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A comparison of team practices in ECPL and PAFL Engro Chemical Pakistan Limited(ECPL)

In 1957 when the search for oil by Pak Stanvac, an Esso/Mobil joint venture led to the discovery of Mari gas field situated in the land of Daharki - at the time a small town in upper Sindh province. After a few years of studies, Esso developed a proposal to build a urea plant. The government, eager to promote the use of fertilizers in Pakistan, approved the proposal and Esso Pakistan Fertilizer Company Limited was incorporated in 1965, with Esso owning 75% of the shares and the Pakistani public the remaining 25%. Shortly thereafter, commenced the construction of a urea plant of 173,000 tons annual capacity. The plant was commissioned on December 4, 1968, at a cost of US dollars 43 million. Esso's investment at the time represented the largest foreign investment in the private sector of Pakistan. Esso launched the Company's own branded urea called "Engro" - an acronym of "Energy for Growth". In 1978, as part of an international name change program, Esso became Exxon and the company was renamed Exxon Chemical Pakistan limited. The Company continued to prosper as it pursued productivity gains and tried to attain professional excellence. The plant capacity was debottlenecked in low cost steps to 268,000 tons, high standards of operational safety attained and Engro Urea enjoyed a premium in the market. The healthy growth in demand for fertilizers in Pakistan presented opportunities to expand the business of the Company. However, a major investment by Exxon was unlikely because in a global sense it did not view fertilizers as a core strategic business which fitted with its long term plans. Early in 1991, Exxon announced their intention to sell their 75% share of Company's equity. An employee led buy out, enabled 28% of the equity to be acquired by the employees and their Trust. Several financial institutions acquired the balance 47% of the company's shares that were previously held by Exxon Corporation. It enabled the ownership to be restructured and the Company was renamed Engro Chemical Pakistan Limited. The employee-led buyout of Exxon's equity was the first of its kind in the corporate history of Pakistan. As part of the buyout, agreements were signed with Exxon for technical and project management support and for the continued use of the Engro brand name. The change in ownership's allowed the Company to proceed with an expansion project to more than double its capacity to 600,000 tons in 1993. During 1995 the plant capacity was further increased to 750,000 tons per annum. In 1998, the Company successfully implemented an expansion and modernization that enhanced the urea capacity to 850,000 tons per annum and appreciably improved the environmental performance of the plant site. The company is currently reviewing up its next debottlenecking step to take the capacity to 950,000 tons per annum. Engro's strong presence in the fertilizer industry and its attempt to carefully diversify and pursue opportunities in petrochemicals has attracted the attention of several international venture

partners. The future prospects look promising as the organization is effectively managed by a highly professional team totally committed to preserving its core values and adhering to highest standards of safety, business ethics, integrity, etc. Engro Chemical Pakistan Limited is the second largest producer of urea fertilizer in the country and is well positioned to take advantage of the growth and challenges in the agricultural sector. Apart from selling its own manufactured urea, Engro also markets imported di-ammonium phosphate and other potassic and phosphatic fertilizers. For the last two years it is also dealing in the Seed business with its brand name ENGRO BEMISAL.

Work team practices at ECPL

Over 700 employees are working at ECPL for carrying on the operations of the organization effectively and efficiently. They are having the skilled and efficient employee thats why they are progressive and growth oriented. The team concept is in practice in the organization. Which make ECPL one of the leading organizations in this dynamic work environment. They are maintaining the teams in their organization according to the international theory of teams like Study teams, Cross functional teams and Self-managed teams. Anyhow they do have the teams with the responsibility of problem solving in their organization, but they are not having the separate teams for the solution of various problems. The organization do give the due authority for the implementation of the decisions whatever the teams consider fit for the organization. The organization considers each separate department as a separate team and within one department there are different teams for the different purposes and different activities. According to the ECPL the size of the team is basically dependent on the size of the department and job description. Most of the time these teams at ECPL have 5-20 employees for the performance of various activities in a sub team while in a team that is department wide that consists of about 50 employees from the same department. Structure of the team is highly correlated with the structure of the organization. Thats why the various teams at this organization are performing at or above the expectations of the organization. Whenever the top management of the ECPL is building teams for the performance of the crucial activities it do considers the members abilities, skills and knowledge and experience. For the proper working of the teams the top management gives priority to the experience and abilities so that all the time teams performance is up to the mark. Sometimes if there is any conflicting situation in the organization then the members of the teams are also playing the role of organizer, advisor and controller and they resolve the conflicting situation as early as possible.

The management believes that factors like size, ability, specific goals, leadership, performance evaluations and reward system highly affect the teams. Because if the size of the team is too large than the requirement then the productivity suffers. Similarly if interpersonal skill is also not up to the demand of the teams performance then the efficiency also suffers and the like specific goals and leadership, performance evaluations and reward system also affect the performance of the teams. On the other hand, factors like structure, accountability also affects the teams. In addition to above all, the element of trust is very important in the teams activities. The rewards are allocated to the members on individual basis for the performance of the individuals in the organization and sometimes the reward allocation is done on the teams collective performance. As we see that team members are individually responsible as well as on the part of the whole team. Often management makes responsible the team members individual because it thinks that it is better to get increased efficiency with the realized responsibility of each member separately. The shaping individuals to team is also a crucial matter in the organization thats why the organization believes that training and motivation is necessary for the formation of teams and turning individuals into team and shaping their separate, individual behavior into teams collective behavior. Whenever the different teams in the organization meet the goals, the top management ensures the individuals contribution of each and every member of the team through clear communication and reinforcement because it heavily relies on the individual reward allocation. So each and every member at this organization tries its level best to contribute in achieving goals that lead to the organization high performance and growth. Commitment of the teams toward the goals is a key to the effective team. Organization measures the commitment through the achievement of the teams and motivation level of the individuals. The organization ensures friendly, open and positive communication between the members of the team by becoming fair, honest, and discussing conflicts in open way. Management pursue the inter team relationship by sharing the resources offering suggestions and celebrating together. For the development of the inter team relationship the organization arranges the schedule lunches and socialization programs of members. To build the strong connection between the teams the organization arranges cross team meetings frequently. The organization believes that individuals prefer to work as a part of the team rather than working alone. They highly agree upon the team concept in the organization and argued that the organizations goal could only be achieved through the collective team efforts.

Pak-Arab Fertilizers (pvt) Ltd (PAFL).

Pak-Arab Fertilizers is a living symbol of fraternal relations between Islamic Republic of Pakistan and Emirates of Abu Dhabi. The company was established as a result of agreement concluded and signed on November 15, 1972 by the two governments to further strengthen the

brotherly ties through establishment of a joint venture in the filed of fertilizer industry for exploitation natural resources available to the mutual benefits of two brotherly Muslim countries. Consequently a memorandum of understanding was finalized between West Pakistan industrial Development Corporation of Pakistan and Abu Dhabi National Company of Abu Dhabi on March 7, 1973 followed by a participation agreement on November 1, 1973 to establish a joint venture for expansion and modernization of the natural gas fertilizer factory Multan. Thus the company was incorporated on November 12, 1973 with authorized capital of Rs 1000 million. WPIDC interest in the company were assumed by National Fertilizers corporation of Pakistan (NFC) as a result of reformation of public sector corporations and interest in the company had been assumed by Abu Dhabi . Pakistan has equity share capital participation through NFC and Abu Dhabi through IPIC in the ratio of 52% and 48% respectively with the paid up capital of Rs. 743061M. Pakarab fertilizers is the largest fertilizer complex in Pakistan and is the only fertilizer manufacturing facility producing compound fertilizer in the country. Fertilizer production plants of Pak-arab Fertilizers are located about 08 kilometers from the ancient city of Multan which were completed in 1978 at a total cost of Rs. 2279.010 million inclusive of Rs. 1326 million foreign component. About 1000 employees are working in the organization. Work Team practices at PAFL Although Team concept is in practice at Pak Arab Fertilizers Limited but it is not in its particular real shape and name. They do maintain the Cross-functional and cross sectional team in their organization. They give limited authority to the team members for decision-making and implementation of their decisions but not in all aspects. The size of the team varies with respect to the type and job of the team. The size of the team for the operational activities is relatively larger then that of the warehousing and marketing activities. But as a whole they believe on the small team concept as they consider it as more productive and effective. The management at this organization considers all the departments as separate teams and structure of the teams also follow the structure of the organization. They form the team on the basis of skills and knowledge and responsive to the problems when ever these problems arise. While forming the teams they do considers the interpersonal skills as core characteristics. Members play the role of creator, linker, promoter, advisor and maintainer in addition to their normal activities. Management considers the size, specific goals, accountability and performance evaluations, reward allocations and mutual trust are highly affecting the team performance at the Pak Arab Fertilizers limited. While the structure and leadership moderately affect. Rewards are allocated on the individual and mutual team basis and the members are accountable both individually and as a whole for the team performance. Individuals are motivated to turn them into team members through selection of right people, providing them the appropriate training and extending rewards. Inter team relationships are managed through building the trust between the team members. Inter team relationship is pursued through sharing the resources and celebrating together & with the more socialization of the members and combined training. Commitment of the member towards

the organizations goal is measured by meeting the targets; the actual performance is compared with the standards already formulated. Contribution of each team member towards the team is ensured through individuals performance evaluations and providing them proper training. The organization ensures the friendly and open communication between the team members through increasing the mutual interactions of the members. Cross team meetings are play vital role in developing the strong relationship between the teams from various functional areas. Employees prefer to work as a part of team thus the team increases the commitment and organization can achieve its goals in efficient way. Management feels that team is good for performing the right kind of activities within the organization and outside the organization as well. So they are highly impressed with the teams performance and their relative expectations

A Comparison of team practices in ECPL and PAFL

The concept of teams and teamwork is increasingly becoming an important key to productivity and employee satisfaction in the contemporary workplace. Teams have definitely become important in organizations because, productivity, quality, and morale improves when teams are utilized. There are many reasons for these positive outcomes but what we have found at ECPL and PAFL are: Teams produce a greater quantity of ideas and information than individuals acting alone. Teams improve understanding and acceptance among individuals involved in the process. Teams create higher motivation and performance levels than individuals acting alone. Teams offset personal biases and blind spots that hinder the decision process. Teams sponsor more innovative and risk-taking decision making. Some of the Similarities Exist Between Two Organizations

Create a common, shared goal Promote interdependency Have measurable outcomes continually stress the team's purpose Make sure team members have the right skills Use training to help team members develop interpersonal, intercultural skills. Spell out lines of communication

Organizational Structure of ECPL