CHAPTER 1

INTRODUTION

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INTRODUCTION

Human Resource Management (HRM) is the strategic approach to the effective

management of people in a company or organization such that they help their
business gain a competitive advantage. It is designed to maximize employee
performance in service of an employer's strategic objectives. Human resource
management is primarily concerned with the management of people within
organizations, focusing on policies and systems. HR departments are
responsible for overseeing employee-benefits design, employee recruitment,
training and development, performance appraisal, employee promotion and
reward management, such as managing pay and benefit systems. HR also
concerns itself with organizational change and industrial relations, or the
balancing of organizational practices with requirements arising from collective
bargaining and governmental laws.
Many businesses have a promotion policy in place. This sort of policy details
required qualifications for each job at the company and explains how employees
can get promotions. Most policies consider an employee's merit. In other words,
they consider who deserves the promotion. Merit may be determined by
education, work history, seniority, loyalty to the company or other factors.
When there are vacancies in an organization, they can be filled up by the
internal or external candidates. Though the organization prefers to fill up the
vacancies by the external candidates through the selection procedure, the
internal candidates may also apply for post and may be tested and selected for
higher level job in the organizational hierarchy at par with external candidates.
Is such upward movement of an employee a promotion? Or it is purely
selection? It is purely a selection. If the organization prefers to fill a vacancy
only by the internal candidates, it assigns that higher level job to the selected
employee from within through promotion tests. Such upward movement can be
said as promotion.
Through this policy, the organization facilitates growth & advancement of its
employees. This policy enhances the upward mobility of employees &
complements the organization values encouraging employee development.
The organization understands that in the process of meeting company’s
objectives, the job responsibilities of an employee may change or enlarge. The
organization intends to provide maximum opportunities for promotion,
consistent with the business needs & excellence, affirmative action, equal
opportunity & a steady performance.

OBJECTIVE
 To understand what promotion policy is.
 To study the Promotion Policy in two Indian Companies.

SCOPE
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The scope of the study covers in depth, what is Promotion Policy, why
Promotion Policy should be a culture in an organization and is limited to two
companies ONGC & HPCL. This is incorporated in the above organizations
through different initiatives and programs.

RESEARCH METHODOLOGY-

Research Design:
Research design has the characteristics, problem definition, specific methods of
data collection & analysis, time required for research project.
The research design used for this study is descriptive in nature.

Research Method:
The research paper is based on case study method.
Data Sources:
Secondary data: Collected from books, official websites of organisation, , and
other sources.

PLAN OF THE STUDY-

Chapter 1 includes the introduction, objectives, scope, research methodology &

limitations of the study.

Chapter 2 focuses on the theoretical background of the study.

Chapter 3 has company profile and promotion policies in ONGC and HPCL.

Chapter 4 includes findings & analysis of secondary data.

Chapter 5 explained the conclusion, of the study.

LIMITATIONS-

Due to Covid-19 pandemic situation, it was not poss to collect primary

information.

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Collecting information through internet made all information limited.

Every information that have given is based on internet.

4
 CHAPTER 2

THEORETICAL
BACKGROUND

5
Definition:-

Taking an employee to the next level of grade and designation is termed as

promotion. A promotion is an upward advancement of an employee which gets
him/her to a higher position, better pay and privileges, bigger profile and job
responsibilities.

 
“Promotion is the advancement of an employee to a better job-better in terms of
greater responsibilities, more prestige or status, greater skill and especially,
increased rate of pay or salary. —Pigors and Myers
An employee’s promotion is elevating him/her to a higher job role with more
roles and responsibilities so that he or she is able to meet the specifications of
the next profile in cadre.
What is Employee Job promotion policy in Human Resource Management
(HRM)?
“Employee Job Promotion refers to the upward movement of employees within
the company for a new or higher job role, tasks and responsibilities”.
In human resource management, it is important to have a robust promotion
policy communicated explicitly to the employees. Through the job promotion
policy, criteria and terms of recommending and approving positions in the
organization are governed.
According to a survey, there are a very few organizations, which explicitly
announce their job promotion policy and criteria among employees. A well
prepared and communicated promotion policy sets the tone for the employees.
Sometimes, employee expects a promotion for this performance without
realizing his potential.
A promotion should be offered to employees who are prepared and have the
potential to take up new roles. However, a good performer should be rewarded
and not promoted. Organizations tend to reward performers by promoting them
without understanding their potential to take up the new profile which they will
be given upon job promotion.

6
Eg. An individual contributor performing well in his role, if promoted to handle
a team with added responsibilities which he or she may not be good at, can
result in a wrong decision. At times, employees fail to perform also if they are
entrusted with additional responsibilities.
Therefore, it is advised that recommendations for promotion should be well
evaluated through a series of competency assessment so as to understand the
gap between the current level of performance and expected levels, in order to
avoid any organizational fiasco.
Promotion is a critical stage in the life cycle of an employee as well as for the
organization. It is very important to select the right candidate at the right time
for promotion. Potential to add more responsibilities and exhibiting good
performance in the current role are two different things; organizations often
misunderstand the Performance and Potential. The two Ps however similar they
may sound are different and are to be assessed differently.
What is the Employee promotion Strategy, criteria at workplace?

Promotion is considered one of the m most important factors that lead to

increase the performance of employees in organisations, where the wages are
not only thing that aim to the employees in the organisation, but the
achievement of social and moral status and seeks to achieve the employee in his
community. And therefore, the promotion has the strongest effect among the
various factors which are working to achieve the goals sought by the
organisation. Promotion can, therefore, improve the effectiveness of an
organisations structure in order to meet the target and, at the same time, can
considerably increase the effectiveness of its employees through assignment of
suitable positions.
“Promotion is the most common form of internal mobility of personnel in an
organisation. In fact, it is the rarest case that an individual who joins an
organisation at a position at the beginning of his career retires at the same
position. He may not be transferred; he may not be demoted; he may not be

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separated; but certainty, he is promoted. Promotion is an essential feature of an
individual’s career. Promotion is advancement in the organisation which
involves a change from one job/ position to another that is better in terms of
status and responsibility. Ordinarily, the change to better job is accompanied
with increased monetary compensation and privileges”.

According to Shab, “Promotion is the transfer of an employee from the current

job status to the highest functional centre, from which he can get the biggest
advantages of a physical, as well as setting a moral better than it was before the
promotion process. And, the promotion may be from one job to another with
greater responsibilities, powers and authorities, and may be from one degree to
other in the same job.”

According to Dale Yoder, “Promotion providers incentive to initiative,

enterprise and ambition; minimizes discontent and unrest; attracts capable
individuals; necessitates logical training for advancement; and forms an
effective reward for loyalty and cooperation, long service, etc.”

However, from the perspective of the researcher, the promotion is one kind of
employees movement that means transfer of an employee from one job with the
lowest administrative level to the function of an administrative higher level,
with greater responsibilities, powers and authorities, and be the best physical
and moral advantages. On the other hand, the researcher believes that the
promotion may be defined as an upward to the top advancement of an employee
in an organisation to another job, which command better pay or wages or
prestige or better working environment, hours of work facilities and a higher
rank.

PURPOSE OF PROMOTION
The purpose of promotion can be stated as follows:
1. To put an employee in a position, when he will be of greater use to the
organisation and when he is expected to derive increase personal satisfaction
and have an increase in his emoluments.
2. To recognize an individual’s performance and reward him for work so that he
may have an incentive to forge ahead.
3. To boost morale and encourage loyalty and help develop a sense of belonging
so far as an employee is concurred.
4. To promote job satisfaction and to motivate an employee to continue in the
organisation.
5. To attract suitable and competent employees to the organisation and finally;
6. To provide opportunities to an employee (who has not succeeded in gaining
promotion), to enhance his skills and abilities required for superior
performance.

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OBJECTIVES OF PROMOTION

The objectives of the promotions are as follows:

1. Motivate of employees to make a greater effort to work and achieve higher

productivity.
2. The development of the capacity of individuals to achieve job enrichment to
them through change his business which they work expansion of task.
3. Meet the needs of organisations by the individual want to fill the vacant
business at the senior management levels.
4. Investigate the stability and job security for all employees in the organisation.
5. Promote and motivate employees to high productivity.
6. A promotion works to support stability in the work.
7. A promotion works to attract competencies to the organisation.
8. A promotion helps to achieve the affiliation to work.
9. A promotion works to strengthen the relationship between management and
employees and supports human relations among employees, which helps to
achieve a high level of job security
10. A promotion helps to spread the spirit of competition between individuals,
which works to make an extra effort from the employees in the organisation.
11. A promotion works on the preparation of leader’s administrators in the
organisation
12. A promotion helps attract qualified individuals to work with organisation,
and through the best promotion policy in the organisation.
13. To impress the other employees that opportunities are available to them too
if they also perform well.

TYPES OF PROMOTION

Promotions granted to employees in organisations are divided into three types:

1. Horizontal Promotion: This type of promotion is used when an employee is

transferred in the same category, or when an employee moves within the same
department, from one department to another or from one factory to another
factory.

2. Vertical Promotion: It is one type of promotion which means when an

employee is promoted from a lower category to higher category with greater
authority and responsibility, pay and status.

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3. Dry Promotion: It is also one type of promotions that means when an
employee is promoted to higher category without increase in salary, it is called
‘dry promotion’ with greater authority, responsibility and status.

4. Open and Closed Promotion: Open Promotion is a situation wherein every

individual of an organization is eligible for the position. Closed Promotion is a
situation wherein only selected team members are eligible for a promotion.
Benefits of Employee Promotion.

BASIS OF PROMOTION

Promotion can be made on various bases. Following are the major ones:

Seniority as a Basis of Promotion: According to this system the period of time

spent by the individual in the post is considered as the foundation upon which
the promotion process, also according to this system, the individual who is
serving a longer period with his colleagues at work, it has priority in the
promotion, irrespective of his efficiency.

The advantages of seniority as a basis of promotion are:

1. Easy way for the promotion of employees
2. Objectivity and avoids favouritism and discrimination
3. Given to all employees who have long periods of time at work
4. Encouragement workers to stay in the organisation and not leaves to the
prospect of losing their seniority when they leave work.

The disadvantages of seniority as a basis of promotion are:

1. It kills the ambition and creativity of qualified employees.
2. The reduction of competition between employees.
3. The arrival of some of the workers incompetent to leadership positions in the
organisation.
4. It works to leak best competencies of employees to outside of the
organisation.
5. Length of service in the current position may not be presumption of success
in the future occupation.

Merit as a Basis of Promotion: According to this system, the efficient

employee who is characterized by good performance and activity, committed
systems, sincere in his work, the secretary on the property; it has priority in the
promotion irrespective of his seniority.

The advantages of merit as a basis of promotion are:

1. The organisation can attract the best people to work.

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2. It motivates individuals to make a greater effort to work in order to get a
promotion.
3. A promotion here working to get employees on the biggest skills and
knowledge to work.

The disadvantages of merit as a basis of promotion are:

1. Measuring the efficiency of employees is very difficult.
2. A promotion will be here on the past achievement, efficiency but not the
future success.

Seniority-Cum-Merit of Promotion: This system is the combination between

the seniority and merit, on condition the person who is being promoted to a
certain level of competence and capacity; also he must have spent a certain
period of time to work for the company. There are several ways in striking the
balance between these two bases:

1. Minimum length of service and merit, under this method, all those
employees who complete the minimum service, say five years, are made
eligible for promotion and then merit is taken as the sole criteria for selecting
of the employees for promotion from the eligible candidates.

2. Measurement of seniority and merit through a common factor Minimum

merit and seniority, in contrast to the earlier method, minimum score of
merit which is necessary for the acceptable performance on the future job is
determined and all the candidates who secure minimum scores are declared
as eligible candidates. Candidates are selected for promotion based on their
seniority only from the eligible candidates.

BENEFITS OF EMPLOYEE PROMOTION

1. Expectation:
Employee Promotion is one of the main goals of employees working hard.
Thus, it turns into their expectation. When employers don’t fulfil these
expectations, they end up losing employees.
A study conducted shows that 40% of the millennials expect a promotion in one
to two years. It also states that if not provided with one, they will leave a
company in search of opportunities elsewhere.

2. Reduce Attrition:
Employee Promotion often includes a pay raise which acts as a huge
motivation. This in return further reduces attrition. A survey published shows
35% of employees quitting their job because of no pay raise in a year.

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3. Motivation & Productivity:
As stated above, employee promotion is a big tool for career advancement
and employee retention. It is because when employees get a chance to grow
they stick with a company. This motivation ultimately correlates to higher
productivity.

4. Cost-Efficient:
Internal employee promotion involves less cost than hiring new ones. This is a
fact that is shown in a study published by The Wall Street Journal. It was found
that companies pay 20% more in onboarding a new hire instead of internally
promoting one. This harms the desired cost-cutting measures of a company.

5. Career Growth:
Employee promotion facilitates the very important career path and growth of an
individual. A statistic in 2017 showed that lack of career development is one of
the key reasons for attrition. Even currently, it is bound to be one of the main
concerns of employees.

6. Need to Manage:
Employee Promotion often brings new responsibilities that initiate a sense of
management. This sense of management is a key factor in employee satisfaction
as it helps them grow. In a detailed study, it was found that 45% of the
millennials are keen on managing others.

7. Rewards and Recognition:

Employee promotion is a crucial element of an organization’s rewards and
recognition program. This is because a study shows more than a quarter of
employees leave the organization for lack of rewards and recognition.
This reduces retention, employee engagement, and motivation.

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Promotion strategies should be carefully crafted at workplace as these depend
upon a number of factors other than just performance. Every organization has
different strategies of employee promotion. Here are some commonly used
criteria which many of the Indian organization follow:
Length of service – it is important for an employee to spend a considerable
amount of time in the organization before he or she is recommended for
promotion so that he or she is acclimatized with the working environment,
policies and overall culture of the organization. Usually this time ranges from 1
– 2 years.
Performance – Performance plays a crucial role but is not the only deciding
factor for promotion. In most of organization policies, usually 4 or 5 raters only
are eligible for promotion.
Potential – Employee’s potential to take up higher roles and responsibilities are
significant criteria in deciding whether the employee should be promoted or not.
Many companies opt for identifying high pot employees through assessment
centers and psychometric tools to identify high pots and hence, recommend
them for taking up higher roles in the organization.
Organization Structure – Employee may deserve a promotion but unless there is
a vacancy in organization hierarchy for the new role, he or she may not clear
through. Organizations which are highly structured have an approved position
and budget for each role in the hierarchy, unless there is a vacancy at a position,
the next in line employee may not to be able to succeed to the position.
However, in developing organizations and start-ups, the structures are open and
flexible and this factor may not be a constraint.
Tenure in a particular role/ position – Unless an employee justifies his existence
in a role which he or she is currently in, promoting him to next level wouldn’t
make sense and he or she would need time to stay and perform at a particular
position before hopping on to next role. The range of tenure varies from 2 – 3
years in organization.

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While these are important points to be considered in an organization’s
promotion policy, it is favourable for organizations in any industry to promote
at least 8-10% of their employees each year in order to rotate employees
between the hierarchies and get the new ideas flowing. For a successful
organization, getting new perspective for each task and function is as important
as getting revenues and numbers. A new person in a new role will give a new
perspective to an existing process which may add a lot of value in the overall
value chain of the organization. For the employees, the new designation and
grade will give higher authority, more responsibilities, larger span of control,
decision making, better pay etc.
Why is promotion important in Human Resource Management for employees
and its benefits?
The process of promotion is important in any organization as without it there
will be stagnation in the growth and development of employees. If the employee
is made to work in the same role, at the same position for years, there will be
monotony in his job which is neither healthy for him/her nor for the
environment he or she is working in.
Promotions and change of role help the employees move forward in their career,
gives them more challenges, enhances their learning curve, keeps them engaged
with the job.
Types of Staff or employee Promotion and its purpose/ objective:
Many companies practice different types of promotion:
Seniority based promotion – This is when an employee has spent considerable
amount of time in a job role and is required to maintain the overall hygiene of
the organization. This happens especially with the senior employees when they
have spent a good amount of time with the organization in the same profile/
position. This type of promotion keeps the employees going, reduces attrition
and is easy to identify.
Merit based promotion – This is solely done on the basis of knowledge, skills,
capability and performance. It is a true reward for the deserving employees,
enriches the organizations’ value chain and is good way to keep up the
employee morale.
Seniority based, merit based promotion – This is the most appropriate
promotion type which considers the merit as well tenure of the employee while
evaluating for promotion.
There has been debate and various opinions on whether the promotion should be
seniority based or merit based, management and leadership would always have
their take on merit based promotion while trade and labour union would favour
seniority based promotion.
Advantages and Disadvantages of Promotion
Backfilling a position in the organizational hierarchy through promotions is a
great idea for an organization who values its employees as it:

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Creates positivity in the overall environment, employees moving up the ladder
raises their self-esteem, confidence and morale.
New perspective to a position by someone who already understands the
business.
Quick filling of the vacancy through internal resource.
Developing a competitive space among colleagues and fellow members.

However, it may have some cons as well like:

Missing on the opportunity of getting an external perspective
A seniority based promotion might let employees to feel it as a matter of right
irrespective of their performance. Employees may feel that every 2-3 years they
will get a designation upgrade even If they don’t perform.

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CHAPTER 3
COMPANY
PROFILE

16
COMPANY PROFILE-

ONGC Corporate Profile - The Largest Energy Company in India

ONGC Represents India's Energy Security Through its Pioneering Efforts.

Maharatna ONGC is the largest crude oil and natural gas Company in India,
contributing around 75 per cent to Indian domestic production. Crude oil is the
raw material used by downstream companies like IOC, BPCL, and HPCL
(subsidiary of ONGC) to produce petroleum products like Petrol, Diesel,
Kerosene, Naphtha, and Cooking Gas-LPG.
This largest natural gas company ranks 11th among global energy majors
(Platts). It is the only public sector Indian company to feature in Fortune’s
‘Most Admired Energy Companies’ list. ONGC ranks 18th in ‘Oil and Gas
operations’ and 220 overall in Forbes Global 2000. Acclaimed for its Corporate
Governance practices, Transparency International has ranked ONGC
26th among the biggest publicly traded global giants. It is most valued and
largest E&P Company in the world, and one of the highest profit-making and
dividend-paying enterprise.

ONGC has a unique distinction of being a company with in-house service

capabilities in all areas of Exploration and Production of oil & gas and related
oil-field services. Winner of the Best Employer award, this public sector
enterprise has a dedicated team of over 30,000 professionals who toil round the
clock in challenging locations.

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ONGC Videsh Limited, a Miniratna Schedule “A” Central Public Sector
Enterprise (CPSE) of the Government of India under the administrative control
of the Ministry of Petroleum & Natural Gas, is the wholly owned subsidiary and
overseas arm of Oil and Natural Gas Corporation Limited (ONGC), the flagship
national oil company (NOC) of India. The primary business of ONGC Videsh is
to prospect for oil and gas acreages outside India, including exploration,
development and production of oil and gas. ONGC Videsh owns Participating
Interests in 37 oil and gas assets in 17 countries and produced about 30.3% of
oil and 23.7% of oil and natural gas of India’s domestic production in 2019-20.
In terms of reserves and production, ONGC Videsh is the second largest
petroleum company of India, next only to its parent ONGC.
ONGC subsidiary Mangalore Refinery and Petrochemicals Limited (MRPL) is
a schedule ‘A’ Miniratna, Central Public Sector Enterprise (CPSE) under the
Ministry of Petroleum & Natural Gas. The 15.0MMTPA (Million Metric Ton
per annum) Refinery has got a versatile design with complex secondary
processing units and a high flexibility to process Crudes of various API,
delivering a variety of quality products. MRPL, with its parent company Oil and
Natural Gas Corporation Limited (ONGC), owns and operates ONGC
Mangalore Petrochemicals Limited (OMPL), a petrochemical unit capable of
producing 0.905 MMTPA of Para Xylene and 0.273 MMTPA of Benzene.

HISTORY
1947 – 1960

During pre-independence, the Assam Oil Company in the North-Eastern and

Attock Oil company in North-Western part of undivided India were the only oil
companies producing oil in the country. The major part of Indian sedimentary
basins was deemed to be unfit for development of oil and gas resources.

After independence, the Government realized the importance of oil and gas for
rapid industrial development and its strategic role
in defence. Consequently, while framing the Industrial
Policy Statement of 1948, the development of the
hydrocarbon industry in the country was of utmost
necessity.

Until 1955, private oil companies mainly carried out

exploration of hydrocarbon resources of India.
Assam Oil Company was producing oil at Digboi,
Assam (discovered in 1889) and the Oil India Ltd. (a
50% joint venture between Government of India and

18
Burmah Oil Company) was engaged in developing two fields Naharkatiya and
Moran in Assam. In West Bengal, the Indo-Stanvac Petroleum project (a joint
venture between Government of India and Standard Vacuum Oil Company of
USA) was engaged in exploration work. The vast sedimentary tract in other
parts of India and adjoining offshore remained largely unexplored.

In 1955, Government of India decided to develop the oil and natural gas
resources in the various regions of the country as part of Public Sector
development. With this objective, an
Oil and Natural Gas Directorate was set
up in 1955 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.

A delegation under the leadership of

Mr. K D Malviya, the then Minister of
Natural Resources, visited several countries to study the oil industry and to
facilitate the training of Indian professionals for exploring potential oil and gas
reserves. Foreign experts from USA, West Germany, Romania and erstwhile
USSR visited India and helped the government with their expertise. Finally, the
visiting Soviet experts drew up a detailed plan for geological and geophysical
surveys and drilling operations to be carried out in the 2ndFive Year Plan
(1956-57 to 1960-61).

In April 1956, the Government of India adopted the Industrial Policy

Resolution, which placed mineral oil industry amongst the Schedule 'A'
industries, the future development of which was to be the sole and exclusive
responsibility of the state.

Soon, after the formation of the Oil and Natural Gas Directorate, it became
apparent that it would not be possible for the Directorate with limited financial
and administrative powers 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 Parliament, which
enhanced powers of the commission further. The main functions of the Oil and
Natural Gas Commission subject to the provisions of the Act, were "to plan,
promote, organize and implement programmes for development of Petroleum
Resources and the production and sale of petroleum and petroleum products
19
produced by it, and to perform such other functions as the Central Government
may, from time to time, assign to it". The act further outlined the activities and
steps to be taken by ONGC in fulfilling its mandate.

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 Mumbai High. This discovery, along with
subsequent discoveries of huge oil and gas fields in Western offshore changed
the oil scenario of the country. Subsequently, over 5 billion tonnes of
hydrocarbons, which were present in the country, were discovered. 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.

1990 - 2018

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
20
overseas business opportunities in the energy value chain, amongst themselves.
Consequent to this the Government sold off 10 per cent of its shareholding 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 has also entered the global field
through its subsidiary, ONGC Videsh Ltd. (OVL). ONGC has made major
investments in Vietnam, Sakhalin, Columbia, Venezuela, Sudan, etc. and earned
its first hydrocarbon overseas revenue from its investment in Vietnam.

Today, Oil and Natural Gas Corporation Ltd. (ONGC) is, the leader in
Exploration & Production (E&P) activities in India contributing 72 percent to
India’s total production of crude oil and 48 per cent of natural gas.

EXPLORATION

 Discovered six out of seven producing Basins in India. Located 8.78 billion
tonnes of Oil & Oil Equivalent in Indian Basins with over 400 discoveries

 ONGC is the largest exploration acreage and mining lease holder in India

 83% of established reserves (out of 10.9 BT) in the country has been
discovered by ONGC.

 22 new discoveries - 10 new prospects, 12 new pools in FY’15

 Reserve Replenishment Ratio (RRR) for the last ten years has been more
than One (3P Reserves)

 Exploration

 Discovered six out of seven producing Basins in India. Located 8.78 billion
tonnes of Oil & Oil Equivalent in Indian Basins with over 400 discoveries

 ONGC is the largest exploration acreage and mining lease holder in India

 83% of established reserves (out of 10.9 BT) in the country has been
discovered by ONGC.

 22 new discoveries - 10 new prospects, 12 new pools in FY’15

 Reserve Replenishment Ratio (RRR) for the last ten years has been more
than One (3P Reserves)

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 Production

 ONGC has been able to arrest decline in majority of its matured fields (of
vintage 30-50 years) that contribute 72% of the company’s O+OEG
production through its majorly successful technology-intensive IOR and
EOR.

 1184 oil wells and 151 gas wells in offshore and 4735 oil wells and 606 gas
wells in onshore as on April 1, 2015

 Western Offshore production up by 7.5% (16.20 MMT in FY’15 against

15.54 MMT in FY’14)

 Produces 1.2 million barrels of oil equivalent per day

 ONGC accounts 69% of Crude oil & 70% of Natural Gas production

 Produced 1,743 Million Metric Tonnes of Oil Equivalent so far

 Arrested decline in 14 major fields producing for over 30 years, vis-a-vis

global decline rate of 7% from matured fields

 2019 onwards

 In 2019, ONGC ranked 11th among global energy majors (Platts). It was the
only public sector Indian company to feature in Fortune’s ‘Most Admired
Energy Companies’ list. ONGC ranked 18th in ‘Oil and Gas operations’ and
220 overall in Forbes Global 2000. Acclaimed for its Corporate Governance
practices, Transparency International ranked ONGC 26th among the biggest
publicly traded global giants.

 ONGC has a unique distinction of being a company with in-house service

capabilities in all areas of Exploration and Production of oil & gas and
related oil-field services. Winner of the Best Employer award, this public
sector enterprise built a dedicated team of over 30,000 professionals by
2019, who toil round the clock in challenging locations.

PRODUCTION

 ONGC has been able to arrest decline in majority of its matured fields (of
vintage 30-50 years) that contribute 72% of the company’s O+OEG
production through its majorly successful technology intensive IOR and
EOR.

22
 1184 oil wells and 151 gas wells in offshore and 4735 oil wells and 606 gas
wells in onshore as on April 1, 2015

 Western Offshore production up by 7.5% (16.20 MMT in FY’15 against

15.54 MMT in FY’14)

 Produces 1.2 million barrels of oil equivalent per day

 ONGC accounts 69% of Crude oil & 70% of Natural Gas production

 Produced 1,743 Million Metric Tonnes of Oil Equivalent so far

 Arrested decline in 14 major fields producing for over 30 years, vis-a-vis

global decline rate of 7% from matured fields

 ONGC started the year 2020 on high notes, bagging all seven Oil and Gas
Blocks offered in the fourth bid of the Open Acreage Licensing Policy
(OALP) of the Ministry of Petroleum and Natural Gas (MoPNG).

 ONGC has also drafted the Energy Strategy 2040, through which it set a
target to double its Oil and Gas production from its domestic, as well as
overseas fields by the year 2040. ONGC also plans to expand its refining
capacity three-fold alongside diversification into renewables.

 The strategy document outlines Vision 2040 for ONGC, which could help
the group to achieve the following:

 3 times revenue distributed across E&P, Refining & Marketing and

other business.

 4 times current PAT with 10% contribution from non-Oil & Gas
business.

 5~6 times current market capitalization

2019 ONWARDS

 In 2019, ONGC ranked 11th among global energy majors (Platts). It was the
only public sector Indian company to feature in Fortune’s ‘Most Admired
Energy Companies’ list. ONGC ranked 18th in ‘Oil and Gas operations’ and
220 overall in Forbes Global 2000.

23
 Acclaimed for its Corporate Governance practices, Transparency
International ranked ONGC 26th among the biggest publicly traded global
giants.

 ONGC has a unique distinction of being a company with in-house service

capabilities in all areas of Exploration and Production of oil & gas and
related oil-field services.

 Winner of the Best Employer award, this public sector enterprise built a
dedicated team of over 30,000 professionals by 2019, who toil round the
clock in challenging locations

E&P TECHNOLOGY

ONGC is one of the largest E&P Company in India with in-house service
capabilities in all the activity areas of exploration and production of oil & gas
and related oil-field services. The state-of-the-art technologies inducted and
absorbed over the years such as depth domain processing, stratigraphic
inversion, advanced volume based interpretation tools, stochastic lithofacies
modeling using neural network, spectral decomposition, geo-statistical
modeling, etc.

“Dedicated to excellence by leveraging competitive advantages in R&D and

technology with involved people” – Mission of ONGC

Committee of ONGC Institutes

As India’s premier Maharatna, ONGC has pioneered in research and technology

development in the country, setting up twelve world-class Institutes under the

24
aegis of ‘Committee of ONGC Institutes’ or ‘COIN’. These twelve institutes
have become the backbone of India’s hydrocarbon industry and support the
entire spectrum of Oil and Gas production, which begins at the well bore and
culminates at the consumer point.

EPINET

ONGC has set benchmarks for industry to follow. ONGC has setup EPINET,
through which a live E&P information network and a virtual database has been
developed for Basin & Petroleum System Modeling of various basins. Through
SCADA all production and drilling executives at different levels utilize and
reap benefits of online SCADA data for enhanced operational efficiency and
productivity.

3-D virtual reality centers

ONGC has set up four 3-D virtual reality centers known as 'Third Eye' for real
time dissemination and information of onshore and offshore applications. These
centers are used for exploration and production activities including real-time
surveillance of producing oil and gas fields thus helping ONGC network all its
centers together by parallel computing technologies for all the major projects.

SAP implementation started by ONGC’s management

Thinking ahead of times, in 2002, ONGC’s management started the SAP

implementation, which turned out to be the largest India has ever seen. ONGC
is now moving towards a paperless office through adoption of latest pioneering
technologies. ONGC embarked upon realignment of its multi-faceted business
activities through the powerful medium of Information Technology. The IT
mission was realigned ‘To develop an integrated, flexible and standardized
Information Technology architecture to position ONGC towards fundamental
competitive advantage’. The existing standalone applications (UFSO – for
Financial Management, SHRAMIK for Human Resource Management, IMMS
for Material Management etc) and other legacy information systems were
brought together under a common ERP platform. Thus, Project ICE,
Information Consolidation for Efficiency was born, out of the strategic vision of
the ONGC’s board, particularly that of Mr. Subir Raha, the then C&MD with
the motto of “One Organisation, One Data and One Information”.

25
Project ICE
ONGC has also implemented an enterprise-wide ERP implementation by the
name of Project ICE. It comprised of 23 SAP modules in more than 500
physical locations across the length and breadth of the country, starting from
mobile Survey units at Jwalamukhi of Himachal Pradesh to Deep Sea vessels at
Bay of Bengal, from Production installations at far flung areas of Assam to
Drilling rigs in the desert of Rajasthan.
Over the years, ONGC has developed a formidable capability in ultra-deepwater
drilling. Since 2004, ONGC has drilled over 100 deepwater wells. A large
number of these wells are in daunting water depths beyond 5000 feet in
environmentally and logistically difficult areas of Indian East Coast and West
Coast, ranging from Gujarat offshore to Mahanadi offshore including 6 wells in
Andaman offshore. Out of these, around 25 wells have been drilled in water
depths of 5000 feet to 7500 feet and 16 wells in water depths of 7500 feet to
10000 feet. The current world record well # 1-D-1, which is under drilling, is
the 3rd well in beyond 10000 feet water depth.ONGC has achieved this
commendable feat due to a sustained effort over the years to keep pace with
latest technology in hydrocarbon exploration and it is one of the few companies
in the world to have drilled a large number of ultra-deepwater wells in diverse
and challenging areas.

Having gone through the tough grind in deepwater operations during last fifteen
years, ONGC is today fully geared up to stand up to any challenge in ultra-
deepwater drilling operations in pursuit of energy security for the nation.

Collaboration with Indian Institutes of Technology

In early 2015, ONGC signed a Memorandum of Collaboration (MoC) with
seven IITs for developing indigenous technologies to enhance exploration and
production of hydrocarbons and alternate energy sources. Under the MoC,
ONGC's R&D Institutes and the IITs shall jointly undertake advanced research
and development projects for the exploration and production (E&P) sector of
the country in general and oilfield specific activities of ONGC in particular.

GLOBAL RANKING

 Golden Peacock National Quality Award – 2020: The Golden Peacock

National Quality Award for the year 2020 has been conferred to ONGC in
recognition of its robust Quality Management Systems. The Golden Peacock
National Quality Award is an annual award administered by the Golden
Peacock Award Secretariat, as a part of the activities of “The Institute of
Directors, New Delhi”.

26
 Certified as Great Place to Work: ONGC has been certified by the Great
Place to Work, for its ‘high-trust, high-performance culture’; Great Place to
Work is an USA-based global leader in certification of HR practices
 S&P Platts Global Energy Award 2019: ONGC awarded for Corporate
Social Responsibility - Diversified Program. ONGC is the only Indian
company to bag honors across all categories.
 Ranked 160 in coveted Fortune Global 500 list 2019 : India’s largest oil
and gas producer, has been ranked 160 in the coveted Fortune Global 500
list.
 Platts Top 250: Ranked no.1 E&P Company: ONGC maintained its First
Position globally in the industry category “Oil and Gas Exploration and
Production” and achieved overall ranking of 21st position in the Platts Top
250 Global Energy Company Rankings-2018.
 Dun & Bradstreet Award 2019 in the 'Oil and Gas Exploration'
category: ONGC has been adjudged the winner in the 'Oil and Gas
Exploration' category of the Dun & Bradstreet Corporate Awards 2019.
 ONGC Ranked 220 in Forbes Global 2000 list
 Green Rameswaram CSR project bags accolades at 2nd Innovative
Practices Awards : ONGC's ‘Green Rameswaram’ CSR Project was
crowned winner under the ‘Sanitation Category’ at the 2nd Innovative
Practices Awards for Sustainable Development Goals at Bengaluru on
08.06.2018.
 ‘Maharatna of the Year (Non-Manufacturing)’ in Dalal Street’s Roll of
Honor : ONGC has been recognized in the Dalal Street Investment Journal’s
Roll of Honor list of India’s Best Public Sector Undertakings 2017 as the
‘Maharatna of the Year (Non-Manufacturing)’.
 INFRA Icon Award in the ‘Global Energy' category : ONGC has been
conferred with INFRA Icon Award in the “Global Energy” category at the
mid-day INFRA Icons Awards 2018.
 Golden Peacock Award for HR Excellence : ONGC won the Golden
Peacock Award for HR Excellence in a ceremony organized by Institute of
Directors (IOD) at Mumbai.
 CSR work in Jammu & Kashmir recognized by FICCI : The Company
has been conferred with FICCI award for Corporate Social Responsibility
(CSR) projects undertaken by it in Baramulla and Uri of Jammu & Kashmir.
 Award for Best Innovative Practices for Women at Workplace : ONGC
has won the Best Innovative Practices Award for Women at Workplace at
the 2nd Gender Equality Summit organized by Global Compact Network
27
 India on the theme “Preparing Women for the Future of Work”, on 1 March
2019 at New Delhi.
 “Energy and Environment Foundation Global Safety Award 2019” :
IPSHEM received the prestigious “Energy and Environment Foundation
Global Safety Award 2019” in Platinum category during 9 th World Petro-
Coal Congress & Expo (WPCC), 2019.

VISION
To be global leader in integrated energy business through sustainable growth,
knowledge excellence and exemplary governance practices.

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.

ONGC GROWTH STORY

28
ONGC was set up under the visionary leadership of Pandit Jawahar Lal Nehru.
Pandit Nehru reposed faith in Shri Keshav Dev Malviya who laid the foundation
of ONGC in the form of Oil and Gas division, under Geological Survey of
India, in 1955. A few months later, it was converted into an Oil and Natural Gas
Directorate. The Directorate was converted into Commission and christened Oil
& Natural Gas Commission on 14th August 1956.

"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 they were doing good
work" said Pandit Jawaharlal Nehru, India's first Prime Minister to Lord
Mountbatten, on ONGC in 1959.

In 1994, Oil and Natural Gas Commission was converted into a Corporation,
and in 1997 it was recognized as one of the Navratnas by the Government of
India. Subsequently, it has been conferred with Maharatna status in the year
2010.

In its 60 years of illustrious journey, ONGC has crossed many a milestone to

realize the energy aspirations of India. The journey of ONGC, over these years,
has been a tale of conviction, courage and commitment. ONGCs’ superlative
efforts have resulted in converting earlier frontier areas into new hydrocarbon
provinces. From a modest beginning, ONGC has grown to be one of the largest
E&P companies in the world in terms of reserves and production.

The Company’s Evolution can be summarized as under:

 1955 – Inception

 1958 – First Oil in Cambay

 1960 – Oil gas discovery in Gujarat

 1963 – Oil in Assam

 1965 – Concept of ONGC Videsh Operations

 1970 – first Offshore well

 1974 – Mumbai High discovered

 1976 – Bassein Gas field of Mumbai High

29
  1984 – GAIL formed out of ONGC

 1993 – ONGC a limited company

 1993 – Govt of India divest 2% share

 1994 – 2% share to employees

 1999 – Equity swap ONGC, IOC, GAIL

 2003 – Acquired Mangalore Refineries Petrochemicals Ltd from Birla

Group

 2003 – Ist equity Oil & gas from Sudan / Vietnam

 2004 – Govt of India divests 10%

 2006 – Diversification – ONGC Petro additives Ltd and ONGC

Mangalore Petro Ltd

 2007 – ONGC Energy Centre formed

 2010 – Coal Bed Methane Production

 2013 – Oil at Kazakhstan/Mozambique

 2014 – Top Energy Company of India; 5th in Asia, 21st globally: Platts

 2015 – ONGC Energy Center receives US Patent

 2016 – Forbes Global: ONGC 3rd largest in India

 2018 – 51.11% stake in Hindustan Petroleum Corporation Limited

 2019 – Invests Rs 83,000 crore in 25 projects; oil & gas gain over 180
MT

 2020 – ONGC bags 7 Blocks in Bid Round IV of OALP

With more than 50 years of Exploration ONGC had discovered 6 of the 7

Producing basins of India. These Oil Producing Basins are;

 1958 – Cambay, Gujarat

 1967 – Rajasthan

30
  1973 – Assam

 1974 – Mumbai Offshore

 1980 – Krishna Godavari Basin

 1985 – Cauvery Basin

ONGC as an integrated Oil & Gas Corporate has developed in-house capability
in all aspects of exploration and production business i.e., Acquisition,
Processing & Interpretation (API) of Seismic data, drilling, work-over and well
stimulation operations, engineering & construction, production, processing,
refining, transportation, marketing, applied R&D and training, etc.

HUMAN RESOURCE

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 they were doing good
work. Pandit Jawahar Lal Nehru, India's first Prime Minister to Lord
Mountbatten, on ONGC (1959).

Today, ONGC is the flagship company of India; and making this possible is a
dedicated team of nearly 33,000 professionals who toil round the clock. It is this
toil which amply reflects in the aspirations and performance figures of ONGC.
The company has adopted progressive policies in scientific planning,
acquisition, utilization, training and motivation of the team. At ONGC,
everybody matters, every soul count.

31
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 technically competent experienced scientists, engineers
and specialist professionals, mostly from distinguished Universities /
Institutions of India and abroad form the core of our executive profile. They
include geologists, geophysicists, geochemists, drilling engineers, reservoir
engineers, petroleum engineers, production engineers, engineering & technical
service providers, financial and human resource experts and IT professionals.

HR Vision

"To build and nurture a world class Human capital for leadership in energy
business".

HR Mission

"Adopt and continuously innovate best-in-class HR practices to support

business leaders through engaged, empowered and enthused employees".

HR Objectives

 Enrich and sustain the culture of integrity, belongingness, teamwork,

accountability and innovation.

 Enhance employee competencies continuously.

 Build a joyous workplace.

 Promote high performance work systems.

 Upgrade and innovate HR practices, systems and procedures to global

benchmarks.

 Promote work life balance.

 Measure and Audit HR performance.

 Promote work life balance. Integrate the employee family into the
organisational fabric.

 Inculcate a sense of Corporate Social responsibilities among employees.

32
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.

HR Parameters of MoU for 2009-2010

 Mentoring and coaching

 HR Audit

 Engagement Survey

 Continuous professional education credit course for finance executives of

ONGC.

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

 Productivity Honorarium Scheme

 Job Incentive

 Quarterly Incentive

 Reserve Establishment Honorarium

 Roll out of Succession Planning Model for identified key positions

 Group Incentives for cohesive team working, with a view to enhance

productivity

Training & Development

33
An integral part of ONGC’s employee-centred policies is its thrust on their
knowledge upgradation and development. ONGC Academy, previously known
as Institute of Management Development (IMD), which has an ISO 9001
certification, along with 7 other training institutes, play a key role in keeping
our workforce at pace with global standards.

ONGC Academy 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.

Transforming the Organization

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 centres.
Exclusive workshops and interactions/brainstorming sessions are organized to
facilitate involvement of employees in this project.

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.

A Model Corporate Citizen

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.

 Education

34
  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

Sports

Around 150 sportspersons including 95 international level performers are on the

rolls of ONGC representing your Company in 15 different games.

Corporate Social Responsibility

 ONGC is spearheading the United Nations Global Compact – World’s

biggest corporate citizenship initiative to bring Industry, UN bodies,
NGOs, Civil societies and corporate on the same platform.

 During the year, your Company has undertaken various CSR projects at
its work centres and corporate level.

Women Empowerment

Women employees constitute about 5% of ONGC’s workforce. Various

programmes for empowerment and development, including programme on
gender sensitization are organized regularly.

35
BOARD OF DIRECTORS

36
ORGANOGRAM

PROMOTION POLICY IN ONGC

37
Promotion :

Promotion of employees in O.N.G.C. is considered under the H and D

Regulations, 1980. The criterion of promotion is both seniority and merit. It also
provides for ‘Fixed Time Promotion’. The Association of officers and the Union
of employees have demanded that every employee should be given at least two
promotions on the fixed-time basis. The Associations and Unions have further
demanded 100 percent promotion at intermediate levels and rationalisation in
promotion. It has been accepted by the Government and the Commission. The
Chairman of O.N.G.C. has appointed a promotion policy committee which
consists of officers of O.N.G.C. and representatives of class III and class IV
employees. The committee suggested various recommendations in relation to
promotion. If the post is not fulfilled by the departmental candidates or if
eligible candidates are not available in the organisation, the competent authority
may fill the post by direct recruitment. The educational qualifications,
experience and age limit for direct recruitment will be the same as for the
internal candidates.

ONGC-Executive Promotion Policy

EXECUTIVE LEVEL PRESENT SCALE OF APPROXIMATE

PAY(Rs.) * ANNUAL
EMOLUMENTS

EXECUTIVE LEVEL – ONE

(e.g. Assistant Executive
Engineer / P&A Officer / 12,000-17,500/- 2,50,000
Geologist / Geophysicist etc.)

EXECUTIVE LEVEL-FOUR
(e. g. Superintending
Engineer/Manager/ Suptdg.
17,500-22,300/- 3,75,000
Geologist/ Suptdg. Geophysicist
etc.

EXECUTIVE LEVEL –SEVEN

(e.g. General Manager) 20,500-26,500 4,50,000

38
(EXECUTIVE PROMOTION POLICY)

The existing promotion scheme for executives in ONGC is as follows.

However, the outstanding candidates may get merit promotions a year in
advance depending upon their merit and availability of vacancies.

EXPERIENCE
EXISTING PAY SCALE
LEVEL REQUIRED FOR
(PRE-REVISED)
NEXT PROMOTION

E1 TO E2 4 YRS. E2 13,750-18,700

E2 TO E3 5 YRS. E3 16,000-20,800

E3 TO E4 4 YRS. E4 17,500-22,300

E4 TO E5 &
SUCCESSIVELY E5 18,500-23,900
HIGHER LEVELS
E6 19,500-25,600
(SELECTION ON 3 YRS.
MERIT) E7 & E8 20,500-26,500
Subject to the number of E9 23,750-28,550
available vacancies.

39
HPCL

Hindustan Petroleum Corporation Limited (HPCL)

Hindustan Petroleum Corporation Limited (HPCL) is an Indian public

sector oil and natural gas company with its headquarters in Mumbai,
Maharashtra. It has a 25% market-share in India among public sector
undertakings (PSUs) coupled with a strong marketing infrastructure. Its parent
company is ONGC which owns a 51.11% stake in the company.  The company
is ranked 367th on the Fortune Global 500 list of the world's biggest
corporations as of 2016. HPCL was removed from NIFTY 50 INDEX in March
2019  On 24 October 2019, the company became a Maharatna PSU.

History

A view of HPCL from Yarada Hill, Visakhapatnam

HPCL was incorporated in 1974 after the takeover and merger of erstwhile Esso
Standard and Lube India Limited by the Esso (Acquisition of Undertakings in
India) Act 1974. Caltex Oil Refining (India) Ltd. (CORIL) was taken over by
the Government of India in 1976 and merged with HPCL in 1978 by
the CORIL-HPCL Amalgamation Order, 1978. Kosan Gas Company was
merged with HPCL in 1979 by the Kosangas Company Acquisition Act, 1979.

In 2003, following a petition by the Centre for Public Interest Litigation (CPIL),

the Supreme Court of India restrained the Central government from privatising
Hindustan Petroleum and Bharat Petroleum without the approval of Parliament.
As counsel for the CPIL, Rajinder Sachar and Prashant Bhushan said that the
only way to disinvest in the companies would be to repeal or amend the Acts by
which they were nationalised in the 1970s. As a result, the government would
need a majority in both houses to push through any privatization.

HPCL has been steadily growing over the years. The refining capacity increased
from 5.5 million metric tonnes (MMT) in 1984/85 to 14.80 million metric
tonnes as of March 2013. On the financial front, the net income from
sales/operations grew from ₹2687 crores in 1984–1985 to ₹2,06,529 crores in
financial year 2012–2013. During FY 2013-14, its net profit was ₹1740 crores.

40
Merger and Acquisition

On 19 July 2017, the Government of India announced the acquisition

of Hindustan Petroleum Corporation by Oil and Natural Gas Corporation.[11] On
1 November 2017, the Union Cabinet approved ONGC for acquiring majority
51.11% stake in HPCL (Hindustan Petroleum Corporation Limited). On 30
January 2018, Oil & Natural Gas Corporation acquired the entire 51.11% stake
of Hindustan Petroleum Corporation, thus becoming the promoter of the
company. Although ONGC Holds 51.1% in the Company, HPCL denies to
identify it as promoter. The reason given for it is that the majority of Board Of
Directors are from Government of India and not ONGC.

Operations

Hindustan Petroleum fuel pump near town hall, Coimbatore

Hindustan Petroleum petrol bunk at Basaveshwaranagar, Bangalore

HPCL operates two major refineries[13] producing a wide variety of petroleum

fuels and specialties, one in Mumbai (West Coast) of 7.5 million tones per year
capacity and the other in Visakhapatnam, (East Coast) with a capacity of 8.3
million tonnes per year.[14] HPCL holds an equity stake of 16.95% in Mangalore
Refinery and Petrochemicals Limited (MRPL), a state-of-the-art refinery at
Mangalore with a capacity of 9 million tonnes per year. Another refinery of 9
million tonnes per year (set up in Bathinda, Punjab by HMEL,]a joint venture
with Mittal Energy Investments Pte. Ltd). HPCL has signed a memorandum of
understanding with the Government of Rajasthan for setting up a refinery
near Barmer. It would be operated under a joint venture company (JVC) called
HPCL-Rajasthan Refinery Limited.[16]

HPCL also owns and operates the largest lubricant refinery in India producing
lube base oils of international standards, with a capacity of 335 TMT. This
refinery accounts for over 40% of India's total lube base oil production.
Presently HPCL produces over 300+ grades of lubes, specialities and greases.

The marketing network of HPCL consists of 21 zonal offices in major cities and
128 regional offices[17] facilitated by a supply and distribution infrastructure
comprising terminals, aviation service facilities, liquefied petroleum gas (LPG)
bottling plants, lube filling plants, inland relay depots, retail outlets (petrol
pumps) and LPG and lube distributorships.

41
HPCL has state-of-the-art information technology infrastructure to support its
core business. The data center is at Hitech city in Hyderabad.

Products

An HP petrol pump in Khammam

HP cooking gas delivery vehicle

 Petrol is known as motor spirit in the oil industry. HPCL markets the
product through its retail pumps all over India. Its principle consumers
are personal vehicle owners.

 Diesel is known as high speed diesel in the oil industry. HPCL markets
the products through its retail pumps as well as terminals and depots. Its
consumers are regular auto owners, transport agencies, industries, etc.

 Lubricants: HPCL is the market leader in lubricants and associated

products. It commands over 30% of market share in this sector. The
popular brands of HP lubes are Laal Ghoda, HP Milcy, [18] Thanda Raja,
Koolgard, Racer4.[19]

 Liquified petroleum gas: The HPCL brand of LPG is a popular brand

across India for domestic and industrial uses.

 Aviation turbine fuel:[20] With major air service facilities in all major

airports of India, HPCL is a key player in this sector supplying ATF to
major airlines. It has an accomplishment of sorts to supply fuel to US.

 Emulsions

Refineries

HP oil refinery in Visakhapatnam

HPCL has a number of refineries in India. Some are listed below:

 Mumbai Refinery: 7.5 million metric tonnes (MMT) capacity

 Visakhapatnam Refinery: 8.3 MMT at Visakhapatnam

 Mangalore Refinery: 9.69 MMT at Mangalore, Karnataka (HPCL has a

16.65% stake).

42
  Guru Gobind Singh Refinery: 9 MMT at Bathinda, Punjab (HPCL and
Mittal Energy each have a 49% stake).

 Barmer Refinery: It is planned for 9 MMT capacity. It is a joint venture.

HPCL 74%, Rajasthan Government 24%.

International rankings

 HPCL is a Fortune Global 500 company as per the ranking of 2013 and

was ranked at position 259. HPCL has been ranked at position 367 as per
the latest ranking of 2016.

 HPCL was featured on the Forbes Global 2000 list for 2013 at position

1217.

 It was the 10th most valuable brand in India according to an annual

survey conducted by Brand Finance and The Economic Times in 2010.[21]

 It was the 3rd most valuable brand in India according to an annual survey
conducted by Brand Finance in 2019.

Major facilities

Scindia road near HPCL

 Mumbai refinery: Fuel and lubes

 Vizag refinery: Fuel

 Mangalore: MRPL

 Bhatinda: HMEL

 Silvassa Lube: State-of-the-art plant for grease and specialities. (One of

the most advanced fully automated installations in Asia.)

 Lube & Grease mfg facility: Mazagaon, Mumbai.

 LPG storage Cavern: one of the biggest storage facilities of LPG in Asia
at Vizag—SALPG

 Pipelines: MPSPL, MDPL, VVSPL, MHMSPL, RKPL, ASPL, RBPL

 Several terminals & depots.

43
  Many LPG bottling plants.

 HPCL Green R&D Centre, Bengaluru

Major ongoing projects

 Uran - Chakan - Shikrapur LPG Pipeline(UCSPL)

 Vijayawada - Dharmapuri Pipeline (VDPL)

 Palanpur Vadodara Pipeline (PVPL)

 Visakh Refinery Modernization Project

 Barmer Refinery RAJASTHAN

 Mumbai Refinery Expansion Project

Subsidiaries

Prize Petroleum Company Limited

Prize Petroleum Company Limited (Prize) is the wholly owned subsidiary of

Hindustan Petroleum Corporation Limited (HPCL). Prize is focused on the
appraisal and development of hydrocarbon accumulations in the onshore and
offshore projects by conducting exploration, development and production of
petroleum and other activities in accordance with its mission. Prize's operating
projects are the Hirapur Marginal oil fields of Cambay basin near Gandhinagar
(Gujarat) under a service contract with ONGC; and the pre-NELP production
sharing contract (PSC) for the Sanganpur (Mehsana) field with M/s
Hydrocarbon Development Company (P) Ltd (HDCPL) as Operator. Recently,
Prize signed a sale and purchase agreement to acquire non-operated minority
stake in two gas assets in offshore south Australia.

 HPCL Biofuels Limited.

 CREDA-HPCL Biofuels Limited.

 HPCL Rajasthan Refinery Limited.

 HPCL also facilitating the HP Drive Track Plus cards for purchase of
their products and providing the cash back as per the govt.cash back
offers

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  HPCL also in HP Gas for the domestic and Industrial gas having major
market share in India

Our Vision

To be a World Class Energy Company known for caring and delighting the
customers with high quality products and innovative services across domestic
and international markets with aggressive growth and delivering superior
financial performance.
The Company will be a model of excellence in meeting social commitment,
environment, health and safety norms and in employee welfare and relations.

Our Mission

"HPCL, along with its joint ventures, will be a fully integrated company in the
hydrocarbons sector of exploration and production, refining and marketing;
focusing on enhancement of productivity, quality and profitability; caring for
customers and employees; caring for environment protection and cultural
heritage.
It will also attain scale dimensions by diversifying into other energy related
fields and by taking up transnational operations."

Our Values

Building an ‘Enabling Culture’ is key to realize our vision and fulfil our
mission. Our cultural motto ‘HP FIRST’ instils pre-eminence of HPCL’s vision
and mission above all else and guides in all our professional endeavours and
engagements. ‘HP FIRST’ also crystallizes our corporate values as an acronym
where ‘F’ stands for Free, Frank and Fair, ‘I’ stands for Integrity, ‘R’ for
Respect for Individual, ‘S’ for Sustainable Performance and ‘T’ for Team Spirit.
Our corporate values define who we are as well as who we will continue to be.
Nothing less will do. Considering that our vision is also an expression of our
commitment to you. Our customer, our stakeholder, our associate, our employee
and our well-wisher. After all, you make us complete.

Our corporate values define who we are as well as who we will continue to be.

45
Nothing less will do. Considering that our vision is also an expression of our
commitment to you. Our customer, our stakeholder, our associate, our employee
and our well-wisher. After all, you make us complete.

BOARD OF DIRECTORS

CHAIRMAN & MANAGING DIRECTOR

Shri Mukesh Kumar Surana, Chairman and

Managing Director

FUNCTIONAL DIRECTORS

Shri Pushp Kumar Joshi: Director - Human

Resources

Shri Vinod S. Shenoy: Director - Refineries

Shri R. Kesavan: Director - Finance

46
 Shri Rakesh Misri: Director - Marketing

Ex-Officio Director
Shri Sunil Kumar

Part-Time Director

Shri Subhash Kumar

Independent Directors

Mr. Amar Sinha Mr. Siraj Hussain Mr. G. Rajendran Pillai

47
MAJOR ONGOING PROJECTS

In order to strengthen core processes and modernize, HPCL has developed

ambitious plans for expansion and diversification in the areas of increasing
energy demand, technological upgradation and environment management. A
brief on some major projects in progress in different parts of India are given
below:

 Visakh Refinery Modernization Project (VRMP)

 Mumbai Refinery Expansion Project (MREP)

 Wind Power Project under Phase – II

 VVSPL Capacity Expansion and OSTT-SS Jetty Sub-sea Pipeline Project

 MDPL Capacity Expansion & Palanpur Vadodara Pipeline Extension

Project

 Greenfield Refinery cum Petrochemical Complex at Pachpadra, Barmer

District, Rajasthan (9 MMTPA capacity) through a joint venture
company, HPCL Rajasthan Refinery Limited (HRRL)

 5 LPG Bottling Plants

 CGD Network

 LNG Regasification Terminal

 Pipelines

48
 PROMOTION POLICY IN HPCL

PROMOTION POLICY

Objectives

 To ensure that all management positions are manned by personnel having the
requisite qualifications, exposure and competence
 To integrate the aspirations for growth and development of Officers with the
present and future requirements of the Corporation
 To ensure equity, fairness and objectivity in matters relating to promotion
 To recognize and reward meritorious performance

Guiding Principles

The promotion policy is based on following guiding principles: 1. Performance

2. Experience

3. Vacancy

 The promotions of officers are governed by the promotion policy as

applicable to the grade to which the officers belong.
 The officer must complete a minimum of 3 years in a grade to be in the zone
of consideration for the promotion.
 Performance ratings are given each year on a scale of 1 to
 The preceding three years’ ratings are considered for the purposes of the
promotion.
 Promotion of the officers is based on merit cum seniority and subject to
officer acquiring requisite cut-off marks for promotion.
 Promotions from the grade of Deputy General Manager and above is based
on merit which is determined by the performance of the officer in the last 3
years.

49
CHAPTER 4
ANALYSIS OF
SECONDARY
DATA

FINDINGS OF
SECONDARY
DATA

50
ANALYSIS OF SECONDARY DATA

ONGC

 It promots the employee only through merit basis promotion.

 All the executive levels are promoted by merit only.

 It also depends on the vacancies too, i.e. If any vacancy occurs, then only
promotion happens.

Advantages:

 Competent employees are retained.

 It motivates the competent employees to exert all their resources and

contribute them to the organizational efficiency and effectiveness.

 Efficiency is encouraged, organized and rewarded.

 It motivates the employees to work hard and improve their skills.

Disadvantages:

 It may result in partiality, nepotism, favoritism, cartelism etc. By the

management.

 Senior employees in the organization may become unsatisfied and they may
indulge in certain activities that may lead to industrial unrest, strikes,
lockouts etc.

 Tenured employees offer the benefits of greater experience, this doesn't

necessarily equate with more ability.

 There is always a fear of losing job promotion depending on performance.

51
HPCL

 The only promotional policy adopted by HPCL is seniority-cum-merit based.

 Both seniority and merit suffers from certain limitations. Therefore, a saved
promotional policy should be based on both considerations i.e. seniority and
merit. So, the proper combination of these two criteria can be better.

Advantages

 It helps to give relative weightage to seniority and merit.

 It uses 40% seniority & 60% of merit in promotional policy.

 Experienced employees are more satisfied with this promotion as seniority

taken into consideration.

 In Indian culture its more important to give respect to seniors. So, in this
promotion it helps to all employees.

Sometimes the policy also modified according to the need of the organization

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FINDINGS OF SECONDARY DATA
ONGC

 Merit based promotion is the base of promotion.

 Only well performer can get their promotion easily.

 The promotion is separated into different levels as E1, E2, E3, E4, E5, E6,
E7 etc.

HPCL

 Seniority-cum-merit based promotion is used in HPCL.

 Minimum 3year service is required.

 40% seniority & 60% merit is calculated during evaluation.

53
CHAPTER 5
CONCLUSION

54
CONCLUSION
Human resources play a very important role in the success of the organization.
Human resources are the people that staff and operate an organization. Human
resource management is an organizational function that deals with the people
and issues related to people such as compensation, hiring, performance
management, and training. Hence human resource management is vital to the
organization. Efficient management of the finances and markets depend upon
human resources. Hence there is the need for effective management of human
resources irrespective of the size and nature of the organization.

Human resource management aims at obtaining capable people for achieving

the objectives of the organization and for ensuring effective utilization of their
services. As the success of any organization largely depends on the quality of its
human resources and the extent to which they are motivated, human resource
management acquires special significance in an organization.

Human resource policy, practices and procedures constitute human resource

management. Goal directed policy, well accepted practices and well-designed
procedures contribute to the successful execution of the vital and critical human
resource function. Of them human resource practices play a significant role in
shaping, influencing and enhancing the morale, motivation, capability,
commitment and ultimately performance of the employees.

Employee promotion is a step further that an employee takes while working in

an organization as far as his/her work, rank or position is concerned. Every
organization or workplace has a certain job hierarchy structure according to
which an employee advances in that organization and gets promoted. Promotion
is not just a reward that an employee is given for his/her continued good
performance but is the proof that an employer thinks that it is time to add more
responsibilities to an employee’s existing set of responsibilities.

There are many types of promotions – while some guarantee advancement in

the job position or rank, other may guarantee an increase in the pay or salary. In
some organization, a promotion may result in a just change of duties and
responsibilities. Promoting employees for their excellence in performance is
important to value their efforts and keep their morale up.

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BIBLIOGRAPHY-
Aswathappa K., Human resource and personal management, Tata mcgraw Hill 
publishing company, New Delhi,2005

Dessler Gary, (2003), Human resource management, New Delhi 9th Edition, P
retice – Hall of India

Subba Rao P., 2007 Essential of human resource management and industrial r
elations, ‐ Text cases games, Himalaya publishing house, Mumbai,://www.ongc
india.com/wps/wcm/connect/en/home/
https://www.hindustanpetroleum.com/ https://www.google.com/amp/s/core
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https://www.ongcindia.com/wps/wcm/connect/en/home/

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