Professional Documents
Culture Documents
Specification of Methods and Procedures For Acquiring The Information Needed.
Specification of Methods and Procedures For Acquiring The Information Needed.
“Not only had India… set up her own machinery for oil exploration and
exploitation… an efficient oil commission had been built where a large
number of bright young men and women had been trained and to do
hard work.”
Pandit Jawaharlal Nehru
India’s first Prime Minister
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 reflects
in the performance figures and aspirations of ONGC. The company has adopted
progressive polices in scientific planning, acquisition, utilization, training and motivation
of the team. 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 and gas and
related oil field services. Needless to emphasize, this was made possible by the men and
women behind the machine. Over 18,000 experienced and technically competent
executives mostly scientists and engineers from distinguished universities/institutes of
India and abroad form the core of our manpower. They include geologists, geophysicists,
geochemists, drilling engineers, reservoir engineers, petroleum engineers, production
engineers, engineering and technical service providers, financial and human resource
experts, IT professional and so on.
2
ONGC- Vision
To be a world class oil and natural gas company integrated in energy business with dominant
Indian leadership and global presence.
ONGC-Mission
World Class
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 shareholders’ value.
Retain dominant position in leadership in Indian petroleum sector and enhance India’s
energy availability.
3
ONGC-Objectives
HISTORY OF ONGC
In 1995, Government of India decided to develop the Oil and Natural Gas resources in
the various regions of the country in the Public Sector. With this objective, an Oil and Natural
Gas Directorate was set up towards the end of 1955, as a sub-ordinate office under the then
ministry of Natural Resources of Scientific Research. The department was constituted with a
nucleus of geoscientists, whose services were secured from the Geological survey of India.
A delegation under the leadership of Shri K.D.Malviya, the then Minister of Natural
Resources, visited several European countries to study the status of oil industry in those
countries and to as certain the availability of equipment, facilities and training Indian
professional for future oil exploration program. Thereafter foreign experts from USA, West
Germany, Romania and USSR visited India for advising the government. Finally, the visiting
Soviet experts drew up a detailed plan for geological and geophysical surveys and drilling
operations to be carried out during the 2nd Five Year Plan (1956-57 to 1960-61). They also
indicated requirements of equipment, materials and personal for execution of the work
program.
4
In April 1956, the government of India adopted the industrial policy resolution, which
placed mineral oil industry among the schedule industries, the future development of which
was to be exclusive responsibility of the state.
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 and as
sub-ordinate office of the government, to function efficiently in its gigantic task. To overcome
this difficulty, in August 1956, the Directorate was raised to the status of a Commission with
enhanced powers, although it continued to be a sub-ordinate office at the government. In
October 1959, the Commission was converted into a statutory body by an act of India
Parliament, which enhanced powers of the commission still further. The main function of the
oil and Natural Gas Commission (ONGC) subject to the provisions of the act, were "to plan,
promote, organize and implement programs for development of Petroleum Resources and the
production and sale petroleum and petroleum product produced by it, and to perform such
other functions as the central government may, from time to time, assign to it". The act further
stipulated various activities and steps to be taken by ONGC in fulfilling its mandate.
The most important contribution of ONGC however is its self-reliance and development of
core competence in E & P activities at a globally competitive level.
After the formation of Oil and Natural Gas Commission, government decided to convert it
into a public limited company. Thus a new company Oil and Natural Gas Corporation was
incorporated as a public limited company, under Company’s Act, 1956 on June 1993.
The new company obtained the certificate of commencement on August 1993.
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Born as a modest corporate entity within serene Himalayan settings on 14th August 1956 as
Commission, Oil and Natural Gas Corporation Limited (ONGC), has grown into a full fledged
horizontally integrated upstream petroleum company. Today, ONGC is a flagship public sector
enterprise and India’s highest profit making corporate, which has achieved the landmark since
inception, ONGC has produced more than 600 million metric tones of crude oil and supplied
more than 200 billion cubic meters of gas, thus fuelling India’s economy.
To achieve this sustained growth, ONGC decided to double the oil and gas reserves. In 45
years of operation ONGC accredited six billions tons of oil and oil equivalent reserves and
ONGC has drawn a plan to double these reserves in the next 20 years. Secondly, the global
recovery factor of ONGC is of the order of 28%; the target is to raise this to the level of 40%
over the same 20 years.
Out of the six billion tones of oil and gas reserve accretion, four billion tones are accepted to
come from offshore and deep waters. To improve recovery factor from the existing fields,
ONGC is investing Rs. 2,000 Crores in 15 Redevelopment Schemes.
Information Technology and Communication System are being integrated and upgraded. A
number of new projects – project PROMISE (Professional Review of Major Info com Systems
and Equipments), projects IMPETUS (Implementing, Maintenance & Procurement Efforts
through Upgraded Systems) are launched. All these projects are aimed at integrating InfoTech
resources, integrate company-wide ERP management system and facilitate better maintenance
and repair of equipment and facilities.
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ONGC Videsh, the wholly owned subsidiary of ONGC concluded a deal for 20 % firm in
another 20% carried interest in Sakhalin – 1 project. Estimated at US $ 1.7 billion, this is the
largest single foreign investment ever made by any Indian corporate.
ONGC Videsh also holds a 45% interest in Vietnam Offshore Gas Project and the project has
started production.
ONGIO International Limited, a 50:50 joint venture between ONGC and IOC, has
incorporated to provide training consultancy and services from drilling to dispensing, in India
and abroad.
With its Market Capitalization crossing Rs. 75,000 Crores and net profit crossing Rs.10, 000
Crores, ONGC has been ranked 1st in Economic Times 500 Corporate.
It has been ranked 326th in Financial Times Global 500 by Market Capitalization.
It has been ranked 133rd in Forbes 400 Global Corporate by Market Capitalization.
It has been ranked 1st in Business Today 500 Corporate by Net Profits.
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It was founded in November 1993 for innovation development of the future plans of ONGC to
achieve self reliance in related technology. The institute has developed expertise in the field of
Concept Evaluation and Risk Analysis, Geotechnical Engineering, Structural Engineering and
Materials and Corrosion Engineering.
The institute was established in 1984 to meet technological requirement of oil and gas field
with an objective to boost indigenous hydrocarbon production and improve the economies of
operation.
ONGC ACADEMY
The Academy, located at Dehradun, is the premier nodal agency for developing human
resources of the organization. The institute is committed to excellence in the cause of HRD and
the availability of the appropriate systems and procedures for the knowledge and technology
intensive, risky and complex oil and gas exploration and development industry in the energy
sector with a view to ensure managerial effectiveness, quality and productivity. ONGC
Academy is committed and is continuously striving for excellence in training programs
through innovative method and R&D activities.
The IRS was founded as a single source and multi service reservoir engineering agency with
objectives to integrate the skills and technologies for better reservoir management, prepare
development plans for new discovery to select and design enhanced oil recovery schemes,
develop techniques for importing well productivity, maximize hydrocarbons recovery keeping
the cost in mind with market realities. There are six online monitoring and reservoir appraisal
multidisciplinary groups for continuous reservoir management.
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GEOPIC at Dehradun has the largest computing facility of the ONGC and is one of the few
centres around the world where integrated processing and interpretation of different
geoscientific data from seismic to petrophysical, geological and reservoir engineering is carried
out.
It is the largest 2D & 3D seismic data processing centre in India with a proven capacity for
processing over 10,000 line km of marine and 5000 line km of land data annually.
The Institute, since its inception is engaged in relentless efforts in R&D and has rendered excellent
service in the areas of oil and gas well drilling technology. It has emerged as a premier R&D centre
KDMIPE is also located at Dehradun and was set up in 1962 as a research and training
institute with assistance from UNDP. It is the country’s premier centre for basic and applied
research in petroleum exploration.
The activities of KDMIPE are focused towards development of new methodologies,
technology upgradation, development of new concepts for exploration and exploitation,
development of hydrocarbon resources generation and upgradation of geoscientific data and
computer application.
SWOT ANALYSIS
1. Strengths
ONGC is the only company in India who is involved in offshore construction activities
relates to oil and gas projects for more than two decades.
It has rich experience over the last 25 years in its execution and possesses abundant
data associated with these projects.
Thee operational cost of ONGC is among the lowest in the world and its reserve level is
equivalent to 23 years of production.
ONGC can boost of installing 28 processor platforms, 132 well platforms and more
than 4,000-km submarine pipelines.
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2. Weaknesses
The purchase procedure of ONGC does not lead to feasible and past purchase
decisions.
Behaviors of the certain reservoirs in Mumbai have not been in line with the expectation,
which would enroll investment in the future.
3. Opportunities
The number of sedimentary basins in India is about 26, out of which 17 have been
discovered. Moreover, production has been commenced in 6 of them. Hence, there is
tremendous opportunity for growth in the future.
Oil exploration and development has been open to the private sector, hence ONGC can
overcome resource crunch by setting up joint venture with foreign companies.
ONGC has already obtained marketing rights for transportation fuels, this opens up the
opportunity to augment ONGC’s profitability through value addition consumer and
retail marketing.
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ONGC is poised to enter downstream refining in a big way. After the mini refineries in
Tatipaka, it has signed a share purchase agreement to acquire 37.4% equity held by M/S
Aditya Birla Group in Mangalore Refineries and Petrochemical Limited (MRPL). This
is in the line with the global integrated business model in the energy industry, to
insulate the financial from the volatility inherent in sectoral activities.
benchmark priced for goods and services, now ONGC is entitled to internationally
benchmark price for its output, except for natural gas.
4. Threats
The unemployed Basins are of acreage and would increase ONGC’s funding as
development cost.
With the opening of the oil exploration and development sector to the private sector,
there has been an increase in the international competitiveness.
International crude oil prices are highly volatile and any sharp down turn would affect
the profitability of the organization.
Security of the personnel and property is the major concern of ONGC, as in Oct. 2001 a
massive fire broke out in Gujarat field because of tampering of a well held by
miscreants engaged in pilferage, three miscreants perished in the fire and the cost of
property loss exceed Rs.5 Crore. The cost of insurance has increased, pilferage losses
are been sustained and operation has been restricted in sensitive areas.
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ORGANIZATIONAL STRUCTURE-ONGC
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DIRECTOR
EXECUTIVE DIRECTOR : E9
GROUP GENERAL MANAGER : E8
GENERAL MANAGER : E7
DY. GENERAL MANAGER : E6
CHIEF MANAGER : E5
MANAGER : E4
DY. MANAGER : E3
SENIOR OFFICER / EXECUTIVE : E2
OFFICER / EXECUTIVE : E1
ASSISTANT OFFICER / EXECUTIVE : E0
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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
"To create a value and knowledge based organization by inculcating a culture of learning,
innovation & team working and aligning business priorities with aspiration of employees
leading to development of an empowered, responsive and competent human capital".
HR Objectives
HR Strategy
Role of HR
Measuring HR Performance
HR Parameters have been incorporated in the MOU by ONGC since 1994-95, to systematically
and scientifically evaluate effectiveness of HR Systems, which enables and facilitates time
bound initiatives.
A Motivated Team
HR policies at ONGC revolve around the basic tenet of creating a highly motivated, vibrant &
self-driven team. The Company cares for each & every employee and has in-built systems to
recognise & reward them periodically. Motivation plays an important role in HR Development.
In order to keep its employees motivated the company has incorporated schemes such as
Reward and Recognition Scheme, Grievance Handling Scheme and Suggestion Scheme.
Incentive Schemes to Enhance Productivity
The Institute of Management Development is the premier nodal agency responsible for
developing the human resource of ONGC. It also focuses on marketing its HRD expertise in
the field of Exploration & Production of Hydrocarbons. ONGC’s Sports Promotion Board, the
Apex body, has a Comprehensive Sports Policy through which top honours in sports at national
and international levels have been achieved
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ONGC has undertaken an organization transformation exercise in which HR has taken a lead
role as a change agent by evolving a communication strategy to ensure involvement and
participation among employees in various work centers. Exclusive workshops and
interactions/brainstorming sessions are organized to facilitate involvement of employees in this
project.
Project Shramik
To move towards world-class systems, processes and practices, a project for integrated System
of Human Resource Automated Management Information for KAIZEN (SHRAMIK) based on
software platform SAP R/3 has been launched which is an attempt to address key issues in
HRM through comprehensive process re-engineering and remodelling of HR functions.
Participative Culture
Policies and policy makers at ONGC have always had the interests of the large and multi-
disciplined workforce at heart and have been aware of the nuances and significance of cordial
Industrial Relations. By enabling workers to participate in management, they are provided with
an Informative, Consultative, Associative and Administrative forum for interactive
participation and for fostering an innovative culture.
In fact, ONGC has been one of the few organizations where this method has been
implemented. It has had a positive impact on the overall operations since it has led to enhanced
efficiency and productivity and reduced wastages and costs.
Respect and dignity are the key values that underline the relationship ONGC has with its
human assets. Conscious about its responsibility to society ONGC has evolved guidelines for
Socio-Economic Development programmes in areas around its operations all over the country.
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Education
Health Care and Family Welfare
Community Development
Promotion of Sports and Culture
Calamity Relief
Development of Infrastructural Facilities
Development of the Socially & Economically Weaker Sections of Society Benefit and
Welfare
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PARAMETERS
YESTERDAY TODAY TOMORROW
Business judgment, Information Flexibility
Success factors Intuition Strategic Plan Agility
Mission Speed
Paternalistic Professional Empowered
Organizational Style Learning
Vibrant
Employees considered as… Hungry, Naked & Thinking and Fully evolved,
Defenseless Rational Beings completely satisfied,
creatures mature human beings
Driving people Driving people People drive themselves
Motivational Methods through basic needs through social &
intellectual needs
Role of HR Provide people with Motivate by As a Change Agent
food, clothing and providing As a Innovator
shelter. effective & fair As a Strategic Partner
appraisals and
compensation
systems
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ONGC considers the human resource to be its greatest asset in its stride to achieve corporate
excellence. The success of the company is due to its highly motivated, professionally
competent, committed multidisciplinary workforce comprising of scientists, technologists,
engineers and other support personnel. Several initiatives and measures have been taken to
ensure that human resource is managed and developed.
Headquarters-
At the headquarters Human Resource Development (HRD) and Employee Relations (ER) exist
as separate departments, each headed by a Chief.
Human Resource Group (HRG) which consists industrial engineers is a part of HRD
which performs certain distinct functions:-
Manpower Studies
Policy Making
Vacancy Creation
Succession Planning
Career Development
Dealing with IR matters
Contract Management
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The most valuable resource an organization possesses is undoubtedly its people. The HRD
philosophy of ONGC believes in continuously ensuring that the dynamism, competency,
motivation and effectiveness of the employees remain al high levels .
ONGC has always given great priority to Human Resource Management by formulating
enlightened personnel policies form time to time. The organization has taken various measures
to ensure that overall manpower strength is contained and utilized optimally.Recruitment has
been negligible and filling up of post falling vacant due to separations has also been avoided.
As a result of all these efforts, the overall manpower strength of ONGC has reduced from
44,548 as on 31.03.1996 to 40,226 as on 01.04.2001 a decrease of 8%.
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EMPLOYEE TURNOVER:
Despite increasing competition, there has been a consistent decline in employee turnover in
ONGC. The results indicate about 32% of the employees are in the age of 45 and above.
REDEPLOYMENT OF MANPOWER
Though redeployment of manpower is carried out on a regular basis depending on the specific
needs of a work centre, special initiatives were taken to redeploy manpower from NRBC and
CRBC due to reduced work programmes in these regions. From NRBC, 227 persons declare
surplus being redeployed. From CRBC,480+235 personnel had been deployed in phases. Inter-
regional redeployment is also planned and carried out on a regular basis. Always there is thrust
on re-deployment. This keeps on manpower revolving from the areas of redundancy to areas of
need
Training and Development in ONGC is a dynamic system continuosly active in achieving the
growth of individuals and the organization. With the rapid changes taking place in the field of
technology worldwide, it is essential to keep upto date with all the latest developments in the field
of information- production activities. Advanced technology and cost effectiveness have become
vital for gaining a competitive edge, IMD is the nodal agency which annually lands the training
activities of the organization which are implemented through the RTIs and STIs in the regions.
The organization has tried to adapt and reform training evaluation and feedback scheme to
continuously improve effectiveness of training and developmental system. There is an
elaborate to improve the quality of training programs. Each trainee fills a ‘Feedback form’ at
the end of a program, which is carefully analyzed by the program directors.
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To make training more relevant to the organization needs, senior executives are being involved
in the process. Besides development of managers, IMD is concentrating on development of
workers, union leaders, women employees.
Identification of training needs is another thrust area of IMD. Exposure to appropriate training
is a developmental mechanism for acquiring competencies for the present and the future.
Therefore efforts are being made to link training with performance appraisal and career
planning.
Keeping in view the organizational needs, new performance appraisal system for the
executives of E1-E6 has been designed with the assistance of Institute of Administrative
Management, New Delhi.
Role of HRD
In this environment the role of HR has evolved from the ‘Paternalistic Provider’ to that of an
‘Enabler’ and a ‘Strategic Partner.
Workforce Profile
A)
The work-groups are spread over 22 locations in the country, and form a part of six
geographical sectors.
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Employee benefits and services include any benefits that the employee receives in
addition to direct remuneration. A formal definition is—
Fringes embrace a broad range of benefits and services that employees receive as
part of their total compensation package—pay or direct compensation ---is based on
critical job factors and performance. Benefits and services, however, are indirect
compensation because they are usually extended as a condition of employment and are
not directly related to performance.
Employee benefits and services are alternatively known as fringes, service
programmers, employee benefits or hidden payroll.
benefit applies to those items for which a direct monetary value to the individual
employee can be ascertained, as in the case of pension, medical insurance, or holiday pay.
The word service applies to such items as a company cannot be readily established.
However, we have used the two terms interchangeably in the chapter. We also have no
objection against the use of the term fringes.
Nearly every organisation in our country provides benefits and services to its
employees. These fringes continue to grow in their importance. several reasons account
for this trend.
1. Mitigate fatigue.
2. Discourage labour unrest,
3. Satisfy employee objective
4. Aid recruitment,
5. Reduce turnover and
6. Minimise overtime costs
Fringe benefits
Fringe benefits help build up a good corporate image. Schemes like housing, educational
institutions, and recreational activities bring benefits to the society at large. In the case of
some, the benefits are direct for a religious programme or a sports event or a company
school, the company draws its clientele not only from the employees but also from
surrounding communities. In others, such as housing, there are indirect gains in terms of
reduced pressure on the limited living accommodation and release of public funds for
additional housing programmes. All these have wider dimensions than immediate gains to
the employees.
Fringe benefits may fail in their motivational effect as they are not tied to
employee performance but to organisation as a part of their larger social responsibility
actions.The arguments about motivational effect of benefits and services apart, fringe
benefits have come to stay and hence they need proper administration by HR experts.
Demerits of fringe benefits should not be ignored. Fringe benefits, for example,
could result in unhealthy competition among employees- work may inadequate, and
could demotivate employees if implementation is not transparent.
Employee benefits and services include a motley crowd of fringes starting from accident
compensation plans to paid holidays. To hold that a benefit is a fringe, there criteria need
to be fulfilled.
Going by the three criteria, many items are included in the category of fringes. Table 13.1
contains the list of fringes. It may be stated that the list is only suggestive.
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PRINCIPLES OF FRINGES
INSURANCE BENEFITS
Organisations offer life and health insurance programme to their employees. Most
organisations offer insurance at a cost far below what individuals would have to pay to
buy insurance by themselves.
COMPENSATION BENEFITS
Disability and worker’s compensation benefits are also employees. Employers contribute
funds to assist workers who are ill or injured and cannot work owing to occupational
injury or ailment. These benefits are regulated by the Workmen’s Compensation Act.
Pension Plans
Most organisations offer plans to provide supplementary income to employees after they
retire. These are either company-paid or joint employee-and-company-paid programmes
meant to supplement social security.
employee has served an organisation for a long time, there is no reason why he or she
should be denied the benefit of higher gratuity.
Organisations are discovering newer ways of rewarding their employees (see Fig.
13.1) Modi Xerox, for example, has instituted an annual Achievement Award, which
recognises employee contribution to customer satisfaction, profits, process improvement,
or team-spirit improvement through a citation and a cheque of Rs 500 to every team
member. In addition, level mangers- which offers a prize of Rs 3000 per head and a
plaque. Moreover, the national winners qualify for the Xerox President’s Award which
honors a unique contribution to sustained high performance by an individual or a team.
Club membership is highly popular. NIIT, for example, has set up a Managing
director’s Quality Club (MDQC) and more recently, a President’s Club. Typically
nominations come from all the regions, covering 2200 NIIT employees, and are based on
an employee’s contribution and performance, regions, covering 2200 NIIT employees,
and are based on an employee’s contribution and performance.
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On the other hand, the members of the President’s Club are noted on the basis of
speed and innovation. Once again, the 18 winners work closely with NIIT’s president to
enrich the organization. Similarly, Modi Xerox has instituted an Honours Club, which
recognizes outstanding performance, So far, 350 employees from the company have
bagged their honours, an all-expenses-paid holiday abroad.
Club membership is available for even non-members but who have stayed with
the organizations. For instance, NIIT has an Old Timfers Club for employees who, have
been with the company for five years, and a Real Old Timer’s Club for those who have
completed 10 years. Members of both the club receive special recognition along with
plaques. In addition, NllT has introduced paternity leave for men employees, with the
added options of employment and an additional Rs 200 conveyance allowance for new
parents. The new year day has been designated as 'Granny Gratitude Day' and is a
compulsory holiday for all. Colgate- Pa1molive, Modi Xerox and NllT conduct annual
painting contests for their respective employees children. NllT uses the award-winning
painting for its calendar.
Problems in Administration
The main problem in indirect remuneration is the lack of employee participation. Once a
fringe benefits programme is designed by the company, employees have little discretion.
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For example, the same pension usually is granted to all workers, Younger employees see
pensions as distant and largely irrelevant. Older female workers feel that membernity
benefits are not needed. The uniformity of benefits fails to recognize a workforce
diversity. Admittedly, uniformity leads to administrative and actuarial economics, but
when employees receive benefits they neither want nor need, these economies are
questionable.
Managers, too, have little interest in the benefits programmes and trade unions are
almost hostile to the schemes. Managers are not even aware of the company’s policy
towards benefits and their contribution to the quality of corporate life. Trade union
entertain a feeling of alienation as the benefits are likely to erode their base.
Since employees have little choice in their benefit packages, most workers are
unaware of all the benefits to which they are entitled. This lack of knowledge often
causes employees to request for more benefits to meet their needs. For example, older
workers may want improved retirement plans, while younger workers seek improved
insurance coverage for dependents. The result is often a proliferation of benefits and
increased employer costs. And perhaps even worse, employee confusion can lead to
complaints and dissatisfaction about their fringe benefit package, particularly when
employees do not have to contribute financially.
These problems can be avoided if the following lines are taken while
administering indirect remuneration. The steps are (see Fig. 13.2):
1. Establishing benefit objectives.
2. Assessing environmental factors,
3. Assessing competitiveness: How should our benefits compare to our competitors,
4. Communicating benefit information
5. Controlling benefit costs and evaluation.
ESTABLISHING BENEFIT OBJECTIVES
It is essential for the management to establish objectives for its benefit programmers . In
establishing objectives, the management may consider several factors. One such
consideration is employees preference for benefits. Personnel / HR outcomes- attendance,
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length of service, and performance – should also receive due attention in the objective-
setting process.
Assessing Environment
competitive prices for their products and services, managers look to reduce, or at least
curtail, increases in labour costs. As their products and services, mangers look to reduce,
or at least curtail, increases in labour costs. As indirect remuneration constitutes a major
chunk of labour costs, benefits and services receive tap priority in the cost-reduction
drive.
On the other hand, competition in the labour market to attract and retain
production employees creates pressure to match the benefits offered by others.
Assessing Competitiveness
More often than not, organisations offer benefits to match or outstrip those offered by
competitors. How to ascertain the competitors' benefit packages? These are assessed
through market surveys conducted by professional associations and consultants. These
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surveys provide data on the various benefits offered, their coverage, eligibility and costs.
The data allow employers to assess the competitiveness of their benefits and costs, with
those offered by others.
Effect on Costs Cost of fringe benefits is a reliable test of their effectiveness. Employee
benefit costs can be computed on the following lines:
1. Total cost of benefits annually for all employees.
2. Cost per employee per year.
3. Percentage to annual payroll.
4. Cost per employee per hour.
1. Examine the internal cost to the company of all benefits and services by pay roll
classification, by profit centre.
2. Compare the company's costs for benefits with external norms. For example, compare
its costs, average costs to averages by industry, and so on, for the package as a whole
and for each benefit.
3. Prepare a report for the decision-maker, contrasting Steps 1 and 2, and highlighting
major variances.
4. Analysis the costs of the programme to employees. Determine what each employee is
paying for benefits, totally and by benefit.
5. Compare the data in Step 4 with external survey data.
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6. Analyse how satisfied the individual is with the employer's programme as compared to
the competitor's programme.
Periodic action on the above lines would not only control benefit costs but would
also ensure usefulness of fringe benefits.
Current benefit packages have evolved over the years from plans that addressed
the basic needs of the workers and provided minimum benefits to the individuals. Today,
we see a much more complex pattern of plans with enhanced flexibility, tailored to meet
the needs of individuals and costing public sector and private sector organisations dearly
in terms of rupees. Employees in general are more educated, more sophisticated and more
demanding of remuneration including fringe benefit. Employers are, therefore, required
to devise newer benefit plans to attract and retain competent personnel, keeping a watch
on the benefits costs. Certain guidelines to make benefit programmes more effective are
given here.
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DIFFERENT POLICIES
1. ADVANCE
2. ALLOWANCE
3. DISCIPLINE
4. ESTATE AND HOUSING
5. ESTABLISHMENT MATTERS (RESPONSE TIME FRAME)
6. GENERAL ADMINISTRATION
7. INCENTIVE & REWARD SCHEME
8. INDUSTRIAL RELATION
9. JOB ROTATION & TRANSFER POLICY
10. LEAVE ROLES
11. LEGAL
12. MEDICAL
13. OFFICIAL LANGUAGE (RAJBHASHA)
14. PAY
15. REIMBURSEMENT AND CLAIM
16. SERVICE ROLES
17. SEPARATIONS
18. TRAINING & FINANCIAL EMOLUMENTS/
HONORARIUM
19. TRAVELLING ALLOWANCE
20. TRUST
21. WELFARE
22. HOSPITALITY
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WELFARE POLICIES
1. GRATUITY ROLES
2. HOLIDAY HOME
3. LEAVE FARE ASSISTANCE
4. SCHEME FOR Ex GRATIA TO PRE 15.10.1959 EMPLOYEES
5. AGRANI SAMMAN Ex GRATIA BENEFITS SCHEME
6. CHILDREN EDUCATION ALLOWANCE
7. HOUSE & CONVEYANCE MORTGAGE REDEMPTION SCHEME
8. TRANSPORT/ BUS FACILITY
9. SPECIAL AWARDS TO CHILDREN ON SECURING POSITIONS
10. ONGC SCHOLARSHIP FOR SC/ ST STUDENTS
11. Ex – OFFICIO PRESIDENT TO OFFICERS CLUB AND
MAHILA SAMITI
12. CORPORATE CITIZENSHIP POLICY
13. ONGC’s SPORTS POLICY
14. REIMBURSEMENT OF ADDITIONAL CANTEEN
SUBSIDY TO THE EMPLOYEES OF UNIONISED
CATEGORY
15. ONGC EMPLOYEMENT ASSISTANCE SCHEME
ADVANCE
ALLOWANCE
1. PRODUCTIVITY ALLOWANCE
2. OFFSHORE HARD DUTY ALLOWANCE
3. SHIFT ALLOWANCE
4. NORTH EAST (NE) ALLOWANCE
5. NON- PRACTISING ALLOWANCE (NPA)
6. TRIBAL AREA ALLOWANCE
7. COMPOSITE HILL ALLOWANCE
8. DRILLING ALLOWANCE
9. REMOTE LOCALITY ALLOWANCE
10. OPERATIONAL ALLOWANCE
11. OVERTIME ALLOWANCE
12. CONVEYANCE MAINTAINANCE REIMBURSEMENT
EXPENDITURE (CMRE)
13. TRANSPORT ALLOWANCE
14. HOUSE RENT ALLOWANCE (HRA)
15. JOB LINKED ALLOWANCE
16. HOUSE RENT RECOVERY (HRA)
17. SPECIAL ALLOWANCE FOR FIRE PERSONNEL
18. KIT MAINTAINANCE ALLOWANCE
19. FOOD COMPENSATORY ALLOWANCE
20. CHARGE ALLOWANCE FOR ED/AED/GGM
46
MEDICAL
RESEARCH METHODOLOGY
DEFINATION OF RESEARCH :
According to Clifford Woody , ‘ It comprises defining and redefining problems;
formulating hypothesis or suggested solutions; collecting, organizing and evaluating data;
making deductions and reaching conclusion; and at last, carefully testing the conclusions
to determine whether they fit the formulation hypothesis.’
RESERCH DESIGH:
DESCRIPTIVE DESIGN :
“ These desigh are used to establish accurate descriptions of variables relevant to the
decision being taken without demonstrating the existence of the relationships between
variables.”
SAMPLE DESIGN
The sample design is usually consistent to the ‘ relevant popularion ’ specific to the
research problem.
The researcher concentrate on three things while designing the sample.
Sample Unit: The sample unit decided was from E-1 level to E-6 level. ie from
Officer to General Manager
48
From where the sample was selected : TEL BHAVAN, KDMIPE, GEOPIC
Branch of ONGC.
1. Sample size was 60 which cannot be true respective of the company having more
than 21000 executives in office work. More response was collected from the
executives in office work response so collected have across the corporation
2. The efforts has been made to distribute the questionnaire in proportion of the
employee in different business groups to have a true representative of all the
business group. The response received are not in similar proportion.
5. It was observed that upon a certain extent executive were trying to get a idealistic
response there after a correction factor has to be done.
Q.1) The company has excellent Benefits & Welfare Facilities for the employees
and their families.
FINDINGS : 98% of the people agree that company has excellent benefits
& welfare facilities.
FINDINGS : 82% Employees agree that benefits are fair for responsibilities,
FINDINGS : Almost 44% employees agree that job rotation & transfer is
Based on organizational requirement while 23% employees
Strongly disagree to this.
Q.7) All the system facilities & utilities are fully documented.
FINDINGS: More than 50% employees agreed & 40% strongly agree that
SAMPARC is effective.
Q.13) The present ONGC Retirement policy is beneficial to secure the future.
FINDINGS: 15% Employees agree that certain employee benefit are biased
While 40% were neutral but 35% disagree to this.
FINDINGS: 90% Employees are satisfied with the medical facilities while
3% are dissatisfied.
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FINDINGS: 96% Employees are satisfied with the allowances & advances
While 1% disagree to this.
Q.19) Get all information about the events and affairs of the company which have an
effect on the work
FINDINGS: 78% Employees agree that they get all information about the
Events and affairs of the company.
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FINDINGS: 65% Employees agree that they receive appreciati15% strongly disagree to
this & 20% were neutral.
Q.21) Have good opportunities to learn new skills and new jobs.
FINDINGS: 82% Employees agree that they have good opportunities to new
Skills & new jobs, while 5% disagree.
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FINDINGS: More than 50% employees agree that the current retirement
Policy is satisfactory, while 20% disagree & 22% were neutral.
FINDINGS: 53% Employees are satisfied with the ONGC retirement policy, while
33% are neutral & 14% disagree to this.
62
FINDINGS: 75% Employees are satisfied with the House Building Advance scheme,
while 12% disagree to this.
FINDINGS : 95% Employees are satisfied with the Children Educatuon allowance
While 2% are dissatisfied.
SUGGESTIONS
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Future policy planning in this area will have to keep in view some fresh
reference points. Non unionization and skill shortage are no more relevant for
policy considerations.
Devise new ways to involve workers and their representatives at all levels of
planning and implementation.
CONCLUSION
64
The study can be concluded by saying that the Executives have a positive attitude
towards employee benefits and services. The Managers really appreciate the Benefits and
Services provided to employees. The Managers are ready to empower employees by
giving responsibility and accountability, Information , better means of communication ,
opportunity to create new ideas and to use them to enhance Quality of work , Motivating
them getting their participation and involvement in work decisions , and rewards.
65
BIBLIOGRAPHY
www.ongcindia.com
www.ongcvidesh.com
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QUESTIONNAIRE
Name -
Age -
Gender -
Length of tenure in the organization
-
Designation -
Strongly Dis Strongly
Agree Neutral
Agree agree Disagree
1
6 Certain Employee Benefits are biased.
1
7 Medical facilities are adequate & provided on time.
1
8 All the allowances and advances are provided on time.
2
4 The VRS scheme of ONGC is satisfactory.
2
5 The House Building advance scheme is satisfactory.