Introduction To SSGC SUI Gas Company Commerce Essay

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Sui Gas Company is the leading integrated company of gas in Pakistan. Which has established on 30th march 1989 as a result merger of two companies, the southern gas company and the Sui Gas Company and transmission Sui gas company ltd. The company is doing a business of natural gas transmission at the side of the construction of low pressure distribution system and a high pressure transmission system.

The transmission system of SSGC expands from sui in Baluchistan to Karachi which is located in Sindh including over 3,200km pipeline of high pressure ranging from 12-24'' in diameter. In 1955, there were two distribution companies which were established and also responsible for distribution of the gas to the consumers in Karachi and also in other towns along with the route of the transmission pipeline between Karachi and Sui. The activities of the distribution of gas covering in Sindh and Baluchistan of more than 1200 towns and they are also organized through their regional offices with an average of 357,129km.

SSGC is managed by a self-directed board of directors for policy making and other guidelines and the overall control. Currently, the board of SSGC'S comprises with the members of 14 peoples. The C.E.O is also a candidate of government of Pakistan and also has been handed over with the powers given by the board of directors to conduct effective business for the company. The Sui gas company also holds and operates the plant which manufacture the gas meter in the country with an agreement to the Schlumberger industries which are located in France. The core business of this company is to buy natural and then transmit it to load centers over high pressure transmission system, and then allocate it to its clients by their Pipe Lines. Their majority consumers are the domestic consumers and comprise of 98.9% and commercial consumers consist of 1.1% and industrial consumers include 0.2%.

ESSENTIAL STANDARDS OF THE COMPANY

Core values of the company include the following:

1. Excellence

This will make positive contribution towards the achievement vision of SSGC's. Struggle for continuous improvement. Take timely & quality decisions and Respond effectively to customer needs.

2. Integrity

This will keep company's interest above self. Promote ethical business environment and Act in ethical manner. Seen & known to be honest.

3. Teamwork

Build strong relationships within across functions. To work sound with all types of individuals and other companies. Asks and stake best rehearsal with others. Maintain the achievements of company/team goals.

4. Transparency

Promotes open atmosphere. Show honesty and steadiness in smearing strategies & actions. Compliments opposition and resolves struggles honestly.

5. Creativity

Come up with new ideas. Encourage innovation. Promotes modified appropriates. Convert ideas into actions.

6. Stakeholders Responsibility

Side by side they change their operating environment that impacts on their business (i.e. markets competitors, employees, technology, customers, regulatory, suppliers, political and public) that will help in creating the solutions making needs of customer. Also promotes colleagues and team members to improve their performance and skills. Make best utilization of their resources. By making their long term and short term main concern to maximize on their results and make sure that compliance of law will follow.

COMPANY'S OBJECTIVE

SSGC's foremost purpose is to distribute natural gas where ever the cost of infrastructure is acceptable. Many places in Pakistan the gas network is increasing to congregate social and economic requirements by their funding support from the provincial govt. and federal govt. in 2003, 5 years comprehensive plan for the development of gas network is launched by the company to provide the gas to many small villages and towns in the rural areas of Baluchistan and Sindh. Every year, the company adds more than 66000 new customers and also increase their infrastructure by making more investment in increasing that development plan and also increase the billing facilities for their customers and also promotes their skilled and technical employees. And give more value to their customers because customers are the real asset of their company.

PRODUCT/SERVICES

The organization being a gas company that has an autonomous body comes under semi government, under the service sector, providing the facility of natural gas that is being used on commercial basis as well as noncommercial basis. It is use in daily basis in homes, factoring, manufacturing plants, small shops (for welding purpose) CNG stations and E.T.C.

ACHIEVEMENTS

SSGC is the first company to reach the landmarks of customer facilitation through an agreement inked by SSGC and 1LINK (Guarantee) Ltd. Whereby customers from the ATMs of participating 1LINK member's banks would be able to pay gas bills around the clock using their bank's cards.

This agreement effectively makes SSGC the first organization in the corporate sector to extend its burgeoning customer base an access to alternate delivery channels for online and instant bill payment facility.

The agreement which was signed at the SSGC head office will also facilitate the consumers to pay their gas bills in a totally secure, hassle-free environment without queuing up at the banks. The company has emerged as a leader and a trailblazer in bringing the technology up to date and bring innovations and applications that aim to not just transform the way business is conducted but provide more and more options to the consumers. SSGC is the only company that has the technology infrastructure and a totally customer-centric focus to initiate online bill payment facility thus eliminating the hassles previously faced by the customers.

ORGANIZATION CHART OF SSGC (CORPORATE SERVICES)

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B. FUNCTIONS OF HR (HR OPERATIONS)

Following are the Functions of HR (OPERATIONS) in SSGC:

1. Recruitment & Selection

2. Transfer Posting

3. Separation

4. Leave Management

5. Human Resource Information System (HRIS)

6. Performance Management System

1. RECRUITMENT AND SELECTION

It is the process of finding and attempting to attract the job candidates who are capable of effectively filling the job vacancies. First of all HR reviews the vacancy position and in this way requirement from various departments are identified by the SSGC and its organization such as notice boards etc., job description and job specification, both mentioned earlier.

Internal Recruitment:

First they recognize the need, like if the executive post is actually needed to fill or not, then HR department of SSGC inform about the job vacancies to the lower level executives by Job Posting (Job description and Job specification are both shown in conspicuous places in the organization such as notice board)

The employees who meet the requirement and are willing to work in the post, send their CV's to the HR department with the approval of their department heads and that is the "General Manager" of the respective Department.

All the applications are collected by the HR Department.

The most suitable Applicant is selected according to the need of department and called up for the Interview.

The time and venue for Interview are informed to the selected Applicants.

The Interview is conducted by the HR department and few of the department senior executives

Before the starting of interview, CV's of each selected applicants for the interview is kept in the file and the copy of each in a file is given to the three department heads.

Then the ranking of the applicants is done, like the top three or two applicants would be selected for final interview.

Recruitment Manager conduct the final interview or sometimes the most needed applicants is selected without going through the process of final interview.

However during the final interview, the terms and conditions, salary package and other benefits are ask the selected applicant about his/her expectations.

If the applicant is satisfied overall then he is selected for the position.

After the approval of MD later on, the Internal Recruitment process ends. If no applicant is selected then the External Recruitment can take place.

When the process ends, an Appointment letter is issued for the applicant.

All the compensation and benefits are designed.

Medical Fitness letter is issued after acceptance

External Recruitment:

In SSGC, Employees are hired both on Permanent as well as on Contract basis. The time of Contract basis can vary from 1 year to 5 years. The benefits for Contractual employees can vary from their designated grades.

For the record, SSGC is been overemployed for past few years, and external recruitment is gradually stopped to zero. But SSGC have a formal procedure for external recruitment.

For the external Recruitment, SSGC issue advertisement for job vacancies. Job Description and Job specification is mentioned along with it.

The candidates who are willing and are been meeting the requirement, send their CV along with the cover letter to the HR department of SSGC.

The most qualified, experienced, talented candidates are selected of the interview.

Time and Venue is informed by the Recruitment Manager.

Rest of the process is same as the Internal Recruitment.

However, if the selected applicants left before joining the Organization, then the 2nd most appropriate applicant is considered. However if none of them is capable enough to recruit then again an advertisement is issued in the newspaper.

RECRUITMENT PROCESS:

2. TRANSFER POSTING

Approvals from the head of both departments required the current department and the department shifting to (in case of transfers)

N.O.C are issued to the employees while they are applying for passports and visa to travel out of the country

Operational requirements are needed for transfers, orders by DEP. Heads and other top officials of the SSGC and can also be done by the approval of both the department heads.

Transfers can be done from same location, one department to another department and even from one section to another within a department.

Transfer request should be sent by directly the employee rather than their concerned department heads is not accepted and is filed for recorded. No reply is given to the employee.

Joining period of 7 days and TA/DA are not awarded in case of transfers on own requests.

Transfer letter should have written area code and costing code (data related to salary medical, benefits)

Posting and transfers are done according to the interest of the company and requests from the employees.

Re-designation:

Can take place from one department to another department, from one section to another providing the grades remain the same.

Certain criteria should also be met that includes the Approval of Department head, Relevant/ degree/knowledge, Trait test, and the Vacancy

3. SEPARATIONS

Four types of separations.

Retirement

Resignation/Early retirement

Dismissal/termination

Death /expired

Retirement:

This process begins 6 months before the actual retirement with the approval of the retiree. Leave encashment is allowed up to for 60 days. Retiree is asked in advance on the forms as to which option will be choosing, either gratuity or pension. Retiree is asked about which option he/she will be choosing of the two. The form consists of details like salary, service period, and date of joining, age, and stock option.

List of retirees is form were prepared

Separation policies were reviewed

Calculation of gratuity and pension were reviewed

Intimation to executive about their retirement 3 months before the date

Informing the executive about the leaves balances availability and the need to use/avail it

Informing executive about their option for pension/gratitude or a combination of both

Information is send to the finance department regarding the executive preference for the options.

Preparation of retirement letter and a copy is send to the finance.

Memo to finance department for arrangement of super annulations Gift

Resignation or Early Retirement:

Receiving of request form the executive though HOD.

Intimation to finance regarding resignation/early retirement of the executive.

Exit interview by H.R.

Sending exit interview form, resignation letter and earned leave statement to MD for approval

Dismissal/Termination:

Informing executive about their option for pension/gratitude or a combination of both.

Finance department is send information about executive preference for gratitude/pension and E/L and a copy of dismissal/Termination.

Issuance and filing of provident fund withdrawal form and format "A" form.

Informing CMO (no medical facilities given from the date of dismissal).

Gratitude/pension options to the employee and approvals from competent authority once acceptance letter is approved from MD.

Acceptance letter once received from MD will be send by H.R to the executive and a copy to finance along with the format "A" form, provident fund withdrawal forms and PFS.

Death/Expired:

Sending Condolence/sympathy letter to spouse/families

Writing a memo to finance for payment arrangement of funeral charged

Written confirmation of the next Nominee/kin

Options for surviving spouse or family about the pension

Request of death certificate from the family

Inform finance about final settlement payment and copy of death certificate

Issuance and filing of provident fund withdrawal form and format A form

Insurance claim (memo written to finance)

Spouse given an option of purchasing company Car.

Informing CMO about executive death.

4. LEAVE MANAGEMENT

Earned leaves

Monthly 3, Annual 30

Can be accumulated till 60

Leave without pay can be extended to 90 days

Sick leaves

30 annual sick leaves

End of year lapse, no accumulation

1 day without certificate, above required certificate

Prolong illness up to 90 days with approval from the GM medical

2 years study leave

5 year career service pre -requisite

Undertaking required

Submission of semester reports

4 years mandatory service after rejoin

Half average pay above salary

Paid once life time to the employees

6 months' salary is pain in advance; it could be in lump sum or in instalments against the absentees during the service period

Hajj Leave

If the person is served the company for 15 years or more than he is entitled to go for Hajj leave.

Leave without pay

If the leaves are taken without the approval then it would be leave without pay.

Days off/Relief leave

If the executive is also working on the Saturday/Sundays he will get 11days leaves.

Training leaves

If the company or the executive feel that they need training then the executive get the training leaves

EX-Pakistan Leave

Can visit to foreign countries for academic or other reasons.

In leave Management we were assigned the following tasks

All the Leave entries of employees are entered in the databases

5. HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

For HRIS the H.R department used ORACLE software. Databases of all the employees are maintained and it is made sure that is up to date. Through HRIS the concept of (ERP) is made functional.

HRIS applied the concept of the enterprise resource planning (ERP). The incorporated Oracle E-business suite software's gave enormous SSGC control over every aspect of its business. The whole summary is provided at a glance, they are able to sight what is literal position of any situation. There has been a great increase in the efficiency and the effectiveness of the company and its operation after the introduction of thru software.

The Promotion criteria, to decide the employee is in a position to go to its next grade or not. It's basically based on the PMS rating which was giving to them secretly by their Departmental head and also based on their qualification, performance, and long service. The company also gave long service Award to the employees whose goals were in aligned with organizational strategic goals and who are part of since 10 years or 20 years after completing it they may get Award of their services. The Increments, the benefits are also giving to them by the management which is approved by the Board of the directors of the company.

6. PERFORMANCE MANAGEMENT SYSTEM

PMS is the annual assessment of executives and it is done by reporting Officers and Endorsed Head of Department. On the basis of which Annual Increment is awarded. Performance management system is A Business process that drives Results, Share Responsibility between Executive and Immediate Supervisor. It is the mean for two way Communication between Supervisor and Executive. It is the tool to define Contribution/Performance and provide a Yard Stick to measure.

Process of Performance Management System:

First Preparation of Database and Salary Sheets, Department basis Development/ Management.

Rating the Annual Increment

Guild lines to Department/ Divisional heads for performance Rating and Annual Increments

Printing of all the forms in Executive-wise

Department-wise sorting listing and packing

Sending the forms with lists and memo to the Department Heads

Approval from MD

Performance Management System is the Annual Valuation of Executives and it is done by reporting officers and Department Heads. On the basis of PMS, Annual Increment on the basic Salary is awarded.

Transfers are based on disciplinary, performance and on request and on approval from bosses. Performance management starts usually in the month of June and it takes about 40 to 45 days to complete the process but this is usually don't happen (the 40 to 45 days).

Conflict Management comes into the role when any employee disagrees with their appraisal given by their reporting officer. The criteria for calling a meeting to deal with the conflict is, If the employee is given a ranking of 50 or below, then a panel meeting would be called to deal with the conflict. And a formal process takes place:

Forms are reviewed for those employees who had disagreement with their Appraisals.

The forms are then assessed by the respective department heads.

Again, the executive performance is rated correctly

However if the executive disagree then he can send his reporting application

7. CHARTER OF DEMAND

It is a Memorandum of Settlement between the Sui Gas Company and Collective Bargaining Agents. This Charter of Demand is made by the People Labor Union (The head of Labor Union is the employee, who win the Labor Union Election) for negotiating and doing consensus with Management and Staff Union every two years to renew the Payroll.

Objective of COD:

In SSGC, the main objective of COD is to ensure the better relationship between Management and its labor/Workmen force, which can benefit the company with Industrial and Economic growth.

To sustain the labor organization relationships and to agree the rights and tasks of the corporation.

C. CONCLUSION

SSGC is a Public Organization, all the Functions & Procedures they told us, were somehow diverse than those of the Private Companies. The company today is the mixture of both Centralized & Decentralized Structure. From each perspective, they have been handling problems differently.

Nonetheless, the HR department also meet the standards of any Multinational Organization and the Department itself is playing a Vital Role for Company. They have undertaken many Initiatives to ensure high level of professionalism and productivity of the different departmental Employees.

C. PROBLEMS

1. Performance based Flaws:

The HR department of SSGC have a rating pressure for evaluating employees, due to External Forces and Liking/ Disliking of Head of Department (GMs). Actually, the Head of the department have to review the performance appraisal of employees working under his/her department.

The employees who are close to seniors, get an unreasonable benefit in Performance Appraisal.

And those employees who are of the same department but work in the site areas or away from SSGC's Head Office, get unreasonable disadvantage in their Performance Appraisal.

In that way, those employees, due to low co-ordination with seniors also loose the chance of getting justified Increment.

The type of Performance Management System which is been implemented is not best suited for SSGC. Because due to the uncontrolled environment, in which the increment is awarded on the basis of Performance, create equity problem between junior employee and the senior employee in term of Salary. (Like If a Junior is having competency and performing well and for this purpose is been awarded maximum increment from past few year, and can surpass a senior employee who isn't been awarded increment due to unsatisfactory performance then it will create a misbalance-that the senior will be demotivated)

2. Traditional Practices:

Since SSGC is a Public Limited Company, they are been practicing Traditional approaches which are set previously in the past. Unlike any reputable Private organization, there is no concept of assigning the objectives and letting the employees achieve it.

3. Improper Designation of Employee:

After Hiring an Employee, a proper training is given but even then, due to the improper designation, the employee is sent to a completely different department for which he/she wasn't prepare. And again the training for working in the designated department is given from the beginning.

4. Overemployment:

SSGC is been overemployed since a couple of years, and HR department is unable to cope up with this problem.

5. Inconsistency in Promotion Policy:

Due to the Overemployment, the promotion cycle of other employees is been disturbed. It is a big problem for HR department in SSGC. Some employees are not promoted for past 10 to 12 years. And due to this thing, employees who meet and exceed the overall performance become demotivated.

6. Grading Policy:

In Past year, HR department have increased the Job Position Grades

7. Recruitment & Selection:

Due to Overemployment, the external recruitment is been gradually stopped. And SSGC is not actually having new and more competitive fresh graduates, working for the Organizations

8. Involvement of External Forces:

There is a huge political Interference in SSGC, and because of this force employment is been done. External forces also effect the proper procedure of Posting & Transfer of employees. The HR department is unable to reduce/ eliminate it with their current policies.

9. Union Interference:

Union Interference is increased in past few years due to the unreasonable bargaining's and they ultimately manipulate the Staff of the Corporate Department.

10. Technological Changes:

To maintain the Oracle database of Employees' attendance, their performance is collected only for those employees who are working in the SSGC's Head Office.

D. SUGGESTIONS

1. Dealing with Performance based Flaws:

• The HR department of SSGC have a rating pressure for evaluating employees, due to External Forces and Liking/ Disliking of Head of Department (GMs). Actually, the Head of the department have to review the performance appraisal of employees working under his/her department.

• The employees who are close to seniors, get an unreasonable benefit in Performance Appraisal.

• And those employees who are of the same department but work in the site areas or away from SSGC's Head Office, get unreasonable disadvantage in their Performance Appraisal.

• In that way, those employees, due to low co-ordination with seniors also loose the chance of getting justified Increment.

• The type of Performance Management System which is been implemented is not best suited for SSGC. Because due to the uncontrolled environment, in which the increment is awarded on the basis of Performance, create equity problem between junior employee and the senior employee in term of Salary. (Like If a Junior is having competency and performing well and for this purpose is been awarded maximum increment from past few year, and can surpass a senior employee who isn't been awarded increment due to unsatisfactory performance then it will create a misbalance-that the senior will be demotivated)

They should make the Organization structure more decentralized. So that there won't be any rating pressure

2. Alternative of Traditional Practices:

3. Dealing with Improper Designation of Employee:

4. Overcoming the Overemployment Issue:

5. Reducing the Inconsistency in Promotion Policy:

6. Suggestions for Grading Policy:

7. Improving Recruitment & Selection:

8. Reducing the Involvement of External Forces:

9. Reducing the Union Interference:

10. Dealing with the Technological Changes:

External Hiring should be done on proper merit basis

Decentralized working system should be introduced

Performance evaluation should be carried out frequently

Proper distribution of assignments should be made among employees that should be rotated from time to time for overcoming boredom and monopoly

Job description should match to employee's field of expertise/work.

1. The problem of over-employment can be corrected by implementing and focusing more on strategy "right person for the right job". SSGC should only retain employees which are more effective and efficient.

2.

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