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Chapter VII


The study on Human Resource Management Practices in

GAIL (India) Limited has brought up a number of findings about

the performance and management of GAIL (India) Limited. Some

of the findings in this research point very clearly the effect of

sound HRM system in a company. There are some other findings

and observations that best use of human resources leads to the

development, both economic as well as social. While the

economic development leads to business expansion and

diversification along with high rates of profits, the social

development leads to high job satisfaction level, , high class

business ethics and values amongst employees. It also leads to

the popularly and rating of a Company as a Corporate citizen.

The observations of the study indicate the vast scope for

Public sector in India. Critics, who had 'written off' the public sector

in the nineties of last century, have again realized the power and

stronghold of public sector after two decades of Liberalization,

Privatization and Globalization process in India.

Another important factor, coming to light in the study is that

slow moving or loss making public sectors understandings are a big

burden on national exchequer. The MoU system brought up by the

Government of India in 1997 has paved the path of rejuvenating the

loss making public sector undertakings in India. It is very important

to mention before summing up the conclusions that the research is

based on the study of impact of Human Resource Management

practices of GAIL (India) Limited. The human resources from both

the executive and non executive categories were asked to express

their opinion on the prevailing practices of HRM in GAIL (India)

Limited. The total agreement content was found by calculating the

mean of total agreements in a number of parameters in each of the

HRM practice namely Recruitment, Training , Promotion,

Performance Appraisal , Social measures like Working Conditions,

Health, Safety and Environment (HSE) policy, Corporate Social

Responsibility, Pay Structure and Employer Employee Relations.


The main conclusions and findings of the study regarding

Human Resources Management Practices of GAIL (India) Limited

are listed as under :

(1) GAIL (India) Limited is a highly profit making Navratna

Company, having a very bright and promising future. The

high profit yielding capacity of the Company has been

very consistent during last decade. The compounded

Annual Growth Rate (CAGR) of the Company has been

more than 13 percent.

(2) The Company has been able to maintain its 'Navratna' status

since 1997, when it was included in the coveted list by the

Government of India. The Company has always been able to

score 'excellent' rating in MOU ratings. It is listed as Schedule A

Company in Navratna list, which is the top level rank.

(3) The Company is ranked as number one Energy

Company in gas utilizes in Asia and number two in the

world according to the reports of survey of Platts. (An

international survey company, conducting surveys of 250

top energy companies of the world).)


(4) The company is also ranked as number one Integrated

Energy Company of India, by a number of national and

international bodies.

(5) The Company owns and operates the biggest gas based Perto-

Chemical plant of India at Pata (U.P).The company plans to

double the installed capacity of plant in coming five years.

(6) The Company owns and operates the longest network of Gas

transmission pipelines in the world (about 750 km. )in length).

(7) The Company has been contributing one percent of its Profit

After Tax (PAT) for CSR activities. Since 2010 it has doubled

this amount i.e now it is contributing two percent of Profit

After Tax (PAT) on these measures. Thousands of poor

people have been benefited by these social measures.

(8) The business diversification plans of the Company have

been very helpful to raise the level of its profits.

Beginning with a company to work in gas sector only, it

has diversified into a number of energy areas like LPG,

CNG,CGD, LNG, Petrochemicals, Wind Energy etc.

(9) The Company is working with a small number of employees

(3878) but performing big tasks and earning huge returns on


its investments. It has earned a profit after tax of Rs 3561

Crores during 2010-11.

(10) The Company is known for following very good business

ethics, which is certified by the reports of Comptroller

and Auditor General of India.

(11) The Company is following the best kind of Human

Resource Management practices, which are recognized

and appreciated by the employees of company.

(12) A lot of concern is showen by the company in regard to

the customers complaints and grievances. Customers

are able to register their complaints online and can

check the status of their complaint online as well.

(13) The Company is managed rather than being

administered. It follows the Corporate Governance

Model as per the guidelines of Government of India. It is

popular as a responsible 'Corporate Citizen'.

(14) It has been announced in the 27 Annual General Meeting of

the Company on September 7, 2011 that it plans to touch Rs

1 lakh crore mark by 2016-17, in its annual turnover.


(15) The Company has its own intenal audit system in safety

measures, yet it conducts external safety audits on

regular basis through renowned international agencies

like British Council, U.K.

(16) The Company has won a big number of awards and

accolades in a number of categories, during previous years.

(17) The Company has done meritorious services in the

areas of providing 'Green Energy' to the nation.

(18) The Company has contributed very big income to the

Government of India through its profits and huge returns.

The Company has a Government equity of more than 57

percent in the name of President of India alone.

(19) The Company has signed joint ventures with other oil

and energy companies of India like ONGC, IOC, BPCL,

HPCL, NTPC etc. All its subsidiaries and joint venture

companies are showing high profits.

(20) The Company is operating at international levels in many

counties like Mynmar, Qatar, Egypt. It has its international

office at Singapore for its overseas business.


All the above findings are the general in nature, which reflect

the progressive outlook of the company. Following are listed, the

analytical results of effectiveness of Human Resource Management

Practices of the Company.

The findings show that the company is following e-Recruitment

practice, which is one of the best known practice in its category. All

recruitment in Executive and Non Executives at induction level is

based on e-Recruitment process.

(1) The effectiveness of Recruitment as an HRM practice is

of a high order. The overall mean score of acceptance

level of employees, both executive and non executive

category is as under :-

Overall Mean of percentage of agree count of

effectiveness Recruitment as an HRM practice in

Executive Category = 82

Overall Mean Score of effectiveness of Recruitment as

an HRM practice in Non Executive Category. = 85.99

(2) The overall mean score of the effectiveness of training as a

HRM practice in GAIL is very high in both categories of

employees. This high score is an indication that the Company


is having a very developed training and development system,

which has brought tangible results in the form of overall

development, high satisfaction level of both employees and

its customers. Even the families of the employees are given

basic training at plant level about Health, Safety and

environment parameters. The contract labour and tanker

drivers are also imparted basic safety training at plant levels.

All the employees are conflicts, white on job with the help of

training they get at two training institutes of the company at

Noida & Jaipur. Overall mean scores in effective Training as

an HRM practice in under :

Overall mean score in effectiveness of Training as an

HRM practice in Executive Category = 92.8

Overall mean score in effectiveness of training as an

HRM practice is Non Executive Category = 91.35

(3) The findings of the study indicate that Promotion system in

GAIL (India) Limited as an HRM practice, is based on a

system which is a combination of both merit and seniority.

The Departmental Promotion Committee (DPC) recommends

the names but the formula for promotion include the


qualifications for next post, additional marks for higher

qualifications, special marks for posting in difficult locations

and performance appraisal and development (PAD) reports.

Most of the employees are happy with the existing system of

promotions . A time bound mechanism for reply to the

representation is available for employees. The executives

are divided into different categories from E-0 to E-9 levels

and non executives from S-0 to S-7. Time margin is fixed for

all levels, however under 'Green Ribbon' system, a

mechanism for fast track promotions is available in the

company. However the content of agreement liking for

different parameters varied in percentage both in executive

and non executive category . The average mean percentage

for the effectiveness of promotion system is as under :

Average mean of agreement on the effectiveness

of Promotion policy in executive category = 89.5

Average mean of agreement on the effectiveness

of promotion policy in non-executive category = 87.38


(iv). The study reveals that the Company has designed a very

rational system of Performance Appraisal and Development

(PAD)Reporting. Instead of writing conventional Annual

Confidential Reports (ACR's) of employees, an open system is

followed in the Company where the employee gets a chance

of self appraisal and development. The executives can see

that PAD reports on Company's inranet and can even give

representation to the competent authority in case of denial of

promotion. In the basis of PAD Report.

The average mean agreement percentage count on

effectives of Performance Appraisal and Development

executive category is = 72.71

The average mean agreement percentage count on

effectiveness by Performance Appraisal and Development in

non executive category is = 90.04

A number of social and economic measures were

studied as HRM practices in GAIL (India) Limited.

Among the social measures following measures were studied :

Working Conditions

Health ,Safety and Environment (HSE) Policy.


Corporate Social Responsibility.

The study was made to study the impact of a number of social

parameters in each of the three categories.

(v). It was found that a very big percentage of employees is

satisfied with the working conditions in the Company. The average

mean of agreement on the effectiveness of working conditions was

as under :

Average mean of agreement on the effectiveness of working

conditions in Executive Category = 86.36

Average mean of agreement on the effectiveness of working

conditions in Non-Executive Category is = 87.24

(vi). Health Safety and Environment Policy of the Company

according to the findings of the research is liked by the employees.

The Company has won maximum national and international awards in

this category. These parameters are a very big catalyst to improve

upon the efficiency of the employees. The average mean agreement

percentage for the effectiveness of HSE policy is as under :

Average mean of agreement for the effectiveness of HSE

policy in executive category. = 91.5


Average mean agreement for the effectiveness of HSE policy

in non executive category = 91.06

(vii). The observations of the study reveal that the company

has doubled the amount from one percent to two percent of Profit

After Tax for contributing to Corporate Social Responsibility, (CSR)

measures since 2010. The particular contribution has helped both the

company and employees to be socially responsible. It has helped the

company to make the general public living near its plants, feel very

comfortable with the company.It has improved the level of 'Business

Ethics ' and ethos of the company and its employees.

Average mean agreement percentage for the effective men of

the CSR policy is as under :

Average mean agreement percentage for the effectiveness of

the CSR policy in executive category = 88.04

Average mean agreement percentage for the effectiveness of

CSR policy in non executive category = 80.99

(viii). The Study of the Company reveals that the pay scales of

the Company are the best paid pay scales amongst central

public sector enterprises, because the Company is listed as a

Schedule A Navratna Company. Both the categories are

contented with their pay scales, perks and allowance .

Total mean agreement percentage for effectiveness of pay scales in

executive category is = 86.2

Total mean aggregate percentage for effectiveness of pay scales in

non executive = 86.16

(ix). The study reveals that the Employer Employee

relations in the Company are measures in terms of Management

wocher relationship. These relations are excepionally goal and a

kind of good example in the country. There has been no incident of

any strike or lock out in the company so far due to any policy of the

management. Any incidence if strike was the genre call of strike by

all Oil Companies of India. Both the managements workers work as

a team. Leadership quality level in executives is very good.

Total mean agreement percentage for the effectiveness of

employer-employer relation in the companies under :

Total mean agreement percentage for the effectiveness of employer-

employer (management -worker) relations in the company in

executive category . = 96.6


Total mean agreement percentage for the effectiveness of

employer-employer (worker-management) relations in the

company in non executive category . = 95.79

The overall mean of effectiveness of HRM practices studied

in the research are depicted category wise- executive category and

non-executive category in the Histogram on the next page.

The high percentage of effectiveness of the HRM practices in

GAIL( India) Limited make it a highly profit making and

successful Navratna Company which testifies all the

hypothesis in chapter-I as do not rejected.


Overall Mean of Effectiveness

Percentage of HRM practices in
GAIL (India) Limited:






m Working Pay er
Trainin Promot Statem Emplo
Recruit g i ance Conditio HSE CSR e y
ment on Apprais ns nts ee
al n
Executive 82 92.8 89.5 72.71 86.36 91.5 88.4 86.2 96.6
Executive 85.99 91.35 72.71 90.04 87.24 91.06 80.99 86.16 95.79

Challenges and Short comings in GAIL (India) Limited

GAIL (India) Limited is a highly profit making and efficient Navratna

Company of India. It has shown very bright prospects of growth in coming

years. The present study has found a number of positive attributes

regarding the HRM practices, which shall help the company to grow at

global level. However, there have been some short comings found in the

HRM practices of the company, which are listed as under :

(1) The company has e-Recruitment process in practice, but

most of the decisions seem to be based on Corporate HR

department of the company. The HR department at plant

level exercise the Human Resource Planning (HRP)

practice, on their own, yet they have been limited to take

decisions for non executive categories only Dependence

on Corporate office seems to be more. It makes the

Corporate HR department a very busy office too. It must

delegate some more powers to plant HR departments.

(2) The training institutes called GAIL Training Institutes are two

in number. One GTI is at Noida and other at Jaipur. The

Company is a global company in nature and very soon its


number of employees will grow.. There must be at least two

more training institutes for GAIL (India) Limited.

(3) The Company must develop a master plan for Human

Resource Planning for its future needs. Presently the Company

is planning more for technical and financial requirements and

less for HRP requirements for its upcoming projects.

(4) There is another area where the Company needs to improve. It

has its plants and locations at very for off and remote places

where some urban facilities are missing. There is a need to

develop good hospitals and fully equipped highly urbanized

townships for the company to meet future requirements.

(5) The Company has not a developed follow up mechanism for

checking the effectiveness of its CSR programs. It has

contribute a lot of money for social causes but there is not

much follow up for the running projects. It must conduct a

kind of social audit for making the programs more effective.

(6) The Company needs to be cost effective. At present, it is a

position to bear the huge expenses incurred by Board of

Directors and T.A/D.A payments of its employees and other

sundry expenses like refreshments maintenance of plants,


townships etc. Many of its maintenance jobs are outsourced

which may prove costly to the company incoming times.

(7) There is a very big gap between the pay scales of

executives and non executive cadre of employees. It can

lead to dissatisfaction amongst lower cadre employees in

future. Although the pay scales are based on the

recommendations of Governments of India , the Company

must bring out some plans for additional perks and

allowances for lower cadre employees to bridge the gap.

(8) The Company has not developed some disaster management

group which can work in case of extreme emergencies. It has

its safety departments at all plant levels which can meet the

local emergencies. The Company must have reserved funds in

some kind of Contingency and Emergency Fund.

(9) The Company must develop a state of the art Research

and Development Cell. It has its training institutes

equipped with laboratories. These laboratories are not

properly used for research and development purposes

by the company. The Research and development cell

can help the company to plan its future policies also.


(10) There are no retail market products manufactured by the

company. It is making raw materials in form of polyethylene

and polymers. The Company has a vast scope in retail sector

for small and medium level customers.

(11) The Company must take care of inducting its Directors in a

number of non statutory committees. It must plan that Director

can not a member of more than two or three committees. This

can enhance the level of focused participation.

(12) Lastly, the Company must draft a,' New Strategic HRM Plan-

2020'. The present HRM policies might prove to be insufficient

as per the future plans of growth and development. The present

needs are met in a satisfactory manner but preparation for

future challenges in advance must be planned

by the company.

To conclude and sum up there are some strong areas of concern

for the company to meet its future demands. The present HRM practices

of the Company are the real milestones and guiding forces for the other

companies as well. The strong inputs and endeavor of 'Team GAIL', have

really established the Company's reputation as number one integrated


energy company of India. It is the number one energy company in Asia in

gas utilities and number two at global level.

The company has a very bright future to be a leading energy

company of the world. It has really added many feathres in the cap of

Indian Public Sector.