Tuesday, February 8, 2011

Deskon Management System


THE ORGANISATION


Deskon Management System Engineering was established in 1977. Since then, it has grown to become a reputable multinational organisation operating in Pakistan and the Middle East. The corporate office is in Lahore, with establishments in the U.A.E, Saudi Arabia, Qatar and Oman.Now completing its third decade of operations the company caters primarily to the Petrochemical, Oil & Gas, Fertilizer, Power, Chemical, Cement and Infrastructure sectors offering engineering, procurement, manufacturing, construction, maintenance and turnkey services of Deskon Management System.

The Company’s corporate office provides support to its Business Areas in the form of policies, systems, procedures and resources. It conducts periodic audits to verify implementation and effectiveness of business operations to achieve the performance objectives. Wherever necessary, the corporate office takes corrective actions to improve upon the business processes.

The Business Areas operate on a proactive approach and are primarily responsible for execution of business, implementation of the corporate policies, systems and procedures. They provide feedback on progress, financial health, and status of systems and effectiveness of processes, to the corporate office.

The Company Deskon Management System is committed to deliver quality services in a safe and timely manner with the overall objective of ensuring customer and shareholder satisfaction.

(PMS)

 

Project Management Systems – PMS, plays a vital role in every phase of all Descon’s projects by rendering project monitoring and system support services.

The work force of PMS comprises of qualified and competent personnel from project planning and IT disciplines, who pool their efforts to come up with smart solutions to fulfill a project’s planning and system related needs.

PMS ensures,

§  Effective implementation of Descon’s project management systems. Since its inception, Descon has considered systems very important to exercise effective project management, and therefore has developed an integrated project management system environment. This includes world recognized off the shelf software packages like P3 and SBT, and in-house developed software systems that have been built to satisfy Descon’s project management needs. The environment includes systems for bidding, project planning and monitoring, inspection and testing, material management, financial control and resource control. The integrated environment not only automates the company’s business processes, but also makes company fully capable of meeting requirements of construction related projects of any nature.

§  The rich reporting capability of the systems enables project teams and PMS to monitor all ongoing projects to measure their actual performance against plan to point out any planning or financial slippage, and suggest corrective actions make up for the slippage.

§  PMS remains actively involved in a project through out its life cycle. Prior to mobilization of a project team of the project, PMS ensures configuration and initialization of the systems.

§  In addition, during this period work products of great significance for the project like, WBS, OBS, budget, detailed zone and area wise schedule, man power requirement plan, material requirement plan, etc. are prepared mutually by the project team and PMS representatives while considering project goals, challenges and bottlenecks.

§  After the mobilization, it is ensured that work progress at site is as per documents furnished before mobilization, e.g. daily schedules are generated from the system, distributed to execution crews, and retrieved duly filled; procurement is according to plan; budget is not exceeded; etc.

§  Furthermore, system audits are conducted on regular basis to gauge systems implementation status.

§  Based on the audit reports, follow-ups are carried out to resolve all issues rose during the audit.

PMS strives to continuously improve the systems to make the systems more effectively implement Descon’s business processes. This proactive approach helps Descon keep its competitive edge.


Project Personnel & Administration (PP & A)


PP & A is responsible for

  • Providing adequate workplace and supporting facilities for all employees.

  • If required all management personnel are provided with personal computers or workstations connected to a network (LAN) with electronic mails and information sharing capabilities.

  • Provision and maintenance of facilities such as telephone, conference room, lecture room, multimedia and projectors in head office.


  • Provision and maintenance of all the project sites facilities for example accommodation, living area, and recreational room.

  • Selection and recruitment of craftsman and Labour.














Structure of the Organization:

In DESCON Engineering Private Limited, structure is multi-focused in the form of Matrix, as it combines product and function structure or product and geographic structure at the same time. The main focus of the organization structure is to meet the organizational goals.
The unique characteristics of Matrix organization is that both product division and functional structures either they are horizontal or vertical are implemented simultaneously. In DESCON both horizontal and vertical systems are prevailing at the same time. In this situation product managers who are working horizontally are given formal authority equal to that of the functional manager who is working in vertical hierarchy.

Structural Dimensions of the Organization Deskon Management System:

The specific characteristics of formalization, centralization, and worker skill level, span of control, communication and coordination vary depending on work unit technology.

Formalization:

Formalization pertains to the amount of written documentation in the organization. Documentation includes procedures, job descriptions, regulations and policy manuals.
In DESCON there is high degree of formalization. Job descriptions of employees, regulatory procedures are well-defined. Organization’s policy manual is highly organized.

Specialization:

Specialization is the degree to which organizational tasks are subdivided into separate jobs. If specialization is extensive, each employee performs only a narrow range of tasks, if specialization is low employees perform a wide range of tasks in their jobs. It is also referred as division of labor.
There is extensive specialization in DESCON as every employee and workers of the organization perform specialized tasks according to their job description.

Standardization:

In DESCON standardized work activities are performed.

Hierarchy of Authority:

The hierarchy is related to the span of control i.e. the number of employees reporting to a supervisor. When spans of control are narrow the hierarchy tends to be a tall, when spans of control are wide the hierarchy of authority will be shorter.
In DESCON Span of control is narrow. A formal hierarchy exists in the organization. Due to this hierarchical levels are large in number and consequently span of control is narrow in nature.


Centralization:

In DESCON the decision making process is centralized as well as decentralized. Long term or strategic decisions are centralized in nature, while short term decisions which are taken at the lower level of hierarchy are decentralized. Organizational decisions that are centralized or decentralized includes purchasing equipment, establishing goals, choosing suppliers, setting prices, hiring employees and deciding marketing territories.

Professionalism:

Professionalism is the level of formal education and training of employees. In DESCON high level of professionalism exists. To carry out the specific tasks, employees are trained on regular basis. In selection and recruitment process, the candidates having relevant education, experience and technical expertise are considered.

Personnel Configuration:

It refers to the deployment of people to various functions and departments. It includes personnel ratios in the form of administrative ratio, the clerical ratio, the professional staff ratio and the ratio of indirect to direct labor employees.
In DESCON different methods of personnel configuration are in practice, like yield pyramids, hierarchy charts etc.

Goals Strategies and Effectiveness of Deskon Management System

Goals:
Official Goals:

Official Goals are the formally stated. Definition of business scope and the outcomes the organization is trying to achieve. Official Goals statements typically define business operations and focus on values, markets and customers that distinguish the organization. It includes the general statement of its purpose, philosophy, policy manual, the mission statement and the mission statements etc.
Following are the official goals of DESCON ENGINEERING (PVT) LIMITED as mentioned in the values and mission statements of the organization:

  • Prosperity and well being of stakeholders
  • Adding value to society through engineering, technology and management
  • Providing customers with quality, cost effective and reliable solutions
  • Professionalism 
  • Ethics and integrity
  • Commitment and team work
  • Candid and open environment
  • Recognition and growth of individual and respect for human dignity
  • Encourage leadership
  • Initiative and innovation
  • Continuous improvement in all aspects of our business 
 
Operative Goals:

Operative goals describe specific measurable outcomes and are often concerned with the short run. These goals concern overall performance, boundary spanning, maintenance, adaptation and production activities. These provide direction for the day to day decisions and activities within departments

DESCON Perspective

Operating Goals for Resources:
  • Acquisition of needed material and financial resources from the environment
  • Efficient and effective management of resources

Operating Goals for Market:
  • To achieve higher market share
  • Market Success by high economic returns

Operating Goals for Productivity:
  • To attain the economies of scale
  • To utilize full capacity level
  • To adopt total quality management to facilitate change in company culture toward greater quality and productivity

Operating Goals for Innovation:
  • Readiness to adopt to unexpected changes in the environment
  • The development of specific new services, products or production process

Operating Goals for Employee Development:
  • To contribute to the continuous growth and development of employees
  • To develop a cooperative, team spirit
  • To foster cooperation between the employees and limit interpersonal competition

Organizational Strategies of Deskon Management System:

Porter’s competitive Strategies:

According to his theory there are three competitive strategies:
  1. Differentiation
  2. Low Cost Leadership
  3. Focus
    • Focused Low Cost
    • Focused Differentiation

Differentiation:

In a differentiation strategy organizations attempt to distinguish their products or services from others in the industry. An organization may use advertising, distinctive product features, exceptional services or new technology to achieve a product perceived as unique. Differentiation strategy requires a number of costly activities such as product research and design and extensive advertising. The companies that pursue a differentiation need strong marketing abilities and creative employees who are given the time and resources to seek innovation.

Balanced Effectiveness Approaches

This approach tries to balance a concern with various parts of the organization rather than focusing on one part. These integrative, balanced approaches to effectiveness acknowledge that organizations do many things and have many outcomes. These approaches combine several indicators of effectiveness into a single framework. They include:

  • Stakeholder Approach
  • Competing Values Approach

    1. Human Relation Model
    2. Open System Model
    3. Rationale Goal model
    4. Internal Process Model

Stakeholder Approach

In the stakeholder approach, the satisfaction of each group can be assessed as an indicator of the organization performance. Each stakeholder will have a different criterion of effectiveness because it has a different interest in the organization.

Owners:
DESCON apply this approach to satisfy the owners by giving high financial returns.

Employees:
An attractive package is offered to the employees and they are motivated by conducive environment. They are given flexibility in their working hours.

Customers:
High quality of goods and services is provided to customers.


Creditors:
They are performing their obligations to their creditors timely. Their current and quick ratios are high above the required level.

Community:
They are paying their role in environmental protection, education and social security. In this way they are friendly to their environment and community.

Suppliers:
They are focusing on the supply chain management by emphasizing on satisfactory transaction with suppliers and customers.

Government:
All the business activities are carried out according to the rules and regulations implied by the countries in which DESCON is working.

Competing Values Approach of Deskon Management System:

The competing values approach combines the diverse indicators of performance used by managers and researchers. Using a comprehensive list of performance indicators, a panel of experts in organizational effectiveness rated the indicators for similarity.
In this approach we have two indicators. First one is Focus and second one is Structure. In focus we have two dimensions i.e. internal and external. In structure also we have two dimensions i.e. stability and flexibility. On the basis of these four dimensions we categorize these two indicators into four models which are:

·         Human relations model
·         Open system model
·         Rational goal model
·         Internal process model
·          
DESCON lies in third model which the rational goal model. This model represents management values of structural control and external focus. The primary goals are productivity, efficiency and profit. DESCON want to achieve output goals in a controlled way. Sub-goals that facilitate these outcomes are internal planning and goal setting, which are rational management tools.

The External Environment Deskon Management System

Environmental Domain
Task Environment

Task environment of DESCON includes:
  • Industry sector
(Competitors, Industry size, competitiveness)
  • Raw materials sector
(Suppliers, manufacturers)
  • Market sector
(Customers, clients)
  • Human resources sector
(Labor market, employment, agencies)
  • International sector
(Competition from and acquisition by foreign firms, entry into overseas markets, foreign customers, regulation, exchange rates)

General Environment

The general environment of DESCON includes:
  • Government
(Government sector influences the engineering companies through federal laws and regulations, taxes, court systems and political processes)
  • Socio-cultural
(DESCON is affected by the societal and environmental requirements)
  • Economic conditions
(DESCON is playing its role in economic growth by providing employment opportunities etc)
  • Technology
(DESCON is highly affected by the new technology; the implementation can be seen in every work of DESCON)
  • Financial resources
(DESCON is private limited company; it has no difficulty in raising financial resources for itself)

International context

DESCON is having its roots in different countries of the world which describes its international context from different dimensions. Its head office is in California which controls the whole network of DESCON. Internationally DESCON is quite an established manufacturing and construction company providing different services at a time. It has no threat of being acquired by any other company as it has the ability to acquire other companies.
HUMAN RESOURCE DEVELOPMENT & ADMINISTRATION   (HRD &A)

Human Resource Development

HRD serves as a focal point for the company's commitment to enhance the quality and excellence of project management business through performance of competent professionals in an appropriate organizational structure. HRD is entrusted with the tasks of ensuring that the process is set in place for making most effective use of people involved with projects, business areas and head office establishments.
Being a project management company, we implement projects having specific life cycles. Therefore all the activities are needed to be performed in a given time span. For this purpose the quality of services as well as the speed of response are the critical factors for success.

Major responsibilities of HRD include,

§     HRD proactively participates in the mobilization activity and ensures the timely availability of the required workforce for both local and overseas projects.

§     Once the project is near to its completion as per the project life cycle, HRD plays a pivotal role in the process of demobilization of available workforce and their smooth and swift transition for other projects/assignments.

§     HRD designs and develops internal training programs and also facilitates the external training programs in order to inculcate and enhance the required competencies and capabilities for the successful execution of the project(s)

§     Through proper organizational planning, HRD identifies organizational needs and establishes an appropriate organizational structure. It defines the roles and responsibilities based on the job descriptions of key players.

§     HRD ensures the deployment of the right person for the right job, which is in line with business needs, and provides strategic support through career development, and lateral entries wherever required.

§     HRD fosters trust based organizational culture through open communication channels which enhances the motivation of employees .The establishment of performance appraisals and other feedback systems for setting up rewards  /compensation packages is also carried out by HRD.

 HRD MISSION Deskon Management System


  • HRD shall locate, attract, induct and develop talent in line with our company business needs.

  • HRD shall foster a culture of merit & performance based rewards in line with internal and external equity to ensure retention of talent.

  • HRD shall conduct ourselves through transparent communication, team work and mutual trust among the team members.

  • HRD shall facilitate line management to acquire knowledge on HR management and adopt the role of HR-managers in their respective line management function.

  • HRD shall nurture an environment for mutual growth , development & benefit of employees and organization .

  • HRD shall regularly interact with line management for continuous training & development of employees in line with company’s business needs.

  • HRD shall continuously look into ways and means for achieving a cost effective, fit for purpose operation of human resource development department.

HR GUIDING PRINCIPLES


  1. Dealing with respect and dignity.

  1. Retention of talent.

  1. Transparency and openness in communications.

  1. Transparent personnel policies.

  1. Performance based remuneration & reward system.

  1. Contribution  towards implementation Project Management Systems shall be recognized as a major achievement for standardization of company systems.

  1. Financial control and Cost control shall play a pivotal role for achieving target financial results.
Human resource planning process of Deskon Management System:

 scope

This human resource planning procedure is divided into the following major stages:

(a) Recruitment & Selection
(b) Induction & Orientation
(c) Training
(d) Career Progression
(e) Exit

Responsibilities of Deskon Management System:

The whole process is carried out through

• HR department

• Respective Head of the department / In charge of the department / Respective BA /
BSD / Site Manager / In charge

INFORMATION SYSTEMS

Human Resource Information System
PCS- Process Control System
DPMA- Descon Progress monitoring system
DIMS- Descon Management System
DIT- Descon Inspection Testing System
ACPAC- Accounting software
FAMS- Fixed Asset Management System
MPDB- Manpower data Bank
Manpower System
Winbid Proposal


 Professionalism is the level of formal education and training of employees. In Deskon Management System high level of professionalism exists. To carry out the specific tasks, employees are trained on regular basis. In selection and recruitment process, the candidates having relevant education, experience and technical expertise are considered.It refers to the deployment of people to various functions and departments. It includes personnel ratios in the form of administrative ratio, the clerical ratio, the professional staff ratio and the ratio of indirect to direct labor employees.In Deskon Management System different methods of personnel configuration are in practice, like yield pyramids, hierarchy charts etc. 

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