1

Oil and Natural Gas Corporation Limited

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 to do
hard work.
Pandit Jawaharlal Nehru
Indias first Prime Minister
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 reflects
in the performance figures and aspirations of ONGC. The company has adopted
progressive polices in scientific planning, acquisition, utilization, training and motivation
of the team. ONGC has a unique distinction of being a company with in-house service
capabilities in all the activity areas of exploration and production of oil and gas and
related oil field services. Needless to emphasize, this was made possible by the men and
women behind the machine. Over 18,000 experienced and technically competent
executives mostly scientists and engineers from distinguished universities/institutes of
India and abroad form the core of our manpower. They include geologists, geophysicists,
geochemists, drilling engineers, reservoir engineers, petroleum engineers, production
engineers, engineering and technical service providers, financial and human resource
experts, IT professional and so on.

ONGC- VISION, MISSION AND OBJECTIVES

ONGC- Vision
To be a world class oil and natural gas company integrated in energy business with dominant
Indian leadership and global presence.

ONGC-Mission
World Class

Dedicated to excellence by leverage competition advantages in R&D and technology

with involved people.

Imbibe high standards of business ethics and organizational values.

Abiding commitment to health, safety and environment to enrich quality of community

life.

Foster a culture of trust, openness and mutual concern to make working a stimulating
and challenging experience for our people.

Strive for customer delight through quality products and services.

Integrated in Energy Business

Focus on domestic and international oil and gas exploration and production business
opportunities.

Provide value linkages in other sectors of energy business.

Create growth opportunities and maximize shareholders value.

Dominant Indian Leadership

Retain dominant position in leadership in Indian petroleum sector and enhance Indias
energy availability.

ONGC-Objectives

Optimize production of hydrocarbons.

Self-reliance in technology.

Promoting indigenous effort in oil and gas related equipment, material and services.

Assist in conservation of hydrocarbons, more efficient use of alternate sources of

energy.

Develop scientifically oriented and technically competent human resource through

motivation and training.

HISTORY OF ONGC
FORMATION OF OIL AND NATURAL GAS DIRECTORATE
In 1995, Government of India decided to develop the Oil and Natural Gas resources in
the various regions of the country in the Public Sector. With this objective, an Oil and Natural
Gas Directorate was set up towards the end of 1955, as a sub-ordinate office under the then
ministry of Natural Resources of Scientific Research. The department was constituted with a
nucleus of geoscientists, whose services were secured from the Geological survey of India.
A delegation under the leadership of Shri K.D.Malviya, the then Minister of Natural
Resources, visited several European countries to study the status of oil industry in those
countries and to as certain the availability of equipment, facilities and training Indian
professional for future oil exploration program. Thereafter foreign experts from USA, West
Germany, Romania and USSR visited India for advising the government. Finally, the visiting
Soviet experts drew up a detailed plan for geological and geophysical surveys and drilling
operations to be carried out during the 2nd Five Year Plan (1956-57 to 1960-61). They also
indicated requirements of equipment, materials and personal for execution of the work
program.

In April 1956, the government of India adopted the industrial policy resolution, which
placed mineral oil industry among the schedule industries, the future development of which
was to be exclusive responsibility of the state.

CONVERSION OF DIRECTORATE INTO COMMISSION

After the formation of the oil and Natural Gas Directorate, it became apparent that it would
not be possible for the Directorate with its limited financial and administrative powers and as
sub-ordinate office of the government, to function efficiently in its gigantic task. To overcome
this difficulty, in August 1956, the Directorate was raised to the status of a Commission with
enhanced powers, although it continued to be a sub-ordinate office at the government. In
October 1959, the Commission was converted into a statutory body by an act of India
Parliament, which enhanced powers of the commission still further. The main function of the
oil and Natural Gas Commission (ONGC) subject to the provisions of the act, were "to plan,
promote, organize and implement programs for development of Petroleum Resources and the
production and sale petroleum and petroleum product produced by it, and to perform such
other functions as the central government may, from time to time, assign to it". The act further
stipulated various activities and steps to be taken by ONGC in fulfilling its mandate.
The most important contribution of ONGC however is its self-reliance and development of
core competence in E & P activities at a globally competitive level.

CONVERSION OF COMMISSION INTO A LIMITED COMPANY

After the formation of Oil and Natural Gas Commission, government decided to convert it
into a public limited company. Thus a new company Oil and Natural Gas Corporation was
incorporated as a public limited company, under Companys Act, 1956 on June 1993.
The new company obtained the certificate of commencement on August 1993.

Securing Sustained Growth

Born as a modest corporate entity within serene Himalayan settings on 14th August 1956 as
Commission, Oil and Natural Gas Corporation Limited (ONGC), has grown into a full fledged
horizontally integrated upstream petroleum company. Today, ONGC is a flagship public sector
enterprise and Indias highest profit making corporate, which has achieved the landmark since
inception, ONGC has produced more than 600 million metric tones of crude oil and supplied
more than 200 billion cubic meters of gas, thus fuelling Indias economy.
To achieve this sustained growth, ONGC decided to double the oil and gas reserves. In 45
years of operation ONGC accredited six billions tons of oil and oil equivalent reserves and
ONGC has drawn a plan to double these reserves in the next 20 years. Secondly, the global
recovery factor of ONGC is of the order of 28%; the target is to raise this to the level of 40%
over the same 20 years.
Out of the six billion tones of oil and gas reserve accretion, four billion tones are accepted to
come from offshore and deep waters. To improve recovery factor from the existing fields,
ONGC is investing Rs. 2,000 Crores in 15 Redevelopment Schemes.

Best in class Standard

Information Technology and Communication System are being integrated and upgraded. A
number of new projects project PROMISE (Professional Review of Major Info com Systems
and Equipments), projects IMPETUS (Implementing, Maintenance & Procurement Efforts
through Upgraded Systems) are launched. All these projects are aimed at integrating InfoTech
resources, integrate company-wide ERP management system and facilitate better maintenance
and repair of equipment and facilities.

ONGC Videsh Limited

ONGC Videsh, the wholly owned subsidiary of ONGC concluded a deal for 20 % firm in
another 20% carried interest in Sakhalin 1 project. Estimated at US $ 1.7 billion, this is the
largest single foreign investment ever made by any Indian corporate.
ONGC Videsh also holds a 45% interest in Vietnam Offshore Gas Project and the project has
started production.

ONGIO International Limited

ONGIO International Limited, a 50:50 joint venture between ONGC and IOC, has
incorporated to provide training consultancy and services from drilling to dispensing, in India
and abroad.

ONGC CORPORATE RANKING

In its annual survey (2005-06) of Asias 1000 largest companies, the Asia week magazine
ranks ONGC as the fourth most profitable oil and gas company in Asia, after Petrochina,
Petroleum National of Malaysia and China National Offshore oil.
With its Market Capitalization crossing Rs. 75,000 Crores and net profit crossing Rs.10, 000
Crores, ONGC has been ranked 1st in Economic Times 500 Corporate.
It has been ranked 326th in Financial Times Global 500 by Market Capitalization.
It has been ranked 133rd in Forbes 400 Global Corporate by Market Capitalization.
It has been ranked 1st in Business Today 500 Corporate by Net Profits.

VARIOUS INSTITUTES OF ONGC

INSTITUTE OF ENGINEERING AND OCEAN TECHNOLOGY (IEOT)
It was founded in November 1993 for innovation development of the future plans of ONGC to
achieve self reliance in related technology. The institute has developed expertise in the field of
Concept Evaluation and Risk Analysis, Geotechnical Engineering, Structural Engineering and
Materials and Corrosion Engineering.
INSTITUTE OF OIL AND GAS PRODUCTION TECHNOLOGY (IOGPT)
The institute was established in 1984 to meet technological requirement of oil and gas field
with an objective to boost indigenous hydrocarbon production and improve the economies of
operation.
ONGC ACADEMY
The Academy, located at Dehradun, is the premier nodal agency for developing human
resources of the organization. The institute is committed to excellence in the cause of HRD and
the availability of the appropriate systems and procedures for the knowledge and technology
intensive, risky and complex oil and gas exploration and development industry in the energy
sector with a view to ensure managerial effectiveness, quality and productivity. ONGC
Academy is committed and is continuously striving for excellence in training programs
through innovative method and R&D activities.
INSTITUTE OF RESERVOIR STUDIES (IRS)
The IRS was founded as a single source and multi service reservoir engineering agency with
objectives to integrate the skills and technologies for better reservoir management, prepare
development plans for new discovery to select and design enhanced oil recovery schemes,
develop techniques for importing well productivity, maximize hydrocarbons recovery keeping
the cost in mind with market realities. There are six online monitoring and reservoir appraisal
multidisciplinary groups for continuous reservoir management.

GEODATA PROCESSING AND INTERPRETATION CENTRE (GEOPIC)

GEOPIC at Dehradun has the largest computing facility of the ONGC and is one of the few
centres around the world where integrated processing and interpretation of different
geoscientific data from seismic to petrophysical, geological and reservoir engineering is carried
out.
It is the largest 2D & 3D seismic data processing centre in India with a proven capacity for
processing over 10,000 line km of marine and 5000 line km of land data annually.
INSTITUTE OF DRILLING TECHNOLOGY (IDT)
The Institute, since its inception is engaged in relentless efforts in R&D and has rendered excellent
service in the areas of oil and gas well drilling technology. It has emerged as a premier R&D centre
KESHAVDEV MALVIYA INSTITUTE OF PETROLEUM EXPLORATION (KDMIPE)
KDMIPE is also located at Dehradun and was set up in 1962 as a research and training
institute with assistance from UNDP. It is the countrys premier centre for basic and applied
research in petroleum exploration.
The activities of KDMIPE are focused towards development of new methodologies,
technology upgradation, development of new concepts for exploration and exploitation,
development of hydrocarbon resources generation and upgradation of geoscientific data and
computer application.
ONGC SPECIALISES IN:

Geological and Geophysical Surveys.

Geochemical studies, Bio-Stratigraphic Analysis.

Basin Evaluation, Techno-Economic Analysis.

Formation Analysis and Reservoir Modeling.

Estimation of Resources and Reservoirs.

Drilling of Exploratory and Development Wells.

Bottom Hole Reservoir Studies.

Repair and Rehabilitation of Sick Wells.

Simulation Techniques.

Computer application in Petroleum Industry.

Equipment Management and Quality Assurance.

Material Management and Logistics: on land, marine and air.

Construction and Maintenance: Onshore and Offshore.

Safety Audits and Environmental Studies.

Corrosion Studies in Offshore Structure.

Erection and Maintenance of Gas Sweetening plants.

SWOT ANALYSIS
1. Strengths

ONGC is the only company in India who is involved in offshore construction activities
relates to oil and gas projects for more than two decades.

It has rich experience over the last 25 years in its execution and possesses abundant
data associated with these projects.

ONGC contributes 90% of Indian crude oil production.

The organization possesses highly skilled manpower at a low cost.

Thee operational cost of ONGC is among the lowest in the world and its reserve level is
equivalent to 23 years of production.

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ONGC can boost of installing 28 processor platforms, 132 well platforms and more
than 4,000-km submarine pipelines.

Another area of strength of ONGC is its commitment and quality of maintenance

management.

2. Weaknesses

The purchase procedure of ONGC does not lead to feasible and past purchase
decisions.

It is highly regulated by the government therefore the functioning of the organization,

as a commercial organization is restricted or constraint.

Behaviors of the certain reservoirs in Mumbai have not been in line with the expectation,
which would enroll investment in the future.

There has been no major discovery in the past.

There is lower realization per barren as compared to international prices.

3. 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.

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ONGC has already obtained marketing rights for transportation fuels, this opens up the
opportunity to augment ONGCs profitability through value addition consumer and
retail marketing.

ONGC is poised to enter downstream refining in a big way. After the mini refineries in
Tatipaka, it has signed a share purchase agreement to acquire 37.4% equity held by M/S
Aditya Birla Group in Mangalore Refineries and Petrochemical Limited (MRPL). This
is in the line with the global integrated business model in the energy industry, to
insulate the financial from the volatility inherent in sectoral activities.

On 31.03.02, Government o India ended the Administered Price Mechanism (APM) on

crude and petroleum products. ONGC is now entitled to Market Determined (MDP) for
crude as well as value added products. ONGC has been playing internationally

benchmark priced for goods and services, now ONGC is entitled to internationally
benchmark price for its output, except for natural gas.

4. Threats

The unemployed Basins are of acreage and would increase ONGCs funding as
development cost.

With the opening of the oil exploration and development sector to the private sector,
there has been an increase in the international competitiveness.

International crude oil prices are highly volatile and any sharp down turn would affect
the profitability of the organization.

Security of the personnel and property is the major concern of ONGC, as in Oct. 2001 a
massive fire broke out in Gujarat field because of tampering of a well held by
miscreants engaged in pilferage, three miscreants perished in the fire and the cost of

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property loss exceed Rs.5 Crore. The cost of insurance has increased, pilferage losses
are been sustained and operation has been restricted in sensitive areas.

ORGANIZATIONAL STRUCTURE-ONGC

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HIERCHICAL STRUCTURE- ONGC

DIRECTOR
EXECUTIVE DIRECTOR

: E9

GROUP GENERAL MANAGER

: E8

GENERAL MANAGER

: E7

DY. GENERAL MANAGER

: E6

CHIEF MANAGER

: E5

MANAGER

: E4

DY. MANAGER

: E3

SENIOR OFFICER / EXECUTIVE

: E2

OFFICER / EXECUTIVE

: E1

ASSISTANT OFFICER / EXECUTIVE

: E0

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HUMAN RESOURCE- VISION, MISSION & OBJECTIVES

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 & team working and aligning business priorities with aspiration of employees
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 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 utilisation of HR potential
To build and upgrade competencies through virtual learning, opportunities for growth and
providing challenges in the job

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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

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 2000-2001

Transformation of ONGC-HR as facilitator and Change Agent for Pilot Implementation at
WRBC
ERP for HR-Project SHRAMIK
Training and development
Action Plan and Implementation for achieving HR mission and objectives
Roll out of Succession Planning Model for identified key positions
HR audit
IR for enhancing efficiency and productivity

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Introducing the concepts of mentoring and knowledge management
Conducting a Climate Survey to identify areas for OD interventions

A Motivated Team
HR policies at ONGC revolve around the basic tenet of creating a highly motivated, vibrant &
self-driven team. The Company cares for each & every employee and has in-built systems to
recognise & reward them periodically. Motivation plays an important role in HR Development.
In order to keep its employees motivated the company has incorporated schemes such as
Reward and Recognition Scheme, Grievance Handling Scheme and Suggestion Scheme.

Incentive Schemes 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 & Development

An integral part of ONGCs employee-centred policies is its thrust on their knowledge
upgradation and development. The Institute of Management Development, which has an ISO
9001 certification, along with 7 other training institutes, play a key role in keeping our
workforce at pace with global standards.
The Institute of Management Development is the premier nodal agency responsible for
developing the human resource of ONGC. It also focuses 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 honours in sports at national
and international levels have been achieved

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Transforming the Organization

ONGC has undertaken an organization transformation exercise in which HR has taken a lead
role as a change agent by evolving a communication strategy to ensure involvement and
participation among employees in various work centers. Exclusive workshops and
interactions/brainstorming sessions are organized to facilitate involvement of employees in this
project.

Project Shramik
To move towards world-class systems, processes and practices, a project for integrated System
of Human Resource Automated Management Information for KAIZEN (SHRAMIK) based on
software platform SAP R/3 has been launched which is an attempt to address key issues in
HRM through comprehensive process re-engineering and remodelling of HR functions.

Participative Culture
Policies and policy makers at ONGC have always had the interests of the large and multidisciplined workforce at heart and have been aware of the nuances and significance of cordial
Industrial Relations. 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.
In fact, ONGC has been one of the few organizations where this method has been
implemented. It has had a positive impact on the overall operations since it has led to enhanced
efficiency and productivity and reduced wastages and costs.
Respect and dignity are the key values that underline the relationship ONGC has with its
human assets. Conscious about its responsibility to society ONGC has evolved guidelines for
Socio-Economic Development programmes in areas around its operations all over the country.

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Education
Health Care and Family Welfare
Community Development
Promotion of Sports and Culture
Calamity Relief
Development of Infrastructural Facilities
Development of the Socially & Economically Weaker Sections of Society Benefit and
Welfare

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PARAMETERS
YESTERDAY
Success factors

TODAY

Business judgment, Information

Intuition
Strategic Plan
Mission
Paternalistic

Professional

Organizational Style
Employees considered as

Motivational Methods
Role of HR

Hungry, Naked &

Defenseless
creatures
Driving people
through basic needs
Provide people with
food, clothing and
shelter.

TOMORROW
Flexibility
Agility
Speed
Empowered
Learning
Vibrant

Thinking and
Fully evolved,
Rational Beings completely satisfied,
mature human beings
Driving people People drive themselves
through social &
intellectual needs
Motivate by
providing
effective & fair
appraisals and
compensation
systems

As a Change Agent
As a Innovator
As a Strategic Partner

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HUMAN RESOURCE MANAGEMENT

ONGC considers the human resource to be its greatest asset in its stride to achieve corporate
excellence. The success of the company is due to its highly motivated, professionally
competent, committed multidisciplinary workforce comprising of scientists, technologists,
engineers and other support personnel. Several initiatives and measures have been taken to
ensure that human resource is managed and developed.

HeadquartersAt the headquarters Human Resource Development (HRD) and Employee Relations (ER) exist
as separate departments, each headed by a Chief.
The HRD department has the following functions:Recruitment and Promotion
Job rotation and Transfer Policy
HR Initiatives
Human Resource Group (HRG) which consists industrial engineers is a part of HRD
which performs certain distinct functions:Manpower Studies
Policy Making
Vacancy Creation
Succession Planning
Career Development
Dealing with IR matters
Contract Management

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The ER department has the following functions:Grievance Management
Policy Making
Dealing with Estate matter

CORPORATE HRD POLICY

The most valuable resource an organization possesses is undoubtedly its people. The HRD
philosophy of ONGC believes in continuously ensuring that the dynamism, competency,
motivation and effectiveness of the employees remain al high levels .
The principal objective of our HRD policy are :

To prepare employees to take up challenges in aspects of upstream sector in the

petroleum industry.

To build competence for career growth through continuing education program.

To contribute towards improvement in managerial effectiveness and leadership

development.

To carry out management development studies for upgrading systems. Procedures and
introducing professionalism.

To cater to special needs with regard to managing absorption, transfer and development
of technologies to insure an organizational culture responsive to the environment.

HUMAN RESOURCE PLANNING :

ONGC has always given great priority to Human Resource Management by formulating
enlightened personnel policies form time to time. The organization has taken various measures
to ensure that overall manpower strength is contained and utilized optimally.Recruitment has
been negligible and filling up of post falling vacant due to separations has also been avoided.
As a result of all these efforts, the overall manpower strength of ONGC has reduced from
44,548 as on 31.03.1996 to 40,226 as on 01.04.2001 a decrease of 8%.

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EMPLOYEE TURNOVER:
Despite increasing competition, there has been a consistent decline in employee turnover in
ONGC. The results indicate about 32% of the employees are in the age of 45 and above.

REDEPLOYMENT OF MANPOWER
Though redeployment of manpower is carried out on a regular basis depending on the specific
needs of a work centre, special initiatives were taken to redeploy manpower from NRBC and
CRBC due to reduced work programmes in these regions. From NRBC, 227 persons declare
surplus being redeployed. From CRBC,480+235 personnel had been deployed in phases. Interregional redeployment is also planned and carried out on a regular basis. Always there is thrust
on re-deployment. This keeps on manpower revolving from the areas of redundancy to areas of
need

COMPETENCY DEVELOPMENT AND TRANING EFFECTIVENESS:

Training and Development in ONGC is a dynamic system continuosly active in achieving the
growth of individuals and the organization. With the rapid changes taking place in the field of
technology worldwide, it is essential to keep upto date with all the latest developments in the field
of information- production activities. Advanced technology and cost effectiveness have become
vital for gaining a competitive edge, IMD is the nodal agency which annually lands the training
activities of the organization which are implemented through the RTIs and STIs in the regions.
The organization has tried to adapt and reform training evaluation and feedback scheme to
continuously improve effectiveness of training and developmental system. There is an
elaborate to improve the quality of training programs. Each trainee fills a Feedback form at
the end of a program, which is carefully analyzed by the program directors.

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To make training more relevant to the organization needs, senior executives are being involved
in the process. Besides development of managers, IMD is concentrating on development of
workers, union leaders, women employees.
Identification of training needs is another thrust area of IMD. Exposure to appropriate training
is a developmental mechanism for acquiring competencies for the present and the future.
Therefore efforts are being made to link training with performance appraisal and career
planning.

PERFORMANCE AND POTENTIAL APPRAISAL

Keeping in view the organizational needs, new performance appraisal system for the
executives of E1-E6 has been designed with the assistance of Institute of Administrative
Management, New Delhi.

MAJOR FUNCTIONS OF HRD

1. To prepare employees to take up challenges in aspect of upstream sector.
2. To contribute to improvements in managerial effectiveness and leadership development.
3. To execute of management development studies to help in upgrading systems and
procedures.
4. The selection and training of personnel, manpower forecasting and planning,
succession planning and career development of employees.

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Role of HRD
In this environment the role of HR has evolved from the Paternalistic Provider to that of an
Enabler and a Strategic Partner.
The activities of HR thus mainly focuses on:

Enrolling employees to the Companys Vision.

Managing the expectations of its stakeholders.

Leveraging Talent

Creation of Second Generation Leadership

This is accomplished through the mechanisms of:

Workforce Planning

Rewards & Recognitions

Policy Re-engineering

Career & Succession Planning

Capability Building

Compensation structuring

Organization Development

HR is thus the thread that weaves the fabric of the company, uniting the requirements of business
with those of its stake-holders.

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Workforce Profile
A brief view of the current workforce profile:
A)
Educational
Streams

Class
I

Class II

Class
III

Class
IV

Geo Sciences
3991
176
193
Engineering
12060
1869
4500
Support Services
3946
614
2587
Grand Total
19997
2659
7280
These streams comprise of 108 disciplines

3242
3242

Total

Percent

4360
18429
10389
33178

B) The workforce is distributed across the different work-groups as under:

Work Groups
01-CORP. OFFICE
02-BASINS
03-ASSETS
04-SERVICES
05-PLANTS
06-INSTITUTES
07-OTHERS
( OVL/DEP)
Grand Total

Total Nos

4827
3340
10916
10951
1502
1361

15
10
33
33
5
4

281
33178

1
100

The work-groups are spread over 22 locations in the country, and form a part of six
geographical sectors.

13
56
31

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C) Religion

Hindu
Muslim
Christian
Sikh

Reservation

30117 Gen
1665 SC

Gender

23438 Male
31272
5249 Female 1906
G.
826 ST
2755 Total
33178
338 OBCs 1736
G.
79 Total 33178
148
3

Buddhist
Jain
Parsi
Zoroastrian
2
G. Total 33178

State of Domicile

Assam
Gujarat
Uttar Pradesh
Maharashtra
Uttarakhand
West Bengal
Andhra Pradesh
Tamil Nadu
Bihar
Kerala
Tripura
Rajasthan
Madhya Pradesh
Punjab
Delhi
Orissa
Haryana
Karnataka
Himachal Pradesh
NA
Jharkhand
Jammu & Kashmir
Pondicherry
Goa, Daman & Diu
Nagaland
Chhattisgarh
Meghalaya
Chandigarh
Manipur
Nepal
Andaman &
Nicobar
Arunachal Pradesh
Sikkim
Dadra, Nagar
Haveli
Lakshwadeep
Mizoram
Grand Total

6499
5921
3557
2793
2198
2009
1829
1705
1132
806
774
572
503
468
454
330
305
291
209
205
175
123
68
53
52
39
34
31
16
11
9
2
2
1
1
1
33178

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MAJOR FUNCTIONS OF HRG

Assessment of manpower requirement in various projects and disciplines at various

levels. This is done on the basis of detailed zero-based studies and HRGs
recommendations for approval. Thus, for deciding the recruitment, HRG plays a
nodal role.

Evaluation of manpower norms and practice in different functional areas.

Studying and recommending the needs of internal redeployment of manpower with

a view of enhancing productivity utilization of manpower.

Providing primary data inputs for succession planning of corporate levels

executives.

Providing essential data inputs for promotion and transfer of executives.

Maintaining computerized manpower databases, work center wise, and level wise
etc., along with details like number of women and SC/ST employees. Compiling
and dissemination Performance growth parameters in the area of Human
Resource Management- an annual report from HRG which is essential input for P
& A report.

Acting the nodal agency for computerization of personnel function in the entire
corporation, also coordination training of personnel on computer in this regard with
IMD.

Acting the nodal agency for administering the Performance Incentive Scheme, its
annual revision and making amendments/providing clarifications from time to time
to region / projects.

Coordinating corporate change programs, like revision of Performance Appraisal

System in the corporation and corporate restructuring/ transformation.

Formulation and modification of voluntary Retirement Scheme.

Providing periodic inputs for organizing trainings by ONGC Academy P & A

personnel.

Carrying out system studies / optimization studies, whenever assigned by

management, or at HRGs own initiation.

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EMPLOYEE BENEFITS AND SERVICES

LEARNING OBJECTIVES

Understand the nature of employee benefits an appreciate their role in attracting

and retaining competent people.

Identify the different fringe benefits provided to employees and describe the more
significant of them.

Identify the principles of fringe benefits

Describe the different steps in administration of benefits and services

Visualies the future of fringe benefits

Identify the problems faced by an MNC in administering benefits and services

Employee remuneration (financial) comprises both direct as well as indirect elements.

MEANING AND DEFINITION

Employee benefits and services include any benefits that the employee receives in
addition to direct remuneration. A formal definition is
Fringes embrace a broad range of benefits and services that employees receive as
part of their total compensation packagepay or direct compensation ---is based on
critical job factors and performance. Benefits and services, however, are indirect
compensation because they are usually extended as a condition of employment and are
not directly related to performance.
Employee benefits and services are alternatively known as fringes, service
programmers, employee benefits or hidden payroll.
The word fringe is not appreciated by management practitioners on the ground
that nowadays benefits and services constitute substantial labour cost for any
organisation. They are no longer mere fringe costs or fringe items. They are important to
managements, employees and unions alike.

29
Similarly, the terms benefits and services are often used interchangeably by some
writers. But some maintain distinction between the two. For these people, the term
benefit applies to those items for which a direct monetary value to the individual
employee can be ascertained, as in the case of pension, medical insurance, or holiday pay.
The word service applies to such items as a company cannot be readily established.
However, we have used the two terms interchangeably in the chapter. We also have no
objection against the use of the term fringes.

WHY BENEFITS AND SERVCES?

Nearly every organisation in our country provides benefits and services to its
employees. These fringes continue to grow in their importance. several reasons account
for this trend.
They represent increased earnings to employees. In fact, employees prefer indirect
remuneration to direct pay. Any increase in direct pay only adds to ones taxable income.
but most benefits are not taxed and hence are advantageous to employees. Furthermore,
there are economic reasons why benefits are preferred by employees. Health and life
insurance can generally be purchased by the employer at group rates, which are typically
lower than those the employees would have to pay.
Employees, too prefer indirect remuneration to direct pay. Increase in benefits
distort salary structures less and are often more easy to explain to shareholders as the
social responsibility of the company. Besides, they often involve complex financial
arrangements and underwritings so that their true cost may not be discernible by
employees or unions.
More than salary structures and financial arrangements, there is a need to attract
and retain competent personnel. An employee joins and stays with an organisation which
guarantees attractive fringe benefits. Besides, vacations along with holidays and rest
breaks help employees mitigate fatigue and enhance productivity during the hours
actually employees work. Similarly, retirement, health-care and disability benefits may

30
allow workers to be more productive by freeing them of concerns about medical and
retirement costs. So, it is quite accurate to state that indirect remuneration may:

31

1.

Mitigate fatigue.

2.

Discourage labour unrest,

3.

Satisfy employee objective

4.

Aid recruitment,

5.

Reduce turnover and

6.

Minimise overtime costs

Fringe benefits
Fringe benefits help build up a good corporate image. Schemes like housing, educational
institutions, and recreational activities bring benefits to the society at large. In the case of
some, the benefits are direct for a religious programme or a sports event or a company
school, the company draws its clientele not only from the employees but also from
surrounding communities. In others, such as housing, there are indirect gains in terms of
reduced pressure on the limited living accommodation and release of public funds for
additional housing programmes. All these have wider dimensions than immediate gains to
the employees.
Thus, an organisation, with the introduction of fringes, seeks to enhance
employees morale, remain cost- effective, and introduce changes without much
resistance.

32

Benefits are Incentive

Do benefits motivate employee? Frederick Herzberg group benefits along with
other factors such as working conditions into the hygiene area- they are needed, and the
human appetite for them is limitless. Yet, they do not motivate people to perform better.
In Maslows need structure, benefits may affect the various aspects of security (e.g.
individual needs to cover hospital costs, retirement, support when unemployed, or life
insurance money for the familys protection in case of death) but little else. In fact, if one
views the major dimensions of job satisfaction, such as satisfaction with the little of this
and, therefore , may have little effect on the employee.
Fringe benefits may fail in their motivational effect as they are not tied to
employee performance but to organisation as a part of their larger social responsibility
actions.The arguments about motivational effect of benefits and services apart, fringe
benefits have come to stay and hence they need proper administration by HR experts.
Demerits of fringe benefits should not be ignored. Fringe benefits, for example,
could result in unhealthy competition among employees- work may inadequate, and
could demotivate employees if implementation is not transparent.

TYPES OF EMPLOYEE BENEFITS AND SERVICES

Employee benefits and services include a motley crowd of fringes starting from accident
compensation plans to paid holidays. To hold that a benefit is a fringe, there criteria need
to be fulfilled.
1- It should be computable in terms of money.
2- The amount of benefit is not generally predetermined.
3- No contract, indicating when the sum is payable, should exist.
Going by the three criteria, many items are included in the category of fringes. Table 13.1
contains the list of fringes. It may be stated that the list is only suggestive.

33
Table 13.1 Examples of Fringes
1. Legally required payments
i
Old age, survivors, disability and health insurance (commonly known as social
security)
ii
Workers compensation
iii
Unemployment compensation
2. Contingent and deferred benefits
i
Pension plans
ii
Group if insurance
iii
Group health insurance
a) Medical expenses (Hospitalisation and surgical)
b) Disability income (short-term and long-term)
iv
Guaranteed annual wage
v
Prepaid legal plans
vi
Military leave and pay
vii Jury duty and bereavement paid leave
viii Maternity leave
ix
Child care leave
x
Sick leave
xi
Dental benefits
xii Tuition aid benefits
xiii Suggestion awards
xiv Service awards
xv severance pay
3. Payments for time not worked
i
Vacations
ii Holidays
iii Voting pay allowances
4 Other benefits
i
Travel allowances
ii Company car and subsidies
iii Moving expenses
iv Uniform and tool expenses
v Employee meal allowances
vi Discounts on employers goods and services
vii Child care facilities.
Figure 13.1 illustrates contemporary benefits made available to employees. ]

34

PRINCIPLES OF FRINGES
The following principles must govern the administration of fringe benfits.:
1- Benefits and services must b provided to the employees on the basis of a genuine
interest in the protection and services must be provided to the employees on the
basis of a genuine interest in the protection and promotion of their well-being.
The managements should not feel that the fringes are thrust upon them. Nor
should the managements feel that they are providing the benefits as a matter of
charity.
2- The benefit must satisfy a real need. Employees resist or are indifferent to any
benefit which is not liked by them.
3- The benefit must be cost-effective.
4- The benefit should be as broad-based as possible.
5- Administration of the benefits should be preceded by sound planning.
6- The wishes of employees as expressed by their union representatives and the
bargaining power of the union must be considered.
7- Employees should be educated to make use of the benefits.

35
Types of Non-monetary Rewards

SIGNIFICANT BENEFIT AND SERVICE PROGRAMMES

As Table shows, some organisagtions provide an amazing range of benefits. The
discussion below, however, focuses on major benefits to which organisations contribute a
substantial amount of service.

PAYMENT FOR TIME NOT WORKED

Companies provide payment for time not worked, both on- and off-the-job. On- the- job
free time includes lunch periods, rest periods, coffee breaks, wash-up times and get-ready
times. Off-the-job time includes vacations, sick leaves, public holidays, and personal or
casual leaves.

INSURANCE BENEFITS
Organisations offer life and health insurance programme to their employees. Most
organisations offer insurance at a cost far below what individuals would have to pay to
buy insurance by themselves.

COMPENSATION BENEFITS
Disability and workers compensation benefits are also employees. Employers contribute
funds to assist workers who are ill or injured and cannot work owing to occupational
injury or ailment. These benefits are regulated by the Workmens Compensation Act.

Pension Plans
Most organisations offer plans to provide supplementary income to employees after they
retire. These are either company-paid or joint employee-and-company-paid programmes
meant to supplement social security.
Along with pensions, organisations pay gratuity to employees attaining
superannuation. There is, however, a ceiling on gratuity which may not be justified. If an

36
employee has served an organisation for a long time, there is no reason why he or she
should be denied the benefit of higher gratuity.
A companys social security, and workers compensation contributions are set by
the law. But how much to contribute for other kinds of benefits is upto each company to
decide.
Some organisations contribute more to the cost of these benefits than others do.
Some others pay the entire cost, others pay a percentage of the cost of certain benefits,
such as health and insurance, and bear the entire cost of others. ]
Organisations are discovering newer ways of rewarding their employees (see Fig.
13.1) Modi Xerox, for example, has instituted an annual Achievement Award, which
recognises employee contribution to customer satisfaction, profits, process improvement,
or team-spirit improvement through a citation and a cheque of Rs 500 to every team
member. In addition, level mangers- which offers a prize of Rs 3000 per head and a
plaque. Moreover, the national winners qualify for the Xerox Presidents Award which
honors a unique contribution to sustained high performance by an individual or a team.
At Colgate-Palmolive, there is a three-level scheme called you can make a
difference to encourage innovative ideas and entrepreneurial action from employees.
Awarded every quarter at the local level and every year at the national level, the top two
then compete for global recognition.
Club membership is highly popular. NIIT, for example, has set up a Managing
directors Quality Club (MDQC) and more recently, a Presidents Club. Typically
nominations come from all the regions, covering 2200 NIIT employees, and are based on
an employees contribution and performance, regions, covering 2200 NIIT employees,
and are based on an employees contribution and performance.

37
Among the nominations, 15 to 18 are short listed by the MD himself. Thos
shortlisted are expected to work closely with MD on his total quality programme. It is
considered an honour for the shortlisted employees.
On the other hand, the members of the Presidents Club are noted on the basis of
speed and innovation. Once again, the 18 winners work closely with NIITs president to
enrich the organization. Similarly, Modi Xerox has instituted an Honours Club, which
recognizes outstanding performance, So far, 350 employees from the company have
bagged their honours, an all-expenses-paid holiday abroad.
Club membership is available for even non-members but who have stayed with
the organizations. For instance, NIIT has an Old Timfers Club for employees who, have
been with the company for five years, and a Real Old Timers Club for those who have
completed 10 years. Members of both the club receive special recognition along with
plaques. In addition, NllT has introduced paternity leave for men employees, with the
added options of employment and an additional Rs 200 conveyance allowance for new
parents. The new year day has been designated as 'Granny Gratitude Day' and is a
compulsory holiday for all. Colgate- Pa1molive, Modi Xerox and NllT conduct annual
painting contests for their respective employees children. NllT uses the award-winning
painting for its calendar.

ADMINISTRATION OF BENEFITS AND SERVICES

Organisations fumble while administering employee benefits and services. Yielding to the
pressure of Union employees, demand or in deference to social response trends,
companies have added newer Benefits and services to the list, which is already lengthy.
Organisations have seldom established objective, systematic plans, and standards to
determine the appropriateness of the programmes. This patchwork of benefits and
services has caused several problems.

Problems in Administration
The main problem in indirect remuneration is the lack of employee participation. Once a
fringe benefits programme is designed by the company, employees have little discretion.

38
For example, the same pension usually is granted to all workers, Younger employees see
pensions as distant and largely irrelevant. Older female workers feel that membernity
benefits are not needed. The uniformity of benefits fails to recognize a workforce
diversity. Admittedly, uniformity leads to administrative and actuarial economics, but
when employees receive benefits they neither want nor need, these economies are
questionable.
Managers, too, have little interest in the benefits programmes and trade unions are
almost hostile to the schemes. Managers are not even aware of the companys policy
towards benefits and their contribution to the quality of corporate life. Trade union
entertain a feeling of alienation as the benefits are likely to erode their base.
Since employees have little choice in their benefit packages, most workers are
unaware of all the benefits to which they are entitled. This lack of knowledge often
causes employees to request for more benefits to meet their needs. For example, older
workers may want improved retirement plans, while younger workers seek improved
insurance coverage for dependents. The result is often a proliferation of benefits and
increased employer costs. And perhaps even worse, employee confusion can lead to
complaints and dissatisfaction about their fringe benefit package, particularly when
employees do not have to contribute financially.
These problems can be avoided if the following lines are taken while
administering indirect remuneration. The steps are (see Fig. 13.2):
1. Establishing benefit objectives.
2. Assessing environmental factors,
3. Assessing competitiveness: How should our benefits compare to our competitors,
4. Communicating benefit information
5. Controlling benefit costs and evaluation.

ESTABLISHING BENEFIT OBJECTIVES

It is essential for the management to establish objectives for its benefit programmers . In
establishing objectives, the management may consider several factors. One such
consideration is employees preference for benefits. Personnel / HR outcomes- attendance,

39
length of service, and performance should also receive due attention in the objectivesetting process.

Typically,

benefits

accomplish

four

objectives:

(i)

fostering

external

competitiveness, (ii) increasing cost effectiveness, (ill) meeting individual employee'

needs and preferences, and (iv) complying with legal compulsions.I4 Whatever the
objectives, they must reflect the organisation's ability to pay.

Assessing Environment
External as well as internal factors influence a company's indirect remuneration
programmes. Among the external factors are included such aspects as government
policies and regulations, unions, and economic factors. The major government policies
which influence employee benefits and services are wage regulations, tax policies, and
specific benefit laws. In addition to government policies, unions are a dominant force to
improve benefits and services. When labour unions and the management 51, for a wage
negotiation, benefits and services figure prominently in their discussion and the settle
reached invariably covers indirect remuneration to the advantage of the employees.
Economic factors influence benefit decisions in conflicting ways. Struggling to achieve

40
competitive prices for their products and services, managers look to reduce, or at least
curtail, increases in labour costs. As their products and services, mangers look to reduce,
or at least curtail, increases in labour costs. As indirect remuneration constitutes a major
chunk of labour costs, benefits and services receive tap priority in the cost-reduction
drive.
On the other hand, competition in the labour market to attract and retain
production employees creates pressure to match the benefits offered by others.
Organisational strategies and objectives, employee preferences and demographics
constitute the internal environment of employee benefits and services. A large, wellestablished employer in a growing or mature industry, for example, may offer a relatively
better benefits package. But a smaller, newly formed, emerging company may find that
the high fixed costs attached to many benefits, particularly pensions, entail too great a
financial burden. Instead, such organisations emphasise incentive pay or profit sharing,
where costs vary with company's profitability and de-emphasise insurance or other fixedcost benefits.
The preferences and demographics of a particular employee in an organisation
also affect indirect remuneration. Most employee benefits are tax free, and hence are
likely to appeal to employees with higher incomes. A vast majority of workers may not be
attracted by such tax-free benefits. For them, fewer tax advantages exist, or these
employees may have more immediate needs which can be met only by cash benefits.
Similarly, employees having college-going children or marriageable daughters have
different benefit preferences than those who are newly hired with working spouses and
children who have not reached the school-going age.

Assessing Competitiveness
More often than not, organisations offer benefits to match or outstrip those offered by
competitors. How to ascertain the competitors' benefit packages? These are assessed
through market surveys conducted by professional associations and consultants. These

41
surveys provide data on the various benefits offered, their coverage, eligibility and costs.
The data allow employers to assess the competitiveness of their benefits and costs, with
those offered by others.

Communicating the Benefits

Benefit programmes must be communicated to employees through booklets, brochures,
slide presentations, and regular employee meetings. An effective technique is to use
employee calendars, which communicate the total remuneration components. Each month
of the calendar shows a company employee receiving a benefit. For example, one month
may feature a photo of an employee building a new home, made possible through the
company's savings plan. Another month may feature the usefulness of the company's
medical plan.
Communication helps remove ignorance of employees (and of employers too)
about indirect remuneration. Further, employers might be able to increase the
productivity and the advantages of good employee benefits by making employees aware
of what the company does for them, that does not appear on their pay slips.

42

Evaluation and Control

One way of assessing the usefulness of fringes is to ascertain how far the advantages
claimed in favour of indirect monetary schemes have really benefited the employees. The
questions relevant in this context are: (i) Have the earnings of employees improved? (ll)
Have the benefits been able to attract and retain competent people? (ill) Has the morale of
employees gone up? (iv) Have industrial relations improved? The answers to these and
other related questions help HR managers assess the effectiveness of fringe benefits and
also to redefine benefit objectives.

Effect on Costs Cost of fringe benefits is a reliable test of their effectiveness. Employee
benefit costs can be computed on the following lines:
1. Total cost of benefits annually for all employees.
2. Cost per employee per year.
3. Percentage to annual payroll.
4. Cost per employee per hour.
Cost-benefit analysis is a reliable tool to evaluate the effectiveness of benefits programme
The data thus found may be examined in the following manner:
1. Examine the internal cost to the company of all benefits and services by pay roll
classification, by profit centre.
2. Compare the company's costs for benefits with external norms. For example, compare
its costs, average costs to averages by industry, and so on, for the package as a whole
and for each benefit.
3. Prepare a report for the decision-maker, contrasting Steps 1 and 2, and highlighting
major variances.
4. Analysis the costs of the programme to employees. Determine what each employee is
paying for benefits, totally and by benefit.
5. Compare the data in Step 4 with external survey data.

43
6. Analyse how satisfied the individual is with the employer's programme as compared to
the competitor's programme.
Periodic action on the above lines would not only control benefit costs but would
also ensure usefulness of fringe benefits.

THE FUTURE OF FRINGE BENEFITS

Current benefit packages have evolved over the years from plans that addressed
the basic needs of the workers and provided minimum benefits to the individuals. Today,
we see a much more complex pattern of plans with enhanced flexibility, tailored to meet
the needs of individuals and costing public sector and private sector organisations dearly
in terms of rupees. Employees in general are more educated, more sophisticated and more
demanding of remuneration including fringe benefit. Employers are, therefore, required
to devise newer benefit plans to attract and retain competent personnel, keeping a watch
on the benefits costs. Certain guidelines to make benefit programmes more effective are
given here.

44

DIFFERENT POLICIES
CONSOLIDATED OFFICE ORDERS.
1. ADVANCE
2. ALLOWANCE
3.

DISCIPLINE

4.

ESTATE AND HOUSING

5.

ESTABLISHMENT MATTERS (RESPONSE TIME FRAME)

6.

GENERAL ADMINISTRATION

7.

INCENTIVE & REWARD SCHEME

8.

INDUSTRIAL RELATION

9.

JOB ROTATION & TRANSFER POLICY

10. LEAVE ROLES

11. LEGAL
12. MEDICAL
13. OFFICIAL LANGUAGE (RAJBHASHA)
14. PAY
15. REIMBURSEMENT AND CLAIM
16. SERVICE ROLES
17. SEPARATIONS
18. TRAINING & FINANCIAL EMOLUMENTS/
HONORARIUM
19.

TRAVELLING ALLOWANCE

20.

TRUST

21.

WELFARE

22.

HOSPITALITY

45

WELFARE POLICIES
1. GRATUITY ROLES
2. HOLIDAY HOME
3. LEAVE FARE ASSISTANCE
4. SCHEME FOR Ex GRATIA TO PRE 15.10.1959 EMPLOYEES
5. AGRANI SAMMAN Ex GRATIA BENEFITS SCHEME
6. CHILDREN EDUCATION ALLOWANCE
7. HOUSE & CONVEYANCE MORTGAGE REDEMPTION SCHEME
8. TRANSPORT/ BUS FACILITY
9. SPECIAL AWARDS TO CHILDREN ON SECURING POSITIONS
10. ONGC SCHOLARSHIP FOR SC/ ST STUDENTS
11. Ex OFFICIO PRESIDENT TO OFFICERS CLUB AND
MAHILA SAMITI
12. CORPORATE CITIZENSHIP POLICY
13. ONGCs SPORTS POLICY
14. REIMBURSEMENT OF ADDITIONAL CANTEEN
SUBSIDY TO THE EMPLOYEES OF UNIONISED
CATEGORY
15. ONGC EMPLOYEMENT ASSISTANCE SCHEME

ADVANCE
1. HOUSE FURNISHING ADVANCE
2. LUMSUM ADVANCE FOR UNIONISED CATEGORY
3. COMPUTER ADVANCE
4. CONVEYANCE ADVANCE
5. HOUSE BUILDING ADVANCE (HBA)
6. LAPTOP ADVANCE

46

INCENTIVE AND REWARD SCHEME

1. INCENTIVE FOR HIGHER QUALIFICATION
2. INCENTIVE FOR TERRITORIAL ARMY
3. PAYMENT OF RESERVE ESTABLISHMENT HONORARAIUM (REH)
4. ANNUAL REWARDS

ALLOWANCE
1. PRODUCTIVITY ALLOWANCE
2. OFFSHORE HARD DUTY ALLOWANCE
3. SHIFT ALLOWANCE
4. NORTH EAST (NE) ALLOWANCE
5. NON- PRACTISING ALLOWANCE (NPA)
6. TRIBAL AREA ALLOWANCE
7. COMPOSITE HILL ALLOWANCE
8. DRILLING ALLOWANCE
9. REMOTE LOCALITY ALLOWANCE
10. OPERATIONAL ALLOWANCE
11. OVERTIME ALLOWANCE
12. CONVEYANCE MAINTAINANCE REIMBURSEMENT
EXPENDITURE (CMRE)
13. TRANSPORT ALLOWANCE
14. HOUSE RENT ALLOWANCE (HRA)
15. JOB LINKED ALLOWANCE
16. HOUSE RENT RECOVERY (HRA)
17. SPECIAL ALLOWANCE FOR FIRE PERSONNEL
18. KIT MAINTAINANCE ALLOWANCE
19. FOOD COMPENSATORY ALLOWANCE
20. CHARGE ALLOWANCE FOR ED/AED/GGM

47

MEDICAL
1. REIMBURSEMENT OF COST OF SPECTACLES/ DARK
GLASSES/GOGGLES
2. FIRST AID TRAINING & BLOOD DONATION
3. MEDICAL FACILITIES TO CONTINGENT EMPLOYEES
4. RESPONSIBILITY OF CONTROLLING OFFICER IN CASE OF ACCIDENT
5. LOCAL PURCHASE OF MEDICINES IN EMERGENCY
6. MEDICAL FACILITY FOR FREEDOM FIGHTERS
7. MEDICAL FACILITY FOR CISF PERSONNEL
8. INCENTIVE FOR ADOPTING SMALL FAMILY NORM
9. MEDICAL FACILITY FOR RETIRED/ SEPARATED EMPLOYEES
10. INCOME CEILINGS FOR DETERMINING DEPEDANCY
OF PARENTS
11. MEDICAL FACILITY FOR REGULAR EMPLOYEES
12. REIMBURSEMENT OF MEDICAL CLAIMS FOR
TREATMENT IN EMERGENCY IN PRIVATE HOSPITALS
13. PERIODICAL MEDICAL EXAMINATION (PME)
14. RENDERING ASSISTANCE TO PHYSICALLY
CHALLENGED
15. ENTITLEMENT OF CLAS OF ACCOMODATION IN
HOSPITALS
16. GUIDELINES/CHECKLIST FOR TREARMENT ABROAD
AND MEDICAL CHECKUP FOR TRANING ABROAD
17. GUIDELINES FOR EMPOWERMENT OF HOSPITALS,
NURSING HOMES AND MEDICAL SPECIALISTS
18. EXTENTION OF MEDICAL FACILITY TO THE
DEPENDANTS OF EMPLOYEES WHO DIE WHILE IN
SERVICE
19. GUIDELINES FOR ENGAGEMENT OF DOCTORS AND
PARAMEDICAL STAFF ON CONTRACT

48

RESEARCH METHODOLOGY
DEFINATION OF RESEARCH :
According to Clifford Woody , It comprises defining and redefining problems;
formulating hypothesis or suggested solutions; collecting, organizing and evaluating data;
making deductions and reaching conclusion; and at last, carefully testing the conclusions
to determine whether they fit the formulation hypothesis.

RESERCH DESIGH:
Specification of methods and procedures for acquiring the information needed.

DESCRIPTIVE DESIGN :
These desigh are used to establish accurate descriptions of variables relevant to the
decision being taken without demonstrating the existence of the relationships between
variables.

SAMPLE DESIGN
The sample design is usually consistent to the relevant popularion specific to the
research problem.
The researcher concentrate on three things while designing the sample.

Sample Unit: The sample unit decided was from E-1 level to E-6 level. ie from
Officer to General Manager

From where the sample was selected : TEL BHAVAN, KDMIPE, GEOPIC
Branch of ONGC.

49

The sample size: 60 employees

The process of selection: Random Sampling

Tools of data collection : QUESTIONNAIRE METHOD

LIMITATIONS OF THE PROJECT

1. Sample size was 60 which cannot be true respective of the company having more
than 21000 executives in office work. More response was collected from the
executives in office work response so collected have across the corporation

2. The efforts has been made to distribute the questionnaire in proportion of the
employee in different business groups to have a true representative of all the
business group. The response received are not in similar proportion.

3. Executive in a company are spread at all level. The

questionnaire should have been distributed in proportion to
their strength.

4. The assignment being very challenging and of exhaustive in nature require

appreciable time to carry out the survey and to compile recommendation.

5. It was observed that upon a certain extent executive were trying to get a idealistic
response there after a correction factor has to be done.
6. Feed back is not communicated in general.

50

RESULTS AND FINDINGS

Q.1) The company has excellent Benefits & Welfare Facilities for the employees
and their families.

FINDINGS : 98% of the people agree that company has excellent benefits
& welfare facilities.

Q.2) Benefits are fair for responsibility.

FINDINGS : 82% Employees agree that benefits are fair for responsibilities,

51

Q.3) The office environment is conducive.

FINDINGS : Almost 66% people agree that office environment is

& 5% people disagree to this.

Q.4) Representing the company at public forum is based on authority.

FINDINGS : More than 50% people agree that representing the

Company should be based on authority.

52

Q.5)

Job rotation & transfer is based on organizational requirement.

FINDINGS : Almost 44% employees agree that job rotation & transfer is
Based on organizational requirement while 23% employees
Strongly disagree to this.

Q.6)

The amount of leaves are satisfactory

FINDINGS : Employees agree that the amount of leaves are satisfactory

while non strongly disagree to this.

53

Q.7) All the system facilities & utilities are fully documented.

FINDINGS :

80% employees agree that system facilities & utilities

are fully documented while 17% were neutral.

Q.8) Entitlement of class accommodation in hospitals is necessary.

:
FINDINGS :

More than 50% employees agreed to this while 5% strongly

disagree to this and 13% were neutral.

54

Q.9) LFA policy is beneficial to employees.

FINDINGS : 40% Employees strongly agree that LFA Policy is beneficial

But 2% disagree to this.

Q.10) Periodical medical examination is beneficial.

FINDINGS: 43% employees strongly agree & 47% agreed that

Periodical medical examination is beneficial, while non
Disagree to this.

55
Q.11) The availment & reimbursement of various policies and
through SAMPARC is effective.

FINDINGS: More than 50% employees agreed & 40% strongly agree that
SAMPARC is effective.

Q.12) ONGC Sports policy is successful in reducing the stress

of monotonous work.

FINDINGS: Almost 77% employees agreed that ONGC sports policy is

effective 5% disagree & 3% strongly disagree.

56
Q.13) The present ONGC Retirement policy is beneficial to secure the future.

FINDINGS: 40% employees are strongly satisfied with the ONGC

Retirement policy while 15% are not satisfied.

Q.14) The Agrani Samman Ex Gratia Benefit is good

enough to sustain the life of old people.

FINDINGS: 75% Employees agree that Agrani Samman Ex Gratia

Benefit is good while 15% disagree to this.

57
Q.15) Initial training should be provided as much as possible.

FINDINGS: 93% Employees agree that initial training must be provided

While 7% were neutral but non disagree.
Q.16) Certain employee Benefits are biased.

FINDINGS: 15% Employees agree that certain employee benefit are biased
While 40% were neutral but 35% disagree to this.

58

Q.17) Medical facilities are adequate & provided on time.

FINDINGS: 90% Employees are satisfied with the medical facilities while
3% are dissatisfied.

Q.18) All the allowances & advances are provided on time.

FINDINGS: 96% Employees are satisfied with the allowances & advances
While 1% disagree to this.

59

Q.19) Get all information about the events and affairs of the company which have an
effect on the work

FINDINGS: 78% Employees agree that they get all information about the
Events and affairs of the company.

Q.20) Employees receive recognition and appreciation for their abilities,

efficiency & good work done.

FINDINGS: 65% Employees agree that they receive appreciati15% strongly disagree to
this & 20% were neutral.

60

Q.21) Have good opportunities to learn new skills and new jobs.

FINDINGS: 82% Employees agree that they have good opportunities to new
Skills & new jobs, while 5% disagree.

Q.22) The current Promotion policy is satisfactory.

FINDINGS: More than 50% employees agree that the current retirement
Policy is satisfactory, while 20% disagree & 22% were neutral.

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Q.23) The annual Increments & Benefits should be directly linked
to performance & attendance.

FINDINGS: Almost 70% employees agree that increments & benefits

Should be linked to performance, while 23% were neutral.

Q.24) The VRS scheme of ONGC is satisfactory.

FINDINGS: 53% Employees are satisfied with the ONGC retirement policy, while
33% are neutral & 14% disagree to this.

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Q.25) The House Building advance scheme is satisfactory.

FINDINGS: 75% Employees are satisfied with the House Building Advance scheme,
while 12% disagree to this.

Q.26) Children education allowance is beneficial to employees and their

wards.

FINDINGS : 95% Employees are satisfied with the Children Educatuon allowance
While 2% are dissatisfied.

SUGGESTIONS

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Fringe benefits programmes should be looked at as worth while Corporate

instrument in HRM.

Future policy planning in this area will have to keep in view some fresh
reference points. Non unionization and skill shortage are no more relevant for
policy considerations.

Any meaningful package of benefits must reflect some perspective Planning.

Inflexibility brings stagnation.

Separate programmes directly beneficial to workers from those that are

directed towards community welfare. Clubbing them together adds to their
cost. This may not be liked by workers.

It is advisable not to have a facility rather than neglecting it in its

administration.

Poor internal communication hurts the programme in at least three ways:

(i) more money is spent for officers welfare; (ii) excess
money spent on corporate image building at the cost of more bonus; (iii)
priority to officers children in admission to school. Therefore, make the
internal communication system effective.
Devise new ways to involve workers and their representatives at all levels of
planning and implementation.

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CONCLUSION
The study can be concluded by saying that the Executives have a positive attitude
towards employee benefits and services. The Managers really appreciate the Benefits and
Services provided to employees. The Managers are ready to empower employees by
giving responsibility and accountability, Information , better means of communication ,
opportunity to create new ideas and to use them to enhance Quality of work , Motivating
them getting their participation and involvement in work decisions , and rewards.

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BIBLIOGRAPHY

Organisation behavioural

--

(L.M. PRASAD)

Personnel HRM

--

(STEPHENP.ROBBINS)

Human Resource Management --

(ASWATHAPA)

Oil & Natural Gas Corporation --

( JOURNALS &
MAGAZINES OF ONGC )

Hindustan Times

--

( Articals Regarding
ONGC From HT )

Internet

--

Visit to ONGC sites:

www.ongcindia.com
www.ongcvidesh.com

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QUESTIONNAIRE

Name Age Gender Length of tenure in the organization

Designation Strongly
Agree

The company has excellent Benefits &

Welfare
Facilities for the employees and their
families.

Benefits are fair for responsibilities.

The office environment is conducive.

Representing the company at public forum is based on

authority.

.Job rotation & transfer is based on organization

requirement.

The amount of leaves are satisfactory.

All the system facilities & utilities are fully documented.

Entitlement of class accommodation in hospitals is

necessary.

LFA policy is beneficial to employees.

1
0

Periodical medical examination is

beneficial.

11

The availment & reimbursement of various policies and

schemes through SAMPARC is effective.

1
2

ONGC Sports policy is successful in reducing the stress

of monotonous work.

1
3

The present ONGC Retirement policy is beneficial to

secure the future.

1
4

The Agrani Samman Ex Gratia Benefit is good enough

to sustain life of old people.

Agree

Neutral

Dis
agree

Strongly
Disagree

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1
5

Initial training should be provided as much as Possible.

1
6

Certain Employee Benefits are biased.

1
7

Medical facilities are adequate & provided on time.

1
8

All the allowances and advances are provided on time.

1
9

Get all information about the events and affairs of the

company which have an effect on the work.

2
0

Employees receive recognition and appreciation for their

abilities, efficiency & good work done.

2
1

Have good opportunities to learn new skills and new

jobs.

2
2

The current Promotion policy is

satisfactory.

2
3

The annual Increments & Benefits should be directly

linked to performance and attendance.

2
4

The VRS scheme of ONGC is satisfactory.

2
5

The House Building advance scheme is satisfactory.

2
6

Children education allowance is beneficial to employees

and their wards.
Very
Satisfied

2
7

How satisfied are you with the physical conditions

mentioned below in the organization.
Drinking water facilities
Toilet facilities
Lighting
Work area space
Maintenance of computer & other equipment
Cleanliness of work place
Sports club
Noise control
Telephone facilities
Canteen facilities
Thank you for your cooperation

Satisfied

Uncertain

Dis
satisfied

Very Dis
satisfied

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