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HUMAN RESOURCE

MANAGEMENT PROJECT

ON

“SUI NORTHERN GAS PIPELINE”


DEDICATION

This research project is dedicated to


our parents without whom we are
simply nothing. May God bless them
with everlasting joy and happiness?
EXECUTIVE SUMMARY

The increasing trend of globalization in the past two decades has moved companies
beyond their domestic operations into the international markets. This dramatic change in
international businesses require a dynamic workforce as such managers have a
challenging role in facing complex issues of managing people to gain or sustain a
competitive advantage. Some key issues need to be given special attention. There will be
more human resource activities involved in international operations than that in the
domestic context. A broader perspective is required to manage people not only from
home countries, but also from host countries and even from the third countries.
Sui Northern Gas Pipelines Limited (SNGPL), is the largest integrated gas company
serving more than 2.7 million consumers in North Central Pakistan through an extensive
network in Punjab and NWFP.
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 2,733,028 consumers comprising Commercial, Domestic, General Industry,
Fertilizer, Power. A detailed analysis of the HR practices of the company has been
conducted by the group to highlight the salient features of the HR policies practiced by
the organizations.
Acknowledgment
I thank my Almighty Allah, The Most Beneficent and Merciful, for His
kindness and His mighty to give me direction, energy, quest, courage, sanity, strength
and power to complete this detailed report on Sui Northern Gas pipeline ltd

We are humbly grateful to our Venerable Teacher Sir Kamran Sindhu, who
furnished us with the opportunity to complete this project, and thereby consolidating
our concepts, enriching our knowledge, establishing our skills and strengthening our
confidence. To help us discharge our responsibility she provided us with the
worthwhile knowledge and guidance.

Many thanks to the assistant manager of hr sngpl, Hamid Rana, whose favour enabled us
to get the right information for our research work

We are also thankful to all the people who helped us complete this report in time.
Table of Contents

1 Introduction and history

2 Objective mission and vision statement

3 Core value

4 Organizational structure

5 Human resource planning

6 Recruitment process

7 Selection method

8 Employee orientation

9 Recommendation
INTRODUCTION:
Sui Northern Gas Pipelines Limited (SNGPL), is the largest
integrated gas company serving more than 2.7 million
consumers in North Central Pakistan through an extensive
network in Punjab and NWFP. The Company has over 43
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.

HISTORY:
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 Balochistan to Peshawar in North West Frontier
Province (NWFP) comprising over 6195 KM of Transmission System(Main lines &
Loop lines). The distribution activities covering 831 main towns along with adjoining
villages in Punjab & NWFP are organized through 8 regional offices. Distribution system
consists of 46,964 KM of pipeline (as at June 2006). SNGPL has 2,733,028 consumers
comprising Commercial, Domestic, General Industry, Fertilizer, Power & Cement
Sectors. Sales to these consumers were 39,127,280 HM3 worth 31,581.118 million rupees
during July-September, 2006 .Annual gas sale for year 2008-2009 was 161,008,081 HM3
worth 107,897.291 million rupees with Company's earning per share at Rs. 7.46/-.
STATEMENTS

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.

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

SNGPL's OBJECTIVES

Sui Northern Gas Pipelines Limited is committed to:

Provide quality consumer service.


Delivering clean, efficient and Reliable gas delivery.
Maintaining healthy and safe working environment.
Ensuring fair return to shareholders.
Optimizing the use of company's resources.
Implementation of quality management services
CORE VALUES

COMMITMENT
We are committed to our vision, mission, and to creating and delivering
stakeholder value.

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.
HRM DEPARTMENT AT SNGPL

HR Mission Statement at SNGPL:


“To lead the organization in enhancing its human capital and creating a winning
environment where everyone enjoys contributing to the best of one’s ability.”
SNGPL will achieve this by:
• Inspiring and motivating its people.
• Developing its people to strive for higher standards.
• Driving an open minded and enterprising corporate culture where people through
leadership at all levels dare to dream, dare to try, dare to fail and dare to succeed.
Attracting and recruiting the best talent

HUMAN RESOURCE PLANNING


In SNGPL basic purpose for which HRD in relation to HRP serves are as under:
1. Determining recruitment needs:
It is an essential prerequisite to the process of recruitment. It means that HRD
unexpected shortages, wastage, blockages of unexpected shortages, wastage, blockages in
promotion flow and needless redundancies.
2. Determining training needs:
HRD plans fundamental training programmes for which it is necessary to
determine quality in terms of the skills required by SNGPL.
3. Management Development:
HRD provides succession of trained and experienced manager which is essential
to the effectiveness of the organization and this depends on accurate information about
present and future requirements in all management level in SNGPL.
A system of HRP in SNGPL:
A system of HRP in SNGPL has some specific points on which company act.
1. Defining or redefining organizational objectives.
2. Monitoring system and amending as indicated.
3. Assessing future requirements to meet objectives.
4. Assessing current resources and availability of resources in the future.
REASONS FOR HUMAN RESOURCE

PLANNING
The formal personnel planning is essential for SNGPL because it is moderate to
large in size, that experiences changes in technology, markets and utilizes a lot of high
talent personnel. Following are specific reasons for which SNGPL management is
carrying on systematic human resource planning.
1) Future Personnel Needs:
2) Coping with Change:
3) High-Talent Personnel:
4) Strategic Planning:
5) Equal Employment Opportunity:
THE PLANNING PROCESS:
Planning for human resources is tied in with overall SNGPL long range planning.

The process of planning in itself forces management to think through objectives of firm

and people problem relating to achieving those objectives through planning.

1. To identify the values and aspirations of SNGPL directors and executive.


2. To identify and evaluate the internal strengths and weaknesses of the SNGPL
3. To develop a strategy which relates the strength of the company and aspirations of
executives with opportunities perceived in environment.
4. To create specific SNGPL objectives and plans for achieving these objectives.
5. To prepare plans for the functional areas of the business;, finance, marketing,
research and development and personnel.
6. To communicate with members of the organization and involve them in planning
process.
7. To evaluate progress toward implementation of plans and take corrective action
where necessary
PLANNING PERIOD:
The extent and rapidity of change in the forces affecting the business determines

the utility of forecasts into the future. SNGPL planning period is from 3 years to 5 years.

Period for three year is short range and of five years is long range period.

RECRUITMENT
Recruitment is the process of searching for prospective employees and stimulating
them to apply for jobs in the organization.

ROLE OF HRD IN RECRUITMENT PROCESS


HRD of SNGPL is responsible for designing the selection system and managing
its everyday operation. Human resource mangers in cooperation with other managers
largely set the overall strategy, they are likely to be influential in deciding, e.g, whether
the department should focus on choosing people who are best qualified for current
vacancies of for those who have the greatest long term potential. The personnel managers
also decide how the guidelines for equal employment opportunities met and whether the
company needs outside legal assistance in formulating its affirmative action plan.
JOINING THE COMPANY
On joining the Company the following formalities must be completed:
a) The documents listed below shall be forwarded immediately to Human Resource
Division for completion of their record.
i) Duplicate copy of appointment letter duly signed by the employee in acceptance
of the terms and conditions embodied therein.
ii) Four copies of recent passport size photograph.
iii) Photocopies of testimonials from previous employers.
iv) Photocopy of National Identity Card.
v) Clearance letter from previous employer.
RECRUITMENT PROCESS

Recruitment of employees, in general the sources of recruitment can be classified


into two types.
i) Internal Job Posting:
Filling a job opening from within the firm has the advantages of stimulating
preparation for possible transfer, or promotion and increasing the general level of morale.
Self Nomination:
Human Resource office publishes a monthly magazine that list the SNGPL job
posting program to different routes to nomination for a job, self nomination and
nomination by an employee supervisor.
Positions available the announcements carry information about the nature of the
position and the qualification needed, and any employee whose interested bid on the job
that is enter the competition for it.
If accepted for the posted job, the former supervisor is allotted approximately a
month to provide for a successor. The personnel units act as a clearing house in screening
bids that are unrealistic, preventing an extensive number of bids by a single employee
and canceling employees who are constantly unsuccessful in their attempts to change job.
Nomination by Employees Supervisor:
Informal communications among managers lead to the discourage that best
candidates for a job is already working in a different section of the firm.

ii) External Job Posting:


SNGPL also go to external sources for positions whose specification can not
beam by present personnel. SNGPL uses following outside sources.
Requisition/
Role Profile
to fill
vacancy

Approva
l

Job / Person Specification


Invite applications through
Advertisements, Head Hunters, Direct
Applications and Campus Campaigns

Short-
listing of
candidates

Preliminary Interviews

Assessment Centers / Selection Test

Final Interviews
Medical Examination

Appointment / Documentation

1) Advertising:
Advertisement is placed in various newspapers. More information about the
company and job specification are included in the ad to present some self-screening. The
following information should be included in the position advertisement:

• Title of the position.


• Responsibilities of the position.
• Minimum and preferred education, experience and skills.
• The name of a contact person for the department should be
included in the advertisement, as well as the departmental address
and/or web address.
• Application deadline (see specifics above).
2) Employment Agencies:
Additional screening is affected through the utilization of private employment
agencies.This Horizon agency has specialized in various types of workers and job e.g.
sales office, execution or engineer.
3) Casual Applications
Unsolicited applications both at the gate and through the mail constitute a much
used source of personnel. These have been developed through permission of attractive
employment office facilities and prompt and continuous replies to unsatisfied letters.
SELECTION
In the hiring procedure, SNGPL is following steps to discover significant
information about an applicant.
1. Call for application
2. Preliminary interview
3. Applications bank
4. Check of References
5 Employment interview
6. Approval by the supervisor
7 Induction or orientation
1) Call for Application
First of all, an ad is given in the newspaper for the vacancy.
2) Preliminary Interview:
In this step, the more obvious facts and impressions are of the type generally
obtained in an initial interview. Appearance and facility in appear are quickly evaluated.
Applicants are often asked why they are applying for a job with SNGPL. An idea of
education and experience is obtained by asking for the last grade finished in school and
the names of jobs previously land.
3) Application Bank:
The application form is a sheet or small, booklet with blanks to be filled in by the
applicants. Its purpose is to supply organization with basic information about the
candidate's background: education work experience, previous salary, and so forth.
In SNGPL factual information are to be obtained by means of an application
bank. Weighted application form is established and used with caution. It is used for two
prime objectives.
i) SNGPL has established the selection of more stable employees to decrease
management turnover. They have discovered and utilized the particular data that
devote stability facts relating to home ownership, marital status, age and sex.
The application bank is continuously updated. The entire bank is restudied and
reweighed every 3 years at the minimum.
4) Check of References:
The purposes of the reference check are to obtain information about past
behaviour of applicants and to verify the accuracy of information given not the
application bank. SNGPL A uses combination of letters and telephone calls, as a method
of checking.
Reference includes only
1) Dates of employment
2) Job title
3) Absentee record
4) Promotions and demotions
5) Compensation
6) Stated reason for termination.

5) Employment Interview:
Interviewing is probably the most widely used single method of selection.
SNGPL shapes interviewer behaviour is to establish a specific system for
conducting the employment interview. SNGPL considers following things to set up such
a system.
1) To know what to look for in applicant focus only those knowledges, skills, abilities
and other characteristics (KSAOS) necessary for the job.
2) Develop interview questions that are strictly based on the job analysis results, use
"open-ended" questions and use questions relevant to the individual's ability to
perform, motivation to do a good job.
3) Conduct the interview in a relaxed physical setting. Begin by putting the applicant
at ease with simple questions and general information about the organization and
the position being filled.
4) To evaluate applicants, develop a form containing a list of KSAOs weighted for
overall importance to the job.
6) Approval by the Supervisor
After the employment interview the immediate supervisor approves the
candidates. The candidate's recruitment is confirmed after probationary period.
ORIENTATION OF NEW EMPLOYEES
After the selection of successful employees the first step in their introduction to
company policies, practices and benefits is an orientation program.
In 1998 an orientation programme is conducted by the management. The main
objective of this programme was to get familiarize with the organization culture of both
organizations. The Orientation program in SNGPL is completed in three phases.
The first phase is usually conducted by the staff personnel unit. Subjects covered
include employee benefits, salary schedules, safety, probationary period, timed recording
and absence, holidays equal employment opportunity programs, packing and the
grievance procedure.
The second phase of most organized induction program is performed by the
immediate supervisor. The inductee is introduced to fellow employees, given a tour of the
department, and informed about such details as hours of work overtime, call in
procedures, rest and lunch periods, and lunching facilities.
The complete in action program will provide for phase three follow up some week
later. The interview, conducted by either the supervisor or a personnel specialist is
concerned with
1) Employee satisfaction with the job and organization.
2) Supervisor satisfaction with the employees.
Dissatisfactions may be cleared up by explanations or actual transfers to a
different job. In any event, the interest in the employee evidenced by the more act of
having a follow-up interview will help to increase the level of employee satisfaction.
After the employee has been received, selected and inducted, he or she must next
be developed to better fit the job and the organization. No one is a perfect fit at the time
of hiring, and some training and education must take place.
SNGPL is an organization in which importance has been given to training. The
management considers the training as an "Investment in their Asset". They believed
that planed development programs will returns values to the organization in terms of
increased high reined morale, reduced costs and greater organizational stability and
flexibility to adapt to changing external requirements.
RECOMMENDATION
1. Recruitment in HRD
In HRD, the Human Resource Manager should have some technical knowledge in
the field of management so that they can easily understand the problems of managers.
2. Feedback System

For effective perception, employees should be rewarded if they offer useful ideas
to increase the efficiency level.

Suggestion boxes should be placed at convenient locations throughout the


workplace. If the suggestion is accepted then employee should be given cash reward
based on some percentage of first years saving resulting from the suggestion.

3. Participative Culture

The organization should encourage participative culture among managers.

4. Open Communication

In order to enhance the efficiency level and overall career development the top
management of the organization should encourage open communication at all levels.

5. Good appraisal System

The performance of employees should be evaluated based on a good appraisal


system. This evaluates the true performance level of employees that could help them to
work sincerely and remain motivated to their duties in the organization.

Our suggested appraisal method is MANAGEMENT BY OBJECTIVES. (MBO)