Escolar Documentos
Profissional Documentos
Cultura Documentos
ON
“EFFECTIVENESS OF PERFORMANCE APPRAISAL SYSTEM”
OF
Submitted in
Partial fulfillments of
BACHELOR OF BUSINESS ADMINISTRATION
Program of
H.N.B. Garhwal University, Srinagar
Batch 2008-2011
SUBMITTED TO : SUBMITTED BY
MR. PANKAJ AGGARWAL FIROZ KHAN
MANAGEMENT FACULTY BBA – VTH SEM.
(BATCH 2009-2012)
1
CONTENTS
2
CONTENTS
3
INDUSTRY PROFILE
4
INTRODUCTION
Oil & Natural Gas Corporation Limited (ONGC) is one of the world’s
largest integrated exploration and production companies, having the
right 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.
• Tops the Business India Super 100 list (among 284 Indian
Companies having Sales in excess of Rs. 500 Crore), based on
Sales, Profit After Tax (PAT), Net Fixed Assets and Market
Capitalization (Dec 2006)
5
• Topped the visibility metrics in Indian Oil and Gas Sector and the
only PSU in the top 10 list of Indian Corporate newsmakers.
• CRISIL and ICRA also reaffirmed ONGC the highest credit rating of
AAA and LAAA respectively.
Financials (2007-08)
6
MAJOR PRODUCTS OF O.N.G.C
Crude Oil.
Natural Gas.
Liquefied petroleum Gas.
Natural Gasoline.
Ethane/Propane.
Achromatic Naphtha.
Superior Kerosene Oil.
7
8
COMPANY PROFILE
9
A BRIEF HISTORY OF ONGC
PHASE – I (1947-1960)
During the pre-independence period, the ASSAM oil company in the
Northeastern and at tock Oil Company in northwestern part of the
undivided INDIA was the only oil producing oil in the country, with
minimal exploration input. The major part of INDIAN sedimentary
basis was seemed to be unfit for development of oil and gas
resources.
PHASE – II (1961-1990)
Since its inspection ONGC has been instrumental in transforming
the country’s limited upstream sector into a large viable playing
field, with its activities spread throughout India & significantly in
overseas territories. In the inland areas, ONGC not only found new
10
resources in ASSAM but also established new oil province. Company
basin (GUJRAT), while adding new petroliferous areas in the ASSAM
– ARAKAN fold belt and east cost basins (both inland & offshore).
ONGC went offshore in early 70’s and a giant oil field in the form
of BOMBAY high, now known as MUMBAI HIGH. The discovery,
along with subsequent discoveries of huge oil & gas in western
offshore changed the oil scenario of the country. Subsequently, over
5 billion tones of hydrocarbons, which were present in the country,
were discovered. The most important contribution of ONGC, however,
is its self- reliance & development of core competence in E&P
activities at a globally competitive level.
During March 1999, ONGC (IOC) a downstream giant & gas authority
of Indian Limited (GAIL) - the only gas marketing company, agreed to
have cross holding in each other’s stock. This paved the way for
long term strategic alliances both for the domestic & overseas
business opportunities in the energy value chain, amongst
themselves. Consequent to this the Government sold off 10% of its
share holding in ONGC to IOC & 2.5% to GAIL. With this the
government holding in ONGC came down to 84.11%.
In the year 2002-2003, after taking over MRPL from the A.V Birla
group, ONGC diversified in to the down stream sector. ONGC will
soon be entering in to the retailing business. ONGC has also entered
the global field through its subsidiary, ONGC VIDESH LIMITED
(OVL). ONGC has made major investment in Vietnam, Sakhalin &
Sudan and earned its first hydrocarbons revenue from its investment
in Vietnam.
11
ONGC's Videsh Ltd.
12
MISSION, VISION & OBJECTIVES
13
ONGC VISION:
To be world-class Oil and Gas Company integrated in energy
business with dominant Indian leadership and global presence."Not
only had India... set up her own machinery for oil exploration and
exploitation... an efficient oil commission had been built where a
large number of bright young men and women had been trained
and they were doing good work."
ONGC MISSION:
WORLD CLASS
1. Dedicated to excellence by leverage competitive advantages in R &
D and technology with involved people.
2. Abiding commitment to health, safety and environment to enrich
quality of community life.
3. Foster a culture of trust, openness and mutual concern to make
working a stimulating and challenging experience for our people.
4. Strive for customer delight through quality product and services.
14
● INTEGRATED IN ENERGY BUSINESS
1. Focus on domestic and international Oil and Gas exploration and
production business opportunity.
2. Provide value linkages in other sectors of energy business.
3. Create growth opportunities and maximize shareholder value.
15
ONGC OBJECTIVES
16
ONGC SPECIALISES IN
17
FINDINGS
SWOT ANALYSIS
18
STRENGTH:
WEAKNESS:
The company’s earnings were insulated from the vagaries of global crude oil
prices. This will be a weakness for the company when the government
decontrols the oil sectors.
The company was realizing only 77% of the import parity pricing, which was
expected to increase by 3.5% every year till 2002.
There has been no major discovery in the past.
Deep water development steel a embryonic stage
Huge exodus to abroad, especially middle east.
Procedural constraints affecting the process of resource acquisition, hiring
drilling rigs or acquiring land.
Non transparent subsidy formula
Artificial insulation from price the gas pricing issue.
Drilling and exploration in forest lands/river bed might be required in greater
interest of energy security and growth..
OPPORTUNITIES:
The number of sedimentary basins in India is about 26, out of which 17
have been discovered. Moreover, production has been commenced in 6
of them. Hence, there is tremendous opportunity for growth in the future.
Oil exploration and development has been open to the private sector,
hence ONGC can overcome resource crunch by setting up joint venture
with foreign companies.
ONGC has already obtained marketing rights for transportation fuels,
this opens up the opportunity to augment ONGC’s profitability through
value addition consumer and retail marketing.
Rising affordability for investing in R&D technology acquisition and
assimilation
19
Empowered policy might help in fast and direct access to latest
technology
Strong Indian Academia : Greater industry academia synergy possible.
Globalization and liberalization has already made Indian market
attractive.
Regulatory bodies may become facilitator through guidance making
energy security a prime national agenda would remove many
hierarchical constrictions.
More empowerment of OVL essential for energy security Time, secrecy
and aggressive bidding key factors in acquiring overseas assets.
In R & D for new and alternate source of energy.
THREATS:
20
LEVEL OF STRUCTURE OF THE ONGC
LEVEL DESIGNATION
Class I
E9 - Regional Director
E8 - Group General Manager
E7 - General Manager
E6 - Deputy General Manager
E5 - Chief Manager
E4 - Manager
E3 - Deputy Manager
E2 - Dr. (P & A) Officer
E1 - Assistant Officer
Class II
E0 - Assistant (P & A)
Class III
3-5 - Jr. Suptd.
3-4 - AG I
3-3 - AG II
3-2 - AG III
3-1 - R/Keeper GD II
Class IV
4-3 - Attdt. GD I
4-2 - Attdt. GD II
4-1 - Attdt. GD III
21
ORGANIZATIONAL CULTURE
INNOVATION:
ONGC have always had the interests of the large and multi-
disciplined workforce at heart. By enabling workers to participate in
management, they are provided with an Informative, Consultative,
Associative and Administrative forum for interactive participation
and for fostering an innovative culture.
TEAM WORKING:
ONGC believes on creating a highly motivated, vibrant & self-driven
team. The Company cares for each & every employee and has in-
built systems to recognize & reward them periodically.
ENTHUSIASM:
Enthusiasm plays an important role in the employee performance
and satisfaction in order to keep its employees motivated ONGC
has incorporated schemes such as Reward and Recognition
Scheme, Grievance Handling Scheme and Suggestion Scheme.
22
INFORMATION AND PARTICIPATION:
ONGC has evolved a communication strategy to ensure
involvement and participation among employees in various work
centers. Exclusive workshops and interaction/ brain storming
sessions are organized to facilitate involvement of employees in
project Shramik.
23
ORGANISATION CHART
24
HUMAN RESOURCE IN ONGC
25
HUMAN RESOURCES MANAGEMENT
26
HR POLICIES AT ONGC
27
ONGC- The torch bearer in the area of HRD
ONGC is not only the largest profit making company in the country,
it has also been a torch bearer in the sphere of HRM. Corporation’s
mission includes some points on which training and development
have a significant bearing. These points are given under the head
“WORLD CLASS”, and they are:
1. Dedicated to excellence by leveraging competitive advantages in
R&D and technology with involved people.
2. Imbibe high standards of business ethics and organizational
values.
Foster a culture of trust, openness and mutual concern to make
working a stimulating & challenging experience for our people.
3. Abiding commitment to health, safety and environment to enrich the
quality of community life.
4. Strive for customer delight through quality products and services.
ONGC is one of the few organizations that have a formal “HR Vision”, “HR
Mission” and “HR Objectives”.
28
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.
Over 18,000 experienced and technically competent executives mostly
scientists and engineers from distinguished Universities / Institutions of
India and abroad form the core of the company's manpower. They include
geologists, geophysicists, geochemists, drilling engineers, reservoir
engineers, petroleum engineers, production engineers, engineering &
technical service providers, financial and human resource experts, IT
professionals and so on.
29
HR VISION, MISSION & OBJECTIVES
HR VISION
“To attain organizational excellence by developing and inspiring
the true potential of company’s human capital and providing
opportunities for growth, well being and enrichment.”
HR MISSION
“To create a value and knowledge based organization by
inculcating a culture of learning, innovation and team working
and aligning business priorities with aspiration of employee’s
leading to development of an empowered, responsive and
competent human capital.”
HR OBJECTIVES
To develop and sustain core values.
To develop business leaders for tomorrow.
To provide job contentment through empowerment,
accountability and responsibility.
To build and upgrade competencies through virtual learning,
opportunities for growth and providing challenges in the job.
To foster a climate of creativity, innovation and enthusiasm.
To enhance the quality of life of the employees and their
family.
To inculcate high understanding of ‘Service’ to a greater
cause.
HR STRATEGY
To meet challenging demands of the business
environment, focus of the HR strategy is on change of the
employees, ‘mindset’
Building quality, culture and resources.
Re-engineering and Redeployment for maximizing
utilization of HR potential.
To build and upgrade competencies through virtual
learning, opportunities for growth and providing challenges
in the job.
Re-strengthening mutual faith, trust and respect.
Inculcating a spirit of learning & enjoying challenges.
Developing Human Resource through virtual learning,
providing opportunities for growth, inculcating involvement
and exposure to benchmarking in performance.
30
ROLE OF HR
Alignment of HR vision with Corporate Vision.
Shift from support group to strategic partner in business
operations.
HR as a change agent.
Enhance productivity and performance by developing
employee competency and potential.
Developing professional attitude and approach.
Developing ‘Global Managers’ for tomorrow to ensure the
role of global players.
Measuring HR Performance
HR Parameters have been incorporated in the MOU by ONGC
since 1994-95, to systematically and scientifically evaluate
effectiveness of HR Systems, which enables and facilitates time
bound initiatives.
HR Parameters of MoU for 2009-2010
Mentoring and coaching
HR Audit
Engagement Survey
Continuous professional education credit course for finance executives
of ONGC
31
MOTIVATION
MOTIVATION
32
The study of human motivation is of great importance in any theory of
management. Man is by nature constantly motivated. He is an organic
system, not a mechanical one. The inputs of energy such as food, water
etc., are converted by him into outputs of behavior. His behavior is
determined by relationships between his characteristics as organic system
and the environment in which he moves. Management involves creation
and maintenance of environment for performance of individuals working
together in groups towards accomplishment of common objectives and
therefore the manager cannot perform his functions without knowing what
motivates people.
Need
Goal
Incentives / Relief
33
Relief's/Incentives: At this stage there is a reduction of the driving state
and subjective satisfaction and relief when the goal is reached.
TYPES OF MOTIVATION
1. Achievement Motivation: It is the drive to pursue and attain goals.
An individual with achievement motivation wishes to achieve
objectives and advance up on the ladder of success. Here,
accomplishment is important for its own shake and not for the
rewards that accompany it
2. Affiliation Motivation: It is a drive to relate people on a social basis.
Persons with affiliation motivation perform work better when they are
complimented for their favorable attitudes and co-operation.
3. Competence Motivation: It is the drive to be good at something,
allowing the individual to perform high quality work. Competence
motivated people seek job mastery, take pride in developing and
using their problem-solving skills and strive to be creative when
confronted with obstacles. They learn from their experience.
4. Power Motivation: It is the drive to influence people and change
situations. Power motivated people wish to create an impact on their
organization and are willing to take risks to do so.
34
5. Attitude Motivation: Attitude motivation is how people think and
feel. It is their self confidence, their belief in themselves and their
attitude to life. It is how they feel about the future and how they react
to the past.
MOTIVATING TOOLS
The methods of motivating employees today are as numerous and
different. The best employee motivation efforts focus on what
employees deem to be important. It may be that employees within
the same department of the same organization will have different
motivators. Many organizations today find that flexibility in job design
and reward has resulted in employees' increased longevity with the
company, increased productivity, and better morale. According to
extensive research, motivation includes a variety of tactics designed
to address the issues of emotion, support, capability and alignment
that go into increasing performance through people.
Job enlargement: Job Enlargement is the horizontal expansion of a
job. It involves the addition of tasks at the same level of skill and
responsibility. It is done to keep workers from getting bored.
Examples: Small companies may not have as many opportunities for
promotions, so they try to motivate employees through job
enlargement.
Job enrichment: Job Enrichment is the addition to a job of tasks
that increase the amount of employee control or responsibility. It is a
vertical expansion of the job as opposed to the horizontal expansion
of a job, which is called job enlargement. Many jobs are monotonous
and unrewarding. Workers can feel dissatisfied in their position due
to a lack of a challenge, repetitive procedures, or an over-controlled
authority structure. Job enrichment tries to eliminate these
dysfunctional elements and bring better performance to the
workplace. Examples: We use job enrichment to make work more
challenging and rewarding for our employees.
Job Rotation: Job rotation is the movement between different jobs.
Job rotation involves the movement of employees though a range of
jobs in order to increase interest and motivation.
One day a person may be working in part of the factory and the next
day they may work in a different part. This avoids the employee
becoming bored and with job rotation they are doing different jobs all
the time and learning new skills. Multi-skilling is when people have
many skills so they are able to carry out many different jobs. Multi
skilling benefits the employer as if they are short of staff in one area,
they can move people across.
35
THEORIES OF MOTIVATION
Following of the theories of the motivation
NEED FOR POWER : The individual exhibiting this need as the dominant
one derives satisfaction from his or her ability to control others. Actual
achievement of desired goals is of secondary importance to the high &
Power individual; instead the means by which goals are achieved (the
exercise of power) are of primary importance. Individuals with a high &
Power derive satisfaction from being in positions of influence and control.
Organizations that foster the power motive tend to attract individuals with a
high need for 'power' (for example military organization).
NEED FOR AFFILIATION: Individuals 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. If asked to choose between working at a task with those
who are technically competent and those who are their friends, high &
Affiliation individuals will chose their friends,
NEED FOR ACHIEVEMENT: Individuals high in. derive satisfaction from
reaching goals. The feeling of successful task accomplishment is important
36
to the high achiever. High achievers prefer immediate feedback on their
performance and they generally undertake tasks of moderate difficulty
rather than those that are either very easy or very difficult. They also prefer
to work independently so that successful task performance (or failure) can
be/related to their rather than the efforts of someone else.
ARGYREOUS THEORY:
CHILDREN TO MATURITY
POSITIVELY TO ACTIVITY
SUBORDINATE POSITION TO
SUPER SUBORDINATE POSITGN
LACK OF AWARENESS TO
FULL OF AWARENESS
RESERVE TO BE SOCIAL
NEGATIVE TO POSITIVE
If we follow (-)ve then we will child and if we take (+) ve we will matured.
URWEEKZ THEORY :
37
This theory work on Japanese Management practices, which says
that organization should behave as a family and should create good
interpersonal relationship in order to complete the objective.
This theory emphasis on good relation between management and
subordinates.
This theory emphasis on open door policy.
This theory emphasis on human resource and development.
This theory says that organization should create a that kind of
culture, where every human being can draw and achieve.
This theory emphasis equal opportunity to all employees.
This theory emphasis employee participation and participation in
decision making.
Mc.Gregas Theory
X- Theory Y Theory
X – Theory :
It indicate negative which says that people are being, irresponsible,
lack of awareness, don’t likes achievements, love, politics, jealous,
inferior complex, grow, to work, to develop their personality, are less
ambitions, bad attitude and perceptions and also they just tries to
pass the time.
Y – Theory :
The Y theory indicates that people are not born passive so they can
change themselves through learning, training, achievement. The
people are responsible, like achievement, like to grow, love social
38
relationship, love participation and if they get proper training and
opportunities, then they can prove themselves.
Efforts
Performance
Satisfaction
Motivation
39
MASLOW THEORY OF MOTIVATION :
PSYCHOLOGICAL NEEDS
SAFETY NEEDS
SOCIAL NEEDS
SELF ACQUISITION
Maslow Hierarchy of Needs (1954, 1968):
This is one of the earliest and best-known need based theory of
motivation known as "Hierarchy of need theory" which was
developed by Abraham Maslow.
Maslow proposes that all human beings have universal needs, and
those needs could be categorized into five levels of needs.
1. Physiological needs: This is the lowest level of need, also known
as basic needs. They include hunger, thirst, sleep etc.
2. Safety/security needs: These include needs relating to physical
safety, adequate housing, and economic and social security.
3. Social needs: Also known as love and belonging needs. These
include the need for love and needs to belong.
4. Esteem needs: This is the higher level of need. It includes the need
for self-esteem and esteem for other and need for recognition.
5. Self-actualization: This is the highest level of need. This includes
the need for self development and the need to attain highest
fulfillment of one's capability and endowment.
40
HERTZBERG THEORY
MOTIVATION FACTOR
ACHIEVEMENTS
RECOGNITION
GROWTH
DEVELOPMENTS
YOUR JOB
MAINTENANCE
MAINTENANCE FACTORS
COMPANIES POLICIES
ADMINISTRATION
ORGANIZATION CULTURE
INTERPERSIONAL RELATIONSHIP
SUPERVISIONS
SECURITY
41
HERTZERG THEORY WORKS ON TWO FACTORS.
1. Hygiene factors or maintenance factor
2. Motivation factor.
Hygiene factors: -
Those factors -such as company policy and administration, supervision,
and salary, which lead to job dissatisfaction, are the hygiene factors. When
these factors are adequate in a job, they placate workers. When these
factors are adequate, people will not be dissatisfied.
Motivation factors: -
The intrinsic factors, such as achievement, recognition, the work itself,
responsibility, advancement, and growth that seem to be related to job
satisfaction are the motivation factors.
42
VARIOUS SCHEMES FOR EMPLOYEES
MOTIVATION IN ONGC:
In order to keep its employees motivated the company has incorporated
certain schemes such as Reward and Recognition Scheme, Grievance
Handling Scheme, Suggestion Scheme and many others.
The various schemes that are practiced at ONGC are as follows-
Holiday Home Scheme
Leave fare assistance scheme
Children Education Assistance scheme
Financial assistance-advances for house building / children higher
education
Medical Facilities.
Incentive scheme
Suggestion scheme
Awards scheme
Reserves Establishment honorarium
Holiday Home Scheme :
Scope :
To provide “Holiday Homes” to the employees of the corporation at
certain designated centers for rest and recreation. As an interim
measure, the scheme provides monetary subsidy to the employees
and their family members, when they avail of holiday home
assistance under this scheme.
Applicability:
All employees of the corporation and their family members as
defined in this scheme.
Family for the purpose of the scheme shall mean as under :
o For employees of the corporation who joined on or before 1st
June 1987: Employee, his/her spouse and not exceeding first
three unmarried dependent children; and
o For employees of the corporation who joined on or after 2nd
June 1987: Employee, spouse and not exceeding first two
unmarried dependent children.
Admissibility:
43
The holiday home facility will be admissible to an employee during
leave for rest and recreation of any place of choice in India (Except
Home Town) or any place/places in a foreign country / countries.
However, reimbursement shall be as per the existing rates only and
no other monetary assistance shall be provided by the company.
The employee should normally obtain prior permission.
Entitlement:
The holiday home facility shall be admissible once in a block of two
years for 10 days or both the years for 5 days each.
44
Applicability
The scheme shall apply to the following: -
All full time employees who have completed one year of continuous
service in the corporation.
The persons who are on deputation with the corporation, employees
joining the Corporation and retaining lien in their previous
organization, when the terms and conditions of deputation so
provide.
Re-employed employees, who have completed their one year
continuous service in the corporation.
Admissibility of Leave Fare Assistance
LFA will be admissible only to those employees who have completed
their one year continuous service in the corporation on the date of
journey, be it, his family or he himself.
The admissibility of LFA is also during leave, which include causal
leave.
If the spouse of the employee is employed in government service or
public sector undertaking or any other autonomous body, then the
employee shall not be entitled to LFA claim under this scheme. But
when the spouse is employed in a private organization then the
above restriction shall not apply.
45
Entitlement
The employee and his family both are entitled to this scheme.
This scheme shall be once every year(in each block of four years)
Encashment
The officers and employees are entitled to encase their LFA due at
their option.
No CPP charges are admissible only in respect of LFA encashment.
Children Education Assistance Scheme
Scope
The main purpose is to provide educational assistance to the
employees so that it becomes easier for them to educate their
children properly on account of high cost of education.
Applicability
This scheme is applicable to all the employees of the company in
respect of their children.
Kinds of Assistance
An employee shall be eligible for reimbursement of tuition fees.
Merit scholarship shall be granted to the wards of the employees on
securing certain percentage of marks specified by the government.
The employees who are transferred from one station to another in
the interest of ONGC are eligible for the reimbursement of admission
charges, as per the actual, subject to the maximum of Rs. 1500/-per
child limited to two children per employee.
ONGC also grant special awards to those wards of the employees
who have secured positions amongst first ten in the merit list of the
board or university concerned.
The employees, whose children stay in a residential school for the
purpose of their education, are entitled to the hostel subsidy. The
transport subsidy is provided to the employees who are posted in
the cities where no transport facilities are provided for school going
children by the company.
The transport facility is provided to the school going children of the
employees at various work centers, and the transport subsidy is not
reimbursed and transport charges are realized from them.
The children of the employees who are staying away from them for
their studies will be allowed reimbursement of second class rail fare
twice a calendar year from their institution to the place of posting of
the employees and back to the institution.
Financial Advance for ward higher education.
46
Financial Assistance-Advances
House Building Advance Scheme (under revision)
Scope:
This advance can be extended for anyone of the following purpose: -
Purchase of land and construction of house,
Enlargement of existing house.
Purchase of ready built or under construction flat from private
builders/co-operative housing society.
Purchase of flats from state housing boards/authorized housing
authorities/agencies
Repayment of loan taken from government institutions for
construction/purchase of house.
Applicability:
HBA is admissible to regular employees once in entire service
period.
The employees should have been in seven years regular service in
ONGC. This will be admissible to only one person, if both husband
and wife are employed in ONGC.
Amount of Advance:
75 times of Basic Pay + SP + Dearness Allowance or Rs.750000/-
or actual cost of proposed house, whichever is less.
80% of total cost of the house, subject to the ceiling in (i) above if
the house is in rural area.
2nd HBA up to Rs.300000/-for enlargement of house. 1st and 2nd HBA
taken together should not exceed Rs.750000/- or 75 month Basic +
DA whichever is less.
Rate of Interest:
Amount Rate of Interest
Rs.30,001/-toRs. 3,00,000/- 6%
47
Retiring after 20 years 50%
Penal Interest
Penal interest at the rate of 15%p.a. will be charged over and above
the normal rate of interest for non utilization of the advance for the
said purpose within the stipulated time limited.
Conveyance Advance Scheme(under revision):
Objective:
The purpose to grant this scheme is:
To purchase a car/scooter/motor cycle/moped.
To repay the balance amount of loan taken by an employee from his
previous employer for purchase of vehicle.
Applicability:
This scheme shall be applicable to all the employees.
48
Amount of Advance: First Occasion
Type New & Old Eligibility Recovery Schedule
Car 90% of actual cost of For new entrants 200 installments
the car or 20 months at E- 1 & above
Basic pay up to a level-6years
maximum of Rs. 3, service at ONGC.
50000/- whichever is For others the
less. basic pay must be
Rs. 130007-
Scooter/Motor cycle New vehicle-90% of After completion 100 Installments
the cost or Rs.45000/- of initial probation
whichever is less. Old period an on
Vehicle-90 % of the attainment of
cost or Rs. 350007- basic pay of Rs.
whichever is less. 60007-
49
Medical Facilities
Medical facilities are provided by ONGC to its employees through
government hospitals, ONGC dispensaries, central government and
few others.
These facilities are applicable to all ONGC employees and their
dependant family members.
These facilities include all kinds of treatments.
The medical facilities are available to Non-ONGC personnel also
who are not defined as employees. Such personnel are CISF
personnel's, kendriya Vidyalaya employees of ONGC project and
other freedom fighters.
Medical officers of ONGC are authorized to issue medicines
prescribed by authorized medical attendants of ONGC and
government whenever any patient is referred for outside treatment.
Employees are permitted to obtain medical treatment outside India
for himself or for a member of his family for any treatment specified
in the manual.
Reimbursement of cost of imported medicines essentially required
for life saving and other purposes where cash receipts are not
issued by the chemists, has to be made in relaxation of CSMA rules.
Reimbursement of cost of spectacles/contact lenses shall be
applicable to all the regular employees who have rendered at least
one year service in ONGC once in three years.
Medical facilities are also applicable to all retired employees and
their spouses of ONGC.
Incentives scheme
There are various incentive schemes. They are:-
Incentives for acquiring higher professional qualification.
Incentive for adopting small family norms.
Incentive for learning regional languages Incentive for Hindi work
Incentive scheme for acquiring higher qualification. Objective
To encourage the employees to enhance their professional competence
by acquiring higher qualification.
Nature of incentives
Incentive for acquiring higher professional qualification.
Incentive for acquiring Ql, Q2, or Q3 qualifications.
Scope
This incentive shall be payable to executives who acquire higher
education in their respective disciplines
The incentive scheme for acquiring Ql, Q2, or Q3 qualification is
meant for employees who do not possess Ql, Q2 or Q3
qualifications. The scheme includes:-
50
An incentive of For executives and class III employees who
Rs.7500/- acquire Ql qualifications for E 1 level induction
post.
51
• Productivity Honorarium-paid on the basis of improvement in
productivity.
• Reserve Establishment Honorarium (REH)/Ex-Gratia in lieu of Bonus
- paid on the basis of Reserve Accretions .
The salient features of these Schemes are :
A. Performance Incentive Scheme: Job incentive
Job incentive is paid to the field crews based on completion of jobs
of Drilling, Work-over, Seismic Survey etc. on completion of
respective jobs (duly accepted by the Quality Assurance Group)
within pre-determined norm time and time saved thereof in the
following jobs :
i) Drilling
ii) Production Testing
iii) Logging
iv) Work-over
v) Well stimulation and
vi) Seismic Surveys including VSP Survey
Job incentive is evaluated at Asset/Basin level by the respective
Asset/Basin Incentive Committee. The calculation is done on the
basis of the defined formula and the payment is made on the Basic
Pay of the individual during the job period according to his
contribution/attendance to the job. No job incentive is paid for off
days, casual leave and compensatory off for all shift patterns.
BU Incentive (Half yearly)
Evaluation of Business Unit incentive is be carried out half-yearly at
the (Asset/ Basin/Plant/ Services) level. It is evaluated on the basis
of performance against various parameters and different weights
assigned thereof (totaling 1.00) and other provisions of the scheme.
It is paid only when the overall weighted achievement of the unit is
101% or more (restricted to 115%).
The Business Unit incentive (half yearly) is paid on overall weighted
achievement of the target ranging between 101-115% of the
respective business unit. The payment to an individual posted in the
Business unit is made ranging 5% to 17.5% corresponding to the
overall weighted achievement of the business unit. Also the
employees who are posted and working in field duties are paid
additional 2% over and above the aforesaid rate.
52
between 5% to 13.5% with respect to the weighted achievement
ranging between 101% to 115%,
53
LITERATURE REVIEW
1. Employees Motivation in groups: an alternative multi-rater
feedback model.
From: Employment Relations Record
Feedback from superiors can help the individual with setting his or her own
goals for performance improvement. Although much is written on different
performance management or appraisal systems, the authors have not
come across what their normative feedback model, as an alternative model
to multi-rater feedback models such as the 360 degree model, attempts to
achieve: peer appraisal in groups, in order to modify behavior and work
toward group objectives for business planning in alignment with
organizational goals. This article presents a model for normative feedback,
provides the ...
Paul
Macquarie Graduate School of Management, Macquarie University, Sydney
NSW
Robert \
Australian Graduate School of Management, University of New South Wales,
NSW
54
decreases cost or enhances quality confers immediate competitive
advantage on its creator and sets a standard for the rest of the industry to
follow. But once disseminated across the field of competition, it becomes
the standard. Now a new, yet more innovative, high motivation system
must be discovered that once more creates competitive advantage for its
inventors.
55
ABOUT THE PROJECT
Objective :
The purpose of this project is to check the effectiveness of the instrument
being used for motivation by ONGC.
Constructs:
Attitude towards the scheme
Model :
Variables :
Independent variable
Attitude towards the scheme
Dependant variable :
Effectiveness of the instrument
Operational definition :
Effectiveness of the instrument – the instrument involving leave fare
assistance, children education assistance, advance, medical
facilities, incentives, awards & suggestions are useful in motivating
the employees to work and contribute to the productivity.
Attitude towards the scheme positive response being shown towards
the scheme-positive response being shown towards the instrument
being used by ONGC i.e., employees of all the 3 class levels feel
that they are motivated.
56
RESEARCH METHODOLOGY
57
RESEARCH OBJECTIVES
1. To study the employees motivation in ONGC.
2. To analyze the awareness level of employees regarding motivation
process of the company.
3. Suggest ways to make it more effective.
4. To study and analyze the employees motivation policy in ONGC and
its effects on the employees with reference to executive and staff.
5. To assess whether the employees motivation policy in ONGC has
been effective in maintaining efficient manpower.
RSEARCH DESIGN:
SAMPLE DESIGN :
In this study stratified random sampling will be done for the all
employees of the ONGC
Sample Size : 40 employees.
Methodology :
Questionnaire will be designed in an internal level response format
so that the question can be measured. The questionnaire will be
developed and at the same time interview will also be conducted.
The thousand scale will be used for measurement.
1. Strongly Disagree
2. Disagree
3. Agree
4. Strongly Agree
Then the final score for the respondent will be the sum of his/her rating for
all items.
58
ANALYSIS AND INTERPRETATION
59
DATA ANALYSIS
Strongly Agree 10
Agree 80
Strongly Disagree 0
Disagree 10
Strongly Agree
Agree
Strongly Disagree
Disagree
60
2. Belief various welfare scheme for employees motivate to perform.
Strongly Agree 20
Agree 80
Strongly Disagree 0
Disagree 0
Strongly Agree
Agree
Strongly Disagree
Disagree
61
3. Employee motivation plays a important role for accomplishment the
Strongly Agree 50
Agree 35
Strongly Disagree 5
Disagree 10
Strongly Agree
Agree
Strongly Disagree
Disagree
62
4. ONGC paid good salary to employees
Strongly Agree 40
Agree 35
Strongly Disagree 10
Disagree 15
Strongly Agree
Agree
Strongly Disagree
Disagree
63
5. Medical facilities provided to me are a great incentives work to
ONGC.
Strongly Agree 55
Agree 45
Strongly Disagree 0
Disagree 0
Strongly Agree
Agree
Strongly Disagree
Disagree
64
6. Employees performance must be linked to permotion and
Strongly Agree 30
Agree 50
Strongly Disagree 0
Disagree 20
Strongly Agree
Agree
Strongly Disagree
Disagree
65
7. Performance appraisal is given importance by the management
Strongly Agree 25
Agree 70
Strongly Disagree 0
Disagree 5
Strongly Agree
Agree
Strongly Disagree
Disagree
66
8. Housing finance facility provided by ONGC to its employees
satisfactory.
Strongly Agree 25
Agree 45
Strongly Disagree 20
Disagree 10
Strongly Agree
Agree
Strongly Disagree
Disagree
67
9. Incentives for acquiring higher education provided by ONGC are
excellent.
Strongly Agree 25
Agree 60
Strongly Disagree 5
Disagree 10
Strongly Agree
Agree
Strongly Disagree
Disagree
68
10. Leave fare assistance provided to me has been adequate in
motivating me to work.
Strongly Agree 25
Agree 65
Strongly Disagree 0
Disagree 10
Strongly Agree
Agree
Strongly Disagree
Disagree
69
11. Transparency in assessment and feedback on performance,
Strongly Agree 15
Agree 55
Strongly Disagree 5
Disagree 25
Strongly Agree
Agree
Strongly Disagree
Disagree
70
12. Implementation of differential payment based on performance of
Strongly Agree 25
Agree 50
Strongly Disagree 5
Disagree 20
Strongly Agree
Agree
Strongly Disagree
Disagree
71
13. Differential pay package for core discipline.
Strongly Agree 15
Agree 35
Strongly Disagree 40
Disagree 10
Strongly Agree
Agree
Strongly Disagree
Disagree
72
14. Variables pay based on performance shall be introduced in our
compensation package.
Strongly Agree 10
Agree 45
Strongly Disagree 15
Disagree 30
Strongly Agree
Agree
Strongly Disagree
Disagree
73
15. Working environment of ONGC is helpful to individual development.
Strongly Agree 20
Agree 60
Strongly Disagree 5
Disagree 15
Strongly Agree
Agree
Strongly Disagree
Disagree
74
CONCLUSION
75
CONCLUSION
research being conducted, it can be concluded that the corporation with its
present employees motivation policy has been able to improve man power in
quality. The employees in the corporation are totally satisfied with their job.
76
RECOMMENDATION & SUGGESTION
77
RECOMMENDATION & SUGGESTION
78
It should also be considered that the employees get the opportunity
to learn new things in the organization which would help them in
their future career
Now talking about non monetary part, ONGC should know that the
employees should feel that they really have opportunities for their
career growth. They should encourage them so that they feel good
at their work
Performance appraisal should be given importance by the
management so that the employees should be motivated and which
gives results in the performance of employees and obviously it is
related to organization benefits to achieve their targets.
The enhancement of pre-scale on ceiling of housing building
advance scheme is suggested due to escalation a material cost.
In the end I would like to say that the head should always be
observing the employees of lower class levels and give them
recognition as well so that they are motivated. It is really important
regarding the companies interest and persons interest as well.
79
BIBLIOGRAPHY
80
BIBLIOGRAPHY
BOOKS:
Organizational Behaviour by S.P. Robbins.
Human Resource Management by Mathews & Tackson
Introduction to psychology III edition by Norman L Munn, L Dodge
Fernald, Peter S Fernald.
Introduction to psychology VII the edition by John R. Weisz, Clifford
T. Morgan, Richard A. King.
H.R. Manual of ONGC.
WEBSITE :
www.ongc.com
www.google.com
81
QUESTIONNAIRE
Respective Sir/Madam,
Designation- Level-
Department- Experience in ONGC-
Please indicate your views regarding the statement that follows on the given rating scale
of 1 to 4 and where:
1) Strongly agree
2) Agree
3) Strongly disagree
4) Disagree
Questions:-
1[ ] 2[ ] 3[ ] 4[ ]
1[ ] 2[ ] 3[ ] 4[ ]
1[ ] 2[ ] 3[ ] 4[ ]
1[ ] 2[ ] 3[ ] 4[ ]
1[ ] 2[ ] 3[ ] 4[ ]
82
6) I think that objectives assessment of employees performance must be linked to per
motion and performance related pay scheme in ONGC .
1[ ] 2[ ] 3[ ] 4[ ]
1[ ] 2[ ] 3[ ] 4[ ]
1[ ] 2[ ] 3[ ] 4[ ]
1[ ] 2[ ] 3[ ] 4[ ]
10) Leave fare assistance provided to me has been adequate in motivating me to work.
1[ ] 2[ ] 3[ ] 4[ ]
1[ ] 2[ ] 3[ ] 4[ ]
1[ ] 2[ ] 3[ ] 4[ ]
13) I belief that there should be differential pay package for core discipline .
1[ ] 2[ ] 3[ ] 4[ ]
14) I feel that variables pay based on performance shall be introduced in our
compensation package .
1[ ] 2[ ] 3[ ] 4[ ]
1[ ] 2[ ] 3[ ] 4[ ]
83