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1. COMPENSATION SYSTEM
OF SNGPL
FINAL PROJECT

2. SUI NOTHERN GAS
PIPENLINES LIMITED
TOPIC
HUMAN RESOURCE
MANAGEMENT
PRACTICES

3. Presented to : Prof.Anwar Arkam
Presented by : Sonia Kanwal
Samina Nawaz
Daraskhan Tariq
Sidra Butt
Farhan Akhter

4. Table of Contents
S.NO TOPICS SLIDE NO.
1 Introduction of the company
2 Corporate Strategy
3 Strategic Objectives
4 Human Resource at Strategic Level
5 Human Resource Committee
6 Human Resource at Functional level
7 Patterns of Job Analysis

5. 8 Job Design
9 Recruitment
10 Selection
11 Employee Retention
12 Orientation
13 Training And Development
14 Performance Appraisal
15 Feed Back System

6. 16 Compensation System
17 Promotions
18 Employee Motivation
19 Conclusion

7. Introduction
Sui Northern Gas Pipelines Limited (SNGPL) is the largest
integrated gas company serving more than 3.4 million
consumers in North Central Pakistan through an extensive
network in Punjab and NWFP.The Company has over 46
years of experience in operation and maintenance of high-
pressure gas transmission and distribution systems. It has
also expanded its activities to undertake the planning,
designing and constructionof pipelines, both for itself and
other organizations. SNGPL operates in a region of the
nation that has a rapidly growing demand for natural gas
and powergeneration due to significant industrial
development.

8. Corporate Strategy
Increase and expand gas
distribution networking
throughout the country by
increasing profitability and
customersatisfaction.

9. SNGPL’S Strategic Objectives
SNGPL is committed for:
 Improve thequalityof service to thecustomerssatisfaction by
implementing OGRA performanceand service standards.
 Play its role in the Country’s economic prosperity by industrial
outreach through gas supply toreducedependabilityon imported
liquid fuelsand to save foreignexchange.
 Endeavour to bring down Unac ounted for Gas (UFG) losses to
internationallyac eptable levels.
 Createawarenessand enforceadherence to Health, Safety &
Environment (HSE) policiesand standards.

10.  Emphasize Human Resource Development (HRD) forquality
work and customersatisfaction.
 Maximizethe saleof availablegas from indigenous sources
byentering into new areas throughdevelopment
and expansion of the requisite infrastructure.
 Introduce policiesand practices leading thecompany from a
monopoly situation into a competitive market, thus
facilitating the impending privatization.
 Improve financial discipline through prudent investment
and borrowing.
 Improve internal controls and risk management toachieve
maximumoperational efficiencyof thesystem.

11. Human Resource at Strategic Level
SNGPL’S Human Resource Strategy
It is very clearly evident from the corporate strategy and
company’sstrategicobjectives thatcompany is right now in
growth mode. Company is expanding its operations
throughout the country. So for meeting its goals and
objectives company is using :
Growth prospector high techentrepreneurial strategy
Company iscurrently engaged in different projectsand HR
Dept is involved in every activity. Company demand
different people fordifferentactivities.

12. Human Resource Committee
The Human Resource Committeecomprisessix non-
executivedirectorsand thechief executive.
Responsibilities
The committee will be responsible for making
recommendations to the board for maintaining :
A sound plan of organization forcompany
An effectiveemployee’sdevelopmentprogramme
Sound compensation, benefits and plans, policies and
practices, designed to attract and retain the caliber of
personnel needed to manage the businesseffectively.

13. Human Resource at functional
Level
Sui Gas Company Limited isengaged in the transmission and
distribution of natural gas in Pakistan. It is also engaged in
the construction of high pressure transmission and low
pressure distribution systems. The Company is involved in
certain activities related to the gas business, including the
purchase and sale of gas meters, and construction contracts
for lying of pipelines. The company is in growth mode and
they are expanding their business day by day by starting new
projects, for starting new projects they required new
employeeswhocan work on theirprojects thatarewhy their
demand is highascompare to thesupply

14. Patterns of Job Analysis
They are in growth mode and expanding their
business, so Job analysis is done when they have to
start new projects; they collect data about the
jobs performed in an organization by performance
m a n a gem en t system, th ey prepare j ob
descriptions according to the new project and
measure the key performance of the employees.
And find outwhere they need new employees.

15. Data collection method:
Company is using following methods:
Interview
Observation
Interview
Employees about a particular job are interviewed
about the specific work activities that the job
comprises. This interview is done by the supervisors
and chief in charges at subordinate level. While
executive level and officer level employees are
interviewed by chiefs and head of the department
sometimes depending upon the nature of the job.

16. Observation
This method is adopted at bluecollar like forwelders,
meterreaders, pipe fitters etc. This observation of
work is done by immediatesupervisors toevaluate the
working capacityand techniqueof theworker.
Report formation
Once the Job analysis information collected , it is
important toplace it intoa form thatwill be useful to
managers and HR Department, forthis purpose
company uses HRM’s Oracle toconvert thedata into
useful information.

17. Review and Updating
Managers and personnel specialists need to review
job description and specification frequently. This
review is done with an eye on the corporate
strategy so company updates its job description
and specifications on annual basis.

18. Job Design
In SNGPL two basicapproachesare used fordesigning
the jobsof theemployees :


Job Rotation
Job Enrichment
Job Rotation
As the term suggests , job rotation is concerned with the
action of enabling employees to switch job roles or
functions for the period of time. The overall goal is to
develop the individuals so that they have increased their
skills , knowledge and experience by the end of the
process .SNGPL is using thisapproach from past 10 years.

19. Job Enrichment
Job enrichment includes a numberof different
workplace practices, such as quality circles, self
directed teams, job rotation, information sharing and
others. One possible motivation for adopting such
practices is to challenge and motivate workers, and to
encourage them to participate in improving
productivity , safety and thequality of their product.
Job Sharing
In this technique people belonging to same job caliber
can easily divide thework load. In SNGPL mostly this
technique is used in departments like procurement,
metering and monitoring.

20. Recruitment
In SNGPL following methods are used forexecutive,
subordinateand laborclass jobs:
Recruiting method
Company is using both internal and external method
for recruitment. They go for the direct
advertisement for the executive level jobs and for
this purpose they giveadvertisementon theirwebsite
as well as in both Urdu and English newspaper.
At subordinate level most of the hiring done from
within thecompany. Like blood relations aregiven
the jobs of theirdeceased ones and retired ones and
also of employeeswhoare in service.

21. Applying process
Applicants for the Job have to apply online
through company website where all required
data is being collected for the advertised
post.

22. Selection Process
SNGPL uses following selection methodology:
Selection Criteria
Short Listing
Selection process of the company is, first of all
receive the online application then they need to
analyze theacademiccareerof theapplicant, they
check that either it is up to the merit list or not
then they short listed they applications who have
first division throughout in theiracademic career.

23. Test
Then they takecomputer based test from the short
listing applicants . The test is based on
 Postrelated questions
 General knowledge
 Quantitative questions
Also while selecting the candidatecompanyalso asses
the required technical as well soft skills in the
prospectiveemployee:
 Soft Skills
 Technical Skills

24. As company is categorized as engineering company
so the weight age among these two skills is:
 40% Soft skills
 60% Technical skills
And at the end which applicants qualified for the
next level they are called for final interview.
Interview process
Panel interview based on 3-4 people are conducted
for the selected applicants. This panel is comprised
of GM of the relevant Dept and cheifs of that Dept
and other top heads.

26. SNGPL COMPENSATION
System
According to the findings, the remuneration system
has a positive impact on employee satisfaction by
partially modulating motivation. Concurrently, this
study raises awareness of the need to revise a solid
compensation policy in order to boost employee
morale, engagement, and reduce turnover.The
Office of Personnel Management (OPM) requested
this study in advance of the controversial
Performance

27. SNGPL COMPENSATE
• Basic Pay
• Incentives Pay
• Referal Compensation
• Commission Compensation
• Bonus Payment
• Overtime Payment
• Profit Sharing
• Stock Option

28. SNGPL BENEFITS
• Medical Benefits
• Education Benefits
• Travelling Benefits
• Vacation Time
• Time Paid Off
• Personal Leave

29. Suggestion Ways to improve
compensation and benefits
• Ensure the company has fair
compensation and benefits
• Make job analysis and evaluation
• Create best pay structure

30. • Determine the industry-approved pay
through market research
• Conduct employee surveys to find out
their sentiments
• Communicate compensation policies
and market research to employees

31. Conclusion
A b o v e t h e a l l i n s t r u c tio n a bo u t t h e S N GPL
compensation system rules and regulations we are
discussed and conducting the interview the Executive
Engineer Maqsood Haider, he can give me all answers
of asking questions about the compensation
system.Professionals today priorities flexibility,
fulfillment, well being, and autonomy over high pay.
Most significantly, they want to actually participate in
the success of their SNGPL organization.

32. THANK YOU