Attock Oil Refinery (ARL)

Attock oil refinery (ARL) was incorporated in1992 in Pakistan, with a production capacity of 43,000 barrels per day.  In November 1978, Attock Refinery Limited (ARL) was formed as a Private Limited Company to take over the Attock Oil Company Limited (AOCoperation)'s of refining crude oil and delivering refined petroleum products. In June 1979, it was transformed into a Public Limited Company, and its shares are now traded on the Pakistan Stock Exchange Limited. The company is also registered with the Pakistan Central Depository Company Limited (CDC).
By 2013, the company’s net sales had reached Rs. 163,301 million.
ARL’s core values included; integrity and ethics, quality, learning, motivation, team work and empowerment.
Their mission is “We will utilize the best blend of the state-of-the-art technologies, high performing employees, excellent business processes and synergetic organizational culture, thus exceeding the expectations of all stakeholders.
The vision is “To be a world-class leading organization continuously providing high-quality, diversified, environment-friendly resources and petrochemicals.
Attock refinery performance appraisal was based on what the employee accomplishes, what is the employee is, what the employee knows and what the employee feels. Now the highlight of the new system is “Management by Objectives”
As a regard to the change in the performance appraisal system, challenges arose and the head of HR Asif Saeed had concerns that needed to be addressed. Was the real problem the modified PMS or the employees attitude about? Were the employees’ perceptions just a routine and normal reaction or did they allude to deeper issues that could eventually confront the organization? Most importantly, what were ARL’s options for solving these problems?

The key Internal and external factors are:
?Inventory Management – Based on the details provided in the Attock Refinery Limited: Performance Management case study, we can conclude that Attock Refinery is not efficiently managing the inventory and cash cycle. According to Asfia Obaid, Umer Sultan Janjua, there is huge scope of improvement in inventory management.
Employees distaste towards the new PMS- this stems mostly from the unfair grading from management and insufficient rewards offer to employees for their services either in form of compensation and benefits or recognition in the organization. Management skills, facilities, financial resources, marketing talents, and a poor brand image can all be sources of this weakness.
Customer Dissatisfaction – Even though the demand for products has not gone down but there is a simmering sense of dissatisfaction among the customers of Attock Refinery. It is reflected on the reviews on various on-line platforms. Attock Refinery should focus on areas where it can improve the customer purchase and post purchase experience.
Track record on environment consideration is not very encouraging – Attock Refinery track record on environmental issues is not very encouraging. According to Asfia Obaid, Umer Sultan Janjua, this can lead to consumer backlash as customers are now considering environmental protections as integral to part of doing business.
Low Return on Investment – Even though Attock Refinery is having a stable balance sheet, one metrics that needs reflection is “Return on Invested Capital”. According to Asfia Obaid, Umer Sultan Janjua in areas that Attock Refinery operates in the most reliable measure of profitability is Return on Invested Capital rather than one favored by financial analysts such as – Return on Equity & Return on Assets.
Lack of adequate training and development- As stated in the case employees felt a serious gap in training opportunities, they were not well defined or left the employees not fully grasping the concepts. Additionally they were skeptical when it came to foreign training needing a thorough analysis and legal framework done. 
Little to no opportunities for upward movement in the organization leaving the employees concerned about their career progress and also the minimal options designed for rewarding performances, seniority and grade levels. 

Challenges Faced by ARL

 

The best Alternative available for the organization
The main idea of the problem statement is to answer the 5 w’s that include the answering who, what, where and why, to allow the organization resolve the problem, by stating it in clearly in 2 to 3 lines.
In recent period, the problems statement are widely used by the firms to allow the management execute the improvement process or identify the loopholes that are effecting the overall performance or profitability of the company. Moreover, the problem statement allow the management to trim down the symptoms of the problem an organization is facing and look on to the real problem that is causing the damage to any specific aspect of the company.
Basically, developing Attock Refinery Limited Performance Management problem statement is an extensive process and requires the proper brain storming of the teams in order to identify the underlying loopholes or inefficiencies within the organization.
Moreover, clarity of the Attock Refinery Limited Performance Management problem statement is important to maintain, in order to avoid the misunderstanding between the employer and employees. The clear problem statement is developed by stating the factors and the operations getting effected and its overall impact on the organization specific the areas, such as Profitability, sales or brand equity.

The course of action Mr. Saeed can implement for Attock Refinery Ltd to somewhat solve the challenge of their PMS.
The company's managers can think about the various options and methods. Following the development and evaluation of the possibilities, a recommendation is given based on the best-suited solution that provides the most value to the company and addresses the problem simply. The advice not only provides a solution to the problem, but also illustrates the implementation process and the steps that the organization must take to be successful.         In order to properly implement the alternatives, a solid suggestion must encompass crucial aspects such as how the business will implement the alternatives, what benefits it will obtain while using the alternatives, and what costs the organization will have to overcome or handle.
Furthermore, after the option is chosen, the managers should ensure that the advice includes what change it would bring to the firm, such as a 20% increase in Attock Refinery Limited Performance Management sales or profits, or the sustainability or growth in market share. These elements must be addressed in the recommendation in order for it to be strong and firm, and for stakeholders to be able to connect the problem and the solution, resulting in a better understanding. However, managers should always have a plan B in place, so that if the results do not come out as expected, the second set of recommendations can be incorporated into the plan to allow the organization to rapidly move to plan B to prevent losses and maintain the company's market presence.
Finally, it is critical to include past findings into the recommendation in order to make the presented Solution more acceptable. A good Attock Refinery Limited Performance Management advice is one that takes into account previous findings. This is important because it allows the reader and stakeholders to understand the proven facts and previous results that such recommendations have yielded, resulting in increased acceptability and the determination of the plan that may need to be implemented in order to avoid delays and resistance in the organization while implementing the change. 
In reality, the set of recommendations provided should include a contingency plan as well as other courses of action for both Plan A and Plan B. This strengthens and accepts the recommendation.
Furthermore, it allows stakeholders to view other solutions if the given set of alternatives does not work, saving time, effort, and the need to start over, thus making it cost effective. In the proceedings, managers should also take into consideration of the time being spent on these areas; ensuring that it’s not a hefty amount of time being taken and ensuring the right solution is put forward.
Mr. Asif Saeed can opt to include his decision making, value their productivity and dedication by providing them suitable reward systems and training and development opportunities. He can budget the firm for such expenses and increments.
Additionally, not only did the employees have a deeper issue with the PMS but like the HR head stated the new PMS had a long way to go, he may considering adding the 5W’s to the new Management by objectives as a means of ensuring employees know that they are valued and their hard work isn’t gone without notice.