Professional Documents
Culture Documents
PROJECT REPORT
ON
PREFACE:
The project is done on the O.N.G.C. Firstly I got information about the economic position of the
ONGC, then about the industry, after that I have done at incentive scheme in ONGC ,
Incentive Scheme in ONGC has been in existence since late 60s 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 cant
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 therefore strongly realized for compilation that
has been titled as EMPLOYEE MOTIVATION REGARDING INCENTIVE SCHEMES AT
ONGC.
ACKNOWLEDGEMENT
We think if any of us honesty reflects who we are, how we get here, what we think we might do
well, and so far we discover a debt to others that spans written history. The work of same unknown
person makes our lives easier every day. We believe its appropriate to acknowledge all these
unknown persons, but it is also acknowledge those people, we know directly sharp our lives and our
work.
I express my gratitude to the Oil and Natural Gas LTD and Mr Dharmesh patel General manager
for giving me an opportunity for work with them and make the best of my project.
I specially thank to my trainers, Mr Rahul shah for constantly guiding and supporting me
throughout the training period. My heartfelt gratitude also goes out to the staff and employees for
cooperating and guiding me throughout my project.
I thank to my college R H PATEL INSTITUTE OF MANAGEMENT for being constant driving
force to put to practice, the theoretical knowledge that I imparted from the programme, I also thank
to project coordinators Mr DEEP SHAH and MR VIJAY VAGHELA for imparting there wisdom
on my thought process.
Last but not the least importance, I take this opportunity to thank my parents and friends who have
been with me and offered emotional strength and moral support.
DECLARATION
I TALPADA SWITU JAYESHBHAI hereby declare that the report for EMPLOYEE
MOTIVATION REGARDING INCENTIVE SCHEMES AT ONGC is a result of my own
work and my indebtedness to other work publications, references, if any, have been duly
acknowledged.
Place :
Date :
EXECUTIVE SUMMARY
TABLE OF CONTENTS
S.L. No.
1.
PREFACE
Contents
Page No.
2
2.
ACKNOWLEDGEMENT
3.
4.
EXECUTIVE SUMAMRY
COMPANY CERTIFICATE
4
5
5.
6.
CORPORATION PROFILE
PURPOSE OF THE STUDY
7
8
7.
8.
9.
INTRODUCTION OF ONGC
BASIC FEATURES OF ONGC
ORGANIZATIONAL SET OF
9
15
20
10.
11.
ONGC
RECOGNIZATION AND AWARDS
HR AT ONGC
21
23
12.
13.
28
58
CORPORATION PROFILE
Oil & Natural Gas Corporation Limited properly known as ONGC , republic Indias number
one company with significant company in industrial and economic growth of the country is a
leading 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
R H PATEL INSTITUTE OF MANAGEMENT
Study on incentive schemes & employee motivation with special reference to national oil
company ONGC Rajasthan Forward Base, Jodhpur is part of the regular programme for MAM of
Gujarat Tecnological University .
The supplementary objective of the study is to increase the efficiency and motivating the
employees .Superior and subordinates to maintain hormonal relationship between them while giving
emphasis on welfare schemes & its effectiveness. This scheme enhances the compensation and
needs improvement for covering all the employees in organization.
INTRODUCTION OF ONGC
COMPANY HISTORY
1947-1960:
During the pre-independence period, the Assam oil Company in the northeastern and Atoka oil
Company in northwestern part in of the undivided India were the only oil companies producing oil
in the country, with minimal exploration input. The major part of India sedimentary basins was
deemed to be unfit for development of oil and gas resources.
After independence, the national Government realized the importance oil and gas for rapid
industrial development and its strategic role in defense. Consequently, while framing the industrial
policy statement of 1948, the development of petroleum industry in the country was considered to
be of utmost necessity.
In 1955, Government of India decided to develop the oil and natural gas resources in the various
region of the country as the part of the public Sector development. With this objective, an oil and
natural gas directorate was set up towards the end of 1955, as a subordinate office under the then
R H PATEL INSTITUTE OF MANAGEMENT
ministry of natural resources and scientific research. The department was constituted with a nucleus
of geoscientists from the Geological survey of India.
1961-1990:
Since its inception, ONGC has been instrumental in transforming the countrys limited upstream
sector into a large viable playing field, with its activities spread throughout India and significantly
in overseas territories. In the inland areas, ONGC not found new resources in Assam but also
established new oil provides in cam bay basin (Gujarat),while adding new petroliferous areas in the
Assam-Arakan fold belt and East Belt and East coast basins (both inland and offshore).
After 1990:
The liberalized economic policy, adopted by the Government of India in July 1991, sought to
deregulate and de-license the core sector (including petroleum sector) with partial in disinvestment
of government equity in Public Sector Undertaking and other measures. As a consequence thereof,
ONGC was re-organized as a limited company under the companys Act 1956, in February 1994.
After the conversion of business of the erstwhile oil and natural gas commission to that of
Oil and Natural Gas Corporation Ltd. 1993, the government disinvested of its share though
competitive bidding. Subsequently, ONGC expanded its equity by another percent by offering
shares to its employees.
During March 1999, ONGC, India oil corporation (IOC) a downstream giant and gas
Authority of India ltd. (GAIL) the only Gas marketing company, agreed to have cross holding in
each other stock. This paved the way for long-term strategic alliances both for the domestic and
overseas business opportunities in the energy value chain, amongst themselves. Consequent to this
the government sold off 10 percent of its share holding in ONGC to IOC and 2.5 percent GAIL.
With this, government holding in ONGC came down to 84.11 percent.
R H PATEL INSTITUTE OF MANAGEMENT
10
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) and
Mangalore Refinery and Petrochemicals Limited (MRPL - a subsidiary of ONGC). Oil and
Natural Gas Corporation Limited (ONGC) is India's Most Valuable Company, having a
market share of above 80% in India's Crude Oil and Natural Gas Exploration and
Production. ONGC registered the highest profit among all Indian companies at US $ 1.92
billion (Rs. 8664.4 Caror) in the year 2003-04. Its production of Crude Oil in 2003-04 was
26.7 MMT and of Natural Gas 25.70 Billion Cubic Meters. ONGC also produce ValueAdded 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, making
ONGC the biggest Indian Multinational Corporation. In recent years, it has laid footholds in
hydrocarbon acreage in various countries including Ivory Cost and Australia. ONGC Nile
Ganga BV is a wholly owned subsidiary of OVL and has equity in producing field in Sudan.
11
Subsidiaries of ONGC
1 ONGC Videsh Limited (OVL)
2 Mangalore Refinery & Petrochemicals Limited (MRPL)
12
13
14
SWOT ANALYSIS
1. STRENGTHS
A)
B)
C)
D)
2. WEAKNESSES
A)
3. OPPURTUNITY
A)
15
4. THREAT
A)
B)
16
VISION OF ONGC
To be world class Oil & Gas Company Integrated in energy business with
dominant Indian leadership and global presence.
MISSION OF ONGC
World Class
Dedicated to excellence by leveraging competitive advantages in R&D and technology with
involved people.
Imbibe high standards of business ethics and organizational values.
Abiding commitment to health, safety and environment to enrich quality of
Community life
Foster a culture of trust, openness and mutual concern to make working a Stimulating &
challenging experience for our people. Strive for customer delight through quality products and
services.
R H PATEL INSTITUTE OF MANAGEMENT
17
business
opportunities.
Providing value linkages in other sectors of energy business.
Creating growth opportunities and maximize shareholder value.
18
19
GLOBALIZATION
ONGC operations are being internationalized with a view to acquiring exploration
acreage and access to oil in other basics world over in line with the over strategy followed by
international oil companies .ONGC Videsh Limited .a subsidiary of ONGC , is managing the
overseas ventures.
20
Global ranking/Recognition
Ranking 402nd in the Fortune Global 500 list for 2006, up from 454 th last year ,
based on revenues; ONGC is ranked 115th in new list (based on profits ). Leading
all Indian corporate
Topped the list of sensex Indian companies figured in Business Weeks first annual
ranking of Asias 50 best-performing listed companies drawn from a list of 625
Asian firms, ONGC was ranked third among the 50 best Asian firms.
Ranked 158th amongst the worlds largest companies as per market capitalization
on 31st March 2006 in the 10th annual Financial Times Global listing.
Leads the list of Indian corporate titans, in the Forbes Global 2000, with 256 th
ranking in list of 2000 business entities (including 33indian firms) based on sales,
profits Assets and Market Valuation.
Sole Indian entry into the UNCTADs top 50, non financial Transnational
Corporations from developing countries ranked by foreign assets.
Ranked 18th amongst 50 publicly traded global companies in oil &Gas industry
based on market capitalization and 15thy amongst 2 listed integrated Oil & Gas
companies.
Conferred the Golden Peacock Award for the Corporate Governance during the
International Conference on Corporate Governance.
Indian Ranking/Recognition
R H PATEL INSTITUTE OF MANAGEMENT
21
Topped the Business Today list of Most Valuable companies in India for the
second year in a row. In the ranking, ONGC topped all the three categories viz.
Market Capitalization, Net Profit and Net Worth.
Ranked 11th in the Economic Times 500 Ranking with the highest Market
Capitalization, and Net Profit k, mainly due to lower P/E ratio and Return on Net
Worth.
Ranked as the Most Respected Company in the PSU category in the 2006
Business World Survey released n Business World Magazine (June 2006).
22
HR AT ONGC
PEOPLE AT ONGC
Today, ONGC is the navratna company of India; and making this possible is a dedicated
team of nearly 35,000-40,000 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 everybody matters, every soul counts.
ONGC has a unique distinction of being company with in house service capabilities in all
he activity areas of exploration and production of oil & gas and related oil field services. Company
has adapted progressive policies in scientific
The men & women behind this machine made this possible. Over 18,000 experienced and
technically competent executives mostly scientists and engineers from distinguished Universities
/Institutions
of
India
and
abroad
from
the
core
of
our
manpower.Theyinclude
23
01.04.2010
1.
Class
97
2.
Class
37
3.
Class
46
4.
Class
20
Grand Total
200
Class
03
2.
Class
03
3.
Class
02
4.
Class
04
Grand Total
12
24
Class 1
Class 2
Class 3
Class 4
Total
SC
11
02
08
03
24
ST
05
01
03
01
10
TOTAL
16
03
11
04
34
HR Vision
To attain organizational excellence by developing 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 a development of an empowered, responsive and
competent human capital.
25
HR Objectives
HR Strategy
To build and upgrade competencies through virtual learning, opportunities for growth and
providing challenges in the job.
Role of HR
R H PATEL INSTITUTE OF MANAGEMENT
26
HR as a change agent.
Developing Global Managers for tomorrow to ensure the role of global players.
Measuring HR Performance
HR Parameters have been incorporated in the MOU by ONGC since 1994-95 to
systematically and scientifically evaluate effectiveness of HR Systems, which enables and facilitates
time bounds initiatives
HR audit.
27
INCENTIVE
FOR
ACQUIRING
HIGHER/ADDITIONAL
PROFESSIONAL
QUALIFICATIONS.
(B)
1.OBJECT:
To encourage the employees to enhance their professional competence by acquiring
higher/additional qualifications.
2. NATURE OF INCENTIVE:
R H PATEL INSTITUTE OF MANAGEMENT
28
II ELIGIBILITY
1. The incentive of two increments shall be given to the executives who attain First
Class or 60% level (where such grades are awarded) in professional qualifications
Higher than the qualifications prescribed at the induction level after joining the
Corporation provided that these qualifications are in line with the discipline in
which the executive is working. However, the condition of securing First Class or
60% level is not applicable in case of CA/ICWA w.e.f. 6.10.1998 and also in such
Cases where the executives had acquired the qualification of CA/ICWA prior to
6.10.1998 but after joining ONGC. However in such cases the increments shall be
admissible only w.e.f. 6.10.1998.
2. Executives who had started their studies for acquiring higher/additional
Professional qualification prior to joining ONGC, but acquired the said qualification
after joining the Corporation are also eligible for benefit under the scheme.
3. ENTITLEMENT:
R H PATEL INSTITUTE OF MANAGEMENT
29
the qualification
shall be treated as PERSONAL Pay and shall be carried over by the executive separately. The
increments are to be counted for payment of all allowances except Dearness Allowance; and are not
to be counted for determining the rate of annual increment and fixation of pay on promotion.
a) Rate of incentive increments to executives granted incentive for acquiring
higher
qualification prior to 01.01.1997: Executives who had been granted incentive increments prior to
01.01.1997 and were in receipt of these increments in the pre-revised scales will be entitled to draw
incentive increments w.e.f. 01.01.1997 in the revised pay scales with reference to the post held by
them as on 01.01.1997. The incentive increments for this purpose will be calculated at the rate
applicable at the minimum of the revised basic pay of the post.
Illustration : If an executive was granted incentive increment prior to 01.01.1997, when he was at
E-2 level, and he is at E-4 level as on 01.01.1997, the amount of incentive increments will be
calculated at the minimum of E-4 scale of pay and not repeat not on the actual basic pay being
drawn by the individual in E-4 level.
c)
qualification after 01.01.1997: Executives who have been granted incentive increments for
acquiring higher qualification on or after 01.01.1997, will be entitled to draw the incentive
increments on the revised basic pay drawn by the individual at the time of acquiring higher
qualification.
d)
Executives who have been granted incentive increments w.e.f. 06.10.1998 in terms of Office
Orders No. 1(12)/97/Incentive/EP dated 06.10.1998 & 16.11.1998 will draw the increment w.e.f.
06.10.1998 with reference to the level as on 01.01.1997 or actual date of acquiring qualification
whichever is later on the same principle as enumerated in para (a) & (b) above.
R H PATEL INSTITUTE OF MANAGEMENT
30
Rate of Increments in case of retrospective promotion/pay fixation: In both these cases, the
amount of incentive increments shall be regulated as per (a) or (b) above depending upon the
effective date of promoted post deemed to be held or the basic pay deemed to have been drawn on
the date of grant of incentive increments for higher qualification as the case may be taking into
account whether the executive was granted incentive increment on or after 01.01.1997 or prior to it.
II
The rate of increment is dynamic i.e. on subsequent pay revisions the increment rate gets
revised to an amount to be calculated on the minimum of the revised pay scale of the relevant post
held at the time of grant of such increment. Employees who are actually drawing incentive
increments at a higher rate than that admissible on the lowest scale of pay continue to draw
incentive increment at the old rates
Grade/Level
E-0
Incentive Amount
860
31
(upto 28/02/2008)
S.No. Qualification
i) Ph.D./D.Sc. (in respective
Discipline
Effective Date
All disciplines
28.12.1981
All disciplines
11.12.1991
All disciplines
28.12.1981
Disciplines)
ii) Masters Degree in Industrial
Engineering & Management
iii)
MBA
-do-
21.12.1987
-do-
14.12.1992
Management recognized by
Govt. of India as equivalent
To Post Graduate Degree in
Management
v)
32
M.E./M.Tech.
Engineering disciplines
vii) C.A./I.C.W.A.
28.12.1981/29.07.1987
F&A discipline
28.12.1981
30.08.1982
08.09.1990
F&A discipline
14.12.1992
L.L.M.
x)
Higher Qualification
Ph.D./D.Sc./D
Phil
(in
Discipline
respective All disciplines
disciplines)
Masters Degree in Industrial Engineering All disciplines
& Management
MBA or any other Management course All disciplines other than HR & Finance
equivalent to MBA
M.E./M. Tech/M.S
Company Secretary
LLM
B)
Engineering disciplines
F&A, HR and Legal Disciplines
Legal & HR discipline
1.
SCOPE:
33
ELIGIBILITY:
The incentive in the form of lump sum award is given to such employees,
who attain Q-1, Q-2 or Q-3 qualifications prescribed at induction level after joining
the Company, provided that these qualifications are in line with the discipline in
which the employee is working.
3.
This scheme is meant for employees who do not possess Q-1, Q-2 or Q-3
qualifications. The scheme includes:
i)
ii)
34
qualification
prescribed
for
i)
ii)
iii)
qualification
prescribed
5..
GENERAL CONDITIONS:
35
for
ii)
The employee should have completed at least one year of service in the
Corporation.
iii)
The employee should have appeared in the examination for acquiring the
qualification after appointment and during service in the Corporation and not
prior to initial appointment in the ONGC.
iv)
36
2. APPLICABILITY
This scheme shall be applicable to all employees in Regular Scales of pay in the
Company.
R H PATEL INSTITUTE OF MANAGEMENT
37
6. INTERPRRETATION
In case of any doubt regarding interpretation of any of the provisions of this scheme,
the matter shall be referred to the Director (HR), who shall decide the same in
consultation with Finance.
38
39
(a).CASH INCENTIVE
A lump sum cash incentive of Rs.300/- may be granted to employees where the
employee himself or his spouse undergoes sterilization operation. This cash incentive
is payable irrespective of the fact whether such employees are entitled to draw any
cash or other type of incentive from any other source for undergoing sterilization
operation.
(b) SPECIAL INCREMENTS
Employees who undergo sterilization after having one surviving child and not more
than two or three surviving children may be granted a special increment in the form
of personal pay.
i.
The personal pay would be equal to the amount of next increment due
at the time of grant of the incentive and will remain fixed during the
entire service except as stipulated in Rule 4.3(v) However, where the
employee is drawing the pay at the maximum of the pay scale the rate
of personal pay would be equal to the amount of increment last
drawn.
40
The personal pay is granted from the 1st of the month following the
date of sterilization.
iii.
The personal pay can be drawn at their choice by either the husband
or the wife where both of them are in the employment of ONGC, so
that they can avail the higher rate of increment available to them.
iv.
The personal pay shall be admissible at the same rate even if the
employee is held up at efficiency bar, or he is reduced to a lower
grade/post by way of penalty.
v.
(a)
Employees who have adopted small family norms prior to pay revision will be
entitled to draw the personal pay equivalent to the increment fixed at the rate of
increment in the revised scales of pay of the post held as on 1.1.1997. However
employees who were actually drawing the personal pay at a rate higher than the
lowest rate of increment in the Revised scales may continue to draw at the old rates.
(b)Employees who have adopted small family norms on or after the date of Revision of pay scales
wef 1.1.1997 will be entitled to personal pay of the rate admissible in the actual revised basic pay of
an amount equal to the amount of next increment due at the time of grant of the concession.
The Incentive increments on revised rates due to pay revision w.e.f. 1.1.97
are admissible to the employees who do not get any issue during the first four
years of marriage as per the terms and conditions as laid down in the
R H PATEL INSTITUTE OF MANAGEMENT
41
1.
2.
ORs
Rs. 4, 000/-
JCOs
Rs. 6, 000/-
Officers
Rs. 7, 500/-
Rs. 3, 000/-
JCOs
Rs. 4, 000/-
Officers
Rs 5, 000/-
42
4.
ORs
Rs. 1, 500/-
JCOs
Rs. 3, 000/-
Officers
Rs. 5, 000/-
OUT-FIT ALLOWANCE :
5.
ORs
JCOs
Officers
Rs. 7,500/-
NON-MONETARY INCENTIVES :
i)
House Allotment
43
ii)
i)
ii)
iii)
ORs
Rs. 4,000/-
JCOs
Rs. 6,000/-
44
iv)
- Lieutenant
Rs. 7,500/-
- Captain
Rs. 9,000/-
Rs.10,500/-
Ration:
v)
Six days time (excluding Sundays and Holidays) which may be split
into two parts at the discretion of the employee, at the time of joining
embodiment or on termination of embodiment for attending to
personnel and family requirements. This period of six working days
shall be treated as Special Casual Leave.
vi)
Annual Awards:
(a)
Officer -
Rs. 5, 000/-
JCOs
Rs. 3, 000/-
45
(b)
Rs. 2, 000/-
Rs.
1,
Rs. 750/-
Rs. 750/-
000/-
i.
ii.
46
Double of the ATC rate, as given in Para 6(iii) above and on pro-rata
basis, since the service embodiment period is variable based on actual
exigencies.
iv.
8.
i.
Canteen Facilities
ii.
Medical facilities
47
iv.
v.
Miscellaneous Allowances:
vi.
48
vii.
9.
49
iii.
iv.
Special instructions
a)
b)
50
ii.
iii.
iv.
i. ELIGIBILITY
51
52
First Prizes:
Two Prizes
(b)
Second Prizes:
Three Prizes
(c)
Third Prizes:
Five Prizes
(d)
Consolation :
Prizes
Five Prizes
iii. CRITERIA
a. For facilitating assessment, a total of 100 marks will be allotted. Out
of this, 70 marks will be earmarked for the quantum of work done in
Hindi and 30 for the quality of noting and drafting in Hindi.
b. A person who writes a minimum of Twenty Thousand words in Hindi
in Regions A & B and Ten Thousand works in Region C in an
year will be eligible to compete for the prizes. The prizes will be
awarded to the first ten persons in order they stand on the basis of the
marks allotted by the Assessment Committee referred to in para (iv)
below. Consolation prizes will be awarded on the recommendation of
the Assessment Committee to such persons who do work in Hindi
meritoriously but are not covered under First, Second and Third
prizes.
53
54
v. PROFORMA
WEEKLY STATEMENT OF THE HINDI NOTING/DRAFTING WORK
DONE BY SHRI/SMT./KM.______________________________
DESIGNATION_____________________ C.P.F. No._________
FOR THE WEEK ENDING ON __________
File
Date
No.
Signature
No
Quantum of
Quantum of
of
of
Sectional
notes/drafts
written in
Hindi
5
words
Head
notes/drafts
written in
Hindi
4
DRAWBACKS OF PROJECT
Although the project was carried out with the motive of ensuring most exhaustive and
comprehensive coverage of the facts but still it suffers through certain limitations, these are the
followings:
The training was carried out in the prescribed time frame of 8 weeks, which is a short time
span to carry out a full training in a large organization.
R H PATEL INSTITUTE OF MANAGEMENT
55
Library
Office Files
Journals
Internet
Different departments
56
BIBLIOGRAPHY
Books
Published Reports:
News Papers:
Financial Express
Websites:
R H PATEL INSTITUTE OF MANAGEMENT
57
www.ongcindia.com
www.ongc.com
www.ONGCNet..in
http://10.205.55.5/
58