Sui Northern Gas Pipe Lines Limited
Sui Northern Gas Pipe Lines Limited
Sui Northern Gas Pipe Lines Limited
ASSIGNED BY:
PROF. S SOHAIL
ASSIGNED TO:
MUBASHRA ARIF
AYESHA RAFIQUE
JAWAD ABDUL KHALIQ
SAMREEN NAEEM
AHMED IFTIKHAR
HASSAN QADIR
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SUI NORTHERN GAS PIPE LINES LIMITED
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ACKNOWLEDGEMENTS
We are very grateful to Mr. ZULQURNAIN AHMAD Senior General manager Human
Resource Department. He gave us his valuable time besides being busy. We also want to
thank Prof. Sohail Saleem who encourages us to study a Pakistani based company to learn
about this very subject more closely with practical information and knowledge.
TABLE OF CONTENTS
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1. Introduction to the company 6
4. Corporate Strategy 9
10. Organogram 13
23. Promotions 35
25. Conclusion 37
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SUI NORTHERN GAS PIPE LINES LIMITED
Introduction
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Sui Northern Gas Pipelines Limited (SNGPL) is the largest integrated gas company serving
more than 3.4 million consumers in North Central Pakistan through an extensive network in
Punjab and NWFP. The Company has over 46 years of experience in operation and
maintenance of high-pressure gas transmission and distribution systems. It has also expanded
its activities to undertake the planning, designing and construction of pipelines, both for itself
and other organizations. SNGPL operates in a region of the nation that has a rapidly growing
demand for natural gas and power generation due to significant industrial development.
SNGPL was incorporated as a private limited Company in 1963 and converted into a public
limited company in January 1964 under the Companies Act 1913, now Companies Ordinance
1984, and is listed on all the three Stock Exchanges of the Country.
SNGPL has 3,451,142 consumers comprising Commercial, Domestic, General Industry,
Fertilizer, and Power & Cement Sectors. Annual gas sales to these consumers were 584,895
MMCF worth Rs. 168,933 million during Jul 08 - Jun 09. SNGPL has 3,451,142 consumers
comprising Commercial, Domestic, General Industry, Fertilizer, and Power & Cement
Sectors. Annual gas sales to these consumers were 584,895 MMCF worth Rs. 168,933
million during Jul 08 - Jun 09.
SNGPL has following core values which are completely embedded in their culture.
COMMITMENT
We are committed to our vision, mission, and to creating and delivering stakeholder
value.
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COURTESY
We are courteous - with our customers, stakeholders and towards each other and
encourage open communication.
COMPETENCE
We are competent and strive to continuously develop and improve our skills and
business practices.
RESPONSIBILITY
We are responsible as individuals and as teams - for our work and our actions. We
welcome scrutiny, and we hold ourselves accountable.
INTEGRITY
We have integrity - as individuals and as teams - our decisions are characterized by
honesty and fairness.
Vision Statement
To be the leading integrated natural gas provider in the region seeking to improve the
quality of life of our customers and achieve maximum benefit for our stakeholders by
providing an uninterrupted and environment friendly energy resource.
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Mission Statement
A commitment to deliver natural gas to all door steps in our chosen areas through
continuous expansion of our network, by optimally employing technological, human
and organizational resources, best practices and high ethical standards.
Corporate Strategy
Increase and expand gas distribution networking throughout the country by increasing
profitability and customer satisfaction.
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Play its role in the Country’s economic prosperity by industrial outreach through gas
supply to reduce dependability on imported liquid fuels and to save foreign exchange.
Endeavour to bring down Unaccounted for Gas (UFG) losses to internationally
acceptable levels.
Create awareness and enforce adherence to Health, Safety & Environment (HSE)
policies and standards.
Emphasize Human Resource Development (HRD) for quality work and customer
satisfaction.
Maximize the sale of available gas from indigenous sources by entering into new
areas through development and expansion of the requisite infrastructure.
Introduce policies and practices leading the company from a monopoly situation into
a competitive market, thus facilitating the impending privatization.
Improve financial discipline through prudent investment and borrowing.
Improve internal controls and risk management to achieve maximum operational
efficiency of the system.
Automate the Company’s systems and processes through Enterprise Resource
Planning (ERP) for better efficiency and internal control.
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It is very clearly evident from the corporate strategy and company’s strategic objectives that
company is right now in growth mode. Company is expanding its operations throughout the
country. So for meeting its goals and objectives company is using:
Future Projects
The conceptual study of Project-IX is underway to carry maximum gas beyond Multan, to
facilitate gas consumers from all walks of life in central Punjab and Northern areas of the
country. The basic intent of Project-IX is the elimination of bottle necks in SNGPL’s existing
transmission network and to transport gas to independent Power Plants in Punjab province,
through system up-gradation with loop lines and system compression enhancement, beside
construction of pipelines to absorb additional gas available from gas sources of Potohar
region and newly discovered Gurguri-Makori field in Karak District of NWFP province.
Finance committee
Audit committee
Human resource committee
The Human Resource Committee comprises six non-executive directors and the Chief
Executive. It is primarily responsible for making recommendations to the Board inter-alia for
maintaining a sound organizational plan of the Company, effective employees’ development,
compensation programme and specific succession plans for Senior Management positions.
Responsibilities
The Committee will be responsible for making recommendations to the Board for
maintaining:
A sound plan of organization for the Company.
An effective employee’s development programme.
Sound compensation and benefit and plans, policies and practices, designed to attract
and retain the caliber of personnel needed to manage the business effectively.
Functions
Review organization structure periodically to:
Evaluate and recommend for approval of changes in organization, functions, and
relationships affecting Management positions equivalent in importance to those on the
Management position schedule.
Establish plans and procedure which provide an effective basis for Management
control over company manpower.
Determine appropriate limits of authority and approval procedures for personnel
matters requiring decision at different level of Management.
Review the employee’s development system to ensure that it:
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Foresees the Company’s Senior Management requirement.
Provides for early identification and development of key personnel.
Brings forward specific succession plans for Senior Management positions.
Training and development plans.
Compensation and Benefits:
Review data of competitive compensation practices and review and evaluate policies
and programmes through which the corporation/Company compensates its employees.
Review salary ranges, salaries and other compensation for CEO and Senior.
Management/Executive Directors reporting to the CEO.
Powers
The Board has delegated its limited powers to the Human Resource Committee to deal with
certain human resource matters.
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Source: www.sngpl.com.pk
Under the committee and board of directors managing director is looking the company.
Under M.D there are several departments including Human Resource department.
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The Human Resource department work under Senior General Manager. Under Senior
General Manager, G.M Human Resource operations & G.M Training and Development
operate. Under these two G.Ms Chief of Human resource services operates.
Sui Gas Company Limited is engaged in the transmission and distribution of natural gas in
Pakistan. It is also engaged in the construction of high pressure transmission and low pressure
distribution systems. The Company is involved in certain activities related to the gas
business, including the purchase and sale of gas meters, and construction contracts for lying
of pipelines. The company is in growth mode and they are expanding their business day by
day by starting new projects, for starting new projects they required new employees who can
work on their projects that are why their demand is high as compare to the supply.
Interview
Observation
Interview:
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Employees about a particular job are interviewed about the specific work activities that the
job comprises. This interview is done by the supervisors and chief in charges at subordinate
level. While executive level and officer level employees are interviewed by chiefs and head
of the department sometimes depending upon the nature of the job.
Observation:
This method is adopted at blue collar jobs like for welders, meter readers, pipe fitters etc.
This observation of work is done by immediate supervisors to evaluate the working capacity
and technique of the worker.
Report Formation:
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Once the job analysis information has been collected, it is important to place it into a form
that will be useful to managers and human resource department, for this purpose company
uses HRMS Oracle to convert the data into useful information.
Managers and personnel specialists need to review job description and specification
frequently. This review is done with an eye on the corporate strategy so company updates its
job description and specification on annual basis.
JOB DESIGN
In SNGPL two basic approaches are used for designing the jobs of the employees:
Job rotation
Job enrichment
Job Rotation:
As the term suggests, job rotation is concerned with the action of enabling employees to
switch job roles or functions for a period of time. The overall goal is to develop the
individuals so that they have increased their skills, knowledge and experience by the end of
the process. SNGPL is using this approach from past 10 years.
Job Enrichment:
Job enrichment includes a number of different workplace practices, such as quality circles,
self-directed teams, job rotation, information sharing and others. One possible motivation for
adopting such practices is to challenge and motivate workers, and to encourage them to
participate in improving productivity, safety, and the quality of their product.
Objectives:
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To determine participants’ views of what has made them most and least productive in
past work situations.
To compare participants’ responses
To explore with participants conditions under which the principles of job enrichment
would likely be most and least effective.
SNGPL is also using this technique at top management level so that the management of today
can participate in the policy making of tomorrow.
Job Sharing:
In job sharing employees can share the work load of the job. In this technique people
belonging to same job caliber can easily divide the burden. In SNGPL mostly this technique
is used in departments like procurement, metering and monitoring.
RECRUITMENT
In SNGPL following methods are used for executive, subordinate and labor class jobs:
The company preferred to make employees at both level blue collars and white collars. They
hire little bit skilled employees then further train them according to the requirement and
nature of their job and the project they are going to dealing with.
Recruiting methods:
Company is using both internal and external recruiting methods. They go for the direct
advertisement for the executive level jobs and for this purpose they give advertisement on
their website as well as in both Urdu and English news papers.
At subordinate level most of the hiring is done from within the company. Like blood relations
are given the jobs of their deceased one’s (who died during job) and retired one’s and also of
employees who are in service.
Applying process:
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Applicants for the jobs have to apply online through company’s website where all required
data is being collected for the advertised post.
SELECTION PROCESS
Selection Criteria:
Short listing
Selection process of the company is, first of all receive the online application then
they need to analyze the academic career of the applicant , they check that either it is
up to the merit list or not then they short listed the applicants who have first division
throughout in their academic career.
Test
Then they take computer based test from the short listed applicants. The test is based
on:
Also while selecting the candidate company also asses the required technical as well soft
skills in the prospective employee.
Soft skills
Technical skills
As company is categorized as engineering company so the weight age among these 2 skills
is:
And at the end which applicants qualified for the next level they are called
for final interview
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Interview process:
Panel interviews based on 3-4 people are conducted from the selected applicants. This panel
is comprised of GM of the relevant department and Chiefs of that department and other top
heads.
Before issuing the appointment letter to the selected applicant a general checkup is held by
the company for the applicant. They provide their own general physician for the checkup of
the selected applicant.
EMPLOYEE RETENTION
SNGPL like any other organization wants to keep its employees which are a valuable asset
for the company committed to the company.
Gratuity
Pension
Provident
ORIENTATION
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The selected future employees then invited for orientation program.
The duration of the orientation program is usually of 10 days. Starts from 9:00a.m till
4:00p.m.The orientation program comprised of:
It depends upon the nature of job that what type of orientation should be used. Normally,
head of the department and other officers of the concerning department conduct this
orientation program. For blue collars informal orientation is used.
Purpose of orientation:
The purpose of orientation is to provide information to the employee about the company. Its
policies, procedures and the job span including retirement plan, benefits etc. company
management provides complete information about company.
Our Company:
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Organizational structure (Who are the key players)
Careers (What potential roles you will play)
Introductions:
First Contact:
The Client:
Their Business
Their Environment (Business, Technical)
The Application
Consulting:
Non-disclosure/Non-complete
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Do’s and Don’ts
Role of Consultant
Problem Solving Methods
Client Communication
Conflict Resolution
Consultant Expectations
Communication (Top-Down, Bottom-Up)
Professional Development
Technical Skills
Consulting Skills
Support:
Technical
Personal
Benefits:
Time-off/Vacations/Holidays
Healthcare
Education Assistance
Other (Reimbursements, Cars, etc.)
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There are following procedures used for training and development of the employees by the
organization:
Training
SNGPL used various methods and techniques for training its employees and these are:
On job training
In house training
Off job training
Induction training
On job training:
In on job training the employees are rotated into various departments to coin the skills and
learn the methodologies used in the organization. SNGPL is gas transmission and
Distribution Company so it has very wide operations and procedures which must be learned
and practiced by the employees.
In house training:
SNGPL provides in house training to its employees. Company has its own training institute
named as SNGTI (Sui Northern Gas Training Institute). Here the company invites
external speakers and trainers time and again to train their employees. Besides company has
This training institute provides training to the employees according to the requirements of the
job and the upcoming projects. More over it gives training not only for technical but for the
soft skills as well.
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Induction training:
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Off job training:
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Company also provides off job training to its employees in special circumstances. When there
is a project and a specialized skill is required in gas pressure checking or pipe installation
under a river or some canal in these cases if company required expertise so it mostly send its
employees for training purposes abroad or sometimes ask the foreign company to send
trainers to train their employees.
DEVELOPMENT
Employee development is a joint, on-going effort on the part of an employee and the
organization for which he or she works to upgrade the employee's knowledge, skills, and
abilities.
Everyone goes through several stages of development as they move from being a
career "beginner" to a full expert in their field. Each stage has specific needs and tasks
to consider.
As you work with employees on development, it can be helpful to look at their stage
in order to find the best kind of activities for them. If an employee has recently
completed a career change, he or she is probably in the "exploration and trial" stage.
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If, on the other hand, he or she has burned out on his or her career, he or she might be
in "disengagement" even though chronologically he or she might be in his or her early
thirties in age.
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Learn to work realities
Work independently independently
Learn how to cope
Independence and Produce significant
specialization results Deal with change or
lack of it
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Executive development program is mandatory at grade -3.GRADE 4 had to get training for
the gas control in overview of company and they are also trained for leadership skills.
Senior management has provided with outdoor training and external trainers are arranged for
work-shops in SNGDI. Successful employee development requires a balance between an
individual's career needs and goals and the organization's need to get work done. In this way
company make its executive level employees a useful figure in company’s strategy and
policy making.
GRADE RANK/DESIGNATION
1-3 OFFICERS
4 EXECUTIVE OFFICERS
5 SENIOR EXECUTIVE OFFICERS
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6 DEPUTY CHIEF OFFICER
7 CHIEF OFFICERS
8 GENERAL MANAGERS (G.M)
PERFORMANCE APPRAISAL
(1) Examines and evaluates an employee's work behavior by comparing it with preset
standards
(3) Uses the results to provide feedback to the employee to show where improvements
are needed and why?
Performance appraisals are employed to determine who needs what training, and who will be
promoted, demoted, retained, or fired. The performance appraisal is done either formally or
informally.
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Give employees feedback on performance
Identify employee training needs
Document criteria used to allocate organizational rewards
Form a basis for personnel decisions: salary increases, promotions, disciplinary
actions, bonuses, etc.
Provide the opportunity for organizational diagnosis and development
Facilitate communication between employee and administration
Validate selection techniques and human resource policies to meet federal Equal
Employment Opportunity requirements.
To improve performance through counseling, coaching and development.
The organizations uses the latest technique is MBO. The appraisal has started in June and
ends on July.
Features of MBO’s:
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Focuses attention on what must be accomplished rather than how it is
accomplished.
It is dynamic system which seeks to integrate the company’s need to clarify and
achieve its profits and growth targets with the managers need to contribute and
develop.
It is systematic and rational technique that allows management to attain maximum
results from available resources.
In SNGPL employees set goals for themselves which they have to achieve throughout the
year and these goals are in total integration with the strategic work approach. In the
organization KPI’s are used which indicate the level of performance of employees.
They include KPI about human resources management such as employee loyalty, labor
relation, compensation, training and development, recruitment etc.
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Recruitment KPI
Training KPI
Performance KPI
HR efficiency KPI
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Purchasing KPI
Purchasing KPI include KPI examples such as delivery on time , delivery is not enough
quantity / quality, quantity bought over required, purchasing cost, cost of purchasing units,
transaction cost unit of purchasing, suppliers rating.
Financial KPIs
Financial KPIs include key performance indicators such as asset management, payroll
management etc.
Accounting KPIs
Accounting KPIs include key performance indicators such as accounts payable management,
accounts receivable management etc.
The company uses 360 degree appraisal for getting feedback regarding employee’s
performance. As we know that 360 degree appraisal feedback is the process by which an
individual’s performance is assessed through feedback from managers, peers, customers and
the individual himself.
Over here the employees at Sui Northern Gas Company are in the same way accessed with
regard to their performance of jobs and duties which are reported by the supervisors,
coworkers. Finally the employee himself gives feedback about his performance and duties.
COMPENSATION SYSTEM
Compensation systems are basically developed to reward employees behavior so that they are
lead to accomplish organizations overall goals and objectives. As we went through the
companies compensation system and found the company uses the following systems for
compensation of their employees:
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Performance based rewarding
Extrinsic rewards.
Union based (CBA).
Performance Based
As already discussed that the organization tracks and recognizes the well performers, they are
rewarded in the same way according to their performance in there department and are
highlighted amongst the others in the department so that they can also strive to become a well
performer. The employees are awarded. Company used performance based compensation
system in which it provides monetary rewards to its employees.
Extrinsic rewards:
Company rewards its employees through extrinsic rewarding system which include:
Pay roll increments
Bonuses
Provident fund
Bonds
Stock owner ship
This compensation system is for officers and subordinates.
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through the influence of the Union of the organization. The person who had a close type of
relationship with the union can easily avail the opportunity of the compensation.
This caused a big problem though as the well performers when found the medium or low
performers to be getting the same benefits, incentives & rewards similar to them they get
demotivated. The person who is recommended by the union becomes entitled to
compensations and benefits.
PROMOTIONS
In SNGPL employees are promoted on the basis of their overall performance in the required
fields. The officers of grade 1-3 are promoted on the basis of their yearly performance and till
grade-3 officers are promoted in the same manner. But after grade-3 it is mandatory for the
officers to clear gas control test to get promotion in grade-4.
At executive level not only the yearly performance is considered but also further trainings are
put into consideration of other fields.
At labor level promotions are given on the learned skill level. And after necessary training
they are promoted to the positions of pipe line supervisor, patrol team head on site, head
technician etc.
EMPLOYEE MOTIVATION
Company use different tools to motivate its employees of all levels. The very basic ones are
discussed before are:
job rotation
job enrichment
Motivation is a key to encourage key / high performers. And we went through many
employees of the organization and saw that without motivation it would not have been
possible to even exist and sustain the global competitive environment. So in order to motivate
good performers the company is very much cognizant about the matter, therefore it has made
certain categories of people according to their performance.
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They use a term “High Flyers” which indicate the employees who are the good performers
and they are awarded with this icon on the basis of high performance than other employees.
This way the employees who are made eligible for some rewards, benefits & compensations
by union pressure etc cannot be called by this icon as they are not high performers.
Company high light these people inside the organization as good performers. This title is
given on the basis of their 1 year performance.
High flyers are moreover motivated by carrying out there developmental sessions where there
further future plans are discussed and they are lead to a way of to achieve more efficiency
and perfection in their work.
At subordinate level company uses to motivate through nominate these employees in Hajj
Draw. The good performers are nominated in hajj draw and sent for hajj by the company.
CONCLUSION
Through the study of the Human Resource Management of Sui Northern at strategic and
functional level that it is essential for every organization to run all of its businesses and
activities according to their strategic goals and objective and all of these goals and objective
should not only be understood and followed by the top people but also by middle and lower
level.
Every activity especially our concern is HR, so it should be in total agreement and integration
with company goals, vision and mission. A company can only be successful if its Human
resource Department should include in policy making and at strategic level. That thing also
should reflect in minor to major function of human resource and other departments.
RECOMMENDATIONS
SNGPL should reduce and lighten the number of people at the top management of the
company. There are so many who reports to whom that reduce the momentum of
work and one person’s direct contact to upper authority.
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The company should have to develop proper human resource functioning in terms of
strategic alliance with the company’s other departments
We found that company is at the rudimentary level of the establishment of proper
human resource structure i.e. there is no proper system of job description designing
and redesigning. Company should involve lower layer of HR officers so that they
bring in new ideas.
We feel lack of coordination between lower level and upper level of HR people. They
should improve their coordination level.
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