HUMAN RESOURCE MANAGENT REPORT

SUI SOUTHERN GAS COMPANY

TERM REPORT
COURSE: HUMAN RESOURCE MANAGEMENT SUBMITTED TO: MAAM SEMRE QUTAB KHAN DATE: 12th April 2011 Section: D SUBMITTED BY:
QURATULAIN SIRAJ (8726) FARAH FAYYAZ (8942) HUMAIRA AKHTER (8970) BUSHRA NOSHAD (8771) TOOBA KHALID (8799) AHMED TANVEER (8850) JUNAID KELKER (8956)

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LETTER OF TRANSMITTAL
12TH April 2011 TO, MR. SEMRE QUTAB KHAN, INSTRUCTOR, HUMAN RESOURCE MANAGEMENT, Institute of Business Management Korangi Creek, Karachi, Pakistan Respected Maam: Subject: REPORT ON SUI SOUTHERN GAS COMPANY Here is the Report pertaining to the SUI SOUTHERN GAS COMPANY of Pakistan. The purpose of this report is to get an insight on the current state of companys human resource department and its activities. This report as per your instruction has covered all the authentic areas of concern and contains all the relevant information regarding HR functions of SSGC. This report has been prepared as a part of our course requirement, Human Resource Management. We would dearly like to thank you for the faith you showed in our capabilities & the encouragement you gave us when assigning this report. We have made this report using different sources, such as articles pertaining to the topic, information available on the internet, personnel interview and survey research. Thank you for giving the opportunity to prepare this report. We hope that the report is acceptable as per your requirements. We found the report making process interesting, challenging and most of all, enabling us to get an in depth knowledge on the state of human resource sector of SSGC Pakistan. Sincerely, QURATULAIN SIRAJ FARAH FAYAZ BUSHRA NOSHAD JUNAID KELKER HUMAIRA AKHTER AHMED TANVEER TOOBA KHALID

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ACKNOWLEDGEMENTS
We would first like to thank The Almighty for giving me the strength and ability to have been able to make this research proposal possible. Then most importantly, we are very grateful to my instructor, Ms. SEMRE QUTAB KHAN, whose continued support, faith and cooperation contributed significantly towards the completion of this term report. It has been a pleasure to be a student of Ms. Semre Qutab. Her teachings have opened new portals for me in terms of experience, knowledge and professionalism. We have gained a lot of valuable experience in this course and will continue to gain in the future which will surely benefit me throughout my career. As her student, we have had an opportunity to gain insight and exposure into the real world. We are, of course, solely responsible for any errors, omissions and lacunae.

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METHODOLOGY FOLLOWED
Research is a systematic method of finding solutions to problems. It is essentially an investigation, a recording and an analysis of evidence for the purpose of gaining knowledge. According to Clifford woody, research comprises of defining and redefining problem, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, reaching conclusions, testing conclusions to determine whether they fit the formulated hypothesis

Research design
Since the purpose of our research is to gain better understanding of the SSGC HR practices therefore we did exploratory research. Research instrument Questionnaire was used to collect primary data for the exploratory research. The questionnaire was based on close ended questions in order to get better insights of the employees satisfaction with the HR department activities of SSGc like performance appraisal system etc. Total of 15 respondents were taken for survey from various departments of the company. We also conducted interview with human resource department head in order to get indepth information regarding employees problems and also on how well the HR activities are carried out there.

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Contents
ABOUT US................................................................................................................................................................. 8 PROFILE ............................................................................................................................................................... 8 COMPANY VISION ............................................................................................................................................ 8 COMPANY MISSION ......................................................................................................................................... 9 CORE VALUES .................................................................................................................................................... 9 BOARD OF DIRECTORS ............................................................................................................................... 10 HISTORY & CURRENT PERFORMANCE: ................................................................................................... 11 BACKGROUND: ............................................................................................................................................... 11 BRIEF HISTORY: ............................................................................................................................................ 11 ORGANIZATIONAL STRUCTURE: ............................................................................................................ 12 COMPANY OBJECTIVES: ............................................................................................................................. 12 FUTURE OUTLOOK: ...................................................................................................................................... 12 SSGC Financial and Strategic SWOT Analysis Review: ................................................................... 14 RECRUITMENT AND SELECTION: ............................................................................................................... 15 TRAINING AND DEVELOPMENT .................................................................................................................. 16 TRAINING AND DEVELOPMENT OBJECTIVES ................................................................................... 16 SALARY AND COMPENSATION..................................................................................................................... 17 PERFORMANCE APPRAISAL.......................................................................................................................... 18 Process of Performance Appraisal ......................................................................................................... 19 APPENDIX A ......................................................................................................................................................... 28 APPENDIX B ......................................................................................................................................................... 36

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HUMAN RESOURCE MANAGENT REPORT EXECUTIVE SUMMARY

The objectives of our exercise is to identify and analyze the tasks, activities and functions of human resource department of the SSGC; firms selection criteria, training development procedures being followed, appraising of performance and compensation, rewards and other fringe benefits being carried by the company. For this we chose SSGC as major challenge for our project. A questionnaire was designed in order to help us in our research work which was being filled by the concerned employees of the companies. Besides that an interview was taken by HR authorities. The company is mainly trying to build effective and highly motivated teams which show that the company is more committed towards the team work. And, it is clearly evident from our research that the most desirable attribute for SSGC, in an employee, is to have the will to work, the Can Do attitude.

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INTRODUCTION
ABOUT US
PROFILE
Sui Southern Gas Company (SSGC) is Pakistan's leading integrated gas Company. The company is engaged in the business of transmission and distribution of natural gas besides construction of high pressure transmission and low pressure distribution systems. SSGCL transmission system extends from Sui in Balochistan to Karachi in Sindh comprising over 3,220 KM of high pressure pipeline ranging from 12 - 24" in diameter. The distribution activities covering over 1200 towns in the Sindh and Balochistan are organized through its regional offices. An average of about 388,828 million cubic feet (MMCFD) gas was sold in 2009-2010 to over 2.2 million industrial, commercial and domestic consumers in these regions through a distribution network of over 37,000 Km. The company also owns and operates the only gas meter manufacturing plant in the country, having an annual production capacity of over 750,000 meters. The Company has an authorized capital of Rs. 10 billion of which Rs 6.7 billion is issued and fully paid up. The Government owns the majority of the shares which is presently over 70%. The Company is managed by an autonomous Board of Directors for policy guidelines and overall control. Presently, SSGC's Board comprises of 14 members. The Managing Director/Chief Executive is nominee of GOP and has been delegated with such powers by the Board of Directors as are necessary to effective conduct the business of the company.

COMPANY VISION

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COMPANY MISSION

CORE VALUES
Integrity Keep Company's Interest above self. Acts in ethical manner. Promote ethical business environment. Take effective actions if observers unethical behavior or situation. Seen & known to be honest. Lives within means. Intellectually honest. Excellence Makes positive contribution towards the achievement of SSGC's Vision. Strives for Continuous improvement. Respond effectively to customer needs. Takes timely & Quality decisions. Teamwork Builds strong relationships within across functions. Works well with all type of peoples and corporate with others. Solicits and share ideas/best practice with others. Supports the achievements of Company/team goals. Contributes to team effectiveness using people's different skills and styles. Arrives at constructive solutions while maintaining positive working relationships. Demonstrates sensitivity. Transparency Promotes open environment. Displays openness and consistency in applying policies & procedures. Respects dissent and resolves conflicts fairly. Creativity Comes up with new ideas. Encourages innovation. Promotes modified approaches. Convert ideas into actions. Responsibility to Stakeholders Stays abreast of change in operating environment that impacts our business (i.e. markets, competitors, technology, customers, suppliers, employees, regulatory, political and public). INSTITUTE OF BUSINESS MANAGEMENT Page 9

HUMAN RESOURCE MANAGENT REPORT Create solutions to make customer needs. Develops colleagues and team members to improve their skills and performance. Ensure optimum utilization of resources. Balances short term and long term priorities to maximize on results. Ensures compliance of law.

BOARD OF DIRECTORS
Salim Abbas Jilani Chairman A Masters in Public Administration from the prestigious JFK School of Government, Harvard University, USA, Mr. Jilani joined Civil Service of Pakistan in 1957. He has the singular distinction of having held the most coveted positions in Pakistan including Principal Secretary to Prime Minister, Chairman of Pakistan International Airlines, Civil Aviation Authority, Fauji Foundation, Pakistan Steel, Karachi Electric Supply Corporation, Rice Export Corporation of Pakistan, Pak-Arab Refinery Limited (PARCO) etc. Dr. Faizullah Abbasi Managing Director Dr. Faizullah Abbasi assumed the office of Managing Director, SSGC on January 27, 2010. Before taking up his present assignment, Dr. Abbasi served as Vice President of Metal Manufacturing Company, Arizona, USA. In the mid-1990s, Dr. Abbasi enjoyed a prolific stint as SSGC's Deputy Managing Director (DMD). As DMD, he was in charge of HR/Administration, Meter Plant/Measurement, HSE and Distribution Operations Divisions. As the HR head, he carried out an extensive organizational re-structuring of the Company. As a focal person for UFG, Dr. Abbasi devised a three-pronged strategy of rehabilitation, system maintenance and pressure profiling which saw a noticeable decline in UFG for the first time in a decade. Ejaz Ahmed General Manager Human Resource

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HISTORY & CURRENT PERFORMANCE:

BACKGROUND:
Sui Southern Gas Company Limited (the Company) is Pakistans leading integrated gas company having an exclusive distribution and sale license in the provinces of Sindh and Balochistan. The Companys core business is to buy natural gas in bulk from E&P companies, transmit it to load centers over its high pressure transmission system, distribute and sell it to its customers through its supply network. The transmission system of the Company extends from Sui in Balochistan to Karachi in Sindh comprising 2,786 Km of high pressure pipeline ranging from 12 - 24" in diameter. The distribution network of over 23,637 Km covers over 650 towns in the Sindh and Balochistan. The Company sold 254,349 million cubic feet (MMCF) of natural gas in 20022003 to nearly 1.7 million industrial, commercial and domestic consumers. The Company also owns and operates the only gas meter manufacturing plant in the country, under an agreement with Schlumberger Industries-France, having an annual production capacity of over 300,000 domestic meters. SSGC is also examining the feasibility of installing a pilot project of 500 numbers of Radio Frequency type and 500 numbers of prepayment type meters manufactured by ACTARIS, a French Company. The Company has achieved another milestone as meter plant has obtained ISO 9001: 2000 certifications during the previous financial year. The Company is a public limited company, which is listed on the Karachi, Lahore and Islamabad Stock Exchanges with 70.43% direct share holding of Government of Pakistan (GOP). It has an authorized capital of Rs.10 billion, out of which Rs. 6.7 billion is issued and fully paid up and is managed by an autonomous Board of Directors having overall control. Presently, SSGC's Board comprises 14 members drawn both from public and private sectors. The Managing Director/Chief Executive is nominee of GOP and has been delegated with such powers by the Board of Directors as are necessary to effectively conduct the business of the Company.

BRIEF HISTORY:
The Company in its present shape was formed on March 30, 1989 following a series of mergers of three pioneering companies, namely Sui Gas Transmission Company Limited, Karachi Gas Company Limited and Indus Gas Company Limited. Sui Gas Transmission Company Limited was formed in 1954 with the primary responsibility of gas purification at Sui field in Balochistan and its transmission to the consumption centers at Karachi. Two distribution companies were established in 1955, which were responsible for the distribution of gas to consumers in Karachi and in other towns, enroute the transmission pipeline between Sui and Karachi. In 1985, these two distribution companies were merged to form Southern Gas Company Limited and later, in INSTITUTE OF BUSINESS MANAGEMENT Page 11

HUMAN RESOURCE MANAGENT REPORT 1989, Southern Gas Company Limited and Sui Gas Transmission Company Limited were merged to form the Sui Southern Gas Company Limited.

ORGANIZATIONAL STRUCTURE:
The Company is organized into six functional divisions--Transmission, Distribution, Commercial, Engineering Services, Management Services, and Finance. Each division is headed by a Senior General Manager assisted by a team of professional staff, with the exception of Finance, which is headed by the Deputy Managing Director. Policy matters relating to the natural gas sector are handled by the GOP. OGRA is responsible for regulation, pricing, revenue determination and compliance to service standards. The Board of Directors has the overall responsibility for the management and control over the Company. The management enjoys operational autonomy. The major portion of the work force consists of technically qualified and skilled personnel.

COMPANY OBJECTIVES:
The Company aims to supply natural gas wherever there is sufficient load to justify the cost of infrastructure. On the other hand, in many places the gas network is being expanded to meet economic and social requirements through active funding support from the Federal and Provincial governments. In 2003, the Company launched a comprehensive five-year gas network development and expansion plan to connect hundreds of small towns and villages in remote areas of Sindh and Balochistan, which currently are deprived of piped natural gas. Every year, the Company adds nearly 66,000 new customers (industrial, commercial & domestic) to its customer base and lays hundreds of kilometers of transmission pipelines and distribution network and installs other facilities such as metering/ billing stations in its system of technically qualified and skilled personnel.

FUTURE OUTLOOK:
The Company is pursuing an ambitious five year development and expansion plan estimated at Rs 34.5 billion. Key objectives of the strategic plan for the next five years (2003-04 to 2007-08) are as under: INSTITUTE OF BUSINESS MANAGEMENT Page 12

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The gas transmission and handling capacity will be expanded by 50 percent from 1,200 MMCFD to 1,800 MMCFD. The gas distribution and supply network shall be expanded to connect new towns and villages in Sindh and Balochistan. This will increase the density of SSGCs distribution network in the currently serviced areas, as well as expand it in new towns and villages. Enhancement of gas supply to power plants, industrial and commercial sectors including supply of gas to previously deprived areas in the domestic sector. The customer base shall be increased from nearly 1.7 million to 2.0 million by adding 330,000 new customers to the Companys system. Consistent appreciation in shareholders value companys asset base and significant improvement efficiency. Expansion of Customer Facilitation Centers, and promotion of Service with a smile culture. by increasing in productivity quality the and

innovation,

services

Business Process Re-engineering (BPR), re-structuring of selected departments and implementation of Enterprise Resource Planning (ERP) to provide effective Management Information System (MIS) for business operations and control. Enterprise all areas Information System (EIS) and technology implementation in of business to make SSGC a Most IT-Enabled Company. employees through

Human resource development and empowerment of career planning and continuous management/vocational training.

ISO Certification for Quality, Environmental Protection and Occupational Health and Safety. Community support services and corporate communication initiatives to meet the national and social responsibilities, as a good corporate citizen.

Substantial augmentation and expansion in the existing distribution network will also be undertaken under the five-year development plan. As a consequence, the net operating fixed assets of the Company will increase to about Rs.36 billion by the Year 2008 while there will be a substantial increase in net sales from gas expected to become available from new fields. The Company while deriving the benefits of increase in operating margins and profits will also be able to support its growing base of power, industrial and domestic INSTITUTE OF BUSINESS MANAGEMENT Page 13

HUMAN RESOURCE MANAGENT REPORT customers. Further, on long-term basis, the subsidiary company jointly owned with SNGPL, the Inter State Gas Systems (Private) Limited (ISGSL) is examining various options for import of gas from neighboring countries through transnational gas pipelines, which will ensure sustained availability of natural gas to the increasing customer base in the country. The Companys strategic five-year business plan has been launched at a most appropriate time while financing is available to the Company at extremely attractive rates, which are currently below 3%. The Company enjoys inherent financial strength with a debt equity ratio of 42:58, which provides it with a good leverage to finance expansion at lower interest rates. The Company has undertaken further new initiatives, which will significantly improve its productivity and revenue through improved corporate governance and implementation of technology-based solutions in various business areas. Through a gas price equalization agreement with the other major gas company, the Company is now assured of an equitable cost of gas, which should facilitate maintenance of adequate operating margins in the coming years.

SSGC Financial and Strategic SWOT Analysis Review:

Sui Northern Gas Pipelines Limited (SNGPL) is an integrated gas company. It is engaged in the purchase, transmission, distribution and supply of natural gas. The company is also engaged in the planning, designing and construction of pipelines, for the company and other organizations. It serves more than 2.95 million customers in North Central Pakistan through an extensive network in Punjab and North Western Frontier Province (NWFP). The companys transmission network consists of 6,625 km of pipeline and it distributes natural gas to the Province of Punjab, NWFP, Azad Kashmir and Federal Area. The company is head quartered in Lahore, Pakistan and employs 6,921 people.

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FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

Human Resource Management is defined as the people who staff and manage organization. It comprises of the functions and principles that are applied to retaining, training, developing, and compensating the employees in organization. It is also applicable to nonbusiness organizations, such as education, healthcare etc. Human Resource Management is defined as the set of activities, programs, and functions that are designed to maximize both organizational as well as employee effectiveness. Scope of HRM without a doubt is vast. All the activities of employee, from the time of his entry into an organization until he leaves, come under the horizon of HRM. FUNCTIONS OF HR:

RECRUITMENT AND SELECTION:

For any company, regardless of size and the current economic environment, the ability to recruit and retain qualified, productive employees is critical. While the two tasks are often considered separately, they are, in truth, tied together. Effective recruitment can help to boost the ability to retain employees once they are hired and on the job. Employers are always looking for the right staff to fill the job vacancies that they have on offer. Finding the right staff means that recruitment and selection processes are a key factor in the success of any business. In order to be truly effective it is essential that a business has the right kind of personnel. Having people who enjoy their jobs and want to make a success of them can be the making of a company, while uninterested and unsuitable staff can bring a successful business to its knees. In order to ensure the right kind of recruitment and selection of staff means that an employer should be aware of the kind of skills that they want an employee to have. Employers should also be aware of the kind of transferable skills that will be useful to the company. This means that employers need to be quite specific when they advertise a vacancy. If an employer decides to use the services of an agency in the recruitment and selection process, then he/she should be precise in their instructions to the recruitment consultant. One of the most important aspects of the recruitment and selection process is to have a clear framework for short listing candidates for a vacancy. This means that an employer should have some idea of what they want to see on a persons resume or CV and what kind of experience they expect a potential employee to have had. During the recruitment and selection process it is also wise to establish which qualities and qualifications are essential INSTITUTE OF BUSINESS MANAGEMENT Page 15

HUMAN RESOURCE MANAGENT REPORT to the job and which are desirable. Once you have your shortlist of potential employees then you have to decide whether a single interview will suffice or whether you want an interview and presentation. The recruitment and selection process is always easier if an employer can provide a recruitment agency or recruitment consultant with a very specific brief on what they want in an employee. They should also advise the agency/consultant of their own processes of selecting the right candidate. This way the agency or consultant can advise potential candidates at each stage of the recruitment and selection process. Whoever interviews candidates for a position should be ready to provide feedback on that interview, either to the candidate themselves or to the agency representing them. Before the interview (and presentation if stipulated) takes place the employer should have a definite idea of what they are prepared to offer as an employment package. It is not a good idea to be vague at this stage of the process because it is all too easy to forget that when it comes to recruitment and selection the candidate may also be sizing up their potential employer.

TRAINING AND DEVELOPMENT

It is a subsystem of an organization. It ensures that randomness is reduced and learning or behavioral change takes place in structured format

TRAINING AND DEVELOPMENT OBJECTIVES

the principal objective of training and development division is to make sure the availability of a skilled and willing workforce to an organization. In addition to that, there are four other objectives: Individual, Organizational, Functional, and Societal. Individual Objectives help employees in achieving their personal goals, which in turn, enhances the individual contribution to an organization.

Organizational Objectives Functional Objectives

assist the organization with its primary objective by bringing individual effectiveness.

maintain the departments contribution at a level suitable to the organizations needs.

Societal Objectives

ensure that an organization is ethically and socially responsible to the needs and challenges of the society.

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SALARY AND COMPENSATION

When setting the level of an employee's monetary compensation, several factors must be considered. First and foremost, Salary must be set high enough to motivate and attract good employees. They must also be equitablethat is, the wage must accurately reflect the value of the labor performed. In order to determine salaries or wages that are both equitable for employees and sustainable for companies, businesses must first make certain that they understand the responsibilities and requirements of the position under review. The next step is to review prevailing rates and classifications for similar jobs. This process requires research of the competitive rate for a particular job within a given geographical area. Wage surveys can be helpful in defining wage and salary structures, but these should be undertaken by a professional (when possible) to achieve the most accurate results. In addition, professional wage surveys can sometimes be found through local employment bureaus or in the pages of trade publications. Job analysis not only helps to set wages and salaries, but ties into several other Human Resource functions such as hiring, training, and performance appraisal. As the job is defined, a wage can be determined and the needs for hiring and training can be evaluated. The evaluation criteria for performance appraisal can also be constructed as the specific responsibilities of a position are defined. Other factors to consider when settling on a salary for a position include: Availability of people capable of fulfilling the obligations and responsibilities of the job Level of demand elsewhere in the community and/or industry for prospective employees Cost of living in the area Attractiveness of the community in which the company operates INSTITUTE OF BUSINESS MANAGEMENT Page 17

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COMPENSATION STRATEGY
It is one of the most important strategies in the HRM Function as it influences the costs of the organization and potential bad decision can lead to very serious damages to the organization. The compensation and benefits strategy is derived from the overall HRM Strategy and it has to be fully aligned. When the HRM Strategy sets the main objectives for the HRM Function, the compensation and benefits strategy has to follow. When the overall HRM Strategy states the low cost of services and employees, the compensation and benefits strategy cannot target the highest salaries at all levels. The compensation and benefits strategy sets the general rules for the compensation and benefits area in the organization and the owners and leaders of the area. In some organizations, the compensation and benefits department is just a support department for the line management. In other organizations the compensation and benefits manager is a very powerful employee in the organization with the right veto. The compensation and benefits strategy sets the position of the organization on the job market and defines the items in the total cash in the organization and their role. The role of different components of the compensation is very important as the role of the compensation components can differ. For example, the role of bonuses can be primarily in performance reward or the retention of the employees and the organization has to decide. The compensation and benefits strategy has to reflect the reality in the industry and the surrounding job market. The compensation strategy can set the wish to pay the lowest possible salaries, but the HRM Function and the organization have to respect the reality on the job market. The compensation strategy needs a strong support from the top management as it sets strong limits to the daily operation of the line management and they usually do not fully agree with all the aspects included in the compensation and benefits strategy.

PERFORMANCE APPRAISAL
People differ in their abilities and their aptitudes. There is always some difference between the quality and quantity of the same work on the same job being done by two different people. Performance appraisals of Employees are necessary to understand each employees INSTITUTE OF BUSINESS MANAGEMENT Page 18

HUMAN RESOURCE MANAGENT REPORT abilities, competencies and relative merit and worth for the organization. Performance appraisal rates the employees in terms of their performance. Performance appraisals are widely used in the society. The history of performance appraisal can be dated back to the 20th century and then to the second world war when the merit rating was used for the first time. An employer evaluating their employees is a very old concept. Performance appraisals are an indispensable part of performance measurement. Performance appraisal is necessary to measure the performance of the employees and the organization to check the progress towards the desired goals and aims. The latest mantra being followed by organizations across the world being "get paid according to what you contribute" the focus of the organizations is turning to performance management and specifically to individual performance. Performance appraisal helps to rate the performance of the employees and evaluate their contribution towards the organizational goals. If the process of performance appraisals is formal and properly structured, it helps the employees to clearly understand their roles and responsibilities and give direction to the individuals performance. It helps to align the individual performances with the organizational goals and also review their performance. Performance appraisal takes into account the past performance of the employees and focuses on the improvement of the future performance of the employees. Process of Performance Appraisal

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FINDINDS AND ANALYSIS

INTERVIEW
(For HR head) QUESTION 1: Universities are unable to do so because the education offered in universities is not that much business oriented means it is more based on unpractical and obsolete theories instead of real and practical business industry study. Besides this educational institute should also update their syllabus continuously, teachers should be trained regarding newly introduced ideas, process, and technologies. It was also answered that to some extent students are themselves lack to fulfill industry requirements. QUESTION 2: To solve this problem the share of visiting faculty coming from industry should be increased, students should be given specialized trainings accordingly and proper applicable seminars/workshops should be conducted. Secondly, students should be asked to work on real projects from industry before completing their degrees and teachers should also solve problems on practical work and should get concepts from real industry. QUESTION 3: Seminars, video presentations, independent readings of articles, books, manuals etc. should be given importance. Conferences and class room environment, one on one individual attention by instructor and suitable diplomas provided are also matters to some extent when it comes to actual learning. QUESTION 4: The criteria for this includes many factors in which the most priority is given to performance given on interview, the preparation done for the interview, the relevance of subjects studied to the job applied for, projects and research done in the past and the presentation of resume which means the academically achievement and its record. Besides these important points there are other factors which matter while selecting and that includes the skills displayed, non academic activities, working experience and the willingness of candidate for further learning and improving. understanding the working environment and personal reasons like being from same school matters at some places but its probability is very low. QUESTION 5: There are many factors which comes in the least desirable area some of them were lack of interpersonal, self awareness, loyalty, self confidence, teamwork skills, proper academis qualification and communicational skills(includes oral, written, listening). Moreover attitudes like arrogance, selfishness, aggression, are highly unacceptable. The most INSTITUTE OF BUSINESS MANAGEMENT Page 20

HUMAN RESOURCE MANAGENT REPORT important issue is the lack of motivation and work ethics which can make result positive or negative in a while in the interview if judged. QUESTION 6: They do have a proper formal training program for their staff and employees. QUESTION 7: The basic objective of the company is to improve the staff present performance and skills so they will be able to meet upcoming challenges and then the services can be improved at all areas. training objectives also include the support from organizations side for the educations and skills lacking areas and increase their job satisfaction which also make rotation readily possible if needed and help in building more efficient effective and intrinsically motivated team. QUESTION 8: It is done on the basis of the Performance Reviews by supervisor. QUESTION 9: Yes there are the follow ups. QUESTION 10: It is mostly based on the job nature like obtaining professional qualification is important at some places but useless at some places and with over qualified people. Developing technical skills is important at some places like for an technologist of IT department but may be useless for others, same as developing soft skills can be helpful for sales and customer department related people for instance but not essential for an accounts manager or auditing analyst. At the same rule the experience and understanding of business and all such factors are important but depends on the job natures. QUESTION 11: Yes they are taken at the very moment of commencement of job of joining of job. QUESTION 12: There are influences of labor union at the time of salary modification and need to be followed. QUESTION 13: Their employees including the interviewee are satisfied from the current salaries offered by company. QUESTION 14: Salary increment does influence the performance in organization. QUESTION 15: These benefits are offered to employees by the company: 1. Health INSTITUTE OF BUSINESS MANAGEMENT Page 21

HUMAN RESOURCE MANAGENT REPORT 2. Official car 3. cafeteria food services 4. Free medical QUESTION 16: Performance of employee is appraised on the annual basis. QUESTION 17: Yes it does, so it means on the performance appraisal if the employee performance appears to be productive or efficient or effective they can get promoted also. QUESTION 18: The appraisal is done by the immediate boss means the employee is appraised directly by the person whom he/she reports. QUESTION 19: Yes HR managers review them for many reasons like reviewing performance, provided training effectiveness and for many further issues. QUESTION 20: The major reason resulting in turnover of employee in the company was that the employee found better job.

QUESTIONNAIRE
(For employees) all departments QUESTION #1 The first question that was asked ,the result was likely to be positive with majority of employees came up with a yes answer while few of them didnt understand the job description. This shows that an Employee job description describes the duties, responsibilities, required qualifications, and reporting relationships of a particular job. The Employee job descriptions is based on objective information obtained through job analysis, an understanding of the competencies and skills required to accomplish needed tasks, and the needs of the organization to produce work. Whether you're a small business or a large, multi-site organization, well-written employee job descriptions will help you align employee direction. Alignment of the people you employ with your goals, vision, and mission spells success for your organization. As a leader, you assure the interfunctioning of all the different positions and roles needed to get the job done for the customer.the results shows that the employee job description is effective enough that employee tend to understand their part of duties which ultimately leads to achievement of firms objective however there is always a room for improvement as 2 of people didnt at all understand it while the remaning did understand a bit so the job description should be updated and more clear and precise. QUESTION #2 INSTITUTE OF BUSINESS MANAGEMENT Page 22

HUMAN RESOURCE MANAGENT REPORT The employees got to know aabout the company more through advertisement which shows that the company makes an attractive advertisement background which grips the attention of the applicants and they go for SSGC. The internet weights the more as contributing around 46% while the second most effective tool was walk ins and raferrals SSGC firm posts announcements of openings and requests for referrals on its intranet web site, bulletin, and or wallboards. Prizes or cash awards are offered for referrals that lead to hiring. The reason why so many employers favor this approach is that referrals tend to generate high quality candidates.while the 3rd highest information source was the employment agencies. Employment agencies maintain a database of skilled, semi-skilled and unskilled workers available for hire. Whenever a potential employer posts a specific job opening with the agency, all of the registered applicants with matching skills may receive a phone call or mail-in card notifying them of this opening. Staff members of employment agencies may conduct a mini-interview or give interested applicants more details about the position. Sometimes the only message will be an address and contact information, and it is up to the applicant to make arrangements for an interview directly with the potential employer.as told by SSGC HR manager.while other sources where equally weighted. QUESTION #3 In answering the question 3 the employes went for the option of intelligence test as said by an employe hanif jamali that the test I undergone during the recruitment period was intelligence test as SSGC through intelligence testing is the estimation of a student's current intellectual functioning through performance of various tasks designed to assess different types of reasoning. While he was taken an group intelligence tests usually consist of a paper test booklet and scanned scoring sheets.while most of the employees aso went for achievements option looking at the past performance and estimating that the employee will also show the same or more ability in his work performance. Personality is one the important trait of a person thus few people ticked this option as the HR manger told us that recruiting employees manily based on personality can be misguiding we have to put more weight on his performance ,which was proved while evaluating the tabulation.while nobody went for ths option Video-Based Situational Learning as in Pakistan is not in use mainly in SSGC. QUESTION # 4 SSGC mainly panel interviews as evaluated in the forms why SSGC goes for panel interviews more rather phone and video interviews because in a panel interview (also called committee interview), you will meet with several individuals at one time, typically sitting around a conference table. The advantage of committee interviews is that they are more reliable and job-related since panel members are accountable to each other, and interviewer can make their decisions on the same sample of behavior. To the applicants, the committee interview is less time-consuming, and can give you an opportunity to see how the staff works together, whereas this factor lacks in video interviews. While SSGC also conducts the individual interviews too. QUESTION# 5 INSTITUTE OF BUSINESS MANAGEMENT Page 23

HUMAN RESOURCE MANAGENT REPORT in this highly competitive economy, employers are looking for workers who can do more than just fill a vacancy - they are looking for people who can help them grow. While any job has a specific skill set associated with it, companies want workers with "evergreen" job skills that are always useful in changing times. SSGC looks for certain skills which they consider it most important Computers have taken over the workplace, and every worker needs to have at least a basic level of skill and comfort with modern technology, just to be able to function.You don't need to have a degree or special training in computers or information technology, but you'll be expected to have a basic level of ability to work with computers.Every job will require you to communicate with other people, in speaking and often in writing as well. Employers are interested in workers who can express themselves clearly in their dealings with supervisors, underlings and co-workers. If you don't know where you're headed, neither does your company. Having a plan for your own career will make your employer more willing to help you achieve your goals since they will benefit from your growth. Therefore we can observe through graphs that important skills for the job are oral and written communication,in the second graph self confidendence ,awareness while followed by analytical skills and passion to learn. QUESTION #6 The question asked about the fair recruitment it was seen that the SSGC employees were not happy with the recruitment process while talking to one employee ,he had a very subjective answer to this question saying that in Pakistan there are a lot of job that are usually fixed for certain people just because they are associated with high authority people so the company has to appoint them.while few employees were happy with the recruitment process while others had no idea. QUESTION # 7 The anwer to this question majority of employees choose the yearly based trainings are counducted which is a draw back in the employees side as well as companys side because the employee are not being trained on monthly basis to enhace their performance and if employees are given training sessions every 6 months it will be beneficial to the company too. QUESTION # 8 One of the positive outlook which we saw while evaluating the forms the employees were happy with the training sessions are taking it seriously as the answer responded was that the training are conducted which has a purpose behind it. QUESTION#9 The answer which we evaluated we got the answer as most of employees wanted training sessions on the job instructions ,the main reason behind it was few of employees were not sure about what the Supervisors want from the employees at what level they need to perform and certain guidelines related to it. QUESTION # 10 INSTITUTE OF BUSINESS MANAGEMENT Page 24

HUMAN RESOURCE MANAGENT REPORT The main problem which most the employees think in training sessions is time flexibility, the timings should be such so that most of employees can attend it with flexible timings. While the second most dissatisfied factor was topics were nt related to the work so the company should focus more on work. QUESTION#11 In response to the question about what skills the employees will prefer to obtain during their training most of the employees rated obtaining professional qualification as the least preferable and obtaining business skills and being familiar with new regulations as most preferred. Employees also rated high for skills like soft and technical ones. QUESTION#12 When SSGC employees were asked to rate different services provided to them by SSGC, the result shows, that they were extremely dissatisfied with the cafeteria service, few of the employees were dissatisfied while few were satisfied with salary system. Our sample of employees was found indifferent about insurance services provided by SSGC, and rated medical services as average. Whereas mostly employees were dissatisfied from the bonuses etc QUESTION#13 All of the employees have the same opinion that salary increment and other incentives have a positive impact on employees performance. QUESTION#14 When the employees were asked about the pattern of salary increments responses from most of the employees shows that their salaries are usually increased by more than 10% of the present salary after appraisal. However few employees responded that the increment depends on the work assigned. QUESTION#15 The answers to the question that how many times SSGC employees have salary increment in their present job till date shows salary increases are given quite often., as most of the employees rated that increments are given more than five times a year. QUESTION#16 In contrast to the last question asked the responses to this question shows that employees are not paid for overtime which is against the Civil rights Act and the Pay act. SSGC should pay employees a certain percentage for the overtime done. QUESTION#17 While defining their human resource department most of the employees nominated it as reserved this shows that they are not satisfied with the communication and co-ordination skills of HR department of SSGC. A large percentage was neutral about the HR department. INSTITUTE OF BUSINESS MANAGEMENT Page 25

HUMAN RESOURCE MANAGENT REPORT QUESTION#18 The responses to this very straight forward question show that yearly appraisal system is used in SSGC. However few employees were of the opinion that appraisal is done on quarterly basis while few of them said that appraisal is never done this shows that the employees are not certain about the appraisal system company follows which is a weak point. QUESTION#19 Employees were of the opinion that SSGC use their performance appraisal results to take decisions about promotions and salary increments mainly and not for taking decisions about yearend bonuses etc. QUESTION#20 When the respondents were asked that how satisfied they are with the role of HR department in reviewing appraisals that being taking place in SSGC, the results shows that, mostly employees are satisfied with the appraisal system though as answered in the previous question they are not very much familiar with HR department as they rated the department as reserved. QUESTION#21 When we asked the opinion of the respondents about why they think their fellows left SSGC according to them those who left SSGC switched due to better career opportunities in the market mainly and also due to being dissatisfied from the current job and unfair bonuses and increments given in the organization.

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CONCLUSION
The main objectives of our exercise is to identify and analyze the tasks, activities and functions of human resource department of the SSGC; firms selection criteria, training development procedures being followed, appraising of performance and compensation, rewards and other fringe benefits being carried by the company. For this we chose SSGC as major challenge for our project. A questionnaire was designed in order to help us in our research work which was being filled by the concerned employees of the companies. Besides that an interview was taken by HR authorities. Keeping present market situation in mind, we have concluded that competition in any company is very tough especially in the gas sector. It needs good or well educated employees and its aim is to keep its employees happy and loyal towards it. The object for the company was mainly to build effective and highly motivated teams which show that the company is more committed towards the team work. And, it is clearly evident from our research that the most desirable attribute for SSGC, in an employee, is to have the will to work, the Can Do attitude.

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APPENDIX
APPENDIX A

INTERVIEW
(For HR head) RECRUITMENT AND SELECTION: 1. What are the reasons do you think Universities unable to meet industry requirement? Reasons Education is not very business-oriented The curricula/syllabus has not been updated regularly Teachers are generally not updated new technologies and processes Students do not have enough core competencies to fulfill Industry requirements. Other 2. What are possible solutions of problems illustrated above: Solutions The share of visiting faculty from industry should increase. Students work on real projects from industry before completing their education. Teachers solve specific industry problems and bring back the knowledge to enrich the learning. Arrange Seminars/workshops Conduct specialized training programs. Other 3. In your opinion, what types of continuing education programs should be designed by Universities to upgrades their graduates technical and soft skills Continuing education programs Seminar class room conference INSTITUTE OF BUSINESS MANAGEMENT Page 28 Rank Importance Rank Importance Rank Importance

HUMAN RESOURCE MANAGENT REPORT Video presentation Teleconference Independent reading (of articles, books, manuals) Independent study (reading and/or hands-on practice) Individual instruction (one-on-one) Specialized certificate/diploma programs with the support of pharmaceutical companies. other (please specify) 4. What is the most important Selection Criteria for Recruiting Graduates/Employees Selection Criteria for Recruiting Graduates Performance at interview Essential Skills displayed Non-academic activities Performance of candidates from same school Understanding of the world of work Academic rigors of subjects taken Relevance to job of subject taken Practical projects undertaken Presentation of CV/ Academic record Work experience undertaken Willingness to learn and continue learning Level of preparation for interview Other Rank Importance

5. What is the least Desirable Characteristics When Recruiting Graduates/Employees. Least Desirable Characteristics Poor Attitude/Lack of Work Ethic/Approach to Work Lack of Interpersonal & Communication Skills (written, oral, listening) Lack of Drive, Motivation, Enthusiasm and Initiative Arrogance/Selfishness/Aggression/Dominating Lack of Commitment/High Absenteeism/Lack of Loyalty Inflexibility to Accept Direction, Challenges or Change Poor Academic Qualifications or Results Poor Teamwork Skills Lack of Selfawareness or Selfconfidence Lack of Leadership Skills Other Other Rank Importance

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HUMAN RESOURCE MANAGENT REPORT TRAINING AND DEVELOPMENT: 6. Does your company have formal training program for staff? ( ) Yes ( ) No

7. What is your Company objectives for Training and development of your staff a. to improve the performance of staff in their present roles, b. to prepare staff for future roles and career development, c. to enable staff to adapt to meet the upcoming challenges, d. to maintain and enhance the quality of service in all areas, e. to support, where possible, personal educational development; f. to increase job satisfaction. g. Creating a pool of readily available replacements h. Building a more efficient, effective and highly motivated team. 8. How do you to analyze your employees training needs a. Performance Reviews by supervisor. b. Surveys c. Interviews d. Customer Feedback e. Performance Tests f. Other 9. Is there any follow-up system to training courses? a. Yes b. No 10. What things would you say are most important to you in skills training? Skills Obtaining professional qualification Developing technical skills Developing soft skills Developing business skills Understanding of the business Broad sector experience others Rank importance

SALARY AND COMPENSATION: 11. Salary decisions are taken at the time of joining the organization? a. Yes b. No 12. Is there any influence of labor unions on salary modification in your organization? a. Yes b. No 13. Are your employees including you satisfied with current salary system? a. Yes b. No 14. Do you think salary increment leads to increase in performance in your organization? INSTITUTE OF BUSINESS MANAGEMENT Page 30

HUMAN RESOURCE MANAGENT REPORT a. Yes b. No 15. Check on the following benefits that your organization provides to employees. a. Health, property insurance b. Official car c. Free cafeteria food services d. Free medical e. Bonuses. PERFORMANCE APPRAISAL: 16. How frequently performance of employee is appraised? a. Annually b. Semiannually c. Half yearly d. Monthly e. Others 17. Does promotion decisions of the employees link to your appraisal results? a. yes b. No c. May be 18. Who do the appraisal of employee? a. Immediate boss b. Subordinate c. Peers d. Top boss e. 360 degree feedback 19. Does HR department review the appraisal results form after they are filled in? a. Yes b. No 20. What do you think is major reason of employee turnover in your organization? a. Unfair salary and incentives b. Job dissatisfaction c. Better Career opportunities d. Found better jobs e. Inadequate training and development f. Ambiguous job duties g. Insufficient rewards and promotion

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QUESTIONNAIRE
(For employees) all departments This information will be strictly used for survey and your information given will be kept confidential. Name of the respondent: ____________________ designation: ___________________ Department: ____________________ RECRUITMENT AND SELECTION: 1. At the time of your recruitment were you clear about your job description? a. Yes b. No c. Somewhat 2. Where did you learn about the company? a. Internet b. Advertisement c. Employment agencies d. Executive recruitment e. College recruitment f. Walk ins & Referrals 3. Which of the test have you undergone during the recruitment period? (Can tick more than 1) a. Intelligent tests b. Personality test c. Achievement test d. Video-Based Situational Learning e. Work samples 4. How are interviews conducted? a. Panel interviews b. Individual interviews c. Phone and video interviews 5. Out of the following attributes, rank skills that you think hold any importance in your current job? (5 being the most important, 1 being the least). Skills Oral communications Written communications Literacy Numeracy Self confidence Commercial awareness Rank Importance 2

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HUMAN RESOURCE MANAGENT REPORT Ability to work as part of a team Organizational skills Analytical skills Client relationship skills Creativity Problem solving Negotiation skills Personal drive and commitment Initiative 'Can do' attitude Passion to learn Reliability Other (please specify) 6. Do you think recruitment and selection process being conducted in SSGC is fair and equitable? a. Agree b. Disagree c. May be TRAINING AND DEVELOPMENT: 7. How often is the training done? a. Monthly b. Quarterly c. Yearly d. Never 8. How do you find training for your career improvement? a. Meaning full b. Useless/ worthless c. Time pass activity d. No opinion 9. What method of training do you prefer to be practiced? a. Informal training b. Job instruction training c. Lectures d. Computer-based training 10. What are the main dissatisfying features of your organizations training program? a. topics and content of training programs are not relevant to work INSTITUTE OF BUSINESS MANAGEMENT Page 33

HUMAN RESOURCE MANAGENT REPORT b. times offered are not convenient c. locations offered are not convenient d. quality of instruction is poor e. other (describe) ______________ 11. What things would you prefer to learn in skills training, keeping in mind requirements of your job? Scale: 1 being least preferable and 5 being most preferable. Factor 1 Obtaining professional qualification Developing technical skills Developing soft skills Developing business skills Understanding of the business Broad sector experience Being familiar with latest regulations SALARY AND COMPENSATION: Scale: 1 being least satisfied and 5 being most satisfied 12. Please rate the following regarding your organization, using above scale FACTORS 1 RANK IMPORTANCE 2 3 4 5 Rank importance 2 3

Your current salary system Health, property insurance Cafeteria services Bonuses and rewards for high performance Medical services Other (please specify) 13. Do you think salary increment and other incentives lead to increase in your performance? a. Yes b. No c. May be 14. What is the rate of salary increment? a. 2-3 percent of percent salary b. 3-5 percent of percent salary c. More than 10 percent of the present salary d. Depends on the work I am assigned to. 15. How many times you have salary increment in your present job till date? a. More than 5 times b. Less than 5times INSTITUTE OF BUSINESS MANAGEMENT Page 34

HUMAN RESOURCE MANAGENT REPORT c. Not yet any increment 16. What is you overtime procedure? a. No compensation b. Straight time off in lieu of payment c. Overtime pay (1 or 2 times) d. Bonus in lieu of direct compensation. PERFORMANCE APPRAISAL: 17. How do you find your HR Department? a. Very friendly b. Friendly c. Neutral d. Reserved e. Very reserved 18. How often is performance appraisal done? a. Monthly b. Quarterly c. Yearly d. Never 19. What major decisions are based on performance appraisal? a. Salary increment b. Promotions c. Benefits and bonuses d. Other (please specify) ______________ 20. How satisfied are you with the role of HR department in reviewing appraisals that being taking place in your company? a. Very satisfied b. Satisfied c. Neither satisfied nor dissatisfied d. Dissatisfied e. Very dissatisfied 21. What do you think is major reason of your fellow employees turnover? a. Unfair salary and incentives b. Job dissatisfaction c. Better Career opportunities d. Found better jobs e. Inadequate training and development f. Ambiguous job duties g. Insufficient rewards and promotion

Thank you for your coordination please attach you visiting card. INSTITUTE OF BUSINESS MANAGEMENT Page 35

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APPENDIX B

INTERVIEW
(For HR head) QUESTION#1

poor attitude or ethics 10% 20% lack of interpersonal skills lack of motivation 20% 10% arrogance

Question 2:

10% 20% 10% 10% 20%

poor attitude or ethics lack of interpersonal skills lack of motivation arrogance lack of commitment

Question # 3
poor attitude or ethics 10% 10% 10% 10% 20% 10% 20% lack of interpersonal skills lack of motivation arrogance lack of commitment poor academic qualification poor teamwork skills

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HUMAN RESOURCE MANAGENT REPORT QUESTION # 4

poor attitude or ethics 10% 20% 10% lack of motivation 10% 10% arrogance lack of commitment 20% 10% poor academic qualification lack of interpersonal skills

10%

QUESTION # 5

10% 20% 10% 10% 10% 20% 10% 10%

poor attitude or ethics lack of interpersonal skills lack of motivation arrogance lack of commitment

QUESTIONNAIRE
(For employees) all departments QUESTION #1

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9 8 7 6 5 4 3 2 1 0 YES NO QUESTION 1 SOMEWHAT

QUESTION # 2
7% 20% 7% 13% 7% 46%

internet advertisemet executive recruitment employment agencies college recruitment walk ins & referrals

QUESTION # 3
12 10 8 6 4 2 0 intelligence test personality achievements video based work sample situational learning

QUESTION # 4

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12 10 8 6 4 2 0 intelligence test personality achievements situational work sample video based learning

QUESTION # 5
9 8 7 6 5 4 3 2 1 0 panel interviews individual interviews phone and video interviews

QUESTION # 5

10

Self confidence Commercial awareness Ability to work as part of a team 1 2 Self confidence 3 4 5 Organizational skills

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HUMAN RESOURCE MANAGENT REPORT

15 10 5 0 1 2 3 4 5 Analytical skills Analytical skills Client relationship skills Creativity Problem solving

QUESTION # 7

15 10 5 0

QUESTION # 7

12 10 8 6 4 2 0 monthly quaterly yearly never Question 7

QUESTION # 8

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16 14 12 10 8 6 4 2 0 meaning full useless time pass activity no opinion

QUESTION 8

QUESTION # 9

10 8 6 4 2 0 informal trainning job instruction training Q9. lectures computer based training

QUESTION # 10

8 7 6 5 4 3 2 1 0 topics and time offered locations quality of content of are not offered are notinstruction is training convienient convienient poor programs are not relevant to work QUESTION 10

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HUMAN RESOURCE MANAGENT REPORT QUESTION # 11

10 5 0

QUESTION # 12
6 5 4 3 2 1 0 Your current salary system Health, property insurance Cafeteria services Bonuses and rewards for high performance Medical services 1 2 3 4 5

QUESTION # 13

QUESTION 13
15 10 5 0 Yes No Series1

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HUMAN RESOURCE MANAGENT REPORT QUESTION # 14

10 8 6 4 2 0

QUESTION 14

2-3 percent of percent salary

3-5 percent of percent salary

More than 10 percent of the present salary

Depends on the work I am assigned to

QUESTION # 15
8 6 4 2 0 More than 5 times Less than 5times

QUESTION 15

Not yet any increment

QUESTION # 16

14 12 10 8 6 4 2 0 No compensation Straight time off in lieu of payment Overtime pay (1 or 2 times)

QUESTION 16

Bonus in lieu of direct compensation

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HUMAN RESOURCE MANAGENT REPORT QUESTION # 17

QUESTION 17
1 Very friendly 4 8 Friendly Neutral Reserved Very reserved

QUSTION # 18
0 1 2

QUESTION 18

Monthly Quarterly Yearly 12 Never

QUESTION # 19
12 10 8 6 4 2 0 Salary increment Promotions Benefits and bonuses

QUESTION 19

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HUMAN RESOURCE MANAGENT REPORT QUESTION # 20

8 7 6 5 4 3 2 1 0 Very satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied

QUESTION 20

Very dissatisfied

QUESTION # 21
12 10 8 6 4 2 0

QUESTION 21

BIBLIGRAPHY
www.ssgc.com.pk/ http://www.privatisation.gov.pk/oilgas/SSGCnew.htm

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