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Malik Muhammad waqar (ncba&e)

This report is based on Sui Northern Gas Pipeline Limited (SNGPL) which is a

GAS service provider in all over the Pakistan. One of the largest integrated gas

company serving more than 3.4 million consumers in North Central Pakistan.

This report is made by visiting to SNGPL Head Office Lahore. We would like to

give special thanks to Mr. Pir Sohail Syed(Asst HR Manager).The information he

provided us was really helpful.

Human Resource Management Presented to: Dr. Faisal

Qadeer
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INTRODUCTION

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 Khyber Pakhtoon Khwa. 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 transmission system extends from Sui in
Baluchistan to Peshawar in Khyber Pakhtoon Khwa (KPK) comprising over 7,347
KM of Transmission System (Main lines & Loop lines). The distribution activities
covering1,624 main towns along with adjoining villages in Punjab & Khyber
Pakhtoon Khwa are organized through 8 regional offices. Distribution system
consists of 67,449 KM of pipeline.
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

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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.

Human Resource Management Presented to: Dr. Faisal

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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

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OBJECTIVES

SNGPL is committed for:

• Improve the quality of service to the customer¶s satisfaction by
implementing OGRA performance and service standards.
• 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

Human Resource Management Presented to: Dr. Faisal

Qadeer
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PERFORMANCE APPRAISAL

It is a process by which a manager or consultant

• Examine and evaluate the employee’s work behavior by comparing its

present standards

• Documents the result of the comparison

• Uses the result to provide feedback to the employee to show where

improvements are needed and why?

Performance appraisal is employed to determine who need what training and who
will be promoted, demoted, retained or fine. The performance appraisal is done
either formally or informally.

Aims of performance appraisal

• The aims of performance appraisal are

• Gives employee feedback on performance

• Identify employee training need

• Document criteria used to allocate organizational need

• Form a basis for personnel decision: salary increase, promotion, bonuses

• Provide the opportunity for organizational diagnosis and development

• Facilitate communication between employee administrations

Human Resource Management Presented to: Dr. Faisal

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• Validate selection techniques and human resources policies to meet federal

equal employment opportunity requirements

• To improve performance through counseling coaching and development

Method used for performance appraisal at SNGPL

The organization uses the latest technique is MBO. The appraisal has started in
June and end on July.

1) - Management by objectives (MOB)

It is a systematic and organized approach that allows management to focus on

achievable goals and to attain the best possible result from available resources.

It aims to increase organizational performance by aligning goals and subordinate

objectives thought the organization ideally, employees get strong input to identify
their objectives, time line for completion, etc. MBO includes on going tracking and
feedback in the process to reach objectives.

Features of MBO’S

• It emphasizes participative in set goals that are tangible, verifiable and

measurable.
• 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 result from available resources.

Human Resource Management Presented to: Dr. Faisal

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2) - 360-Degree Feedback System at SNGPL

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

Comparison of 360 Degree & M.B.O

In Sui Northern Gas Pipeline 360 degree method is most usually used, because by
making a survey to different employees and managers we come to know that, the
appraisal method which they like most is the 360 degree method.

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:
• Performance based rewarding
• Extrinsic rewards.
• Union based (CBA).

Human Resource Management Presented to: Dr. Faisal

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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 ownership
This compensation system is for officers and subordinates

PROMOTION

In SNGPL employees are promoted on the basis of their overall performance in the
required field the officer of grade 1-3 are promoted on the basis of their yearly
performance and till grade 3 officer are promoter in the same manner but after
grade 3 it is mandatory to the officer to clear gas control test to get promotion to

Human Resource Management Presented to: Dr. Faisal

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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.
They use a term ³High 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.

Human Resource Management Presented to: Dr. Faisal

Qadeer
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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.

Human Resource Management Presented to: Dr. Faisal

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RECOMMENDATIONS

After our study of this organization we come up with following 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 persons direct contact to upper
authority.
• 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.

Human Resource Management Presented to: Dr. Faisal

Qadeer