Learning Organization project on WAPDA

7/22/2019 Learning Organization project on WAPDA

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Water and Power Development Authority ,,,,,,,,,,,,, ,,,,,,,,,,,,,,, ,,,,,,,,,,,,,, ,,,,,,,,,,,,,,, ,,,,,,,,,,a ,,,,

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LO PROJECT ON WAPDA


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Water and Power Development Authority (WAPDA)

Background :WAPDA, the Pakistan Water and Power Development Authority, was created in 1958 as aSemi-Autonomous Body for the purpose of coordinating and giving a unified direction to thedevelopment of schemes in Water and Power Sectors, which were previously being dealtwith, by the respective Electricity and Irrigation Department of the Provinces.Since October 2007, WAPDA has been bifurcated into two distinct entities i.e. WAPDA andPakistan Electric Power Company (PEPCO). WAPDA is responsible for water andhydropower development whereas PEPCO is vested with the responsibility of thermal powergeneration, transmission, distribution and billing. There is an independent Chairman and MD(PEPCO) www.pepco.gov.pk replacing Chairman WAPDA and Member (Power) who were

previously holding the additional charges of these posts.WAPDA is now fully responsible for the development of Hydel Power and Water SectorProjects.PEPCO has been fully empowered and is responsible for the management of all the affairs ofcorporatized nine Distribution Companies (DISCOs), four Generation Companies (GENCOs)and a National Transmission Dispatch Company (NTDC). These companies are workingunder independent Board of Directors (Chairman and some Directors are from PrivateSectors).The Companies are administratively autonomous and leading to financial autonomy byrestructuring their balance sheets by bringing their equity position to at least 20 percent,required to meet the prudential regulations and to facilitate financing from commercial sector(approved by ECC).The Loan Liability Transfer Agreements (LLTA) have been signed withCorporate Entities and execution of loan transfer is complete.All Entities have the physical possessions of all their operational assets. On 24th Feb. 2007Ministry of Water & Power notified NEPRA approved Tariff for all Distribution Companiesreplacing unified WAPDA Tariff. Legal Agreements such as Business Transfer Agreements,Operation Development Agreement, Energy Supply Agreement, Business SupplementaryAgreement and Fuel Supply Agreement etc. were executed between WAPDA and CorporateEntities to facilitate commercial operations. Regulatory instruments like Grid Code,Distribution Codes, Performance Standard for Distribution Companies and TransmissionCompanies were drafted and got approved from (www.nepra.org.pk) in 2007.All major lenders gave their consent for transfer of their loan from WAPDA to CorporateEntities, thus 326 loan assumption agreement were signed amongst respective Companies,WAPDA and EAD (Economic Affairs Division) GOP. CPPA is established under thecoverage of NTDC for payments from DISCOs to IPPs, GENCOs and NTDC. Ultimately, itwill function independently under Federal Govt. and all forthcoming IPPs will be underCPPA.


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Products:

Wapda has to investigate, plan and execute schemesfor the following fields:

1. Generation, Transmission and Distribution ofPower.2. Irrigation, Water Supply and Drainage.3. Prevention of Water logging and Reclamation of

Waterlogged and Saline Lands.4. Flood Management.5. Navigation.

Water Wing In 1959, WAPDA was created to undertake the task ofinvestigating, planning and executing schemes forirrigation, drainage, prevention of water logging andreclamation of saline land as an autonomous bodyresponsible for integrated development of water and

power resources in Pakistan. The organization was alsoentrusted with the work of implementing Indus Basin

Settlement Plan signed between India and Pakistan in 1960 to develop replacement works formanagement of river water and irrigation system. Since then it has been engaged in buildingwater development projects which include extensive research and investigation to augment

country's water resources.

Pakistan Electric Power Company (PEPCO) The Pakistan Electric Power Company (Private) Limited(PEPCO) has been entrusted the task of managing thetransition of WAPDA from a bureaucratic structure to acorporate, commercially viable and productive entity. It isa mammoth task and progress in the initial months wasrather slow, but one should keep in mind that responsibility

is enormous and transition is a long drawn process.

Before going into further details of the restructuring programme, it is necessary to understandthe shift in the GoP policy. The GoP, in line with its Strategic Plan of 1992 approved by thecabinet committee, had decided to restructure the entire power sector in the country. De-regulation of power sector Promotion of IPPs Restructuring of WAPDA Privatization of select corporate entitiesThe factors responsible for the shift in policies were: generation capacity could not beincreased to meet demand, WAPDA's growth caused inefficiencies, 'demand suppression' andhigh tariff policy, proliferated theft. All these factors, over the years, adversely affectedWAPDA's financial condition. As part of this programme WAPDA's functions under its

Water Wing and Power Wing were to be segregated. It was previously envisaged that all power generation, hydel as well as thermal, would be corporatized. However, later on it was


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decided that the hydel generation should remain part of the Water Wing or the remainingWAPDA.PEPCO has prepared the conceptual framework and is following a comprehensive strategywhereby WAPDA's vertical-monolithic Power Wing has been restructured into autonomous

entities under Companies Ordinance 1984.

PROJECTS:

A project in business science is typically defined as a collaborative enterprise, frequentlyinvolving research or design, that is carefully planned to achieve a particular aim.

Projects can be further defined as temporary rather than permanent social systems that areconstituted by teams within or across organizations to accomplish particular tasks under timeconstraints.

FOLLOWING ARE THE ONGOING PROJECTS OF THE WAPDA:

UNDER CONSTRUCTION DAMS Gomal Zam Dam Project, Mirani Dam Project, Mangla Dam Raising Project, Sabakzai DamProject, Satpara Dam Project

UNDER CONSTRUCTION CANALS Rainee Canal Project, Kachhi Canal Project, Greater Thal Canal Project

UNDER CONSTRUCTION DRAINAGE PROJECTS Right Bank Outfall Drain Project-I, Balochistan Effluent Disposal Into RBOD-III

UNDER CONSTRUCTION HYDROPOWER PROJECTS Allai Khwar Hydropower Project, Khan Khwar Hydropower Project, Duber KhwarHydropower Project, Jinnah Hydropower Project, Neelum Jhelum Hydropower Project, Jabban Hydropower Project

SMALL / MEDIUM DAMS

Bara, Garuk, Hingol, Naulong, Pelar, Darwat, Darban, Ghabir, Naigaj, Papin, Winder, TankZam Dam

BARRAGES Chashma Barrage, CJ-Link Canal, Chashma Right Bank Canal

FOLLOWING ARE THE FUTURE PROJECTS

PROJECTS ANNOUNCED BY THE PRESIDENT OF PAKISTAN Diamer Basha Dam, Kurram Tangi Dam ProjectMunda Dam Project, Akhori Dam Project
http://en.wikipedia.org/wiki/Businesshttp://en.wikipedia.org/wiki/Sciencehttp://en.wikipedia.org/wiki/Planhttp://en.wikipedia.org/wiki/Social_systemhttp://en.wikipedia.org/wiki/Teamhttp://en.wikipedia.org/wiki/Taskhttp://www.wapda.gov.pk/htmls/GomalZamDam23.htmhttp://wapda.gov.pk/pdf/MiraniDam.pdfhttp://www.wapda.gov.pk/pdf/ManglaR1010.pdfhttp://wapda.gov.pk/vision2025/htmls_vision2025/sdp.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/sdp.htmlhttp://www.wapda.gov.pk/htmls/sataparapj.htmlhttp://www.wapda.gov.pk/pdf/RainCanal31122010.pdfhttp://wapda.gov.pk/vision2025/htmls_vision2025/kcp.htmhttp://wapda.gov.pk/vision2025/htmls_vision2025/greaterthal.htmlhttp://www.wapda.gov.pk/pdf/RBODI.pdfhttp://www.wapda.gov.pk/pdf/RBODIII.pdfhttp://www.wapda.gov.pk/htmls/allaikpj.htmlhttp://www.wapda.gov.pk/htmls/khankpj.htmlhttp://www.wapda.gov.pk/htmls/duberkpj.htmlhttp://www.wapda.gov.pk/htmls/duberkpj.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/jinnahhydropower.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/njhp.htmlhttp://www.wapda.gov.pk/htmls/jabban.htmlhttp://wapda.gov.pk/htmls/bara.htmhttp://wapda.gov.pk/htmls/garuk.htmhttp://wapda.gov.pk/htmls/hingol.htmhttp://wapda.gov.pk/htmls/naulong.htmhttp://wapda.gov.pk/htmls/pelar.htmhttp://wapda.gov.pk/htmls/darawat.htmhttp://wapda.gov.pk/htmls/darban.htmhttp://wapda.gov.pk/htmls/ghabir.htmhttp://wapda.gov.pk/htmls/naigaj.htmhttp://wapda.gov.pk/htmls/papin.htmhttp://wapda.gov.pk/htmls/winder.htmhttp://wapda.gov.pk/htmls/tankdam.htmhttp://wapda.gov.pk/htmls/tankdam.htmhttp://www.wapda.gov.pk/htmls/chashmabarrage.htmhttp://www.wapda.gov.pk/htmls/cjlinkcanal.htmhttp://www.wapda.gov.pk/htmls/chashrightcanal082011.htmhttp://www.wapda.gov.pk/htmls/bashadmprj.htmlhttp://www.wapda.gov.pk/htmls/KurmTngDam.htmhttp://wapda.gov.pk/vision2025/htmls_vision2025/munda.htmhttp://wapda.gov.pk/vision2025/htmls_vision2025/akhori.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/akhori.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/munda.htmhttp://www.wapda.gov.pk/htmls/KurmTngDam.htmhttp://www.wapda.gov.pk/htmls/bashadmprj.htmlhttp://www.wapda.gov.pk/htmls/chashrightcanal082011.htmhttp://www.wapda.gov.pk/htmls/cjlinkcanal.htmhttp://www.wapda.gov.pk/htmls/chashmabarrage.htmhttp://wapda.gov.pk/htmls/tankdam.htmhttp://wapda.gov.pk/htmls/tankdam.htmhttp://wapda.gov.pk/htmls/winder.htmhttp://wapda.gov.pk/htmls/papin.htmhttp://wapda.gov.pk/htmls/naigaj.htmhttp://wapda.gov.pk/htmls/ghabir.htmhttp://wapda.gov.pk/htmls/darban.htmhttp://wapda.gov.pk/htmls/darawat.htmhttp://wapda.gov.pk/htmls/pelar.htmhttp://wapda.gov.pk/htmls/naulong.htmhttp://wapda.gov.pk/htmls/hingol.htmhttp://wapda.gov.pk/htmls/garuk.htmhttp://wapda.gov.pk/htmls/bara.htmhttp://www.wapda.gov.pk/htmls/jabban.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/njhp.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/jinnahhydropower.htmlhttp://www.wapda.gov.pk/htmls/duberkpj.htmlhttp://www.wapda.gov.pk/htmls/duberkpj.htmlhttp://www.wapda.gov.pk/htmls/khankpj.htmlhttp://www.wapda.gov.pk/htmls/allaikpj.htmlhttp://www.wapda.gov.pk/pdf/RBODIII.pdfhttp://www.wapda.gov.pk/pdf/RBODI.pdfhttp://wapda.gov.pk/vision2025/htmls_vision2025/greaterthal.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/kcp.htmhttp://www.wapda.gov.pk/pdf/RainCanal31122010.pdfhttp://www.wapda.gov.pk/htmls/sataparapj.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/sdp.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/sdp.htmlhttp://www.wapda.gov.pk/pdf/ManglaR1010.pdfhttp://wapda.gov.pk/pdf/MiraniDam.pdfhttp://www.wapda.gov.pk/htmls/GomalZamDam23.htmhttp://en.wikipedia.org/wiki/Taskhttp://en.wikipedia.org/wiki/Teamhttp://en.wikipedia.org/wiki/Social_systemhttp://en.wikipedia.org/wiki/Planhttp://en.wikipedia.org/wiki/Sciencehttp://en.wikipedia.org/wiki/Business


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FEASIBILITY STUDY IN HAND (HYDROPOWER PROJECT) Golen Gol, Dasu, Bunji, Keyal Khwar, Lawi, Palas Valley (Chor Nullah), Spat Gah, Basho,

Phandar, Thakot, Patan, Tarbela, LBOD STAGE-1 BADIN AREA DRAINAGE SYSTEM, Mangla, Warsak, Renala, Chitral, Kohala, Harpo.

Mission:

A mission statement is a statement of the purpose of an organization and its reason forexisting.

Miss ion of WAPDA

Our mi ss ion i s t o b r ing the a ssu rance o f ene rgy to ou r cus tomers , wi t hwo r ld c l a ss quality and commitment for satisfaction as we continue in our quest forexcellence.

Vision:

Vision statements reflect the ideal image of the organization in the future. They create a focal point for strategic planning and are time bound, with most vision statements projected for a period of 5 to 10 years. The vision statement communicates both the purpose and values ofthe organization. For employees, it gives direction about how they are expected to behave andinspires them to give their best. Shared with customers, it shapes customers understanding ofwhy they should work with the organization

Vision 2025 WAPDA has formulated a comprehensive $25 33 billion National Water Resource andHydropower Development Program, entitled Water Vision 2025. The Water Vision2025 projects are expected to generate 16,000 MW of hydroelectricity. Other goalsare to prevent water shor tages , l imi t d rought and increase water s to rage fora growing population. Five massive hydropower projects have been announced

by the Pres id en t of Paki st an ; th ese are to be completed by 2016, with a generationcapacity of 9,500 MW. Two of the projects are ready for construction, while three are in

the stages of feasibility studies and preparation of tender documents. Water Vision2025 consists of three phases. Phase I was expected to start in 1993 but wasde l ayed . The p r io r i t y o f wa te r sec to r p ro j ec t s unde r Phase I o f Wate rVi s ion 2025 a re Gomal Dam( NWFP) ,Mirani Dama nd Mithan Kot Barrage atKachhi Canal( Balochistan)raising of Mangla Dam( Azad Kashmir), Greater Thal Canal

phase I (Punjab) and Thar/Rainee Canal s phas e I (Sindh ). The to ta l cos t of these PhaseI projects will be $2.467 billion with a construction period of five years. UnderPhase II ,Hingol Dam, Balochistan Dam and Satpara Dam (Northern Areas), ChashmaRight Bank Canal and Khurram Tangi Dam( NWFP), phase II of th e Grea te r ThalCanal Akhori Dam and Sanjwal Dam( Punjab), phase II of Thar/Rainee Ca na ls ,Ga jna i and Sehwan Bar rage (S indh ) wi l l be comple t ed i n 3 6 yea rs ,

excep t Basha Dam, which will take 8 10 years for its completion. The total costof Phase II projects will be$8.94 billion. These 11 projects will have a storage
http://wapda.gov.pk/vision2025/htmls_vision2025/gghp.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/dhp.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/bhp.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/keyalkhp.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/lhp.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/palas.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/sgs.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/basho.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/phandar.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/thakot.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/patan.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/tarbelainformation.htmlhttp://www.wapda.gov.pk/htmls/Lbodbadin.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/mangla.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/warsak.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/renala.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/chitral.htmlhttp://www.wapda.gov.pk/vision2025/htmls_vision2025/kohala.htmlhttp://www.wapda.gov.pk/vision2025/htmls_vision2025/harpo.htmlhttp://en.wikipedia.org/wiki/Gomal_Damhttp://en.wikipedia.org/wiki/Mirani_Damhttp://en.wikipedia.org/w/index.php?title=Mithan_Kot_Barrage&action=edit&redlink=1http://en.wikipedia.org/wiki/Kachhi_Canal_Projecthttp://en.wikipedia.org/wiki/Mangla_Damhttp://en.wikipedia.org/w/index.php?title=Hingol_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Balochistan_Dam&action=edit&redlink=1http://en.wikipedia.org/wiki/Satpara_Damhttp://en.wikipedia.org/w/index.php?title=Khurram_Tangi_Dam&action=edit&redlink=1http://en.wikipedia.org/wiki/Akhori_Damhttp://en.wikipedia.org/w/index.php?title=Sanjwal_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Basha_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Basha_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Basha_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Sanjwal_Dam&action=edit&redlink=1http://en.wikipedia.org/wiki/Akhori_Damhttp://en.wikipedia.org/w/index.php?title=Khurram_Tangi_Dam&action=edit&redlink=1http://en.wikipedia.org/wiki/Satpara_Damhttp://en.wikipedia.org/wiki/Satpara_Damhttp://en.wikipedia.org/w/index.php?title=Balochistan_Dam&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Hingol_Dam&action=edit&redlink=1http://en.wikipedia.org/wiki/Mangla_Damhttp://en.wikipedia.org/wiki/Kachhi_Canal_Projecthttp://en.wikipedia.org/w/index.php?title=Mithan_Kot_Barrage&action=edit&redlink=1http://en.wikipedia.org/wiki/Mirani_Damhttp://en.wikipedia.org/wiki/Gomal_Damhttp://www.wapda.gov.pk/vision2025/htmls_vision2025/harpo.htmlhttp://www.wapda.gov.pk/vision2025/htmls_vision2025/kohala.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/chitral.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/renala.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/warsak.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/mangla.htmlhttp://www.wapda.gov.pk/htmls/Lbodbadin.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/tarbelainformation.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/patan.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/thakot.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/phandar.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/basho.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/sgs.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/palas.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/lhp.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/keyalkhp.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/bhp.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/dhp.htmlhttp://wapda.gov.pk/vision2025/htmls_vision2025/gghp.html


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capacity of 12.79 million acre-feet, would generate over 3362 mW of power, and wouldirrigate 1.4 million hectares of land. Under Phase III, Yugo Dam, Skardu Dam, Dhok Dam, Rohtas Dam, Naulang Dam and Khadji Dam will be completed

Structure:Structure of an organization is the typically hierarchical arrangement of lines of Authority,communications, rights and duties of an organization.

Organizational structure determines how the roles, power and responsibilities are assigned,controlled, and coordinated, and how information flows between the different levels ofmanagement.

WAPDA is classic examples of vertical structure. Vertical organizational structures arecharacterized by few people at the top and increasing numbers of people in middle

management and lower level positions. In other words, a few people make policy anddecisions, and many people carry them out. Governments often lean toward them becausethey create very defined job scopes and powers--each person has a clear role to play. Verticalstructure is the classic bureaucracy and is epitomized and originated in one of the oldestgovernment functions

Organization Chart of WAPDAThe Authority is comprised on Chairman, 03 Members - Water, Power & Finance &a Secretary.

MD (Admn)GM (CCC)

RESTRUCTURED

POWER WING

SOURCE OF MANPOWER FORSUPPORT SERVICES

PROVIDECHARGEABLE SERVICES

DISCOsGENCOs NTDC

(3) (1) (8)

Autonomous Companies

Authority

HYDELDEVT.

WATERWING

HYDELOPERATIONS

FINANCEWING

COMMONSERVICES

RESIDUALASSETS

THE NEW W PD

WAPDA( POST- RESTRUCTURING SCENARIO )
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Member (Finance)Chief AuditorDG (Finance) B&CDG (CM) W

DG (Insurance)

Member & M.D. (Power)GM (Hydel) Opr.GM (Hydel) Dev.GM (Finance) Power

GM (Training)CE (Coord) PowerCE/Principal (WEA), FaisalabadPrincipal (WSC), Islamabad

Member & M.D. (Water)GM (Coord & Mon) WaterGM (Hydro Planning)GM (Projects) North

GM (Planning & Dev.)GM (Tarbela)GM (GBHP)GM (M&S)GM (Projects) SouthGM (Central) WaterGM (Technical Services)GM (Diamer Basha Dam)GM (Finance) WaterGM (Land Sett. & Rehab.)GM (CDO) WaterCEO (Neelum Jhelum)Advisor (DBD)Advisor (NWRDP)Advisor (Northern Areas)Consultant (Mega Dams)Advisor (Hydel)GenerationWAPDA,

Life Cycle of an Organization:

The organizational life cycle is the life cycle of an organization from its creation to its termination.

There are five level/stages in any organization.

BirthGrowthMaturityDeclineDeath
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In View of above matrix WAPDA is Public Sector Star.WAPDA is a Mature organization at Formalization Stage where it is facing too much redtapism.

Culture of an Organization:

Organizational culture is the collective behavior of humans who are part of an organizationand the meanings that the people attach to their actions. Culture includes the organizationvalues, visions, norms, working language, systems, symbols, beliefs and habits. It is also the

pattern of such collective behaviors and assumptions that are taught to new organizationalmembers as a way of perceiving, and even thinking and feeling. Organizational culture affectsthe way people and groups interact with each other, with clients, and with stakeholders.

By describing the distinctive rituals, stories, symbols, power and organizational structures and

control systems that can contribute to the organizations worldview one can more clearlycharacterize an organization's culture

In WAPDA Bureaucratic management approach is Used, Which emphasized the necessity oforganizations to operate in rational way instead of following the arbitrary whims orirrational motions and intentions of managers. Different characteristics in bureaucracies thatwould effectively conduct decision-making, controlling resources, protecting workers andaccomplishment of organizational goals.

Management Culture of WAPDA has the following Characteristics:

Proper Division of Labor Division of labor specialization is fixed and there is a balance between power andresponsibilities.

Chain of Command The chain of command or organizational hierarchy is constructed in a way that informationrelated to decision and works can flow effectively from top to bottom.

Separation of personal and official property Officers and organization's assets are separate and can to be treated as same by the owner orthe organization.

Application of Consistent and Complete Rules There are proper rules and regulations in the organization for running the organization. Theserules are followed in every steps of the organization and they are equally applicable for everyemployee of organization.

Selection and Promotion Based on Qualifications The selection and promotion of workers is based on equalization's like; skills, experience, age.It is not influenced by personal relations and benefits. Training in job requirements and skills.There is a difference between management and other parts of organization and training andimproving skills of management is important.


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Following features are the principle of WAPDA s Management Culture:

High degree of Division of Labor and Specialization. There is a well-defined chain of command.

It follows the principle of Rationality, Objectively and Consistency. The relationship among the employees of the organization is Formal and Impersonalrelations. And its based on positions and not on personalities.

Rules and Regulations are well defined and it indicates the duties and rights of theemployees. These rules apply to everyone from to bottom of organization and must bestrictly followed.

Selection and Promotion is based on Technical qualifications. Only Bureaucratic or legal power is given importance.

LEARNING ORGANIZATION :

A learning organization is the term given to an organization that facilitates the learning of itsmembers and continuously transforms itself. Learning organizations develop as a result of the

pressures facing modern organizations and enables them to remain competitive in the businessenvironment. A learning organization has five main features; systems thinking, personalmastery, mental models, shared vision and team learning.

A learning organization is an organization skilled at creating, acquiring and transferringknowledge, and at modifying its behavior to reflect new knowledge and insights.

WAPDA is one of the largest employers of human resources in Pakistan. Over theyears WAPDA has built-up a reservoir of Technical know-how and expertise whichhas made it a modern and progressive organization.

To maintain tempo of work in such a large organization, it is imperative to havestanding arrangements for management and technical training of the officers and staff.Tra in ing ac t i v i t i e s a re conduc ted in WAPDA to impar t bas i c and advancekn ow le dg e to al l officers and staff during different stages of their career. Anumb er of train ing ins titutes are functioning at various places.

WAPDA Administrative Staff College, Islamabad.

WAPDA Engineering Academy, Faisalabad

WAPDA is skilled at five main activities which are required by a Learning organizations i.e : Systematic problem solving, Experimentation with new approaches, Learning from their own experience and past history, Learning from the experiences and best practices of others, Transferring knowledge quickly and efficiently throughout the organization.


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TRADITIONAL ORGANIZATION:

WAPDA uses the same type of organizational structure as is commonly found in the most of public sector. The first being the functional or traditional structure that is typical of manyorganization in Pakistan , with government adopting the hierarchical or pyramidal structure. The tasks are broken into simple parts, each the responsibility of a different unit ofemployees, each defined by specific rules and regulations. A potential problem with this top -down structure is insufficient responsiveness to citizen concerns and costly inefficiencies.

Following problems also exist in WAPDA s Management Culture : The emphasis only on rules and regulations. There is unnecessary delay in decision-making due to formalities and rules of

Bureaucratic Organization. Coordination and communication hampered because of too much formality and rules. Bureaucracy involves a lot of paper work and has just too much level of authority

which results in lot of wastage of time, effort and money. Not ideal for efficiency. Because of its too much formality, Bureaucratic approach is not suitable for

government organizations. Too much importance is given to the technical qualifications of the employees for

promotion and transfers. Dedication and commitment of the employee is not considered. Limited scope for Human Resource (HR). No importance is given to informal groups

and neither any scope is given to form one.

Bureaucratic approach worked as a solution to problems of traditional administrative systems.But it is not the prefect or close to perfect solution. The bureaucratic structure gives all theimportance and power to the top level management. And the rules and levels of authority are

just too much. It gives a greater sense of security to the employees. But bureaucraticmanagement gives window for red -tapism .

Analysis:Financial Ratios AnalysisFinancial data has been collected from last three annual reports. Industry included the KarachiElectric Supply Company, Kot Addu Power Company, Japan Power Plant and SouthernElectric Power Company.

Liquidity RatiosCurrent Ratio (Favorable Result)


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Fig (a)Quick Ratio (Favorable Result)

Fig (b)Interpretation:Liquidity ratios refer to position of company extent to meet with its short term obligations. Onthe basis of financial statements given in annual reports, current and quick ratio has beencalculated and compared with the industry average. The results are quite satisfactory. Bothcurrent and quick ratios are above 1 as fig (a) and Fig (b) means that WAPDA has morecurrent assets as compared to current liabilities. Compared to Industry average this is below1. It is also inferred that WAPDA has sufficient working capital to manage its normal day today operations. There is one alarming point which must be consider by the management ofWAPDA that is large portion of current assets consisted of accounts receivables.

Leverage Ratios

Debt-to-total asset ratio (Favorable Result)

Fig (c)Debt-to-equity ratio (Favorable Result)

0

1

2

2007 2008 2009

WAPDA

INDUSTRY

AVERAGE

0

1

2

2007 2008 2009

WAPDA

INDUSTRYAVERAGE

0

0.2

0.4

0.6

0.8

2007 2008 2009

WAPDA

INDUSTRY

AVERAGE


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Fig (d)Interpretation:Leverage ratios estimate the position of firm with respect to firms capital structure; basicallyit calculates the portion of debt compared to other modes of financing. Debt-to-total assetratio calculates the percentage of total funds provided by the creditors. As per figure (c)

WAPDA has portion of debt less than 40% of total funds Compared with the industry averagewhich have more than 60% of their total funds consisted of debts. Debt-to-equity ratiocalculates the percentage of total funds provided by creditors as compared versus by owners.Compared with industry average as shown in Fig (d) it is quite satisfactory. If we simplify thegraph result it is like this Debt : Equity : : 33% : 67% compared to Industry average whichtotally opposite Debt : Equity : : 67% : 33%. Activity Ratios Fixed Asset Turnover (Unfavorable Result)

Fig (e)Total Asset Turn over (Unfavorable Result)

Fig (f)Interpretation:Turnover Ratios calculates to what extent the firm is utilizing its fixed and total assets togenerate business i-e sales. Both Fixed and Total asset turnover ratios as per fig (e) and fig (f)are below industry average which shows the ineffectiveness and inefficiency of operationsand management. It also refers to wastage of resources.Profitability Ratios

0

1

2

3

4

2007 2008 2009

WAPDA

INDUSTRY

AVERAGE

0

0.5

1

1.5

2007 2008 2009

WAPDA

INDUSTRY

AVERAGE

0

0.20.4

0.6

0.8

2007 2008 2009

WAPDA

INDUSTRY

AVERAGE


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Gross Profit Margin (Favorable Result)

Fig (g)

Operating Profit Margin (Favorable Result- but alarming)\

Fig (h) Net profit Margin (Favorable Result- but alarming)

Fig (i)Interpretation:All the three profitability as per fig (g), fig (h) and fig (i) are well above industry average butthere must be point of concern for management that profit margins of WAPDA are notgrowing. WAPDA is only sustaining its profit with little decline compared with industryaverage which is growing with progressive percentages. The one reason is that due to shortageof electricity the business of private Ltd. Companies is growing. WAPDA is purchasingelectricity from them and also WAPDA is paying big amounts to pay rents of rental power

plants. So the expenses are increasing with increasing rate which negatively affected the profits of WAPDA.

0

5

10

15

2007 2008 2009

WAPDA

INDUSTRY

AVERAGE

0

5

10

2007 2008 2009

WAPDA

INDUSTRY

AVERAGE

-4

-2

0

2

4

6

2007 2008 2009

WAPDA

INDUSTRY

AVERAGE


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Internal Factor Evaluation

Key Internal FactorsWeight Rate*

WeightedScore

Strengths

1 No Direct Competitor 0.05 4 0.2

2 Government Support 0.04 3 0.12

3 Tax Evasion 0.02 3 0.06

3 Big Infrastructure/well established operations 0.05 4 0.2

4 Economies to Scale 0.04 4 0.16

5 Technical Competency 0.05 4 0.2

6 Control over Resources 0.05 4 0.2

7 Low Employee Turnover 0.03 3 0.09

8 Strong Financial Standing 0.05 4 0.2

9 Growing Demand of Electricity 0.03 3 0.09

Weaknesses

1 Corruption 0.07 1 0.07

2 Weak Management 0.15 1 0.153 Very low delegation of authority/No team work/lack of employee

empowerment0.05 1 0.05

4 Lack of HR Dept to Develop Human Resources 0.05 1 0.05

5 Record is maintained manually (Lack of MIS) 0.04 1 0.04

6 Lack of Civil Eng. Skills 0.05 1 0.05

7 Poor Reward System 0.03 1 0.03

8 Low Morale Employees/ Time wastage during office hours 0.05 1 0.05

9 Inefficiency and wastage of resources 0.03 1 0.03

10 Cost Over run 0.02 2 0.04

11 Lack of R & D department 0.05 1 0.05

TOTAL1.00 2.13

*1 = Major weakness, 2= Minor weakness, 3= Minor Strength, 4= Major Strength

The score 2.13 indicate the very weak internal position of WAPDA. WAPDA has controlover resources, technical competency, good financial position and high demand but still not

performing? The main reason is that company has serious flaws in the management asindicated by given rate. The management plays decisive and key role in large organizations.

There is no planning particularly long term planning in WAPDA. In year 2000 it was certainthat the demand for electricity would be increased rapidly next few years. But there was not


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Following strategies would be suitable as per EFE analysis: As WAPDA has huge potential capacity of 50,000MW. But due to Lack of funds for

new projects WAPDA is unable to cash this huge potential. At the same time Chinaoffers Government of Pakistan for development of new projects. Joint venture or

contract with China would be very suitable option to meet with energy demand infuture.

The main reason of lacking of consistent policies in WAPDA is dependence on theGovernment policies. WAPDA should strengthen internal system of organization andto make independent policies considering what-if analysis. It will help WAPDA tosustain its policies with may be little variation even in case of change of government.

As in number of Mega Projects are in line. There will be billions of business inconstruction sector. WAPDA is paying billions to contractors. WAPDA should havedeveloped its own Construction material factories to gain economies of scale.

Law and order and border situation is also threat for WAPDA, as number of times dueto bad terms with neighbor country, WAPDA faced blockage or shortage of water inDAMS. Department tours to neighbor country would help smooth relations.

The Grand Strategy Matrix for WAPDA:

Rapid Market(Industry)Growth

WAPDA

WeakCompetitivePosition

StrongCompetitivePosition

Slow Market(Industry)Growth

Interpretation:As Energy sector in Pakistan is growing very rapidly. The demand for electricity is

increasing. As mentioned in earlier section that WAPDA has no direct competitor, so it hasvery strong competitive position i-e monopoly in the market.


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Suggested Strategies:WAPDA should focus on the market development and should make proper capacity building

program to enhance the capacity for generation of electricity.As WAPDA has excess resources and well established big infrastructure, if there is

opportunity WAPDA should go for backward, forward and horizontal integration. As alreadyWAPDA has its own distribution channels, so there is no need of forward integration butthere is room for betterment to develop distribution channels as electricity is wasted to largecapacity due to line losses. WAPDA has been seriously lacking in Civil Eng. Skills. For new

projects, it has to rely on contractors. It is Billion dollar businesses. For cement and otherconstruction material WAPDA should have develop its own plants.As WAPDA has government support, control over resources and strong competitive position.So WAPDA should take risk to go for new MEGA projects to overcome the shortage ofelectricity in the country.

SWOT MATRIX of WAPDA:

STRENGTHS WEAKNESSES

1 No Direct Competitor 1 Corruption

2 Government Support 2 Weak Management

3

Tax Evasion 3 Very low delegation of authority/Noteam work/lack of employeeempowerment

4Big Infrastructure/well establishedoperations

4 Lack of HR Dept to Develop HumanResources

5Economies to Scale 5 Record is maintained manually (Lack of

MIS)

6 Technical Competency 6 Lack of Civil Eng. Skills

7 Control over Resources 7 Lack of funds for New Mega Projects

8 Low Employee Turnover 8 Poor Reward System

9Strong Financial Standing 9 Low Morale Employees/ Time wastage

during office hours

10 Growing Demand of Electricity 10 Inefficiency and wastage of resources

11 Cost Over run

12 Lack of R & D department

ORTUNITIES SO STRATEGIES WO STRATEGIESntial Capacity of 50,000 MW throughel means

1

Rent out distribution Channels tocontractors and focus on capacitybuilding program to enhancegeneration capacity i-e new MegaProjects. (S4, O5)

1 Make contract with China for newMega Projects (W7, O2)

a is interested to take new Megaects 2

Beside new Mega projects also startssmall projects and alternative energyways also be a good option. (S7, O6)

2Privatize up to max limit of 49% likePTCL to bring efficiency and optimaluse of resources. (W10, W11, O3)

atisation3

In spite of contracts make Partnershipand joint ventures with Construction,steel and Cement Companies. (W6, O4)

Venture or Partner ship

ontracting to private Cos inibution and new projectswing Economy

Export electricity if Vision 2025 hasessfully been achieved


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REATS ST STRATEGIES WT STRATEGIES& Order Situation of country

nge of Government Policies/Politicalbility

1

Establish own cement plants formanufacturing inputs for new Megaprojects (S7, T6)

1 Joint Venture or Partnership withconstruction and Cement Companies(W6, T7)

ronment Changes/ Natural Disasters,ost of the Dams are in Hilly Areas 2

Arrange WAPDA managementsOfficial tours to neighbor countries formaintaining good bilateral terms. (S2,T4, T5)

ical Terms with Neighbor Countries

ders Situation

of Construction Costs

ractors bargaining

Conclusion and Recommendations :

There is lot of potential in the market and WAPDA has all the inputs which are required toconvert this potential to actual but the main hurdle is poor management and lack of strategicvision. Several strategic tools have been applied and relevant strategies are given. Though it isnot possible to bring total change in short time but still in my opinion it is right time to

positively move toward new changes. Because there is so much pressure on Governmentregarding this critical issue of electricity and Government will not resist if there is a solidstrategic plan and restructuring proposal come from management of WAPDA. Most of therecommendations are given in previous heads, to conclude final recommendations are asfollows:

The first is regarding restructuring (replace rigid organization structure withresponsive i-e revisit the number of officials involve in making a decision and subtractextra links.)

Introduction of IT based recording systems within all departments Management training programs should hold for junior, middle and top management. Proper Research & Development Department is established. There is a department directly responsible to Chairman for monitoring and controlling

of corruption.

Documents

Learning Organization project on WAPDA