A PROJECT REPORT ON PERFORMANCE APPRAISAL PRACTICES IN ONGC LTD.

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A

PROJECT  REPORT

ON

PERFORMANCE APPRAISAL

PRACTICES IN ONGC

(Submitted in partial fulfillment for the

Completion of the degree of BBA)

FACULTY OF ARTS, SCINECE & COMMERCE

Mody Institute of Technology & Science

Lakshmangarh (Rajasthan)

2009-10

 


CONTENTS

CHAPTER                1        Introduction                                        3

CHAPTER                2        Overview of ONGC                                6

CHAPTER                3        Changes in Economic

                                Environment and its

                                Impact on ONGC                                        11

CHAPTER                4        Performance Appraisal

                                Practices in ONGC                                20

CHAPTER                5        PAR Section in ONGC                                25

CHAPTER                6        Current Initiatives of PAR

                                System in ONGC                                        33

CHAPTER                7        Data Analysis and

                                Interpretation        

CHAPTER                8        Limitations                                                35

CHAPTER                9        Conclusion                                                36

CHAPTER                10        Suggestion                                                38

CHAPTER                11        Bibliography                                        40

CHAPTER                12        Annexure                                                41

Introduction

CHAPTER NO 1

INTRODUCTION

Oil and Natural Gas Corporation Ltd. (ONGC) a Navaratna  public sector enterprise engaged in exploration of  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 commission’s 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 discovered major fields in Gujarat, Assam and Bombay High.  Its recent 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/MISSION

Like 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  MESURES

ONGC 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 grants-in-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 Caliber to represent India in International Tournaments.

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. Crude Oil
  2. NGL (Natural Gasoline)
  3. LPG (Liquefied Petroleum Gas)
  4. Ethane-Propane
  5. 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.

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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

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