HR Practices In ONGC

PROFILE: ONGC which was incorporated on June 23, 1993 is a public sector petroleum company in India. It is the most valuable country in India by market capitalization contributing 77% of Indias crude oil production and 81% of Indias natural gas production. It is the highest profit making corporation in India. It was set up as a commission on August 14, 1956. It is involved in exploring and exploiting hydrocarbons in 26 sedimentary basins of India. It produces about 30% of Indias crude oil. Sales $9.78 billion Profits $2.16 billion Assets $19.18 billion Market Value $27.86 billion Employees 38,033 Today, ONGC is the flagship company of India; and making this possible is a dedicated team of nearly 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 everybody matters, every soul counts. ONGC has a unique distinction of being a company with in-house service capabilities in all the activity areas of exploration and production of oil & gas and related oil field services. Needless to emphasize, this was made possible by the men & women behind the machine. Over 18,000 experienced and technically competent executives mostly scientists and engineers from distinguished Universities / Institutions of India and abroad form the core of our manpower. They include geologists, geophysicists, geochemists, drilling engineers, reservoir engineers, petroleum engineers, production engineers, engineering & technical service providers, financial and human resource experts, IT professionals and so on.

VISION: To be a world-class Oil and Gas Company integrated in energy business with dominant Indian leadership and global presence.

MISSION: World Class Dedicated to excellence by leveraging competitive advantages in R&D and technology with involved people.

 Imbibe high standards of business ethics and organizational values. Abiding commitment to safety, health and environment to enrich quality of community life. Foster a culture of trust, openness and mutual concern to make working a stimulating and challenging experience for our people. Strive for customer delight through quality products and services. Integrated In Energy Business Focus on domestic and international oil and gas exploration and production business opportunities. Provide value linkages in other sectors of energy business. Create growth opportunities and maximize shareholder value. Dominant Indian Leadership Retain dominant position in Indian petroleum sector and enhance India's energy availability.

HISTORY 1947 - 1960 During the pre-independence period, the Assam Oil Company in the northeastern and Attock Oil company in northwestern part of the undivided India were the only oil companies producing oil in the country, with minimal exploration input. The major part of Indian sedimentary basins was deemed to be unfit for development of oil and gas resources. After independence, the national Government realized the importance oil and gas for rapid industrial development and its strategic role in defense. Consequently, while framing the Industrial Policy Statement of 1948, the development of petroleum industry in the country was considered to be of utmost necessity. Until 1955, private oil companies mainly carried out exploration of hydrocarbon resources of India. In 1955, Government of India decided to develop the oil and natural gas resources in the various regions of the country as part of the Public Sector development. With this objective, an Oil and Natural Gas Directorate was set up towards the end of 1955, as a subordinate office under the then Ministry of Natural Resources and Scientific Research. The department was constituted with a nucleus of geoscientists from the Geological survey of India. Soon, after the formation of the Oil and Natural Gas Directorate, it became apparent that it would not be possible for the Directorate with its limited financial and administrative powers as subordinate office of the Government, to function efficiently. So in August, 1956, the Directorate was raised to the status of a commission with enhanced powers, although it continued to be under the government. In October 1959, the Commission was converted into a statutory body by an act of the Indian Parliament, which enhanced powers of the commission further 1961 - 1990

Since its inception, ONGC has been instrumental in transforming the country's limited upstream sector into a large viable playing field, with its activities spread throughout India and significantly in overseas territories. In the inland areas, ONGC not only found new resources in Assam but also established new oil province in Cambay basin (Gujarat), while adding new petroliferous areas in the Assam-Arakan Fold Belt and East coast basins (both inland and offshore). ONGC went offshore in early 70's and discovered a giant oil field in the form of Bombay High, now known as MumbaiHigh.This discovery, along with subsequent discoveries of huge oil and gas fields in Western offshore changed the oil scenario of the country. After 1990 The liberalized economic policy, adopted by the Government of India in July 1991, sought to deregulate and de-license the core sectors (including petroleum sector) with partial disinvestments of government equity in Public Sector Undertakings and other measures. As a consequence thereof, ONGC was re-organized as a limited Company under the Company's Act, 1956 in February 1994. After the conversion of business of the erstwhile Oil & Natural Gas Commission to that of Oil & Natural Gas Corporation Limited in 1993, the Government disinvested 2 per cent of its shares through competitive bidding. Subsequently, ONGC expanded its equity by another 2 per cent by offering shares to its employees. During March 1999, ONGC, Indian Oil Corporation (IOC) - a downstream giant and Gas Authority of India Limited (GAIL) - the only gas marketing company, agreed to have cross holding in each other's stock. This paved the way for long-term strategic alliances both for the domestic and overseas business opportunities in the energy value chain, amongst themselves. Consequent to this the Government sold off 10 per cent of its share holding in ONGC to IOC and 2.5 per cent to GAIL. With this, the Government holding in ONGC came down to 84.11 per cent. In the year 2002-03, after taking over MRPL from the A V Birla Group, ONGC diversified into the downstream sector. ONGC will soon be entering into the retailing business. ONGC has also entered the global field through its subsidiary, ONGC Videsh Ltd. (OVL). ONGC has made major investments in Vietnam, Sakhalin and Sudan and earned its first hydrocarbon revenue from its investment in Vietnam. LEADERSHIP STLYE MR. SUBIR RAHA (CHAIRMAN & MD-ONGC) Mr. Subir Raha Receives CHEMTECH-CEWs Achiever Of The Year Award Mr. Subir Raha bags SCOPE Individual Excellence Award for his outstanding contribution to Public Sector Management. Mr. Subir Raha has been awarded as the CEO Business Leader of the Year in recognition of his Leadership Excellence at Indian Leadership Summit. Was awarded the Grid Leadership Award for his outstanding contribution in the filed of Corporate Management from Dr. P.N. Singh Foundation.

 Assumed badge-of-office of the President of the International Federation of Training & Development Organizations, Lisbon, Portugal, May 03, 2003. The Following Leadership Qualities and Style followed by Mr. Subir Raha as per our study are as follows: Leadership Qualities: 1. Innovative and Creative: Professional like Mr.Subir Raha think beyond the obvious and encourage their people to do the same. They ensure that employees have a peen ness for exploration and keep an open mind. It helps the organization to always be ready to look at opportunities for betterment and the search for new ideas, new practices, new products and new ways of doing things better goes on continuously. Mr.Raha secured the individual award for Excellence in Creativity & Innovation in 2002. 2. Customer Orientation: Every professional has two sets of customers whom he must try to satisfy to the fullest possible extent namely, the external customer (the purchasers, the society at large) and the internal customer (the employees, his subordinates, peers and bosses. Professionals like Mr. Raha have ensured that the internal customers are given their due and takes care of the needs, desires and problems. Thus he has build up a customer orientation within the organisation too which is quite infectious and pervades the entire organisation. Golden Peacock Award for Excellence in Corporate Governance was received by Mr. Raha on behalf of ONGC from Lord Swaraj Paul on 2nd in recognition to the contribution towards Corporate Governance, and helping in giving back to the society the best services and products with transparency and accountability. 3. Stop managing, start leading and cultivate managers: He disliked the notion of management. Most managers in his view over- managed. Those who over managed helped to create a bureaucratic environment, which according to Mr. Subir Raha , kills large companies. He decided that ONGCs leaders had to change their management styles i.e. too much controlling and monitoring .The only way to last at ONGC was to get on board, to become a lean leader, to adapt oneself to the companys value and culture.

Table of Contents
1) Information about ONGC y y y y y Profile History Mission Vision Leadership Style

2) Human Resource Management at ONGC-Handbook y Rules Relating To a)Seniority b)Probation c) Promotion d) Seniority Pay a)Scales Of Pay b)Dearness Allowance c)Date Of Increment d)Pay Fixation

3) Welfare y y y y y y y y y y y y y y y Leave Fare Assistance Travel By Private Taxi in Hilly Areas Holiday Home Facility Education Facilities ONGC Scholarship TO SC/ST Students Medical Facilities Reimbursements Composite Social Security Scheme Compensation For Accidents While On Duty Medical Facilities To Retired Employees Financial Assistance For Death/Permanent Disability Due To Accidents While On Duty Ex-gratia Scheme for pre-1959 Employees Mementos To Retired Employees Employees Welfare Communities Gratuity,CPF and PRBS

(Oil and Natural Gas Corporation of India) Submitted To Mrs.N,Malati Submitted By Ambesh Govind MBA2B (078)