INTERNSHIP REPORT

ON

SUI NORTHERN GAS PIPELINES Ltd.

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Submitted by: Abdul Hannan Bhatti

Roll number : F15 – 1086

Submitted to: Mr. Ahsan Ali Ashraf

Submitted in partial fulfillment of the requirements

For the degree of
Bachelor of Business Administration (HRM)

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At

LAHORE LEADS UNIVERSITY

Lahore, Pakistan
 LAHORE LEADS UNIVERSITY

It is hereby certified that the report has been thoroughly and carefully read and Recommended to
the Lead Business School for acceptance of Final Internship Report by Abdul Hannan Bhatti,
F15 - 1086. Session (Sept. 2015 to May 2019), Morning, in partial fulfillment of the
requirements for the degree of Bachelor of Business Administration of Lahore Leads University.

Dated:

Supervisor Name __________________________

Supervisor Signature __________________________

Panel member Name __________________________

Panel member Signature __________________________

Head of Department __________________________

 LETTER OF TRANSMITTAL

Head of Leads Business School,

Lahore Leads University,

Lahore.

Respected Sir,

It is to present you the internship report which is executed at SUI NORTHERN GAS PIPELINES
Ltd. as required by the university as a degree requirement for BBA program.

This report has been prepared in accordance with the guidelines issued by the department. It is the
result of my first professional experience. The report is practical application of whatever I have
studied as a student of BBA in Lahore Leads University. In this report, I have covered the
introduction of SUI NORTHERN GAS PIPELINES Ltd., detail of my working and learning in the
HR Department, impact of internship on career in future. I worked on different assignments given to
me. I feel that this experience would be of great help in future.

Sincerely,

Abdul Hannan Bhatti

 ACKNOWLEDGEMENT

I am very thankful to “ALMIGHTY ALLAH” the most beneficent, the most merciful who has
given me the strength to complete this task and with the deepest gratitude and warmest affection.

I am thankful to Mr. Azhar Abbas, Deputy Chief who guided me throughout my internship morally
and ethically and I got a chance to learn a lot from him.

I acknowledge my learnings of internship to Mam Rabia Iftikhar, Executive Officer; who gave me
a lot of knowledge about Human Resource and the policies implied by the company. Without her
guidance it would not be easy for me to accomplish my internship successfully.

Furthermore, I am indebted to the staff of SNGPL, from where I have gained much experience
regarding operations and workings of the Company and its Human Resource Department.

Last but not the least I convey my credit and commendation to my institute, Lahore Leads
University, Management faculty, without whose support and guidance it would be difficult for me
to achieve this task successfully.

Abdul Hannan Bhatti

 DEDICATION

Thanks to Allah Almighty, who made me, grew me and produced such abilities which enabled me to
produce such report. I dedicate my little work to my parents and teachers. Both have great
contribution in making for what I am today. Moreover I also dedicate my effort to my supervisors
who were really supportive this while and my peers of course who are live institutions for me.
Summing up, this projection is an amalgam of all the personalities’ contribution, as mentioned
above, and I am really grateful to them for their support.
 EXECUTIVE SUMMARY

Internship is a golden opportunity for the students of management sciences to improve the skill,
knowledge of management in the practical environment of different organizations. The main purpose
of this report is to fulfill the requirement of BBA (Hons.) course. In this perspective, I completed my
Internship at Sui Northern Gas Pipelines Limited, Lahore Head Office. This report contains very
important information about the Human Resource and its functioning in SNGPL. This report
contains all the information of my first professional experience.

During my internship period I found everybody very much cooperative. I worked in 4 different
sections of human resource department of the organization. This report is the outcome of my
observations and experience during the six-week stay at the Organization. I got the opportunity to
watch the operations and working environment of the organization meticulously. The source of my
information for the preparation of this report includes verbal discussions with organization staff and
reading material based on the policies implied in the Human Resource department of the company.
Besides these oral guidance and information deliverance I was also subjected to some practical
assignments like as to deal with HR records in ORACLE system with respect to Key Performance
Indicators.

I really value this learning projection of mine in a dynamic organization like Sui Northern Gas
Pipelines Limited, proved handy in refining my personality and skill set. . I am thankful to all the
staff of SNGPL, because without their cooperation and guidance, I couldn’t have improved myself.
 TABLE OF CONTENTS

CHAPTER # 1 INTRODUCTION

1.1 Company Profile 11

1.2 Establishment of OGRA . 11

1.3 Vision Statement 12

1.4 Mission Statement 12,

1.5 Corporate strategy & Core Values 12

1.6 Awards, Objectives & Location 13

1.7 Core Businesses & Competitive Analysis 14

CHAPTER # 2 BUSINESS OPERATIONS

2.1 Company Overview 16

2.1.1 Regional establishment 16

2.1.2 Administrative structure 16

2.1.3 Organizational Structure 17

2.2 Organizational network 18

2.3 Departments of SNGPL 18

CHAPTER # 3 BUSINESS ANALYSIS

3.1 Products & Services 24

3.2 SWOT Analysis 25

3.3 PEST Analysis 27

CHAPTER # 4 LEARNING AS AN INTERN

4.1 Human Resource Department 29

4.2 Executive Section 30

4.3 Subordinate Section 34

4.4 Casual Section 37

4.5 Legal Inquiries Section 39

4.6 Assignments I Handled 40

CHAPTER # 5 RECOMMENDATIONS & CONCLUSION

5.1 Recommendations 43

5.2 Conclusion 44

References 45
 CHAPTER 1

INTRODUCTION
  1.1 COMPANY PROFILE

Sui Northern Gas Pipelines Limited (SNGPL) was incorporated as a private limited Company in
1963 and converted into a public limited company in January 1964 under the Companies Act 1913,
now The Companies Act 2017, and is listed on the Pakistan Stock Exchange (PSX).

Sui Northern Gas Pipelines Limited (SNGPL) is the largest integrated gas company serving more
than 5.3 million consumers in North Central Pakistan through an extensive network in Punjab,
Khyber Pakhtunkhwa and Azad Jammu & Kashmir. The Company has over 50 years of experience
in operation and maintenance of high-pressure gas transmission and distribution systems. It has also
expanded its activities as Engineering, Procurement and Construction (EPC) Contractor to undertake
the planning, designing and construction of pipelines, both for itself and other organizations.

SNGPL has over 5.3 million consumers comprising Commercial, Domestic, General Industry, and
Fertilizer Power & Cement Sectors. Annual gas sales to the consumers were 597,056.

 1.2 ESTABLISHMENT OF OGRA

The federal government promulgated the natural gas regulatory authority ordinance in January 2000
based on the bill already passed by the National Assembly in 1999. Under the ordinance, natural gas
regulatory authority ordinance was established to regulate the transmission, distribution and sale of
natural gas, including determination of gas tariffs of the companies with the prime objective of
safeguarding the consumer's interest. Main gas companies working in Pakistan under the oil & gas
regulatory authority namely:

1. Sui Northern Gas Pipelines Limited.
2. Sui Southern Gas Company Limited.
3. Oil and Gas Development Company Limited (Such Gas Field).
4. Oil and Gas Development Company Limited (Bhal Syedan Field).
5. Oil and Gas Development Company Limited (Nandpur & Panjpir Fields).
6. Central Power Generation Company Limited.

 1.3 VISION STATEMENT

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To be the leading integrated natural gas provider in the region seeking to improve the quality of life
of our customers and achieve maximum benefit for our stakeholders by providing an uninterrupted
and environment friendly energy resource.

 1.4 MISSION STATEMENT

A commitment to deliver natural gas to all door steps in our chosen areas through continuous
expansion of our network, by optimally employing technological, human and organizational
resources, best practices and high ethical standards.

 1.5 CORPORATE STRATEGY

To expand gas distribution networking throughout the country by increasing profitability and
customer satisfaction.

Core values:

SNGPL has following core values which are completely embedded in their culture:

 Commitment
We are committed to our vision, mission, and to creating and delivering
stakeholder value. 
 Courtesy
We are courteous - with our customers, stakeholders and towards each other and
encourage open communication. 
 Competence
We are competent and strive to continuously develop and improve our skills
and  business practices.
 Responsibility
We are responsible as individuals and as teams for our work and our actions. We
welcome scrutiny, and we hold ourselves accountable.
 Integrity
We have integrity as individuals and as teams.

 1.6 AWARDS (HSE & CSR)

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In recognition of Best Practices in field of HSE and CSR activities, SNGPL has won following
Awards:

• Corporate Social Responsibility Award – 2017

• 13th Annual Environment Excellence Award – 2016

Objectives:

SNGPL is committed for:

• Enhancement of System Capacity.

• Expansion of Transmission and Distribution Network.

• Increase in Gas Sales

• Rehabilitation of Transmission and Distribution Network.

• Reduction in Unaccounted for Gas Losses.

• Improvement in Profitability.

• Improvement in Consumer Services.

• Human Resource Development.

Location

Head Office

Gas House,

21-Kashmir Road, Lahore (042)

Ph.: 92-42-9201451-60, 9201419

Fax: 92-42-9201369, 9201302

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  1.7 CORE BUSINESS

1. Distribution System

2. Gas Network

3. Major Gas Fields

4. Transmission System

Competitive Analysis:

BCG Matrix

SNGPL is at “STAR” stage, as it has no competitor. It has duopoly in the country, i.e. SNGPL and
SSGC (SUI Southern Gas Company) are the only gas providers in the country.

1.7.1 HSE Policy:

HSE stands for Health, Safety and Environment that point out the focus of the company on these
major issues of not only its employees but the society at large.

Sui Northern Gas Pipelines Limited will ensure that

 The health of its employees, its consumers and its contractors is protected.

 All its activities are carried out safely.

 Environmental performance meets legislative requirements.

 There is continuous improvement in HSE performance.

1.7.2 Market Structure

The company is enjoying “DI-OPOLY” in the market as they are having just two corporations in the
entire country and don’t have any competitors neither direct nor indirect.

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 CHAPTER 2

BUSINESS OPERATIONS

15
  2.1 COMPANY OVERVIEW
1. Regional Establishment
2. Administrative Structure
3. Organizational Structure

2.1.1 Regional Establishment:

Sui Northern Gas Pipelines Limited was incorporated as a private company in June 1963 with the
objective of transmission and distribution of natural gas in the province of Punjab, KPK and Federal
Capital area. It was later converted into a public limited company in January 1964 under the
Companies Act 1913(Now 2017), and is listed on Pakistan Stock Exchange.

In Sui Northern Gas Pipelines, 3 major departments are working:

1. Transmission
2. Distribution
3. Projects

2.1.2 Administrative Structure:

Policy guidelines and overall control is vested in the elected board of directors as provided for in
the Companies Ordinance 1984(now Companies Act 2017).

MEMBERS OF BOARD OF DIRECTORS

Mr. M. Saeed Mehdi Chairman

Ms. Uzma Adil Managing Director
Mr. Arshad Mirza Director
Mr. Ahmad Aqeel Director
Mr. Manzoor Ahmed Director
Mr. Mian Mishbah-ur
Director
Rehman

2.1.3 Organizational Structure:

Head office of the company is situated in Lahore, chairman, managing director, other departmental
senior general managers and all directors offices are there. They control all the areas offices from
16
there. All the financial and non-financial matters i.e. credit from bank casting budgeting, allocation
of funds matter, taxes, training to employees etc., are made under the supervision of the chief
financial officer. Company has the separate internal audit department. The audit department checks
that the work is being done as per
company policies, departmental procedures. The audit department periodically conducts the audit as
per systemized channel of different departments.

Board of directors is elected by the shareholders of the company. The managing director and the
chief executive officer of the company are working under umbrella of board of directors. The board
of directors made the decision for the entire satisfaction of the investors as well as the consumer.
Other than the senior general managers are working under the deputy managing director who directly

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reports to the managing director and chief executive officer.

 2.2 ORGANIZATIONAL NETWORK

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  2.3 DEPARTMENTS OF SNGPL

SNGPL has the following departments:

2.3.1 Central Shared Support:

WASEEM AHMAD

Senior General Manager

Central Shared Support is a group of departments comprising of Procurement, Stores, Law and Civil
Construction. The group provides essential services for the smooth functioning of all the technical
and non-technical departments in the accomplishment of their assigned roles.

2.3.2 Engineering Support:

EJAZ AHMAD CHAUDHRY

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Senior General Manager

ES provides all technical services / expertise required by the execution departments for undertaking
their assigned jobs in accordance with applicable international codes & standards and organizes the
activities of departments under its control, held upon

Planning & Development Department deals with planning, survey and design of new transmission
pipeline system,

Corrosion Control Department is responsible for corrosion protection of underground

infrastructure from corrosion and rust by applying catholic protection.

LNG-LPG Department is pursuing to undertake LNG & LPG projects on the initiative of
Government of Pakistan to reduce the energy crisis.

2.3.3 Corporate Affairs:

WAJIHA ANWAR

Company Secretary

Corporate Affairs is a statutory department which was established in 1964 with the inception of the
Company. Formerly it was known as Shares Department. It is responsible for arranging Board as
well as shareholders meetings

2.3.4 Finance:

SAGHIR-UL-HASSAN KHAN

Chief Financial Officer

Finance

Finance Department is responsible for setting up financial strategy including investments and
financial plans to support business operations.

Billing

Consumer satisfaction is one of the missions of the Company. The Billing Department of
20
SNGPL has been working to achieve this mission by technological up gradation thus ensuring error
free billing to the consumers

Accounts

The preparation of quarterly, six monthly and annual Accounts for the approval of Board and
Registrar

2.3.5 Human Resource:

AZAM KHAN WAZIR

Senior General Manager

HR Department is manned by highly devoted professionals led by their seniors who are making
untiring efforts aimed at the growth, sustainability and progress of the company. HR department is
fully geared to transform SNGPL into “Employer of Choice” which nurtures talent through its
enabling culture. For this, HR proactively prepares and implements system hinged on merit based
recruitment, equitable policies for comparative compensation packages and a need based skill
enhancement program to further improve the knowledge base of staff and provide them with
professional development opportunities by exposing them to various kinds of cross functional
trainings, management courses, workshops, technical courses and seminars both at home and abroad.

2.3.6 IT/MIS

MUHAMMAD RIAZ

General Manager

Function of IT/MIS department is to assist in the delivery of quality IT products and services by
managing the enterprise Data Center and Disaster Recovery Center. The department is responsible
for Enterprise Resource Planning, Customer Care & Billing, Email, Web Servers and network
connectivity

2.3.7 Administration:

ASHRAF NADEEM

21
General Manager

The aim of the department is to create and maintain a disciplined work environment, Conducive for
smooth/streamlined operations of the Company and secondly to ensure that an auspicious
environment prevails which maintains authority while keeping the employee’s motivated.

2.3.8 Metering:

SHAHZAD IQBAL LAUN

General Manager

Metering Department has four inspection, repairing and maintenance Meter Shops located at Lahore,
Multan, Islamabad & Faisalabad. These Meter Shops are responsible for inspection, repair,
maintenance, calibration, flow proving and configuration of measurement/communication gadgets
{i.e. meters, Electronic Volume Correctors (EVCs) and modems (GSM/GPRS)} being installed in
Distribution System

2.3.9 Quality Assurance:

ALI AHMAD

General Manager

Quality Assurance Department plans and carries out technical audits to verify compliance and assess
adequacy of quality system and ensures that corrective action is taken against responsible personnel
on reported non-conformance.

2.3.10 Sales:

SHAHID MAQSUD

General Manager

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Sales Department being the interface of the Company endeavors to provide services to the
prospective and existing consumers of SNGPL, while maintaining integrity and practicing ethical
standards.

2.3.11 Stores:

ABDUL RAUF

General Manager

Stores Department is a service as well as physical activity department, is catering the functions of
material and inventory control and management The Department stores materials procured by the
indenting departments through Procurement Department in line with their planned operational and
development activities to achieve the overall Company targets.

2.3.12 Transmission:

ABDUL AHAD SHAIKH

Senior General Manager

Like other transmission and distribution companies in the world, Transmission department of
SNGPL is the heart of the Company. The function of Transmission department is to receive gas from
the producers by utilizing optimum operation of compression facilities.

2.3.13 Projects:

SIBGHATULLAH SURI

Senior General Manager

Sui Northern Gas Pipelines Limited (SNGPL) stands as the biggest gas utility Company of Pakistan
with highly trained and dedicated work force led by a dynamic management and hardworking
leadership. Since inception, the construction work was carried out by foreign companies. Projects
department was established in 1973 to facilitate in house engineering, procurement and construction
of high pressure transmission line and medium to low pressure distribution network including
measurement and regulating stations.

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 CHAPTER 3

BUSINESS ANALYSIS

24
  3.1 PRODUCTS OF SNGPL

Natural Gas:

Natural gas, as the name implies, is found in gaseous form naturally, underground at varying depths
and geographical formations. It is one of the most abundant energy sources in Pakistan, and because
it is produced domestically, it is not subject to foreign disruptions of price or supply

LNG in Pakistan

The imported LNG will greatly help in reducing the hardships of consumers due to supply demand
gap in natural gas.

Liquid Petroleum Gas (LPG)

It is used for filling cylinders and it is liquid from gas. Before filling the cylinders, the gas
temperature is reduced and then fills the cylinders, which are used for domestic purpose, welding
purpose etc.

Compressed Natural Gas (CNG)

Now a day everyone knows about this type of gas. It is used in vehicles. It is filled through
compressed function and fills in specific pressure.

 3.1 SERVICES OF SNGPL

The services being offered are as following:

 Construction of transmission and distribution pipeline networks

 Compressor station design / planning and installation

 Route / site feasibility studies

 Project planning and permissions

 Surveying, Mapping, Engineering & design, network planning

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  3.2 SWOT ANALYSIS
Strengths:

1. Government Organization
SNGPL is a Government owned organization and sole supplier of Gas throughout the whole
country. Government organizations are less vulnerable to hurdles, which are faced by non-
government organizations. Being a Government organization, SNGPL is maintaining a superior
position in front of other by smaller Gas distributers.

2. Consistent Quality
Unlike other Government organization, where corruption can be seen clearly, SNGPL has
maintained high moral standards. Thus SNGPL has maintained a strict quality standard whether it
comes to services or distribution.

3. Sustained growth rate of annual sales turnover

Demand of Gas is ever increasing in Pakistan, whether it comes to domestic as well as commercial
customers. Such consistent growth in the customer demands leads to high annual sales turnover.

4. Excellent market image in the local and international market

SNGPL is a worthy organization not in the sense of morality but also in the sense of perceived
image nationally and internationally.

5. Highly qualified management

When it comes to management, SNGPL is having one of the best management in entire public sector
organization. Management consists of highly educated and well trained human resource.

6. Skilled labor
Labor in SNGPL is having such a vast experience, and training which makes work more efficient
and effective. Thus enhanced performance can be expected.

Weaknesses:

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 1. De-motivated staff
Due to slow decision making process de-motivation in employees has been on consistent rise.

2. Less promotional activities

SNGPL is spending lesser on marketing and promotional activities. Such activities ultimate helps
organization to develop perception of responsibilities and trust within customers.

3. Non-corporative culture
Being a Government organization the culture is contributing towards stereotypical nature of the
management. Such behaviors of the employees, leads towards leg pulling, non-helping, non-growing
and non-cooperative culture within organization

Opportunities:

1. Can expand its division such as finding new minerals

Government presently considers foreign companies to conduct search operations for minerals in
Pakistan. SNGPL is having high potential in this regard.

2. Can reduce the cost by proper utilization of resources

Resource availability to SNGPL is at high rate, but efficient use is not in the books of staff. If
SNGPL can make proper use of resources available cost reduction can be made possible

Threats:

1. New plans to take gas from outside the country

In taking gas from neighboring can be partial threats, because once gas enters in Pakistani
premises its distribution would again become the responsibility of SNGPL.

2. Political instability
Political instability creates lack of confidence not only in Governmental organizations but also
shakes private organizations. Political instability can be termed as an external threat to SNGPL

 3.3 PESTEL ANALYSIS

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 Political and legal factor

There are industrial laws for the protection of labor rights. In Sui northern gas pipeline there is labor
union and there law will be directly affecting the practices in the company for the determination of
salaries and other fringe benefits.

Economic factor
Company is financed by heavy debt. So any change in interest rate would be affecting
company profitability positively or negatively. Today the interest rate is low that defiantly
positive effect over the company policy.

Social factor
Social issues are becoming more anymore important for the organization. SNGPL is also no
exception. They have taking following steps to comply with social issues.
They have initiated for the certification of ISO-1400; for the purpose a pipeline of 5 km has
been laid for the disposable of treated refinery effluent which eventually discharges of the
river INDUS.

Technological factors
Sui Northern Gas Pipeline has got the state of art technology and this is the competitive
advantage of the company. This state of art technology is fully integrated across the refinery
approved the common and consistent man machine interface to the operator.

Environmental factors
Proper training of employees is available, whether employee belongs to operational or
technical staff training contributes towards performance of the employees. Employees are
still feeling that benefits and perks available to them are not enough, as compared to other
organization. Thus contributing towards poor employee motivation and performance but
being worked upon for improvement.

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 CHAPTER 4

LEARNING AS AN INTERN

29
  4.1 HUMAN RESOURSE DEPARTMENT

I have done internship in the Human Resource Department, Head Office and the information,
knowledge, processing and helping material I was provided with about the functioning and dealings
of the department is summarized as week to week synopsis below.

Human Resource department of Sui Northern Gas Pipelines Limited (SNGPL) is divided into
following four sections based on the functions performed by each department and the type of
employees dealt by them:

 Executive
 Subordinate/Industrial Relations
 Casual/Contractual
 Legal

Each section is headed by Head of Department who reports to the Chief Officer HR, who then report
all matters to GM and SGM (HR). I was rotated in all the sections.

I was welcomed well and had a pleasant and warm introduction session with the staff. I had an
interview with chief officer and General Manager HR which was brief but staunch in its processing.
I’m glad as I held the grounds very well.

Not to be distinctive, you know, orientation for new comers is like a trend of today so I was also put
to experience it by my allotted supervisor Mam Rabia Iftikhar (EO-HR, grade IV) found her a very
down to earth and supportive kind of personality. I found myself quite blend in that HR section the
very first day. My prior studies aided me a lot to understand this practical version of it.

I was made familiar with status & worth of SNGPL, Vision and Mission. Values of Company,
Organizational structure & culture, policies and other such corporate identities. She handed me over
my internship schedule according to which I was going to be rotated all across the HR section
starting from executive establishment. She gave me handy information regarding the HRM as
initials.

(WEEK 1 & 2)

 4.2 EXECUTIVE SECTION

30
My first two weeks were spent in this section as in introductions, briefings and learnings. I found the
staff very supportive and thus I extracted what I could extract about my field.

Recruitment process = Mr Azhar Abbas (SO –HR, grade-VI)

Different policies = Mr Ali Kamran (EO-HR, grade-V)

Disciplinary projections = Mr Adeel (EO-HR, grade IV)

4.2.1 Employment Policy:

SNGPL is known for its batch hiring and that were to be conducted after elections, therefore I hadn’t
got the chance to witness a live interview yet I was subjected to a mock one like as we did in the
university. Recruitment is basically done through Advertisement which is followed by Entry Test
and later on Interview. Executives are hired on the probation period of 1 year.

4.2.2 Recruitment Classification:

The vacant spaces in the executive section of Human Resource department are filled from following
four sources:

1. Entry level Recruitment

2. Lateral Recruitment
3. Outsourced Recruitment
4. Ex- Staff recruitment

4.2.3 Recruitment Process:

Recruitment policy of executives at per HR executives manual includes four simple steps of hiring
executives:

1. Requisition
2. Resourcing
3. Interview and Selection
4. Appointment

4.2.4 Exit Formalities:

31
 1. Exit Interviews
2. Employment Certificate
3. No Objection Certificate (NOC)
4. Clearance of Dues

Mr Ali Kamran (EO-HR) (grade-V) aided to my findings focusing on certain policies. He let me feel
the difference between a private and govt. entity via pounding on extreme influence of hierarchical
structure and chain of command as primary trait of the latter one and how these policies are
executed under the spell of above mentioned

4.2.5 Internship Programs:

SNGPL offers 12 months internship program both technical and managerial however the duration of
trendy internships vary as in 6 or 8 weeks. Internship programs are executed without any financial
liability on any side. Internship certificates are awarded to internees after the submission of
internship report.

4.2.6 Compensation Policy:

Salary is paid to the executives in Arrears.

Compensations apart from salary:

1. Performance Award
2. Long Service Award
3. Salary Advances

4.2.7 Leave Policy:

Following types of leaves are sanctioned to the executives working in the company:

Categories Entitlement
Privilege 36 days

32
 Sick 30 days
Maternity 90 days
Hajj 45 days
Study 2 years
Leave without pay 45 days

4.2.8 Medical Policy:

Eligibility:

All the executives working in the company and their family members are covered under the lifetime
medical facility provided by the company. Family members include Parents, Spouse and unmarried
dependent children up to the age of 25. Medical facility is provided to the family members even after
the death of the employee.

SNGPL provides following four types of entitlements for medical coverages:

1. Consultation
2. Medicine
3. Hospitalization
4. Maternity

4.2.9 Disciplinary Policy:

Disciplinary Action is taken by the company against 3 types of malpractices by the employees which
are as follows:

1. Inadequate Performance
2. Tardiness and Absenteeism
3. Misconduct

4.2.10 Disciplinary Procedure:

33
I spent the two days with Mr Adeel and he briefed me about the discipline enquiries and staff
litigations. I am in debt of him as he made me understood the step by step process of a legal action
taken against a complaint or case.

He not only just confined me to narrative understandings but also shared a couple of such cases
(Medical reimbursements) with their complete documents including notes, memorandums, advisory
notes, exoneration letters, charge sheets etc. and showed me how this is done.

The four step disciplinary procedure is as follows:

1. Oral Warning
2. Written Warning
3. Investigation
4. Disciplinary Action

4.2.11 Performance Management Policy:

A Performance management policy is devised by the Human Resource Management department of

the company to evaluate the employee’s performance on the basis of their objectives and
expectations.

Rating System:

5 Outstanding
4 Exceeding Assigned Targets
3 Achieving Assigned Targets
2 Failing to Achieve Assigned Targets
1 Unsatisfactory Performance

4.2.12 Human Resource Management Tools:

SNGPL implies certain human resource tools for its employees which are as follows:

1. Job Description Documents

2. Interviewing guidelines
3. Orientation Programs

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 4. Job Families
5. Guidelines for continuous performance improvement

4.2.13 Retirement policy:

Retirement Schemes:

SNGPL has certain schemes to offer its retiring employees in reward of their services for the
company. The retirement schemes offered by SNGPL are as follows:

1. Provident Fund scheme

2. Pension Fund Scheme
3. Gratuity Scheme
4. Selective Voluntary Severance Scheme (SVSS)
5. Other Benefits

(WEEK 3 & 4)
 4.3 SUBORDINATE/ IR SECTION

The next two weeks were spent with the SUBORDINATES. The policies and rules and regulations
implied on the subordinates are somehow common and somehow different as well in comparison
with executive section of the employees.

Different policies = Mr Burhan (EO-HR, grade III)

Facilities & grants = Mr Arshad (EO-HR, grade III)

CBA projections = Mr Imran Hafiz (Supervisor, grade VII)

Loan Mang. & Scholarships = Mr MAAZ (GDA, grade V)

4.3.1 Leave Policy:

SNGPL offers following types of leaves to the subordinates working for the company;

1. Privilege leaves are allowed for 30 days Sick leaves are allowed for 30 days a year.
2. Iddat leave is allowed for 130days for females.

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 3. Maternity leave is allowed for 90 days for females.
4. Hajj leave is allowed for 60 days but only once in the full service of the employee.
5. Umra leave is allowed for 30 days and it is adjusted against the special Privilege leave
Medical leave can be accrued for 5 years maximum accumulation can be of 90 days.

4.3.2 Medical policy:

Free medical facility is offered by the company not only to its employees but their families too

4.3.3 Bonus:

The company offers two types of bonuses to its employees.

1. Statutory Bonus = Gross Salary – 10% provident fund

2. Non statutory bonus = basic salary + CLA + Add. Adhoc Relief

4.3.4 Free Gas Facility:

Company provides free gas facility to its subordinate class of employees for lifetime. The free gas
facility is provided up to 5HM3 costing Rs. 7500 based on 30 days billing.

4.3.5 Scholarship:

SNGPL provides the subordinates with the facility of scholarships for their children. In a calendar
year, 80 such scholarships are provided to the subordinates amounting Rs. 5000 per month and
admission fee up to Rs. 30,000 is also provided along with monthly scholarship.

4.3.6 Blood Relation Hiring:

Blood relation hiring is internal hiring, No job posting in the newspaper. Notice of blood

Relation hiring is displayed in Union office or at regional offices. In case of blood relation

Quota, if the subordinate employee does not have any children, his/ her brother or sister may be
considered if he served company for minimum 10 years.

4.3.7 CBA Agreement:

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CBA agreement between union leaders and management is refreshed after 2 years interim period.
Every CBA and Board of Directors agreement are considered by law. The most critical part of CBA
agreement is the increase in the salary of subordinate after 2 years. In this current year, a rise of 35%
in basic salary of subordinate employee is made.

4.3.8 Up gradation/ down gradation:

Promotion and de-gradation of subordinate employee’s is done in IR section. For up gradation of

employee, there is certain parking period for each grade which employee has to serve. Improvement
in education reduces the parking period for up gradation of employee. Down gradation is usually rare
in the organization but employee can be degraded on legal inquiry that leads to punishment.

4.3.9 Employees Welfare Loan:

Employees Welfare loan is provided to such subordinates of the company who has completed 6 years
of service for the company. On yearly basis, 425 employee’s welfare loans are provided to the
subordinates. Employees Welfare loan can be provided up to the amount of Rs. 800,000 and the
company charges minor rate of markup on this loan which is very less than bank markup rate. The
repayment of this loan is done in the form of deductions from the salary of the subordinate in the
maximum period of 10 years.

4.3.10 Transfers:

There are three sources of transfers at SNGPL:

 Upon Personal Request

 On Operations Requirement
 Upon Executives Recommendations

In case of subordinate employees, it is also done according CBA requirements. Managing Director is
the ultimate competent authority for the approval of any change.

4.3.11Apprenticeship Training:

Apart from executives and subordinates the company employees personnel on apprenticeship.
According to the eligibility criteria specified by the company, apprentices are hired by the company
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aging between 15 to 20 years with a minimum qualification of matriculation. Apprentices are hired
through a written test.

Stipend:

Apprentices are hired for a maximum period of 3 years. The stipend of the apprentices is different for
the all the three years. Medical facility is also provided to the apprentices but not to their families as
long as they work for the company.

(WEEK 5)

 4.4 CASUAL & CONTRACTUAL SECTION

The main function of this section is the hiring of casual employees through third party. These
employees are hired on daily wages. Specific wage rates are allocated to different categories of
casual employees.

Hiring Scenario = Mr Bilal Murtaza (EO-HR, grade V)

Functions = Mr Shafiq Qasuri (Sr. Superintendent, grade IX)

4.4.1 Hiring through Application

In this type of contract, the applications received for the contractual commitment are entertained.
These applications mainly involving references are considered by the approving authority.

4.4.2 Hiring through Company’s Approved Contractor

Company mostly asked their approved contractor to hire casual employee on their behalf. The
concerned department sends their requirement of casual employee to this section.

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These requests are further communicated to approve contractor to fulfill the need of casual
employment. Wage rate for the contractual employees hired by both of the ways is fixed by the
company i.e. Rs. 650. Contractual employees are hired on No Work No Pay Basis.

4.4.3 Types of Temporary Employments:

There are 5 categories of employees working on temporary and contractual basis in the company
namely:

1. Contractual Executives for 6 months.

2. Contractual Subordinates for minimum 3 months.
3. Casual for 89 days
4. Man days for the period as and when required.
5. Badli (hired at some other worker’s place for a limited time period)

4.4.4 Functions:

The basic functions performed by the casual and contractual engagement section are listed down:

 Assist in devising new policies for engagement of temporary manpower on company – wide
basis.
 Hiring of consultants for various assignments related to Human Resource.
 To respond to Ministry of Petroleum and Natural Resources and provide necessary
information after clearance from the management and preparation of working papers for
different meetings if so required.
 To respond to National Assembly and Senate questions after collecting data from concerned
sections and forward information to sales department for onward reply

 To process public holidays / Ramzan holidays / Office timings.

 Preparation and monitoring of the budget of Human Resource Department.
 To process casual engagement letters after verification of capping limits.
 Blacklisting of casual staff recommended by different regions.
 Prepare Daily Establishment Reports.
 To receive or dispatch daak of Human Resource department.
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 (WEEK 6)
 4.5 LEGAL INQUIRY SECTION

I was introduced with the staff and briefed upon general aspects of the section in which Labor laws
were of prime importance. Two days were spent in studying the cases of fact finding and disciplinary
actions taken against the accused employees. I was made familiar with the step by step procedure of
its processing

Types of Inquiries = .Mr Naveed (EO-Admin) (grade V)

Real time cases discussions = .Mr Ahsan (EO-Admin) (grade IV)

Types of Inquiries:

There are basically two types of inquiries:

4.5.1 Fact Finding Inquiry:

Following is the procedure carried out in the fact finding inquiry:

 Observe the record

 Interviews of witnesses
 Site checking
 Compilation of report
 Conclusion
 Recommendation

The whole procedure takes time and is carried out very carefully to avoid inconveniencies because it
is quite a sensitive matter to declare someone guilty.

4.5.2 Disciplinary Inquiry:

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This inquiry is totally different than the fact finding inquiry. In this inquiry, guilty employee for
inconvenience is already declared.

Following procedure is carried out in disciplinary inquiries:

 Charge sheet is issued
 Seven days for answer are given
 If the answer is unsatisfactory, the inquiry is initiated
 Management Representative, Enquiry Officer and Accused employee take part in the inquiry
 In case of subordinate employee, any senior from company is appointed as an enquiry officer.
 For an Executive Officer level inquiry, SGM nominate the Enquiry Officer name.
 Inquiries are started after the notion of head office to zonal offices and the respective offices
mostly choose the inquiry teams. If the case is serious, then the head office officials also take
part in the inquiry.

 4.6 ASSIGNMENTS I HANDLED

4.6.1 Computerization of Data in HR records:

I handled the internship applications of the candidates who have applied for internship and also the
ones who have done internships in any of the department, in any office of the company during
current year. I entered the data of the candidates in the Oracle system used by the company and
specified their statuses as well either that was an active assignment or ended assignment.

Apart from above assignments, I handled the medical claim forms with Mr. Azhar Abbas

And the procedure of medical reimbursement according to the medical policy of the company.

4.6.2 Represented the Supervisor:

I was provided with the Human Resource manual of the company whose copy is placed with each
executive of the department.

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I thoroughly studied the whole manual and then briefed it to the new internees as a representative of
my supervisor Mam Rabia, moreover gave them a guided tour of the 4 sections of HR department.

4.6.3 KPI formulations using ORACLE software:

I observed the Key Performance Indicators (KPI’s); a performance management tool used by the
company, of the employees of company working in head office and all the regional offices of the
company in all departments. Within a couple of days Mam Maryam made me at home in producing
the KPIs and computerization of such data in HR records using the ORACLE software. Moreover
receiving and dispatching of related emails to concerned departments of all regions was also included
in the workshop.

Rest of the week was spent in performing the assigned duty (KPI production) i.e. a six hour
dedicated job to take care about and upon which employees are to be awarded the appraisals. Yes,
after that much learning and grabbing information, I was actually granted a practical assignment.
This was a positive advancement and sheer grooming as far as my professional career is concerned.

4.6.4 One day visit of SNGTI:

As for Training and Development as per the call of my primary supervisor Mam Rabia, I was hosted
by Mam Beenish for two days. She briefed me about it in her unique way which I found handy for
my findings. She arranged me a day visit to SNGTI (training institute in kot Lakhpat) where
trainings and certain courses for employees were being run. That was very informative and fruitful
as for grooming w.r.t one on one interactions.

CHAPTER 5

RECOMMENDATIONS AND CONCLUSION

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  5.1 Recommendations
Upon my close observation and experience in HR department of SNGPL, I have tried to point out
certain problems and recommendations for further improvements.

 Employee’s distribution in different departments is the biggest problem. In certain

departments, employees are greater than the required number and in contrast, in certain
departments like HRS and Legal, employees are fewer than the work load. Due to this
unequal distribution, employees have to stay longer on their seats and this costs SNGPL with
higher over time to its employees.

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  Employees get de motivated and tend to leave the organization due to longer parking period
in their promotions and up-gradation. Higher management should launch a benchmark new
criterion to reduce the turnover.
 Legal section is loaded with too much paper work with fewer work forces. HR management
should boost this section with the addition of some experienced professionals in it.
 Privacy of legal enquiries should be improved so that guilty employees find no favorable
means for them before inquiry.
 Subordinate employees should be encouraged to upgrade and improve their study so that they
should get a chance to fall in executives.
 Anti-corruption teams should be strengthen more to control corruption at lower level
employees who are involved in supplying illegal gas connections.
 Extensive paper work should be reduced by introducing new technology to increase
productivity and efficiency of employees.
 Flexible training programs should be introduced to provide subordinates with executive level
trainings to enhance and polish their skills and knowledge.
 HR professionals should develop a culture that encourages employees from all level to
suggest and participate in improving HR functions..
 Few employees are working in their departments for a longer period of time. To increase their
productivity and skills, they should be rotated to different departments for specific period of
time.

 5.2 Conclusion
I spent tremendous six weeks in Sui Northern Gas Pipelines Limited Head Office Lahore. During
these six weeks, I completely felt a part of SNGPL. Even though this is my first professional
experience at any organization, I learned lot of professional experience. I would not hesitate in
declaring SNGPL as a best place for Internees to learn their relevant professional procedure and
functions of their field.

The HR department of SNGPL is very organized, efficient, developed and productive as it is

equipped with highly experienced and qualified professionals. In HR department, this internship
provided me with the golden opportunity to practically implement the bookish concepts I learnt in

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my course. All the employees collaborated well with me to better understand the procedure and
functions performed in different departments and gain maximum experience from my work done
through their feedback.

Besides my relevant concepts studied in BBA course, I learnt some additional things while working
in Industrial Relations and Legal section like CBA affairs or legal inquiries procedure. This short
period of internship polished my skills enough and made me capable of facing the real time
situations in near future. Experience that I gained during this internship is quite valuable and
productive for me.

Conclusively, I am very thankful to ALLAH ALMIGHTY for providing me enough strength to work
in this dynamic organization. I am also thankful to all the staff of SNGPL, because without their
cooperation and guidance, I couldn’t have improved myself.

 References

Websites & Books:

2. www.sngpl.com.pk
3. www.scribd.com
4. www.google.com
5. Annual Report of Financial year 2016-17
6. Human Resource Manual

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Persons:
1. Mr. Azhar Abbas (Deputy Chief Admin)
2. Mam Rabia Iftikhar (Executive Officer HR)
3. Mam Beenish Hakim (Executive Officer HR)
4. Mr. Arshad Malik (Subordinate Officer)
5. Mam Mariam (Subordinate Officer)
6. Mr. Bilal Murtaza (Executive Officer, Casual Section)
7. Mr. Ehsan (Executive Officer, Legal Section)
8. Mr. Naveed ( executive officer, legal section)
9. Mr. Ali Kamran (SO. Grade VI)
10.Mr. Maaz (GDA, grade V)

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