TABLE OF CONTENT

S. NO. TOPICS PAGE NO.

CHAPTER1ABC

ABOUT THE TOPICIntroduction ObjectiveExecutive summary

1-29

CHAPTER2A.B.

OVERVIEW OF ONGCHistory      ONGC mission, vision and objective

30-80

CHAPTER3B.

HR Department in ONGCHR policies of ONGC

81-97

CHAPTER4A.B.C.D.

Performance appraisal in ONGC Tools used in Performance appraisalMethodologyFeedback and analysis after Performance appraisalPerformance appraisal format for executive

99-124

CHAPTER5A.B.C.

Employee motivation in ongc Introduction ImportanceTheories

125-138

CHAPTER6 Major decisions in last 5 years in HR department 139-149

CHAPTER7 Employees welfare schemes in ONGC 150-180

CHAPTER8 Employees Participation in Management in ONGC 181-185

CHAPTER9 FINDINGS & LIMITATIONS 186

RECOMMENDATIONS 187-188

189

190

CHAPTER 1ABOUT THE TOPIC

INTRODUCTION-Keeping in mind the growing attrition rates and the employee dissatisfaction among the employees, the HR professionals are approaching and using the performance appraisal as a fuel to motivate employees. The latest trend being followed by the HR professionals is to use the performance appraisal and review process as a motivating mechanism. Various surveys and studies have testified the relationship between performance review, pay and motivation. Other than the traditional goal of accessing the performance of the employees, Performance appraisals and reviews can be used as a tool to reinforce the desired behavior and competent performance of the employees.One of the most motivating factors for the employees, in the Performance appraisalprocesses is to receive a fair an accurate assessment of their performance. Inaccurate evaluation is one reason because of which most employees dread going through performance appraisals. An employee always expects his appraiser to recognize and appreciate his achievements, support him to overcome the problems and failures. 

The discrepancies and the inaccuracies in the performance review can demotivate the employees, even if there has been an increase in the salary. Such inaccuracies can kill the innovating and risk taking enthusiasm and spirit in the employees. Similarly, inaccurate reviews with no hike in compensation can increase the attrition rate in the organization, forcing the employees to look out for other options. An employee prefers an accurate performance review with no increase in the salary over inaccurate performance review with an increase in salary. 

Employees, who receive both accuracy and a pay increase during their performance review, are likely to be the most motivated. Therefore, performance appraisal (review and its consequence in the form of compensation adjustments) has the potential of motivating employees and increasing their job satisfaction. 

OBJECTIVESObjective means a purpose or goal. It is commonly used in any assignment means goal intended to be attained My project was “EMPLOYEE MOTIVATION AND PERFORMANCE APPRAISAL IN ONGC.” which includes performance appraisal process and welfare activities of the company to motivate the employees. The main aim of undertaking this project is that a lot of work has been done for the progress of HR in the organizations. Sincere efforts have been made to look into the initiatives taken by ONGC for the betterment of their HR. The main objective of my project is-To study the HR department in ONGCTo study the HR policies of ONGC.To identify the performance appraisal system in ONGC

To know Employee motivation in ONGCTo identify Major decisions in last 5 years in HR department.To study Employees welfare schemes in ONGCTo know Employees Participation in Management in ONGCTo provide finding and suggestions regarding the HR initiatives taken by the company for the welfare of it’s employees for improve their standard of livingEXECUTIVE SUMMARYThe objective of this project is to critically study & analyse the “ Employee motivation and performance appraisal in ONGC.The welfare schemes play important role in the industrial concern because the human resource is the real asset of any company. So it is the duty of the concerned employer to provide the employees the various facilities required for comfortable life in order to motivate them. Company provides lots of facilities to employee such as- Education Facility- Schools, Medical Facility- Hospitals, Clubs- Social clubs, Religious Clubs, Sports Club for the benefit of employees, living facilities like colonies, parks, basket ball courts, auditoriums etc.Welfare schemes for Long service & Retired employee, Schemes for allotment of Vehicles, Marriage Gifts, Death Benefit, Long Service Award and Good Worker Award.For studying the level of FAMILY SATISFACTION in employee’s family a survey is done. Primary Data is collected via Questionnaire by visiting employee family & talking to them regarding Welfare Schemes. For the study of various Welfare Schemes the data obtained is the secondary data. The secondary data is obtained from the Company manual, registers, documents and also through discussions with the manager and other learned and experienced professionals at OIL AND NATURAL GAS CORPORATION LTD.The result of the analysis indicates the level of satisfaction in employee’s family from Welfare Schemes & to implement various Recommendations & Suggestions given by employees to improve standards of Welfare Schemes. Hence it is recommended that the company tries to keeps up its efforts in maintaining the standards of Welfare facilities & Schemes because Employees are the real asset of the company

CHAPTER 2OVERVIEW OF ONGCONGC

CORPORATION PROFILEOil & Natural Gas Corporation Limited properly known as ONGC , republic India’s numberone company with significant company in industrial and economic growth of the country is aleading National Oil and Natural Gas producing company of India engaged mainly in exploration,development and production of crude oil, Naturals gas and some value added products. It has gone through its life cycle and now reached to its maturity stage after overcoming birth & growth stage .The organization was born over about five decades ago on 14th August 1956 ND today ONGC is a fortune 500 company having more than 35000 employees as on date working in different in India and abroad. The modest corporate house within serene Himalayan setting at Dehradun and Registered office at Delhi. ONGC has grown into a full fledge horizontally integrated upstream petroleum company with adequate in house capabilities and infrastructure in the entire range of oil and gas exploration and production activities and related oil fields engineering services .From a small directorate to a monolith today ONGC is circumpassing the entire public gamut 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 fasten the principle of relational enterprise throughpartnership\strategic alliances \joint ventures with preferred partners and adopt a business strategyOil and Natural Gas Corporation Limited (ONGC) (NSE: ONGC, BSE: 500312) is an Indian multinational oil and gas company headquartered in Dehradun, India. It is one of the largest Asia-based oil and gas exploration and production companies, and produces around 77% of India's crude oil(equivalent to around 30% of the country's total demand) and around 81% of its natural gas.[2] It is one of the largest publicly traded companies by market capitalization in India.[3] ONGC has been ranked 357th in the Fortune Global 500 list of the world's biggest corporations for the year 2012.[1] It is also among the Top 250 Global Energy Company by Platts.[4]ONGC was founded on 14 August 1956 by the Indian state, which currently holds a 74.14% equity stake. It is involved in exploring for and exploiting hydrocarbons in 26 sedimentary basins of India, and owns and operates over 11,000 kilometers of pipelines in the country. Its international ONGC: coping with competitionThe conferment of Navaratna status on the ONGC was accompanied by promises of greater autonomy and flexibility, but there are no signs yet of policy and financial support being given to the company to re-establish self-reliance as the basic feature of its mission.V. SRIDHARTHE Oil and Natural Gas Corporation Ltd (ONGC), one of the Navaratna public sector companies, is India's national oil exploration and production company. It was established in 1956 as the Oil and Natural Gas Commission as an immediate consequence of the Industrial Policy Resolution of 1956, which laid the basis for industrial development in free India with emphasis on public sector-led growth.

Inspired by the spirit of self-reliance and backed by government policies, the ONGC enabled India to break the shackles of the international oil majors whose exploration and production goals in India were determined by their global interests rather than by any interest in finding, developing and producing from oilfields in India.In India, oil was first discovered in Digboi, Assam, in the late 19th century. In 1921, the United Kingdom-based Burmah Oil Company took over the Assam Oil Company, which controlled the oilfields and the only refinery in India, which was situated in the area. In 1931, about 2.5 lakh tonnes of oil was produced from the fields there. After Independence, multinational companies such as Royal Dutch Shell, Standard Oil and Burmah Oil were invited to explore for oil but they insisted that there was no oil available outside the Assam tracts.COURTESY: ONGC The processing platform at the Neelam offshore oilfield, near Bombay High. The ONGC accounts for more than 90 per cent of India's crude oil production and about 95 per cent of its natural gas production.The ONGC's first discovery was in the Cambay basin in 1958. In 1960 it struck oil in Ankleshwar in Gujarat. Through the 1960s, the ONGC made a string of oil discoveries in Assam. The then Union Minister for Natural Resources K.D. Malaviya, who also headed the ONGC, provided the political clout to counter the foreign oil companies. In the early 1960s when Caltex, Burmah Shell and Standard-Vacuum Oil Company stated that they would rather invest in oil refining, Malaviya insisted that since the profits were concentrated in the crude supply chain, India's priority should be the establishment of indigenous oil production.The ONGC also ventured overseas fairly early. In the 1950s it participated in oil exploration in the Persian Gulf. This led to the discovery of the giant Raksh and Rustam fields off the coast of Iran. It also ventured to Tanzania where the Songo gas field was discovered. In fact, foreign oil companies refused to process the crude that was the ONGC's share in the venture in the Persian Gulf. The ONGC acquired the status of a corporation in 1993.An important aspect of the ONGC program was the use of Soviet and Romanian assistance in oil exploration projects. An agreement with the Soviet Union for an offshore seismic survey enabled the collection of data from the Gulf of Cambay, the Arabian Sea and the east coast. Oil was struck in Bombay High in February 1974. Production from Bombay High stabilized in 1976-77 and increased rapidly until 1983-84, but has declined since then.Between 1980 and 1986, the Government offered foreign and private companies geographical blocks in India for exploration, but this did not draw a favorable response in three rounds of bidding. In 1992, the Government offered a more attractive option to foreign and private companies. The result was the controversial production-sharing contracts with private companies in 1994.The New Exploration and Licensing Policy (NELP), announced in March 1997, stipulated that the ONGC and Oil India Ltd (OIL), which earlier had first rights to production from blocks discovered by them, would have to bid with other private companies for oil and gas production rights. In effect, it abolished the principle that state presence was mandatory in oil exploration and production. Under the NELP, companies were offered international prices for crude

produced from new projects instead of prices fixed under the Administered Prices Mechanism (APM).Ironically, many multinational companies that were hostile to India's efforts at indigenous development of the petroleum industry after Independence have been attracted by the Government's controversial liberalised policy framework for oil exploration since 1991.COURTESY: ONGC The jack-up rig of Sagar Jyothi in Bombay High. The cost of crude oil produced by the ONGC is only about 40 per cent of that of imported crude.TWO major aspects of government policy threaten to undermine the basic character of the ONGC as the country's national oil exploration and production company. The first relates to the terms under which foreign and private companies are allowed to exploit oilfields that were discovered and developed by the ONGC. The most controversial of these is the ONGC's contract with a consortium comprising Enron Oil and Gas India Ltd and Reliance Industries Ltd for the production of oil and gas from the Panna-Mukta (Gujarat offshore) fields. Ravva, in the Krishna-Godavari offshore basin (Frontline, July 29, 1994), was offered to a consortium led by Videocon and Marubeni of Japan. Although the ONGC had a 40 per cent stake in these unincorporated joint ventures, there have been allegations that the ONGC has not been compensated for the investment that it has made in these projects.In fact, the joint venture for producing crude oil from the Panna-Mukta oilfields came under investigation by the Central Bureau of Investigation (CBI) following a public interest petition filed in the Delhi High Court (Frontline, March 20, 1998). In December 1996, the Comptroller and Auditor-General (CAG) observed that the terms of the joint venture between the ONGC and the consortium did not compensate the ONGC for the costs (nearly Rs. 700 crores) that it had incurred in prospecting.The second aspect of the policy is the dismantling of the APM for oil which will allow oil prices in India to be put on a free float along with international prices. The Government has initiated a phased dismantling of the APM, which would be complete by the year 2001-2002. The terms of the NELP will enable the ONGC to realise international prices for oil produced from new fields. However, there have been no major fresh discoveries since Bombay High; and whatever was discovered by the company was passed on to private companies.While the terms of the production-sharing contracts under the liberal policy regime have caused financial losses to the ONGC, moves towards the dismantling of the APM threaten to undermine its national character, although the ONGC will stand to benefit financially from such a move. The dismantling of the APM is likely to lead to higher oil prices. While this may boost the ONGC's profits, it will have a negative impact on the economy in general. The delinking of the

ONGC's commercial interest from the strategic national objective of a self-reliant oil industry is likely to be a major consequence of such a move. Of course, the improved profitability of the company will enable the Government to increase substantially its realisation from disinvestment, if and when it happens in the future.The Government announced recently that public sector oil companies could opt for a market-determined pricing mechanism or for a floor price. ONGC Chairman B.C. Bora told newspersons in New Delhi on April 1 that considering the current low level of international oil prices, the ONGC would opt for the retention price.Bora also sought a "level playing field" in the matter of levy of customs duty on goods and services that are used in oil and gas exploration and production. Whereas private companies are exempted from paying customs duty, the ONGC pays Rs.450-500 crores as duty.ALTHOUGH the conferment of the Navaratna status has been accompanied by promises of greater autonomy and increased flexibility for the company, there are no signs that policy and financial support is being given to the ONGC to re-establish self-reliance as the basic feature of the ONGC's mission. Such support has acquired urgency because the demand for petroleum is projected to double in the Ninth Plan period - from 607 million tonnes in 1996-97 to 1,100 million tonnes in the year 2001. Moreover, producible reserves have remained stagnant: reserves were at 739 million tonnes in 1995-96 - the same level that they were at in 1989-90. Experts have argued that the ONGC needs to improve its reserves-production ratio to offer a safe margin in the long term. Accretion to reserves will, however, require new finds, and making new finds will need substantial investments.KAMAL NARANG ONGC Chairman B.C. Bora.The ONGC produces more than 90 per cent of India's crude oil production and about 95 per cent of its natural gas. (OIL, operating mostly from fields in Assam, produces most of the remaining oil and natural gas.) The ONGC made a net profit of Rs.2,034 crores in 1996-97, the highest among all public or private sector companies in India. (RIL, India's largest private sector company, made a net profit of Rs.1,323 crores in 1996-97.) In 1997-98, the ONGC's net profit increased further to Rs.2,425 crores, buoyed by higher natural gas prices.THE ONGC's finest hour so far came in the mid-1970s when oil was discovered at Bombay High. Production from the wells there enabled India to face up to the second global oil crisis of the early 1980s and enabled the country to withstand a balance of payments crisis. In the mid-1980s, production from Bombay High enabled indigenous production to meet about 70 per cent of India's oil requirements; now the country is self-sufficient on this front to the extent of about 50 per cent.Although the ONGC operates under rather more unfavourable conditions in India as compared to companies that operate in oilfields in West Asia, the cost of crude oil produced by the ONGC is only about 40 per cent of that of imported crude. Critics of the Government's petroleum policy have said that the Government's failure to transfer funds from the Oil Industry Development Board (OIDB) has hampered the search for new fields and the development of oilfields already discovered by the ONGC. The critics blame this for the stagnation in crude output.

By the end of the 1996-97 financial year, a cess on oil had created a cumulative accumulation of nearly Rs.29,000 crores in the OIDB account. About Rs.902 crores had been transferred to the domestic oil industry until 1991-92; since then no transfers were made to the oil companies. However, the oil pool account has itself been in deficit because successive governments have used funds from the account to finance revenue expenditure, and the oil companies have not received funds to invest in exploration projects. This pushed the ONGC into joint ventures with private and foreign companies for oil production from fields that it had discovered and developed. The terms of some of these joint ventures have been criticized as being commercially disastrous for the ONGC.IN recent years, production problems in the offshore wells in Bombay High and Neelam (southwest of Bombay High) and in wells in eastern India have adversely affected the ONGC's crude output. Crude production fell from 31.64 million tonnes in 1995-96 to 29 million tonnes in 1996-97 and further to 27.73 million tonnes in 1997-98. An expert committee appointed by the ONGC to suggest remedial measures to arrest the fall in production confirmed that the decline was caused by the "flogging" of Bombay High oil wells. It advised the ONGC to cut production in the short term to safeguard oil reservoirs.The ONGC's consultant, Vam Poolen Associates, suggested a 25 per cent cut in production to rehabilitate Bombay High. Cutting output by this magnitude will result in a serious shortfall in crude oil availability - by at least five million tonnes. Critics say that the ONGC is paying the price for not having paid attention to protecting the long-term health of the wells in Bombay High. They also say that the ONGC had overestimated the oil reserves in the Neelam field.In an attempt to break out of the tight situation in India, the ONGC and its international wing, ONGC Videsh, have acquired large exploration acreage in Kazakhstan. The Kazakh national oil company, Munaygaz, has offered the ONGC a large oil refinery for revamping and management. The ONGC has also been urging the formation of a "loose consortium" of Indian public sector oil companies for such projects. The Indian Oil Corporation Ltd and the ONGC have reached an agreement to explore, develop, produce, refine, market and distribute petroleum products on a global basis.The ONGC, which has not drilled below 200 metres offshore until now, plans to venture into deeper waters. It has been awarded three deep-water sites in the Cauvery, Krishna-Godavari and Kerala-Konkan basins. Although the ONGC's critics have said that the company does not have the technology for deep-water drilling, the Sunderrajan Committee's report has observed that technology in the oil industry is fairly well diffused. This implies that induction of new

technology is marked by incremental refinements rather than dramatic jumps. Thus, its standing as an active player for a long time could well enable the ONGC to access new technologies.The ONGC plans to invest Rs. 19,000 crores in expansion and diversification programmes, including in projects abroad, by 2001-2002. Bora has called for a four-pronged strategy for the future. First, to focus more closely on the major basins in which the company is operating; second, to explore "frontier areas" for new finds; third, acquire acreages for exploration overseas; and fourth, to improve oil recovery methods to increase productivity. He has also said that the Navaratna package will provide "greater flexibility and freedom to make investment decisions" and enable the company to grow into a global giant.Since February 1997 the ONGC has implemented the Organisation Transformation Project in association with McKinsey and Company. Bora has said that the project will enable the ONGC to prepare itself for the opening up of the oil exploration and production businessONGC is not only the number one Exploration and Production Company in Asiatoday, but is also the number 3 E&P Company in the world. It is in the Oil and GasDrilling and Exploration Industry. In the oil and gas industry ONGC does a lot of research and development as well as refining and marketing. In 2007 they enteredthe energy field researching and developing alternative fuels.The company is currently recognized as the“Best Oil and Gas Company inAsia” by the ‘Global Finance’ magazine. In 2007 it was ranked 369.By the Fortune Global 500 list of largest corporations by turnover. This is only a smallmeasure of their performance thus far. By looking at this and many other achievements it is obvious that ONGC is not slowing down any time soon. Whentaking into account that it is doing business in what will soon be the most populated country in the world, they will only be growing from here. Our analysiswill look at the internal and external factors that affect the business. It will showhow strong they are in the Oil Industry but also focus on what they need to do tostay competitiveP.E.S.T ANALYS I S  Political Environment The political environment in India is one of a federal republic. ONGC is state-owned but this does not mean that the GoI is good for ONGC or doing things in the best interest of ONGC right now. The proposed mergers of HPCL, BPCL withONGC, and Oil India with IOC were the GoI’s ideas. This produced an uproar andthe mergers we set aside, but not without the GoI stating that the government willhave to restrict the respective companies to their core businesses. ONGC is also being made by the GoI to focus on exploration and production (E&P) of oil andgas. ONGC had been starting to move downstream and diversify its business bygoing into the refining and retailing business but the GoI put a halt to this. The positive side of having the political backbone of ONGC is that it gives thecompany stability and some security. When ONGC started they had multiply protection policies in place that kept them safe from global competition. As theyears went by, the GoI deregulated the industry and took away the state protection policy that kept ONGC safe. This has lead to new opportunities but it has alsoopened the door to a lot more threats.With the GoI focusing so much on oil and gas E&P and forcing ONGC to focus onit

as well, it is seemingly making E&P a core rigidity for the company. September 25, 2007 has found the GoI saying to ONGC that they need to “produce or perish”and that they will become a marginal player in the industry if they don’t comply.These are harsh words by the government and could be a fatal blow to ONGC for future business ventures and success. The GoI also recently blocked ONGC from bidding on a Nigerian oil field that would’ve helped increase their gas and oilassets outside of India. The GoI did not feel this was a good choice and blocked thedecision. Through all this it shows a highly influential “owner” of ONGC who iscommanding them to do things and not do things and not really knowing what’s best for the company. This is a huge hindrance to ONGC. Economical Environment India is one of the largest and fastest growing countries in the world right now.India’s population has already reached over one billion people and continues togrow rapidly. India is a part of the B.R.I.C., which stands for Brazil, Russia, Indiaand China, which are four of the fastest emerging and rapidly growing countries.With all these economic developments have also brought about a huge demand for energy, in which ONGC is the main player in India. This gives them a greatadvantage because there is a huge economic demand for oil and gas. Sociological Environment Sociologically the environment in India is one of growth and advancingintellectually. As mentioned before, the country has over one billion people andcontinues to grow. This creates a huge pool to pull from. India has been a major country for companies in other countries to outsource to. This is not only due tocost advantage, but also to an education advantage. The Indian people areemerging as a learning people and the potential for success in this kind of environment creates a strong foothold for any company.It’s interesting to note that ONGC employs approximately 40,000 workers in India.Compared to the amount of people that India has this number is not staggering. Butthis is still a large workforce under one company and could be used for leveragewhen making decisions with the government. This does not mean the company has been good to work for though. The company was recently scrutinized by the GoI because “attrition over the last one year has been the highest in the past five yearsand 328 professionals have left the organization.” And that “the main reason for this was the inability of ONGC to meet compensation packages being offered bythe industry.” This is not a good spot for ONGC to be, not only because they arelosing valuable workers, but also because it is getting them into even more troublewith the government.Technological Environment The technological environment in India is rapidly increasing. As the countrycontinues to grow, so also is the technology. With respect to the oil industry, ONGC was behind technologically, but has since put much needed money and focus on technology. ONGC realized that they were behind in the technological environment and this was creating a huge weakness with respect to their competitors. ONGC has turned what once was a weakness into a strength though.One such example was the acquisition of technology to meet Euro II standardsthrough the purchasing

of MRPL. ONGC also implemented advanced technologiessuch as Increased Oil Recovery, Enhanced Oil Recovery and Supervisory Controland Data Acquisition. Another great technology that they implemented, that reallygives them a competitive advantage is the Virtual Reality Interpretation Center,which is regarded as “one of the ten best such systems in the world for applicationsin exploration.” This greatly enhances their ability for oil recovery and also for acompetitive advantage. Other great technological advances was theimplementation of an ERP, MIS and inventory control system. ONGC alsoimplemented a completely digitized magnetic media seismic library, which isconsidered the one of the best in the world. This was a much needed improvementin technology over all their previous years to help compete on the world market. Itcannot be emphasized enough how important technology is in a large corporationlike this battling in a market that is very tough and depleting.Global Environment The global environment is a very competitive environment with respect to oil andgas exploration. With the continued depletion of these non-renewable fossil fuelsthe competition to secure oil and gas reserves is very intense. In 2005, ONGC losta bid to the Chinese company China National Petroleum Corporation to secure oil reserves in Canada and has since lost more battles such as this. On the world market ONGC is not the biggest player. Globally, the giant oil companies have seen an integration into other downstream elements of the oil industry to create a competitive advantage. ONGC not only faces competition from the global market, they also are in a race with each other with regards to integration and the way these major oil companies are runPORTERS 5 FORCE MODELThreat of new entrantsDue mostly to the industry that ONGC is in, it’s hard for there to be many newentrants. The only real threat that might arise would be another government funded Oil and Gas company. The reason for this is that a government would not have as hard a time raising funds and gaining access to resources. This is assuming that the company would be researching and developing on domestic soil. The only other threat may not be from new entrants but from smaller competitors who already have access to resources and distribution channels. There is really not much of a threat because there are two mainBarriers to entryThat would be stopping potential threats. These would be very highCapital requirementsas well as access toCost disadvantages independent of scaleEven though this industry if very attractive because of the high profits it would be very hard for a company to have enough capital to get in the market. Every part of Oil and Gas Exploration and Development is costly and not something that would be worth the costs as a new entrant into the industry. Going along with the high cost of capital are the cost disadvantages. The companies already in the industry already have the access to raw materials as well as desirable

locations. This is something that would be very difficult for a new entrant to try and gainsubsidiary ONGC Videsh currently has projects in 15 countries

INTRODUCTION OF ONGC•ONGC Group of Companies comprises of Oil and Natural Gas Corporation Limited (ONGC- The Parent Company); ONGC Videsh Limited (OVL – a wholly owned subsidiary of ONGC); ONGC Nile Ganga BV (ONG BV - a wholly owned subsidiary of OVL) andMangalore Refinery and Petrochemicals Limited (MRPL - a subsidiary of ONGC). Oil and Natural Gas Corporation Limited (ONGC) is India's Most Valuable Company, having amarket share of above 80% in India's Crude Oil and Natural Gas Exploration andProduction. ONGC registered the highest profit among all Indian companies at US $ 1.92 billion (Rs. 8664.4 Caror) in the year 2003-04. Its production of Crude Oil in 2003-04 was26.7 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 Videsh Limited (OVL) is overseas arm of ONGC, engaged in Exploration &Production Activities. It trans-nationally operates E&P Business in 10 countries, makingONGC the biggest Indian Multinational Corporation. In recent years, it has laid footholds inhydrocarbon acreage in various countries including Ivory Cost and Australia. ONGC NileGanga BV is a wholly owned subsidiary of OVL and has equity in producing field in Sudan.

•ONGC envisages organizing Import/International Sale of Crude Oil and Export of Petroleum Products through Tendering Procedure for all the Group Companies. However, itwould be restricted to the Companies/ Firms/ Vendors registered with ONGC on itsapproved Vendor Lists.

Subsidiaries of ONGC1 ONGC Videsh Limited (OVL)2 Mangalore Refinery & Petrochemicals Limited (MRPL

SWOT ANALYSIS

1. STRENGTHSA) O.N.G.C LTD is perceived to be the leader in oil production industry.B) O.N.G.C has a very efficient and professional management team.C) O.N.G.C being an international company has sufficient resourcesand capital to invest.D) O.N.G.C has ISO-9001 & ISO 14001 registration.

2. WEAKNESSESA) O.N.G.C facing difficulties to produce oil from aging reservoirs.

3. OPPURTUNITYA) Energy utilization of buried coal resource (700 -1700M), estimated63BT – Equivalent to 15000 BCM.B) O.N.G.C facing difficulties to produce oil from aging reservoirs.

4. THREATA) Security of personnel & property especially crude oil continues to bea cause of concern in certain area.B) In some exploration Campaign Company involves high technology,high technology, High investment and high riskOil & Natural Gas Corporation Limited (ONGC) is one of the world’slargest integrated exploration and production companies, having theright expertise in exploration, drilling technology, reservoir studies, engineering and ocean technology-dorm of over 4 decades of experience. ONGC is producer of more then 22 Million Tones of oil. ONGC has set up seven exclusive institutes to meet its R&D needs and consultancy supports in all the areas of hydrocarbon sector,  from exploration to exploitation, multidimensional expertise in diversefields of upstream petroleum industry. ONGC institutes integratedservices (OISS) is a common platform for these institutes and provide synergetic expertise in all the areas of upstream oil sector through single window service, of international standards in terms of quality, reliability, cost effectiveness and time consciousness. ONGC has made important oil-gas discoveries in the country and to day the numbers of discovered fields are around 200. ONGC is ranked among top 20 oil companies in the world and is ranked 1staccording to its net worth, reserves and profits. ONGC, which has been granted the status of “NAVRATNA” is one of the eleven elite public sector organization selected for development as global giants, and may be accorded the status of “MAHANAVRATNA”.Today, ONGC is Fortune2000 Company, the most valuable companyin India (by market capitalization) contributing 77% of Indian crudeoil production & 81% of India total gas production. It is the highest profit-making corporation in IndiaSPECIALIZATION AREAS OF ONGC•Geo chemical studies, Bio-stratic graphic analysis.•Basic evaluation, prospect generation & techno-economic analysis.•Formation evaluation and reservoir modeling.•Estimation of reservoir and reserves.•Application of secondary recovery and EOR techniques.•Drilling operations including horizontal and drain hole.•Well loading operations.

•Reservoir management.•Design direction and maintenance of oil and gas production installation.•Artificial Lift design. Down whole completion system.•Stimulation techniques.•Long distance transportation of oil and gas.•Erection and maintenance of oil sweetening plants.•Corrosion studies in offshore structure.•Training of manpower.•Engineering and construction of offshore, platforms and pipelines.•Equipment management and quality assurance.•Safety audits and environmental studies. MAJOR PRODUCTS OF O.N.G.C•Crude Oil.• Natural Gas.•Liquefied petroleum Gas.•Natural Gasoline.•Ethane/Propane.•Achromatic Naphtha.•Superior Kerosene Oil. •Rely on company skills & positional assets.•Crude Oil.•Natural Gas.•Liquefied petroleum Gas.•Natural Gasoline.•Ethane/Propane.•Achromatic Naphtha.•Superior Kerosene Oil.

ONGC AS “NAV RATAN COMPANY”The liberalization of Indian economy and the consequent drive of integration with world market have thrown up a plethora ofopportunities for ONGC to become globally competitive and access global markets. The Indian Government has identified ONGC as leading ‘Navratna’(Nine Jewels). To support in its drive to become Global giant bygranting enhanced automation and delegation of powers.The envisioned future of ONGC becoming a leading Global energycompany makes its imperative to move from the era of soleownership to partnership fostering the principal of extendingenterprise and adopts a growth strategy, which resolve to: •Rely on company skills & positional assets•Focus on core business areas.

•Opportunity specific diversification.•Strategic alliance/joint venture with preferred partners.•Market Focus: Domestic and overseas E & p, related and other segment of energy sector.•Ensure highest possible levels of customer satisfaction through quality, service and values.•Company promotion to achieve the image of most preferred business ally/ service provider/ employer.•Natural consequences of the above growth strategy for bothmedium & long term would be that ONGC would continue to access E & P business both in the domestic and international sector.• strive to reach out to opportunities specific related of downward sector, core competence service business, energy and other sector in general.HISTORYONGC (Oil and Natural Gas Corporation Limited) is India's leading oil & gas exploration company. ONGC has produced more than 600 million metric tonnes of crude oil and supplied more than 200 billion cubic metres of gas since its inception. Today, ONGC is India's highest profit making corporate. It has a share of 77 percent in India's crude oil production and 81 per cent in India's natural gas production. 

The origins of ONGC can be traced to the Industrial Policy Statement of 1948, which called for the development of petroleum industry in India. Until 1955, private oil companies such as Assam Oil Company at Digboi, Oil India Ltd (a 50% joint venture between Government of India and Burmah Oil Company) at Naharkatiya and Moran in Assam, and Indo-Stanvac Petroleum project (a joint venture between Government of India and Standard Vacuum Oil Company of USA) at West Bengal, were engaged in exploration work. The vast sedimentary tract in other parts of India and adjoining offshore were 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 the Public Sector development. To achieve this objective an Oil and Natural Gas Directorate was set up in1955, as a subordinate office under the then Ministry of Natural Resources and Scientific Research.

The Industrial Policy Resolution of 1956 placed mineral oil industry among the schedule 'A' industries. In August 1956, to ensure efficient functioning of the Oil and Natural Gas Directorate, the Directorate was raised to the status of a commission with enhanced powers. In October 1959, the Commission was converted into a statutory body by an act of the Indian Parliament, which enhanced powers of the commission further. In 1960s, ONGC found new resources in Assam and established new oil province in Cambay basin (Gujarat). In early 1970s went offshore and discovered a giant oil field in the form of Bombay High. After liberalization in 1991, ONGC was re-organized as a limited Company under the Company's Act, 1956 in February 1994. Today, ONGC has grown into a full-fledged horizontally integrated petroleum company. Recently, ONGC has made six new discoveries, at Vasai West (oil and gas) in Western Offshore, GS-49 (gas) and GS-KW (oil and gas) in Krishna-Godavari Offshore, Chinnewala Tibba (gas) in Rajasthan, and Laipling-gaon (oil and gas) and Banamali (oil), both in

Assam. 

ONGC has a fully owned subsidiary, ONGC Videsh Ltd (OVL) that looks for exploration opportunities in other parts of the world. OVL is pursuing exploration of oil and gas in Russia, Iran, Iraq, Libya Myanmar and other countries. ONGC has also acquired 72% stake in MRPL with full management control of the 9.69 tonne, state-of-the-art refinery. 

Major Achievements of ONGCJudged as Asia's best Oil & Gas company, as per a recent survey conducted by US-based magazine 'Global Finance'Ranked as the 2nd biggest E&P company (and 1st in terms of profits), as per the Platts Energy Business Technology (EBT) Survey 2004.Leads the list of Indian companies listed in Forbes 400 Global Corporates and Financial Times Global 500 by Market Capitalization.Only fully-integrated petroleum company in India, operating along the entire hydrocarbon value chain.Holds largest share of hydrocarbon acreages in IndiaTo further the development of oil and natural gas exploration and mining in India, the Ministry of Natural Resources and Scientific Research, GoI set up the =Oil and Natural Gas Commission‘ in 1956 ("Commission'). In October 1959, the Commission was converted into a statutory body pursuant to the Oil and Natural Gas Commission Act, 1959 (now repealed). The main functions of the Commission were to plan, promote, organize and implement programmes for development of petroleum resources and the production and sale of petroleum and petroleum products produced by it, and to perform such other functions as the Central Government may, from time to time, assign to it. Our Company was incorporated under the Companies Act on June 23, 1993 as Oil and Natural Gas Corporation Limited and was granted the certificate of commencement of business on August 10, 1993. Pursuant to the Oil and Natural Gas Commission Act (Transfer of Undertaking and Repeal) Act, 1993, the undertakings of the Commission together with all its assets, movable and immovable properties, contracts, licenses and privileges along with all liabilities and obligations of the Commission in relation to its undertakings stood vested in our Company and were transferred to our Company on February 1, 1994.

1956 -Oil and Natural Gas Corporation(ONGC) was set up in 1956 with significant contribution in industrial and economic growth of the country.

1959 

- In October the Commission was converted into a statutory body by the Oil and Natural Gas Commission Act, 1959. The main objectives of the Commission were to plan, promote, organise and implement programmes for the development of oil and natural gas resources and the production and sale of oil and natural gas products.

- ONGC functions as the primary arm of the Government as regards exploration for and exploitation of India's petroleum resources. The Company's revenues are derived primarily from the sale of its production of crude oil, natural gas, liquefied petroleum gas (LPG),C2-C3 (ethane-propane) and natural gasoline (NGL).

- To strengthen reserves accretion portfolio and open up areas of future exploration, ONGC has undertaken an Accelerated Programme of Exploration with an outlay of Rs 3958 crores. - The main objectives of APEX was Enhancement in seismic surveys, enhancement in exploratory drilling, national seismic programme, exploration in frontier areas and acquisition of foreign acerage.

- ONGC has assimilated various technologies in the field of hydrocarbons explorations and exploitation. The Company owns Dornier-228 aircraft, chetak helicopter, offshore supply vessels and geo-technical survey vessel. It has 2 central work shops located at Baroda & Sibsagar, 7 project workshops and 11 auto workshops located at various project sites employing multifavious equipments and machinery. It has also state-of-the-art communication systems both terrestrial and satelite based for meeting operational & MIS requirements of onshore & offshore.

1992

- ONGC undertook exploitation of Coal Bed Methane (CBM) potential in Damodar valley.

1993

- Oil and Natural Gas Corporation Limited ("ONGC") was incorporated by the Government of India as a Public Limited Company under the Companies Act, 1956 on 23rd June. The company is engaged in the exploration, development and exploitation of hydrocarbons i.e. crude oil and natural gas.

-The company was subsequnely converted into a public limited company in Jun.'93 following new liberalized economic policy adopted by the Government of India in July, 1991 sought to deregulate and delicense the core sector (including petroleum sector) with partial disinvestment of Govt. equity in Public Sector Undertakings and other measures. 

1994

- The Company acquired the undertaking, business, assets and liabilities of the erstwhile Oil and Natural Gas Commission ("the Commission") on 1st February.

1996

- The company's major projects include installed HX-HY platform for the development of Heera Phase III completion of Hazira terminal phase IIIA & the two EOR projects in the heavy oil velt in North Gujarat. In addition, ONGC submitted four new projects for government approval.

- ONGC holds 40% participating interest in three joint venture contracts for development of Ravva, Panna-Mukta and Mid & South Tapti.

- The Company embarked upon exploration in the deep sea basin on the East and West Coast of the country. The interpretation of Seismic data acquired in the deep water offshore areas led to identification of a number of prospects in Krishna-Godavari, Cauvery, Kerala-konkan & Kutch basins.

- The Government gave its approval for a joint venture proposal of Gas Authority of India Ltd., Indian Oil Corporation, Bharat Petroleum Corporation Ltd. & ONGC for import of LNG & setting up appropriate LNG terminals to meet the demand for gas in the country.

- ONGC Videsh Ltd is a wholly owned subsidiary of the company.

- 3428,53,716 shares issued to the President of India. 1076,440,366 No. of equity shares issued as bonus shares. 66,39,910 No. of equity shares disinsted.

1997

- ONGC and Bharat Petroleum Corporation Ltd (BPCL), are exploring the possibility of setting up the proposed paraxylene venture at Hazira as a private sector project.

- The Oil and Natural Gas Corporation (ONGC) has taken up joint venture projects in the fields of exploration, development and production in seven countries: the United States, Russia, Vietnam, Yemen, Tunisia, Egypt and Kazakshtan.

- The Institute of Oil and Gas Production Technology (IOGPT), a premier research and development institute of Oil and Natural Gas Corporation Ltd has been awarded the prestigious certificate of ISO 9001 for design development and consultancy including lab study and training for hydrocarbon production, processing and refining.

- ONGC would float a joint venture company to carry out exploration at Neelam - an oilfield at Mumbai High. The venture with a private foreign company would be set up with an equity participation of 50 per cent each.

- The ministry of petroleum and natural gas has invited joint ventures with Oil and Natural Gas

Corporation for exploration.

- Royal Dutch Shell group, the world's largest oil company, plans to join hands with Oil & Natural Gas Corporation to help revive production at the Neelam oil field of the public sector company.

- For the first time in India, Oil and Natural Gas Corporation Ltd (ONGC) has installed a 24-hour video conferencing facility from its control room at Bandra to offshore platforms in Mumbai Offshore.

- Leading global oil companies like Chevron, Occidental, Brown and Root Energy Services (BRES), Total, Marathon Oil, Shell and Amoco have approached the Oil and Natural Gas Corporation (ONGC) for a joint venture to enhance crude oil output from the Neelam field.

- The joint venture committee of the Oil and Natural Gas Corporation (ONGC) is close to finalising plans for picking up a stake in the Central India refinery.

- Oil and Natural Gas Corporation (ONGC) is all set to implement of part of the recommendations made by McKinsey & Co within two months.

- For the first time, Oil and Natural Gas Corporation (ONGC), the oil exploration major, has evinced keen interest to participate in the equity of a captive power project in Tamil Nadu.

- ONGC Ltd and PGS Ocean Bottom Seismic, a Norwegian company, have signed a Rs.180-crore contract for a three-dimensional ocean bottom cable technique seismic survey over the Mumbai High field. - PGS of Norway has been awarded the world's largest 3-D seismic survey contract for Bombay High. This is the first time that Oil & Natural Gas Corporation (ONGC) has awarded a turnkey contract, consisting of acquisition, processing and interpretation of seismic data.

- India's largest oil exploration and production (I&P) company, Oil and Natural Gas (ONGC) is all set to emerge as a major blue chip in the next millennium. - Oil and Natural Gas Corporation (ONGC) has signed a pact with Chinese National Oil Co for Exploration and Development to undertake operations in other countries.

1998

- The proposed joint venture between the Oil and Natural Gas Corporation (ONGC) and Lubrizol India may come a cropper.

- Oil and Natural Gas Corporation (ONGC) board will shortly consider incorporating a new

subsidiary for taking on contract jobs at home and abroad.

- Public sector giants ONGC and Gas Authority of India Ltd (GAIL) have locked horns over the setting up of an LPG recovery plant at Gandhar in Gujarat.

- The Oil and Natural Gas Commission has signed an agreement with the two government-sponsored gas units of Bangladesh to start exploratory drilling in Brahmanbaria and Habigonj region of the neighbouring country. After signing of agreement, the ONGC has recently set up its office in Dhaka.

- The state-owned petroleum giant Oil and Natural Gas Corporation will soon initiate a large-scale organisation restructuring programme as part of efforts to make it more competitive in a liberalised global regime.

- Oil and Natural Gas Corporation (ONGC) is holding negotiations with Arco, an American company, for setting up a 50:50 joint venture for coal bed methane (CBM) exploration projects.

- Oil and Natural Gas Corporation (ONGC) has launched a major oil hunt for the first time in the deep waters off the Krishna-Godavari (KG) basin last week when its refurbished offshore rig, Sagar Vijay, commenced drilling operations at 530 metres depth in a structure off the Amalapuram coast in south Andhra Pradesh.

- State-owned Oil and Natural Gas Corporation (ONGC) is planning to set up a state-of-the-art integrated radio communication system which would interconnect the company's different offices within the country.

1999

- ONGC and the Russian oil giant Lukoil entered into an agreement last week for opening up increased opportunities for joint oil exploration and exploitation in Central Asian countries.

- Oil and Natural Gas Corporation Limited has mooted the idea of setting up a separate subsidiary in information technology to develop operational and distribution expertise for the oil and petroleum industry.

- The Oil and Natural Gas Corporation (ONGC) has set up an expert committee to inquire into the first ever fire at a gas producing well.

- The Oil and Natural Gas Corporation Ltd (ONGC) will set up two major oil spill response centres in Mumbai and Kakinada along the western and eastern coasts, to combat emergency situations arising out of oil spills.

- In 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 to pave the way for long-term strategic alliance amongst themselves, both for the domestic and overseas business opportunities, in the energy value chain. 

2000

- Oil and Natural Gas Corporation and Oil India Ltd have signed their annual memoranda of understanding (MoUs) with the government for performance targets for 2000-01.

- Oil and Natural Gas Corporation Ltd. has entered into refinance agreement with the Bank of America for a $180 million syndicated loan to help ONGC repay its earlier costlier Citibank loan.

- The Company and Indian Oil Corporation Ltd. have proposed a strategic partnership by way of setting-up an independent corporate entity for exploration and production of hydrocarbons and their refining and marketing abroad.

- The Oil and Natural Gas Corporation is exploring the option of introducing a voluntary retirement scheme for select groups which work in highly specialised activities like drilling.

- Coal India Ltd and Oil and Natural Gas Corporation have joined hands to set up a joint venture project for undertaking commercial exploitation of coal bed methane, which occurs in high rank coals in the coalfields of Raniganj west, Jharia ast, West Bokaro, Ramgarh and eastern part of north Karanpura.

- Indian Petrochemicals Corporation Ltd (IPCL) has entered into a long-term agreemen with Oil and Natural Gas Corporation (ONGC) Ltd. for the supply of nearly 5,70,000 tonnes per year of feedstock for its 4,00,000 tonne ethylene cracker at Nagothane.

- The Company is all set to sign a Memorandum of Understanding with Venezuela oil major Petroles, for joint efforts in upstream activities.

- The Company while gearing up for deregulation of the hydrocarbons sector in 2002, will set up a separate marketing division in the month of September.

- ONGC and IOC two companies have formed aj oint venture, ONGIO, a name derived by mrging the initial letters of their respective acronyms, which will explore opportunities in training and consultancy in the oil Industry.

- The Company to set up a separate information technology company which will cater specifically to the oil and gas industry.

- NTPC and ONGC are forming a new joint venture company for setting up gas residue-based power projects.

- The Company would set up a 360-MW gas-based power project at Hazira in a joint venture with the National Thermal Power Corporation.

- ONGC Videsh Ltd. will sign an MoU with Indonesian Oil Company Pertamina.

- The Company and Reliance have joined hands with Algeria's Sonatrach to secure an oil field in Iraq for production of crude.

- The Oil and Natural Gas Corporation (ONGC) and BSES have signed a memorandum of understanding (MoU) wherein natural gas from an oil well - 75 km north of Bombay High - will be suppled exclusively to BSES.

2001

- Oil & Natural Gas Corporation Videsh Ltd., the overseas subsidiary of ONGC, will sign a 1.7 billion dollar deal with Russian national oil company Rosneft for taking 20 per cent stake in Russian Far East oil and gas field Sakhalin-I, in Mosocow on February 10.

- Oil and Natural Gas Corporation has signed a memorandum of understanding with the Ministry of Petroleum and Natural Gas for the production of 25.2 million tonnes of crude oil during 2001-2002.

- The Company has tied up with Indian Oil Corporation for undertaking oil exploration for eight deep-water blocks under the National Exploration Licensing Policy (Nelp) II. The tie up aims at reducing the financial risks involved in deep-water exploration.

- ONGC has formulated an exploration strategy for the next 20 years, with the twin objectives of doubling the reserve base to 12 billion tonnes oil (BtOE) equivalent besides raising the global recovery factor to 40 per cent or more.

- The ONGC, principally an oil and gas exploration and production company, has entered the refining sector too with the commissioning of the Tatipaka mini-refinery in East Godavari district on September 3rd

- : As part of its mega restructuring exercise, the Oil and Natural Gas Corporation has introduced

a voluntary retirement scheme for trimming its 40,000 strong work force all over the country.

- The Oil and Natural Gas Corporation (ONGC) plans to invest Rs 5,000 crore in the oil and gas exploration business in order to double its reserve base to 12 billion tonnes oil equivalent by 2020, according to the ONGC Chairman and Managing Director, Mr Subir Raha.

- The Consortium of Cairn Energy, Oil and Natural Gas Corporation and Tata Petrodyne will invest about $300 million in development of Lakshmi oil and gas field in Gulf of Khambat by 2008.

- OIL AND Natural Gas Corporation (ONGC) won a two-decade-old litigation in the Supreme Court last week when it directed some 10 industries in Gujarat to pay ONGC interest at the contracted rates on arrears retained by them during the long period. With this order, ONGC is expected to get around Rs 500 crore.

-The company entered into strategic alliance with Indian Oil Corporation and set-up ONGIO Internatinal Pvt Ltd. on 8th June 2001 a 50:50 joint venture company for Training, Consultancy & Services in Hydrocarbon Sector.

2002

- The board of directors of Oil and Natural Gas Corporation (ONGC) has approved the acquisition of the Aditya Birla group's stake in the joint venture Mangalore Refinery and Petrochemicals Ltd (MRPL).

- ONGC scraps 350 MW naphtha based Hazira power project

- ONGC decides to offer equity for international oil majors with which the company would enter into agreement for deep-water exploration.

- Enters into contract with Gas Authority of India Ltd. (GAIL) for supply agreements which include both customer end and supply end contracts.

- Acquires 20% in gas project of Daewoo International in South Korea

- Retains top most profit making Public Sector Company (PSU) status

- Company dethrones Hindustan Lever Ltd. (HLL) to become India's largest company by market capitalisation

- Signs MoU with Bharat Heavy Electricals Ltd (BHEL) for supply, upgradation and

refurbishment of oilfield equipment required for on-shore and off-shore applications

- Signs price pact with Indian Petrochemicals Corporation Ltd (IPCL) for Ethane and Propane removing the one of the last hurdles for privatisation of IPCL

- Gets membeship of Federation of Indian Chamber of Commerce & Industry (FICCI)

- Government authorises the company to retail petrol & diesel

- Discovers 363 million metric tonnes of crude oil in Gujarat

- Govt invites the company to join Haldia Petrochemicals Ltd. (HPL)

- Hindustan Petroleum Corporation Ltd. (HPCL) ties-up with ONGC to purchase LPG

- ONGC strikes deal with refiners to sell crude at international prices

- ONGC ranked no.1 among ET 500

- Bags 13 oil blocks under New Exploration Licensing Policy (NELP)

- Hits oil and gas in deep-water exploratory block off the Andhra Pradesh coast

- ONGC Videsh ties up with Talisman Energy Inc of Canada for the purchase of 25 per cent interest in the Greater Nile project , in Sudan with an oil reserve of 150 million metric tonnes

2003

- Strikes huge oil and gas reserves west of its Bassein field in the Mumbai offshore region

- Finds oil and gas in four locations in offshore Mumbai, Assam and Krishna Godavari basin

- Discovers major oil and gas leads at five new locations ( Laiplingoan in the upper Assam basin and Kavitam in the KG basin - onland, B-22-5 in Mumbai offshore and GS-KW in the KG basin - offshore)

- Ties up with IOC for supply of crude oil

- Acquires 37.38% Equity Stake in Mangalore Refinery & Petrochemicals Ltd. (MRPL)

- ONGC Videsh Ltd. (OVL) purchases 25% stake of Canadian Talisman Energy in Sudan

oilfield for $771 million

- Strikes oil and gas in Rajasthan

- Transfers the operations and maintenance (O&M) of its three multi-support vessels (MSVs), Samudra Suraksha, Samudra Sevak and Samudra Prabha, to Shipping Corporation of India (SCI)

- Retains top spot in market cap in ET 500

- Gets the first consignment of its equity oil from the Greater Nile oil project in Sudan, where ONGC Videsh Limited (OVL) has taken a 25 per cent stake

- Ships Sudan oil to India, the first ever shipment of Indian crude from a foreign field

- Company ranked in FT Global 500 list

- Enters into an MOU with Bharat Petroleum Corporation Ltd (BPCL) for supply of crude oil for a period of two years from April 01, 2002 to March 31, 2004

- Hikes stake in Mangalore Refinery & Petrochemicals Ltd. (MRPL) to 71.49% from 51.25%

- Ends its two-year training and consultancy services joint venture with oil refining giant Indian Oil Corporation

- Kicks off deep-water exploration programme

- ONGC Videsh inks sales pact with Austria-based OMV Aktiengesellschaft for acquisition of the OMV Aktiengesellschaft's shares in two onshore exploration blocks in Sudan for a consideration of $115 million

- Signs agreement with HPCL to supply crude oil

-Cabinet asks ONGC to share part of subsidy onus on cooking fuels

-Smt R D Barkataki, Dr K R S Murthy, Shri J Jayaraman and Jawahar Vadivelu ceased to be Navratna directors of the corporation. Shri U Sundararajan, Rajesh V Shah and M Chitale have been appointed as Navratna directors.

-Signed Memorandum of Understanding (MOU) for supply of crude oil with HPCL..

-Oil and Natural Gas Corporation has agreed to be an equity partner of Gujarat Industrial

Development Corporation for setting up the Dahej Special Economic Zone in south Gujarat. As per the MoU, ONGC will pick up 26 per cent equity and will be responsible for the infrastructure development of the SEZ.

- Oil and Natural Gas Corporation (ONGC) and Bharat Petroleum Corporation (BPCL) signed an agreement to cooperate with each other through sharing of their core strengths for exploration and production, and downstream oil refining and marketing.

-signed MoU with mangalore refinery and petrochemicals ltd for supplying crude oil

-Commenced drilling in its 46th well in the Bengal basin. Named Gobindapur 1,

-The company entered into a Transaction & Strategic alliance with Cairn Energy Plc.

-The company joins with China Petro to buy oil equity.

-Unveils $1 billion deep water drilling campaign at Gulf of Kutch

-The Cabinet Committee on Economic Affairs on December 18th approved award of five coal bed methane blocks for extracting gas from coal seams to state-run Oil and Natural Gas Corporation.

-ONGC - Disinvestment of 10% Equity by Government of India

-BSNL signs MoU with ONGC

2004

-Market capitalisation crosses Rs 100,000 crore

- The board has approved a proposal to invest Rs 900 crore in a five-million-tonne C2-C3 extraction plan

-Finance Minister allows ONGC to buy Mangalore Refinery and Petrochemicals stake

-ONGC decides to offer 32 marginal fields to private operators

-ONGC permitted to set up methane plant at Dahej

-Concept Comm bags biggest IPO offer in ONGC

-Service Contracts awarded by ONGC for six marginal Oil Fields

-ONGC launches the Deep-Water Campaign name "Sagar Sammridhi"

-ONGC awards Rs 1,006 cr contract for Larsen & Toubro

-Govt. of India divests 10% stake in the company by selling 14.26 crore shares at a cut-off price of Rs 750 per share

-awards Rs 160 cr three year order to supply oil exploration equipment for BHEL

-ONGC strikes oil in Bassein offshore field

- ONGC, the upstream petro-biggie, has decided to float a special economic zone (SEZ) at Dahej, Gujarat in joint collaboration with the Gujarat Industrial Development Corporation (GIDC).

-The government on March 23 issued Rs 348.6 crore worth of fresh oil bonds to public sector oil companies ONGC and OIL. The bonds carry a coupon rate of 5% for a five-year tenor.

-ONGC Group sales breaches USD 10 Billion mark

-The Oil and Natural Gas Corporation (ONGC) Ltd has discovered gas reserves at Khedabari village in Sonamura sub-division of West Tripura district with a production capacity of over two lakh cubic metre per day.

-Oil and Natural Gas Corporation (ONGC) has tied up with the Indian Institute of Foreign Trade (IIFT) for launching a special MBA course in international business for its middle-level executives.

-Oil and Natural Gas Corporation (ONGC) enters into separate memorandum of understandings (MoUs) with four leading service providers for value-based commercial alliance for efficiency in different sectors of exploration and production (E&P) activities

-ONGC MoU with Schlumberger for value based commercial alliance

-Oil and Natural Gas Corporation (ONGC) chairman and managing director Subir Raha has been conferred with the V Krishnamurthy award for excellence for 2004

-State-run exploration firm Oil and Natural Gas Corp (ONGC) has signed an agreement with Infrastructure Leasing and Financial Services (IL&FS) for setting up a gas-based power project

in the North-East

-PTC India Ltd (formerly known as Power Trading Corporation of India Ltd) has entered into an agreement with Oil and Natural Gas Commission for trading of the entire surplus from ONGC's existing generating units and new power projects to be set up all over the country

-ONGC wins polymers extraction project

-OVL acquires 55 pc holdings in Australian oil block

-ONGC in ally with KSPL, IL&FS to develop Kakinada SEZ

-NLCL ties up with ONGC

2005

-ONGC clinches oil block deal in Nigeria

-ONGC forays into retail market with launch of first outlet at Mangalore

-Six ONGC geoscientists bag national mineral award

-ONGC ties up with Hindujas for implementing LNG terminals

- Oil and Natural Gas Corporation Ltd (ONGC) bags trophy from Asiamoney for `best deals of the year 2004'.

- Oil and Natural Gas Corporation (ONGC) enters into a MoU with Indian Airlines to take two aircraft on lease to meet its operational requirements.

-Oil and Natural Gas Corporation and Mittal Investments Sarl, one of the investment arms of the L.N. Mittal group, entered into two MoU to form two overseas joint ventures companies ONGC Mittal Energy Ltd (OMEL) and ONGC Mittal Energy Services Ltd (OMESL)

-GMDC, ONGC forge alliance for coal gassification project.

-ONGC signs MoU with IDE Infotech Ltd.

-ONGC join hands with Rajasthan for Dholpur power project.

-ONGC signs an agreement with CIL for coal mine gasification.

-ONGC Finance Director gets award

2006

-ONGC ties up with Singareni

-ONGC signs MoU with Maruti

-ONGC inks deal with Halliburton to enhance oil production

-Dutch IT co secures contract from ONGC

-ONGC joins hand with MUL for vehicle lease.

-ONGC internal audit bags ISO 9001 rating.

2007

-Oil and Natural Gas Corporation (ONGC) has signed a memorandum of understanding with Tatarska Geophysica Technologies (TGT) of Russia for increasing production of matured fields.

-ONGC, Eni signs agreement to swap exploration blocks.

-Oil & Natural Gas Corporation Ltd (ONGC) has signed a Memorandum of Understanding (MoU) with the Ministry of Petroleum & Natural Gas, agreeing on a set of Performance Parameters and targets for the financial year 2007-08.

- ONGC has forayed into a memorandum of understanding (MoU) with global oil major, BP, to collaborate in exploration and production (E&P) business in India and abroad.

2008 - ONGC starts drilling in Cauvery deepwater block.

- ONGC bags SCOPE Gold Trophy for strong Corporate Governance scorecard.

- ONGC and Rocksource sign Agreement for Partnership in Deepwater Block.

2009

- Oil and Natural Gas Corp (ONGC) reported a gas discovery in the west Tripura block in the Assam and Assam Arakan basin.

- ONGC achieves all-time record in oil, gas production.

- ONGC awards contract worth Rs 753 crore to UAE Company.

Major events 

The following table illustrates the major events in the history of our Company.  

1993 Our Company was incorporated as =Oil and Natural Gas Corporation Limited‘.  

1994 The undertakings of the Commission were transferred to our Company.  

1995 The Equity Shares were listed on the BSE and the NSE.  

1997 Our Company was granted the =Navratna‘ status. 

2003 Our Company acquired Mangalore Refinery and Petrochemicals Limited, our Subsidiary. 

2004 Our Promoter disinvested 142,179,154 of its equity shares in the Company through a public offer. 

2010 Our Company was granted the =Maharatna‘ status. 

Certifications, awards and recognitions 

Our Company has received certifications, awards and recognitions for achieving and maintaining high standards in various aspects of our business. Set forth below is a description of some of the certifications, awards and recognitions received by our Company in the last three fiscal years.  

Global

2009 Awarded the Golden Peacock Award for occupational health and safety.  

2010 Ranked 1st among oil and gas exploration and production companies in the world and 18th among leading global energy majors as per =Platts 250 Global Energy Company‘ list. 

2010 Awarded 1st runners up for =Best Presented Accounts and Corporate Governance Disclosure Awards 2009‘ by South Asian Federation of Accountants, an apex body of South Asian Association for Regional Cooperation. 

2010 Selected as the =Natural Gas STAR Program‘s International Partner of the Year‘ by the United States Environmental Protection Agency. 

2010 Awarded the Golden Peacock Award for climate security. 

National 2010 Awarded the gold trophy for =SCOPE Meritorious Award for =Research & Development, Technology Development & Innovation ‘ for 2008-09. 2010 Awarded the 2nd =PSU Awards‘ for highest market capitalization by = Dalal Street Investment Journal PSU‘ awards. 

2010 Awarded the =BML Munjal Award‘ for excellence in learning and development in public sector category.

2011 Awarded the "Leading Oil and Gas Corporate of the Year" and "Exploration and Production Company of the Year" in the Petroleum Federation of India‘s Annual Oil and Gas Industry Awards 2010

PROGRESS RIGHT FROM ITS INITIATION

· The first was the discovery of oil in Cambay in September 1958. This was followed by discovery of oil in a well at Hazat, 16 kilometers from Ankleshwar, on 14 May 1960. These two discoveries exploded the myth about the non-existence of oil in the Cambay Basin and happily brought Gujarat forward on the country's oil map.· This was followed by discovery of oil near Rudrasagar in Assam in December 1960 much to the anguish of the doubting Thomas, who had predicted gloomy prospects.· However, the most significant of the achievements was the discovery of Bombay High on 19th February 1974, which, in reality, was the turning point in ONGC's history.· The rig Sagar Samrat (self-propelled jack-up), was purchased at a cost of Rs. 12.7 crore from Mitsubishi. At that time no one would have dreamt that Sagar Samrat would create a niche for itself in the offshore oil world. This old workhorse has already completed drilling of 125 wells in a life span of 27 years, a feat unmatched by any other rig in the world, and is still going strong. Sagar Samrat had been instrumental in discovering 14 major structures, and adding more than three billion tonnes of oil and gas reserves.· 4.0 BMT O + OEG should hopefully be established in deep A target of doubling the reserves in the nest 20 years has been set. About 2.0 BMT of oil + oil equivalent of gas (O + OEG) comes from the onshore and frontier basins. offshore waters. These additional 6.0 BMT of O + OEG both onshore and offshore would undoubtedly require higher risks, state-of-art new technology and much bigger investments. .· ONGC decided to clear, by 31st March 2003, the entire backlog in exploratory drilling. And that is the crux. The more exploratory drilling, the greater likelihood of finding more oil.· The long-pending organizational transformation project (OTP) was given a final shape after it

had taken many twists and turns. This was not an easy task since the result of the pilot projects had to be objectively re-assessed. Now rechristened Corporate Rejuvenation Campaign (CRC), it was formally launched on 20th August 2001. What is CRC ? It divides ONGC into numerous Assets, Basins and Services, each headed by a senior executive, and which in turn became virtual corporates. The Multi-Disciplinary Team (MDT) concept is now reflected in the matrix relationship of CRC structure wherein the cadre specialization is blended with team orientation.· But the most important achievement of ONGC was the accretion by 191 MMT of recoverable reserves during 200-02.· Of the 115 producing fields, one field alone (Mumbai High) contributes 40 percent of production. Another 14 fields add 35% to the production. The remaining 100 fields contribute only 25% of the entire oil/ gas production. ONGC achieved the distinction of becoming zero debt corporate by pre-paying the bulk of its foreign loans.· In short, the 46th year in the chequered history of ONGC has been one of great changes and achievements. And much of the credit should go to Raha and directors on the ONGC Board, besides of course, to the hundreds and thousands of executives working all over the country.ONGC MISION VISION AND OBJECTIVEONGC VISIONNowadays, having a vision is a must in the management of organisations. In complex, changing environments, organisations must regularly shape and reshape their own understanding of what to aim at and how to get there. A vision is „an image of the future‟. An image that is not yet real but that we can envisage in our minds; an image of what the organisation should/could look like, partly analytical, partly emotional. An image that combines elements of the present situation with elements that can be envisaged. This definition is rather abstract. That is the problem and at the same time the challenge of creating a vision.The vision of an organisation comprises the following elements: mission / core business core activities / product and clients working approach and core values long-term goalLet us see what is behind these words and look at some concrete examples as. It is also important to know what questions to ask to clarify the different elements.The vision of ONGC is-“To be a world class oil and natural gas Company integrated in energy business dominant Indian leadership and global presence.” ONGC MISSIONEarlier ONGC’s Mission was “to stimulate, continue and accelerate exploration efforts to develop and maximize the contribution of hydrocarbons to the economy of the country”. But with the Liberalization and Globalization in the economy, it changed its mission. Now it is:

WORLD CLASS COMPANY-•Dedicated to excellence by leverage competitive advantages in R&D and technology with involved people.•Imbibe high standards of business ethics and organizational values•Abiding commitment to health, safety and environment to enrich quality of community life.•Foster a culture of trust, openness and mutual concern to make working a stimulating and challenging experience for our people.•Strive for customer delight through quality products and services

INTEGRATED IN ENERY BUSINESS-•Focus on domestic and international oil and gas exploration and production business opportunities.•Provide value linkages in other sector of energy business.•Create growth opportunities and maximize shareholder value.

DOMINANT INDIAN LEADERSHIP-•Retain dominant position in leadership in Indian petroleum sector and enhance India’s energy availability.  ONGC OBJECTIVES•Optimize production of hydrocarbons. •Self-reliance in technology.•Promoting indigenous effort in oil and gas related equipment, material and services•Assist in conservation of hydrocarbons, more efficient use of energy and development of alternate sources of energy.•Develop scientifically oriented and technically competent human resource through motivation and training.

CHAPTER 3HR DEPARTMENT IN ONGCDepartments are the entities organizations form to organize people, reporting relationships, and work in a way that best supports the accomplishment of the organization's goals. Departments are usually organized by functions such as human resources, marketing, administration, and sales.But, a department can be organized in any way that makes sense for the customer. Departments can also be organized by customer, by product, or by region of the world.The human resource department is involve in planning, organizing, directing and controlling of procurement,development, integration, maintenance of human resource management to end that individual, organizational and societal objectives to be accomplishedVISION-

To attain organizational excellence by developing and inspiring the truepotential of company’s human capital and providing opportunities for growth,well being and enrichmentMISSION-To create a value and knowledge based organization by inculcating aculture of learning, innovation and team working and aligning businesspriorities with aspiration of employees leading to a development of anempowered, responsive and competent human capital OBJECTIVESto develop and sustain core values.To develop business leaders for tomorrow.To provide job contentment through empowerment, accountability andresponsibility.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 families

Activities of Human Resources DepartmentManagement Function1.PlanningPlanning is the process of deciding the goal and formulation policiesand programme to achieve the goal. Planning involve forecasting andresearch. Forecasting implies scientific anticipation of futureenvironment. Human Resource Management involves forecastingneed for human resource predicting trends in labour market, Wages,Union Demand etc.2.OrganizingOrganizing is the process of allocating task among the member of thegroup, establishing authority and responsibility relation among themand integrating their activities toward the common objective.3.DirectingDirecting is the process of motivating, activating, leading andsupervising people. Directing include all those activities by which amanagers influence the action of subordinates. Directing is the heart of management’s process because it is concern with initiating action4-Controling-Controlling implies checking, verifying and regulating to ensure thatevery thing occurs in conformity with plan adopted and instructionissued. Such as monitoring help to minimize the gap between desireresults and actual performance. Controlling the management of humanresource involve auditing training programmes, analyzing labour turnover, directing morale survey etcOperative Function1.Procurement FunctionThis is Concern with securing and employing the right kind and proper number of people requires accomplishing the organization objective. It consisting following activities:Job analysisJob Description and Job Specification)EngineeringCivil Engineering

Construction and MaintenanceDrillingElectricalElectronic and TelecommunicationInstrumentationMarine ServiceProductionTransport and Autob)Geo – ScienceChemistryComputer ProgrammingGeologyGeophysicsMathematicsPaleontologyReservoir Shot hole DrillingMap and DrawingPhotographySurveyingc)Economics and StatisticsFinance and AccountOfficial LeverageIndustrial RelationInterpretation and TranslationLegalLibraryMarketingMedicalPara MedicalPersonnel and AdministrationPublic Relation or Corporate communicationSecurityMaterial managementHuman Resource PlanningRecruitmentSelectionPlacement

2.DevelopmentHuman Resource Development is the process of improving theknowledge, skills, aptitude and value of employee so that they canperform the present and future job more effectively. This functioncompromise the following activites:

Performance Potential AppraisalTrainingExecutive DevelopmentCareer Planning & Development

3.Compensation FunctionIt refers to providing equitable and fair remuneration to employee for their contribution to the attainment of organization objective. It consistsof following activities:Job EvaluationWages and Salary AdministrationBonus4.Integration-Integration involve motivating employee through various financial andnon- financial incentive, providing job satisfaction, handling employeegrievances through formal grievances procedure, collective bargaining,worker participating in management, conflict resolution, Developingsound human relation, employee counseling, improving quality of worklife etc.5.Maintenance function-It is concern with protecting and promoting the physical and mentalhealth of employee. For this purpose several type of fringe benefitsuch as housing, medical aid, educational facilities, etc. Provided toemployee. Social security measures like provided fund, pension,gratuity maternity benefit injury allowance, group insurance etc. arealso arrange helps, safe guard welfare measures are designed topreserve the human resource of the organization

The Human Resource Department deals with management of people within the organisation. There are a number of responsibilities that come with this title. First of all, the Department is responsible for hiring members of staff; this will involve attracting employees, keeping them in their positions and ensuring that they perform to expectation. Besides, the Human Resource Department also clarifies and sets day to day goals for the organisation. It is responsible for organisation of people in the entire Company and plans for future ventures and objectives involving people in the Company.

The human aspect of resources within an organisation contributes approximately eighty percent of the organisation’s value. This implies that if people are not managed properly, the organisation faces a serious chance of falling apart. The Human Resource Department’s main objective is to bring out the best in their employees and thus contribute to the success of the Company.These roles come with certain positive and negative aspects. However, the negative aspects can be minimised by improvements to their roles and functions.

Functions of the Human Resource Department

Recruitment of Employees

This is one of the most fundamental roles of the HR department. This is because this function ensures that the Company under consideration selects the most skilful and competent person from a sea of applicants at that time. This function involves evaluation of ability and competency of potential employees in relation to what the Company needs. This role falls under the Staffing role of management. If this function is performed well, then the organisation will increase value consequently being on the right pathway to achieve its organisational and departmental goals and objectives.Effective recruitment can be done through a number of ways. First of all the Company can conduct educational and psychological measurements. This task will involve assessment of abilities, skills and character evaluation of applicants. Through psychometric evaluation, the Company can ensure that employees have the right attitude necessary to fit into the organisation. Another method Companies use to recruit members of staff is through interviews. Here, the Human Resource Department can ask applicants questions that evaluate their decision making abilities and how they would deal with certain situations if presented with them. The Department can also employ the use of written interviews where applicants answer questions addressing key issues in the organisation. Through these channels, the Department contributes towards organisational performance.  RECRUITMENT in ONGCIn accordance with the modification to the Recruitment & Promotion Regulations, 1980, directrecruitment is resorted to at the following induction levels:Scales of Pay Age Limit(i) Rs.4300/- (Bottom of Class IV) Below 27 years(ii) Rs.4700/-(Bottom of Class III) Below 30 years(iii) Rs.7000/- (Top of Class III) Below 32 years(iv) Rs.12000-17500/-(E-1 level) Below 30 years(v) Rs.17500-22300/- (E-4 level) Below 44 yearsRecruitment for all posts upto the level of posts in the pay scale of Rs.7000/- is de-centralised.

PROBATIONEvery person appointed to a post either by direct recruitment or by departmental promotion, shall be on probation for a period of one year.- Provided that the Appointing Authority may extend the period of probation by anyperiod, which shall not normally exceed one year, (i.e. no employee shall be kept on probation for a total period exceeding two years, in any post).During the period of probation an employee may be required to pass a written examination or a proficiency test or a trade test within a specified number of chances, and on suchconditions, as may be specified in this behalf.A decision on the question whether an employee should be deemed to have completed the

period of probation satisfactorily or who fails to pass the written examination, proficiencytest or trade test within the specified period or chances or within such extended period orchances, as may be allowed to him, or whose progress is not satisfactory during the period of probation, may be taken by the competent authority and the employee concerned may,without any notice or any reason being assigned be:-- Discharged from the service of the Corporation if he is a direct recruit; or - Reverted to a lower post, if he is a promotee, or was appointed to the higher post as a departmental candidate against direct recruitmentImprovement of Compensation Packages

One of the major functions of the HR department is to motivate employees. This can be done through rewards especially for those who have done well. The HR department needs to evaluate performance of employees and those who have exceeded expectations should be compensated for their actions. The rewarding employees for good performance is the number one incentive for keeping up this trend. These compensation packages can come in the following ways;

Holiday offer End of the year bonus Equities Awards Salary incrementFlexible working hoursStraight forward Promotion Schemes and Career DevelopmentsIf the HR department includes these incentives, then it will ensure that employees are satisfied with the Company. It will also contribute towards good staff retention rates. This is especially crucial in increasing stability within the organisation. It also makes employees identify with the firm and instils a sense of loyalty

Training and DevelopmentDefinition of Training & Development:“Training is the sort term process utilizing a systematic and organizesprocedure by which non managerial personnel learn technological knowledge andskills for definite purpose.”“Development is long term education process utilizing a systematic anorganize procedure by which managerial personnel learn conceptual and theoreticalknowledge for general purpose.OBJECTIVES OF TRAINING AND DEVELOPMENT

1. To develop entrepreneurship and expertise par excellence through trainingand retraining.2. To prepare executives to meet the strategic business goals in the fastchanging environment.3. To create a learning environment in order to achieve a competitive edgethrough leveraging human resource.

4. To develop training tools and techniques to facilitate effective learning5. To organize interactive workshops in upstream industry areas.6. To strive for continuous improvement in all aspects of E&P activities through training in the emerging technologies.7. To inculcate quality consciousness8. To promote IT as an instruments of organizational transformation.9. To cultivate creative and innovative thinking.10. Reducing gap between current and expected level of performance through systematic enrichment of knowledge, skills and attitudes.11. Developing multi-craft skills.12. Preparing executives for career advancement.13. To impart training to all employees to motivate them towards actualization of their potential.ONGC Training Institutes::Training & Development in the company is imparted through the following Institutes:-Institute of Management Development (IMD), Dehra Dun.Regional Training Institute, Makarpura Road, VadodaraRegional Training Institute, ChennaiRegional Training Institute, Panvel, Mumbai.Regional Training Institute, Sibsagar, Assam.Regional Training Institute, Rajahmundry.Setting up of the Institute of Management Development is a visible initiative of thecompany towards development of the Human Resource to achieve the goals andobjectives of the organization.

The institute is providing training to the different levels of executives in order to fill  the gap between the practicing technology and State of the arttechnology. The technological needs and improvisation, the present and futureobjectives and strategies as well as individual aspirations for achieving professionaland managerial excellence are identified and a fruitful extensive interaction is madewith the R & D Institutes and operating regions of the organization. Also services of the widely experienced retired personnel are utilized to execute the in-house trainingprograms.In its endeavor, Institute of Management Development is playing the pivotalrole in refining the micro and macro met culture of the organization with specificreference to Human Resource Development.Function of Training InstitutesIn view of the above, IMD along with its five Regional Training Institutes (Sibs agar,Chennai, Vadodara, Mumbai) performs the following training activities.To survey existing work force to identify present and future trainingrequirements for professional and managerial excellence.To prepare career linked training plans for officers keeping in view the jobrotations in ONGCTo prepare the annual training calendar for the company in consultation withthe Assets/Basins/Chief of Services, Institute Heads and TopManagement/Directors etc. with respect to the organizational requirementsand individual perceptions.

To prepare common training syllabi for programs to be conducted by IMD inassociation with RTIs and R & D Institutes.To conduct induction training and training for officers risen from ranks.To conduct orientation programs for Geo-Scientists and Engineers inemerging technologies in association with R & D Institutes, through which thetechnology transfer is taking place.To develop SC/ST and Women personnel through special programs.To conduct training related to technology transfer including initial screening of such requirements.To coordinate training abroad

 Induction TrainingThe fresh incumbents of the organization are exposed to wide gamut of technology of petroleum industry through synergic approach covering multi-disciplinary theoretical and practical aspects with emphasis upon on the job training. Thus, a newly recruited executive undergoes an intensive classroom training interspersed with field exposure to effectively specialize him in the Organization. The specialized modules of training on the advanced hydrocarbon exploration and exploitation technology are inculcated in the newly recruited officer before he is put on the job training for hands-on-experience.Management TrainingOne of the most important aspects of executive development is "Man-Management"; suitable programs are being organized with special emphasis on appreciation of roles played by various disciplines in the company. Environment and public enterprises, principles of Management, Corporate planning, Project Management, Management of Change, Management of Technology, Man-Management, Team building and conflict Resolution, Management of R & D, Personal Effectiveness including Oral and Written communication, Presentation skills, listening skills, Managing Stress etc. are wider areas covered through various training modules. For the personnel already engaged in different disciplines, a career linked training plan is drawn to impart advance training in management. The executives of E-4 and above levels are exposed to General Management Training at reputed Institutions in India including ASCI & IIM’s to achieve the perfection in development. Thus the training system in ONGC ensures overall development of the officers. Promotion and TransferDefinition of Transfer“Transfer is a horizontal movement of employee from one job to another in the same organization without any significant change in status and pay.”Objective of Transferi.To enable pla nned movement of employees from one job/station to another to meet operational and/or administrative requirement of the organization fromtime to time.ii.To enable employees acquire multi-dimensional knowledge and skills for self-development, to shoulder higher supervisory and managerial responsibilitiesthrough a structured job rotation profile and exposure

to diversifiedgeographic and operational environments.iii.To enable employees develop their own career path by opting for specific jobplacement/change in job assignment and outstation placements so as to havean effective linkage with their career development.iv.To provide flexibility in pursuing specialist tasks

Process Generating transfer requirementSub process Generating Transfer requirement Optimum manpower requirement

for N.E. to be worked out discipline/level wise by HRG each year and transfer to NE to be limited to actual requirement and not on replacement.(ii) Generating the list of candidates in the transfer Zone and bio-data of all executives, discipline-wise, Sector/Asset-wise-in order of Sect oral stay seniority

Responsibility Office of chief HRD (Assistance to be provided by respective establishments)

Completion date August 15(ii)Process Obtaining feedbackSub process Putting the generated list on the net and circulation to the key

executives. Obtaining the feedback from the key executives/individualsregarding requests/preference/constraints.

Responsibility Office of chief HRDCompletion date September 15(iii)Process Developing draft transfer listSub process Office of chief HRD to work with respective establishments at head

quartersResponsibility Office of chief HRDCompletion date October 15(iv)Process Obtaining in puts from chief executivesSub process Draft transfer list to be circulated to key executives .

The input of the Key Executives is to be considered before the transfer list is finalized

Responsibility Office of chief HRDCompletion date November 15(v) Process Developing final transfer listSub process Finalising the transfer list after approval of competent authority.Responsibility Office of chief HRDCompletion date December 15(vi) Process Issue of transfer ordersResponsibility Concerned establishments at headquartersCompletion date 2nd weak of January

Training Techniques

1. LECTURE METHOD-It is one of the oldest methods of training. This method is used to create understanding of a topic or to influence behavior, attitudes through lecture. A lecture can be in printed or oral form. Lecture is telling someone about something. Lecture is given to enhance the knowledge of listener or to give him the theoretical aspect of a topic. Training is basically incomplete without lecture. When the trainer begins the training session by telling the aim, goal, agenda, processes, or methods that will be used in training that means the trainer is using the lecture method. It is difficult to imagine training without lecture format. There are some variations in Lecture method. The variation here means that some forms of lectures are interactive while some are not. Main Features of Lecture Method

some of the main features of lecture method are:Inability to identify and correct misunderstandings

Less expensive

Can be reached large number of people at once

Knowledge building exercise

Less effective because lectures require long periods of trainee inactivity

2. DEMONSTRATION TRAINING METHODThis method is a visual display of how something works or how to do something. As an example, trainer shows the trainees how to perform or how to do the tasks of the job. In order to be more effective, demonstration method should be should be accompanied by the discussion or lecture method. To carry out an effective demonstration, a trainer first prepares the lesson plan by breaking the task to be performed into smaller modules, easily learned parts. Then, the trainer sequentially organizes those modules and prepares an explanation for why that part is required. While performing the demonstration, trainer: 3. COMPUTER BASED TRAINING (CBT)With the worldwide expansion of companies and changing technologies, the demands for knowledge and skilled employees have increased more than ever, which in turn, is putting pressure on HR department to provide training at lower costs. Many organizations are now implementing CBT as an alternative to classroom based training to accomplish those goals.

According to a recent survey, about 75% of the organizations are providing training to employees through Intranet or Internet. Internet is not the method of training, but has become the technique of delivering training. The growth of electronic technology has created alternative training delivery systems. CBT does not require face to face interaction with a human trainer. This method is so varied in its applications that it is difficult to describe in concise terms

4. ROLE PLAY TRAINING METHODRole play is a simulation in which each participant is given a role to play. Trainees are given with some information related to description of the role, concerns, objectives, responsibilities, emotions, etc. Then, a general description of the situation, and the problem that each one of them faces, is given. For instance, situation could be strike in factory, managing conflict, two parties in conflict, scheduling vacation days, etc. Once the participants read their role descriptions, they act out their roles by interacting with one another.

Role Plays helps inDeveloping interpersonal skills and communication skills Conflict resolutionGroup decision makingDeveloping insight into one’s own behavior and its impact on others

6. MENTORING METHOD

Mentoring is an ongoing relationship that is developed between a senior and junior employee. Mentoring provides guidance and clear understanding of how the organization goes to achieve its vision and mission to the junior employee.The meetings are not as structured and regular than in coaching. Executive mentoring is generally done by someone inside the company. The executive can learn a lot from mentoring. By dealing with diverse mentee’s, the executive is given the chance to grow professionally by developing management skills and learning how to work with people with diverse background, culture, and language and personality types.Some key points on MentoringMentoring focus on attitude developmentConducted for management-level employees It is one-to-one interactionIt helps in identifying weaknesses and focus on the area that needs improvement

7. INDUCTION TRAINING

This is training that an employee will receive when they first join an organization or begin a new role. This type of training is designed to provide the employee with the essential skills needed to perform their job. Induction training can also include an introduction to the company ethos, values and culture so that the employee is aware of the behaviors expected of them. 8. ON THE JOB TRAININGAs the name suggests, on the job training, is training provided during the regular performance of duties. This can take a variety of forms including:The employee being guided through a task or process by a colleague or supervisor, so that the employee knows how to perform the task and to what standard. Shadowing, spending time with an expert so that the employee can observe how the expert performs their daily duties. Observations, the employee is observed whilst they perform their duties. At the end of the observation, the observer will provide the employee with feedback on their performance. Coaching, the employee will learn new skills (not knowledge) and have the opportunity to practice the skills with the coach before using the skills in the workplace. An effective coach will review the employee’s performance to ensure that the employee uses the newly learnt skills until they become habit. Mentoring, the employee is partnered with an experienced employee so that they can discuss performance. The experienced person is known as the mentor and the employee they are partnered with we will call the mentoree. The mentoree will discuss their performance and problems with the mentor. 9. OFF THE JOB TRAININGThis is training provided away from the employee’s usual work environment and the employee will stop their usual duties/work during the training. Off the job training may be in the same

building or off site. This training may be provided by trainers working for the same employer as the employees being trained or an outside company hired by the employer.

Negative Aspects of Functions and Roles of the Human Resource Department

There are a number of problems that arise as the department goes about its activities

Problems in RecruitmentThe department may sometimes be unable to adequately coordinate and incorporate all the employees needed in the Company’s operations. In the year 2004, the organisation was found to be wanting in its human resource department’s functions. The Company was recruiting a large proportion of its employees; 40% from the country. This means that the organisation was draining personnel from those needy places and using them for themselves.Such a practice showed that the HR department had exercised bad judgement in its staffing function. Instead, it could have used these foreign employees as temporary measure and put in place a strategy to train local employees such that it could stop depending on those other countries for supply of employees.

Problems in RemunerationIn the process of trying to motivate members of staff to perform better, the Human Resource may make deals that eventually cause problems. This Company has an employee Compensation policy that requires that one should be rewarded for the time they have served the Company.The Company offers an end of year bonus, basic salary and grant on stock shares as an incentive for some of its employees . At the time of crisis in the economy of the whole country the company also faced problem as it had to pay the incentives to it’s employees in any condition.

Strategies to Improve Human Resource Department’s   Value to the OrganisationTraining and InternshipsIt is not necessarily a guarantee that a candidate who did well in the recruitment exercise is the best in performing an organisation’s functions. New employees need orientation into the Company’s functions and can also improve some inefficiency that these new employees may have in relation to their skills. This is the purpose of placing them on internships.Training is also essential for members of staff who have been working for the organisation for a long time. This is especially so in the wake of technological advancements, legal changes and changes in service delivery. It is important for an Organisation to keep up with industry trends otherwise it faces the danger of becoming obsolete; especially in the background of increasing competition.

Training need not be restricted to improvement of skills; it can also involve improvement of attitudes. This is normally characterised by attendance of workshops and other forms of talks. Training also increases motivation of employees and gives them that extra boost of energy needed to get them through tough times in their jobs. All the above tasks are placed under the Department of Human Resource because it is the one that will asses when training is needed, who needs the training, where and by whom. This aspect is a sure to improve value of the HR Department in the organisation.

Making Better Use of Time The Human Resource is conferred with the responsibility of ensuring that all members of staff perform to their best ability. It could improve this area by facilitating better use of time in all departments within the organisation. Time is one of the most crucial yet intangible assets of the Company. The proper use of this resource could maximise production and achievement of organisational goals. The Department can do this by planning activities to be carried out in the organisation. It can make schedules for the various activities that have to be done in the organisation and thus facilitate better flow of information. In addition to this, the Company can also ensure that all members of staff are held accountable for not performing a certain task. This is especially in regard to maintenance of the schedules. In so doing, human the Human Resource Department will be ensuring that employees do not simply report to work and that the time spent at work is directly proportional to output.

Improving Organisational CultureThe Human Resource Department can try to improve organisational culture through a three step procedure.The first step of the process is observation.  In this step HR finds out what makes ups or what the company’s culture is like. HR should also be very intense on the organisational needs. Here, HR should realise that personal fulfilment works better and therefore should try to ensure that the change is relevant to every staff member. In this stage, HR should try to explain to all staff members or stakeholder the advantage of transforming the culture in the organisation. This should be made clear so that all can see the advantages at the individual level and not simply at the organizational level. Then HR should try to eliminate all inhibitions in staff member’s minds. It is possible that some may claim that they tried one or two strategies before and it did not succeed.  This are what are called ‘cries of despair’ and HR should try its best to explain to staff members the need of changing the culture of the organisation.The next step is the analysis of various aspects. Here, there is collection of data needed in making certain that culture changes. This stage involves checking out the success features or the

factors that can facilitate its success. There should be calibration of data collected. Staff members should be made to understand that there are no perfect situations for implementation of changes. The analysis should involve assessing whether the information is sensible or not. Whether data gathered will be helpful or not and if it is too little or too much. Staff members should be requested for data that will help change the culture.Of course when trying to bring in change HR Department should have perceived benefits, a deadline for execution and also the realised gains in relation to the change in culture. In this step, there should be reality checks which should be done often. There should also be continuous integration. Through this scheme HR Department should be able to change the culture in the organisation and add value to it.

SENIORITY*Seniority of the employees in E-0 level and above (centralised cadres) is maintained at Headquarters, Dehradun.Seniority of decentralised categories of the employees is maintained Region wise.PRINCIPLES FOR DETERMINING SENIORITYThe following principles are observed for determining seniority:-(A) Direct Recruits:(i) Inter-se seniority of candidates selected on any one occasion is determined in order of merit in which they are placed by the Selection Committee.(ii) Where persons recruited initially on probation are confirmed subsequently in anorder different from the order of merit indicated at the time of their selection,seniority follows the order of confirmation and not the original order of merit.In cases, where the period of probation of an employee is extended on account of a vigilance or disciplinary case pending against him and the employee issubsequently exonerated, his probation is regularised from the date on which itwould have otherwise been regularised but for the pendency of the vigilance ordisciplinary case.(iii) A candidate who is offered an appointment in the Company against directrecruitment has to join within 45 days from the date of receipt of offer, in order toretain his seniority. When a candidate at the time of applying or interviewindicates, that he would need more time and this fact is duly noted when placinghim on the selection list, he may be allowed to join within a maximum period of100 days (without losing his seniority) from the date of issue of the order.If, however, the candidate is an employee of the Corporation and cannot join within the aforesaid period of 45 days on account of exigencies of work, then theAppointing Authority may if it is satisfied that the candidate is unable to join dutyin the exigencies of the Company’s work, extend the period (within which thecandidate would be permitted to join without losing his seniority) by a maximum of 105 days (inclusive of 45 days allowed initially).(iv) Such Government employees as are selected in direct competition through open

advertisement but are appointed on foreign service terms are deemed to be directrecruits for the purpose of determination of their seniority. Seniority of suchpersons, once determined, is not affected by their retirement from their parent office or their continuance in the Corporation’s employment beyond such retirement.(v) Government pensioners and retrenched employees, who are re-employed in theCompany after their retirement or retrenchment, shall also be treated as directrecruits for the purpose of determination of seniority.(B) Departmental Promotees:(i) Inter-In cases where the period of probation of an employee is extended onaccount of a vigilance or disciplinary case pending against him and the employee is subsequently exonerated, his probation is regularised from the date on which itwould have otherwise been regularised but for the pendency of the vigilance ordisciplinary case.(iii) Where promotions to a grade are made, either from more than one grade, or fromthe same grade divided into different cadres on Regional basis, eligible persons areplaced in separate lists in order of their inter-se-seniority in the respective grades or cadres thereafter:(a) If promotion is to be made on the basis of merit alone, the DepartmentalPromotion Committee prepares a “Select List “ on the basis of merit. Promotion is made from this “Select List” in order in which the names arefinally arranged ; and(b) If promotion is to be made on the basis of Seniority –cum-fitness, i.e. seniority subject to the rejection of unfit, the Departmental Promotion Committee placesthe candidates from the various lists into one “Consolidated Seniority List”based on the total length of service rendered in that grade or cadre and makesrecommendation for promotion on the basis of this “Consolidated List”. Theinter-se-seniority of the candidates in their respective lists in not disturbed in the “Consolidated List” .(C) Relative Seniority of Direct Recruits and Departmental Promotes:(i) When the vacancies on any one occasion are reserved for departmental promotionand direct recruitment, names of the promotees shall be released first and the direct recruits shall be released thereafter and appointments made subsequently. In casethe Departmental Promotion Committee panel is not available, the vacancies fordirect recruitment will not be filled on regular basis instead, officiating arrangements shall be made.(ii) Amongst the departmental promotees and direct recruits so appointed on any single occasion the departmental promotees shall be treated as senior enbloc to the directrecruits.(D) Seniority of decentralised categories :-(i) In the event of transfer of an employee belonging to decentralised category, fromone Region to the other in the interest of the Corporation, seniority of the employee is retained in his original Region, and the employee is considered for promotion, in

his turn, in his parent Region .(ii) When such an employee is due for promotion to the next higher post in his parentRegion, he is posted back to that Region. In case, on account of exigencies of work, it is not possible to post the employee back to the Parent Region, the employee ispermitted to take over the promoted post in the other Region with the approval ofcompetent authority.(iii) Where the Corporation decides that the employee concerned should go back to hisparent Region on promotion, and he refuses to do so, the promotion is not to begiven to him .(iv) In case, an employee belonging to a decentralised category is transferred on his own request from one Region to another , his name is struck off from the parent Region and he is placed at the bottom in the seniority list of the Region to which he istransferred.(v) The experience for the purpose of his eligibility for promotion is considered onlywith effect from the date he joins in the new Region.(E) Fixation of Seniority on absorption of employees from one cadre to another:(i) The Corporation is free to transfer employees from one cadre to anothertemporarily, on administrative grounds e.g. transfer of work, non-availability ofsuitable men, etc.(ii) Such employees retain their lien and seniority in the parent cadres and have no right for absorption in the cadres to which they are transferred temporarily.(iii) If, as a very special case, they are considered for absorption in the cadres to whichthey are temporarily transferred on their own request, their seniority counts only from the date of their transfer to the cadre at the time of their absorption. In case, such a transfer is effected in the interest of the work of the Corporation, the transferee carries his original seniority in the cadre from which he is transferred tothe new cadre

HR POLICIES OF ONGCHuman resource policies are systems of codified decisions, established by an organization, to support administrative personnel functions, performance management, employee relations and resource  plan Each company has a different set of circumstances, and so develops an individual set of human resource policies.HR policies provide an organization with a mechanism to manage risk by staying up to date with current trends in employment standards and legislation. The policies must be framed in a manner that the companies vision & the human resource helping the company to achieve it or work towards it are at all levels benefited and at the same time not deviated from their main objective.Human resource policies are the formal rules and guidelines that businesses put in place to hire, train, assess, and reward the members of their workforce. These policies, when organized and disseminated in an easily used form, can serve to preempt many misunderstandings between employees and employers about their rights and obligations in the business place. It is tempting,

as a new small business owner, to focus on the concerns of the business at hand, and put off the task of writing up a human resource policy. All business analysts and employment lawyers will advise a new business owner to get a policy down on paper, even if it is a simple one drafted from a boilerplate model. Having policies written is important so that it is clear to all what the policies are and that they are applied consistently and fairly across the organization. Moreover, when issues concerning employee rights and company policies come before federal and state courts, it is standard practice to assume that the company's human resource policies, whether written or verbal, are a part of an employment contract between the employee and the company. Without clearly written policies, the company is at a disadvantage.Small businesses—and especially business startups—can not afford to fritter away valuable time and resources on drawn-out policy disputes or potentially expensive lawsuits. Having a human resource policy in place from the start can help to avoid this situation. The business owner who takes the time to establish sound, comprehensive human resource policies will be far better equipped to succeed over the long run than the business owner who deals with each policy decision as it erupts. The latter ad hoc style is much more likely to produce inconsistent, uninformed, and legally questionable decisions that may cripple an otherwise prosperous business. For as many small business consultants state, human resource policies that are inconsistently applied or based on faulty or incomplete data will almost inevitably result in declines in worker morale, deterioration in employee loyalty, and increased vulnerability to legal penalties. To help ensure that personnel management policies are applied fairly, business owners and consultants alike recommend that small business enterprises produce and maintain a written record of its HR policies and of instances in which those policies came into play.SUBJECTS COVERED BY COMPANY HR POLICIESSmall business owners should make sure that they address the following basic human resource issues when putting together their personnel policies:Equal Employment Opportunity policiesEmployee classificationsWorkdays, paydays, and pay advancesOvertime compensationMeal periods and break periodsPayroll deductionsVacation policiesHolidaysSick days and personal leave (for bereavement, jury duty, voting, etc.)Performance evaluations and salary increasesPerformance improvementTermination policiesTemplates that may be used to create a first human resource policy document are available from many sources. Two such sources that are reputable and offer information of a full range of employment issues are the National Human Resource Association and the Society for Human Resource Managers. Each maintains a Web site with information on the services it provides and

pointers to other reputable service providers. Those Web sites are, respectively, http://www.humanresources.org and http://www.shrm.org/.A broad spectrum of issues can be addressed in human resource policies, depending on the nature of the business in question. Examples of such issues include promotion policies; medical/dental benefits provided to employees; use of company equipment/resources (access to Internet, personal use of fax machines and telephones, etc.); continuity of policies; sexual harassment; substance abuse and/or drug testing; smoking; flextime and telecommuting policies; pension, profit-sharing, and retirement plans; reimbursement of employee expenses (for traveling expenses and other expenses associated with conducting company business); child or elder care; educational assistance; grievance procedures; employee privacy; dress codes; parking; mail and shipping; and sponsorship of recreational activities.ADVANTAGES OF FORMAL HUMAN RESOURCE POLICIESSmall business owners who have prepared and updated good personnel management policies have cited several important ways in which they contribute to the success of business enterprises. Many observers have pointed out that even the best policies will falter if the business owners or managers who are charged with administering those policies are careless or incompetent in doing so. But for those businesses that are able to administer their HR policies in an intelligent and consistent manner, benefits can accrue in several areas:Communication with employees. A well written and thoughtfully presented human resource policy manual can establish the tone that a new business person wishes to maintain within his or her business. Such a policy also serves to disseminating information about what employees may expect from the company as well as what the employer expects from the employees regarding work performance and behavior while on the job.Communication with managers and supervisors. Formal policies can be helpful to managers and other supervisory personnel faced with hiring, promotion, and reward decisions concerning people who work under them.Time Savings. Prudent and comprehensive human resource management policies can save companies significant amounts of management time that can then be spent on other business activities, such as new product development, competitive analysis, marketing campaigns, etc.Curbing litigation. Members of the legal and business communities agree that organizations can do a lot to cut off legal threats from disgruntled current or ex-employees simply by creating—and applying—a fair and comprehensive set of personnel policies.MAKING CHANGES TO EXISTING HR POLICIESCompanies typically have to make revisions to established HR policies on a regular basis, as the company grows and as the regulatory and business environments in which it operates evolve. When confronted with the challenge of updating HR policies, however, it is important for small businesses to proceed cautiously. For example, if an employee asks the owner of a small business if he might telecommute from his home one day a week, the owner may view the request as a reasonable, relatively innocuous one. But even minor variations in personnel policy can have repercussions that extend far beyond the initially visible parameters of the request. If the employee is granted permission to work from home one day a week, will other employees

ask for the same benefit? Does the employee expect the business to foot the bill for any aspect of the telecommuting endeavor—purchase of computer, modem, etc.? Do customers or vendors rely on the employee (or employees) to be in the office five days a week? Do other employees need that worker to be in the office to answer questions? Is the nature of the employee's workload such that he can take meaningful work home? Can you implement the telecommuting variation on a probationary basis?Small business owners need to recognize that changes in HR policy have the potential to impact, in one way or another, every person in the company, including the owner. Proposed changes should be examined carefully and in consultation with others in the organization who may recognize potential pitfalls that other managers, or the business owner herself, may have failed to detect. Once a change in policy is made, it should be disseminated widely and effectively so that everyone within the business is working from the same human resource policy at all times

PurposesHR policies allow an organization to be clear with employees on:The nature of the organizationWhat they should expect from the organizationWhat the organization expects of themHow policies and procedures workWhat is acceptable and unacceptable behaviorThe consequences of unacceptable behaviorThe establishment of policies can help an organization demonstrate, both internally and externally, that it meets requirements for diversity, ethics and training as well as its commitments in relation to regulation and corporate governance. For example, in order to dismiss an employee in accordance with employment law requirements, amongst other considerations, it will normally be necessary to meet provisions within employment contracts and collective bargaining agreements. The establishment of an HR Policy which sets out obligations, standards of behavior and document displinary procedures, is now the standard approach to meeting these obligations.HR policies can also be very effective at supporting and building the desired organizational culture. For example recruitment and retention policies might outline the way the organization values a flexible workforce, compensation policies might support this by offering a 48/52 pay option where employees can take an extra four weeks holidays per year and receive less pay across the year

HR Vision, Mission & ObjectivesHR Vision"To build and nurture a world class Human capital for leadership in energy business".HR Mission"To adopt and continuously innovate best-in-class HR practices to support businessleaders through engaged, empowered and enthused employees".

Measuring HR PerformanceHR Parameters have been incorporated in the MOU by ONGC since 1994-95, tosystematically and scientifically evaluate effectiveness of HR Systems, whichenables and facilitates time bound initiatives.HR Parameters of MoU for 2009-2010 Mentoring and coachingHR AuditEngagement SurveyContinuous professional education credit course for finance executives of ONGC.

A Motivated TeamHR 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 hasin-built systems to recognise & reward them periodically. Motivation plays animportant role in HR Development. In order to keep its employees motivated thecompany has incorporated schemes such asReward and Recognition SchemeGrievance Handling Scheme And Suggestion SchemeIncentive Schemes to Enhance ProductivityProductivity Honorarium SchemeJob IncentiveQuarterly IncentiveReserve Establishment HonorariumRoll out of Succession Planning Model for identified key positionsGroup Incentives for cohesive team working, with a view to enhance productivity

Training & DevelopmentAn integral part of ONGC’ss employee-centred policies is it’s thrust on their knowledge upgradation and development. ONGC Academy, previously known asInstitute 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 thehuman resource of ONGC. It also focuses on marketing its HRD expertise in thefield of Exploration & Production of Hydrocarbons. ONGC¶s Sports PromotionBoard, the Apex body, has a Comprehensive Sports Policy through which tophonours 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 centers. Exclusiveworkshops and interactions/brainstorming sessions are organized to facilitateInvolvement of employees in this project.Participative Culture Policies and policy makers at ONGC have always had the interests of the large andmulti-disciplined workforce at heart and have been aware of the nuances andsignificance of cordial Industrial Relations. By enabling workers to participate inmanagement, they are provided with an Informative, Consultative, Associative andAdministrative forum for interactive participation and for fostering an innovativeculture.In fact, ONGC has been one of the few organizations where this method has beenimplemented. It has had a positive impact on the overall operations since it has ledto enhanced efficiency and productivity and reduced wastages and costs.A Model Corporate CitizenRespect and dignity are the key values that underline the relationship ONGC haswith its human assets. Conscious about its responsibility to society ONGC has evolved guidelines for Socio-Economic Development programmes in areas aroundits operations all over the country.Health Care and Family WelfareEducationCommunity DevelopmentPromotion of Sports and CultureCalamity Relief Development of Infrastructural FacilitiesDevelopment of the Socially & Economically Weaker Sections of Society Benefit and WelfareSportsAround 150 sportspersons including 95 international level performers are on therolls of ONGC representing your Company in 15 different games.ONGC hosted the ONGC Nehru Cup International Invitational Tournamentduring 2007-08.Chess Queen Koneru Humpy was conferred with Padmashri and Badminton aceChetan Anand received the Arjuna Award.Reigning World Billiards Champion Pankaj Advani retained his title after an 'allONGC Final' in which Dhruv Sitwala was the Runner-upArjuna Awardee Virender Sehwag became the first Indian and third cricketer toscore two triple Test centuries.Your Company won the Petroleum Minister's PSPB Trophy for Overall BestPerformance in 2007-08 for the fifth year in succession

Corporate Social ResponsibilityONGC is spearheading the United Nations Global Compact - World's biggestcorporate citizenship initiative to bring Industry, UN bodies, NGOs, Civil societiesand corporate on the same platform.During the year, your Company has undertaken various CSR projects at its work centres and corporate level.Women EmpowermentWomen employees constitute about 5% of ONGC's workforce. Various programmes for empowerment and development, including programme on gender sensitization are organized regularlyCHAPTER 4PERFORMANCE APPRAISAL IN ONGCPERFORMANCE APPRAISAL-A performance appraisal (PA) or performance evaluation is a systematic and periodic process that assesses an individual employee’s job performance and productivity in relation to certain pre-established criteria and organizational objectives. Other aspects of individual employees are considered as well, such as organizational citizenship behavior, accomplishments, potential for future improvement, strengths and weaknesses, etc. To collect PA data, there are three main methods: objective production, personnel, and judgmental evaluation. Judgmental evaluations are the most commonly used with a large variety of evaluation methods. A PA is typically conducted annually. The interview could function as “providing feedback to employees, counseling and developing employees, and conveying and discussing compensation, job status, or disciplinary decisions”. PA is often included in performance management systems. Performance management systems are employed “to manage and align" all of an organization's resources in order to achieve highest possible performance. “How performance is managed in an organization determines to a large extent the success or failure of the organization. Therefore, improving PA for everyone should be among the highest priorities of contemporary” organizations.Some applications of PA are performance improvement, promotions, termination, test validation, and more. While there are many potential benefits of PA, there are also some potential drawbacks. For example, PA can help facilitate management-employee communication; however, PA may result in legal issues if not executed appropriately as many employees tend to be unsatisfied with the PA processPerformance appraisal system forms an integral part of employee development process. This system captures the expectations of employees where employee also plays an active role in setting his goal for the succeeding appraisal period. This helps in bringing out best of employees and reduces the attrition rate. The most important purpose of appraisal is to improve future performance, both at individual level and at organizational level. Appraisal is an evaluation of worth, quality or merit.In the organization context, performance appraisal is a systematic evaluation of personnel by superiors or others familiar with their performance. Performance appraisal is also described as

merit rating in which one individual is ranked as better or worse in comparison to others. The basic purpose in this merit rating is to ascertain an employee’s potential for taking higher management roles or promotion keeping job requirements in view.HISTORY-The history of performance appraisal is quite brief. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. But this was not proved very helpful and for the same may be said about almost everything in the field of modern human resources management.

As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates from the time of the Second World War - not more than 60 years ago. Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of things historical, it might well lay claim to being the world's second oldest profession!

There is, says Dulewicz (1989), a basic human tendency to make judgments about those one is working with, as well as about oneself." Appraisal, it seems, is both inevitable and universal. In the Absence of a carefully structured system of appraisal, people will tend to judge the work performance of others, including subordinates, naturally, informally and arbitrarily. The human inclination to judge can create serious motivational, ethical and legal problems in the workplace. Without a structured appraisal system, there is little chance of ensuring that the judgments made will be lawful, fair, defensible and accurate. Performance appraisal systems began as simple methods of income justification. That is, appraisal was used to decide whether or not the salary or wage of an individual employee was justified. The process was firmly linked to material outcomes. If an employee's performance was found to be less than ideal, a cut in pay would follow. On the other hand, if their performance was better than the supervisor expected, a pay rise was in order.Little consideration was given to developmental possibilities of appraisal. It was felt that a cut in pay, or a rise, should provide the only required impetus for an employee to either improve or continue to perform well.

Sometimes this basic system succeeded in getting the results that were intended; but more often than not, it failed.For example, early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance.These observations were confirmed in empirical studies. Pay rates were important, yes; but they were not the only element that had an impact on employee performance. It was found that other issues, such as morale and self-esteem, could also have a major influence.As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and development

was gradually recognized. The general model of performance appraisal, as it is known today, began from that timeDEFINITION“It is the systematic evaluation on of the individual with respect to his or her performance on the job and his or her potential for development.”-FORMAL DEFINITION

“Performance appraisal is a formal, structured system of measuring and evaluating an employee’s job related behaviors and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee, organization, and society all benefit.”-COMPREHENSIVE DEFINITION

The overall objective of performance appraisal is to improve the efficiency of an enterprise by attempting to mobilize the best possible efforts from individuals employed in it. Such appraisals achieve four objectives including salary reviews, development and training aspects of employees, planning for job rotation and promotions -CUMMINGS

“Performance Appraisal is a systematic, periodic and an impartial rating of an employee’s excellence in matters pertaining to his present job and his potential for a better job” -FLIPPO

“Performance appraisal is the systematic description of an employee’s job relevant strengths and weaknesses” -WAYNE CASIOCharacteristics of Performance AppraisalThe main characteristics of performance appraisal are as follows.Performance appraisal is a process consisting of a series of steps.It is the systematic examination of an employee’s strengths and weaknesses in terms of the job.Performance appraisal is a scientific or objective study.It is an ongoing or continuous process wherein the evaluations are arranged periodically according to a definite plan.The main purpose of performance appraisal is to secure information necessary for making objective and decisions on employees.

Advantages of Performance AppraisalIt provides information for making and enforcing decisions about promotions, pay increases, lay off transfers.It serves to guide employee development.It puts a psychological pressure on people to improve performance on the job.

It serves to maintain fair relationships in groups.It makes executives more observant of their subordinates.It serves as a means for evaluating the effectiveness of devices used for the selection and classification of workers.Wage increase may be justified.Deficiencies and shortcoming may be removed.Employee may also introspect himself in the light of performance.

Factors Affecting Performance Appraisal Systems

Performance appraisal programs are affected by some factors. Therefore for implementing good appraisal systems the following are necessary.

It should be easily understandable. The forms, which are more difficult to read and understand, are not effective performance appraisal systems.

The appraisal programs must have support of all line people who administer it. If line people think it is too theoretical, too ambitious, and too unrealistic or that it has been foisted on them by ivory – tower staff consultants who have no comprehension of the demands on the time of the line operator.

The appraisal system should fit the organizational operations and structure the form constructed and the factors framed should be suitable for the organizational culture and structure.

The appraisal system should be valid and reliable.

The performance appraisal programs should have built in incentives.

The appraisal form should be periodically evaluated to ensure that it meets its purpose

NEED & challenges of PAS

need of performance appraisal Employees would like to know from a performance appraisal system:

Concrete and tangible particulars about their work; andAssessment of their performance

This would include how they did; could do better in future; could obtain a larger share of rewards; and could achieve their life goals through their position. Therefore an employee would desire that the appraisal system should aim at: Their personal development;Their work satisfaction; andTheir involvement in the organization.From the point of view of the organization, performance appraisal serves the purpose of: Providing information about human resources and their development.Measuring the efficiency with which human resources are being used and improved. Providing compensation packages to employees.To review the performance of the employees over a given period of time.To judge the gap between the actual and the desired performance.To help the management in exercising organizational control.To diagnose the training and development needs of the future.Provide information to assist in the HR decisions like promotions, transfers etc.Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development.To reduce the grievances of the employees.Helps to strengthen the relationship and communication between superior subordinates and management employeesMaintaining organizational control.Performance appraisal should also aim at the mutual goals of the employees and the organization. This is essential because employees can develop only when the organization’s interests are fulfilled. The organization’s main resources are its employees, and their interest cannot be neglected. Mutual goals simultaneously provide for growth and development of the organization as well as of the human resources. They increase harmony and enhance effectiveness of human resources in the organization

CHALLENGES OF PERFORMANCE APPRAISALAn organization comes across various problems and challenges Of Performance Appraisal in order to make a performance appraisal system effective and successful.The main Performance Appraisal challenges involved in the performance appraisal process are:Determining the evaluation criteria-Identification of the appraisal criteria is one of the biggest problems faced by the top management. The performance data to be considered for evaluation should be carefully

selected. For the purpose of evaluation, the criteria selected should be in quantifiable or measurable terms

Create a rating instrumentThe purpose of the Performance appraisal process is to judge the performance of the employees rather than the employee. The focus

Of the system should be on the development of the employees of the organization.Lack of CompetenceTop management should choose the raters or the evaluators carefully. They should have the required expertise and the knowledge to decide the criteria accurately. They should have the experience and the necessary training to carry out the appraisal process objectively. Errors in rating and evaluationMany errors based on the personal bias like stereotyping, halo effect (i.e. one trait influencing the evaluator’s rating for all other traits) etc. may creep in the appraisal process. Therefore the rater should exercise objectivity and fairness in evaluating and rating the performance of the employees.

ResistanceThe appraisal process may face resistance from the employees and the trade unions for the fear of negative ratings. Therefore, the employees should be communicated and clearly explained the purpose as well the process of appraisal. The standards should be clearly communicated and every employee should be made aware that what exactly is expected from him/her.

 In order to make a performance appraisal system effective and successful, an organization comes across various challenges and problems. The main challenges involved in the performance appraisal process are: Determining the evaluation criteriaIdentification of the appraisal criteria is one of the biggest problems faced by the top management. The performance data to be considered for evaluation should be carefully selected. For the purpose of evaluation, the criteria selected should be in quantifiable or measurable terms. Create a rating instrument the purpose of the Performance appraisal process is to judge the performance of the employees rather than the employee. The focus of the system should be on the development of the employees of the organization.Lack of competence Top management should choose the raters or the evaluators carefully. They should have the required expertise and the knowledge to decide the criteria accurately. They

should have the experience and the necessary training to carry out the appraisal process objectively. Errors in rating and evaluation Many errors based on the personal bias like stereotyping, halo effect (i.e. one trait influencing the evaluator’s rating for all other traits) etc. may creep in the appraisal process. Therefore the rater should exercise objectivity and fairness in evaluating and rating the performance of the employees Resistance The appraisal process may face resistance from the employees and the trade unions for the fear of negative ratings. Therefore, the employees should be communicated and clearly explained the purpose as well the process of appraisal. The standards should be clearly communicated and every employee should be made aware that what exactly is expected from him/her.PERFORMANCE APPRAISAL PROCESS

Performance appraisal can be undertaken either on informal basis or on formal basis.In comparatively smaller organizations, appraisal either based on traits or a combination of both is done informally through the observation of concerned employees. In larger organizations, appraisal has to be more systematic and formal as it reveals various type of information which can be used for variety of purpose.

Defining objective of appraisal The first basic step in effective and systematic appraisal system is to define the objective of the appraisal itself. Appraisal is used for different purposes ranging from motivating the appraisees to controlling their behavior. Ex: - Rewarding providing appraisal such as salary revision or promotion differs from appraisal for training and development.

Defining Appraisal Norms

When we evaluate anything in terms of good or bad , always have some norms in our mind against which we say whether the things is good or bad. In the same way, appraisal is done in the context of certain norms and standards.Ex:-Reliance communication evaluates performance norms for its various managers quarterly in a year to make these more meaningful.

Designing Appraisal ProgrammeIn designing performance appraisal programme ,there are several issues which require attention, the types of personnel to be appraised types of personnel to be act as appraisers ,types appraiser methodology and timing of appraisal. The methodology is to be used in appraisal – whether through structured forms and questionnaires or personal interview of appraisee or a combination of both. The last issues in designing of appraisal program are the determination of time period and timing of appraisal.

Implementing Appraisal programmeIn implementing appraisal programme, the appraisal is conducted by the appraisers and they may be also conduct interview if it is provided in the appraisal system. The result of appraisal is communicated to HR department for follow up action which should be oriented towards the objectives of the appraisal.

Appraisal feedbackPerhaps appraisal feedback is the most crucial stage in appraisal process, especially when the superiors rating is not as per the expectations of the appraisee, even though such appraisal may be based on false premise. Many managers feel that employee often experience a profound face saving issues –they hear that their actual performance is not a good as they had perceived it to be. Upon hearing this, some become stoic and quite. Others cry and a few become overtly angry, hostile, and verbally abusive.

Post Appraisal action Performance appraisal is not an end in itself, but it is a means for improving long-term performance of personnel by taking appropriate action based on the information as revealed by appraisal. These action may be in the form of suitable rewards to outperformers, counselling and guiding underperformers and providing training to them for better performance and identifying and removing those organizational factors which hinder effective performance.

Objective of Performance AppraisalSalary IncreasePromotion Training and Development Feedback

Pressure on Employee

Benefits of Performance AppraisalFor the AppraiseeFor the ManagementFor the Organization

For the Appraisee:--

Better understanding of roleUnderstanding of own strengthsOpportunity to discuss and overcome problemsDiscuss aspirationsImproved working relations with superiors

For Management:--Identify performers, develop non- performersSuccession planningImproved communicationIdentify training needsGeneration of ideas for improvementIdentify potential and plan careers

For Organization:--Improved overall performanceCreation of culture of continuous improvementConveying message that people are valued

TOOLS USED IN PERFORMANCE APPRAISAL

TRADITIONAL METHOD

1. ESSAY APPRAISAL METHOD In the essay method approach, the appraiser prepares a written statement about the employee being appraised. The statement usually concentrates on describing specific strengths and weaknesses in job performance. It also suggests courses of action to remedy the identified problem areas. The statement may be written and edited by the appraiser alone, or it be composed in collaboration with the appraise. This traditional form of appraisal, also known as “Free Form method” involves a description of the performance of an employee by his superior. The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information.

In this approach, the appraiser prepares a written statement about the employee being appraised. The statement usually concentrates on describing specific strengths and weaknesses in job performance. It also suggests courses of action to remedy the identified problem areas. The statement may be written and edited by the appraiser alone, or it be composed in collaboration with the appraise.

 Advantages The essay method is far less structured and confining than the rating scale method. It permits the appraiser to examine almost any relevant issue or attribute of performance. This contrasts

PERFORMANCE APPRAISAL SYSTEM

TOOLS

Modern Tools

1. MANAGEMENT BY OBJECTIVE (MBO)

2.360 DEGREE APPRAISAL

3. BEHAVIORALLY ANCHORED RATING SCALE

4. HUMAN RESOURCE ACCOUNTING

5. ASSESSMENT CENTRES

6.PSYCHOLOGICAL APPRAISALS

Traditional Tools

1. ESSAY APPRAISAL METHOD

2. STRAIGHT RANKING METHOD

3. GRADING METHOD

4. CRITICAL INCIDENTS METHODS

5. CHECKLIST METHOD

6. FIELD REVIEW

7. GRAPHIC RATING SCALE

sharply with methods where the appraisal criteria are rigidly defined. Appraisers may place whatever degree of emphasis on issues or attributes that they feel appropriate. Thus the process is open-ended and very flexible. The appraiser is not locked into an appraisal system the limits expression or assumes that employee traits can be neatly dissected and scaled.Disadvantages Essay methods are time-consuming and difficult to administer. Appraisers often find the essay technique more demanding than methods such as rating scales.

The techniques greatest advantage - freedom of expression - is also its greatest handicap. The varying writing skills of appraisers can upset and distort the whole process. The process is subjective and, in consequence, it I s difficult to compare and contrast the results of individuals or to draw any broad conclusions about organizational needs.

2. STRAIGHT RANKING METHOD This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation.3. GRADING METHOD- under this system, the rater considers certain features and marks them accordingly to a scale. Certain categories of worth are first established and carefully defined. The selected features and may be analytical ability, cooperatives, dependability, self- expression, job knowledge, etc. they may be PAIRED A-outstanding, B- very good, C-good, D-fair, E-poor and –B- very poor. The actual performance of an employee is then compared with this grade definitions and he is allotted the grade which best describe his performance.4. CRITICAL INCIDENTS METHODSIn this method of Performance appraisal, the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. It includes both negative and positive points. The drawback of this method is that the supervisor has to note down the critical incidents and the employee behavior as and when they occur. This technique is appreciated by many employees and employers because it is natural and gives a supervisor actual factual incidents to discuss with the employee. In this method, supervisors are asked to keep a record on each employee and to record actual incidents of positive and negative behavior. Discussions between the supervisor and his subordinate deals with actual behavior and not on traits. Here the performance of the employee and not his personality gets criticized. The employee will specifically get to know how to perform differently if he wants to be rated higher the next time

5. CHECKLIST METHODUnder this method, the rater does not evaluate employee performance; he supplies reports about it and the final rating is done by the personnel department. It is a simple rating technique in which the supervisor is given a list of statements or words and asked to check statements representing the characteristics and the performance of the employees. There are three types of checklist methods-Simple checklistWeighted checklistForced choice method The rater is given a checklist of the descriptions of the behavior of the employees on job. The checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees.FIELD REVIEWUnder this method, a trainer employee from the personel department interviews line supervisors to evaluate their respective subordinates. The appraiser is fully equipied with definite test questions, usually memorized in advance, which he puts to the supervisor. The supervisor is required to give his opinion about the progress of his subordinates, the level of the performance of each subordinate, his weaknesses, good points outstanding ability, promo ability, and the possible plans of action in each cases. In this method, a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates. A major drawback of this method is that it is a very time consuming method. But this method helps to reduce the superiors’ personal bias.The field review is a group judgment technique and it tends to be fairer and more valid than individual ratings. Here a member of the personnel department meets with small groups of raters from each supervisory unit and goes over each employee’s ratings with them. In this way, each rater conceives uniform standards, arrives at group consensus and identify areas of disagreement between inter raters. 7. GRAPHIC RATING SCALEIn this method, an employee’s quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. The factors taken into consideration include both the personal characteristics and characteristics related to the on-the-job performance of the employees. For example a trait like Job Knowledge may be judged on the range of average, above average, outstanding or unsatisfactory. This method is both consistent and reliable. A person’s quality and quantity of work is assessed in a graphic scale. A variety of factors are taken into consideration including his/her personal traits like cooperation and reliability. Although the graphic scale is widely used, it is under frequent controversy. But the graphic scale is more economical to develop and it is not complicated. Therefore it is easily acceptable by raters8. FORCED DISTRIBUTIONTo eliminate the element of bias from the rater’s ratings, the evaluator is asked to distribute the

employees in some fixed categories of ratings like on a normal distribution curve. The rater chooses the appropriate fit for the categories on his own discretion. This technique is unbiased in comparison to other techniques. This also does not involve the intervention of a third party in appraisal. In this method, the raters are asked to choose from among groups of statements those that best fit the individual employee who is rated and those that least fit him/her. The statements are then weighed and scored the same way psychological tests are scored. This technique is limited to lower and middle management levels in companies as the levels of jobs are similar to make standard common forms with this group.

9. GROUP APPRAISAL- In this method an employee is appraised by a group of appraisers. This group consists of the immediate supervisor of the employee, to other supervisors who have close contact with employees work, manager or head of the department and consultants.The head of the department or manager may be the chairmen of the group activities.This group uses any one or multiple techniques discussed earlier. The immediate supervisor enlightens other member about the job character, demands and standards of performance. Then the group appraisers the performance of the employee, compares the actual performance with the standards of the performance, find out the deviations, discuss the reason therefore, suggest ways for improvement of performance.

b) Modern Method1. Management By Objectives (MBO) methodMBO is a process in which managers / employees set objectives for the employee, periodically evaluate the performance, and reward according to the result.MBO focuses attention on what must be accomplished (goals) rather than how it is to be accomplished (methods).2. 360-degree feedback: - 360-degree feedback is a full circle system of obtaining information from peers, subordinates, and internal and external customers, about the employee's performance. 360-degree assessment is based on the assessment of an individual's management styles, competencies and behavior by colleagues horizontally and vertically by involving his boss, peers and direct reports in the organization. 360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees’ performance comes from all the sources that come in contact with the employee on his job 360-degree feedback is sometimes referred to as multi-rater appraisals, multi-source feedback or 360 degree profiling. It is essentially a process, which enables a person to receive feedback from a number of people around them. The purpose of the feedback is usually varied from organization to organization. 360-degree feedback not only acts as tool for organizational development but also to help an individual determine areas they need to develop. The success of the appraisal depends on the transparency and clear objectives of its need and its clear cut intimation to the employees even at the bottom level of the organization

360-degree feedback :- Is a multi source assessment, which includes

* Self,* Supervisor* Internal Customers/peers/Staffs* External Customers Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his achievements, and judge his own performance. Superior’s appraisal forms the traditional part of the 360 degree appraisal where the employees’ responsibilities and actual performance is rated by the superior.

Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating abilities, superior’s ability to delegate the work, leadership qualities etc. Also known as internal customers, the correct feedback given by peers can help to find employees’ abilities to work in a team, co-operation and sensitivity towards others. Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree Performance appraisal have high employee involvement and also have the strongest impact on behavior and performance. It provides a "360-degree review" of the employees’ performance and is considered to be one of the most credible performance appraisal methods.

360 degree appraisal is also a powerful developmental tool because when conducted at regular intervals (say yearly) it helps to keep a track of the changes others’ perceptions about the

employees. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles. This technique is being effectively used across the globe for performance appraisals. Some of the organizations following it are Wipro, Infosys, and Reliance Industries etc.Uses of 360 Degree Feedback include: Performance Appraisal o Recognition of performance.o Providing feedback on individual performance.o Providing a basis for self-evaluation. Assessing Employee Development: o Diagnosing training and career development needs. o Providing a basis for promotion, dismissal, job enrichment, job enlargement, job transfer, probation, etc.o Monetary and other rewards. Organizational Climate Study: o Organizational environment improvement needso Changes in the Managerial approaches, leadership, etc Customer Satisfaction Study o Employees attitudinal changeo Customer satisfaction improvements   

Drawback of 360-degree feedback A detailed plan of action, which ensure the transparent and clear implementation of appraisal with employee accountability. Effective follow-up is the prime requirement of 360-degree feedback. Failure in follow-up may cause more harm than good. The 360-degree feedback is time consuming and cost consuming assessment process. Without having adequate resource to implement the process, it will end up nowhere and develop financial burden to organization.  The trust and confidence on the employees who undergo this feedback assessment process is a determinant factor in its outcome. Many consider this appraisal as tool for downsizing. The process involves a lot of paper work. There are high chances of subjectivity from the management and employee part in the feed back assessment. Many times the confidentiality of the appraisal cannot ensure from the HR department. Since the assessment is based on qualitative data many times it cannot ensure unambiguous, clear, specific, and observable and quantifiable formatsNeed of 360-degree feedback in organizations Business is towards surplus generation. Without surplus no organization can grow. Here the effort to grow the business and the surplus should come from employee part.  The performance of the employees is at work here matters in business development and organizational

development. The performance of the employees should then align with the strategic decisions that integrate the business goals in an increasingly competitive environment. It is the responsibility of the Human Resource Management to integrate the culture of the organization with all available resources to the optimum output. The 3600 Appraisal helps the HR Department to have better understanding of the competitive advantage and disadvantages of the current manpower resources and tune them towards performance excellence and productivity.3) Behaviourally anchored rating scale It was developed by Smith and Kendall to provide a better method of rating employees. It differs from "standard" rating scales in one central respect, in that it focuses on behaviors that are determined to be important for completing a job task or doing the job properly, rather than looking at more general employee characteristics (e.g. personality, vague work habits).So, rather than having a rating item that says: Answers phone promptly and courteously, a BARS approach may break down that task into behaviors: For example:Answers phone within five rings. Greets caller with "Hello, This is the Dinkle Company, how may I help you?" Notice how the BARS items are describe the important BEHAVIORS. Once those behaviors are identified for a particularly job, or employee, the items can be used to base a numerical or performance label on, let's say a five point, or seven point scale.It is an appraisal method that aims to combine the benefits of narratives, critical incident incidents, and quantified ratings by anchoring a quantified scale with specific narrative examples of good or poor performance. [1]BARS - Behaviorally Anchored Rating scales is a method that combines elements of the traditional rating scales and critical incidents methods. In order to construct BARS seven steps are followed as mentioned belowExamples of effective and ineffective behavior related to job are collected from people with knowledge of job. These behaviors are converted in to performance dimensions. A group of participants will be asked to reclassify the incidents. At this stage the incidents for which there is not 75% agreement are discarded as being too subjective. Then the above mentioned incidents are rated from one to nine on a scale. Finally about six to seven incidents for each performance dimensions- all meeting retranslation and standard deviation criteria will be used as BARS. This is by far the best method used for a performance appraisal methodThis is the official Performance Appraisal method of Midas.Human resource accountingHuman resource accounting (HRA) as an approach was originally defined as the process of identifying, measuring and communicating information about human resources in order to facilitate effective management within an organization. It is an extension of the accounting principles of matching costs and revenues and of organizing data to communicate relevant information in financial terms.The accounting of human resources can be seen as just as much a question of philosophy as of

technique. This is one of the reasons behind the variety of approaches and is further underlined by the broad range of purposes for which accounting human resources can be used, e.g. as an information tool for internal and/or external use (employees, customers, investors, etc.), and as a decision-making tool for human resource management (investments in human resources as well as personnel management in general).

LimitationsThe valuation method is based on false assumption that the dollar is stable. Since the assets cannot be sold there is no independent check of valuation. This method measures only the costs to the organization but ignores completely any measure of the value of the employee to the organization

ASSESSMENT CENTETRE

Assessment centre refers to a method to objectively observe and assess the people in action by experts or HR professionals with the help of various assessment tools and instruments. Assessment centers simulate the employee’s on-the-job environment and facilitate the assessment of their on-the-job performance. An assessment centre typically involves the use of methods like social/informal events, tests and exercises, assignments being given to a group of employees to assess their competencies and on-the-job behavior and potential to take higher responsibilities in the future. Generally, employees are given an assignment similar to the job they would be expected to perform if promoted. The trained evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated on job related characteristics.

An assessment centre for Performance appraisal of an employee typically includes:Social/Informal Events – An assessment centre has a group of participants and also a few assessors which gives a chance to the employees to socialize with a variety of people and also to share information and know more about the organization.Information Sessions – information sessions are also a part of the assessment centers. They provide information to the employees about the organization, their roles and responsibilities, the activities and the procedures etc.Assignments- assignments in assessment centers include various tests and exercises which are specially designed to assess the competencies and the potential of the employees. These include various interviews, psychometric tests, management games etc. all these assignments are focused at the target job.Features of all assessment centers:The final results is based on the pass/fail criteria All the activities are carried out to fill the targeted job.Each session lasts from 1 to 5 days.The results are based on the assessment of the assessors with less emphasis on self-

assessmentImmediate review or feedback is not provided to the employees. An organization’s human resources can be a vital competitive advantage and assessment centre helps in getting the right people in right places. The major competencies that are judged in assessment centers are interpersonal skills, intellectual capability, planning and organizing capabilities, motivation, career orientation etc. assessment centers are also an effective way to determine the training and development needs of the targeted employees Psychological appraisals- Psychological appraisals are conducted to assess the employee’s potential. Psychological appraisals consist of-In-depth interviewsPsychological tests.Consultations and discussions with employee.Discussion with superiors subordinates and peers. Reviews of other evaluations.Evaluation is conducted in the areas of-Employees intellectual abilitiesEmotional stabilityMotivational responsesReasoning and analytical abilitiesInterpretation and judgment skillsSociabilityAbility to foresee the futureCHALLENGES IN DIFFERENT METHODOILOGY OF PERFORMANCE APPRAISALDesigning an appraisal program poses several questions, which need answers. They are:

Whose performance is to be assessed?Who are the appraisers?What should be evaluated?When to appraise?What problems are encountered?How to solve the problems?What methods of appraisal are to be used?

Whose performance should be assessed?The answer is obvious – employees. When we say employees, it is individual or teams? Specifically, the appraisee may be defined as the individual, work group, division or organization.

Who are the appraisers?Appraisers can be immediate superiors, specialists from the human resource department,

subordinates, peers, committees, clients, self-appraisals or a combination thereof.What should be evaluated?One of the steps in designing an appraisal program is to determine the evaluation criteria. It is obvious that the criteria should be related to the job. The criteria for assessing performance can be:Quality & QuantityTimelinessCost EffectivenessNeed for supervisionInterpersonal impactInnovation & CreativityProblem AnalysisCustomer orientationMarket OrientationEntrepreneurial DriveNegotiation skills etc.

This is not an exhaustive list, but several other parameters too can be added depending on job requirements and organizational needs.

When to appraise/rate?The most frequent rating schedules are semi-annual and annual. New employees are rated more frequently than older ones. Some practices call for ratings:Annually as per company practiceAfter first 6 months of employmentUpon promotion or within 3 months after promotionWhen the job occupied has been reevaluated upwardUpon special request, as when the employee’s salary is below the average pay

What are the problems related to Performance Appraisal?An ideal Performance Appraisal is done when the evaluation is free from biases and idiosyncrasies of the evaluator. There are many factors of appraisal that lead to failure of the system:

Negative attitude towards Performance Appraisal:There is a large population of managers who are hostile or indifferent to the Performance Appraisal processes and/or do it badly if they do it at all.

Hostility from the appraiser: The appraiser reacts indifferently to the appraising system because he believes that it is a waste of time. At times they feel that the scheme has nothing to do with their own needs

and it exists to feed the personnel database.Hostility from the appraisee: Hostility from the people at the receiving end arises because they feel Performance Appraisal is simply another method in the hands of the managers to exercise their command and control prerogatives. They feel that the data collected will be utilized as evidence against them. In some cases appraises even have a feeling that the outcome of the performance evaluation is predetermined by the management or their superiors and the process is completed only as a formality, due to which appraisees lack interest in the entire appraisal process.Halo Error: Under this type of error, one marked characteristic or latest achievement or failure of the appraisee (either favorable or unfavorable) may be allowed to dominate the appraisal for the entire year. Logical Error: This is a dangerous pitfall for the inexperienced appraiser. He is very often inclined to arrive at similar assessments in respect of qualities that seem logically related.Constant Error: When two appraisers rate an appraisee their ratings may be different. One may show consistent leniency by giving him high scores, the other my consistently rate him by giving low scores.Central Tendency: It is also called as “Average Ratings”. Here, the appraiser tends to avoid giving frank views to the question asked or the appraiser is in doubt or he has inadequate information or he simply wants to play safe and don’t displease anyone.Mirror-Image Error or Projection Error: This error arises when an appraiser expects his own qualities, skills, and values in an appraisee. The appraiser may falsely believe that if the appraisee is good he has to be like him (appraiser) because e the appraiser considers himself as the standard.Contrast Error: This error occurs in the sequencing of ratings. If superior performers are rated first, average performers are rated down, if poorer performers come first, the average performers will be rated more highly.Biases of position, Sex, Race, Religion & Nationality: There is a tendency to rate the occupant at a higher position more favorably than the person in a lower position. Similarly rating can be biased based on sex, religion and nationality too.Lack of Skill in conducting Appraisal discussion:Conducting Performance Appraisal discussions require certain skills and training.How to solve the appraiser’s problems? The best way to overcome the problem is to give training to the appraiser. Training can help improve the appraisal system to the extent that distortion occurring due to appraiser

errors such as halo, leniency, central tendency and bias are minimized.Factors that help to improve accuracy:The appraiser has observed and is familiar with behaviors to be appraised.The appraiser has documented behaviors calling for improvement.The appraiser has a checklist to obtain the review on job-related information.The appraiser is aware of personal biases and is willing to take action to minimize their effects.Rating scores by appraisers of one group or organization are summarized and compared with those by other appraisers.The appraiser focuses attention on performance related behaviors over which he has better control than on other aspects of evaluation.Higher levels of management are held accountable for reviewing all ratings.

Factors that may lower accuracy:The appraiser rates only when administrative actions are contemplated.The appraiser is unable to express herself/himself honestly and unambiguously.Appraisal systems, processes and instruments fail to support the appraiserThe appraiser is unaware of causes of rating errors.The appraiser has to rate employees on factors that are poorly defined.

Techniques/methods of appraisal to be used?There are different types of systems for measuring the excellence of an employee. Each type has its own advantages and disadvantages. The earlier developed methods, still being used, are Traditional Methods that are non-transparent in nature. While other newer methods are transparent in nature. Each of the method has it’s own format of appraisal form.

Why appraisal techniques prove failure-Performance appraisal techniques have often failed to give a correct assessment of the employee. Some of the causes of such failure can be-The supervisor plays dual and conflicting role of both the judge and the helperToo many objectives often cause confusion\The supervisor feels that the subordinate appraisal is not rewarding.A considerable time gap exists between two appraisal programmes.Poor communication keeps the employees in the dark about what is expected of themPoor communication keeps the employees in the dark about what is expected of them.There is a different of opinion between the supervisor and the subordinate in regard to the latter’s performance.Feedback on appraisal is generally unpleasant for the supervisor and the subordinate.

How appraisals can be made successful-The rater must be thoroughly well reversed in the philosophy and nature of the rating system. Factors and factor scales must be well defined, analyzed and discussed. The success of an appraisal programme depends upon-The existence of an atmosphere confidence and trust so that all the matters are discussed frankly between the employee and the supervisorThe supervisor must thoroughly evaluate the employees performance so that he is capable of meeting challenges of his ratings of his subordinatesThe results of performance rather than personality traits should be given due weightThe supervisor should try to analyze the strengths and weaknesses of an employee and advise him on correcting the weaknessesThe appraisal program should be less time consuming and less costly.The results if negative should be immediately communicated to the employees, so that they may try to improve their performance.A post- appraisal interview should be conducted to provide feedback to the employees and know about the problems they are facing on job.The appraisers can effectively appraise the employees if they are given proper training.

Ethics of appraisal-There are certain ethics which must be followed while carrying out performance appraisal of the employees otherwise the very purpose of the appraisal will be defeated. Some of the do’s and don’ts are-Don’t appraise without knowing the purpose of the appraisal.Don’t write one thing and say anotherAppraise on the basis of relevant informationBe honest in your appraisalMention in your appraisal that it is only to those who really want it.

PERFORMANCE APPRAISAL SYSTEM AT ONGC Performance evaluation is accomplished during the Performance appraisal report which is an index of an employee’s work performance over a given period of time. It is crucial for his or her career growth as it indicates the strengths, weaknesses, training needs, nature of job being performed and problems faced in work situation.

5.1(i)Objectives:•To set norms and targets of work performance, as well as, to monitor the work progress of employees.To facilitate placement of employees in accordance with their suitability for different types of assignments.•To provide an objective basis for determination of merit, efficiency and suitability for

the purpose of promotion.•To identify areas requiring exposure for training and development.5.1(ii)Evaluation:•The work performance of an employee on the present job in relation to the expected levels of performance, both qualitative and quantitative.•The extent of development achieved by the employee during the period under review.•Evaluation of behavioral attributes, attitudes and abilities.•Evaluation of potentials for assuming higher responsibility.5.1(iii) Coverage and Time Period:There was however, be 5 different formats forClass III and IVE-0E-1 to E-3E-4 to E-6E-7 and above (PESB format)Time period- The performance appraisal is 12 months of The appraisal form PAR/ACR is filled in respect of all such employees who have served for a period of at least four months in the organization during the relevant year.As per the new method, ONGC has implemented on Performance appraisal system5.2 Performance appraisal Procedure:

APPRAISERS-

There are two levels appraisers-

A PAR form was filled on full description of works done/completed during the appraisal period

Based on the appraise work recover PAR gradeOnly records weather or not agrees with the observa tions of the first ED/RD/Head of institute may like to associate the functional head of the office before he records final observation and also assign a grade.

In this step the ED/RD may like to secure comments only(no grades) of professional Group head as Co-reviewing officer.It’s a final step where need comes to do final observation and assigning a grade.

Ist level-The first appraiser also called as the reporting authority, means an executive under whose direct control and supervision the appraise operates. -In case of seconded appraise, immediate functional senior executive could be the joint executive with reporting authority and he would only record whether or not he agrees with the observations of the first appraiser.

IInd level-It is also called Reviewing authority means a senior executive who oversees the activities of the appraisee and who offers professional advice to, or controls, the 1st appraiser.

Co-reviewing authoritySenior officer (E-5 and E6) located in the professional guidance from their professional seniors posted in the regional office but the overall control of project activities is vested in the project head, who has to review the PAR’s before their transmission.

Accounting- ED/RD/Head of institute may like to associate the functional head of the office before final observation and also assign a grade. In this step the ED/RD may like to secure comments only (no grades) of professional Group head as Co-reviewing officer.

End procedure- It is a final step in which is done after crossing both 1st and second level and then taking a guidance by Co-reviewing officer the need comes to do final observation and assigning a grade.

Procedure

Assessment of PAR/ACR

By reporting By reviewing

E-7 and Above

E-0 to E-6 level executive

Class III/IV E-0 employees

PAR/ACR in respect of an employee is required to be assessed by levels indicated below: By the reporting officer under whom employee is working.➢ By the reviewing officer.➢ The reporting officer for writing PAR of an employee of class III/IV and E-0 level➢

category will be the executive under whose control the employee is working The reviewing officer will be of one grade above the grade of reporting officer. ➢

The PAR ‘sin respect of class III/ IV employees duly revived is maintained at al of the executive up to E-4 level i.e. manager and equivalent would be reviewed by the functional head/GM/CGM not less than E-7. Region/Institute/Headquarter group wise in the concerned establishment section/PAR sections .

The par in the respect of E-0 to E-6 level executives is being maintained in PAR➢ departments at headquarters of R&P division.

As regards E-7 and above all such reports which are received from➢ Regions/Institutes/Headquarters are maintained at Chairman-cum-managing Director’s office.

The reporting officer will be the officer to whom the executive reports for his dayto➢ day work. Review of the PAR will be done by the executives to whom the reporting officer is responsible for his functions. Accepting authority will be the executive higher than the reviewing officer at different levels depending upon the nature of the grades as per delegation of powers in PAR rules

The performance appraisal reports of executives of E-6 level i.e Deputy general➢ manager and above will be submitted to concern functional Director for final review and acceptance. The performance appraisal reports of executives of E-5 level i.e. chief manager and equivalent will be reviewed by the RD/ED/Nominee of director concerned.The appraisal of executives up to E-4 level i.e. manager and equivalent would be reviewed by the functional head/GM/CGM not less than E-7

PERFORMANCE APPRAISAL REPORTS(PAR) OFFICER-

The PAR activities are a part of performance, function but the PAR system is essentially based on support of various departments. The demands that a senior officer not less than E-4 of the personnel department is designated as PAR officer, who will have responsibility to respond quickly to enquires. Each regional Directorate will have a PAR officer. PAR officer will report directly to Head (P & A) in Regional offices, who has the overall responsibility of development of human resource. in respect of offices in Delhi & Dehradun, corporate PAR officer will function under General manager (Recruitment & promotion)

PERFORMANCE APPRAISAL PERIOD-

APPRAISAL YEAR FOR PROBATIONARY PERIOD:

The appraisal year will apply in cases of all Regular executives of ONGC.Special forms and relevant instructions already exist for assessment of performance during the probationary period mentioned above, and these would continue to be operative in the future.It is essential that the process of assessing performance for completion of the probation period commences immediately after the end of the prescribed time, and decision of the appropriate authority is communicated to the concerned executive within six weeks.

APPRAISAL FOR PART PERIOD

The minimum period of four months of linkage between the appraise and the appraisers (Reporting authority, reviewing authority and accepting authority) may be disturbed due to transfer etc. in some cases. The guiding principle for ensuring fair assessment in the event of loss of linkage in such cases would be as under –

A minimum of four months interaction period subsist between the appraise and the first appraiser. In case this is not so, the second appraiser would make his comments on the performance of appraiser would make his comments on the performance of the appraise, in case he had the opportunity of overseeing activities of the executive for a minimum of four months during the appraisal period in consultation with the existing new reporting authority, i.e. first appraiser.In case there is less than four months interaction between the appraise and the second appraiser, the necessity of having second appraise and the second appraiser, the necessity of having second appraisers would be waived, and the final assessment will be the accepting authority on the basis of the report of either first or second level appraiser or both.

In case of an appraiser’s transfer, when he has worked for less than four months period with the reporting authority, the erstwhile reporting authority will forward past period reporting about the erstwhile reporting authority will forward past period report about the appraisee’s performance to the appropriate authority. This report will be attached to the PAR format when the appraisal procedure is initiated for the officer for the current year. The new reporting authority or the reviewing authority may consider the part reporting for appraiser the appraisee’s performance for the total year, and to this in his assessment.

The reviewing authority would also be subjected to the limitation of 4 months period of

inter-action between the appraisee and him (Appraiser). In case this condition is not satisfied the concerned Accepting authority will finally record his assessment in consultation with the first and or second appraiser who have known the appraisee while assigning final grade to the appraisee.

Appraisal in special case

1) Employee on study leave- The reporting officer/PAR is to initiate action to secure a report from the head of institute where the appraisee has been placed for advanced learning/ without waiting for the appraise to fill the performance on the basis of the report received from the institute head. In the event of the non-compliance on the part of the institution to send a report, appraise be advised to send a report of his studied to the appraiser through the institutional head.

3)Employee on long leave- in case an appraise is on medical leave for four months or more, the reporting officer in this case would record the nature of medical problem/reasons for long medical problem/reasons for long medical leave. The medical report, if available, be attached to the PAR.

OVERALL ASSEMBLY BY ACCEPTING AUTHORITY-

The accepting will minutely examine the observations made by the first appraiser and the reviewing authority, and also the self appraisal of the appraise, and after taking due consideration of all the aspects, determine overall grade and also comment on the total performance. There should be specific communicated to the appraise. He could also mention personality traits on which appraise needs to be cancelled/advised for further improvement of his performance and which is not to be considered as an adverse entry.

ASSESMENT SYSTEM

The two PAR formats for executives belongings to junior (E-1 to E-3) and middle (E-4 to E-6), reflects both performance and managerial competency components. These have been assigned block numerical values, merely to help in arriving at the final assessment and grading of individuals. The numerical scores are national only. The appraisers have to use their judgment in the context of the numerical scores, and the total job situation for deciding the grade of performance.

THE GRADING SYSTEMThe block numerical values have been assigned to assist the 1st appraiser in making an overall assessment. The overall total score for determining a grade is merely a guide and final grade may be at variance with the total score. The second appraiser, i.e. the

reviewing authority and the accepting authority, have to take an overall view, both of the performance and the personality of the appraise, while determining the final grading. The accepting authority will arrive at the final grading by judiciously weighing the assessment of reviewing authority who may belong to the functional discipline of the appraise along with the detailed assessment of the reporting authority. The overall rating in grades in respect of appraisals would be as under-

A+ score (95 and above )A score (85 and above but less than 95)A-score (75 and above but less than 85)B+ score (65 and above but less than 75)B score (55 and above but less than 65)C score (45 and above but less than 55)D score(less than 45)

The final grade given by the accepting authority after detailed and due consideration to the rating by the 1st and 2nd appraisers, will be the decisive grade of the appraise executives. In case this final rating is different from those of the 1st and 2nd appraiser, adequate justification must be mentioned by the accepting authority. There must be adequate explanation by the 1st and 2nd appraisers and the accepting authority for any grade assigned to the appraise. In the absence of adequate explanation the report will be considered incomplete and returned back to the appraisers for confirming to the directives contained in the instructions.

THE GRADESThe performance categories are defined as follows-

EXCEPTIONAL (A+): This is a person whose job performance and personality attributes are clearly remarkable. The person meets or exceeds company’s highest standard and achievers extraordinary results in extraordinary circumstances. A rare individual who achieves this once in a while.

TOP PERFORMER (A):This is someone whose job performance is noteworthy and he makes valuable contribution to the organization. He does not have any negative personality attributes. He is one of the top performers.

VERY GOOD (B) :This is an individual whose overall performance meets basic requirements of the job and

the basic targets.

PEN PICTURE: In addition to assigning the grade, the appraisers must depict in precise language the dimensions of appraisee’s total performance which justifies the grade and mention his personal attributions.

MODERATION:This means re-evaluation of the PAR of an appraisee and the grade awarded by the accepting authority to correct any aberrations.

REGIONAL OFFICE:The head of the personnel department at the region, i.e. G.M. (P&A) will review the PARs of the executives up to E-3 level and advice the regional director in consultation with the functional head (which has to be recorded in PAR) will have authority to moderate PARs under:

All PARs which are graded A+ and D Cases referred by General Manager (P & A) of the regions, on the basis of monitoring.

The institutional heads will moderate PARs of the executives up to E-3 level in the same manner as regional Director.ONGC EADQUARTERS, DEHRADUN:

General Manager HRG will conduct an analysis of the PAR reports for all E-4 to E-6 level executives including regions and approaches director (HR) for correcting aberrations, Director (HR), on the basis of detailed analysis, may moderate the final grade of individual PARs in consultation with head of the functional group which has to be duly recorded.

EXECUTIVES COMMITTEE OF THE BOARD

The executive committee of the board of director may moderate the final grades awarded to an executive belonging to E-7 to E-9. GUIDELINES FOR MODERATION

a)Designated authority-It is considered difficult to design a moderation system through empowered committee for the final grade assigned to an appraisee by the accepting authority because of a large variety of specialized cadres. In view of this, a designated authority has been determined,

instead of a committee which will be required to seek advice / guidance form head of professional groups for each case, to be duly recorded, in the format itself. The designated authorities would be-

Regional directors- for executives up to E-3 level in the project and the regional offices.Head of institutes- for executives up to E-3 level working in the institute.G.M (R & P)- for executives working in ONGC Headquarters, Dehradun and Delhi offices.Director (H.R)- For E-4 to E-6 level executives in project, regional offices, institutes,ONGC headquarters, Dehradun and Delhi offices.Chairman & managerial director, ONGC- For E-7 and above executives.

Norms-

The designated authority for moderation has special responsibility to ensure that by and large, the final grading of PARs of executives (E-4 to E-6) of various disciplines confirm to the board pattern indicated below

Percentage of the total number of executives in the business group to be placed in different grades (E-4 to E-6) only is indicated below-

A+ score (95 and above)A score (85 and above but less than 95)A-score (75 and above but less than 85)B+ score (65 and above but less than 75)B score (55 and above but less than65)C score (45 and above but less than 55)D score (less than 45)The above percentage norms will be achieved over a period of three years, i.e. there would be gradual reduction each year for executives graded A+ (particularly those in grades E-4 and above, which at present is very high)

ONGC Headquarter Dehra dun E-4-E-6 level: Moderation exercise would be undertaken after detailed analysis of PAR in respect of appraise awarded A+, A and D grades. The basis of analysis would be determined by Director (HR), on the basis of suggestions of G.M (R&P)

Instead of formal meeting of members of moderation committee, the view of concerned functional director relevant to the appraise will be secured, and final grading after moderation will be secured on PAR sheet by G.M (R&P) as authorized official on behalf of director (HR)

COUNSELLING SYSTEM-

It is proposed to adopt counseling system for executives up to the level of E-5 at regional offices, institutes, headquarter at dehradun and Delhi. The counseling procedure will be as under--Regional director/head of the institution or his representative now below the rank of E-7-Head of the personnel division-An outside management expert selected by director (HR)

BUSINESS OF THE COUNSELLING GROUP-

The group will consider the following points-

An executive who has been finally graded ‘Adequate’ during the last two years in succession.An executive who has been finally graded ‘inadequate’ during the yearAn executive for whom counseling has been suggested by the accepting authority, may not belong to category (A) and (B) above

DELEGATION OF POWERS REGARDING INITIATION, REVIEW AND ACCEPTANCE OF PERFORMANCE APPRAISAL:Level of Appraisee

Reporting authority(2nd appraiser)

Reviewing authority(2nd appraiser)

Accepting authority

Appellate authority(for adverse authority)

E-1 & E-2

Immediate superior officer/head of office. Department/officer/in charge not less than E-3

Senior executive not less than E-4. Preferably belonging to functional discipline

Project manager/ business Group incharge not less than E-5Head of institute

Project head /generalManager E-7/E-8/ Concerned Director

E-3 Immediate superior officer/head of office/incharge not less than E-5

Senior executive not less than E-5/6 preferably belonging to functional discipline

General manager/project head not less than E-7/8Head of institute

Group General manager/ regional director, concerned director

E-4 Head of office/department incharge not less than E-5

Department/functional head not less than E-6

Functional head/project general manager E-7/8 Head of institute

Regional director/Concerned director

E-5 Deputy general manager/head of project/functional head, preferably not less than E6

General manager/ group general manger

Regional director/ nominee of the functional director

Director of concerned business group

E-6 General manager/functional head not less than E-7

Regional director/nominee of the functional director

Director of concerned business group

Chairmen and managing director

E-7 Group general manager

Director of concerned business group

Chairmen and managing director

Chairmen and managing director

E-8 Regional director Chairmen and managing director

Chairmen and managing director

Board of directors

E-9 Director Chairmen and managing director

Chairmen and managing director

Board of directors

NEED FOR e-PARAddress the need for a transparent, multidimensional evaluation system in sync with industry practices.Introduce performance contracting and objective evaluation.

Supplement efforts to enable speed up HR processes like promotions, special assignments, deputation out, rearwards and incentives etc. through system.IT enabled performance management system already in use in organizations like IOC, HPCL,SAP, etcStreamlining of PAR process.

Benefits envisagedUniform application across the company and standardize performance criterion, minimize subjectivitySystem driven control and monitoring mechanism.Single point data capturing and authentication.Reduce cycle time and adherence to time schedulesEnhanced data security and confidentiality.Authenticity and audit trail of transactionsAvailability of online informationLinkage to performance based rewards/ incentives and HR processes like promotion award etc.

Change in evaluation methodology in e-PAR system Existing method of performance appraisal

Proposed method of performance appraisal in e-PAR

1 No provision to define targets at the beginning of the year

KPI’S/KRA’S to be defined at the beginning of the appraisal year

2 Self appraisal by the employees at the end of assessment year, based on achievements during the year

Self achievement based on achievements against predefined KRA’S/KPI’S jointly set with reporting officer(appraiser)

3 No provision for mid term review Compulsory mid-term review4 Potential appraisal based on

preset attributes and traitsMinor change by inclusion of punctuality

5 Unilateral appraisal by controlling officer based on KRA’s

Performance appraisal based on predefined KRA’S

METHEDOLOGY

CHAPTER -5 EMPLOYEE MOTIVATION IN ONGCMotivation in simple terms may be understood as the set of forces that cause people to behave in certain ways. Motivation is the activation or energization of goal-orientated behavior. Motivation is said to be intrinsic or extrinsic. According to various theories, motivation may be rooted in the basic need to minimize physical pain and maximize pleasure, or it may include specific needs such as eating and resting, or a desired object, hobby, goal, state of being, ideal, or it may be attributed to less-apparent reasons such as altruism, selfishness, morality, or avoiding mortality. The term motivation is derived from the Latin word ‘movere’, meaning "to move." Motivation can be broadly defined as the forces acting on or within a person that cause the arousal, direction, and persistence of goal-directed, voluntary effort. Motivation theory is thus concerned with the processes that explain why and how human behavior is activated. The lack of a unified theory of motivation reflects both the complexity of the construct and the diverse backgrounds and aims of those who study it. To delineate these crucial points, it is illuminating to consider the development of motivation and motivation theory as the objects of scientific inquiry. The only way to get people to like working hard is to motivate them. Today, people must understand why they're working hard. Every individual in an organization is motivated by something different." -Rick PitinoThere are many employee motivation definition. Personally I like this simple one: “Employee motivation is a reflection of the level of energy, commitment, and creativity that a company's workers bring to their jobs.”I think that’s a clear way to look at it but if that one doesn’t quite work for you, here’s an alternative employee motivation definition:"Psychological forces that determine the direction of a person's behavior in an organization, a person's level of effort and a person's level of persistence." G. Jones and J. George from the book "Contemporary Management."Motivation is the psychological feature that arouses an organism to action toward a desired goal and elicits, controls, and sustains certain goal directed behaviors. For instance: An individual has not eaten, he or she feels hungry, and as a response he or she eats and diminishes feelings of hunger. There are many approaches to motivation: physiological, behavioural, cognitive, and social.It is the crucial element in setting and attaining goals—and research shows that subjects can influence their own levels of motivation and self-control. According to various theories, motivation may be rooted in a basic need to minimize physical pain and maximize pleasure, or it may include specific needs such as eating and resting, or a desired object, goal, state of being, ideal, or it may be attributed to less-apparent reasons such as altruism, selfishness, morality, or avoidingmortality. Conceptually, motivation is distinct from volition and optimism Motivation is related to, but distinct from, emotion

All managers want to motivate their employees to do well. The real question is what motivates employees? How can you recognize it and increase employee motivation? But first and fundamentally, lets explore why is employee motivation important?Why is employee motivation important?You can have a lovely shiny car, but it’s worthless if it doesn’t have the power of a great engine behind it. Your employees are the engines of your organization and like any finely tuned engine your workforce to operate smoothly and effectively. The fact is employee motivation is directly linked to business profits, and the more self-motivated your employees are, the more differentiated and successful you will be as a business.• Motivated employees look for better ways to do a job.•Motivated employees care about their customers• Motivated employees take pride in their work.• Motivated workers are more productive.What motivates employees?Every person has a different reason for going to work. These reasons are as individual as whichever person you may ask. But all of the reasons for working share a common thread. We all obtain something from work we need.There is much discussion about the value of extrinsic motivation (monetary and other material rewards) versus intrinsic motivation where people re driven by what’s inside them. not by the trappings of success.Whereas I recognize how critical extrinsic motivation is–we all need to be rewarded fairly for the job that we do-in my experience the most effective factors relating to employee motivation are related to intrinsic motivation:1. Empowerment: Feeling trusted and empowered is a tremendous motivator.2. Growth: Feeling that they are growing and developing personally3. Inclusion: ‘To belong’ is a fundamental need, whether as a member of a family, peer group, network, team or company. It’s human nature to want to be on the inside, not the outside.4. Purpose: Today people care more about what happens tomorrow, and want to contribute to ensuring the future of our children, and the health of our communities and planet.5. Trust: the fabric that holds it all together and makes it real

Motivation DefinedMany contemporary authors have also defined the concept of motivation. Motivation has been defined as: the psychological process that gives behavior purpose and direction (Kreitner, 1995); a predisposition to behave in a purposive manner to achieve specific, unmet needs (Buford, Bedeian, & Lindner, 1995); an internal drive to satisfy an unsatisfied need (Higgins, 1994); and the will to achieve (Bedeian, 1993). For this paper, motivation is operationally defined as the inner force that drives individuals to accomplish personal and organizational goals.The Role of MotivationWhy do we need motivated employees? The answer is survival (Smith, 1994). Motivated employees are needed in our rapidly changing workplaces. Motivated employees help

organizations survive. Motivated employees are more productive. To be effective, managers need to understand what motivates employees within the context of the roles they perform. Of all the functions a manager performs, motivating employees is arguably the most complex. This is due, in part, to the fact that what motivates employees changes constantly (Bowen & Radhakrishna, 1991). For example, research suggests that as employees' income increases, money becomes less of a motivator (Kovach, 1987). Also, as employees get older, interesting work becomes more of a motivator.PurposeThe purpose of this study was to describe the importance of certain factors in motivating employees at the Piketon Research and Extension Center and Enterprise Center. Specifically, the study sought to describe the ranked importance of the following ten motivating factors: (a) job security, (b) sympathetic help with personal problems, (c) personal loyalty to employees, (d) interesting work, (e) good working conditions, (f) tactful discipline, (g) good wages, (h) promotions and growth in the organization, (i) feeling of being in on things, and (j) full appreciation of work done. A secondary purpose of the study was to compare the results of this study with the study results from other populations.MethodologyThe research design for this study employed a descriptive survey method. The target population of this study included employees at the Piketon Research and Extension Center and Enterprise Center (centers). The sample size included all 25 employees of the target population. Twenty-three of the 25 employees participated in the survey for a participation rate of 92%. The centers are in Piketon, Ohio.The mission of the Enterprise Center is to facilitate individual and community leader awareness and provide assistance in preparing and accessing economic opportunities in southern Ohio. The Enterprise Center has three programs: alternatives in agriculture, small business development, and women's business development. The mission of the Piketon Research and Extension Center is to conduct research and educational programs designed to enhance economic development in southern Ohio. The Piketon Research and Extension Center has five programs: aquaculture, community economic development, horticulture, forestry, and soil and water resources.From a review of literature, a survey questionnaire was developed to collect data for the study (Bowen & Radhakrishna, 1991; Harpaz, 1990; Kovach, 1987). Data was collected through use of a written questionnaire hand-delivered to participants. Questionnaires were filled out by participants and returned to an intra-departmental mailbox. The questionnaire asked participants to rank the importance of ten factors that motivated them in doing their work: 1=most important . . . 10=least important. Face and content validity for the instrument were established using two administrative and professional employees at The Ohio State University. The instrument was pilot tested with three similarly situated employees within the university. As a result of the pilot test, minor changes in word selection and instructions were made to the questionnaire.Results and DiscussionThe ranked order of motivating factors were: (a) interesting work, (b) good wages, (c) full appreciation of work done, (d) job security, (e) good working conditions, (f) promotions and

growth in the organization, (g) feeling of being in on things, (h) personal loyalty to employees, (i) tactful discipline, and (j) sympathetic help with personal problems.A comparison of these results to Maslow's need-hierarchy theory provides some interesting insight into employee motivation. The number one ranked motivator, interesting work, is a self-actualizing factor. The number two ranked motivator, good wages, is a physiological factor. The number three ranked motivator, full appreciation of work done, is an esteem factor. The number four ranked motivator, job security, is a safety factor. Therefore, according to Maslow (1943), if managers wish to address the most important motivational factor of Centers' employees, interesting work, physiological, safety, social, and esteem factors must first be satisfied. If managers wished to address the second most important motivational factor of centers' employees, good pay, increased pay would suffice. Contrary to what Maslow's theory suggests, the range of motivational factors are mixed in this study. Maslow's conclusions that lower level motivational factors must be met before ascending to the next level were not confirmed by this study.The following example compares the highest ranked motivational factor (interesting work) to Vroom's expectancy theory. Assume that a Centers employee just attended a staff meeting where he/she learned a major emphasis would be placed on seeking additional external program funds. Additionally, employees who are successful in securing funds will be given more opportunities to explore their own research and extension interests (interesting work). Employees who do not secure additional funds will be required to work on research and extension programs identified by the director. The employee realizes that the more research he/she does regarding funding sources and the more proposals he/she writes, the greater the likelihood he/she will receive external funding.Because the state legislature has not increased appropriations to the centers for the next two years (funds for independent research and extension projects will be scaled back), the employee sees a direct relationship between performance (obtaining external funds) and rewards (independent research and Extension projects). Further, the employee went to work for the centers, in part, because of the opportunity to conduct independent research and extension projects. The employee will be motivated if he/she is successful in obtaining external funds and given the opportunity to conduct independent research and extension projects. On the other hand, motivation will be diminished if the employee is successful in obtaining external funds and the director denies the request to conduct independent research and Extension projects.The following example compares the third highest ranked motivational factor (full appreciation of work done) to Adams's equity theory. If an employee at the centers feels that there is a lack of appreciation for work done, as being too low relative to another employee, an inequity may exist and the employee will be dis-motivated. Further, if all the employees at the centers feel that there is a lack of appreciation for work done, inequity may exist. Adams (1965) stated employees will attempt to restore equity through various means, some of which may be counter- productive to organizational goals and objectives. For instance, employees who feel their work is not being appreciated may work less or undervalue the work of other employees.

This final example compares the two highest motivational factors to Herzberg's two-factor theory. The highest ranked motivator, interesting work, is a motivator factor. The second ranked motivator, good wages is a hygiene factor. Herzberg, Mausner, & Snyderman (1959) stated that to the degree that motivators are present in a job, motivation will occur. The absence of motivators does not lead to dissatisfaction. Further, they stated that to the degree that hygienes are absent from a job, dissatisfaction will occur. When present, hygienes prevent dissatisfaction, but do not lead to satisfaction. In our example, the lack of interesting work (motivator) for the centers' employees would not lead to dissatisfaction. Paying centers' employees lower wages (hygiene) than what they believe to be fair may lead to job dissatisfaction. Conversely, employees will be motivated when they are doing interesting work and but will not necessarily be motivated by higher pay.The discussion above, about the ranked importance of motivational factors as related to motivational theory, is only part of the picture. The other part is how these rankings compare with related research. A study of industrial employees, conducted by Kovach (1987), yielded the following ranked order of motivational factors: (a) interesting work, (b) full appreciation of work done, and (c) feeling of being in on things. Another study of employees, conducted by Harpaz (1990), yielded the following ranked order of motivational factors: (a) interesting work, (b) good wages, and (c) job security.In this study and the two cited above, interesting work ranked as the most important motivational factor. Pay was not ranked as one of the most important motivational factors by Kovach (1987), but was ranked second in this research and by Harpaz (1990). Full appreciation of work done was not ranked as one of the most important motivational factors by Harpaz (1990), but was ranked second in this research and by Kovach (1987). The discrepancies in these research findings supports the idea that what motivates employees differs given the context in which the employee works. What is clear, however, is that employees rank interesting work as the most important motivational factor.Implications for Centers and ExtensionThe ranked importance of motivational factors of employees at the centers provides useful information for the centers' director and employees. Knowing how to use this information in motivating centers' employees is complex. The strategy for motivating centers' employees depends on which motivation theories are used as a reference point. If Hertzberg's theory is followed, management should begin by focusing on pay and job security (hygiene factors) before focusing on interesting work and full appreciation of work done (motivator factors). If Adams' equity theory is followed, management should begin by focusing on areas where there may be perceived inequities (pay and full appreciation of work done) before focusing on interesting work and job security. If Vroom's theory is followed, management should begin by focusing on rewarding (pay and interesting work) employee effort in achieving organizational goals and objectives.Regardless of which theory is followed, interesting work and employee pay appear to be important links to higher motivation of centers' employees. Options such as job enlargement, job enrichment, promotions, internal and external stipends, monetary, and non-monetary

compensation should be considered. Job enlargement can be used (by managers) to make work more interesting (for employees) by increasing the number and variety of activities performed. Job enrichment can used to make work more interesting and increase pay by adding higher level responsibilities to a job and providing monetary compensation (raise or stipend) to employees for accepting this responsibility. These are just two examples of an infinite number of methods to increase motivation of employees at the centers. The key to motivating centers' employees is to know what motivates them and designing a motivation program based on those needs.The results presented in this paper also have implications for the entire Cooperative Extension Sysyem. The effectiveness of Extension is dependent upon the motivation of its employees (Chesney, 1992; Buford, 1990; Smith, 1990). Knowing what motivates employees and incorporating this knowledge into the reward system will help Extension identify, recruit, employ, train, and retain a productive workforce. Motivating Extension employees requires both managers and employees working together (Buford, 1993). Extension employees must be willing to let managers know what motivates them, and managers must be willing to design reward systems that motivate employees. Survey results, like those presented here, are useful in helping Extension managers determine what motivates employees (Bowen & Radhakrishna, 1991). If properly designed reward systems are not implemented, however, employees will not be motivatedIncentive Scheme in ONGC has been in existence since late 60’s and with the passage of time has under gone number of reviews. . Keeping the present business scenario in focus ONGC management have realized that scheme has not able to achieve the desired objectives as intended in the scheme. The main purpose of the scheme is to motivate the employees to achieve the target set by the Organization. , As organization face mounting competition across the world. Companies can’t sustain or even survive in such a relentless environment without attempting to accurately assesses and enhance employee productivity and development. In view of the above an attempt has been made to compile the details of all incentive scheme in reference to employee working at ONGC. A need is there fore strongly realized for compilation that has been titled as “EMPLOYEE MOTIVATION REGARDING INCENTIVE SCHEMES AT ONGCEmployee Motivation TechniquesMotivating employees is an important skill for supervisors, managers, and business owners to have. When developing motivation plans, it is important to recognize the individual differences among employees and realize that not all motivation techniques will work for everyone. Each employee must be evaluated to determine what motivates them the most. Below are several ideas for motivating employees and preventing job boredom or job overload.Employee Motivation Through Job RotationJob rotation, also known as cross-training, can be very effective for employees that perform repetitive tasks in their job. Job rotation allows the employees to learn new skills by shifting them from one task to another. 

Motivate your employees with job rotationEmployee Motivation Through Job EnlargementJob enlargement is a motivation technique used for employees that perform very few and simple tasks. Job enlargement increases the number and variety of tasks that the employee performs, resulting in a feeling of importance. Employee Motivation Through Job EnrichmentThis method increases the employees control over the work being performed. It allows employees to control the planning, execution, and evaluation of their own work, resulting in freedom, independence, and added responsibility. Employee Motivation Through FlextimeFlextime allows employees to choose their own work schedule, to a certain extent. For example, if the office is open from 8am until 9pm, the employees can come in at any time during that period to complete their 8 hours.Employee Motivation Through Job SharingThis is a less common method, but very effective at preventing boredom. It allows 2 employees to share 2 different jobs. They could alternate days or weeks, working 20 hours in each position each week. 

Motivate your employees with job sharingEmployee Motivation Through Employee InvolvementPeople want to feel like they are a part of something. Letting the employees be more active in the decision-making related to their job makes them feel valued and important to the company and increases job motivation2: Importance of Motivation

Importance of motivationThe importance of motivation is obvious. We need motivation in order to reach our goals. In fact it is one of the most important and driving factor for us reaching our goals. So when that being said it is not hard to imaging how things would be if there was no such thing as motivation.Motivation does not have to be positive emotions. Fear can be a very effective motivating factor. Stress is an example of negative motivating ineffective feelings. Most people have a tendency to become narrow sighted when they are stressed, some even get paralysed or apathy.Is motivation important in the workplace? You bet! Why? First, you spend more time at work than you do awake at home. And typically, work environments are very goal oriented. Some people argue that getting goals motivates people. This is of course not true. It is the rewards for

reaching the goals that motivates or the feeling of fulfilment when they reach their goals or the satisfaction of being important etc. This is why many companies and organisations are very strong on bonuses and appraisals.Behaviour stylesNow I firmly believe that the importance of motivation varies between different types of people. If you ever come across any of the behaviour matrix’s that is available on the market, you’ll notice some interesting things when it comes to motivation. It is easy to realise that most companies bonus and appraisal systems are not very well thought through. Usually a behaviour matrix’s divides people into four different types of behaviour groups. One of the behaviour matrix's that I have worked with is IDI (Interpersonal Dynamics Inventory) that was created by Richard E. Zackrison. The four IDI styles are Motivator, Producer, Processor and Relator. They all have different needs and are therefore motivated by different emotions. Let’s take a look at them:

Motivators are people that are good at motivating others, they are often perceived as exciting, fast, outspoken, engaging, enthusiastic, creating and fun. “There is always something new going on”. They are often very good at getting others to want to take on new challenges. Their need is to be unique and that is driving their motivation. Needles to say the importance of motivation is high.Producers are people that often are perceived as goal oriented, strong, self confident, practically, down to earth and determent. “They go straight for the problem”. Producers are good at driving towards goals. Their need is to be in control and that is driving their motivation.Processors are often perceived as well thought through, objective, consistent, serious and logical. “Nothing gets lost”. They are good at structuring and analysing. Their need is to understand and that is driving their motivation.

Relators are often perceived as supporting, loyal, trustworthy, considerate, calm, friendly and caring. “Always at hand when needed”. Relators are good at creating and maintaining good relations with other. Their need is to be liked and that is driving their motivation.So, you see, a well thought through bonus and appraisal system also needs to take these different aspects into considerations. Everybody wants more money, sure. But it’s the how that differs. My advice for companies would be to put much more energy into supporting managers in how to handle different behaviour styles. But then, I’m a Relator of course

Motivation is one of the most important factors determining organizational efficiency. All organizational facilities will go to waste in absence of motivated people to utilize these facilities effectively. Every superior in the organization must motivate its subordinates for the right types of behavior. The performance of human beings in the organization is dependent on the ability in the motivation. Rensis Likert called motivation as" the cost of the management". Motivation is an effective instrument in the hands of management in inspiring the workforce. Motivation increases the willingness of the workers to work, thus increasing efficiency and effectiveness of the organization. Best utilization of resources: - Motivation ensures best and efficient utilization of all types of resources. Utilization of resources is possible to their fullest extent if the man is induced to contribute their efforts towards attaining organizational goals. Thus, people should be motivated to carry out the plans, policies and programmes laid down by the organization.

Will to Contribute: - there is a difference between "Capacity to work" and "willingness to work". One can be physically and mentally fit to work but he may not be willing to work. Motivation results in feeling of involvement to present his better performance. Thus, motivation bridges the gap between capacity to work and willingness to work.

Reduction in Labor Problems: - all the members try to concentrate their efforts to achieve the objectives of the organization and carry out plans in accordance with the policies and programmes laid down by the organization if the management introduced motivational plans. It reduces labor problems like labor turnover, absenteeism, indiscipline, grievances, etc. because their real wages increase by the motivational plans.

Sizeable increase in production and productivity: - when motivated properly, people try to put efforts produce more, thus increasing their efficiency and as a result of this general production and productivity of the organization increases. They (motivated employees) use the methods, system and technology effectively in the best interest of the organization.

Basis of Cooperation: - In a zeal to produce more the member's work 'an s a team to pull the weight effectively, to get their loyalty to the group and the organization, to carry out properly the activities allocated and generally to play an efficient part in achieving the purpose which the

organization has undertaken'. Thus, motivation is a basis of cooperation to get, the best result out of the efforts of the human beings on the job.

Improvement upon skill and knowledge:- all the members will try to be efficient as possible and will try it improve upon the skill and knowledge to the progress of the organization which, in turn will provide the promised and more, ultimately enabling them to satisfy their needs - personal and social both.

Acceptance of organizational change: - change is the law of nature. Due to several changes in the society, changes in technology, value system, etc. organization has to incorporate these changes to cope with the requirement of the time. If people are effectively motivated, they gladly accept, introduce and implement these changes without reserving any resistance to change and negative attitude, thus keeping the organization on the right track of progress.

Better Image: - a firm that provides opportunities for the advancement of its people has a better image in the minds of the public as a good employer. This, image helps in attracting qualified personnel and thus simplifies the staffing function. This will also improve employee satisfaction and reduce industrial stifle.

In a nutshell, to achieve the organizational and individual goals in an economical and efficient manner, motivation is an important tool in the hands of management to direct the behavior of subordinates in the desired and appropriate direction and thus minimize the wastage of human and other resourcesMotivation is a very important for an organization because of the following benefits it provides:-Puts human resources into actionEvery concern requires physical, financial and human resources to accomplish the goals. It is through motivation that the human resources can be utilized by making full use of it. This can be done by building willingness in employees to work. This will help the enterprise in securing best possible utilization of resources.Improves level of efficiency of employeesThe level of a subordinate or a employee does not only depend upon his qualifications and abilities. For getting best of his work performance, the gap between ability and willingness has to be filled which helps in improving the level of performance of subordinates. This will result into-Increase in productivity,Reducing cost of operations, andImproving overall efficiency.Leads to achievement of organizational goalsThe goals of an enterprise can be achieved only when the following factors take place :-There is best possible utilization of resources,

There is a co-operative work environment,The employees are goal-directed and they act in a purposive manner,Goals can be achieved if co-ordination and co-operation takes place simultaneously which can be effectively done through motivation.Builds friendly relationshipMotivation is an important factor which brings employees satisfaction. This can be done by keeping into mind and framing an incentive plan for the benefit of the employees. This could initiate the following things:Monetary and non-monetary incentives,Promotion opportunities for employees,Disincentives for inefficient employees.In order to build a cordial, friendly atmosphere in a concern, the above steps should be taken by a manager. This would help in:Effective co-operation which brings stability,Industrial dispute and unrest in employees will reduce,The employees will be adaptable to the changes and there will be no resistance to the change,This will help in providing a smooth and sound concern in which individual interests will coincide with the organizational interests,This will result in profit maximization through increased productivity.Leads to stability of work forceStability of workforce is very important from the point of view of reputation and goodwill of a concern. The employees can remain loyal to the enterprise only when they have a feeling of participation in the management. The skills and efficiency of employees will always be of advantage to employees as well as employees. This will lead to a good public image in the market which will attract competent and qualified people into a concern. As it is said, “Old is gold” which suffices with the role of motivation here, the older the people, more the experience and their adjustment into a concern which can be of benefit to the enterprise.From the above discussion, we can say that motivation is an internal feeling which can be understood only by manager since he is in close contact with the employees. Needs, wants and desires are inter-related and they are the driving force to act. These needs can be understood by the manager and he can frame motivation plans accordingly. We can say that motivation therefore is a continuous process since motivation process is based on needs which are unlimited. The process has to be continued throughout.We can summarize by saying that motivation is important both to an individual and a business. Motivation is important to an individual as:Motivation will help him achieve his personal goals.If an individual is motivated, he will have job satisfaction.Motivation will help in self-development of individual.An individual would always gain by working with a dynamic team.Similarly, motivation is important to a business as:The more motivated the employees are, the more empowered the team is.

The more is the team work and individual employee contribution, more profitable and successful is the business.During period of amendments, there will be more adaptability and creativity.Motivation will lead to an optimistic and challenging attitude at work place

MOTIVATIONAL FACTORS There are several factors that motivate a person to work. The motivational factors can be broadly divided into two groups: I. MONETARY FACTORS: ™ Salaries or wages: Salaries or wages is one of the most important motivational factors. Reasonable salaries must be paid on time. While fixing salaries the organization must consider such as : • Cost of living • Company ability to pay • Capability of company to pay etc, ™ Bonus: It refers to extra payment to employee over and above salary given as an incentive. The employees must be given adequate rate of bonus. ™ Incentives: The organization may also provide additional incentives such as medical allowance, educational allowance, hra ,allowance, etc. ™ Special individual incentives: The company may provide special individual incentives. Such incentives are to be given to deserving employees for giving valuable suggestions. II. NON MONETARY FACTORS: ™ Status or job title: By providing a higher status or designations the employee must be motivated. Employees prefer and proud of higher designations. ™ Appreciation and recognition: Employees must be appreciated for their services. The praise should not come from immediate superior but also from higher authorities. ™ Delegation of authority: Delegation of authority motivates a subordinate to perform the tasks with dedication and commitment. When authority is delegated, the subordinate knows that his superior has placed faith and trust in him. ™ Working conditions : Provision for better working conditions such as air-conditioned rooms, proper plant layout, proper sanitation, equipment, machines etc, motivates the employees.

™ Job security: Guarantee of job security or lack of fear dismissal, etc can also be a good way to motivate the employees. Employees who are kept temporarily for a long time may be frustrated and may leave the organization. ™ Job enrichment: Job enrichment involves more challenging tasks and responsibilities. For instance an executive who is involved in preparing and presenting reports of performance, may also asked to frame plans. ™ Workers participation: Inviting the employee to be a member of quality circle, or a committee, or some other form of employee participation can also motivate the workforce. ™ Cordial relations: Good and healthy relations must exist throughout the organization. This would definitely motivates the employees. ™ Good superiors: Subordinates want their superiors to be intelligent, experienced, matured, and having a good personality. In fact, the superior needs to have superior knowledge and skills than that of his subordinates. The very presence of superiors can motivate the subordinates. ™ Other factors: There are several other factors of motivating the employees: • Providing training to the employees. • Proper job placements. • Proper promotions and transfers. • Proper performance feed back. • Proper welfare facilities. • Flexible working hours3: Theories of motivation There are a number of theories relating to motivation and they can be classified into several categories such as:Content TheoriesProcess TheoriesReinforcement Theories

Content theories include:Maslow’s need hierarchy modelHerzberg’s two factor modelAlderfer’s ERG and Achievement Motivation theoryMcClelland’s need theory

Process theories include:Vroom’s Expectancy modelAdam’s Equity theoryPorter’s Performance and Satisfaction mOdelGoal Setting Theory

Other theories include:1) Rensis Likert’s theory2) Theory X and Y3) Cognitive theoryI.Early Theories:

Scientific Management:Taylor’s ContributionElton Mayo

Taylor’s Contribution:Under scientific management people would be directed by reason and the problems of industrial unrest would be appropriately addressed. This philosophy is oriented toward the maximum gains possible to employees. Managers would guarantee that their subordinates would have access to the maximum of economic gains by means of rationalized processes. Organizations were portrayed as rationalized sites, designed and managed according to a rule of rationality imported from the world of technique.2) Contributions of Elton Mayo:The Human Relations Movement takes the view that businesses are social systems in which psychological and emotional factors have a significant influence on productivity. The common elements in human relations theory are the beliefs thatPerformance can be improved by good human relationsManagers should consult employees in matters that affect staff.Leaders should be democratic rather than authoritarian.Employees are motivated by social and psychological rewards and are not just "economic animals"The work group plays an important part in influencing performanceThe work of Elton Mayo is famously known as “Hawthorne Experiments.” He conducted behavioral experiments at the Hawthorne Works of the American Western Electric Company in Chicago. He made some illumination experiments, introduced breaks in between the work performance and also introduced refreshments during the pauses. On the basis of this he drew the conclusions that motivation was a very complex subject. It was not only about pay, work condition and morale but also included psychological and social factors. Although this research has been criticized from many angles, the central conclusions drawn were:

People are motivated by more than pay and conditions.The need for recognition and a sense of belonging are very important.Attitudes towards work are strongly influenced by the group.

II. Contemporary Theories

Content Theories:

Content (or need) theories of motivation focus on factors internal to the individual that energize and direct behavior. In general, such theories regard motivation as the product of internal drives that compel an individual to act or move (hence, "motivate") toward the satisfaction of individual needs. The content theories of motivation are based in large part on early theories of motivation that traced the paths of action backward to their perceived origin in internal drives. Major content theories of motivation are Maslow's hierarchy of needs, Alderfer's ERG theory, Herzberg's motivator-hygiene theory, and McClelland's learned needs or three-need theory

Maslow’s Hierarchy of Needs

This theory was propounded by Abraham H. Maslow and one of the most simplest and widely discussed theory of motivation. The essence of the theory is as follows:Human beings have wants and desires which can influence their behaviour and the unssatisfied ones are the ones which influence behaviour whereas the satisfied needs do not act as motivators.Since needs are many, they are arranged in the order of their importance or hierarchy from basic to complex.The person advances to the next level of hierarchy, or from the basic to the complex, only when the lower-level need is, atleast minimally satisfied.Further up the hierarchy the person is able to go, the more individuality, humaneness, and psychological health he or she will display.It is the job of the HR specialists to lift employees from lower-level needs to higher-level needs.The needs, listed from basic (lowest-earliest) to most complex (highest-latest) are as follows:Physiology (hunger, thirst, sleep, etc.)Safety or Security or Shelter or HealthBelongingness or Love or FriendshipSelf- esteem or Recognition or AchievementSelf actualizationThere are primary as well as secondary needs. The satisfaction of primary needs does not produce contentment instead it brings in discontent as human beings are never satisfied with what they have and so the need for secondary needs begins to motivate people. After physiological needs are fulfilled, they begin to want, in succession, safety, love, esteem and self- realization.

Physiological Needs:These are directly concerned with the biological maintenance of the organism and must be gratified at some minimum level, before the individual is motivated by higher level needs. In the organisational perspective, the employees’ concern for salary and working conditions is what constitutes the physiological needs and it is the duty of the HR that these needs are met so that they would strive for higher-level needs.

Safety Needs:The ensuring of a reasonable degree of continuity, order, structure, and predictability in one’s environment is what is important here. In the organisational context, factors such as job security, salary increments, safe working conditions, unionisation, and lobbying for protective legislation.Managerial practices to satisfy the needs of employees include pension schemes, group insurance, provident fund, gratuity, safe working conditions, grievance procedure, system of seniority to govern lay-off and others. Belongingness and Love needs:A healthy, loving relationship including mutual respect, admiration and trust is included here which is fulfilled after fulfilling the first two needs. In the organisational context, social needs represent the need for a compatible work group, peer acceptance, professional friendship, and friendly supervision. Supervision requires to be effective and friendly behaviour with subordinate pays. Managers might view friendly relations with their peers as a threat to the organisation ans thus act accordingly. Thus, the employees may become resistant, antagonistic, and uncooperative.

Self-esteem needsThese needs are classified into two subsidiary sets- self-respect and esteem from others. Self-respect includes the desire for competence, confidence, personal strength, adequacy, achievement, independence, and freedom. Esteem from others include prestige, recognition, acceptance, attention, status, reputation, and appreciation.In the workplace, self-esteem needs correspond to job title, merit pay, peer recognition, challlenging work, responsibility, and publicity in company publications. So, managerial practices to fulfill these needs include challenging work assignments, performance feedback, performance recognition, personal encouragement and involving employees in goal setting and decision making.

Self- Actualisation needsIf the above four level needs are satisfied, the need for self-actualisation comes to the forefront. It is the desire to become everything that one is capable of becoming which means to reach the peak of one’s potential.In the organisation, self-actualisation needs correlate with the desire for excelling in one’s job, advancing an important idea, succesfully managing a unit, and the like.

By being aware of the self-actualisation needs of subordinates, managers can use a variety of approaches to enable them to achieve personal as well as organisational goals.Two Factor Theory:

This theory was propounded by Frederick Herzberg and this theory is otherwise known as Dual Factor Theory or Motivation- Hygiene Theory and is widely accepted by managers concerned with the problem of human behaviour at work. The first aspect of this theory stresses on the formally stated theory of work behaviour and the second aspect focuses on job enrichment and job realisation programmes. Herzberg used the critical incident method of obtaining data for analysis and the respondents were asked two questions such as:

When did you feel particularly good about your job andWhen did you feel exceptionally bad about your job?

And the response to this was such that there were two characteristics namely:Job satisfaction and Job dissatisfaction.Intrinsic factors such as achievement, recognition, the work itself, responsibility, advancement and growth seem to be related to job satisfaction. These factors are known as motivators, satisfiers or job- content factors. When questioned about what respondents felt good about their work they would attribute these characteristics to themselves.

When they were dissatisfied they tended to attribute it to extrinsic factors such as company policy and administration, supervision, working conditions, salary, status, security, and interpersonal relations. These factors are otherwise known as dissatisfiers, hygiene factors, maintenance factors, or job- context factors.

According to Herzberg, satisfaction and dissatisfaction are not two opposite poles rather they are two separate dimensions. Satisfaction is affected by motivators and dissatisfaction by hygiene factors.

To achieve motivation, managers should cope with both satisfiers as well as dissatisfiers, improve hygiene factors- dissatisfaction is removed from the minds of the employees and thus a favourable frame of mind is created for motivation. The three terms used in this theory are:Job enlargement – workers being given a greater variety of tasks to perform (not necessarily more challenging) which should make the work more interesting. Job enrichment - involves workers being given a wider range of more complexes, interesting and challenging tasks surrounding a complete unit of work. This should give a greater sense of achievement.

Empowerment means delegating more power to employees to make their own decisions over areas of their working life.

The Hygiene factors are as follows:These are extrinsic in narure and do not motivate people. There are 10 Hygiene factors namely:Company Policy or AdministrationTechnical SupervisionInterpersonal Relationship with superiorsInterpersonal Relationship with peersInterpersonal Relationship with subordinatesSalaryJob SecurityPersonal LifeWorking conditionsStatus

This is how the Two-Factor is explained.

Erg Theory:

This theory was developed by Alderfer and the three letters namely ‘E’, ‘R’ and ‘G’ represent some meaning and they are as follows:a)‘E’ stands for existence, b)‘R’ for relatedness and c)‘G’ for growth

These three sets of needs are the focus of this alternative theory of human needs in organisation.

The ERG theory is an extension of Maslow's hierarchy of needs. Alderfer suggested that needs could be classified into three categories, rather than five. These three types of needs are existence, relatedness, and growth. Existence needs are similar to Maslow's physiological and safety need categories. Relatedness needs involve interpersonal relationships and are comparable to aspects of Maslow's belongingness and esteem needs. Growth needs are those related to the attainment of one's potential and are associated with Maslow's esteem and self-actualization needs. The ERG theory differs from the hierarchy of needs in that it does not suggest that lower-level needs must be completely satisfied before upper-level needs become motivational. ERG theory also suggests that if an individual is continually unable to meet upper-level needs that the person will regress and lower-level needs become the major determinants of their motivation. ERG theory's implications for managers are similar to those for the needs hierarchy: managers should focus on meeting employees' existence, relatedness, and growth needs, though without necessarily applying the proviso that, say, job-safety concerns necessarily take precedence over challenging and fulfilling job requirements. 4) McClelland’s Learned Needs Theory:McClelland's theory suggests that individuals learn needs from their culture and this theory was propounded during the late 1940s. Three of the primary needs in this theory are :i)The need for affiliation (n Aff),ii) The need for power (n Pow), and iii)The need for achievement (n Ach). i)The Need for AffiliationIndividuals exhibiting this need as a dominant motive derive satisfaction from social and interpersonal activities. There is a need to form strong interpersonal ties and to get close to people psychologically.ii)The Need for Power:The employees exhibiting the needs for power derive satisfaction from the ability to control others. Satisfaction is derived from being in positions of influence and control. Organisations that foster a power motive tend to attract individuals with a high need for power (for example, military and political organizations.)iii)The Need for Achievement:

The need for achievement is a desire to take responsibility, set challenging goals, and obtain performance feedback. Succeding at a teask is important to the high achiever. High achievers prefer immediate feedback on their performance, and they generally undertake tasks of moderate difficulty. They dislike tasks with high risks because they get no achievement satisfaction from accidental success. Similarly, they dislike easy tasks as there is no challeneg to their skills. The main point of the learned needs theory is that when one of these needs is strong in a person, it has the potential to motivate behavior that leads to its satisfaction. Thus, managers should attempt to develop an understanding of whether and to what degree their employees have one or more of these needs, and the extent to which their jobs can be structured to satisfy them. Major Process Theories Process (or cognitive) theories of motivation focus on conscious human decision processes as an explanation of motivation. The process theories are concerned with determining how individual behavior is energized, directed, and maintained in the specifically willed and self-directed human cognitive processes. Process theories of motivation are based on early cognitive theories, which posit that behavior is the result of conscious decision-making processes. The major process theories of motivation are expectancy theory, equity theory, goal-setting theory, and reinforcement theory. Vroom’s Expectancy Theory:In the early 1960s, Victor Vroom applied concepts of behavioral research conducted in the 1930s by Kurt Lewin and Edward Tolman directly to work motivation. The other names for this theory are Instrumentality Theory, Path- goal Theory and Valence- Instrumentality- Expectancy Theory. Basically, Vroom suggested that individuals choose work behaviors that they believe lead to outcomes they value. In deciding how much effort to put into a work behavior, individuals are likely to consider: Their expectancy, meaning the degree to which they believe that putting forth effort will lead to a given level of performance. Their instrumentality or the degree to which they believe that a given level of performance will result in certain outcomes or rewards. Their valence, which is the extent to which the expected outcomes are attractive or unattractive. All three of these factors are expected to influence motivation in a multiplicative fashion, so that for an individual to be highly motivated, all three of the components of the expectancy model must be high. And, if even one of these is zero (e.g., instrumentality and valence are high, but expectancy is completely absent), the person will have not motivation for the task. Thus, managers should attempt, to the extent possible, to ensure that their employees believe that increased effort will improve performance and that performance will lead to valued rewards. Vroom’s Valence x Expectancy theory:The most widely accepted explanations of motivation have been propounded by Victor Vroom. His theory is commonly known as expectancy theory. The theory argues that the strength of a tendency to act in a specific way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual to make this simple, expectancy theory says that an employee can be motivated to perform better when

there is a belief that the better performance will lead to good performance appraisal and that this shall result into realization of personal goal in form of some reward. Therefore an employee is:Motivation = Valence x Expectancy. The theory focuses on three things:Efforts and performance relationshipPerformance and reward relationshipRewards and personal goal relationshipThis leads us to a conclusion that:

Motivation (M), Expectancy (E), Instrumentality (I) and Valence (V) are related in this manner:M= E* I* VIf E, I or V is low, motivation is said to be low

Adam’s Equity Theory:Equity theory suggests that individuals engage in social comparison by comparing their efforts and rewards with those of relevant others. The perception of individuals about the fairness of their rewards relative to others influences their level of motivation. Equity exists when individuals perceive that the ratio of efforts to rewards is the same for them as it is for others to whom they compare themselves. Inequity exists when individuals perceive that the ratio of efforts to rewards is different (usually negatively so) for them than it is for others to whom they compare themselves. There are two types of inequity—under-reward and over-reward. Under-reward occurs when a person believes that she is either puts in more efforts than another, yet receives the same reward, or puts in the same effort as another for a lesser reward. For instance, if an employee works longer hours than her coworker, yet they receive the same salary, the employee would perceive inequity in the form of under-reward. Conversely, with over-reward, a person will feel that his efforts to rewards ratio is higher than another person's, such that he is getting more for putting in the same effort, or getting the same reward even with less effort. While research suggests that under-reward motivates individuals to resolve the inequity, research also indicates that the same is not true for over-reward. Individuals who are over-rewarded often engage in cognitive dissonance, convincing themselves that their efforts and rewards are equal to another's.

According to the equity theory, individuals are motivated to reduce perceived inequity. Individuals may attempt to reduce inequity in various ways. A person may change his or her level of effort; an employee who feels under-rewarded is likely to work less hard. A person may also try to change his or her rewards, such as by asking for a raise. Another option is to change the behavior of the reference person, perhaps by encouraging that person to put forth more effort. Finally, a person experiencing inequity may change the reference person and compare him or herself to a different person to assess equity. For managers, equity theory emphasizes the importance of a reward system that is perceived as fair by employees.

Porter’s Performance Model: In the late 1960s, Porter and Lawler published an extension of the Vroom expectancy model, which is known as the Porter-Lawler expectancy model or simply the Porter-Lawler model. Although the basic premise of the Porter-Lawler model is the same as for Vroom's model, the Porter-Lawler model is more complex in a number of ways. It suggests that increased effort does not automatically lead to improved performance because individuals may not possess the necessary abilities needed to achieve high levels of performance, or because they may have an inadequate or vague perception of how to perform necessary tasks. Without an understanding of

how to direct effort effectively, individuals may exert considerable effort without a corresponding increase in performance.

Actual performance in a job is primarily determined by the effort spent. But it is also affected by the person’s ability to do the job and also by individual’s perception of what the required task is. So performance is the responsible factor that leads to intrinsic as well as extrinsic rewards. These rewards, along with the equity of individual leads to satisfaction. Hence, satisfaction of the individual depends upon the fairness of the reward.

Goal-setting Theory:The goal-setting theory posits that goals are the most important factors affecting the motivation and behavior of employees. This motivation theory was developed primarily by Edwin Locke and Gary Latham. Goal-setting theory emphasizes the importance of specific and challenging goals in achieving motivated behavior. Specific goals often involve quantitative targets for improvement in a behavior of interest. Research indicates that specific performance goals are much more effective than those in which a person is told to "do your best." Challenging goals are difficult but not impossible to attain. Empirical research supports the proposition that goals that are both specific and challenging are more motivational than vague goals or goals that are relatively easy to achieve. Several factors may moderate the relationship between specific and challenging goals and high levels of motivation. The first of these factors is goal commitment, which simply means that the more dedicated the individual is to achieving the goal, the more they will be motivated to exert effort toward goal accomplishment. Some research suggests that having employees participate in goal setting will increase their level of goal commitment. A second factor relevant to goal-setting theory is self-efficacy, which is the individual's belief that he or she can successfully complete a

particular task. If individuals have a high degree of self-efficacy, they are likely to respond more positively to specific and challenging goals than if they have a low degree of self-efficacy.

Reinforcement Theory. This theory can be traced to the work of the pioneering behaviorist B.F. Skinner. It is considered a motivation theory as well as a learning theory. Reinforcement theory posits that motivated behavior occurs as a result of reinforcers, which are outcomes resulting from the behavior that makes it more likely the behavior will occur again. This theory suggests that it is not necessary to study needs or cognitive processes to understand motivation, but that it is only necessary to examine the consequences of behavior. Behavior that is reinforced is likely to continue, but behavior that is not rewarded or behavior that is punished is not likely to be repeated. Reinforcement theory suggests to managers that they can improve employees' performance by a process of behavior modification in which they reinforce desired behaviors and punish undesired behaviors. Other theories include:Rensis Likert:Likert developed a refined classification, breaking down organizations into four management systems namely:1st System- Primitive- Authoritarian2nd System-Benevolent- Authoritarian3rd System-nil- Consultative4th System-nilAs per the opinion of Likert, the 4th system is the best, not only for profit organizations, but also for non-profit firms.2) “Theory X and Theory Y” of Douglas McGregor:McGregor, in his book “The Human side of Enterprise” states that people inside the organization can be managed in two ways. The first is basically negative, which falls under the category X and the other is basically positive, which falls under the category Y. After viewing the way in which the manager dealt with employees, McGregor concluded that a manager’s view of the nature of human beings is based on a certain grouping of assumptions and that he or she tends to mold his or her behavior towards subordinates according to these assumptions.

Under the assumptions of theory X:Employees inherently do not like work and whenever possible, will attempt to avoid it.Because employees dislike work, they have to be forced, coerced or threatened with punishment to achieve goals.Employees avoid responsibilities and do not work fill formal directions are issued.Most workers place a greater importance on security over all other factors and display little ambition.

In contrast under the assumptions of theory Y:

Physical and mental effort at work is as natural as rest or play.People do exercise self-control and self-direction and if they are committed to those goals.Average human beings are willing to take responsibility and exercise imagination, ingenuity and creativity in solving the problems of the organization.

That the way the things are organized, the average human being’s brainpower is only partly used.On analysis of the assumptions it can be detected that theory X assumes that lower-order needs dominate individuals and theory Y assumes that higher-order needs dominate individuals. An organization that is run on Theory X lines tends to be authoritarian in nature, the word “authoritarian” suggests such ideas as the “power to enforce obedience” and the “right to command.” In contrast Theory Y organizations can be described as “participative”, where the aims of the organization and of the individuals in it are integrated; individuals can achieve their own goals best by directing their efforts towards the success of the organization.However, this theory has been criticized widely for generalization of work and human behavior.3) Cognitive Evaluation Theory:   As per this theory a shift from external rewards to internal rewards results into motivation. It believes that even after the stoppage of external stimulus, internal stimulus survives. It relates to the pay structure in the organization. Instead of treating external factors like pay, incentives, promotion etc and internal factors like interests, drives, responsibility etc, separately, they should be treated as contemporary to each other. The cognition is to be such that even when external motivators are not there the internal motivation continues. However, practically extrinsic rewards are given much more weightage.These are the various theories of Motivation which has its own advantages and disadvantagesCHAPTER-6MAJOR DECISION IN HR DEPARTMENTHuman resource has become an increasingly challenging and complex area today. There is cutthroat competition among various organizations and the process is becoming affected by technology and ever-changing policies/regulations. Mentioned below are some issues that the human resource department has to face in the current scenario.

Hiring

You need the best people for delivering the better results. You can plan the recruitment process with the inputs from recruitment staff of the organization. The recruiter should ask himself the question whether new people are really required. Can the need be met by streamlining the process or restructuring the organization? The attitude of a person is a critical matter while hiring. This is measured by using psychometric tests. You should have a competitive salary range for the position. List out the attributes you are looking for a potential employee. Educational qualifications, relevant experience, certifications, ability to work in a team,

leadership qualities are some of the possible attributes. Your mode of advertisement for a position should be such that it attracts the best and brightest. Recruiting through the internet is the latest technological trend. We now have an international pool of possible candidates. You have to schedule and hold interviews. There could be telephonic screening. There should be background checks to verify employment history and determining whether the candidate has a criminal history.

Promotion

Promotion within an organization could be a tricky issue. Different employees have usually different perspectives on their performance and expectations. It is important for the promotion process should be fair, transparent and systematic. One should go out of the way to reassure the overlooked employees. 

Employee Relations

A safe, supportive, and productive work environment should be created and maintained. Establishing policies and procedures in itself is not enough. One should implement them consistently, fairly, and promptly. There should exist employee handbooks and policy manuals. Policies workplace issues such as sexual harassment, drug and alcohol abuse, and violence should be clearly spelled out. The organization should be compliant with existing legislative and regulatory requirements.

Compensation

The compensation should be competitive in the market and commensurate with the job profile

and the efforts the employee puts in. Compensation determination should be a systematic and transparent process. The right compensation will attract and retain the required employees. There should be contingency measures to protect the employees and their families from injury, illness or death. 

Training and Retraining

The newly hired employees may not have the required job skills or knowledge about the organization culture. The objective should be to impart domain knowledge and necessary issues, which would come into play. Sometimes retraining is required to restore forgotten skills or for enhancing existing skills and acquiring new ones.

Employee Retention

This is a very important issue for organization. Attrition usually adversely affects the company. The job should ideally be challenging and interesting with adequate monetary benefits. Comprehensive and systematic exit interviews could determine the cause of attrition. There could be special incentives for employer loyalty. Reasons for leaving could be lack of career growth opportunities, lack of appreciation, a more attractive job offer or stress from overwork.

Firing Employees

Incompetent or non-performing individuals have to be dismissed. One should not retain employees who engage in anti-social, criminal or any activities, which is detrimental to the organization's reputation. For maintaining the reputation of the organization they should communicate clearly the grounds of dismissal and adequate notice period.

Managing Mergers

This can be a pretty complicated matter. There exist many barriers to smooth mergers of organizations. There could be a difference in technologies among the respective organizations. If the company acquired is a foreign one there could be language and cultural barriers. The interests of the stakeholders must be taken into consideration. Retention of key employees and cultural integration are the among the critical issues. The transition process should be smooth and efficient. The human resources department should be included in all decision-making right from the start to the end.

These were some issues that pose a challenge to the human resource managers. But, there are some ways in which these challenges can be dealt with. The need is to have a comprehensive HR policy in place so that the organization doesn't lose out on its stellar employeesMajor Decision Points in Job AnalysisBefore advertising or posting a position opening, employers analyze job tasks and establish minimum criteria to select viable candidates. Using a formal job analysis process ensures that employment decisions focus on job requirements and not on individual attributes, such as sex, race or age. The results of job analysis specify required knowledge, skills and abilities for the job, as well as driving organizational decisions on compensation, performance evaluation and internal promotions.Value to EmployersJob analysis helps employers select candidates for a position who are likely to succeed in meeting major job requirements. Most of the decision points resulting from job analysis provide measurable criteria to differentiate among candidates. In addition to its central role in hiring decisions, job analysis provides valuable information to help identify employer-based training needs and evaluate employee performance. Using a formal job analysis as the basis for employee selection and promotion may protect employers from charges of discrimination.Job Analysis Procedures

Job analysis begins with a position description that lists the most important tasks associated with the position. Interviews with individuals currently employed in similar jobs and criteria from management and subject matter experts help refine the job description and provide details on required knowledge, skills and abilities. The first decision point in job analysis requires subject matter experts to rank each job task in terms of importance and frequency. The second major decision point establishes required job competencies.

Applicant Decision PointsThree major decision points, based on job analysis, specify minimum and quality factors used in employment consideration. These decision points include required level of educational achievement, years of related experience and physical abilities needed. For example, a position may require completion of an advanced degree in an appropriate field or physical abilities to lift 40 pounds. The job analysis ensures that the education, experience and physical requirements tie directly to job tasks.Employer FactorsEmployers make two other major decisions about positions based job analysis. The employer decides the appropriate level or range of compensation for the position and the placement of the position within the organization’s structure. Using the job analysis, compensation for jobs with similar entry requirements and responsibilities but in different organizational departments can be compared for parity. Placing a position at the right level within an organization supports career planning, by making advancement criteria transparent. For example, an organization will have different experience requirements for the position of entry-level accountant, general accountant and senior accountantCost-cutting is common but not critical in outsourcing decisions, major survey of human resource executives findsWhile employers commonly assess costs when outsourcing HR functions, cost issues are not among the two top drivers of outsourcing decisions, according to a major survey released today by BNA, Inc. (The Bureau of National Affairs, Inc.)The annual survey of over 900 human resource executives finds that access to greater expertise (69 percent) and improvement in service quality (44 percent) are cited as the two most important reasons for outsourcing HR functions. In contrast, just 28 percent of respondents include cost-cutting among their top tier reasons for choosing outside firms to handle flexible spending accounts, benefit plan administration, employee assistance counseling, and many other HR activities."Too much emphasis on the cost of administering programs can be short- sighted when choosing to outsource," said Joshua Joseph, Director of Research at BNA. "Thoughtful employers recognize that money saved by outsourcing at the HR department level means little if service problems end up costing them more elsewhere." The survey findings build on past HR studies by further clarifying the relationship between outsourcing and cost. Special attention to HR outsourcing is warranted because consequences often directly affect employees who in turn serve customers and other stakeholders.

Measuring net cost savings from outsourced HR activities remains a key challenge for employers, as 44 percent of those surveyed say cost savings are "undetermined." This finding partly reflects the fact that some activities (e.g., employee assistance counseling) have never been handled in-house by most employers, giving no baseline to compare costs. However, lack of resources and insufficient evaluation expertise can also hamstring employers that do have comparative data available.Adding significance to outsourcing decisions, the 2004 survey finds that fewer than one in 10 HR executives have ever brought an outsourced activity back in-house. This is the case whether such initiatives are viewed as successful or disappointing. The fact that HR outsourcing is almost always a "one-way street" reinforces the need to thoroughly vet the credentials and suitability of outside vendors.Overall, the survey results suggest that outsourcing is here to stay. Two-thirds of HR departments (67 percent) use outside vendors to handle at least one of their activities, compared with fewer than six in 10 in the late 1990s. The trend toward outsourcing is most prevalent among larger organizations (those with more than 2,500 workers) that have both the demand and resources to provide a full range of employee benefits and services. Smaller organizations, which typically offer fewer HR benefits and services, have correspondingly fewer activities to outsource.The top HR activities outsourced by employers in 2004 include employee assistance counseling (34 percent), flexible spending account administration (28 percent), pre-retirement counseling (25 percent), and outplacement services (22 percent).In general, HR executives surveyed report high levels of satisfaction with outsourcing. Seventy-eight percent can readily identify an initiative that "exceeds expectations," while only about 30 percent can cite one that "falls short of expectations." More specific outcomes, such as quality of service and cost savings are influenced by a variety of factors, including the number of years since an activity was outsourced, how much of an activity is "off- loaded," and employer motives for outsourcing. As an example, employers that have outsourced activities for longer periods of time tend to be more satisfied with vendor quality of service.Interestingly, the survey finds that employers motivated mainly by cost savings are sometimes more disappointed with outsourcing results than are those with other motives. For example, among employers that outsource flexible spending account administration, those driven by cost savings are more often disappointed with the initiative (59 percent) than those citing service quality and expertise (36 percent).HR Department Benchmarks and Analysis 2004 is a comprehensive, national survey of human resource departments that was conducted between April 12, 2004, and May 7, 2004. The survey report presents findings on outsourcing, strategy and measurement, staffing, and expenditures and budgets. Respondents were 943 human resource executives representing a broad cross section of U.S. employers. This year's survey was conducted with oversight from a volunteer panel of experts consisting of HR vice presidents at major companies, leading academic researchers, and established consultantsWhen we talk about HRM activities, we tend to focus on what the HR office, itself, is doing even

though we recognize that supervisors would bear the responsibility of HR decisions in an idealworld. After all, NPR advocated deregulation and delegation and the downsizing and outsourcing of HR office activities so that human resources management could take place at the linelevel, making it more responsive to mission-related needs. Additionally, the HR staff would beable to devote more time to broader organizational issues, thereby improving its contribution tomission accomplishment.Unfortunately, deregulation and delegation, as reported in OPM’s 1997 special study, Deregulation and Delegation of Human Resources Management Authority in the Federal Government,have not taken hold as quickly or thoroughly as was hoped. HR is still doing most of the HRrelated work and is the nerve center for HRM activities. That is why the focus of this section ison the HR office and what it does to support mission accomplishment. So what are HR’s contributions toward mission accomplishment? Although most line managerswe interviewed cannot describe precisely which HR activities support specific agency strategicgoals, they recognize that they could not accomplish their mission without HR’s help. Ironically,the areas most often mentioned by managers as HR’s most valued contributions are also the areasthey feel need the most improvement: recruitment and staffing, employee development, andemployee relations. They would like to see HR become more involved and innovative in theseareas, but they also admit that it would be extremely difficult for them to get their jobs donewithout the help HR already provides. Clearly, staffing, development, and employee relations are important HR activities that make difference to agency goal accomplishment. However, there are other areas in which HR offices contribute to and align with mission accomplishment, such as the few described below. Agency Reorganizations: Because of all of the downsizing, streamlining, and budget cutsthat have been occurring in recent years, many agencies and sub-components have had to redefine their missions and restructure the program areas that support those missions. Human resources staffs play key roles in some of these redesign efforts. Managers at the Federal Emergency Management Agency and the Department of Labor’s Occupational Safety and Health Administration were particularly complimentary of all of the work the HRstaffs did to redeploy and retrain the workforce, provide guidance on organizational development issues, and redesign performance standards. Workforce Planning: In this time of budget cuts, downsizing, and an aging Federal workforce, workforce planning becomes extremely important to increasing agencies’ overall ability to achieve their missions. Although few agencies have strong workforce planning systems in place, some are beginning to take steps in this direction. The Department of the Army has an automated civilian forecasting system that uses 15-year workforce data trend sto project future employment patterns, up to 7 years. This is part of a developing workforce planning initiative. SSA has developed a methodology to predict the number of actual retirements and is developing a workforce transition plan that will identify current and future required skill sets, determine how the workforce can obtain these skills, and set action plan milestones. Additionally, OPM is in the process of developing a workforce planning model that

will assist agencies in this area Linking Performance Management to Mission Accomplishment: When managers and employees are interviewed, they almost always cite the performance management system as a way they are held countable for meeting agency goals. So, does this mean performance management systems are aligned with agency strategic goals? In most agencies, the answer is “not yet” -- at least not fully. Recently published research has identified over a dozen agencies and agency subcomponents that have started to formulatesystematic approaches to aligning performance management to strategic goals. Most are starting by linking top management performance plans and contracts to agency goals and rating and rewarding executives based on achievement of those goals. Many of these agencies are planning to cascade the alignment down to the employee level. OPM’s 1999 publication, A Handbook for Measuring Employee Performance: Aligning Employee Performance with Organizational Goals, is a very useful tool to help agencies link employee performance to the goals of the organization and measure employee accomplishments. A couple of agencies actually mandate the linkage of employee level plans to agency goals, while others are using team-based performance management approaches that include performance targets, informal team assessments, and awards that are linked to mission goals. The National Aeronautics and Space Administration (NASA), as shown in the inset, actually has an automated system that assists in the linkage. Nevertheless, as the General Accounting Office (GAO) concluded in its study, Performance Management: Aligning Employee Performance with Agency Goals at Six Results Act Pilots, aligning performance management systems with organizational missions and goals is still a “work in progress.” HR Self-Assessment: A handful of agency and sub-component HR offices are actually HR Self-Assessment: A handful of agency and sub-component HR offices are actually assessing how well their programs align with agency mission accomplishment as part of recently established HR self-assessment programs. These assessment programs focus on the compliance of HR activities with law as well as how effectively HR programs are achieving their objectives in support of mission accomplishment. Because these assessment programs are fairly new or are in the process of being revamped, it is too soon to tell the success they will have in measuring HR’s impact on organizational mission accomplishment. HRM MeasurementIn the end, HR can only determine its value to the organization by measuring it. Earlier in this report, we saw that most agencies had at least defined HR output measures in agency strategic plans, annual performance plans, and/or HR strategic plans. This is an encouraging trend, but we need to look further at whether these measures are actually being tracked and used for decision making. The best measures in the world are meaningless if not used.HRM measures in the strategic and annual performance plans are usually tracked by the HR office and forwarded to the planning office for distribution and sharing of the information. A few agencies, such as NASA, SSA, and Education, report actually using the information for decision making and tracking whether goals are being met. NASA even posts the information on

its web page. However, we found that most agencies look at available data without really evaluating how the information can be used to enhance goal attainment. HR staffs find that measures from HR strategic plans tend to be more useful than those in theAgency strategic or annual plans, at least at the functional level. As discussed earlier, HR strategic plan measures tend to focus on internal HR programs, policies, and processes, and can therefore point to deficiencies in these areas. HR officials can then use this information to make improvements to the problem areas. From an organizational perspective, however, the measures are generally not very helpful in determining achievement of HR goals because they are process rather than outcome oriented. Few agencies have implemented elaborate systems to track HRM goals and measures. Nonetheless, there are quite a few interesting approaches some agencies are using to measure theirHRM performance.Benchmarking is a systematic process of measuring an organization’s products, services, and practices against those of a like organization that is a recognized leader in the studied area. Many Federal HR offices are using this practice to identify ways to improve service and align with business results. The most common benchmarking effort Federal HR offices have participated in is the National Academy of Public Administration-Hackett Group HR Benchmarking Study. There are at least 19 Government agencies involved in the benchmarking of 22 HR processes within four areas: administration, risk management, employee development, and decision support. The study also helps to gauge HR alignment through decision support categories such as resource planning, organizational planning, and strategic HR planning. Most participating agencies see the value in the information but have not devised strategies for how to use it. The Balanced Scorecard is a framework many agencies are using to translate strategy into operational terms by measuring a full range of perspectives: financial, customer, internal, and learning and growth. Vice-president Gore advocated the use of this type of balanced set of results to evaluate agency performance at the Global Forum on Reinventing Government, January 1999. The scorecard is generally used at the business unit level, as with the Veterans Benefits Administration (see insert). To date, most agencies are in the beginning stages of implementing balanced measurement approaches. Activity Based Costing (ABC) is a method of cost management that determines the true cost, including overhead, for a service or product. Finding the true cost allows agencies to discover cost improvement opportunities, prepare and actualize strategic and operational plans, and improve strategic decision-making. This cost management methodology involves identifying activities, determining activity costs, determining cost drivers, collecting activity data, andcalculating the service cost. ABC is being explored by a number of agencies. The Patent and Trademark Office is usingABC agency wide, and the General Services Administration is using it to determine HR costs,as described on the following page The Malcolm Baldrige and the President’s Quality Award Criteria are each based on set of core values and concepts that integrate key business

requirements into results-oriented framework. Using the criteria as a framework for management practices and measurement can help agencies to improve performance, facilitate communication and best practice sharing, and serve as a tool for managing performance, planning, training, and assessment. HR measures are 15 percent of the total Baldrige framework score. Several 4 agencies, most notably the Department of Navy’s Inspector General’s Office, have successfully used the criteria to assess agency mission programs.Corporate HR and Top Agency Management The relationship between corporate HR and top agency management varies greatly by agency. A few agencies, like SSA, NASA, Air Force, and GSA, have been able to develop strong working relationships with management in which HR is a full member of the agency decision-making body. Most other agency HR executives have not been so fortunate. They are generally brought into the agency decision-making process during the implementation phase rather than being consulted in the beginning on how decisions may impact agency human resources or vice versa. For some agencies, it has been a hard road “getting to the table.” For others, it has been more of a natural transition. In exploring how to elevate HR’s role to management partner, agencies where this has been achieved attribute their success to a combination of the following factors: Reporting relationships - In agencies where there is a direct reporting relationship between the head of HR and the head of the agency, HR generally has a more visible role in agencydecision-making.Management advocates - In agencies where there is a strong HR advocate in senior management, HR enjoys more involvement in the agency decision-making. Credibility - HR representatives who are formerly program managers tend to earn more credibility from the other managers. This type of individual knows, first hand, what the program concerns are and how HR decisions will impact the program, and can speak the same programmatic language. Culture - In some agency traditionally been part of the culture. Therefore, it is natural for the HR leader to have a voice in agency decisions.Value - In all cases, HR has to bring value to the discussion in order to be considered a member of the management team. If you have little or nothing to offer, you will not keep your seat at the table. Because HR executives have little control over agency reporting relationships, management advocacy, executive appointments, and agency culture, they need to focus their efforts on providing value to agency business discussions. But what kind of value can HR bring to the agency decision-making table? Other corporate functions have no problem demonstrating their value. The Chief Financial Officer has the money. The Chief Information Officer has the technology. Without money and technology, an organization is severely hindered. But HR has the people, and without the people, the organization has no one to do the work. So why has HR not been able to capitalize on this strength? We were able to identify two reasons.First, HR has not historically had the statistics or data that can excite management and show how HRM influences agency success. Second, HR has focused on internal operations rather than activities that impact the entire agency. These facts are recognized by the Strategic Human Resources Roundtable, an OPM-sponsored working group of Government wide HR Directors that meets periodically to discuss HR’s role in GPRA. This group acknowledges that to address

these shortcomings, HR needs to ask itself what are the HRM concerns that will gain management’s attention, and does HR have the data that can help address those concerns? SSA has done this, as is demonstrated in the above inset. The HR Office and Line Management es, the recognition that its people are its most important asset has Now that we have explored the relationship between HR executives and top agency managers, we need to look at how the HR office interacts with its line managers and if there has been any movement toward a more cooperative, consultative relationship. HR’s role is changing, but is HR changing with it? As discussed earlier, NPR advocated HR delegating, downsizing, and outsourcing so that it could start concentrating on broader organizational issues rather than transactional processes. As we have seen, this is beginning to occur at the corporate level, but what about the line level? The problem is that delegation to managers has not taken hold very quickly, but HR offices have already been downsized. Therefore, HR is still expected to do the transactional work it did before, while also focusing on broader organizational issues, and doing all of this with an average of 20 percent less staff. It is not hard to understand why agency HR offices are struggling to 5 redefine their role to strategic partner. Just how far have they gotten? HR as Consultant: Most agency managers we interviewed acknowledge that their HR office has become more consultative. Rather than telling a manager he/she can or cannot do something, HR professionals are more helpful in finding solutions to HR issues. HR as Contributor to Mission Accomplishment:These same managers also recognize the importance of the HR office to mission accomplishment. There is so much that HR does for managers in terms of recruitment and staffing, employee development, and employee relations that managers would have difficulty doing it on their own. However, HR does have its limitations, particularly the size of the staff in relation to the amount of work it has to do, its knowledge of the mission, and skill gaps resulting from downsizing. HR as Strategic Partner: Few, if any, agency managers feel that their HR office is a true strategic partner. Few HR offices are included in business planning from the beginning, generally being brought in to implement a decision that has already been made. For HR to become more involved in line-level decision-making, managers would like the office to: C have greater knowledge of the organizational mission, and C get more involved and innovative in broad, organizational HR issues that impactmost on the organization, such as recruitment and workforce and succession planning. HR has made some headway, as demonstrated in the following NASA example, but clearly has some distance to go in being involved in line management decision-making. Now let’s look at the other side of the coin -- how managers are involved in making decisions about HR programs. Most line HR offices involve managers at least at an informal level, generally through satisfaction surveys or informal discussions. A few have HR/management councils that get together periodically to discuss human resources issues. This is as close as agencies get to real integration of managers into the HR program decision-making process. Generally, managers do

not feel that they have a large impact on the direction of HR programs and therefore feel little ownership for them. AccountabilityWith the developing relationship between HR and management, both at the top and line levels, along with NPR and GPRA mandates, accountability should become a shared responsibility. Managers are making more and more HRM decisions while the HR staff is becoming more involved in broader organizational issues. This means that both the HR staff and managers are ultimately accountable for effective, legally compliant HRM. Is this shared accountability occurring in Federal agencies? Approximately half of the responding agencies agree that HRM accountability is shared between the HR staff and managers. Managers are accountable for the business results achieved through good human resources management, theHR staff is accountable for HR compliance, and both are accountable for the overall effectiveness of the agency HRM program. However, the other half still feels that the ultimate accountability falls on the HR staff. They are the ones responsible if actions are found non-compliant, and little attention is given to whether managers’ HRM decisions are an effective use of resources. OPM’s HRM Accountability System Development Guide goes into quite a bit of detail on shared accountability and can assist agencies in understanding the concept, determining who is accountable for what, and devising strategies for how to hold them accountable.

CHAPTER 7Employee Welfare

Definitions of Employee Welfare

“Employee Welfare means anything done for the comfort and improvement, intellectual and social of employee or and above the wages paid which is not a necessary for the industry.”

Employee or labour welfare is a comprehensive term including various services, benefits and facilities offered to employees by the employer. Through such generous fringe benefits the employer makes life worth living for employees. The welfare amenities are extended in addition to normal wages and other economic rewards available to employees as per the legal provisions. According to Dr. Parandikar, “Labour welfare work is work for improving the health, safety and general well being and the industrial efficiency of the workers beyond the minimum standard laid down by labour legislation” Welfare measures may also be provided by the government, trade unions and non-government agencies in addition the employer. The basic purpose of labour welfare is to enrich the life of employees and keep them happy and contented. Welfare measures may be both statutory and voluntary. Labour laws require the employer to extend certain benefits to employees in addition to wages. Voluntary benefits are the result of employer’s generosity, enlightenment and philanthropic feelings.

MEANING OF EMPLOYEE WELFAREAccording to the Oxford dictionary employee welfare or labour welfare means “the efforts to make life worth living for workmen”. 

According to the Labour Investigation Committee (1946), employee welfare means “anything done for intellection physical, moral and economic betterment of the workers, whether by employers, by Government or by other agencies, over and above what is laid down by law, or what is normally expected on the part of the contracted benefits for which workers may have bargained”.

FEATURES OF EMPLOYEE WELFARE=> Employee welfare is a comprehensive term including various services, facilities and amenities provided to employees for their betterment. => Employee welfare is a dynamic concept varying from country to country and from region to region within the same country. It is a flexible and ever changing concept as new welfare measures are added to the existing measures from time to time. => Welfare measures are in addition to regular wages and other economic benefits available to employees under legal provisions and collective bargaining. => Welfare measures may be provided not only by employers but by the government, trade unions and other agencies too. => The basic purpose of employee welfare is to improve the working class a lot and thereby make the worker as a good employee and a happy citizen. => Employee welfare is an essential part of social welfare. It involves adjustment of an employee’s work life and family life to the community or social life. => Welfare measures may be both voluntary and statutory. Voluntary measures are the result of paternalistic and philanthropic feelings of employer. These may also be provided due to customs or traditions in the particular industry or region. Statutory measures are prescribed under labour laws. => Employee welfare measures are also known as fringe benefits and services. 

Organizations provide welfare facilities to their employees to keep their motivation levels high. The employee welfare schemes can be classified into two categories viz. statutory and non-statutory welfare schemes. The statutory schemes are those schemes that are compulsory to provide by an organization as compliance to the laws governing employee health and safety. These include provisions provided in industrial acts like Factories Act 1948, Dock Workers Act (safety, health and welfare) 1986, Mines Act 1962. The non

statutory schemes differ from organization to organization and from industry to industry.

Employee welfare is a comprehensive term including various services, benefits and facilities offered to employees & by the employers. Through such generous fringe benefits the employer makes life worth living for employees.”

Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages. Welfare helps in keeping the morale and motivation of the employees high so as to retain the employees for longer duration. The welfare measures need not be in monetary terms only but in any kind/forms. Employee welfare includes monitoring of working conditions, creation of industrial harmony through infrastructure for health, industrial relations and insurance against disease, accident and unemployment for the workers and their families.

Employee welfare entails all those activities of employer which are directed towards providing the employees with certain facilities and services in addition to wages or salaries.

The very logic behind providing welfare schemes is to create efficient, healthy, loyal and satisfied labor force for the organization. The purpose of providing such facilities is to make their work life better and also to raise their standard of living. The important benefits of welfare measures can be summarized as follows: 

• They provide better physical and mental health to workers and thus promote a healthy work environment• Facilities like housing schemes, medical benefits, and education and recreation facilities for workers’ families help in raising their standards of living. This makes workers to pay more attention towards work and thus increases their productivity.• Employers get stable labor force by providing welfare facilities. Workers take active interest in their jobs and work with a feeling of involvement and participation.• Employee welfare measures increase the productivity of organization and promote healthy industrial relations thereby maintaining industrial peace.• The social evils prevalent among the labors such as substance abuse, etc are reduced to a greater extent by the welfare policies.

STATUTORY WELFARE SCHEMES

The statutory welfare schemes include the following provisions:Drinking Water: At all the working places safe hygienic drinking water should be provided.Facilities for sitting: In every organization, especially factories, suitable seating arrangements are to be provided.First aid appliances: First aid appliances are to be provided and should be readily assessable so that in case of any minor accident initial medication can be provided to the needed employee.Latrines and Urinals: A sufficient number of latrines and urinals are to be provided in the office and factory premises and are also to be maintained in a neat and clean condition.Canteen facilities: Cafeteria or canteens are to be provided by the employer so as to provide hygienic and nutritious food to the employees.Spittoons: In every work place, such as ware houses, store places, in the dock area and office premises spittoons are to be provided in convenient places and same are to be maintained in a hygienic condition.Lighting: Proper and sufficient lights are to be provided for employees so that they can work safely during the night shifts.Washing places: Adequate washing places such as bathrooms, wash basins with tap and tap on the stand pipe are provided in the port area in the vicinity of the work places.Changing rooms: Adequate changing rooms are to be provided for workers to change their cloth in the factory area and office premises. Adequate lockers are also provided to the workers to keep their clothes and belongings.Rest rooms: Adequate numbers of restrooms are provided to the workers with provisions of water supply, wash basins, toilets, bathrooms, etc. NON STATUTORY SCHEMES

Many non statutory welfare schemes may include the following schemes:Personal Health Care (Regular medical check-ups): Some of the companies provide the facility for extensive health check-upFlexi-time: The main objective of the flextime policy is to provide opportunity to employees to work with flexible working schedules. Flexible work schedules are initiated by employees and approved by management to meet business commitments while supporting employee personal life needsEmployee Assistance Programs: Various assistant programs are arranged like external counseling service so that employees or members of their immediate family can get counseling on various matters.Harassment Policy: To protect an employee from harassments of any kind, guidelines are provided for proper action and also for protecting the aggrieved employee.Maternity & Adoption Leave – Employees can avail maternity or adoption leaves. Paternity leave policies have also been introduced by various companies.Medi-claim Insurance Scheme: This insurance scheme provides adequate insurance

coverage of employees for expenses related to hospitalization due to illness, disease or injury or pregnancy. Employee Referral Scheme: In several companies employee referral scheme is implemented to encourage employees to refer friends and relatives for employment in the organization

Welfare includes anything that is done for the comfort and improvement of employees and is provided over and above the wages. Welfare helps in keeping the morale and motivation of the employees high so as to retain the employees for longer duration. The welfare measures need not be in monetary terms only but in any kind/forms. Employee welfare includes monitoring of working conditions, creation of industrial harmony through infrastructure for health, industrial relations and insurance against disease, accident and unemployment for the workers and their families.

Labor welfare entails all those activities of employer which are directed towards providing the employees with certain facilities and services in addition to wages or salaries.

Labor welfare has the following objectives: To provide better life and health to the workersTo make the workers happy and satisfiedTo relieve workers from industrial fatigue and to improve intellectual, cultural and material conditions of living of the workers. The basic features of labor welfare measures are as follows:Labor welfare includes various facilities, services and amenities provided to workers for improving their health, efficiency, economic betterment and social status.Welfare measures are in addition to regular wages and other economic benefits available to workers due to legal provisions and collective bargainingLabor welfare schemes are flexible and ever-changing. New welfare measures are added to the existing ones from time to time.Welfare measures may be introduced by the employers, government, employees or by any social or charitable agency.The purpose of labor welfare is to bring about the development of the whole personality of the workers to make a better workforce. The very logic behind providing welfare schemes is to create efficient, healthy, loyal and satisfied labor force for the organization. The purpose of providing such facilities is to make their work life better and also to raise their standard of living. The important benefits of welfare measures can be summarized as follows: They provide better physical and mental health to workers and thus promote a

healthy work environmentFacilities like housing schemes, medical benefits, and education and recreation facilities for workers’ families help in raising their standards of living. This makes workers to pay more attention towards work and thus increases their productivity.Employers get stable labor force by providing welfare facilities. Workers take active interest in their jobs and work with a feeling of involvement and participation.Employee welfare measures increase the productivity of organization and promote healthy industrial relations thereby maintaining industrial peace.The social evils prevalent among the labors such as substance abuse, etc are reduced to a greater extent by the welfare policies

WELFARE includes anything that is done for the comfort & the improvement of employees & is provided over & above the wages. Welfare helps in keeping the morale & motivation of the employees high so as to retain the employees for longer duration. The Welfare measures need not be in monetary terms only but in any kind. Employee welfare includes monitoring of WORKING CONDITIONS, CREATION OF INDUSTRIAL HARMONY THROUGH INFRASTRUCTURE FOR HEALTH, INDUSTRIAL RELATIONS & INSURANCE AGAINST ACCIDENT, UNEMPLOYMENT for the workers & their families. Labour welfare entails all those activities of employer which are directed towards providing the employees with certain facilities & services in addition to wages & salaries.Labour Welfare has the following objectives-TO PROVIDE BETTER LIFE & HEALTH TO THE WORKERS.TO MAKE WORKERS HAPPY & SATISFIED.TO RELIEVE WORKERS FROM INDUSTRIAL FATIGUE & TO IMPROVE CULTURAL, INTELLECTUAL & MATERIAL CONDITIONS OF WORKERS.

The basic features of labour welfare measures are as follows-

Labour welfare includes various facilities, services and amenities provided to workers for

improving their health, efficiency, economic betterment and social status.

Welfare measures are in addition to regular wages and other economic benefits available

to workers due to legal provisions and collective bargaining.

Labour welfare schemes are flexible and ever-changing. New welfare measures are added

to the existing ones from time to time.

Welfare measures may be introduced by the employers, government, employees or by

any social or charitable agency.

The purpose of labour welfare is to bring about the development of the whole personality

of the workers to make a better workforce.

ROLE OF WELFARE FACILITIES

The very logic behind providing welfare schemes is to create efficient, healthy, loyal and

satisfied labour force for the organization. The purpose of providing such facilities is to make

their work life better and also to raise their standard of living. The important benefits of welfare

measures can be summarized as follows: 

They provide better physical & mental health to workers & thus promote a healthy work

environment.

Facilities like housing schemes, medical benefits, and education and recreation facilities

for workers’ families help in raising their standards of living. This makes workers to pay more

attention towards work and thus increases their productivity.

Employers get stable labour force by providing welfare facilities. Workers take active

interest in their jobs and work with a feeling of involvement and participation.

Employee welfare measures increase the productivity of organization and promote

healthy industrial relations thereby maintaining industrial peace.

The social evils prevalent among the labours such as substance abuse, etc are reduced to a

greater extent by the welfare policies.

WELFARE DEPARTMENT:

Welfare amenities have become an accepted part of good industrial organization. Consequently,

welfare departments have been looked upon a positive contributing factor to increase the

efficiency of the business. Welfare department should establish direct relationship with the

business in the same way as, say, the publicity advertising or accounting departments. All

organization will make an effort to keep accurate costs in order that a basis of comparison can be

worked out. If a welfare department is to be efficient, it follows that adequate office

accommodation must be provided. The welfare department should be located at a convenient

central spot. It has to maintain broadly employment, welfare and medical records

LEAVE FARE ASSISTANCE / LFA ENCASHMENT**

Employees and members of their families are eligible for Leave Fare Assistance after Putting one

year’s service, as under :-

(i) Employees posted at their home towns- Once in a block of 4 years to any place in India.

(ii) Employees posted at other town- Once in each calendar year to Home town than Home

And once in a block of 4 years in lieu of one LFA for Home Town, to any place in India,

Other than Home Town. However, in any calendar year, LFA may be availed of only once.

The term “family members” for the purpose of LFA includes parents, children residing

With and wholly dependent on the employee; parents-in-law are not included in “family

members”

For this purpose. Unmarried sisters and minor brothers are also included in the “family

members”

For employees who joined the Corporation on or before 1st June 1987.

L.F.A. “not due”

If an employee, posted away from his home town, is required to visit his home town due to

Certain emergency like death of some family member etc. but no LFA is due to him for that

Particular block/calendar year, he may avail “Leave Fare Assistance – Not Due”, to be adjusted

Against his subsequent entitlement for availing leave fare assistance in the next block/ calendar

year. This assistance will be allowed for visiting home town only.

LFA ENCASHMENT

Encashment shall be @ 80% of the leave fare assistance by the entitled mode | class of

travel for visiting home town. Fares for a distance are restricted to 2500 Kms. for visiting a place

other than home town (OTHT). For the purpose of LFA encashment (not for actual availing) by

air for a place OTHT, this amount is restricted to Rs.9900/- & Rs.14850/- per ticket for one side

fare for J class & Y class, respectively (w.e.f. 1.1.2002).

Encashment shall be admissible only in respect of LFA under normal rules i.e. for visiting

home town once every year and once in a block of 4 years for visiting a place other than home

town in lieu of LFA for home town.

**Office order no.18 (!)/97-LFA/EP DT. 13-7-98

TRAVEL BY PRIVATE TAXI IN HILL AREAS*

The rate of Mileage Allowance for the journey in a private taxi in hill areas between places not

Connected by rail, while availing LFA is as under :-

Pay Rs.6300/- and above Rs. 1.75 per km. per seat, limited to actual fare incurred for travel by

Private taxi in the hill areas where State Government taxies do not regularly ply.

*O O No 18(1)/84/Reg/EP Dated 25/4/2001

HOLIDAY HOME*

Employees are allowed to avail holiday for rest and recreation, at a place of their choice in India.

Employees can visit any station in India either alone or with their family members or family

members can visit such a place independently but not more than in two batches/groups in all, are

allowed once in a block of two calendar years.

The Current block of two years is 2002-2003.

The dependent family members, for the purpose of this scheme, include only employee, spouse

and dependent children (limited to three in numbers).

Employees are reimbursed a uniform amount equivalent to one daily allowance (at all inclusive

rates applicable to that station) for self and each dependent family members of family including

children over 5 years (i.e. children below 5 years are not to be taken into account) or the actual

charges for hiring accommodation, whichever is less, up to a ceiling of 10 days. All eligible

employees are allowed to avail the facility at their option i.e. 10 days once in a block of two

years

or 5 days every year.

The reimbursement which is limited to rent for accommodation is allowed only on production of

proper receipts (showing clearly the amount paid towards rent for accommodation) from the

owner/manager of the accommodation hired for stay. In case of stay in hotels, original bills have

to be enclosed.

For availing this facility, for self the employee must avail leave.

*Office order no. 11(12)/97-H-Home/EP dt. 7-1-1998

EDUCATION FACILITIES*

a) Central School

Central Schools under Kendriya Vidyalaya Sangathan are functioning at Nazira, Sibsagar,

Ankleshwar, Baroda, Mehsana, Dehradun, Cambay ,Agartala, Jorhat, Silchar, Lakwa,

Ahmedabad,

Panvel, Hazira and Rajahmundry.

b) Children’s Education Allowance

Tuition fee - Rs. 250/- p.m. subject to a max. of Rs.750/- for employees who joined before

11.9.1987 and Rs. 500/- for those who joined after 11.9.1987.

c) Merit Scholarship

Merit Scholarship from Vth Standard to Xth Standard, Intermediate, Graduate, Post Graduate

and Professional courses are granted as follows:

(i) Vth to Xth Class

Rs.125 /- p.m.

(ii) XIth & XIIth Classes & Recognised Diploma

Courses(3 years) Rs.150/-p.m

(iii) Graduation Rs.200/- p.m.

(iv) Post Graduation Rs.225/- p.m.

(v) Professional Courses Rs.300/- p.m.

Eligibility:

a) Class Vth to Xth -70%

b) Graduation, Post Graduation, Professional Courses:

i) Science -65%

ii) Commerce- 60%

iii) Humanities -60%

d) Journey Fare

Children of ONGC employees studying at a place other than the place of posting of the

employee are paid second class fare during approved vacation twice a year from the educational

institution to join their parents at the place of posting and back. This fare is admissible where

journey is more than 150 kms.

e) Special Award Scheme

In order to encourage brilliant and meritorious wards of the employees and to induce them

to maintain and improve level of their excellence, Special Awards are granted to those wards of

the employees who secure positions amongst first ten on the merit list of the Board/University

examinations and All India Competitions.

The amount of “Special Award” for various courses is as under:

-Matriculation/New SSC/ISCE etc. (i.e. Xth level) Examinations - Rs.1000

-Intermediate/HSC/SSC etc. (i.e. XII level) examination - Rs.1500

-Degree Examination - Rs.1500

-Post Graduate Examination - Rs.1500

-Professional Course Examination viz. Medical/Engineering etc. - Rs.2000

-All India Competitive examination viz. Central Services, MBA, - Rs.2000

NDA ,ICWA, CA etc.

f) Hostel subsidy

Children of Corporation’s employees, who stay in a hostel or residential school for the

purpose of their academic pursuits, are eligible for grant of Hostel subsidy on the following

conditions:

Conditions for grant of subsidy:

(a) The subsidy is admissible only when the child/children of an employee studies/study in a

school/college away from the station at which he/she is posted and/or is residing.(b) The subsidy

is admissible in respect of the child/children who is/are admitted in a hostel,

residential school for any of the following reasons:

(i) Employees are obliged to keep their child/children in a hostel on account of their

transfer because adequate facilities for education do not exist at the place to which

they have been transferred;

(ii) Employees are not able to secure admission for their child/children in local

schools/colleges because of restrictions placed by the educational authorities of the

area of State Government;

(iii) Employees are obliged to keep their child/children in School/College/Institute,

which insist on the stay of the child/children in the hostel.

(c) the subsidy will also be payable when the child is admitted to a school/college, which does

not have its own hostel and the ward is compelled to stay in a hostel run by private parties.

(d) In case where the child is admitted to hostel where messing arrangement is not available

and the child is forced to run his/her own mess, hostel subsidy will also be payable

towards lodging charges actually paid by the parent employee on the basis of a certificate

from the educational institution/hostel authorities that the amount spent by the child on

lodging and boarding is not less than the amount of hostel subsidy being claimed.

(e) The subsidy will also be payable in cases where the child of the employee is admitted to a

school/college, allotted by Selection Board for professional course, and the child stays in

the hostel even if such college/school happens to be situated at the station of posting of

employee concerned.

(f) The subsidy is admissible to cover all expenditure on boarding and lodging in the hostel

during the academic session as also other obligatory charges which are to be paid by the

boarder.

(g) The legitimate children, including step children and adopted children (where adoption is

recognised under the personal law of the employee), who are wholly dependant on the

employee, can claim subsidy.

(h) Not more than three children of a parent employee at a time can claim subsidy.

(i) The subsidy is admissible for education of child/children:

(i) From class V to class XII;

(ii) For Degree/Post Graduate classes and Professional Courses like Medical and

Engineering etc.

(j) The subsidy is not payable for more than two academic years in the same class, in respect

of a child.(k) The children can claim subsidy from the department of only one of the parents in

case both

father and mother are employed; and also if such assistance is not availed of by the

child/children’s father/mother from a department other than ONGC.

(l) If any employee dies, retires or is discharged in the middle of an academic year the

allowance i.e. CEA, Merit Scholarship, Hostel Subsidy, Transport Subsidy will be

admissible in the end of that academic year.

Rate of Subsidy

The rates of hostel subsidy payable in advance are as under:

(a) Ist to IV Standard Rs.325 /- p.m. per child

(b) Vth to XIIth Standard & Rs.450/- p.m. per child

recognised Diploma Courses

(c) Graduation, Post Graduation Rs.570/- p.m. per child

and Professional courses.

Actual charges are admissible in cases where total monthly charges of the hostel are less

than the amount specified above.

Bus/Transport facilities are provided to school going children of the Corporation’s

employees, at concessional rates, as under:

Transport Subsidy : Rs.125 /- p.m. per child.

VI. Reimbursement of Admission Fees

Admission charges are reimbursable as per actuals, subject to a maximum of Rs.1500/- per

child, limited to two children per employee on transfer.

*OM No. 17(11)/2000-01/ Welfare dated 19/1/2002& 14/8/2002

ONGC SCHOLARSHIPS FOR SCHEDULED CASTE/SCHEDULED TRIBE

STUDENTS*

As a social welfare measure, ONGC has introduced Scholarship Scheme to encourage deserving

students of SC/ST community for undertaking higher education. The scholarships are granted to

SC/ST students pursuing full time studies in Graduate Engineering Courses and Post Graduate

Courses in Geology, Geophysics, Business Administration from a College or an Institution

recognised by Central or State Government.

Eligibility Criteria:

Engineering Courses - based on marks obtained in 12th standard or open competition - 60%/6

points in 10 point scale.

For other courses -based on marks obtained in Graduation - 60%/6 points in 10 point scale.

Income Ceiling -Parents income from all sources should not be more than 1.5 lakhs per

annum i.e. Rs. 12500 p.m.

Amount of Scholarship:

Course Year Amount

Engineering 1st year Rs.1000 p.m

2nd year Rs.1000 p.m

3rd year Rs.1500 p.m

4th year Rs.1500 p.m

Post graduation in

Geology,

Geophysics,

Business admn

1st year

2nd year

Rs.1500 p.m

Rs.1500 p.m

*O.O.8(1)/SCHP/2001-SCT dated 10.2.2002

MEDICAL FACILITIES

Free Medical Facilities are provided through dispensaries and hospitals of the Corporation,

Authorized Medical Attendants and also through Government/Recognized Dispensaries and

Hospitals.

These facilities are provided to employees, their dependent children * and parents.

Dependency of parents is determined on the following criteria: **

(a) Their income should not exceed Rs.4000/- per month, and

(b) They should normally reside with the employee.

* OM No.16(5)/82-Welfare dated 13.6.1996

** OM No.16(5)/97-Welfare dated 15.12.1997, 19.12.1997 & 25.4.2001

REIMBURSEMENT OF COST OF SPECTACLES/CONTACT LENSES*

Eligibility: All regular employees who have rendered at least one year of service

and

require usage of spectacles/contact lenses.

Monetary Ceilings: Actual cost of spectacles/contact lenses with the following ceilings:

Level of employees Monetory ceiling

Unionised category Rs.1000

E-0 to E-5 Rs.1500

E-6 and above Rs.2000

Periodicity Once in a period of three years.

*O.O.No.16(57)/99-2001/Welfare dated 5.9.2001

LASER TREATMENT FOR MYOPIA*

Reimbursement of Lasik Laser Treatment only in progressive Myopia Cases needing

glasses of more than 10 diopter. Such reimbursement is limited to Rs.10,000/- for one eye

inclusive of medicines and other expenses.

*O.O.No.16(54)/E/99-2000-Welf. Dated 1.8.2000

REIMBURSEMENT OF COST OF DARK GLASSES/GOGGLES TO VISUALLY

HANDICAPPED EMPLOYEES *

Eligibility:

All visually handicapped regular employees who have rendered at least one year service in

ONGC and require usage of dark glasses/goggles.

Monetary Ceilings:

Actual cost with the following ceilings :

Levels of employees Cost ceiling

Class III to class IV Rs. 500

E-0 to E-5 Rs-750

E-6 and above Rs.1000

Periodicity:

Once in three years.

*O.O.No.16(57)/99-2001/Welfare dated 22.4.2002.

REIMBURSEMENT OF COST OF HEARING AID

Eligibility : All employees (including retired employees) and their

Dependent family members.

Monetary Ceilings : Upto Rs.10,000/- for one-sided hearing aid

Upto Rs.20,000/- for bi-lateral hearing aid

Periodicity : Maximum three times in whole life time.

TREATMENT FOR INFERTILITY

Employees and their spouses are permitted to take treatment for infertility subject to the

expenditure being restricted to Rs. 50,000/- per cycle subject to a maximum of three cycles.

Conditions:-

1. A minimum of 2 years period of co-habitation of the couple after marriage shall be

essential before the infertility treatment is advised.

2. Production of a certificate from the concerned specialist confirming that all the other

methods of fertility treatment have failed.

3. Such treatment will be availed from the ONGC's recognized Hospitals/ Nursing Homes

and in the absence of such facility in a particular station. The expenditure should be restricted to

Govt./ Govt. recognized hospitals of respective Regions/ States.

4. A maximum of 3 cycles of treatment only will be admissible.

5. The facility of getting incentive increment for not having any issue within 4 years of

marriage will not be admissible to those employees opting for such treatment.

MEDICAL FACILITIES TO RETIRED EMPLOYEES*

Employees of the Corporation who retire on attaining the prescribed age of superannuation and

their spouse, can also avail, at their option, medical facilities, on contributory basis. The amount

is

as follows:

GRADATION OF RETIRED RATE OF

LUMP-SUM

EMPLOYEE

CONTRIBUTION (In Rs.)

Scale Code I 2150

Scale Code II 2250

Scale Code III 2350

Scale Code IV 2550

Scale Code V 2900

Scale Code VI 3250

Scale Code VII 3500

S-1 5110

S-II 5700

S-III 6535

S-IV 7600

E-0 5375

E-1 6000

E-2 6875

E-3 8000

E-4 8750

E-5 9250

E-6 9750

E-7/8 10250

E-9 11875

Directors 12875

C&MD 13875

* O.M No 16(30)/2000-2001 dt 18.6.2001Retired employees or his/her spouse are provided

travel facility for performing journey to

outstation in connection with medical treatment, recommended by competent medical authority.

Retired employees who are referred for medical treatment to outstation by the competent

medical authority, shall also be provided accommodation in ONGC’s Guest House, wherever

existing, subject to availability and other terms and conditions.

COMPOSITE SOCIAL SECURITY SCHEME

(A) BENEFIT ON DEATH WHILE IN SERVICE / PERMANENT TOTAL

DISABLEMENT RESULTING

IN SEPARATION FROM ONGC.

EXECUTIVES : Rs. 10.00 Lakhs

NON-EXECUTIVES

S-LEVEL: Rs. 7. 50 Lakhs

Other than S-Level : Rs. 5.00 Lakhs

(B) SURVIVAL BENEFIT:

This shall be equivalent to employees contribution alongwith 5% simple interest.

(C) CONTRIBUTION:

By Employees By ONGC

Executives : Rs. 260/- p.m. Matching contribution

by the Company.

Non-executives

S-LEVEL : Rs. 195/- p.m. Matching contribution

Other than S-Level : Rs. 130/- p.m. by the Company.

2. All regular employees in the ONGC’s pay scales only (excluding deputationists from other

organizations to ONGC ) existing as on 1.6.1998 are covered by the scheme. ONGC’s

employees

on deputation to other organisations are also covered subject to their own contribution as well as

contribution from the borrowing organisations.

COMPENSATION FOR ACCIDENT WHILE ON DUTY

Employees , who meet with accidents, while on duty, are eligible for compensation under

the Workmen Compensation Act, 1923.Employees who are otherwise not covered under the

Workmen Compensation Act, 1923 and who meet with accident, while on duty, are also

considered for grant of compensation, on merits, as if they would have been governed by the

Workmen Compensation Act, 1923.

Financial Assistance in case of permanent total disablement or die death to accident or

H2S Environment while on duty*

ONGC employees who sustain permanent total disablement or die due to accident or H2S

exposure while on duty, are paid financial assistance as indicated below :-

Category Normal Environment H2S Environment

E-1 & above 6.00 lakhs 12.00 lakhs

E-0 & S-Levels 3.00 lakhs 6.00 lakhs

Class III 2.40 lakhs 4.80 lakhs

Class IV 1.80 lakhs 3.60 lakhs

This amount is in addition to all other benefits/ reliefs available under various orders and

schemes.

Other workers who are not on ONGC rolls and sustain permanent total disablement or die

due to accident or H2S environment during operation/duties in ONGC premises are paid

financial assistance as under

Category of worker Financial assistence

Casual/Contingent

Workers/Para-Medical

In the event of

death/permanent total In the event of

Staff engaged directly by

ONGC/direct employees

(in MR) and term based

employees

disability during

operational

activities in ONGC

premises.

death/permanent total

disability due to H2S

exposure in operatio

nal

areas.

Rs 1 lakh Rs 2 lakhs

Rs 2 lakhs Rs 4 lakhs

*O.O.No.13(1)/88-2002/GA dated 21.10.2002

*O.O.No.13(3)/2002-GA dated 8.11.2002

MEMENTO (SILVER PLAQUE) TO EMPLOYEES ON RETIREMENT*

Eligibility:

All regular employees who retire on attaining the age of superannuation or on Voluntary

Retirement.

Monetary Ceilings:

Level of employees Cost Ceiling

Class-IV Rs 2000/-

Class III Rs.3000/-

‘S’ level Rs.4000/-

E0-E4 Rs.4000/-

E5 and above Rs 5000/-

*O.O. No. 3(5)/91-2001/GA Dated 7.9.2001

EX-GRATIA SCHEME TO PRE-15.10.1959 EMPLOYEES*

Those employees who joined ONGC prior to 15.10.1959 and fulfil following conditions are

eligible for grant of ex-gratia @ Rs. 1000/- p.m. w.e.f. 1.11.1997:-

Conditions:

Ex-employee should have joined ONGC prior to 15.10.1959 and superannuated from the

services of ONGC after rendering continuous service of minimum 20 years (without break ) on

or before their superannuation.

Service in ONGC means regular service of ONGC and not engaged on contractual/daily

or temporary/ad-hoc basis.

He/She should not be receiving/eligible for benefit under ONGC Post Retirement and

death in Service Benefit Scheme (PRBS) and/or the Govt. Pension Scheme.

He/She was not dismissed/removed/terminated or had not resigned from the services of

ONGC.

On the death of the ex-employee, his/her spouse is eligible for grant of ex-gratia at the

rate of Rs. 500/- p.m. together with the Dearness Allowance as admissible from time to time till

his/her survival.

O O No 103(92)/00-EP dated 20/11/2001

‘AGRANI SAMMAN’ EX-GRATIA BENEFIT SCHEME

Oil and Natural Gas Corporation Limited has introduced ‘Agrani Samman’ Ex-gratia

Benefit Scheme w.e.f. 1.1.2003 for its pre-15.10.1959 employees and those post 14.10.1959

employees who have superannuated/voluntarily retired/died while in service prior to 1.4.1991 (in

case of executives) and 16.11.1995 (in case of non-executives) after rendering minimum ten

years

of service.

2. Those pre-15.10.1959/ post-14.10.1959 employees who have superannuated/voluntarily

retired/died while in service after rendering minimum twenty years of service are eligible to

‘Agrani Samman’ ex-gratia at the following rates if they fulfil requisite eligibility

conditions :

category Class III &

IV

employees

E-0 to E-3

executives

E-4 to E-6

executives

EE-7 and

above

Plus

Pre-15-10-1959

employees

Post 14-10-1959

employees

Rs 1500

p.m.

Rs 750 p.m

Rs 3000 p.m

Rs 1500 p.m

Rs 4500 p.m

Rs.250 p.m

Rs 6000 p.m

Rs 3000 p.m

Applicable

DA from time

to time

Those deputationists who have superannuated/voluntarily retired/died while in service after

rendering minimum ten years of post absorption service in ONGC are also eligible to Agrani

Samman’ ex-gratia.

4. Those eligible ex-employees who have superannuated/voluntarily retired/died while in

service after rendering 10-20 years of service are eligible to pro-rata amount of ‘Agrani

Samman’ ex-gratia.

5. Those eligible ex-employees who are receiving/eligible for benefit under Post Retirement

and Death in Service Benefit Service (PRBS) and or Govt. Pension are eligible for ex-gratia

at the rates mentioned in para 1 above plus applicable DA from time to time minus PRBS

benefit and/or Govt. Pension as the case may be.

6. After death of ex-employee, the spouse is eligible to 50% of ex-gratia amount that

was/would have been admissible to the deceased employee plus applicable DA from time to

time minus the amount of PRBS and/or amount of Govt. Pension, if any.

7. The ‘Agrani Samman’ ex-gratia benefit is not admissible to those who were

dismissed/removed/terminated/resigned/deemed to have resigned/Pre-maturely retired, or if the

spouse/son/daughter of deceased employee has been provided employment on compassionate

grounds in ONGC.

EMPLOYEE WELFARE COMMITTEES

To organise, 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) Indoor games

(ii) Outdoor games

(iii) Sports, annual sports and any other athletic activity

(iv) Cultural activities, like dramas, variety shows, etc. including audio-visual activities

(v) Library-cum-reading room.

The Committee consists of a President (ex-officio), a Vice President, and 10 other

Members.

The Head of the Asset or Office functions as the ex-officio President. The Vice President

and 7 of the Members are elected bi-annually from amongst the staff. The remaining 3 Members

are nominated by the ex-officio President.

For meeting its day-to-day expenditure, the committee receives:-

(a) Contributions from Members (not less than Rs.3/- per head per year)

(b) Following grants from the Corporation:

(i) Grant-in-aid

Rs.4/- per head per annum for the entire strength of employees in case they

are Members of the Employee Welfare Committee.(ii) Matching Grant

Rs.3/- per annum for each Member of the Staff Welfare Committee

(including officers) who subscribe at the same rate towards membership;

and

(c) Donations and other miscellaneous receipts.

LADIES’ CLUB

ONGC Ladies Club actively involve themselves in various activities for meeting the social

objectives of the Corporation like running creches and nursery schools, organising health camps,

fete, visiting neighbouring villages to teach the rural folk about health care and cleanliness,

helping

the handicapped, the poor and needy children. They also organise cultural programmes form

time

to time.

SPORTS

Sports activities receive a great deal of encouragement in ONGC. ONGC is a member of

Petroleum Sports Control Board (PSCB).

Within the Corporation, ONGC Sports Promotion Board has been set up along with Regional

Sports Councils at Hqrs. and various Regional Offices.

Efforts are always made to build up various teams and for this purpose, outstanding sportsmen

are

recruited for various games.

Excellent infrastructural facilities exist for various sports like Squash, Tennis, Hockey, Football,

Badminton, Table Tennis, Billiards, etc.

ONGC HIMALAYAN ASSOCIATION (ONGCHA)

The ONGC Himalayan Association (ONGCHA) cultivates a sense of adventure and love of

the outdoors. It organises high altitude treks, short treks, ski courses, training in basic and

advanced mountaineering and family adventure courses.

EMPLOYEE COOPERATIVE SOCIETIES

The Corporation extends the following assistance to the Employees’ Cooperative Stores,

which have a membership of 250 and above:-

(i) Share capital participation by the Corporation - Rs. 2,500/-

(ii) Loan - Upto Rs.10,000/-

(iii) Managerial Subsidy:

(a) First Year - Rs. 9,000/-

(b) Second Year - Rs. 6,000/-

(c) Third Year - Rs. 3,000/-(iv) Accommodation at nominal rent of Re.1/- per month.

(v) Subsidy for furniture according to the need upto the value of Rs.750/-

CH 8 employee participation in management in ONGC

Participation of workers in decision-making process has resulted in successful value creation in

many organizations. Though the extent to which employees should participate in organizational

decision making is still a matter of debate. Some say that workers’ union should participate with

management as equal partners while some believe in restricted or bounded participation, that is,

participation of employees or workers to a limited extent. However, there are a number of ways

through which employees can participate in decision-making process of any organization.

Participation at the Board Level: Representation of employees at the board level is

known as industrial democracy. This can play an important role in protecting the interests of

employees. The representative can put all the problems and issues of the employees in front of

management and guide the board members to invest in employee benefit schemes.

Participation through Ownership: The other way of ensuring workers’ participation

in organizational decision making is making them shareholders of the company. Inducing

them to buy equity shares, advancing loans, giving financial assistance to enable them to buy

equity shares are some of the ways to keep them involved in decision-making.

Participation through Collective Bargaining: This refers to the participation of

workers through collective agreements and by deciding and following certain rules and

regulations. This is considered as an ideal way to ensure employee participation in managerial

processes. It should be well controlled otherwise each party tries to take an advantage of the

other.

Participation through Suggestion Schemes: Encouraging your employees to come

up with unique ideas can work wonders especially on matters such as cost cutting, waste

management, safety measures, reward system, etc. Developing a full-fledged procedure can

add value to the organizational functions and create a healthy environment and work culture.

For instance, Satyam is known to have introduced an amazing country-wide suggestion

scheme, the Idea Junction. It receives over 5,000 ideas per year from its employees and

company accepts almost one-fifth of them.

Participation through Complete Control: This is called the system of self

management where workers union acts as management. Through elected boards, they acquire

full control of the management. In this style, workers directly deal with all aspects of

management or industrial issues through their representatives.

Participation through Job Enrichment: Expanding the job content and adding

additional motivators and rewards to the existing job profile is a fine way to keep workers

involved in managerial decision-making. Job enrichment offers freedom to employees to

exploit their wisdom and use their judgment while handling day-to-day business problems.

Participation through Quality Circles: A quality circle is a group of five to ten

people who are experts in a particular work area. They meet regularly to identify, analyze and

solve the problems arising in their area of operation. Anyone, from the organization, who is an

expert of that particular field, can become its member. It is an ideal way to identify the

problem areas and work upon them to improve working conditions of the organization.

Employees can participate in organizational decision making through various processes

mentioned above. However, there are other ways such as financial participation, Total Quality

Management, participation through empowered teams and joint committees and councils through

which they can contribute their share in making the organizations a better place to work.

POLICY ON EMPLOYEES’ PARTICIPATION IN MANAGEMENT

Preamble

At Nagarjuna, we pursue the Employees’ Participation in Management

[EPM] as:

• a mechanism where associates have an involvement and ownership in the

decision-making process of the organisation.

• a system of communication and consultation either formal or informal by

which associates are kept informed about the happenings in the

Company’s business through which they express their opinion and

contribute to management decisions.

• part of work culture

Purpose

The purpose of EPM is to increase production and productivity, evaluation of

costs, development of personnel, expansion of markets, risk management are

part of EPM activities.

Meetings

The participation meetings are held on a periodical basis and review the progress

of the activities undertaken and set goals for the future.

Key Components

1. Inculcating motivated and strong performing work teams

We focus and encourage highly motivated associates who are considered

to be contributors in employees’ participation programmes. It provides

growth opportunities for these motivated associates and engages them in

important activities to help them to grow further in their careers.

2. Focus on the future

Associates are encouraged to sharpen their skills both functional and

behavioural through continuous learning and development initiatives in the

areas where they are required to improve their performance. It energizes

the associates about new responsibilities where they can contribute better

in the employees’ participation programmes for the future and determine

the positive outcome with regard to their team management and

leadership qualities that will occur as a consequence to the change /

improvement made. We also help associates to align their personal goals

with the organisational goals with focused attention. 2

The way we do….

The Employees’ Participation in the Management enhances their ability to

influence decision making at different tiers of the Organizational hierarchy with

concomitant (GOING TOGETHER) assumption of responsibility.

The associates’ participation in the company happens at different levels of

management:

- At the shop floor level,

- At the departmental level, i.e., Department Safety Committee, and

- At the factory level, i.e., Central Safety Committee, Plant Risk

Management Committee, Canteen Committee, Sports and Games

Committee, Suggestions Committee, Negotiation Committee, CSR

Committee, etc.

- At the Corporate Office -- at Corporate Risk Management Committee

The participation incorporates the willing acceptance of responsibilities by the

associates. As associates become a party to the decision making, they stand

committed to the implementation of decisions made.

The participation is conducted through the mechanism of different forums and

practices which provide the required platform for the associates’ contribution.

Objectives

EPM is an instrument aimed at:

ƒ improving the efficiency of the organisation and establishing harmonious

employee-management relations by obtaining suggestions from

associates’ and by improving positive attitudes towards their work.

ƒ attaining industrial peace and harmony which lead to higher productivity

and increased production;

ƒ giving the associates an acceptable status and a sense of purpose for

their existence in the organisation.

With these initiatives a continuum of associate-management relationship is

conceived through:

- Joint Management

- Joint Consultation

- Work Place Consultation

- Participative Management 3

Rollout Process

These objectives may be achieved through the process of EPM thereby achieve

the following positive outcomes:

- Understanding the market dynamics.

- Challenging tasks / assignments for associates.

- Increased sense of responsibility and ownership.

- Meaningful inter-personal relationships at work place.

- Encouraging and developing associates’ ideas and suggestions to management.

- Realistic and participative management decisions.

- Effective communication system.

- Better employee-management relationship.

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 counts.

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 and engineers, 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.

FINDINGS AND LIMITATIONS

A) FINDINGS-

Today performance appraisal and motivation is a broad, sweeping, living system,

characterized by ongoing interactions, feedback and mutual ownership. Based on the

trends observed in past few years, performance management should continue to grow,

playing an even stronger, more diversified role in organizational and individual success.

After gaining the knowledge of performance appraisal system in Reliance Communication, we

can say that organization has adopted very effective procedure. The performance appraisal

system adopted is no doubt superior to traditional method but its successful use requires several

precautions. Performance is measured on the basis of KRAs.

Performance appraisal and motivation of employees is the process of accessing systematically,

the performance of a person on the present job, on his potential for higher level job in future.

Performance appraisal and motivation of employees provides an objective for taking personnel

decision, harmony between objectives at different levels provides a sense of common duties to

all. Frequent interaction between the subordinate and superior helps to reduce internal conflicts.

It becomes easier to initiate and implement organizational changes.

In time office entire system is computerized which minimizes the change of occurrence of error

and provides accurate details of all the employees. Safety precaution in Reliance Communication

is very beneficial for each and every employee. There is a provision for different types of

awards, performance aware, and memento on retirement which gives psychological satisfaction

to the workers. Worker’s participation in management is also seen. The employees are entitled to

give suggestion schemes. The company publishes its own in house journal saved every three

months which keep building awareness among the employees. Informal meetings are organized

with the workers which help in understanding this psychology of the workers to the company.

Although HR is usually responsible for establishing an organization’s performance

appraisal system, employees and managers are the real users. So, they have unique

perspective on how well the system is working.

Most of the executives agreed that their performance management system has a strong

link to other HR system. The performance data is used to determine what type of training

employees should pursue namely their skill development. Performance reviews are also

used to identify and develop leaders for future openings in the organization (succession

planning) Performance data is also used to help make decisions about who should be

promoted. More importantly, it enables employees to look for additional responsibility

and identify opportunities to acquire value skills that will benefit their career

PA is instrumental in judging the actual worth of the employees.

The objective, policy and process of PMS is clear to employees.

Seniority and ability are the two pre-requisites for a person to be promoted.

Employees set their KRAs after personal meeting of their reporting manager.

Many employees think performance appraisal gives extra pressure.

Employees are agree that PMS helps in career growth

They are satisfied with their KRAs and have proper understanding of it.

They get regular Feedback from their Managers in achieving organisational and

departmental Goals.

They have the zeal to learn more about PMS process

RECOMMENDATIONS

Performance appraisal system in ONGC is an effective process. With the introduction of e- PAR,

performance management system is further improved. Based on the survey survey results, it is

recommended that.

1. The KRAs need to be modified and should be based upon the role of group or team. At

present, KRAs are more generic and are not specific to the role of employee.

Performance appraisal form includes four KRAs- Quantitative & Timeliness, System

Improvements, HSE/Office Management, Qualitative. Instead of this, KRAs should be based on

the role of employee and task to be undertaken in that appraisal year.

2. Five KPIs are not sufficient to sum up year’s performance of an employee. Provisions

should be made to increase the number of KPIs.

3. The weightage of potential apprisal should be reduced up to 10% only whereas

weiightage of present perforance should be increased uo to 90%.

4. The appraiser and the appraisee should sit together and then the appraiser should rate his

performance and should state the reason for the same. This will increase the level of transparency

and employee will feel satisfied as he will have an opportunity to respond at that every moment.

5. Mid-term performance rating should be given as presently mid term review is being done.

This will facilitate chance for improvement of appriasee during that year.

6. Constructive feedback should be given to employees be their superviser thoughout the

year, so that they can identify their performance gaps and prepare accordingly for the future.

7. Rates should take note of the critical performance incidents of an individual so that at the

end of the year it should not be that only the recent performances are given more weightage.

8. PAR scores of all three stages (Reporting, Reviewing and Accepting) should be revealed

to the employee concerned. It will make the system more fair and employees will have more

faith on the appraisal process.

9. Training plays a vital role in the development of an individual and helps improve the

performance. Training needs as mentioned by the employee in his appraisal sheet should be

considered. Management should take serious note of training requirements as reflected from the

appraisal results.

The KRAs. KPIs may be directly linked witht the yearly targets or goal of the companys