 15.

Medical Facility

As goes by the name this facility covers all the mishaps, accidental and all the necessary nursing services that one is needed. WAPDA doesn't provide any sort of medical insurance, but it does provide them with a complete medical complex, located in every major city of Pakistan (provided WAPDA is operating there). Any facility or resource, equipment that isn't available in the hospital will be paid by WAPDA on the receiving of the receipt from the refereed place as assistance would be needed from outside the facility. There are different levels/wards in the hospital though doctors and nurses for all the patients whether related to any of the BPS of WAPDA employees except for the room that is provided to them.

Prescription Coverage

This coverage provides all the free of purchase all the prescribed medicines only by the doctor of WAPDA Medical Complex. And in case of not available the payment will be made by WAPDA. As private hospitals are pretty expensive as well as the medicines this service actually carries tons of significance in the minds of the employees and same is what is shown in the graph as out of thirty, twenty-three of the employees chose 'extremely important', six considered it 'slightly important' and only one chose 'neutral'. None of the respondent chose the other two options that are 'not very important' and 'not at all important'. Reference: Appendix: Figure 16.

Surgical Facility

WAPDA Medical Complex also provides surgery with complete nursing in the hospital ward (depending on the grade of the employee) with complete medication, treatment and care before and after the surgery of the patient. And that too is totally free of cost. The bar chart gives only one result and that all thirty responses were in favor of it being 'extremely important' and none of them chose any other option. Reference: Appendix: Figure 17.

Dental Coverage

This medical facility as is obvious by the name offers some of the dental services and oral health and issues that can be cured. Though it has a limitation that it doesn't provide all

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