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

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

COURTESYWe are courteous - with our customers, stakeholders and towards each other and encourage open communication.

COMPETENCEWe are competent and strive to continuously develop and improve our skills and business practices.

RESPONSIBILITYWe are responsible as individuals and as teams - for our work and our actions. We welcome scrutiny, and we hold ourselves accountable.

INTEGRITYWe 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.

RECRUITMENTRecruitment 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

Approval

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

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.

Medical Examination

Appointment / Documentation

SELECTIONIn 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)