A

SUMMER INTERNSHIP REPORT

ON

“Linkage of incentives & benefits schemes with employees

motivation”

AT
ONGC (Ahmedabad)

Presented By,

Shefali Banodiya
Introduction
of ONGC
 Oil & Natural Gas Corporation Limited properly known as ONGC.

 This is India's no.1 company engaged mainly in exploration ,development and production of
crude oil, Naturals gas and some value added products.

 The organization was born over about five decades ago on 14th August 1956.

 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 Registered
office at Delhi.

 ONGC today is endeavouring 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 specific energy business.

 ONGC Videsh Limited (OVL) is a wholly-owned subsidiary of Oil and Natural Gas
Corporation Limited (ONGC) .

 OVL,over a period of time has grown to become the second-largest E&P company in India
both in terms of oil production and oil and gas reserve holdings.
 ORGANIZATIONAL SET OF ONGC

From staff strength of 450 employees in the year

1956-57 ONGC staff from grown up to 35000 at
present.
There are about 15 broad disciplines under four
main heading of :-
oEngineering Services
oDrilling Services
oGeophysical services and
oAdministration and other support services
Recognition & Rewards
 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 all Indian corporate

Topped the list of sensex Indian companies figured in

Business Weeks first annual ranking of Asia‟s 50 best-
performing listed companies drawn from a list of 625 Asian
firms, ONGC was ranked „third‟ among the 50 best Asian firms.

Ranked 18th amongst 50 publicly traded global companies in

oil & Gas industry based on market capitalization and 15th
amongst 2 listed integrated Oil & Gas companies.
 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. Market Capitalization, Net Profit and Net
Worth.

Ranked 11th in the Economic Times 500 Ranking with the highest
Market Capitalization, and Net Profit, 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 Business World Survey released n Business World Magazine
(June 2006).
 VISION 
MISSION
&
OBJECTIVES
OF ONGC
 To be world class Oil & Gas Company Integrated in energy business with
Dominant Indian leadership and global presence.

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 health, safety and environment toenrich quality of Community life
Foster a culture of trust, openness and mutual concern to make working a
Stimulating & challenging experience for our people.
Strive for customer delight through quality products and services.

 Integrated in Energy Business

Focus on domestic and international oil & gas exploration and production business opportunities.
Providing value linkages in other sectors of energy business.
Creating growth opportunities and maximize shareholder value.
 
Dominant Indian Leadership
Retain dominant position in Indian Petroleum sector and enhance India's energy availability.
 Objectives
• Assist in conservation of oil, more efficient 
use energy and development of alternate 
source  of  energy.

• Environmental protection & Observe 

100%  safety in work. 
 Research
Methodology
 OBJECTIVES
(A) Primary objective :-

I. To know linkage of incentives & benefits schemes with employees motivation at ONGC.

(B) Secondary objective :-

I. To know the satisfaction level of employees from the HR department & the travelling
allowances provided by organization.

II. To know the opinion of employees, on What basis the incentives should be given to the
employees?

III. To know which allowances motivates the most.

IV. To know the most preferable educational facility used by employees.

V. To know the employee's opinion for the improvement of the workplace environment.

VI. To know the most important motivating factor for the employees.
Research Type : Basic research

Research Design : Descriptive research

Research Approach : Personal Interview

Research Instrument : - Questionnaire

(open ended & close ended)
- Observation
- Interview
Data Sources:

Primary Data – I collect primary data through the

questionnaire fill up by employees.
Secondary Data - ONGC manual
Internet

Sample size : 150 employees

Sampling Method : Non-probability- convincing method.

Sampling Area : ONGC (Ahmedabad)

Data Interpretation
&
Analysis
Q.1. In your opinion which type of incentives or benefits
motivates more?

Financial Incentives
30%

Both
53.33%

Non Financial
Incentives,
16.67%
Q.2. Which of the following financial incentives motivates
you the most ?

Attractive Salary
High rate of bonus & wages
27% 27%

Housing facility,
Medical/Education 16%
allowance etc
23%

Insurance
7%
Q.3. Which of the following Non-financial incentives
motivates you the most ?

Encouragement for self & career development 17%

Fair opportunity of promotion 20%

Delegation of authority to subordinates 13%

Recognition of good work 18%

Designation & status 20%

Labour participation in management 12%

Q.4. How far you are satisfied with the incentives provided
by the organization?
 
Highly Satisfied
6.67%

Neutral
37.33%

Satisfied
56%
 Q 5. Show your level of agreement from the following statements:

Particulars Mean Std.Dev

     
Reasonable periodical increase in salary

1.76 0.58711
Job security exist in the company

1.64 0.48161
Good relationship with co-workers

1.8533 0.61728
Performance appraisal activities are helpful to get
motivated
1.68 0.57135
Job facilities exist in the company

1.8 0.47769
Q 6.Tick any one from the following factors which motivates you the
most?

45.00%

40.00% 42.00%

35.00%

30.00% 32.67%

25.00%

20.00%

15.00%
14.00%
10.00% 11.33%
5.00%

0.00%
Pay for time not Insurance Benefits Retirement benefits Personal service and
worked family & friendly
benefits
 Q.7 Which allowances from the following motivates you most ?

Leased Accommodation 28%

Productivity Allowance 4%

Food Compensatory Allowance 25%

Overtime Allowance 4%

Hard Duty Allowance 5%

House Rent Allowance 34%

Q.8. Please tick from the following travelling allowance which you
prefer most?
160 150 150
120 114 109 115

80
36 41 35
40
0 0 0 0 0 0 0
0

Satisfied Dissatisfied Can’t say

 Q.9. Which of the following Educational facility provided by
organization, you avail the most?

Transport 25%

Hostel subsidy 3%

Reimbursement of Admission Fee 25%

Special award scheme 4%

Merit scholarship 5%

Children’s education allowances 21%

Central school 17%

Q.10.Pick out the most important motivating factor for the employee
performance from the following:

Incentives
Annual given
Increment 14%
20%

Leave policy
Travelling practiced
allowances 18%
19%

Medical
allowance
Education benefit
allowances 13%
15%
 Q.11.From the following, which incentives do you want from the
organization to implement?

0.7
0.6 64.00%
0.5
0.4
0.3
0.2
0.1 16.67% 13.33%
0 6.00%
v es v es ve
s
v es
e nti e nti e n ti
e nti
i n c
i nc i n c
i n c
ase sed sed sed
ity
b ba ba ba
o r tus n cy n ce
ni st
a t e a
Se ob p e
o rm
& J o m e rf
h ip C P
s
b er
e m
M
 Q.12.What is the reason for selecting your present job?

Better career 15%

Challenging 4%

Incentives/ Rewards 10%

Closer to residence 10%

Friendly atmosphere 13%

Job Security 16%

Multi National Company 16%

Good salary 16%

 Q.13 What changes can be made to improve the work place
environment?

Answer
70%

60% 64%

50%

40%
36%
30%

20%

10%

0%
Given Not Given
 Suggestion of employees
50.00%

45.00%
44.79%
40.00%

35.00% 35.42%
30.00%

25.00%

20.00%
19.79%
15.00%

10.00%

5.00%

0.00%
Infrastructure Neat & Clean Changes in PC's
Q.14 Are you satisfied with the support from the HR department?

Neutral
22%

Satisfied
78%
Crosstabulation between type of incentives & benefits motivates
more * No. of year of service
70
62
60

50

40

30 27

20 18
14
10 10
10
4 5
0 0 0 0 0 0 0
0

Financial Incentives Non financial incentives Both

Crosstabulation between satisfaction with the incentives provided by
the organization* Gender

70
62
60

50

40
40

30
22
20 16
10
10

0
0
Highly Satisfied Satisfied Neutral
Male Female
Hypothesis
Testing
 Chi-square
H0 : Satisfaction with the support from HR department is not depend on no. of year service.
 
H1 : Satisfaction with the support from HR department is depend on no. of year service.

Chi-Square Tests

Value Df Asymp. Sig. (2-sided)

Pearson Chi-Square 3.439a 4 .487

Likelihood Ratio 4.342 4 .362

Linear-by-Linear Association .052 1 .819

N of Valid Cases 150

Null hypothesis do not rejected

 Findings
&
Recommendation
 FINDINGS
 
1) All the employees of the ONGC are fully satisfied with all the incentives given by the company.
(Ans.4)

2) Employees are also well satisfied with the travelling allowance, education allowance, leave policy,
& medical facility given by company.(Ans.6 & 8)

3) House rent allowance & leased accommodation are most motivated allowances for the employees.
(Ans.7)

4) Transport subsidy & reimbursement of fees are most educational facility used by employees of
company.(Ans.9)

5) Annual increment is one of the most motivating factor for the company.(Ans.10)

6) Here 44% employees are agreed that on the performance basis the incentives should be given.
(Ans.11)

7) Employees wants neat & clean atmosphere around them & also they wants some other changes.
For that they can more concentrate on their works.(Ans.13)

8) All the employees are satisfied with the support of HR department.(Ans.14)

 Recommendation

 Here, employees are suffering from problems in computers.

Now a day’s whole works is depends on computers, if
company can change the pc’s or repairs it, then the work
should be done effectively & efficiently.
 The employees wants neat & clean atmosphere. So that they
can more able to concentrate on their work.