Sui Southern Gas Company Case Study

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Sui Southern Gas Company Limited (SSGCL) is an organization with a tall hierarchical structure. As with all tall hierarchical structures, there is a tendency for information to get accidentally distorted as it passes through layers in a hierarchy. Also, SSGCL employs a centralized approach so the person making the decisions is very far off from the practical side of operations, which results in impractical and inefficient decisions. SSGCL faces a lack of resources as it has much more consumers than supply with 66,000 customers being added every year. The company is unable to make supply meet demand resulting in unsatisfied stakeholders. To try to make ends meet, the company has taken a lot of loans. The company’s profitability
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In between it covers over 1200 towns in the two provinces. In total, there are over 2.5 million industrial, commercial and domestic consumers, supplied by a distribution network of over 37,000 km.
With such a vast transmission and distribution network, the company has to have a strong organizational and management culture for productivity. Thus, the company has in place a Board of Directors, comprising of fourteen members, for major decision-making. The Bosard of Directors has given exclusive authoritative powers to the Managing Director/Chief Executive. Decisions are then passed down in the hierarchy. Since the SSGCL network is spread over two provinces, business is organized through its regional office.
SSGCL was formed in 1954. In its present form, the company was formed in 1989, as a merger of three gas companies, namely Sui Gas Transmission Company Limited, Karachi Gas Company Limited and Indus Gas Company Limited. It is now listed on the Karachi, Lahore and Islamabad Stock Exchanges. It is Pakistan’s first integrated gas company, which also owns and operates the only gas meter manufacturing plant in the country. It also enjoys a monopoly position in the region.
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The management is done through regional offices in Sindh and Balochistan. The departments have been cleverly devised with sub-divisions and managers are assigned to each of these sub-divisions. This helps to stay organized and reduces the load on the department heads. Delegation of responsibilities to each sub-division helps the company to achieve its goals and objectives. Despite this, the management of the company has portrayed a lack of effective decision-making as the goals set for employees are very unrealistic and sufficient resources have not been provided to them. As a result, the employees have become complacent as they commit to the senior management but don’t do their work. The senior managers have also portrayed a lack of knowledge as to how things are done and are thus unable to follow-up on delegated

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