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Karachi Electrical Supply
KESC
Company
KARACHI ELECTRIC
SUPPLY COMPANY

Management Term
Report
PRESENTED BY:
• Farrukh Ali Uqaili
• Aveenash
• Irfan Bhatti
• Muhammad Danish Mujtaba

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INTRODUCTION OF KESC
•The Karachi Electric Supply Company Limited was
incorporated on 13th September 1913 under the
Indian Companies Act, 1882 as amended to date vide
the Companies Ordinance 1984.

The Government of Pakistan took control of the


Company by acquiring majority shareholding in 1952

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INTRODUCTION OF KESC

The licensed area of KESC is spread over entire Karachi


and its suburbs up to Dhabeji and Gharo in Sindh and


over Hub, Uthal, Vindhar and Bela in Baluchistan.

The privatization of the Company has been finalized in


November 2005 with the transfer of 73% shares of


Government of Pakistan along with Management
Control to the new owner via M/s KES Power & others.

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INTRODUCTION OF KESC
•The post privatization ownership structure of the Company
is as follow:

  Ownership No. of Shares


%age of
Shareholding

Govt. of Pakistan 3,403,763,472 25.65%

New Investors 9,611,964,737 73.00%

Others 151,346,774 01.35%

   

Total 13,167,074,983 100.00%

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Mission Statement
To generate, transmit and distribute electricity for the

progress and prosperity of the city and of the country.

To extend our customers expectation with reliable,


stable and affordable electricity. With a service to


match.

To enhance the performance, health, safety and


overall well being of our people and to strive to


recognize their diversity and skills.

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Mission

Statement
To improve our operational and financial performance,
for the benefit of our employees, customers and
shareholders.

To make lasting social contribution to the people of


Karachi.

To communicate in an open, transparent and ethical


way to all our stakeholders at all times.

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Vision Statement of
KESC
• To ensure un-interrupted power supply to the valuable
customers of the Metropolis signifying a productive and
constructive role of KESC in socio economic activities and
revival of national economy by way of sustainable industrial
growth.

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CORPORATE SOCIAL
RESPONSIBILITY BY KESC
What KESC is doing to fulfill the social
responsibility:

• Equilibrium

• Welfare schemes

• Environment

• Sports
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PLANNING PROCESS AT
KESC
PEOPLE INVOLVED IN PLANNING PROCESS:

•Day-to-day planning

•Planning for the next one year

•Planning for the next five years

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PLANNING PROCESS AT
KESC
LEVELS IN PLANNING:

• Station level planning

• Department level planning

• Corporate level planning

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PLANNING PROCESS AT
KESC
EFFECTIVENESS OF THE PLANS:

• Government policies

• World bank funds

• Impediment on coal extraction

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DECISION MAKING IN
KESC
NATURE OF DECISIONS MADE AT KESC:

1. Programmed decisions.

2. Non-programmed decisions.

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DECISION MAKING IN
KESC
DECISION MAKING TECHNIQUES USED IN
KESC:
1. Individual decision making.

2. Group decision making.

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ENVIRONMENT OF THE
ORGANIZATION
1. INTERNAL ENVIRONMENT

2. EXTERNAL ENVIRONMENT

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ORGANIZING

It is the process of establishing orderly uses


for all the organizational resources.

Organizing for all levels in KESC is about


developing organizational structures and


relationships.

•Developing organization structures, in turn,


is about grouping of work among people for
effectiveness.
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ORGANIZING
Delegating at KESC is all about downloading of

responsibility, authority and


accountability to lower levels.

KESC is keen to develop relations with the other


organizations as it is about creating


conditions for co-operative efforts of people

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IMPORTANCE OF
ORGANIZING

•Organization is the end result of the process of


organizing

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ORGANIZING IN KESC
To establish organizing in KESC, the
management follows following five FAYOL’s
guidelines:

It promotes both material and human


coordination.

• It formulate clear and precise decisions.

• Duties are defined clearly.

The management
• promotes
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DEPARTMENTALIZATION

The seven main departments of KESC are listed


below:

• Generation Department

• Grid Stations & Transmission Lines

• Distribution Department

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DEPARTMENTALIZATION

• Consumer Department

• Human Resource Department

• Supply Chain Department

• Finance & Account Department

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ORGANIZATIONAL
STRUCTURE

Corporate Management
Chief Executive
Officer

Chief Financial External Affairs Corporate &Legal


Officer Management Services
.

MIS Reporting Financial Planning & Commercial Services Facility Management Public Affairs Private Affairs Marketing HR Management Legal Affairs
Budgeting Management Management Management

Operational Management
Chief Operating
Officer

Director Director Director Director Director Director


System Planning & Information & Generation Transmission & Finance Human Resources
Engineering Communication Distribution

GM GM GM GM GM GM GM GM GM GM
System Planning & Change Operations Maintenance Operations Maintenance Customer Care Performance Finance Training &
Engineering Management Development

Manager Manager Manager Manager


Generation Planning IT Security Manager Manager Manager Controlling & Payroll & HR
& Engineering Plant 1 Transmission SHE Accounting Admin.

Manager, Manager, Manager Manager


Transmission I&C, HW & Infra Manager Manager Manager Treasury Corporate Services
Planning & Plant 2 Distribution 1 Quality
Engineering Management
Manager, Manager Manager
Distribution IT Security Manager Manager Billing
Planning & Plant 3 Distribution 2
Engineering

Manager
Manager Manager Procurement &
Plant 4 Metering Inventories
DIVISION OF LABOUR
It is the assignment of various portions of a
particular task among a number of organization
members.

The purpose of division of labor in KESC is to


minimize the work load.

•The management of KESC practices division of


labor by dividing a edit
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SPAN OF MANAGEMENT
It is the number of individuals a manager can
supervise.

Due to diversity in functions and geographical


continuity, the degree of span of.


management at KESC is not too wide

• There are rightly sized and adequate staff.

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SCALAR RELATIONSHIP
It is the chain of command positioning of
individuals on an organizational chart.

The lower a person position on the organization


chart, the less authority that person possesses.

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GOAL SETTING PROCESS
The approach followed in KESC for goal setting is that of Management by Objectives
(MBO)

MBO principles are:


• Cascading of organizational goals and objectives

• Specific objectives for each member

• Participative decision making

• Explicit time period

• Performance evaluation and feedback


MOTIVATION
Goal-Setting Theory of Motivation:

Goal setting theory of motivation is used in KESC. Goals


motivate workers to meet higher performance levels.

Employees target reachable goals, allowing them to take


part in goal setting which increases their commitment to


even those goals that are more difficult to attain.

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MOTIVATION
STEPS TAKEN BY KESC TO MOTIVATE THEIR
EMPLOYEES:

Employees in the organization (K.E.S.C) are given the


authority of decision making

Pre-defining pay structure


Upper post placements (internal job placement)


Safety

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CORPORATE CULTURE
Corporate culture for management that influence the behavior of the
employees within the organization to get significant positive effect on
organizational success.

Our core aims regarding work environment at KESC are:

Balancing diversity in the workplace


Positive engagement with the workforce
Enrichment of jobs

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UNDERSTANDING
PEOPLE
Our employees with their diverse culture, ethnic and varying
educational backgrounds that make the working environment of
the company so dynamic.
We are constantly seeking ways to improve our employees' skills.
Several training courses and workshops are available to our
employees.
We are also looking into developing industrial relation
programmes and a performance management system.
CONTROLING

 Control is making something happen the


way it was planned to happen

Controlling process:
 
• Measuring performance

• Comparing measured performance to standard

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CONTROLING
In KESC controlling is done through measuring
following standards:

• Profitability standards

• Generation standards

• Leadership standards

• Personal development standard

• SocialClick to edit Masterstandards


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CONTROLING
Taking corrective action:
 
• Recognizing symptoms

• Recognizing problems

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CONTROLING
Operations Control:
 
Operation control is defined as making sure that the
operational activities are carried out as planned. For this
KESC has taken the following steps:

• Maintenance control

• Cost control

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CONTROLING

• Information Technology In KESC

• Information System In KESC

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CONTROLING
IMPLEMENTATION OF INFORMATION SYSTEM IN
KESC:

• Computerization of records

• Proper backup of all the record of KESC in the


main server machine

• Implementation of SAP accounting software

• Email accounts have been generated for the


employees

• Centralized
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CONCLUSION
Generation Problems:

• As of 2007, KESC owned 1756 MW of generation


capacity which had overtime been degraded to 1336
MW.

• The approximate demand for power in the city is at


least 2300 MW

• There has been no recent increase in the generation


capacity in KESC region of supply

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CONCLUSION
Technological Problem:

• Transmission:
Thirty percent of electric power is lost during
transmission due to poor quality infrastructure

Geographic Problems:

• Most of the generation capacity of KESC is located in


east of the city. This adds an unnecessary transmission
cost in moving this power to north, west and south of the
city.

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CONCLUSION
Distribution Problems:

KESC faces a huge problem of POWER THEFT which


happens in three ways:

1. Tampering of Meters

1. Industrial clients who are billed according to a


sanctioned load use bigger grips to get more power.

1. People use kundas (hooks) on distribution lines.

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RECOMENDATIONS
1. We need to have more nuclear plants. Our hydropower is
highly vulnerable to India. They can stop the water anytime
and also it is predicted water levels are going to decline in
future

1. We should be looking for other sources of energy instead of


fighting over building dams and wasting time like we did in the
case of kalabagh dam

1. Thar is the fifth largest coalfield in the world. Why not build
coal or steam power plants. We can’t surely afford large
power plants but still there is a consistency for small scale
generation to overcome load shedding.

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