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Who guided me throughout this semester and shown very kind attitude towards me. Moreover, I want to thank sir Aftab to give an opportunity to explore the real work of an organization. It is because of his project research assignment, I am able to know how organizations actually work, how they follow code of conduct and what functions each department follows. So, due to him, I am able to learn and experience Human Resource Department of Sui Southern Gas Company that polished my ideas regarding Human Resource Management.
Sui Southern Gas Company, abbreviated as SSGS, was created on March 30, 1989, following a series of mergers of 3 pioneering energy companies namely, Sui Gas Transmission Company, Karachi Gas Company and Indus Gas Company. Sui Gas Transmission Company Limited was formed in 1954 with a primary responsibility of gas purification at the Sui field in Balochistan and its transmission to the consumption centers at Karachi. Two distribution companies were established in 1955 and were responsible for the distribution of gas to consumers in Karachi and other towns along the rout of the transmission pipeline between Sui and Karachi. In 1985, these two distribution companies were merged to form southern Gas Company Limited and later, in 1989, Southern Gas Company Limited and Sui Gas Company Limited were merged to form a Sui Southern Gas Company Limited.
Now SSGC is a "public limited company, listed on the Karachi, Lahore and Islamabad Stock Exchanges with more than 70% direct shareholding by Government of Pakistan. It has an authorized capital of RS.10 Billion, out of which RS. 6.7 Billion is issued fully and paid up and is managed by an autonomous Board of Directors having overall control. Presently SSGC Board has 14 members drawn both from Public and Private sectors". The Managing Director/ Chief Executive is nominated by the Government of Pakistan and has been delegated with such powers by the Board of Directors as are necessary to effectively conduct the business of the company.
Today, SSGC's infrastructure supports more than million customers. Domestic consumers comprise the overwhelming majority of those users (98.8%). However, Commercial consumers represent 1 % consumption and Industrial consumers represent 0.2% consumption.
"Human Resource Department (HR)": It is the set of individuals who make up the "workforce" of an organization. "HR department serves as the backbone of any organization. It is responsible to manage employees' relations, rights, transfers, selection and terminating, enquiry, compensation and benefits etc.
In SSGC, the Human Resource Department is divided in 3 divisions namely Operational, Industrial Relations and Organizational Development and Training. Operational Department deals with the affairs related to the Executive cadre while Industrial Relation deals with subordinate cadre. And the Organizational Development is engaged with HR planning and development". Human Resource Department of SSGC follows "Equal Employment Opportunity" standards and believes that both, male and female should be treated fairly while selection, termination, training, providing benefits and compensations etc.
Main Functions of SSGC HR Department
"Enquiry and Discipline"
"Human Resource Information System (HRIS)"
"Performance Appraisal "
"Transfers and Postings"
(Briefly discussing about above mentioned functions)
1. "Organizational Development": This sub department is managed by Mrs. Binish Qaseem, who is the head of this section, also known as, Training and Development. The main purpose of this sub-department section is to give workshops to the employees so that their working ability increases. Moreover, there is a workshop named as "Succession Planning", in which employees were given trainings for higher ranks.
2. "Leave Management": This is also one of the main sections of HR department of SSGC. It is headed by Mr. Waqqar Heider. Leave Management, also known as "Absence Management". Employees' absent data is managed in SSGC in the software named "ORACLE". Leave of heads and junior employees is managed. Leave form should be filled along with the signature of respective department's manager before sending it to HR department to keep a track of an employees' absence. Extra leave is conveyed to the concerned department by HR manager to let every employee know his/her leave availability. Main leaves permitted by SSGC Human Resource department are:
"Sick leave": Up to 25 days allowance to SSGC employees".
"Casual leave: Up to 3 casual leaves are allowed to junior workers and 5 casual leaves to the senior employees".
"Hajj leave": This leave is acceptable up to 29 to 36 days, depends upon the years' work of an employee.
"Non-Pay Leave: This is the case, when employees want a leave but they cannot avail more leaves due to exceeding their leave limit. So department will allow their off but will not provide the pay. Maximum exceeding leave requires MD's permission.
"Official tour visit": Leave granted due to some official tour. It is for half month and leave for office tour requires MD's permission".
"Official Off-leave":" Leaves granted for the rituals such as Eid, Diwali etc. Maximum availability 3 days".
"Maternity leave": This is permitted for three and half months and 2 times in a whole of a lady employee career there. And this leave required an approval of Director Health department and then afterwards goes for maintaining a track at HR department.
3."Enquiry and Discipline": This section is managed by Mr. Suhail Jaleel. When any bad behavior of worker is observed and recorded by respective concerned department, it has been then posted to Human Resource department to conduct inquire on worker's misbehave in a formal documentation called "Charge sheet". This charge sheet includes; "facts of enquiry", "acts of enquiry"," prosecution version", "defense version"," findings of enquiry" and "conclusions" & "recommendation". And after the result, if person/worker found blameworthy, GM Human Resource give suggestions regarding how to punish according to the books of Ethics in this company; such as "No granting of yearly increment for 1-2 years", lowering the grade/rank for 6 months, without pay suspension for four months or terminating (i.e. Dismissing) that person.
4. "Recruitment": Recruitment sub department/section is managed by Mr. Alii Akber, who is a "Recruitment Manager". Employees in SSGC are given Grades. Grade 1 Designation held the least post while Grade 10 Designation held the highest post and after that Board of Directors are there, which are above Grade 10 and are not ranked according to the grade.
SSGC Human Resource Department follows 3 types of Recruitment:
"Internal Recruitment: In this type of recruitment, employees within the SSGC Company can fill the vacant post with the desired needed qualification. no new employee from outside fill the vacant post".
"External Recruitment: In this type, vacant post and desired qualification need for that post is advertized so that outsiders can fill this vacant post, having such required qualifications".
"Ex-staff Recruitment: In this type, company request to an experienced employee to fill the vacant post so that work should be done accurately and in less times"
After recruitment from either of the above type of recruitment, HR department follows further procedures of recruitment such as, "Selection Committee", "Selection and Interview", "Medical Exam", "Security Clearance", "Appointment", "Succession Planning", "Notice Periods," "Exit Formalities", "Service type" and "after service compensation policy".
5. "Grievance Management": Mr. Waqaar Sheikh is the head of this sub department/section of HR department. In this, it is being dealt with the issues of the subordinates in formal manner. Most of the issues are regarding giving employees a seniority based promotion. When the formal document is received by the Head/Manager of this department, he then confirms the application then make evaluations an employee's work then take possible decisions under his authority so that employee get satisfied.
6. "Contracts Management": This sub department/section is managed and headed by Mr. Sattar Shahaani. The motto of this is to do a contact signing by respective parties so that they could do work on contracts only, to achieve their purpose of providing gas. This section was formed when "Ministry of Oil and Gas" banned the recruitment of workers, for government owned companies. So, due to that, SSGC formed this sub department to hire party for their running projects on contracts, so work in a consistent way without delays.
7. "Industrial Relations": This section is handled and managed by Mr. Iqbaal Husain. It deals with the relations of Labor Unions. Labor Union in SSGC is named as "People's Labor Association" (PLA). The PLA negotiates with the head of this department on their demands; under certain conditions regarding union members should be settled. Most of the dealings and talks held are on giving employees with some benefits and perks on their work performance.
8. "Human resource Information System (HRIS"): This section is managed by MR. Fakhir. It is a connected system, designed to give tracked information. The main motto of this section is to keep a record of data related to Human resource Department. Such as "record of worker sent on workshop/training, record of new employee being recruited, record of those, who misbehaved".
9. "Performance Appraisal": This section is headed by Mr. Ali Imraan. The review on performance appraisal starts from June and ends up in December same year. It is conducted through some series of steps regarding performance evaluation and employees are awarded with monetary and non monetary benefits and perks accordingly.
"Step 1. Performance Plan: It is regulated at the beginning of the year (i.e. January). The performance plan form is comprise of sections such as, ongoing duties, the duties employee is performing now, future planned objectives to achieve and HRM development objectives. In this step, employee is supposed to identify what development he/she be needed to perform his/her job more satisfactorily".
"Step 2. Executive Input Form: The input form is filled by executives in the starting of the review year (i.e. June). In which it is being checked whether the goals and objectives set by the employee in the performance plan are being achieved or not. Evaluation at this stage let the employee, a chance to judge his performance on his own set criterion".
"Step 3. Performance Review Form: This step is the last evaluation step performed by SSGC Human Resource Department at the end of the year (i.e. December). Sections mentioned in this form are, name, department, grade, target achieved or not".
And then performance rate is given according to the evaluation. Rating 80 or above means performed extra ordinarily well, rating 66 to 79 means very well performed, rating 51 to 65 means just performed according to expectations, rating 26 to 65 means performance below expectations and Rating below 25 means performance not acceptable or poor performance.
10. "Transfers and Postings": This section is headed and controlled by Mr. Dinesh Mehta and sometimes supervised by Mr. Sattar Shahaani.
There are 6 types of transfer in Sui Southern Gas Company
"Disciplinary transfer": This type of transfer is used by management a to punish an employee who did misconduct. Employee is transferred from proper and suitable place to remote and negligible place in penalty.
"Interdepartmental transfer": In this type, employee is being shifted from one department to another because of an emerging need by a department due to insufficient employee. So employee transferred from one department to another on the required need fulfillment.
"Operational request based transfer": This type is also called "Job Rotation". In this, worker/employee gets an opportunity to do some different and new task which varies from his daily routine task.
"Performance based transfer": This transfer is like motivating employees who work and performed extra ordinarily well. So
Personal request transfer: Transfers made on personal demand due family reasons and health issues. So he/she is being transferred to the most suitable and convenient place desired by an employee.
"Political requisition': In this type, concerned employee get transferred to the department recommended on behalf of political recommendations
General Purpose: General Purpose of my project research is Human Resource Department of Sui Sothern Gas Company and to be well aware with the fact that how the Human Resource Department plays an important role in SSGC. It serves as a backbone of the SSGC because it is the one which is responsible for recruitment process, selecting best employees for the company, giving them training so that they should be productive along with providing them with performance appraisal plan so that they should achieve their target accordingly and focus on Company's future goals, missions and objectives. It has several functions (discussed above). Each function is performed by different sections or sub-departments of Human Resource Department so that SSGC should work smoothly. Such functions of HR Department are:
"Enquiry and Discipline"
"Human Resource Information System (HRIS)"
"Transfers and Postings"
Specific Purpose: Specific Purpose of my project research is Functions of Human Resource Department and to focus only on the functions of Human Resource Department and to see what these functions are used for.
The scope of my study will be limited to only Human Resource Department and its functions at Sui Southern Gas Company. My study research will not go through any other department such as Marketing Department, Finance Department, Production Department, and Customer Service Department etc.
Following are my hypothesis (assumptions) regarding Sui Southern Gas Company:
1. All Human Resource Management work is managed automatically through Human Resource Information System.
2. All employees (including labor) are sent for trainings and workshops for their productivity and advancement of knowledge.
3. Increments and benefits are properly provided to every employee according to their work and conduct
After my findings, I come up with the following answers regarding my above mentioned 3 hypothesis:
1. All work is managed automatically via Human Resource Information System EXCEPT the attendance of SSGC employees. There is a manual attendance system in SSGC. So in my opinion this attendance should also be based on automation computer system.
2. No educational training is provided to labor employees. So in my opinion, labor employees should be sent for educational training and workshops because since they are illiterate, so educational training will not only improve their knowledge and performance/productivity but also their attitude towards their peers and employers.
3. In my hypothesis, all employees receive increments and benefits BUT this hypothesis is totally wrong. Increments and benefits are given on the basis of the seniority level and mostly to the senior employees in SSGC.
My research for topic is unique and will help students of BBA to have an advanced knowledge regarding Human Resource Management of Sui Southern Gas Company. Students will also be able to know the functions of Human Resource Department and how these functions work for the betterment of SSGC. Moreover, they will be aware of the policies and code of conduct maintained by SSGC regarding recruitment, leave management, transfers & postings, performance appraisal, labor union and misconduct etc. So, this will give them an overall idea of Sui Southern Gas Company (SSGC) and even this will be beneficial if they want to do their internship from SSGC in Human Resource Department because my research study is all about Human Resource Department and functions performed by Human Resource Department.
Observations: During my project research at Sui Southern Gas Company (SSGC), I observed numerous following things:
Proper Industrial relations with Labor Union named as "People's Labor Association" (PLA) of SSGC. Head of PLA negotiates properly over "charter of demands" with the management.
No misconduct behavior or inappropriate attitude of labors/workers with their employees/ supervisors because of the strict policies and codes of conduct against misconduct behavior of an employee.
Proper way of dealing with complaints regarding any issue under the section of "Grievance Management", headed by Mr. Waqaar Sheikh.
Proper record of an employee, who has been recruited, sent on training/workshop, transferred to other branch, dismissed or even employee on leave through Human Resource Information System (HRIS). But the only thing, which was manually tracked, was daily employee attendance.
Last, but not the least, I observed that there was no proper prayer room or pray area at all at SSGC Head Office Karachi. So in my opinion, there should be separate prayer rooms for ladies and gents so that they can properly perform their prayers.
Structured Interview: I have asked several questions from the Deputy General Manager (HR), Mr. Shahbaz Islam and I thank to him for taking out his precious time to answer my questions.
Q1.What is the Mission Statement of HR Department of SSGC?
ANS: To proactively enforce best HR practices; maintain transparency in recruitment, compensation and benefits, career/succession planning undertake initiatives for communication, coaching, counseling and mentoring, enhance personal effectiveness, encourage creativity, team culture, ownership of strategic goals and seeing positive attitude towards change initiative to gear for organizational growth.
Q2. What is the Vision Statement of HR Department of SSGC?
ANS: Committed to be strategic business partner inculcating a culture leading to efficiency. Human Resource Management, innovative ideas, policies, processes and self-renewal of human capital through effective training and organizational development initiatives to attain professional and motivated workforce.
Q3. Is Performance Appraisal System the only method to evaluate the performance?
ANS: No! There are other methods that evaluate performance, such as; sometimes, employees are delegated authority to complete the task on their own and manage their time and premises accordingly. So this will not only motivate them but also make them evaluate their performance according to the completion of work on their own. Another method is "Bonus System", in which the more employees work for more than their working hours, the more pay they will receive. So in this way, employees perform more and evaluate that how much they worked extra to get bonus.
Q4: Why there is a manual attendance system instead of having all other work automated?
ANS: We are working on it and it will soon be converted to an automatic thumb detection attendance system where every employee will be asked to put his/her thumb on attendance scanner and will be marked "present at work" if his/her thumb detected and matched. And even that data will be connected with Human Resource Information System (HRIS). So in this way, employees' attendance record will be maintained.
Q5: How you usually motivate employees?
ANS: We usually motivate our employees with some following 3 factors:
"Laissez-faire policy": This policy means that let employees decide that how they should do their work and what resources they will utilize is totally depends on employees.
"Training and workshops": To let them aware with the advanced technologies and methods so that they should be more efficient.
"Non-Financial Benefits": We offer most of the time non-financial benefit s to our prestigious employees such as, giving them award on extra ordinary performance, 2 days leave grant, celebrating their birthdays and even sometimes, we grant living expense and primary education expense of children to our worthy and loyal employees.
Definition of Key Terms
"Human Resource Department of Sui Southern Gas Company (Head Office"
Human Resource: It is the set of individuals who make up the" workforce" of an organization. It is the resource which manages all other resources. It is like a backbone of any organization. It is responsible for employees' relations, rights, recruiting, termination, compensation and benefits as well as dealing with union relations and employee's laws and codes of disciplines.
Department: Specialized functional area within an organization or a division, such as "Accounts Department, Marketing Department, Human Resource Department, Sales Department" etc. Generally every department has its own manager and chain of command.
Sui Sothern Gas Company: It is abbreviated as SSGC, and it is Pakistan's leading merged company having an exclusive sale and distribution license in the province of Sindh and Balochistan. It has a series of mergers and most of the shares are owned by Pakistan Government. It provides Gas to domestic as well as industrial users.
Head Office: It is the main office of an organization where the most of the administrative work is done and where Board of Directors meets.
My project research at Sui Southern Gas Company was a pleasant experience. I have learned a lot regarding Sui Southern Gas Company's internal system along with Human Resource Department and its functions. All the concerned employees (managers) of sub-departments of Human Resource Department were very cooperative. They not only guided me regarding their respective sub-departments, (such as, Recruitment process, Leave management, Performance appraisal etc), but also helped me to view things from a wider horizon. Therefore, this project research at Sui Southern Gas Company (Head Office), Karachi, helped me gain an overall experience which will prove to make me work and understand Human Resource better than before.