You are on page 1of 1

Introduction The case study revolves around Energy crisis in the country and how Sitara Energy is facing

crisis within the organization. Sitara Energy is facing the problem of dissatisfied employees with low motivation levels and parallel to that the company is missing out on the tremendous growth opportunities in the market. Sitara Energy Limited is one of the 17 publically registered companies electricity and power sector in Pakistan. While Pakistan is facing serious energy crisis, creating growth opportunities for the power industry, Sitara Energy remains to the plant with the least capacity and paid up capital. While Sitara Group of industries remains to be one of the largest industrial groups on the country, Sitara Energy has shown 100% increase in the sales volumes in the last three years whereas the net profitability is only 2.4%, indicating huge cost of goods sold. The financials of the company are at a decline and so is the motivation in employees who are feel they are underpaid. Problems Keeping personal file indicates lack of transparency in the company Lack of delegation of authority as CEO makes most of the decisions as indicated in the case that medical subsidy approvals are made by the CEO; the employees final interview is taken by the CEO; managers just get the final candidates name that is to be hired Higher management has limited influence on company policies Sitara group has a broad spectrum of the business, Energy does not seem to be their focus High cost of sales Severe financial situation, low cash in hand, quick ratio = 0.51, Continuous decrease in dividend Workforce of 300 is being managed by 2 people, i.e. 1 for every 150 people Rapidly increasing dissatisfaction in employees Pay scale is not defined properly under paid employees Lack on upward and downward communication employees are not aware of their benefits and management(CEO) is not aware of the staff problems Narrow growth opportunities within company No succession planning No job rotation

Core Problem: CEO

You might also like