Efficient Management of Power Generation and its Impact on Organizational Performance in Pakistan

Abstract

Energy sector in Pakistan has passed through a number of phases since came into being in 1947. The electricity generating capacity has improved a lot but not according to the increasing demand of energy. The one of foremost problems of Pakistan’s energy sector is inefficient operation of power generating plants. This research work is a part of studies on efficient management of both private and public power generating companies in Pakistan. It observes the condition of efficient management including different variables connected with performance of the power generating companies. Efficiency is the comparison of what is actually produced with what can be achieved with the same consumption of resources. It is an important factor in determination of productivity and hence financial output of the company. Efficient management means, how efficiently every level of management of the organization is using the available resources to produce maximum output performance. The best way to do this is to empower skilled, qualified, and credentialed employees at all levels in the organizations. This research study provides the analysis and describes the impact of efficient management employee, methods, and strategy on the performance of power generating organizations in Pakistan. This study used a questionnaire comprising a five point Likert scale, to collect primary data from the employees of different public and private power generating organizations. There was government owned power sector only before 90s. Independent Power Producers (IPPs) started producing electricity in early 90s. As a result the load shedding duration in country had been reduced. The study considered several aspects including health safety and environment at work, company policy and strategic management decisions, competency of employees at all levels including their education, training, skills, motivation, appraisal and reward system, facilities including management information system of the organization. Primary data was collected from the employees of the power generating companies to find out the method of high performance through structured questionnaire and personal interviews, through emails and telephones. Results of study showed that four variables consisting company’s Policy, Eduction, Skills & Experience of employees, Employees competency and Employees motivation impact the performance of the power companies in Pakistan. Coercive strategy is not always impact the companye’s performance positively but working under perssure the coercive strategy may impacte the performance of the company positively but for longterm this strategy impact the performance negatively.

Key Words: Efficiency, Efficient management, Education, Competency, Performance