A PROJECT REPORT ON PERFORMANCE APPRAISAL PRACTICES IN ONGC

(Submitted in partial fulfillment for the Completion of the degree of BBA)Under Guidance of: Factulty Head: Pooja kumari Designation: HR Professor Submitted by: Neeru Saini

ONGC Academy Dehradun

FACULTY OF ARTS, SCINECE & COMMERCE

Mody Institute of Technology & Science Lakshmangarh (Rajasthan) 2009-10

PREFACEHuman being are a resource to an organization like my other material on economic resource they represent an investment. Competent employees do not remain competent forever. Skills

deteriorate and can obsolete. That is why organization spends billions of dollars each year performance appraisal. The efficiency of an organization depends directly on how capable is employees are in the competitive world and how they are motivated to work. An

employees growth, personal, development on his performance. Similarly, an organization growth, future planning and employees performance. Further, an employees performance is also used as an indicator for compensation packages career counseling and identifying training needs. The process of appraisal usually involves comparing the performance with the standard. Performance appraisals are

essential for effective management and evaluation of staff. Appraisal helps develop individuals, improve organizational performance and feed into business planning. Formal performance appraisal is generally conducted annually for all the staff in the organization.

ACKNOWLEDGEMENT

I feel pride and privileged in expressing my deep sense of gratitude to all those who have helped me in presenting this assignment. I express my sincere gratitude to Shri A.K. Sahu, DM (HR) for their inspiration, constructive suggestions and mastermind analysis in my work, without this, project work completion was impossible for me. I am greatly indebted to other staff members of ONGC Academy for their kind help rendered to me through the entire period of my project work. Sincere thanks to all my senior colleagues and last not the least to the librarian.

CONTENTS

CHAPTER 3 CHAPTER CHAPTER

1 2 3

Introduction Overview of ONGC Changes in Economic Environment and its Impact on ONGC Performance Appraisal Practices in ONGC PAR Section in ONGC Current Initiatives of PAR System in ONGC Data Analysis and Interpretation Limitations Conclusion Suggestion Bibliography Annexure 35 36 38 40 41 6

11 20 25 33

CHAPTER CHAPTER CHAPTER CHAPTER CHAPTER CHAPTER CHAPTER CHAPTER CHAPTER

4 5 6 7 8 9 10 11 12

Introduction

CHAPTER NO 1 INTRODUCTION

Oil and Natural Gas Corporation Ltd. (ONGC) a Navaratna enterprise engaged in exploration of

public sector

hydrocarbons is one of the leading

companies with significant contribution in its industrial and economic growth Over the years ONGC has been fairly successful in building up a vibrant oil industry in the country. The above topic was chosen to extent of Performance Appraisal practices operative in ONGC and the need for further strengthening of performance appraisal system of the employees so as to improve the efficiency and productivity and prepare them for their future needs. The modern business environment is characterized by uncertainty and changes, competition, technological obsolescence, trust on quality and higher productivity and above all fight for survival and success. Business Enterprises are increasingly apprehensive of the growing competition and do not wish to be remembered as a corporate dinosaurs. The message is loud and clear. Attain and sustain the cutting edge if you want to survive and succeed in this highly competitive environment. In the changing environment, the human factor has become more important than ever before. Organizational are becoming increasingly dependent on people as business tends to the more complex and diverse. HRM today is not only slogan but

has become economic necessity. HRM strategies such as Performance Appraisal, Training etc. have to be tailored to suit the business environment of the economy. Of the various strategies and mechanisms, there is tremendous potential in PERFORMANCE APPRAISAL SYSTEM (PAS) as an effective tool for gaining competitive edge. In the modern day turbulent business environment, innovative PAS strategies are required to meet a plethora of challenges. What is true of one organization or nation may not necessarily apply exactly the same way elsewhere. So we will need to innovate such strategies of performance appraisal as suit the business environment of our economy in the wider context of globalization. So in the pursuit competitive advantage, strengthened HRD mechanisms for PA are expected to play an important role in ensuring employee involvement and commitment to the corporate objectives, exhibit genuine qualitative concern for developing appropriate work ethics and attitudes to performance, play an active role in strategic planning. In the wake of fast changing business environment there is need to do serious introspection about the existing PA systems and processes operative in ONGC and identification of gaps to strength them and to increase organizational effectiveness. The focus on innovative PA interventions will in the long run, enable organization to leap much ahead of their competitors in the global race for market supremacy.

Overview Of ONGC

CHAPTER NO 2

OVERVIEW OF ONGC

The Oil and Natural directorate was formed in the year 1952 as part of department of Geological Survey of India (GSI) to undertake the task of exploration of crude oil in the country. The directorate was transformed into commission in the year 1956 thenceforth it was known as Oil and Natural Gas Commission till recently in the year 1993 when it converted into a public limited company and is known as Oil and Natural Gas Corporation Limited. The ONGC is a pioneer organization today having its net assets worth Rs. 66199 Crores (during 2008-09) and Group Sales Turnoer Rs. 86276 Crores (during 2008-09). The ONGC started with 60 employees in 1956 and most of them from GSI. The commissions initial expansion was very slow till the oil struck first time in the country in the year 1958 at Cambay. The Commission (as it is known earlier) undertook very challenging task of exploration and production of hydrocarbons within the country. It surveyed large part of the country across its length and width. The ONGC successfully Its recent

discovered major fields in Gujarat, Assam and Bombay High.

discoveries are in Godavari, Kaveri basin and south offshore. Its production rose from 53.75 MMT to about 60.77 MMT in the year 2008-09. The rapid expansion in activities after discovering Bombay High oil fields and other prospective areas

called for large number of fresh recruitment. The strength of ONGC employees rose to 40021 as on 31-03-2000 from 26000 in year 1980. The organization has rapid growth in eighties and nineties. It achieved ever high production of oil 60.77 MMT in the year 2006-07.

CORPORATE VISION/MISSIONLike all other organizations ONGC also has vision/mission and objectives vis a vis HR visio/mission and objectives to have shared ision is not just an idea but it compels an organization to achieve new heights in order to realize the shared dream. It also helps in forging a common identity amongst the diverse group of people in ONGC in a single direction.

WELFARE MESURESONGC draws its strength from 34000 strong manpower and always value its people. During the year 1998 in its efforts to improve the working conditions for employees the company implemented a Social Security Scheme for the welfare and rehabilitation of the families of employees who die in harness.

To develop women employees, ONGC has set up a women Development Forum at every project/Region/Office of the company to look after the welfare, improvement in the working conditions, training and development and redressal of grievances of women employees.

ONGC undertakes socio-economic development activities in areas where it operates as a part of its social responsibility. The activities include grantsin-aide to government agencies, educational institutes and voluntary and social welfare organizations. To promote sports at National & International Level. ONGC has been sponsoring many international tournaments apart from inducting players of National/International Tournaments. Caliber to represent India in International

ENTERPRISE RESOURCE PLANNING AND NETWORKING ONGC is focusing on integration of information database, workflow and operation processes in areas of Exploration and Production, Finance, Material Management and Human Resource and Corporate Management information system. The company is focusing on setting up of team based structure,

streamlining of systems and leveraging on information technology to enable value based decision making at all levels to maintain and enhance its profitability.

DIVERSIFICATION INITIATIVES ONGC is actively pursuing its objectives in diversity in the related areas of its business. As a result of equity swap with IOC and GAIL, the corporation has not only formed along term strategic alliance in the down stream area but also has

gained closer access to the market besides creating the ability to undertake integrated projects particularly in future overseas endeavors.

Products of ONGC The various products of ONGC are 1) 2) 3) 4) 5) Crude Oil NGL (Natural Gasoline) LPG (Liquefied Petroleum Gas) Ethane-Propane Natural Gas

Crude oil and natural gas coming from the oil/gas wells are processed in Field installations before its dispatch to main process plants at on-shore where it is finally processed so as to meet the quality requirement of customers (refineries in case of crude oil and power plants in case of natural gas). Value added products are extracted from natural gas and condensates are then processed as per the requirement of customers like BPCL and HPCL. GEOGRAPHICAL SPREAD The operations of ONGC span throughout the country starting from the Himalayan Foot-hills in the north to the offshore of the Indian Ocean in the south and Cambay basin in Gujarat and deserts in Rajasthan in the west to sedimentary basins in Assam and Nag land in the east. For better functional control, ONGC has divided the whole area under the operations injto six

regions. The headquarters of ONGC is situated at Dehradun and registered office at New Delhi. OVERSEAS OPERATIONS ONGC,S overseas activities are looked after by its wholly owned subsidiary, ONGC Videsh limited (OVL) At present OVL is operating in 16 countries of the world such as Vietnam, Tunisia, Yemen, Egypt Myanmar, Sudan, Libya, Brazil, Cuba Colombia etc.

Changes In Economic Environment And its Impact on ONGC

CHAPTER NO 3

CHANGES IN ECONOMIC ENVIRONMENT AND ITS IMPACT ON ONGC THE BEGINNING

The year 1991-92 was a landmark year in the economic history of India. It was a year when India has passed through the severest economic crisis since its Independence. The BOP situation has deteriorated sharply. The foreign

currency reservoirs had fallen to an all time low level.

The NRI,s were

withdrawing their funds at an alarming rate. There were no significant fresh deposits from them. Inflation had soared to an annual rate of 17%, industrial growth had menacingly fallen and over all economic growth had touched an all low level of 1.1%. All this had resulted in a possibility of default in paying foreign loans. Besides these bottlenecks at home, the whole world was passing through the unforeseen socio-economic changes during the period. Liberalization had become the buzzwords over the world. The domestic compulsions and international scenario called for complete overhaul of the economic policies and programmers in the country. The then existing scenario in the country and the root cause of the problem in the Indian Globalization and

economic policy were identified and best summarized in the words of he Prime Minister. A bulk of Government regulations and controls on economic activity has outlived their utility. Excessive controls have not bred corruption, but they have come in the way of achieving our objectives of expanding employment opportunities, reducing rural urban disparities and ensuring greater social justice. India had much to learn from what is happening elsewhere in the world. We find major economic transformation sweeping large countries in the Eastern Europe. There is a change in outlook a change in mind set

everywhere. India too can not lag behind if she has to survive. The policy changes, which the government embarked upon since July 1991, can be broadly divided into two categories. The first set of measures taken for the overhaul of economy of the country can be called as stabilization policy and the second set of measures can be called as structural reforms. The former aims at dealings medium and long term problems in the short run whereas the later aims at dealings medium and long term problems of the economy. Both policy measures are complementary to each other Structural reforms policies can not succeed unless some level of stabilization is achieved at the same time, stabilization can not be sustained unless structural reforms are undertaken. These reforms had a great impact on the public sector undertakings, which in general performed very poorly in fulfilling the financial and economic and objectives for which they were created. PSUs in general became non

competitive, inefficient and loss making resulting in heavy burden on the sate exchequer. Under the economic reforms budgetary support to PSUs has been slashed and they were expected to generate surplus resources. Move to privatize few of the PSUs has also been initiated with the government diluting part of its equity share in these organizations. The objectives behind this move were as follows:1. Budgetary relief 2. Increased efficiency 3. Greater resource generation 4. Improved business condition 5. Increased competition 6. Development of wider business ownership. ONGC, a fortune 500 company and one of the exceptions to poor performing PSUs was also subjected to changes. The major impact of policy changes on ONGC as follows: 1) CONVERSION OF ONGC FROM A COMMISSION TO CORPORATION

The biggest impact of the ongoing economic reforms in the country on ONGC was its conversion into a public limited company. In pursuance of the reforms, the government appointed a committee headed by Shri P.K. Kaul to look into all the aspects of ONGCs existing organization structure and recommend its restructuring, if required. The committee submitted its final report on 15

November 1992. Based on the recommendations of this committee, the government decided in February 1993 to convert ONGC from Ist Feburary 1994 into a public limited company governed by the Companies Act 1956, like other companies in the petroleum sector. The government also decided to dilute 20% of its equity in the new company by offering expanded equity to public, mutual funds, employees. Accordingly a new company entitled Oil and Natural Gas Corporation Limited (ONGC) was incorporated on 23rd June 1993 and it received the certificate of commencement of business on 10th August 15, 1993. On 2nd July 1993 the President of India promulgated and ordinance for transfer of the undertaking of ONGC to this newly formed company. Both houses of Parliament passed Oil and Natural Gas Commission (Transfer of Undertaking and Repeal bill in August 1993). The bill received the assent of the President of India on 4th September 1993. On 1st February 1994 ONGC became Oil and Natural Gas Corporation, employees of the ONGC became the employee of Oil and natural Gas Corporation Limited from that day. To arrive at the most appropriate capital structure and assess the business of the new company, a consortium of finance consultants were appointed. Assignments to these financial consultants included the following: 1) Valuation of hydrocarbon resources of ONGC.

2)

Recasting of accounts of ONGC as per laws including SEBI and

capital market practices and international accounting norms and as per prescribed standards of international and capital market. 3) To suggest appropriate financial structure for ONGC, pricing of

shares and strategy for domestic and international issues. 2) LOSS OF NEAR MONOPOLY STATUS There are four enterprises ONGC, ONGC Videsh Limited a subsidiary of ONGC, Oil and Natural Gas Authority of India Limited operating in exploration and production of oil and natural gas under the Ministry of Petroleum, ONGC, with over 90% of oil production to its credits and fields of operation spread over almost throughout the countrys on-land and offshore petroliferious basins, enjoys the status of near monopoly. However would no longer exist. Different blocks have been thrown open to private companies for exploration and production. This will certainly bring in a number of competitors in the country resulting in the loss of monopoly status of ONGC. 3) SLASHING OF BUDGETARY SUPPORT Under the new economic policy of India, all PSUs are expected to generate resources for investment and budgetary support to these public sectors are drastically out ONGC is no exception to this policy. However, it has been successful is mobilizing resources to meet the investment requirements. 4) INCREASED ACCOUNTABILITY AND RESPONSIBILITY

As the ONGC has entered the capital market, now it is a closely monitored company by all in interested public. Listing prices of the script will totally depend on the its performance and profitability. Even through it is a public limited company, with the government having major holding in its equity, it will be subjected to policy changes. ONGC, on one hand, will be responsible and accountable to stakeholders, and on other hand, it will have to carry forward social and political responsibilities undertaken by the government. ONGC has to judiciously balance the social and political responsibilities.

FRESH MEASURES NEW EXPLORATION LICENSING POLICY (NELP)In order to attract new technologies to increase the domestic oil production, the government has thrown open the oil fields to the domestic private sector, multinationals and joint venture companies, a policy proclamation towards which the content of the New Exploration Licencing Policy. The salient features of (NELP)1. NELP offers 100% equity participation by private parties. No mandatory

state participation through ONGC and Oil State companies can bid directly.2. ONGC and Oil to complete for obtaining petroleum license (PELS) on

competitive basis just like any other company in the race.3. Companies including ONGC/OIC to paid international price of oil for

discoveries made in the blocks offered under (NELP). 4. ONGC and OIL to provided a level a playing field by providing them the same fiscal and contract terms as available to private companies.5. NELP offers more concessions for exploration in deep water areas beyond

200 mt depth.

Performance Appraisal Practices In ONGC

CHAPTER NO. 4

PERFORMANCE APPRAISAL PRACTICES IN ONGCNot only had India . Set up own machinery for oil exploration and exploitation an efficient oil commission had been built where a large number of bright young men and women had been trained and they were doing good work:.Pandit Jawahalal, Indias first prime Minister to Lord Mountbatten, on ONGC 1999. Today ONGC is the flagship company of India, and making this possible is a dedicated team of nearly 40,000 professionals who toil round the clock. It is this toil which amply reflects in the performance figures and aspirations of ONGC. The company has adapted progressive policies in scientific planning, acquisition, utilization, training and motivation of the team. At ONGC, everbody matters, every souls counts. ONGC has a unique distinction of being a company within house service capabilities in all activity areas of exploration and production and production of oil and gas related oil field services. Needless to emphasize, this was made possible by the men and woman behind the machine. Over 18000 experience and technical competent executives mostly scientist and engineers from distinguish universities / institutions of India and abroad from the

core of manpower. This includes geologists, geochemists, drilling engineers, reservoir engineers, petroleum engineers, technical service providers, financial and human resource experts, IT professionals and so on.

HR VISION, MISSION AND OBJECTIVES

HR VISION To attain organizational excellence by development and inspiring the true potential of companys human capital and providing opportunities for growth, well being and enrichment. HR MISSION To create , a value and knowledge based organization by inculcating a culture of learning , innovation and team working and aligning business priorities with aspiration of employees leading to development of an expowered, responsive and competent human capital. HR OBJECTIVE To develop and sustain core values To provide Job contentment through empowering, accountability and responsibility. To develop business leaders for tomorrow. To build and upgrade competencies through virtual , opportunities for growth and providing challenges in job.

To foster a climate of creativity, innovation and enthusiasm. To enhance the quality of life of employees and their family. To inculcate high understanding of service to a greater cause.

HR STRATEGIES To meet challenging demands of the business environment, focus of the HR Strategy is on change of the employees mindset. Building quality culture and resources. Re-engineering and redeployment for potential. To build and upgrade competencies through virtual learning , opportunities for growth and providing challenges in the job. RE- strengthening mutual faith, trust and respect. Including a spirit of learning and enjoying challenges. Developing Human Resource through virtual learning , providing opportunities for growth , benchmarking in performance. inculcating involvement and exposure to maximizing utilization of HR

ROLE OF HR Alignment of HR vision with corporate vision. Shift from support group to strategic partner in business operations.

Enhance productivity and performance by development employee competency and potential. Development professional attitude and approach. Developing Global Managers for tomorrow to ensure the role of global players. A MOTIVATED TEAM HR policies at ONGC revolve around the basic tenet of creating a highly motivated. Vibrant and self driven team. The company cares for each and every employee and has in built systems to recognize and reward them periodically. Motivation plays and important role in HR development. In order to keep its employees motivated the company has incorporated schemes such as Reward and Recognition Scheme, Grievence Handling Scheme and Suggestion Scheme. Incentive scheme to Enhance Productivity.

Productivity Honorarium Scheme Job incentive Quarterly Incentive Reserve Establishment Honorarium Roll out of Succession Planning Model for identified key positions. Group incentives for cohesive team working, with a view to enhance productivity.

TRAINING AND DEVELOPMENT An integral of ONGCs employee-centered policies is its thrust on their knowledge up gradation and development. The institute of Management Development, which has an ISO 9001 certification, along with 7 other training institute, play a key role in keeping our workforce at pace with global standards. The institute of Management is the premier nodal agency responsible for developing the human resource of ONGC. It also focus on marketing its HRD expertise in the field of exploration & production of Hydrocarbons. ONGCs sports Promotion Board, the apex body, has a comprehensive Sports Policy through which top honors in sports at national and international level have been achieved.

PAR section in ONGC

CHAPTER NO. 5 PERFORMANCE APPRAISAL IN ONGCIn ONGC, the concerning rules are called employee performance appraisal rules in 1995. The performance appraisal system in ONGC seeks to evaluate The work performance of an employee on the present job relation to the expected level of performance, both qualitative and quantitative. The extent of development achieved be the employee during the period under review. Evaluation of behavioral attributes attitudes and abilities. Evaluation of potential for assuming higher responsibilities.

TITLE These rules will be called oil and Natural Gas Corporation Ltd, Executive Performance Appraisal rules 1995. APPLICATION These rules shall apply to all executives in E1 to E6 grades, belonging to different cadres of ONGC including its subsidiaries and associated offices, if any. All executives on deputation to ONGC will also governed by these rules. DEFINITION OF EXECTIVE

An executive is a person employed under the authority of ONGC in any of the executive grades E1 and above but shall not include Directors of any other person appointed by the president of India, for any of the offices in ONGC or its subsidiaries and associated officers. APPRAISAL YEAR The appraisal period is 12 months of financial year between 1st April of a year to the 31st March of the succeeding year.

APPRAISEE An appraisee is an executive who has worked under the direct control and supervision of other executive for a minimum period of 4 months within time span of 1st April 31st March (12 months) in appraisal year. APPREISERS There are two levels of appraisers The first appraiser also called reporting Authority, means and executive under whose direct control and supervision the appraisee operates. In case of second appraisee, immediate functional senior executive (who may be equal in status of 1st appraiser) could be the joint Appraiser with the Reporting Authority, and he would only record whether or not he agrees with the observation of the first Appraiser.

ACCEPTING AUTHORITY

A very senior officer who is designated under the roles of re-looks at the performance of the appraisee, and reviews the observations of the first and the second appraisers. He would finally determine and evaluate the performance of the Appraisers. In case of disparity between his assessment and that of the first and second appraisers, he has to record specifically his comments in case of overall performance grading A+ to D and low score for personality traits by either of the earlier two Appraisers.

APPELLATE AUTHORITY Project General Manager, Regional Directors, Group General Manager and Company Directory and Chairman-Cum Managing Director would be Appellate authority to take the decisions on representations of different level of appraisee executives. They would also take the final decisions on the evaluation of the performance of the appraisee in special cases. Roles and Responsibilities of the Reporting Authority The overall performance classification in grades is to be determined by a) b) examining both a performance personality of the appraisee

The parameter of this task are listed in part 2 of the par formant in blocks A,B,C,D,E and F In evaluating performance (block A) due consideration is to be given to the benchmark indicate therein and one numerical block only is to be ticked.

In respect of the personality trait in block B,D,C,E and F only the numerical block is to be ticked after considering the benchmarks indicated therein. Special Comments by Reviewing Office After the detailed analysis of performance/ personality traits by the Reporting office, the Reviewing officer is required to officer the special comments (no numerical values in respect of few special items like integrity, professional

potential for growth and like, specific areas functions for potential growth mentioned. Overall Assessment by Accepting Authority The Accepting Authority will minutely examine the observation made by the first appraiser and reviewing authority and also self appraisal, and taking due consideration of all the a spects, determine overall grade and also comment on the total performance.

THE GRADING SYSTEM The grading system in ONGC is based on Graphic Rating Scale method of performance appraisal. It perhaps the most commonly used method. Under this method a printed form is used to evaluate the performance of the employee. A variety of traits may be used in these types of rating devices, the most common being the quality and quantity of work. In ONGC performance appraisal form a block numerical values have been assigned to assist the first appraiser in making overall assessment. The overall

total score for determining a grade is merely a guide and the final grade may be at variance with the total score. The second appraiser i.e. the interviewing 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 arrives at the final grading by judiciously weighing the assessment of Reviewing Authority which may belong to functional discipline of the appraisee along with the detailed assessment of the Reporting Authority.

The overall rating grades in respect of the appraisals would be under

A+ A AB+ B C D

95 & above 85-64 75-85 65-74 55-64 45-54 less then 45

The final grade given by the accepting Authority after detailed and due consideration to the rating by the 1st and 2nd appraisee executive.

MODERATION

This means re-evaluation of the PAR of the appraisee and the grade awarded by the accepting authority to correct any observations. The head of the personal department at the region i.e. GM (HR) will reviewed the PARS of the executives up to E-3 level and advice of the regional director for moderation if required on the bases of analysis of reports. The regional director in consultation with the functional head (which has to be recorded in PAR) will have authority to moderate PAR as under. All pars which are grade A+ to D Cases referred to as General Manager (HR) of the regions, on the basis of monitoring \. The moderation is based on forced distribution method of performance appraisal. Under this system , the rate is asked to appraise the employee according to predetermined distribution scale. The reters bias is sought to be eliminated here because worker are not at a higher or lower end of the scale. The designated authority for moderation has special responsibility to ensure that by and largev, the final grading of PARS of executives (E1 to E6) of various disciplines confirm to board pattern as below: A+ A AB+ 10% 40% 10% 10%

B C D

10% 10% 10%

Current Initiatives of PAR System In ONGC

CURRENT INITIATIVES OF PERFORMANCE APPRAISAL SYSTEM IN ONGC Implementation of E Par (IT Enabled Performance Appraisal Report)As is advantageous for a par system such as; Streamlining of PAR process Uniform application of company policy Authenticity and audit trial of transactions Availability of online information

System monitoring mechanism and control Cutting down on delay and fixing of responsibility/accountability in delay which helps in faster decision making on issues such as promotions. In view of this benefit, it was decided to implement IT enable PAR system in ONGC w.e.f. assessment year 2008-2009, initially for the year E1 E6 level executives, later to be ruled out in other phases to other level.

INCORPORATION OF PAR BASED 3600 EVALUATION (A+ CONCEPT LEVEL)The (3600) feedback involves collecting perception about a persons behavior and impact of the behavior from the persons boss or bosses direct reports, colleagues,

fellow members of project teams, internal and external, customers, suppliers. Other names for 3600 feedback are multi-rater feedback, full circle appraisal and group performance review. In order for an organization to be ready for an effective 3600 feedback, a number of question need to be answered. The effectiveness of the feedback if directly linked to the integrity of the process, and the integrity of the process is measured in terms of commitment, clearly of purpose and follows up. A 3600 feedback is recommended for accomplishing a detailed plan to address these issues to prior implementation. At present in ONGC, this is the concept level and efforts are being made to use it effectively for attaining the overall goals of the organization.

Data Analysis And Interpretation

1.

Performance Appraisal system in an important tool to evaluate performance

of employee in ONGC. Scaling Strongly agree Percentage 65.9 Agree Natural Disagree Strongly disagree 29.54 0 4.56 0

INTERPRETATION: This chart shows that most of the employees think that performance appraisal for the organization is an important tool. Some are partially agree and some disagree too.

2. The objective of appraisal system are clear to all employees.

Scaling Strongly agree Percentage 59.8

Agree Natural Disagree Strongly disagree 30.6 5.4 4.2 0

INTERPRETATION: This chart that objective of performance appraisal are clear to most of the employees some agree and some disagree.

3. The appraisal in ONGC ensures that every individual is clearly aware about its function and responsibilities.

Scaling Strongly agree Percentage 11

Agree Natural Disagree Strongly disagree 23 29 28 9

INTERPPETATION: Surprisingly 37% of the respondents ware at loss about how PA format in ONGC ensure roles, clarity and responsibility

4. The performance appraisal system in ONGC provides a platform for identifying training needs of employees Scaling Strongly agree Percentage 45.49 Agree Natural Disagree Strongly disagree 20.45 20.45 13.63 0

INTERPRETATION: Nearly, 45.45% of employees are agreed upon this statement as it is and effective tool for identifying needs also. But some are also disagreeing and netural.

5. In ONGC, the counseling is satisfactorily done to judge low performance and to improve his/her performance Scaling Strongly agree Percentage 13.63 Agree Natural Disagree Strongly disagree 2.5 18.18 38.63 4.54

INTERPRETATION: Here in this statement nearly 38.63% of employees are disagreeing that the counseling is not satisfactorily done for low performer.

6. Most of the training program are initiated after a need analysis has that the program is needed. Scaling Strongly agree Percentage 8 Agree Natural Disagree Strongly disagree 14 12 48 18

INTERPRETATION: Though there exist adequate budgetary support for organizing quality training and development program for the development of executive yet the entire exercise lacks and direction.

7. In ONGC the present performance appraisal system is able to focus on personality trait of employees for better performance,\. Scaling Strongly agree Percentage 13.63 Agree Natural Disagree Strongly disagree 2.5 18.18 38.63 4.54

INTERPRETATION: Most of the employees on this statement are disagree that present PA formal is able to improve personality traits of employees for better performance.

8. Promotion is the main objective of performance appraisal in ONGC Scaling Strongly agree Percentage .45 Agree Natural Disagree Strongly disagree 43.18 4.54 6.81 0

INTERPRETATION: In this question 45.45 percent of employees are agree and 43.18 percent of employees are partially agree whereas 6.81 percent are disagree are disagree too. And a percent of 4.54 have not shown any view.

9. Promotion and rewards are a major factor in influencing performance if administered objectively Scaling Strongly agree Percentage 25 Agree Natural Disagree Strongly disagree 43 11 19 2

INTERPRATATION: As there exists the concepts of both bound and merit promotion in ONGC while majority respondents strongly take promotion and reward as a major factor in influencing performance.

10. Performance appraisal is carried out to assess the potential of employees to assign higher responsibility task. Scaling Strongly agree Percentage 17 Agree Natural Disagree Strongly disagree 40 28 12 3

Interpretation while half of the respondents appreciate the need for having potential in ONGC and other respondents do not understand its rational and implication for growth

11. Does the potential appraised help in succession planning in ONGC yes Percentage 63.4 No 36.6

Interpretation most of the employees are partially agreed for this statement that means PAR system partially help in succession planning.

12. Succession planning is implement on the basis of feedback through potential appraisal Scaling Strongly agree Percentage 12 Agree Natural Disagree Strongly disagree 32 30 11 6

Interpretation mostly the employees remain neutral for the succession planning should be implemented on the bases of PAWI while 32 of them remain agree with the statement.

13. There should be potential appraisal once in a year and information should be given to employees about their future prospects Scaling Strongly agree Percentage 20 Agree Natural Disagree Strongly disagree 37 15 20 8

Interpretation A sizable majority is for having PA in ONGC once in three years to inform the employees about their likely future growth.

14. The performance system strengthen the relationship between superior and subordinate for better performance Scaling Strongly agree Percentage 19 Agree Natural Disagree Strongly disagree 26 34 12 9

Interpretation Most of the employees remain about the relationship about the relationship subordinate and superior for better performance while 26 percent agree with the statement.

15. The appraisal system encourages open communication between each appraiser and appraisee through performance review. Scaling Strongly agree Percentage 10 Agree Natural Disagree Strongly disagree 25 15 42 8

Interpretation A comparatively large segment of respondents disagree that appraisal system encourages open communication between each appraisee through reviews.

16. The appraisal system encourages the appraiser to have common understanding of all factors (individual organizational & environmental) affecting the performance of the appraisee Scaling Strongly agree Percentage 11 Agree Natural Disagree Strongly disagree 15 39 19 26

Interpretation A comparatively remains neutral with the above question while 26 of employees arestrongly disagree with the statement.

17. There should be potential once in a year and information should b given to employee about their future prospects Scaling Strongly agree Percentage 20 Agree Natural Disagree Strongly disagree 37 15 20 8

Interpretation A sizable majority is for having PA in ONGC once in three years to inform the employee about their likely future growth.

18. Performance Appraisal in ONGC from basis for the human competencies. Scaling Strongly agree Percentage 15.4 Agree Natural Disagree Strongly disagree 45.6 26 7 6

Interpretation Mostly the employee agree with the human competencies in the performance system in ONGC while partially remain neural and others remain disagree.

19. There is a need for further upgradation of performance appraisal format which address the development needs of the employees.

Scaling Strongly agree Percentage 15

Agree Natural Disagree Strongly disagree 30 16.6 22 13.8

Interpretation A significant chink of employees subscribe to the view that PAR in ONGC needs up gradation to meet the development needs of the employees

What are the areas where this organization needs to improve for the appraisal system for more continuous development of employee and building strong relationship? Yes No 52% 28%

No response 20%

Interpretation : It was seem that majority of respondents does not reply hence some of them said that for a good working organization environment there must be presence of values like openness, enthusiasm, mutual trust, and collaboration. ONGC need to conduct job analysis/role analysis exercises to rationalize in HR apparatus. And also, identify the job content in terms of duties responsibilities methods, techniques and system procedures.

Limitations

LIMITATIONS 1- Since ONGC is a multi-disciplinary and multi work centre organization (Scattered all over the country) it becomes very difficult to include employees form all the disciplines, all over the work centres and all the levels in the study. However, attempt has been made to include persons of different disciplines and different levels working in ONGC, Dehradun. 2Though this is the case of judgment sampling, there is a possibility that the respondents might have responded in a casual and random manner. 3Since the sample size is too small comprising of 100df respondents for a vast organization of 40,000 employees the data may not be true representative of the actual scenario and responses may be indicative of the local situation.

Conclusion

CONCLUSION Performance Appraisal system needs total revamping and reorientation in view of changing business competitive

environment and should recast on professional lines. PAR needs to use as a real development tool for employees who identifies their development needs for helping them perform their work more efficiently and effectively leading to greater organizational productively. Currently, the PAR system is used more as a paper work, then as a tool for improving efficiency of the individual. Indiscriminate promotions in ONGC have resulted in inversion of conventionally accepted pyramid structure manpower. Only need based promotions with adequate transparency and well defined long term policy is the need of the hour. Reward administration needs strengthening as an efficient HRD tool to motivate real performers for others to emulate and it must be linked with performance appraisal system. The concept of potential may be experimented within ONGC to identify executive with higher potential to assume higher

organizational responsibilities and the process may be carried out once in three years. Human resources fully committed to any change and to continue the process of change in the organization as per requirement of the changing environment along with the technologically manpower with various standards of

competitiveness is need of the time in ONGC. People should be dynamic, capable of assuming responsibility and adaptable to change. In a competitive environment like the present one should be well prepared, plan the act according to well laid out strategy and adapt to the requirement and demands of the situation of develop competencies like job related skills and knowledge so that they contribute to their fullest to the organizational efficiency and be able to cope with the pressure changing environment.

Suggestion

SUGGESTION

Based on the study the following suggestions are being made to strengthen the presence PAS in ONGC for improving the performance efficacy of its human resources which are vital elements for achieving the objectives and targets in the competitive and dynamic environment. Performance Appraisal format needs up gradation and should identify the development needs of the employees. It should be made both evaluative and development oriented in nature. Counseling should be taken seriously by appraisee and appraiser and it should be done more frequently to attain the development goal of PAR system. Globalization and liberalization in India is al comparatively recent phenomenon so most of the industries are not well equipped to face the challenges of changing environment and

building a competitive edge. Specific training programmes are to be designed and development for inculcating such skills in the employees. Training p rogrammes on organization development should be organized at all levels and specific thrust on productively improvement and cost techniques shall be placed in training progremmes. There should be a consistent policy regarding the training and the need should be considered seriously as per the recommendation in the PAR form. Periodic organizational diagnoses survey need to be carried out to asses the organization health and to suggest remedial measures in case of any observed organization pathology. Accountability and fixing of responsibility is one area in ONGC that is week and needs special consideration. Single point responsibility and accountability need be defined and fixed unambiguously.

Develop a cultural system where things do not move on the basis of bureaucratic definitions or boundaries but on operational priorities for improving the productivity of ONGC.

BIBLIOGRAPHY Books Referred 1- HR Vision 2005 (ONGC) HRM Corporate Journal 2- ONGC Quarterly in house Journal on HR. 3- The story of ONGC by I.A. Farooqi 4- Practical Performance appraisal by Gower press.

WEBLIOGRAPHY Websites Visited www.ongcindia.con www.ongcreports.com

Bibligoraphy

Annexure

QUESTIONNAIRE NAME(OPTIONAL):DESIGNATION :LENGTH OF SERVICE :1- Performance Appraisal System is an important tool to evaluate performance of employees in ONGC. 1. Strongly Agree 5. Strongly Disagree 2. Agree 3. Neutral 4. Disagree

2. The objective of appraisal system are clear to all employees 1. Strongly Agree 5. Strongly Disagree 2. Agree 3. Neutral 4. Disagree

3. The appraisal system in ONGC ensures that every individual is cleatly aware about its functions and responsibilities. 1. Strongly Agree 5. Strongly Disagree 2. Agree 3. Neutral 4. Disagree

4. The performance appraisal system in ONGC provides a platform for identifying training needs of employees. 1. Strongly Agree 5. Strongly Disagree 2. Agree 3. Neutral 4. Disagree

5. In ONGC the counseling is satisfactorily done to judge low performance and to improve his/her performance. 1. Strongly Agree 5. Strongly Disagree 2. Agree 3. Neutral 4. Disagree

6. Most of the training program are initiated after a need analysis has indicated that the program is needed. 1. Strongly Agree 5. Strongly Disagree 2. Agree 3. Neutral 4. Disagree

7. In ONGC \, the present performance appraisal system is able to focus on personality trait of employees for better performance. 1. Strongly Agree 5. Strongly Disagree 2. Agree 3. Neutral 4. Disagree

8. Promotion is the main objective of performance appraisal in ONCG 1. Strongly Agree 5. Strongly Disagree 2. Agree 3. Neutral 4. Disagree

9. Promotion and rewards are a major factor in influencing performance if administered objectively. 1. Strongly Agree 5. Strongly Disagree 2. Agree 3. Neutral 4. Disagree

10. Performance appraisal is carried out to assess the potential of employees to assign higher responsibility and more task. 1. Strongly Agree 5. Strongly Disagree 2. Agree 3. Neutral 4. Disagree

11. Dose the potential appraisal help in succession planning in ONGC 1. Yes 2. No.

12. Succession planning is implemented on the basis of feedback through potential appraisal. 1. Strongly Agree 5. Strongly Disagree 2. Agree 3. Neutral 4. Disagree

13. There should be potential appraisal once in a year and information should be given to employees about their future prospects 1. Strongly Agree 5. Strongly Disagree 2. Agree 3. Neutral 4. Disagree

14. The performance appraisal system strengthen the relationship between superior and subordinate for better performance 1. Strongly Agree 5. Strongly Disagree 2. Agree 3. Neutral 4. Disagree

15. The appraisal system encourages open communication between each appraiser and appraisee through performance review.

1. Strongly Agree 5. Strongly Disagree

2. Agree

3. Neutral

4. Disagree

16. The appraisal system encourages the appraiser to have common understanding of all the factors (individual, organizational & environmental) affecting the performance of the appraisee 1. Strongly Agree 5. Strongly Disagree 2. Agree 3. Neutral 4. Disagree

17. Appraisal system facilities growth and learning in the organization both for appraiser and appraisee 1. Strongly Agree 5. Strongly Disagree 2. Agree 3. Neutral 4. Disagree

18. Performance appraisal in ONGC form basis for the human competencies. 1. Strongly Agree 5. Strongly Disagree 2. Agree 3. Neutral 4. Disagree

19. There is a need for further upgradation of performance appraisal format which address the development needs of the employees. 1. Strongly Agree 5. Strongly Disagree 2. Agree 3. Neutral 4. Disagree

20 What are the areas where this organization needs to improve for the appraisal system for more continuous development of employee and building a strong relationship ?