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Oil and natural gas corporation limited properly known as ONGC , is Indias number one company with significant company in industrial and economic growth of the company is a leading national oil and natural gas producing company of India engaged mainly in exploration , development and production of crude oil, natural gas and some value added products. It has gone through its life cycle and now reached to its maturity stage after overcoming birth and growth stage. The organization was born over about five decades ago on 14th august 1956 and today ONGC is a fortune 500 company having more than 35000 employees as on e house within serene Himalayan setting at Dehradun and registered office at Delhi. ONGC has grown into full fledge horizontally integrated upstream petroleum company with adequate in house capabilities and infrastructure in the entire range of oil and gas exploration. From a small directorate to a monolith today ONGC is circumpassing the entire public gaunt of public sector organization. ONGC today is endeavoring to become a world class oil and gas producing company in pursuit of exploration and production business in the domestic and international area and related opportunity specific energy business. ONGC today is repositioning itself to fasters the principle of relational enterprise through partnership /strategic alliance/joint venture with preferred partners and adopt a business strategy which relies on company skills and positional assets with a focus on core business areas and opportunity specific diversification. ONGC is India's Most Valuable Company, having a market share of above 80% in India's Crude Oil and Natural Gas Exploration and Production. ONGC registered the highest profit among all Indian companies at US $ 1.92 billion (Rs. 8664.4 crore) in the year 2003-04. Its production of Crude Oil in 2003-04 was 26.7 MMT and of Natural Gas 25.70 Billion Cubic Meters. ONGC also produce Value-Added Products (VAP) like C2-C3; LPG; Naphtha and SKO. ONGC Group of Companies comprises of y Oil and Natural Gas Corporation Limited (ONGC - The Parent Company)

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ONGC Videsh Limited (OVL a wholly owned subsidiary of ONGC) ONGC Nile Ganga BV (ONG BV - a wholly owned subsidiary of OVL) and Mangalore Refinery and Petrochemicals Limited (MRPL - a subsidiary of ONGC).


In 1955, Government of India decided to develop the oil and natural gas in the various regions of the country as a part of the Public Sector development. With this objective, an Oil and Natural Gas Directorate was formed. In 1956 directorate raised the status of commission with enhanced powers. The directorate was converted to statutory body by an act of Parliament. So ONGC was setup to explore Oil and natural gas resources in the country.

Since its inception, ONGC has been important in transforming the countrys limited upstream sector into a large viable playing field, with its activities spread throughout India and significantly in overseas territories. ONGC went offshore in early 70s and discovered a giant oil field in the form of Bombay High, now known as Mumbai High. With the liberalized economic policy, adopted by the Government of India in July 1991, ONGC was re-organized as a limited company under the companys Act, 1956 in February 1994.



One of the biggest advantages & strength of the company is that it is state owned. This led the company have great infrastructure with the governments support. The policy making also becomes easier due to the same reason. Moreover any undue and sustained pressure creates due impact on the government as well.

Growing demographics
ONGC went to global fields through its subsidiary, ONGC Videsh Ltd. (OVL). ONGC has made major investments in Vietnam, Sakhalin and Sudan and earned its first hydrocarbon revenue from its investment in Vietnam.

Top Technology
ONGC is the technological advancements that were implemented over the last few years. The advancements were substantial and improved the company's ability to extract the greatest amount of oil and gas.

Hard Industry for Competitor to enter

The oil sector is an industry wherein not many competitors can enter owing to the scale and government intervention.

Strive to be environmentally friendly

The Company has in its guiding principles to cut down emission and become nature friendly in due course of time

Strong Infrastructure
The company implemented some well needed improvements to the infrastructure and created a strength for the company


Because of Huge govt. Of India control on ONGC many important decisions are being taken by govt. of India and sometime it proved to be fatal for example govt's poor decisions have come in way e.g. In case of APKO oilfields acquisition , government blocked the deal which later went to Chinese CNOOC. This resulted in loss of face of ONGC in international market

Ever changing laws

The ever changing laws pose a big threat to the company. The Company is bleeding due to the rising crude oil prices in the international market but the government has its own priorities


Possible Mergers with Smaller Companies

ONGC has always great opportunities to get into mergers & acquisitions with companies across the globe

Finding Alternative Fuels before competitor

It may itself get into the research operations in terms of finding alternative fuels before its competitors

Expanding into more areas

The company has great opportunities to expand in offshore locations

Grow their hold in the energy market

The Company can become more aggressive in locating new oil-fields across the globe.

y The company may be facing some real threat from alternative fuels in the next decade or so y y y Corrupt Government may not have the company's best interest in mind Could fall behind technology with the everything changing so quickly this day and age Security of personnel and property especially crude oil continues to be a cause of concern in certain areas. y In some exploration campaign company involves high technology, which means high risk

To be world class Oil & Gas Company Integrated in energy business with dominant Indian leadership and global presence.

y Dedicated to excellence by leveraging competitive advantages in R&D and technology with involved people. y y Imbibe high standards of business ethics and organizational values. Abiding commitment to health, safety and environment to enrich quality of Community life. y Foster a culture of trust, openness and mutual concern to make working a stimulating & challenging experience for our people. y y y Strive for customer delight through quality products and services. Integrated in Energy Business. Focus on domestic and international oil & gas exploration and production business opportunities. y y y Providing value linkages in other sectors of energy business. Creating growth opportunities and maximize shareholder value. Retain dominant position in Indian Petroleum sector and enhance India's energy availability.


y To maximize production of hydrocarbon, self reliance in technology, promoting indigenous efforts to achieve self reliance in technology, promoting indigenous efforts to achieve in all related equipment, material and services. y Assist in conservation of oil, more efficient use energy and development of alternate source of energy. y y Environmental protection. Observe 100% safety in work.


Employees are working in different set-ups; at the drill sites where days ON/OFF pattern is prevalent and the officers and staff 8 hours duty at base office where apart from normal office

hours some services like radio communication etc. are round the clock jobs . The work force is approximately 33,000 with about 135 Officers and Remaining Staff.


From staff strength of 450 employees in the year 1956-57, ONGC staff has grown up to 32974 at present. There are about 15 broad disciplines under four main heading of y y y y Engineering Services Drilling Services Geophysical services and Administration and other support services. Up to 1968, there was rapid advancement of individuals due to considerable expansion of work. Thereafter, some stagnation took place in the career advancement of the employees.


ONGC operations are being internationalized with a view to acquiring exploration acreage and access to oil in other basics world over in line with the over strategy followed by international oil companies .ONGC Videsh Limited .a subsidiary of ONGC , is managing the overseas ventures.



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Highest accretion of Ultimate reserves in last 18 years from domestic fields. Reserve Replacement Ratio more than 1 for the fifth consecutive year. Turnover and net worth recorded new highs. The highest profit making Company, in private or public sector. The net worth Rs. 16,126 crore, marginally lower than the previous year (Rs. 16,701), was despite supporting downstream oil PSUs with the highest ever of subsidy discount of Rs. 28,225 crore.

Flagship energy major

ONGC has been ranked as the 3rd largest E&P Company in the world and 26th among leading global energy majors as per Platts Top 250 Global Energy Company rankings 2009

ONGC has been ranked as the most valuable Indian PSU based on market capitalization by Business Today, Nov 2009

ONGC has been ranked as No. 1 Blue Chip Company of India in the Finance Asia 100 list of 2009 with highest aggregate net profit for the period of 2006-2008; No. 1 among Asian companies

Corporate Social Responsibility (CSR)

ONGC has resolved to earmark 2% of the net profit (compared to 0.75% earlier) for the various CSR projects which will be looked after by a dedicated group at the corporate level.




Today, ONGC is the Maha-Navratna company of India; and making this possible is a dedicated team of approx. 32974 professionals who toil round the clock. It is this toil, which amply reflects in the performance figures and aspirations of ONGC. The company has adapted progressive policies in scientific planning, acquisition, utilization, training and motivation of the team. At ONGC everybody matters, every soul counts. ONGC has a unique distinction of being company with in house service capabilities in all the activity areas of exploration and production of oil & gas and related oil field services. Company has adapted progressive policies in scientific The men & women behind this machine made this possible. Over 18,000 experienced and technically competent executives mostly scientists and engineers from distinguished Universities /Institutions of India and abroad form the core of our manpower. They include geologists, geophysicists, geochemists, drilling engineers, reservoir engineers, petroleum engineers, production engineers, engineering & technical service providers, financial and human resource experts IT professionals and so on. Behind the excellent results achieved is a work force of 33000 strong belonging to various discipline of the company actively in the persistent search of oil and infuse with a new ethos and productive work culture. The Company is aware that its success is mainly due to its greatest assets its people a multifaceted, multidisciplinary group with complete n- house capabilities for all activities in the industry. To meet the requirement of manpower, revised manpower norms for operation of drilling rigs have been approved and implemented.

To meet the challenges of the future ONGC has to diversify its activities with zero manpower growth. Attempts have been made to form out the low technology jobs. A major thrust is being given to the introduction of multi-craft manning. This will result in job enrichment.

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 and team working and aligning business priorities with aspiration of employees leading to a development of an empowered, responsive and competent human capital.

HR Objectives

To develop and sustain core values. To develop business leaders for tomorrow. To provide job contentment through empowerment, accountability and responsibility. To build and upgrade competencies through virtual learning, opportunities for growth and providing challenges in the job. To foster a climate of creativity, innovation and enthusiasm. To enhance the quality of life of employees and their family. To inculcate higher understanding of Service to a greater cause.

HR Strategy

To meet challenging demands of the business environment, focus of the HR strategy is on change of the employees mind set.

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Building quality culture and resources. Re-engineering and redeployment for maximizing utilization of HR potential. To build and upgrade competencies through virtual learning, opportunities for growth and providing challenges in the job.

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Re-strengthening mutual faith, trust and respect. Inculcating a spirit of learning & enjoying challenges.

Role of HR
Alignment of HR vision with corporate vision. Shift from support group to strategic partner in business operations. HR as a change agent. Enhance productivity and performance by developing employee competency and potential. Developing professional attitude and approach. Developing Global Managers for tomorrow to ensure the role of global players.

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 bounds initiatives

Some of the possible interventions that could help in enhancing retention are as follows:

Treating employees like customers

Companies should have a similar approach to employees and customers. A company should strive to retain an employee in the same way it tries to retain a customer.

Vision and objectives

Mentoring and handholding new recruits from day one till few months are important tasks; during this period, they should be familiarized with the culture of the company. They should be exposed to the best values the company has. If they are informed about regular happenings in the company, employees will be confident about the future and not try to look for better options. Understanding an employees needs at various levels is a recommended HR practice. Under this initiative, all team leaders meet regularly to exchange information about the challenges and successes of their respective teams. Exposure to newer technologies and well-managed succession plans cannot be ruled out in managing attrition. Training in the employees area of specialization can glue him to the company. The training and development should involve domain-specific, technology-specific and behavioral skills. Identifying the right training for the right person is very important. The use of new technologies, the support of learning and training, and a challenging environment rank higher than competitive pay structures as effective retention practices.

Considering feedback
It is important to take feedback from employees through different means and work with the HR department to iron out differences. As industry experts point out, feedback can be got in two

waysduring the employees tenure, and through Exit Interviews. Inputs can be secured from existing employees through various employee relationship management tools. Exit interviews help management learn the reasons why employees leave the company; based on their revelations, the organization can address the problems of existing employees, thereby curb attrition.

Employee s advocate
One of the main reasons why employees leave companies is because of problems with their managers. An HR professional should act as an employees advocate and a bridge between top management and employees at all levels. While most organizations want to blame turnover on wages and benefits, they actually do not play a big role in why people leave their jobs. First, lack of appreciation is itself a negative. There are many managers who are very nice people, but who manage almost exclusively by negative reinforcement--not because of what they do but because of what they don't do. Second, when you give out positives, whether it is a pat on the back or a raise in pay--if you give them equally to all performers, then you end up punishing the best performers. The third reason that employees feel negative about the workplace is that even though managers think they are creating a positive environment, they frequently fail to deal effectively and efficiently with problem performers.

Performance, output, and productivity form the backbone of organizations. High performance, high commitment and loyalty are the desired expectations of organizations. Individuals enter organization with some needs, aspirations, and expectations about work life. Organizations, on the other hand, focus on productivity, commitment and loyalty. Performance = f (ability x motivation)

One of the fundamental challenges being faced by the organizations is to sustain the motivational levels of their employees. There is a paradigm shift in the nature of functioning of todays organizations with delayering, downsizing, cultural diversity, job hoping and increased focus on individual competencies. However, the bottom line, that is, employee performance, still remains. Hence, in the present scenario it is quite crucial to maintain a self motivated work force that is loyal towards their organizations.

Motivation in an individual may be considered to be the result of an intrinsic or extrinsic factor. When individuals are self motivated, the rewards that they may experience are also more or less personal and abstract in nature. It may take the form of satisfaction, commitment, enthusiasm, or as loyalty in different degrees. In the absence of this, organizations may resort to various techniques to create or sustain the motivation of the employees. It is here the role of management in extrinsic rewards comes into play, and the rewards system becomes critical to employee performance and organizational success. The organizations may have latest technology, well thought-out strategies, detailed job descriptions and comprehensive training programs, but unless the staff are rewarded for their performance-related behaviors, the entire process may be meaningless the challenge for the management is to understand the behavioral reality, eliminate

the undesirable influences, and reward the desirable behaviour more effectively. Thus, the organizational reward system becomes the key, often overlooked, factor in bringing about improved performance and success.

As organizations are becoming leaner and attaining a global status, money is definitely playing an important role. However, non-financial rewards are playing an even more important role in motivating employees. According to recent employee behavioral surveys, employees placed far more value on non-financial benefits and rewards than on financial ones. In a study of 1500 employees across the nation, it was found that instant recognition from the superiors was the most important reward valued. In another study, the major reason cited for leaving the organization was the lack of praise and recognition from superiors. In other words, there is little doubt that non-financial factors can be very powerful, but as a reward technique to manage behaviour and improve performance, these are often overlooked.


To work is an innate need, an inborn propensity, characteristics of human beings. Apparently, activity is carried out for achieving satisfaction. Human beings are adapted to work and have related their emotions, life and relations with their work. Our whole society revolves around the work we do or the work the other people do. Work plays such an important role in our lives that we link our esteem and well being with it. That is why it is essential for every organization to keep its employees motivated and satisfied. The role work plays in ones life can be jotted down as:y y y y Work roles contribute to personal identity. Work roles provide opportunities for interactions with others. Having a work role enables an individual to sustain status and self-respect. Work roles provide scope for personal achievement, meeting, and surpassing objectives recognized by others as valuable or praiseworthy.

Work provides for assuring oneself of ones capacity to deal effectively with ones environment and developing that capacity.

Work provides the individual with opportunities to relate him to society and to contribute to society by providing needed goods and services.

It is then obvious that work serves many purposes. All the times there were many scientists studying the working behaviour of employees so that it could get them into some aspects that dealt with the productivity of the employees. But the bottom line is that employees are more productive when they are motivated and they are satisfied with their job.


ONGC is an organization which is a pride for the nation, the reason being its excellence in its performance. The reason behind this is its strategies outside as well as inside the organization. ONGC is a firm which knows how to deal with the internal as well as the external environment of its functioning. If we deeply look into its smooth running work environment, then we would find the initiatives this giant corporation has taken for the well being of its people. ONGC is committed to its value and promise of creating a healthy work environment for its employees, which facilitates their growth, builds up their confidence, and fosters in its employees a sense of belonging as well as job satisfaction. A lot has already being done here at ONGC, many are in process and much more is planned, for the valuable employees of the renowned ONGC.

ONGC is a firm which believes that the non-financial benefits are as much important as the financial ones, and hence has thoughtfully kept a balance between both, as both are great motivating factors. Therefore, like any other employee friendly organization, ONGC too has two types of motivating factors:y y FINANCIAL BENEFITS & NON-FINANCIAL BENEFITS


Financial benefits, as we all know, are monetary incentives or rewards that are given to employees for their performance or contribution in the organization. At ONGC there are ample of such benefits which prove as a major motivating force for the employees. These monetary rewards or incentives vary according to the performance as well as the rank of the employee subtitled to it.



Incentive evaluation is on three-tier basis: 1. Project Level: 2. Regional Level: Direct workers are eligible for job fulfillment incentive payment. All personnel posted at Regional headquarters and their project

personnel (excluding Institute of Reservoir Studies at Ahemdabad) are eligible for quarterly incentive on fulfillment of 100% weighted achievement. 3. Corporation Level: incentive. Quarterly/Annual Incentive a) Table for Quarterly Incentive RATE OF INCENTIVE ON PERCENTAGE OF PAY EARNED DURING THE QUARTER All employees in regular full time service of the Corporation

on fulfillment of 100% weighted achievement of annual target are eligible for annual



7.2 + 0.2 for each 1% above 100%


8.0 + 0.3 for each 1% above 105%


9.5 + 0.4 for each 1% above 110%

115 & above

11.5 + 0.5 for each 1% above 115%


Annual incentive rates will be the of quarterly incentive rates. Incentive calculations will be made on the minimum of the pay scale of an employee or on Rs. 2,000/- , whichever is less.


This incentive is entitled to executives who acquire higher/additional professional qualifications in their respective disciplines. 1. The incentive of two increments shall be given to the executives who attain First Class or 60% level (where such grades are awarded) in professional qualifications higher than the qualifications prescribed at the induction level after joining the Corporation.


Executives who had started their studies for acquiring higher/additional professional qualification prior to joining ONGC, but acquired the said qualification after joining the Corporation, are also eligible for benefit under the scheme.

QUALIFICATIONS INCREMENTS S.No. 1. Qualification Ph.D./D.Sc.(in disciplines)






Discipline respective All disciplines

Effective Date 28.12.1981*





Industrial All disciplines


Engineering & Management



All disciplines other 28.12.1981 than P&A








Management recognized by Govt. of

India as equivalent to Post Graduate Degree in Management. S.No. 5. Qualification Master in Admn. Discipline -doEffective Date 14.12.1992

Management/Master in Management Studies



Engineering disciplines




F & A discipline



Company Secretary



Legal 30.8.1982

disciplines 9. 10. 11. L.L.M. Master in Financial Management Master in Marketing Management Legal & IR disciplines F&A discipline Marketing 8.9.1990 14.12.1992 & 14.12.1992

Production disciplines


For recognition of special and significant role played by employees of the Corporation in establishment of In-place Reserves, a scheme for payment of Reserve Establishment Honorarium has been formulated.


Employees other than those covered under the provisions of Bonus/Ex-gratia payment are eligible for REH.


Amount available for disbursement is the money value of 2% of accreted recoverable reserves of Oil and OEG.


Amount permissible is 20% of pay + DA subject to a maximum of Rs. 8400/- p.a.



The Corporation has a scheme for granting recognition for sustained good work or outstanding performance in the discharge of ones duties in the technical or administrative fields, or invention, or suggestions which may give rise to a new find or result in improved efficiency or outstanding distinction in sports/adventure etc.

The employees selected for such a recognition are rewarded as follows:-

advance increment(s); or

A sum of Rs.10,000/- per annum is placed at the disposal of Regional Heads, Institutional Heads/Designated Heads of Business Groups, Personnel and Finance at Hqrs. (by whatever designation they may be called) for grant of cash award in recognition of meritorious work done by the employees up to the level of Deputy Manager/E-3.

A sum of Rs.5,000/- is placed at the disposal of Deputy General Managers In charge of independent Project/Manager/Heads of Directorates (by whatever designation they may be called) for grant of cash award in recognition of meritorious work to employees up to the level of Deputy Manager/E-3

Directors may sanction cash award amounting to Rs.1,000/- in each case.

y y y There are various other benefits like loans available at low interest rate, pension provision, Employees are also sent for training programs to international work stations to facilitate their growth and enhance their skills. Laptops and cell phones are also provided to the employees.


These are the benefits or incentives that do not involve any monetary benefits or rewards and are associated by status security and recognition and also removing the fear of risk from the minds of the employees.



Performance of each individual is very crucial for each organization. It is an important factor which decides whether the organization will flourish or crumble to the competition? And as much important is performance for an organization so is employee performance appraisal to an employee. Performance appraisal is linked to promotions, satisfaction, and career planning from the employee point of view and from the organizations perspective. Individual performance is a highly varying factor. A lot of subjective and work-related aspects contribute to the effectiveness of the performance of an individual. Performance appraisal can be described as the process of reviewing employee performance, documenting the review, and delivering it to the employee in the form of feedback.

In an organization as huge and well functioning as ONGC, special attention is given to performance appraisal. For strengthening the organization, it is essential to help employees grow. ONGC there are various ways of performance appraisal and it also results in rewards and awards at events of this firm. Appreciating the work of the employee in the employee book is the most common one; it plays a great role in promotions and other awards.


The Corporation has a scheme for granting recognition for sustained good work or outstanding performance in the discharge of ones duties in the technical or administrative fields, or invention, or suggestions which may give rise to a new find or result in improved efficiency or outstanding distinction in sports/adventure etc.

The employees selected for such a recognition are rewarded as follows:A certificate of merit, a copy of which is placed in their confidential report dossiers.

Such recognition is also given due publicity in the Corporations house journal and other media.

Powers for grant of awards for meritorious work.


So as to give workers an incentive to think constructively, to keep their interest alive in the progress and development of the expanding activities of the Corporation, and above all to create in them a greater sense of participation in the programs and activities of the Corporation and, further, to ensure that their contributions do get due recognition, a Suggestion Scheme has been introduced in the Corporation.

This scheme gives the employees an opportunity to put forward their suggestions/ideas for cutting down cost, increasing output, eliminating waste, ameliorating working conditions, improving quality of products and services etc. leading to a greater efficiency and higher

productivity. The object of the scheme is to recognize and reward inventiveness, originally of approach and other allied qualities.


The prizes are awarded at formal ceremonies by the heads of the projects/offices concerned and entries on this account are also made in character rolls/service records of the recipients concerned. The prize lists, with the relevant suggestions, as accepted with the photographs of winners, are given wide publicity by exhibiting the same on notice boards, publishing the same in the Corporations house journal etc.

Free Medical Facilities are provided to the employees and their dependent family members through dispensaries and hospitals of the Corporation, authorized Medical Attendants and also through Government/Recognized Dispensaries and Hospitals. These facilities are available to the employees even after the completion of their service term. There are provisions in the medical policies that if a particular treatment is not available at the ONGC hospital then the patient is referred to other well known hospitals like AIIMS etc, and all the medical as well as travelling expenses are taken care of by ONGC, putting no financial strain on employees.


To organize, maintain and improve various welfare amenities, Employee Welfare Committees are set up in various offices/projects of the Corporation. These Committees are responsible for provision of following types of amenities:(i) (ii) (iii) (iv) Indoor games Outdoor games Sports, annual sports and any other athletic activity Cultural activities, like dramas, variety shows, etc. including audio-visual activities (v) Library-cum-reading room.


To encourage exceptionally good performance, in all the activities of the Corporation, scheme of Non-monetary Incentive has also been introduced in the Corporation. In pursuance of this scheme:-

names of employees who render exceptionally good performance, with their photograph, together with details of exceptionally good performance, are published in the House journal;

Photographs of such employees, with brief resume of their good performance, are displayed for a minimum period of 3 months on a Board set up at a prominent place of the work centre under a bold tile PACE SETTERS

Such employees are made special invitees on such occasions as Independence Day, Republic Day etc. and

Such employees are especially introduced to the CMD and Directors, whenever they visit the respective work centers.