Acknowledgements We like to thank Almighty Allah the most beneficent and merciful for enabling us to reach here anduse

His sources to complete our project. We are humbly thankful to Amjid Javed, (General Manager)and Abdul Razik khattak (Senior Recruitment Officer) HR Department of OGDCL, Islamabad and allothers who guided us during the course of project. The behavior of all the supervisors of HR Department was very good to us. They were always there to encourage us and they were very cooperative to guide us the mechanism of the HR Department in which we workedWe are also grateful to Dr Basit B. Tayyab, who gave us opportunity to enhance our capabilities. This project is very helpful for us because, we have learnt a lot by applying theoretical knowledge in practical field. In addition, we like to say thanks to our parents to support us and encourage us atevery s

Chapter 1 Introduction Before the existence of OGDCL, exploration activities were carried out under the label of PakistanPetroleum Ltd (PPL) and Pakistan Oilfields Ltd (POL). In 1952, PPL discovered a giant gas field atSui in Balochistan. This discovery generated massive interest in exploration and five major foreignoil companies entered into concession agreements with the Government.During the 1950s, these companies carried out widespread geological and geophysical surveys anddrilled 47 exploratory wells. As a result, a few small gas fields were discovered. Despite these gasdiscoveries, exploration activity after having reached its peak in mid-1950s, declined in the latefifties. Private Companies whose main objective was to earn profit were not interested in developingthe gas discoveries especially when infrastructure and demand for gas was non-existent. Withexploration activity at its lowest ebb several foreign exploration contracting companies terminatedtheir operation and reduced land holdings in 1961. 1 Foundation of OGDC On 04 March 1961, the Government of Pakistan signed a long- term loan agreement with the USSR,where by Pakistan received 27 million to finance the equipment and services of Soviet experts for exploration. Subsequently, OGDCL was created under an Ordinance dated 20 th September 1961 andwas charged with prime responsibility to undertake a well thought out and systematic exploratory programs and to plan and promote Pakistan's oil and gas prospects.As an instrument of policy in the oil and gas sector, the Corporation followed the Governmentinstructions in matters of exploration and development. The day to day management was however,vested in a five-member Board of Directors appointed by the Government. In the initial stages thefinancial resources were arranged by the GOP as the OGDCL lacked the ways and means to raise therisk capital. The first 10 to 15 years were devoted to development of manpower and building of infrastructure to undertake much larger exploration programmes. Later, in July 1989, as the

company progressed as a result of major oil and gas discoveries, the Government off-loaded the Company fromthe Federal Budget and allowed it to manage its activities with self generated funds. The year 1989-90 was the company's first year of self-financing. Today, OGDCL is the largest Exploration Production Company in Pakistan, listed on all three exchanges of the country as well as the LondonStock Exchange.

A number of donor agencies such as the World Bank, Canadian International Development Agency(CIDA) and the Asian Development Bank provided assistance for major development projects in theform of loans and grants. OGDC's intensive efforts were very successful as they resulted in a number of major oil and gas discoveries between 1968 and 1982. Two oil fields were discovered in 1968which paved the way for further exploratory work in the North. During the period 1970-75, theCompany reformed the strategy for updating its equipment base and undertook a very aggressivework programme. This resulted in discovery of a number of oil and gas fields in the Eighties, thusgiving the Company a measure of financial independence. These include the Thora, Sono, Lashari,Bobi, Tando Alam & Dhodak oil/condensate fields and Pirkoh, Uch, Loti, Nandpur and Panjpir gasfields which are commercial discoveries that testify to the professional capabilities of theCorporation . OGDCL . (March 3, 2010)).Retrieved fromhttp://www.ogdcl.com/about-us/History.htm 1.2 Organizational Structure 1.2.1 Main offices OGDCL Head Office is located at Jinnah Avenue, Blue Area Islamabad and Regional Offices arelocated in Karachi and Multan. Besides this OGDCL has its Liaison Offices in Hyderabad, Sukkur,and Quetta for operational activities. (for details refer to appendix) (A.Javed, personalcommunication, march 3, 2010) 1.2.2 Main departments The main departments of OGDCL are corporate department, exploration and production departmentand technical services department. Each of the three departments is further subdivided.(For detailsrefer to appendix figure 5,3 ) 1.2.3 No of employees in OGDCL In OGDCl employees consists of management cadre, executive cadre and overall staff. Each cadre isdivided into pay groups and again each pay group is divided on the basis of all over Pakistan

meritemployees and on the quota of particular provinces. (A.Javed, personal communication, march 3,2010)

1.2.3.1 Management cadre The management cadre consists of M-I, EG IX and EG VIII and only 4 EG VIII employees are openmerit based and rest of the 10 employees are from four provinces, FATA and AK on the basis of quota. 1.2.3.2 Executive cadre In the executive cadre consists of EG VII(executive general), EG VI, EG V, EG IV, EG III, EG II,EG I and trainees. In it 143 employees are on the Pakistan merit base and rest of 1762 employees areon the basis of quota from four provinces, FATA and AK 1.2.3.3 Over all staff Over all staff consists of non-executive employees and trainees. There are 40 employees on the allover Pakistan open merit and rest of 9150 employees are from Singh, Punjab, NWFP, Balouchistan,FATA and AK on the basis of relevant provincial quota.(For details refer to appendix, table 1 ) 1.3 Principle area of business OGDCL is one of the largest and leading companies of Pakistan. The principle area of OGDCl isexploration and production of oil and gas. As the leading Exploration and Production Company inPakistan, OGDCLs primary objective is to enhance its reserves and production profile and ultimatelymaximize value for shareholders.OGDCL continues to accelerate production growth through utilizing cutting edge technologies,allowing the Company to utilize its significant reserves base and capitalize on the strong economicgrowth and accelerating energy demand in Pakistan. It exploits exploration Opportunities by buildingthe Companys future reserves portfolio through its large onshore exploration land. During the fiscalyear 2008-09 target of drilling is 52 wells. OGDCLs operating environment will be a major factor inallowing it to control its low cost structure. Within Pakistan, the Companys leading position alsoenables it to access economies of scale across its significant reserves base and operations. Thedomestic expansion remains OGDCLs core focus, the Company intends to grow and diversify its portfolio through selective international expansion in the medium to long-term. OGDCL implementsinternational best practices to ensure an efficient organizational structure and business processes thatare focused on core production. As part of OGDCLS restructuring plan, OGDCL has established anin-house technical services division, the Petroserv Directorate, whic services from core E&P activities. OGDCL

. (March 3, 2010).http://www.ogdcl.com/about-us/Strategy.htm 1.4 Competition faced and level of technology used Being one of the largest companies, OGDCL faces the competition of many other oil producingcompanies. The major competition faced by the company is Pakistan State oil (PSO) as well asforeign companies, such as MOL etc.As OGDCL is exploratory and producer of Oil and Gas Company in nature, technology used in it isvery much complex and comprehensive. Technology used in OGDCl for the production andexploration purpose is mostly imported from the foreign countries. Huge costs are incurred for importing these machineries from outside. Besides importing technology from outside various plantsand machineries that are manufactured inside the country are also used. (A.Javed, personalcomm Human resource department of ogdc Human resource department of OGDCL is one of the main departments of the OGDCL.Human Resource Deportment at OGDCL is being reorganized to manage people and develop their skills for meeting Companys requirements. Being the largest exploration and production Company,OGDCL seems to be an attractive company for talented and motivated people in which high levels of personal and companys performance are recognized and rewarded. Human Resource Departmentseems to ensure development of world class workforce, as per OGDCLs mission statement, target based working and performance based reward system has been evolved. 2.1 Functions of HR Department The Company is focusing on the human resource department, as it aims to motivate its employeesthrough proper placement, employee recognition, effective appraisals, empowerment, andcommunication and promoting employees skill development programs. Various human resource polices are being reviewed and rationalized by taking into account the industry norms to bring aboutan effective change in order to meet the challenges of highly competitive business environment. Ithelps to understand and evaluate the different and sometimes ambiguous views of human resourcemanagement by investigating its origins, explanatory models, technology and practice. 2.2 Number of employees in HR Department

In OGDCl, HR Department consists of number of employees under different job titles. There areround about 13 officers and 97 total staff, as well as there are also data processing officers. Detaileddescription is given below in HR Organogram ( for details, refer to appendix, figureunication, march 3, 201h separates Recruitment process in OGDCL is conducted under the recruitment section, which generates pool of potential candidates and acts as a real base to provide facilities of selection of new and oldemployees.

3.1 Recruitment and selection policies It is the companys policy to implement an appropriate recruitment system base on carefuldetermination of the required competencies and objectives by implying effective search and selectionmethods along with the efficient means of communication with potential candidates.It is the policy of the company that, when ever possible, positions should be filled through internal job posting and promotions.All departments heads (EDs, GMs, Managers) are to fully participate and contribute to the hiring process of their respective management staff in collaboration with HR Department. The hiring process/procedures shall be specified by the HR Department.All department heads are responsible for making respective description and job specification incollaboration with an Hr Department, for the purpose of allowing Hr to set annual hiring plan.All recruitment ( direct or through services contractors) shall be done through human resourcedepartment in compliance with the companys laid down procedures and standards, no individualshall conduct recruitment or hiring activity without the specific knowledge and involvement of EDhuman resources.Candidates will be selected on the basis of applicable recruitment tests ( for entry level positionsonly ), qualification, experiences, ability, interest, aptitude and adoptability to the specific jobrecruitments, as already defined in the respective position description.The salary offered will be with in approved salary policy guideline of the company (R. khattak, personal communication, March 5, 2010) 3.2 Functions of Recruitment Section Recruitment section basically performs the When ever any department in OGDCL seems to require new employee, it informs the HR Department to hire new employee for that. Then HR Department analyzes the real situation, whether there is real need of new employee or not.HR Department advertize the vacant position in the news paper and in the media to generate the poolof potential candidates and through the recruitment process hire the new employee for the specificrequired department.Same as mentioned above when ever any department feels the need of employee for the hire position,it informs the HR Department. On the behalf of that department HR Department recruit the employee by generating the pool of potential candidates.When ever there is pool of potential candidates, to select the most appropriate candidate for thevacant position, HR Department conducts examination, interview and short list the availableapplicants. (R. khattak, personal communication, March 5, 2010) 3.3 Practices of recruitment After circulation to every department they analyze that how many employees perform their duties andhow many are required and they take a deficiency with the scale.After the completion of circulation or survey they take the official approval from chairman and giveadvertisement through public relation department of the most required vacancies. The sources of advertisements used by HR department are news papers, media and internet.The recruitment procedure of the OGDCL is mostly related with CSS of Pakistan .i.e. as under:-Punjab 50%Sindh rural11.4%sindh urban 7.6% N.w.f.p 11.5%Merit 10%Baluchistan 3.5%F After the advertisement, they receive application from all over Pakistan and conducts writtenexamination. This examination is held in those departments, where the candidate want to join and thatdepartment send the result to recruitment section. OGDCl also hire the external

agencies, which provide facilities of conducting examination of applicants.The selection procedure is recently shortly changed and is as under:-Written Test 40%weightageExperience 30%weightageAcademic Qualification 30%weightageThe time for a written test is usually one hour. Those candidates who qualified the test are then sent acall for interview. Interviews are used to analyze the courage, boldness communication skill,convincing power and also his dealing with other people. (R. khattak, personal communication,March 5, 2010) 3.4 Recruitment types Regular employeesContract Basis employeesTrainees Special TraineesHiring through Contractor Classified appointment (R. khattak, personal communication, March 5, 2010) Selection 3.5 Selection Practices Selection process in OGDCL starts with preliminary interview of the applicant who qualified the test.Depending upon the position, preliminary interviews board is formed, who conduct the preliminaryinterview. An applicants knowledge, skills and attitude is judged on the basis of following factors.Education (academic and Professional), Previous experience, Applicable tests (for entry level positiononly), Interviews Referenceata The results of the candidates interviewed are compiled in the order of merit. After conductingthe preliminary interview, the successful candidates are preceded for the selection interviews,conducted by selection board. This selection board is formed while considering the positionsrequired. After selection interview, the successful candidates are required for pre-employmentmedical examination arranged by the HR department. In this way HR department completes theselection process and formulates the job offer. Job offer or appointment letter is delivered to thesuccessful candidates. This letter clearly spells out the terms and the conditions of employment andthe benefits applicable to the position. All management position offer letters are signed by ED(executive director HR), while Executive Directors position letters are signed by the chairman andCEO.When there is no suitable replacement available within the company and when all sources has beenutilized with no results to fill the vacancy with highly potential candidate, then company rehire an ex-employee on merit.For the requirement of certain position the company re-engaged the retired employees who are beyond the age of 60, after mutually agreed terms and conditions.In order to keep the track of attrition, to know the reasons leaving job and to collect the feed of leaving employee, the exit interview is conducted by the HR Department. This is also done in order toreduce employee turn over, because greater the employee turn over, greater will be the cost of employment. All these practices seem to be aligned with above mentioned policies. (R. khattak, personal communication, March 5, 2010) 3.6 Analysis To recruit the employees both internal and external methods are used with in the OGDCL, butanalysis reveals that the corporation gives preference to the internal method. The main draw back of this method is that it blocks the way for new generation which carry new ideas and knowledge.Further more the recruitment system is also influenced by the nepotism of politicians. Not onlyrecruitment of employees is influenced by the nepotism of politicians, but selection also. Employeesfor high positions are selected on the basis of personal relations and blood relationship.

ThoughOGDCL is the largest and very multifaceted organization, in spite of that there is no computerizeddata based system to record the data of employees 04%A.j.k 02 following functiontechnicaon http://www.scribd.com/doc/39246748/HR-Project-on-OGDCL http://www.scribd.com/doc/46264678/Cpm-Project-for-OGDCL-PAKISTAN http://www.sunnyvaledps.com/recruiting.html (asim)