Professional Documents
Culture Documents
Ongc HRM Project
Ongc HRM Project
2008-2009
Dhyani
1
HR Head HR Executive
Jodhpur
3. EXECUTIVE SUMAMRY 5
4 CORPORATION PROFILE 6
5 PURPOSE OF THE STUDY 7
6 INTRODUCTION OF ONGC 8-10
7 BASIC FEATURES OF ONGC 11
8 ORGANIZATIONAL SET OF ONGC 14
9 RECOGNIZATION AND AWARDS 15
10 HR AT ONGC 17
11 INCENTIVE SCHEMES AT ONGC 23-54
12 BIBLIOGRAPHY 55
2
PREFACE:
The project is done on the Rajasthan Forward base at Jodhpur. I have done work on the incentive
schemes of Jodhpur branch of ONGC. Firstly I got information about the economic position of the
ONGC, then about the industry, then jodhpur branch after that I have done at incentive scheme in
ONGC ,jodhpur.
Incentive Scheme in ONGC has been in existence since late 60’s and with the passage of time has
under gone number of reviews. . Keeping the present business scenario in focus ONGC
management have realized that scheme has not able to achieve the desired objectives as intended in
the scheme.
The main purpose of the scheme is to motivate the employees to achieve the target set by the
Organization. , As organization face mounting competition across the world. Companies can’t
sustain or even survive in such a relentless environment without attempting to accurately assesses
In view of the above an attempt has been made to compile the details of all incentive scheme in
reference to employee working at ONGC. A need is there fore strongly realized for compilation that
ONGC”.
3
ACKNOWLEDGEMENT
by all the concern people. It will be impertinent on my behalf if I do not thank each
and every person who has made an effort to put together this project.
I, first of all would like to acknowledge the cooperation and encouragement of the
charge HR/ER) whose guidance, patience, encouragement and trust has been a great source
to work under him. He also helped me to set up and refine my research agenda and career
goals .
handle all the paper work and assistance during the project work.
At the completion of this project I would like to acknowledge the cooperation and
encouragement of the SHRI VIPIN SAXENA & SHRI GANPAT SINGH PARIHAR.
Besides this I would also like to extend my sincere thanks to entire staff people who
4
EXECUTIVE SUMMARY
The training report concerns the welfare schemes at ONGC with various
level.
The study was carried out in Mandore office at JODHPUR. Accordingly the training
was concluded (on 14th of august 2008) with recommendations to ONGC as regards certain
measures, which can be considered to have better satisfied executives contributing their best
5
CORPORATION PROFILE
Oil & Natural Gas Corporation Limited properly known as ONGC , republic India’s number
one company with significant company in industrial and economic growth of the country is a
leading National Oil and Natural Gas producing company of India engaged mainly in exploration
,development and production of crude oil, Naturals gas and some value added products. It has gone
through its life cycle and now reached to its maturity stage after overcoming birth & growth stage
.The organization was born over about five decades ago on 14th August 1956 ND today ONGC is a
fortune 500 company having more than 35000 employees as on date working in different in India
and abroad. The modest corporate house within serene Himalayan setting at Dehradun and
ONGC has grown into a full fledge horizontally integrated upstream petroleum company
with adequate in house capabilities and infrastructure in the entire range of oil and gas exploration
and production activities and related oil fields engineering services .From a small directorate to a
monolith today ONGC is circumpassing the entire public gamut of public sector organization.
ONGC today is endeavoring to become a world –class oil and gas producing company in pursuit of
exploration and production business in the domestic and international area and related opportunity
ONGC today is repositioning itself to fasten the principle of relational enterprise through
partnership\strategic alliances \joint ventures with preferred partners and adopt a business strategy
6
which relies on company skills and positional assets with focus on core business areas and
Study on incentive schemes & employee motivation with special reference to national oil
company ONGC Rajasthan Forward Base, Jodhpur is part of the regular programme for MBA of
This project is carried out to find out the level of employee motivation regarding welfare
schemes & to find out how it can be made effective and implemented in day-to-day work of ONGC.
Also to find out what are the weakness and how can be rectified in the competitive edge of
globalizations concept and changed economic scenario of world The need has been felt as to how
company can made its welfare schemes attractive to enable an organization retain their human
The supplementary objective of the study is to increase the efficiency and motivating the
employees .Superior and subordinates to maintain hormonal relationship between them while giving
emphasis on welfare schemes & its effectiveness. This scheme enhances the compensation and
7
INTRODUCTION OF ONGC
• ONGC Group of Companies comprises of Oil and Natural Gas Corporation Limited (ONGC
- The Parent Company); ONGC Videsh Limited (OVL – a wholly owned subsidiary of
ONGC); ONGC Nile Ganga BV (ONG BV - a wholly owned subsidiary of OVL) and
Mangalore Refinery and Petrochemicals Limited (MRPL - a subsidiary of ONGC). Oil and
Natural Gas Corporation Limited (ONGC) is India's Most Valuable Company, having a
market share of above 80% in India's Crude Oil and Natural Gas Exploration and
Production. ONGC registered the highest profit among all Indian companies at US $ 1.92
billion (Rs. 8664.4 Caror) in the year 2003-04. Its production of Crude Oil in 2003-04 was
26.7 MMT and of Natural Gas 25.70 Billion Cubic Meters. ONGC also produce Value-
• ONGC Videsh Limited (OVL) is overseas arm of ONGC, engaged in Exploration &
ONGC the biggest Indian Multinational Corporation. In recent years, it has laid footholds in
hydrocarbon acreage in various countries including Ivory Cost and Australia. ONGC Nile
Ganga BV is a wholly owned subsidiary of OVL and has equity in producing field in Sudan.
Petroleum Products through Tendering Procedure for all the Group Companies. However, it
would be restricted to the Companies/ Firms/ Vendors registered with ONGC on its
8
Subsidiaries of ONGC
9
SWOT ANALYSIS
1. STRENGTHS
2. WEAKNESSES
3. OPPURTUNITY
4. THREAT
10
BASIC FEATURES OF ONGC
Globalization.
11
VISION OF ONGC
To be world class Oil & Gas Company Integrated in energy business with
MISSION OF ONGC
World Class
involved people.
Abiding commitment to health, safety and environment to enrich quality of Community life
Focus on domestic and international oil & gas exploration and production business
opportunities.
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Dominant Indian Leadership
Retain dominant position in Indian Petroleum sector and enhance India's energy availability.
to achieve self reliance in technology, promoting indigenous efforts to achieve in all related
• Assist in conservation of oil, more efficient use energy and development of alter
• Environmental protection
The Rajasthan forward base is having its base office at jodhpur in the western Rajasthan. It
comes under the Western Onshore Basin of Oil and natural Gas corporation with its regional office
at Baroda and headquarters at Deharadun.The name Rajasthan Forward Base is given as the ONGC
The Basin is having its at Jodhpur Named KDM Complex, Mandore, jodhpur. The drilling and
geophysical activities of Rajasthan Forward Base operating in Indo pak border in jaisalmer District.
13
DIFFERENT WORKING CONDITION
Employee are working in different set-ups; at the drill sites where days ON/OFF pattern
is prevalent and the officers and staff 8 hours duty at base office where apart from normal office
hours some services like radio communication etc. are round the clock jobs . The work force is
From staff strength of 450 employees in the year 1956-57 ONGC staff from grown up to
35000 at present.
• Engineering Services
• Drilling Services
work . Thereafter, some stagnation took place in the career advancement of the employees.
GLOBALIZATION
14
ONGC operations are being internationalized with a view to acquiring exploration
acreage and access to oil in other basics world over in line with the over strategy followed by
international oil companies .ONGC Videsh Limited .a subsidiary of ONGC , is managing the
overseas ventures.
Global ranking/Recognition
• Ranking 402nd in the Fortune Global 500 list for 2006, up from 454th last year ,
based on revenues; ONGC is ranked 115th in new list (based on profits ). Leading
• Topped the list of sensex Indian companies figured in Business Weeks first annual
Asian firms, ONGC was ranked ‘third’ among the 50 best Asian firms.
• Ranked 158th amongst the world’s largest companies as per market capitalization
on 31st March 2006 in the 10th annual Financial Times Global listing.
• Leads the list of Indian corporate titans, in the Forbes Global 2000, with 256th
ranking in list of 2000 business entities (including 33indian firms) based on sales,
• Sole Indian entry into the UNCTAD’s top 50, non financial Transnational
15
• Ranked 18th amongst 50 publicly traded global companies in oil &Gas industry
based on market capitalization and 15thy amongst 2 listed integrated Oil & Gas
companies.
• Conferred the Golden Peacock Award for the ‘Corporate Governance’ during the
Indian Ranking/Recognition
• Bagged the prestigious NDTV Profits Business Leadership Award in the Oil &
Gas category.
• Topped the Business Today list of Most Valuable companies in India for the
second year in a row. In the ranking, ONGC topped all the three categories viz.
• Ranked 11th in the Economic Times 500 Ranking with the highest Market
Capitalization, and Net Profit k, mainly due to lower P/E ratio and Return on Net
Worth.
• Ranked as the Most Respected Company in the PSU category in the 2006
16
HR AT ONGC
PEOPLE AT ONGC
Today, ONGC is the navratna company of India; and making this possible is a dedicated
team of nearly 35,000-40,000 professionals who toil round the clock .It is this toil, which amply
reflects in the performance figures and aspirations of ONGC. The company has adapted progressive
policies in scientific planning, acquisition, utilization, training and motivation of the team. At
ONGC has a unique distinction of being company with in house service capabilities in all
he activity areas of exploration and production of oil & gas and related oil field services. Company
The men & women behind this machine made this possible. Over 18,000 experienced and
technically competent executives mostly scientists and engineers from distinguished Universities
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,production engineers ,engineering & technical service providers ,financial and human resource
Behind the excellent results achieved is a work force of 35000 strong belonging to various
discipline of the company actively in the persistent search of oil and infuse with a new –ethos and
productive work culture. The Company is aware that its success is mainly due to its greatest assets –
its people a multifaceted, multidisciplinary group with complete n- house capabilities for all
activities in the industry. To meet the requirement of manpower ,revised manpower norms for
operation of drilling rigs have been approved and implemented .Exercise for other operational
utilization of existing human resource special need based studies are being carried out region-wise.
To meet the challenges of the future ONGC has to diversify its activities with zero
manpower growth. Attempts have been made to form out the low technology jobs. A major thrust is
being given to the introduction of multi-craft manning. This will result in job enrichment.
BASIN AS ON 01.04.2008
1. Class 97
2. Class 37
3. Class 46
4. Class 20
18
P & A STAFF POSITION AS ON 01.04.2008
1. Class 03
2. Class 03
3. Class 02
4. Class 04
Grand Total 12
CATEGORY
SC ST TOTAL
Class 1 11 05 16
Class 2 02 01 03
Class 3 08 03 11
Class 4 03 01 04
Total 24 10 34
HR Vision
“To attain organizational excellence by developing and inspiring the true potential of
company’s human capital and providing opportunities for growth, well being and enrichment.
HR Mission
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“To create a value and knowledge based organization by inculcating a culture of
learning, innovation and team working and aligning business priorities with aspiration of
HR Objectives
responsibility.
HR Strategy
• To build and upgrade competencies through virtual learning, opportunities for growth and
20
• Re-strengthening mutual faith, trust and respect.
Role of HR
• HR as a change agent.
• Developing ‘Global Managers ‘ for tomorrow to ensure the role of global players.
Measuring HR Performance
systematically and scientifically evaluate effectiveness of HR Systems, which enables and facilitates
21
HR Parameters of MOU for 2008-2009
• HR audit.
22
INCENTIVE SCHEME AT ONGC
QUALIFICATIONS.
23
INCENTIVE FOR ACQUIRING HIGHER QUALIFICATIONS
In suppression of all previous orders on the subject, the Scheme of Incentive for Acquiring
1.OBJECT:
higher/additional qualifications.
2. NATURE OF INCENTIVE:
I. SCOPE
II ELIGIBILITY
1. The incentive of two increments shall be given to the executives who attain First
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Class or 60% level (where such grades are awarded) in professional qualifications
Higher than the qualifications prescribed at the induction level after joining the
Corporation provided that these qualifications are in line with the discipline in
which the executive is working. However, the condition of securing First Class or
60% level is not applicable in case of CA/ICWA w.e.f. 6.10.1998 and also in such
Cases where the executives had acquired the qualification of CA/ICWA prior to
6.10.1998 but after joining ONGC. However in such cases the increments shall be
Professional qualification prior to joining ONGC, but acquired the said qualification
after joining the Corporation are also eligible for benefit under the scheme.
3. ENTITLEMENT:
I. Two increments at the increment rate admissible at the time of acquiring the qualification
shall be treated as PERSONAL Pay and shall be carried over by the executive separately. The
increments are to be counted for payment of all allowances except Dearness Allowance; and are not
to be counted for determining the rate of annual increment and fixation of pay on promotion.
qualification prior to 01.01.1997: Executives who had been granted incentive increments prior to
01.01.1997 and were in receipt of these increments in the pre-revised scales will be entitled to draw
incentive increments w.e.f. 01.01.1997 in the revised pay scales with reference to the post held by
them as on 01.01.1997. The incentive increments for this purpose will be calculated at the rate
25
Illustration : If an executive was granted incentive increment prior to 01.01.1997, when he was at
E-2 level, and he is at E-4 level as on 01.01.1997, the amount of incentive increments will be
calculated at the minimum of E-4 scale of pay and not repeat not on the actual basic pay being
qualification after 01.01.1997: Executives who have been granted incentive increments for
acquiring higher qualification on or after 01.01.1997, will be entitled to draw the incentive
increments on the revised basic pay drawn by the individual at the time of acquiring higher
qualification.
d) Executives who have been granted incentive increments w.e.f. 06.10.1998 in terms of Office
Orders No. 1(12)/97/Incentive/EP dated 06.10.1998 & 16.11.1998 will draw the increment w.e.f.
06.10.1998 with reference to the level as on 01.01.1997 or actual date of acquiring qualification
whichever is later on the same principle as enumerated in para (a) & (b) above.
e) Rate of Increments in case of retrospective promotion/pay fixation: In both these cases, the
amount of incentive increments shall be regulated as per (a) or (b) above depending upon the
effective date of promoted post deemed to be held or the basic pay deemed to have been drawn on
the date of grant of incentive increments for higher qualification as the case may be taking into
account whether the executive was granted incentive increment on or after 01.01.1997 or prior to it.
II The rate of increment is dynamic i.e. on subsequent pay revisions the increment rate gets
revised to an amount to be calculated on the minimum of the revised pay scale of the relevant post
held at the time of grant of such increment. Employees who are actually drawing incentive
26
increments at a higher rate than that admissible on the lowest scale of pay continue to draw
The personal pay on account of grant of incentive increment for acquiring higher qualification
would count for all purposes at par with Basic Pay except Dearness Allowance and would not be
counted for determining the rate of annual incentive and fixation of pay on promotion
The revised monthly monetary incentive amount for qualification acquired on or after 1.3.2008 is
as follows:
However, employees drawing incentive increments till 28.02.2008, as per the earlier scheme would
27
IV QUALIFICATIONS RECOGNISED FOR GRANT OF INCENTIVE INCREMENTS
(upto 28/02/2008)
Disciplines)
Management recognized by
Management
28.12.1981/29.07.1987
Disciplines
28
x) Master in Financial Management F&A discipline 14.12.1992
or after 01/03/2008)
disciplines)
Masters Degree in Industrial Engineering All disciplines
& Management
MBA or any other Management course All disciplines other than HR & Finance
equivalent to MBA
M.E./M. Tech/M.S Engineering disciplines
Company Secretary F&A, HR and Legal Disciplines
LLM Legal & HR discipline
1. SCOPE:
29
This incentive is payable to employees who acquire Q-1, Q-2 or Q-3
2. ELIGIBILITY:
The incentive in the form of lump sum award is given to such employees,
who attain Q-1, Q-2 or Q-3 qualifications prescribed at induction level after joining
the Company, provided that these qualifications are in line with the discipline in
This scheme is meant for employees who do not possess Q-1, Q-2 or Q-3
Class-III.
30
iii) An incentive of Rs.2, 000/- For Class-IV employees who acquire
Class-III.
31
I) The Scheme is applicable only to those who acquire qualification after
ii) The employee should have completed at least one year of service in the
Corporation.
iii) The employee should have appeared in the examination for acquiring the
qualification after appointment and during service in the Corporation and not
iv) The qualification which will be taken into consideration for grant of
incentive, under the scheme, will be those which are relevant in the
for the various E-1 induction level posts under these regulations as amended
prescribed in the regulations ibid for direct recruitment to the top of Class-III
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working, he/she will not be entitled to payment in incentive, under the
scheme.
qualification for other disciplines as well for grant of incentive under this
scheme to non-executives.
NORMS
PREAMBLE
(a) To motivate the employees to adopt small family norms in keeping with the
national objectives.
quality of life.
This scheme may be called as Oil and Natural Gas Corporation Limited Scheme for
33
2. APPLICABILITY
This scheme shall be applicable to all employees in Regular Scales of pay in the
Company.
3. LANGUAGES
4. TEACHING COURSES
5. ELIGIBILITY :
drivers, technicians etc. in Class-III provided the mother tongue is not the respective
regional language.
categories excluding Class-IV, provided their mother tongue is not the respective
regional language.
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6. INTERPRRETATION
In case of any doubt regarding interpretation of any of the provisions of this scheme,
the matter shall be referred to the Director (HR), who shall decide the same in
7. POWER TO RELAX
The power to relax any of the provisions under this scheme shall vest in the Head of
the Region/Institute, (now Asset/ Basin Services/ RO) who shall exercise such
shall be exercised by the Head of the Business Group in consultation with the
associated Finance.
8. POWER TO AMEND
The Company may from time to time amend, modify or add to this scheme and all
such amendments, modifications or additions shall take effect from the date stated
therein.
10.1 The Existing instructions on "Oil and Natural Gas Commission Scheme on
35
10.2 Nothing in this scheme or any repeal affected thereby shall affect or be deemed
to affect any thing done or action taken under the said scheme before commencement
of this scheme.
FAMILY NORMS
INCENTIVES
The following incentives are provided to the employees for adopting small family
(a).CASH INCENTIVE
A lump sum cash incentive of Rs.300/- may be granted to employees where the
employee himself or his spouse undergoes sterilization operation. This cash incentive
is payable irrespective of the fact whether such employees are entitled to draw any
cash or other type of incentive from any other source for undergoing sterilization
operation.
36
(b) SPECIAL INCREMENTS
Employees who undergo sterilization after having one surviving child and not more
than two or three surviving children may be granted a special increment in the form
of personal pay.
i. The personal pay would be equal to the amount of next increment due
at the time of grant of the incentive and will remain fixed during the
employee is drawing the pay at the maximum of the pay scale the rate
drawn.
ii. The personal pay is granted from the 1st of the month following the
date of sterilization.
iii. The personal pay can be drawn at their choice by either the husband
that they can avail the higher rate of increment available to them.
iv. The personal pay shall be admissible at the same rate even if the
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(a) Employees who have adopted small family norms prior to pay revision will be
entitled to draw the personal pay equivalent to the increment fixed at the rate of
increment in the revised scales of pay of the post held as on 1.1.1997. However
employees who were actually drawing the personal pay at a rate higher than the
lowest rate of increment in the Revised scales may continue to draw at the old rates.
(b)Employees who have adopted small family norms on or after the date of Revision of pay scales
wef 1.1.1997 will be entitled to personal pay of the rate admissible in the actual revised basic pay of
an amount equal to the amount of next increment due at the time of grant of the concession.
The Incentive increments on revised rates due to pay revision w.e.f. 1.1.97
are admissible to the employees who do not get any issue during the first four
years of marriage as per the terms and conditions as laid down in the
date 26.2.2001).
operation.
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3. INCENTIVE SCHEME FOR ONGC TERRITORIAL ARMY PERSONNEL
matter, the incentive scheme for the benefit of the ONGC (Territorial Army)
CAMP) :
Officers Rs 5, 000/-
39
3. REIMBURSEMENT FOR MUFTY DRESS:
4. OUT-FIT ALLOWANCE :
40
5. NON-MONETARY INCENTIVES :
i) House Allotment
41
iii) Lump sum payment for Annual Training Embodiment (full 30 days
camp):
Officers
iv) Ration:
Six days time (excluding Sundays and Holidays) which may be split
into two parts at the discretion of the employee, at the time of joining
42
personnel and family requirements. This period of six working days
000/-
43
7. BENEFITS DURING SERVICE EMBODIMENTS:
Double of the ATC rate, as given in Para 6(iii) above and on pro-rata
exigencies.
44
iv. Special Casual Leave:
i. Canteen Facilities
the Army.
45
iii. Leave Travel Concession
personnel.
then situation demands so, at the discretion of the unit / Coy Officer
commanding.
v. Miscellaneous Allowances:
to time.
46
admission to Indian Military Academy against the percentage fixed
for them.
per ONGC Regulations, the TA personnel can also draw 50% of the
personnel may draw one months’ advance pay when called for
installments.
47
iii. Drawl of lump sum payment for training and service embodiment
period:
Dehradun.
any circumstances.
48
4. INCENTIVE SCHEME FOR HINDI WORK. TITLE :
ii. Grant of Hindi Incentive Allowance to Stenographers and Typists for doing
IN OFFICIAL WORK:
i. ELIGIBILITY
49
b. Stenographers/Typists who are covered under some other incentives
for encouraging the use of Hindi in official work under this scheme
will not be eligible for incentives for original Hindi noting and
Stenographers and Typists can opt only for one type of an incentive.
ii. PRIZES
work centers may be given to the participants every year according to the work done
by them in Hindi :
50
(a) First Prizes: Two Prizes Rs.700/-
(Seven Hundred each)
(b) Second Prizes: Three Prizes Rs.500/-
(Five Hundred each)
(c) Third Prizes: Five Prizes Rs.350/-
(Three Hundred Fifty each)
(d) Consolation : Five Prizes Rs.200/-
Prizes (Two Hundred each)
iii. CRITERIA
in Regions ‘A’ & ‘B’ and Ten Thousand works in Region ‘C’ in an
year will be eligible to compete for the prizes. The prizes will be
awarded to the first ten persons in order they stand on the basis of the
meritoriously but are not covered under First, Second and Third
prizes.
every day in the Performa (given below). Each week’s record will be
51
himself keeps a record then it won’t be necessary for employee to
maintain such record. At the end of the year, every competitor will
work, then this would not be necessary and he would furnish details.
(c) A Senior P&A Officer (Hindi)/Hindi Officer/PAO looking after Hindi work.
v. PROFORMA
52
DONE BY SHRI/SMT./KM.______________________________
Date No of of of of
Sectional
DRAWBACKS OF PROJECT
Although the project was carried out with the motive of ensuring most exhaustive and
comprehensive coverage of the facts but still it suffers through certain limitations, these are the
followings:
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• The training was carried out in the prescribed time frame of 8 weeks, which is a short time
• Though the sample size was small it was ensured that almost all the departments were
covered and equitable representation was taken from each departments by covering various
grade. Also, the research was limited to Refineries Jodhpur head office of ONGC.
• Library
• Office Files
• Journals
• Internet
• Different departments
BIBLIOGRAPHY
Books
54
• ‘Personnel Management’ by S.P.Subba Rao.
Published Reports:
• Annual Reports of ONGC Ltd.
• Financial report of ONGC Ltd.
• Various News letters of ONGC
News Papers:
• Economic Times of India
• Financial Express
Websites:
• www.ongcindia.com
• www.ongc.com
• www.rajasthanforwardbase.com
• www.ONGCNet..in
• http://10.205.55.5/
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