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SCHEME OF THE REPORT
1-Chapter 1
Chapter 1 covers the background of the study, purpose, scope, limitations, merits,
methodology and scheme of the study.
2-Chapter 2
Chapter 2 covers the oil industry in Pakistan, history of OGDCL and the organizational
structure comprehensively. This chapter also presents functions, projects, product line, mission and
objectives as well.
3-Chapter 3
In chapter 3, the organizational structure and its structure is discussed comprehensively. More
attention is given to the different departments working in and under OGDCL and how these
departments operate.
4-Chapter 4
This chapter focuses on human resource department of OGDCL. It explains the
administration and personnel department and its practices in the organization in detail.
5-Chapter 5
This chapter is all about SWOT analysis in which strength, weaknesses, opportunities and
threats are discussed.
6-Chapter 6
In chapter 6, problems of OGDCL are identified and then on these bases some suggestions
are given keeping in view the current situation of the organization. The effort is directed for efficient
performance
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OGDCL
CHAPTER 1
INTRODUCTION
Prior to OGDCL's emergence, exploration activities in the country were carried out by Pakistan
Petroleum Ltd. (PPL) and Pakistan Oilfields Ltd. (POL). In 1952, PPL discovered a giant gas field at
Sui in Balochistan. This discovery generated immense interest in exploration and five major foreign
oil companies entered into concession agreements with the Government.
During the 1950s, these companies carried out extensive geological and geophysical surveys and
drilled 47 exploratory wells. As a result, a few small gas fields were discovered. Despite these gas
discoveries, exploration activity after having reached its peak in mid-1950s, declined in the late
fifties. Private Companies whose main objective was to earn profit were not interested in developing
the gas discoveries especially when infrastructure and demand for gas was non-existent. With
exploration activity at its lowest ebb several foreign exploration contracting companies terminated
their operation and either reduced or relinquished land holdings in 1961.
1.1
Establishment of OGDC:
To review exploration in the energy sector the Government of Pakistan signed a long-term loan
Agreement on 04 March 1961 with the USSR, whereby Pakistan received 27 million Rubles to
finance equipment and services of Soviet experts for exploration. Pursuant to the Agreement, OGDC
was created under an Ordinance dated 20th September 1961. The Corporation was charged with
responsibility to undertake a well thought out and systematic exploratory programs and to plan and
promote Pakistan's oil and gas prospects.
As an instrument of policy in the oil and gas sector, the Corporation followed the Government
instructions in matters of exploration and development. The day to day management was however,
vested in a five-member Board of Directors appointed by the Government. In the initial stages the
financial resources were arranged by the GOP as the OGDC lacked the ways and means to raise the
risk capital. The first 10 to 15 years were devoted to development of manpower and building of
infrastructure to undertake much larger exploration programmes.
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OGDCL
1.2
Initial Successes:
A number of donor agencies such as the World Bank, Canadian International Development Agency
(CIDA) and the Asian Development Bank provided the impetus through assistance for major
development projects in the form of loans and grants. OGDC's concerted efforts were very successful
as they resulted in a number of major oil and gas discoveries between 1968 and 1982. Two oil field
was discovered in 1968 which paved the way for further exploratory work in the North. During the
period 1970-75, the Company reformed the strategy for updating its equipment base and undertook a
very aggressive work programme. This resulted in discovery of a number of oil and gas fields in the
Eighties, thus giving the Company a measure of financial independence. These include the Thora,
Sono, Lashari, Bobi, Tando Alam & Dhodak oil/condensate fields and Pirkoh, Uch, Loti, Nandpur
and Panjpir gas fields which are commercial discoveries that testify to the professional capabilities of
the Corporation.
1.3
PGCL:
A wholly owned subsidiary, the Pirkoh Gas Company (Private) Limited (PGCL) was established in
1982 to undertake development of Pirkoh gas field located in Dera Bugti Agency in Balochistan with
Asian Development Bank assistance.
1.4
practical training programme to professional of the petroleum industry, provide training advice and
guidance to OGDC and to help established standards for training which will meet the performance
needs in the field and on the job. OGTI is dedicated to:
Establish courses and in-house training programmes which will meet the specific needs of
OGDC and the Pakistan petroleum industry.
Designing training material that recognizes the capabilities and specific needs of newly hired
employees and those who change their job assignment. Providing refresher and upgrade training for
industry personnel in cost effective manner.
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OGDCL
In-house basic training programmes are being designed and developed to provide a base level of
training which employees require to function in their jobs . OGDC recruits men from all across
Pakistan. The universities and technical schools do not provide the full range of subject matter
necessary for a graduate entering the petroleum industry. It is OGTIS intention to ensure that the
individual has an opportunity to obtain this training within his first two years with OGDC . In
addition to basic training courses , OGTI will Organizes in-house technology update seminars .
1.5 BACKGROUND OF THE STUDY
Oil industry is a lifeline for an economy. It is a world of oil exploration, oil refining and oil
marketing. Pakistan understands the importance of this industry for its economic uplift. Therefore the
government of Pakistan established OGDCL in 1961. OGDCL is the leading firm providing 23% of
total consumption, saving Pakistan from imports and contributing to economy by paying different
charges to the government.
1.6 PURPOSE OF THE STUDY
This report is based on study carried out for the fulfillment of the degree requirement of the Master
in business administration at the COMSAT Institute of information technology. The purpose of the
study is to do practical work in field and apply the knowledge of classroom lectures to the real life
situations.
1.7 SCOPE OF THE STUDY
The scope of my work is focused on the working of Personnel and Human Resource Department.
Review Section of this report not only explains departments working but also flow of work activities
among the sections. During the internship it, the observation was focused on internal managerial
matters of OGDCL, i.e. work environment, organization structure, decision-making process,
promotion criteria and all such matters. This research facilitates in SWOT Analysis.
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OGDCL
makes the analysis restricted as one cannot properly understand and thus analyze all the operations of
an organization just in eight weeks.
1.9 MERITS OF THE STUDY
The study done will benefit the finance students in particular and all type of Management students in
general, because the analysis section of this report comprehensively encompasses all respects of
OGDCL. Furthermore, OGDCL Head office Islamabad may also benefit from the recommendations
made at the end of the report.
1.10 METHODOLOGY OF STUDY
The data collected for analysis and review includes both primary and secondary data. The methods
used for collecting primary and secondary data are as follows:
1.10.1 Primary Data
Data collected for the first time is called primary data. The methods used to collect such data include:
OGDCL brochures
Journal and
Newspaper
Internet
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OGDCL
CHAPTER 2
PRESENT STATUS OF THE COMPANY
2.4
Merit
Integrity
Team Work
Safety
Dedication
Innovation
OBJECTIVES
a. Developing E & P Work Flow Models for Data Integration and connectivity.
b. Conduct geoscientific, algorithms and systems architecture research leading to the
development of robust, interactive and user-friendly geosciences applications software that
are tightly integrated into the workflow environment.
c. Detailed testing of the developed applications to achieve the highest performance.
d. Detailed testing of the developed applications to achieve the highest performance.
e. Training and systems support to the end - users.
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OGDCL
2.5
2.5.1
1961, to undertake comprehensive exploratory programme and promote Pakistans oil and gas
prospects. In 1997, it was converted into a Public Limited Company and is now governed by the
Companies Ordinance 1984.
2.5.2
Development
With a balanced, efficient and competitive structure, OGDCL explores and exploits
indigenous resources for optimum production of oil and gas, besides seeking opportunities abroad.
OGDCL has the largest acreage position in Pakistan and currently operates 17 exploration
concessions and holds non operated working interest in another 7 exploration concessions. In
addition OGDCL has 35 Mining and Development & Production Leases, which are operated by it
besides having working interest ownership in 28 non-operated Mining and Development &
Production Leases, OGDCL has an extensive database. Services of the Companys highly qualified
and skilled expertise in the fields of geology and geophysics are frequently availed y the local and
foreign oil companies. It also leases out its drilling rigs to the private sector and carries out seismic
surveys and data processing on contract for these companies on extremely competitive rates.
OGDCL now holds the largest shares of oil and gas reserves in the country, i.e. 48% of total
oil and 37% of total gas reserves. Its percentage share of the total oil and gas production in Pakistan
is 34% and 28% respectively. On the basis of its activities since inception, the company has until
June 30, 2003 and made 59 discoveries with a success ratio of 1:3. OGDCLs updated estimates for
remaining recoverable oil and gas reserves as on 1st July, 2003, stood at 9.228 billion
standard cubic feet (BSCF) of gas and 164.25 million barrels of oil including companys share in non
operated Joint Ventures.
During the last 42 years OGDCL has grown into a technically and commercially viable
organization.
2.5.3
Islamabad, Pakistan.
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OGDCL
Telephone:
051-9209701
Fax No:
051-9209708
2.5.4
Product line
In the product line of OGDCL, the following are its products by which it is earning profits:
a. Crude Oil.
b. Gas.
c. LPG.
d. Sulphur.
e. Gasoline/High and Low Speed Diesel.
f. Kerosene Oil.
g. Naphtha.
h. Solvent Oil.
2.7
The main functions of the Corporation are:a. To plan, organize and implement programmes of exploration of development of oil and as
resources.
b. To carry out geological, geophysical and other surveys for the exploration of oil and gas.
c. To carry out drilling and other prospecting operations to prove and estimate the reserves of
oil and gas.
d. To produce, refine and sale oil and gas
e. To perform other functions as the Federal Government may from time to time assign to the
Corporation.
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OGDCL
2.8
PROJETS
2.8.1
in the central Indus basin, south of kandhkot and Sui gas field.
In accordance with the consolidated revised development plan dated 30 November, 2002
phase-II revamp project was commissioned on 23 January 2004 to process MMscfd of gas. Under
this plan pretreatment memguard unit and new membrane elements were installed and drilling of one
well was completed.
Phase-III of this project was commissioned on 20 march 2004, by installation of two
additional membrane skids and drilling of two wells. Due to this expansion the capacity of plan has
increased to process gas up to 500 MM.
2.8.2
production from 17 July, 2004, and is currently producing 3,500 barrels of oil and 13 MMscf of gas
per day. Chanda LPG plant will also be installed by October 2004 were 25-40 M.tons of LPG will be
produced. The
third well at Chanda field is planned to be in third quarter of 2004-2005.This will increased
the production of field to 5,300 sbarells of oil and 19 MMscf of gas per day.
2.8.3
producing 1,050 barells of stabilized condensate per day. Phase-II of the project is expected to be
streamlined in October 2004. On its completion, the field will produce about 2,800 barrels of oil per
day and 125 M.tons of LGP Satellite fields namely Mithrao and chak dim will
2.8.4
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OGDCL
Mega Projects
Projects
Completion
Estimated Cost
Chanda
Development
Prod Capacity
LPG: 25 MTD
January, 2007
$ 9 Million
Project
Oil.: 720 BPD
Dakhni
Expansion
February, 2009
Rs.1803 Million
Project
Gas: 12MMscfd
LPG: 12 MTD
Sulphur: 80 MTD
a). To maintain
Qadirpur
Compression
Project
plateau of gas
September, 2008
December, 2007
$ 160 Million
production 650
MMscfd
b). Additional 100
MMscfd gas
Dhodak
Expansion
Project
Uch-II
Development
Project
TAY
Development
Project
Sinjhoro
Page 10 of 63
A Bid to be invited
afresh
March, 2009
(As conveyed by
$ 250 Million
PPIB)
A Bid to be invited
afresh
A Bid to be invited
afresh
Gas: 25 MMscfd
LPG: 224 MTD
OGDCL
Chapter 3
ORGANIZATIONAL STRUCTURE
3.1
MAIN OFFICES
OGDCL Head Office is situated at Jinnah Avenue, Blue Area Islamabad and Regional
Offices are located in Karachi and Multan. Besides this OGDCL has its Liaison Offices in
Hyderabad, Sukkhur, and Quetta for operational activities. The overall organizational
structure / organogram is as under
A Board of Directors comprising twelve Directors, all of whom are nominated by the
Ministry of Petroleum and Natural Resources, is responsible for policy related issues. The
autonomous Board is headed by a non-executive Chairman and there is a Managing
Director/Chief Executive Officer.
Following are the main offices located throughout Pakistan:
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1.
2.
3.
4.
5.
6.
7.
OGDCL
8.
9.
10.
11.
12.
13.
14.
15.
Corporate Department
Page 12 of 63
1.
Administration Department
2.
3.
Personnel Department
OGDCL
4.
Security Department
5.
6.
Communication Department
7.
Procurement Department
8.
Stores Department
9.
10.
Audit Department
E&P Departments
1.
Exploration Department
2.
Exploitation Department
3.
Production Department
4.
Process Department
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1.
Drilling Department
2.
3.
OGDCL
4.
5.
Cementation Department
6.
7.
Engineering Department
8.
9.
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OGDCL
BOARD OF DIRECTORS
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OGDCL
Jalaluddin Qureshi
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OGDCL
Previously held various positions at Caltex / Chevron since 1968 including Country
Head since 1998
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OGDCL
Pakistan.
Director on Boards of SNGPL, SSGCL, Pirkoh Gas Company, Mari Gas Company
Limited, etc
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OGDCL
3.4
All policy related issues are dealt by the board of Directors that is headed by a non-executive
Chairman and a full time Managing director. The general direction, policies and affairs of the
Company vests in a Board of Directors, which consists of 01 Chairman, 10 Directors and 01
Managing Director (MD). MD is responsible for operational and other activities. The
OGDCL has been re-organized during the last few years; it now operates much purely as Oil
Company does. Emphasis is on Professional Competence and getting things done. OGDCL
can broadly be divided in to following three companies:
Corporate
Exploration & Production (E& P )
Technical Services
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OGDCL
The whole organization has been streamlined on the functional basis and it has
emerged as an efficient unit, while speed and competence are its Hall Mark. It is now divided
into separate departments and each department is in a position to work independent business
unit.
For effective operational activities, different Executive Directors performs following
activities in consultation with General Managers, who are assisted by the concerned
Departmental Managers:
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OGDCL
3.5
NO OF EMPLOYEES
DOMICILE
GROUP MeritPUNJAB
SINDH
URBAN RURAL TOTAL
MANAGEMENT CADRE
Page 21 of 63
NWFP
TOTAL
BALUCHISTAN
FATA
AK
IN THE
GROUP
OGDCL
M-1
EG IX
EG VIII
11
EXECUTIVE CADRE
EG VII
37
11
60
EG VI
12
102
18
13
31
31
10
195
EG V
19
116
36
49
85
28
11
10
274
EG IV
28
109
29
36
65
34
14
262
EG III
28
178
57
46
103
28
356
EG II
22
204
17
39
56
38
338
EG I
15
132
28
47
75
18
252
TRAINEES 12
69
13
20
33
15
11
154
TOTAL
952
205
252
457
205
63
55
30
1905
143
OVERALL STAFF
PAY
DOMICILE
GROUP MeritPUNJAB
SINDH
TOTAL
NWFP
BALUC-
FATA
AK
GROUP
HISTAN
IN THE
16
163
49
14
63
22
258
15
106
12
25
37
20
170
14
253
58
109
167
58
13
504
13
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OGDCL
12
15
623
59
60
119
113
14
31
920
11
10
148
24
56
80
34
12
286
425
45
67
112
79
20
12
653
164
35
95
130
30
11
351
93
11
16
27
136
670
94
166
260
102
50
17
1109
99
19
28
23
13
168
264
28
79
107
30
63
17
481
198
39
31
70
25
29
26
350
324
70
220
290
41
128
14
798
1392
103
705
808
136
566
45
2949
27
53
4954
649
1654
2303
727
917
30
223
9194
TRAINEE 6
TOTAL
40
3.6
BUSINESS VOLUME
OGDCL is using the modern seismic technology for improving its ability to discover
the unexploited oil and gas potential in the country. A number of major institutional reforms
and improvements have been implemented in all areas of operations enabling the company to
take up the challenge of making the country self-reliant in the energy sector.
As of August 2006, OGDCL has drilled 187 exploratory wells and 239 development
wells since inception. The company has made 60 discoveries with an excellent success ratio
of 1:3. In a short span of only three years OGDCL was successful in making 10 discoveries,
02 Oil discoveries and 08 gas/condensate discoveries. Out of which 09 are in Sindh and 01 in
NWFP. The discovery of well at CHANDA kohat is the first discovery in NWFP and it will
open a new era for hydrocarbon exploration in NWFP.
OGDCL financial performance has been consistently improving with sustainable
growth since the time it became a self-financing Company. The Company is the single largest
contributor of more than Rs. 37 billion to the national exchequer in the shape of royalty,
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OGDCL
duties, taxes and other payments. Its share in the total Oil & Gas production has been 34%
and 21% respectively in the year 2005-06. Its business volume for the last five years has
shown a steady growth as indicated in the schedules given on next page:
Measurement
2001-02
2002-03
2003-04
Thousands
2005-06
05
Scale
Crude Oil
2004-
8,907
8,535
8,705
9,413
9,941
245,537 274,006
277,408
Barrels
Gas
MMcf
161,534
217,927
LPG
M.Tons
93,004
77,402
93,136
90,304
101,322
Sulphur
M.Tons
13,445
16,670
23,234
15,889
18,917
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OGDCL
White
Petroleum
Thousands
1,038
998
989
859
Barrels
10500
10000
9500
9000
8500
Products
Oil Production
8000
7500
2001-02
2002-03
2003-04
Years
Page 25 of 63
2004-05
2005-06
890
OGDCL
ls
rre
Ba
nd
sa
ou
Th
itie
Qu
300,000
ant
Gas Production
250,000
200,000
150,000
100,000
50,000
0
2001-02
2002-03
2003-04
2004-05
2005-06
2004-05
2005-06
2004-05
2005-06
Years
Tons
M.
120,000
tities
Quan
LPG Production
100,000
80,000
60,000
40,000
20,000
0
2001-02
2002-03
2003-04
Years
Sulphur Production
Tons
s M.
20,000
ntitie
Qua
25,000
15,000
10,000
5,000
0
2001-02
2002-03
2003-04
Years
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OGDCL
The Net sales & other revenues for the last five years are as under:
(Rupees in Million)
YEARS
2004-05
2005-06
Net Sales
Revenue
26,209
39,892
41,845
47,058
52,641
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OGDCL
The business volume and the sales revenues are the reflection of an operators
management judgment, execution and skills. OGDCLs financial performance has
been consistently improving since becoming a self-financing entity.
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OGDCL
CHAPTER 4
ADMINISTRATION AND PERSONNEL (HR) DEPARTMENT
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OGDCL
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OGDCL
FUNCTIONS
OF PERSONNEL DEPTT.
1. Maintenance of service record of employees from their induction to retirement and beyond.
2. Transfers Postings.
3. Maintenance of seniority.
4. Handling of Personnel grievances.
5. Processing of Pension / EOBI and retirement cases.
6. Implementation of CBA Managements agreements after every two years duration..
7. Maintenance of Database-Computerization.
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OGDCL
4.1
4.1.1
As we have mentioned above that every section is related to the concerned department. So whenever
any new employees recruit OGDC , the concerned section maintained this personnel record from the
first day. Every employee have their own personal file in personnel department.
4.1.2
Correspondence
The personnel department also maintained the record of each employee for promotion, the minimum
time for promotion is five years. So at the end of every year they check the record of each employee,
his ACR (Annual Confidential Report) , experience qualification etc . Similarly if any employee
want to leave more than 48 days which are Official than concerned department will approval them
and send to t6he personnel section. In short any type of personal problem or work will maintain in
his personal files with personnel department. Its called correspondence.
4.1.3
It is also the function of personnel department that they fixed the pay scale for employees. There are
three types of employees in OGDC.
1.
Executive Group
2.
Staff
3.
Contractual Staff
(EGI - EGIII)
(1 - 16)
Recently personnel department has computerized the whole process to reduce the burden, whenever
they want any type of data immediately, call to computer. They have their own computer section.
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OGDCL
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OGDCL
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OGDCL
4.2
Public relation department is one of the permanent departments of OGDC. Unfortunately it cannot
surely say that on which date and year it was established in OGDCL.
Initially it was started and performs duties in Karachi, but in 1985 shifted to Islamabad along with
whole records.
Public relation department is more concerned with press. The main objective is to provide accurate
and an esteem information to the general public about OGDCLs functions that what OGDCL is
doing. For the development of oil and gas sometime press conference also arranged for this purpose.
Public relation department deliberate plan and sustained efforts to established and maintain natural
understanding between an organization and its public.
It also performs the function to maintain the relation between the management and staff.
Public relation department operates various methods and procedures to inform the public. Various
types of newspapers are mostly used to inform the public. Through newspapers they give
advertisement about OGDCL.
4.3
HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it performs the
function for OGDCLs staff member to hire houses for their accommodation. It has many functions
they are:
Hiring of lodges, rest houses for staff and officer at big cities like Lahore, Karachi Peshawar etc.
4.3.1
Functions
Actually PAO is the head of two major sections, that in general admin section and housing section.
All type of documents/cases are tabled to the PAO for verification and signed. He may approve the
legal .
cases and also has the power to reject illegal cases. Particularly in housing cases the approval of PAO
is must.
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OGDCL
The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to the required
party/person. He is the in charge of overall staff of both sections.
4.4
TRANSPORT SECTION
The main function of transport section is to provide transport facilities to the officer staff member of
OGDCL Islamabad. Various types of vehicle they provide to the officers / staff in various shapes.
4.4.1 Vehicle for Entitled Officer
Manager they provide official vehicles for duty.
4.4.2 Vehicle for General Duty
For each department they provide special vehicle for emergency cases.
4.4.3 Vehicle for Pick and Drops
Large number of coasters for officers and buses for other lower staff are available which perform the
duty of to pick early in the morning and drop at the end of office time the staff to perform their
duties.
4.4.4 Verifier Field Duties.
At each field from 5 to 6 vehicles ready every time for field duties at the time of emergency.
4.4.5 Vehicles for Foreigners
Similarly some vehicles are available for engineers and other staff.
4.5
4.5.1
Legal service department is one of the most simple and little department but its functions are always
maintained on climax position in OGDCL. To deal with court and legal cases, whenever occur in
OGDCL. If any body from outside accused on OGDCL in any affair, then legal service department
stands from management side of OGDCL. They have their own advocates, but mostly they consult
with outside advocates on various fees. On the other side when OGDCL claims on any person or
body of
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OGDCL
person, so at this also they deals the cases same as above. But when inside OGDCL any employee
appeal against any officer under the section rule 25, so if the case is lower level then legal service
department delete that claim by negotiation with employee. After that if the employee is frustrated
then he can go to the court for appeal. It is not essential for employee as well as for legal service
department that they hire advocate for case. Employee can witness in court personally, but legal
service department are always advocates from the management side. It is the information from the
department that mostly cases are go in favors of OGDCL.
4.5.2
Every year medical centre make an arrangement with any drug store on 6% discount. It is a
permanent discount so after check up, the patient may receive the drugs from that particular drug
store. For verification the owner of the drug store send bills to the DCMO at the each month. DCMO
checks and make verification and signed on those bills. After that they refer the bills to the account
department for payment. Vaccination programmed is also processed in MC. They keep money for
vaccination.
4.5.5 Diagnostic Facilities
X-ray and laboratory diagnostic facilities are available at M.C Islamabad.
4.5.6 Hospitalization
Patients are referred for hospitalization as and when required to hospital/nursing, homes
/specialist on the panel of the corporation and re-imbursement is allowed when such facilities
are not availed.
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OGDCL
4.5.7 Medicines
Medicines are provided to patients from entitle panelist chemist through prescription. Emergency
drug are also kept at both medical centre to meet any emergency.
4.5.8 Vaccination
Vaccination facilities for children are available at both medical centers and every Monday is
specially fixed for this purpose.
4.5.9 Ambulance
Ambulance equipped with first aid kit is available at medical centre Islamabad for 24 hours duty.
4.6
4.6.1
Welfare Section
It is just like a bridge between the union and management. It is also a proper channel between the
two bodies.
4.6.2 Functions of Welfare Section
Various types of functions performed by the welfare section are as under:
Conveyance advance, to give amount to the staff members after five years in OGDCL for
conveyance.
Distress grant, at the time when any staff member die, the amount will be given to his wife.
Benevolent fund, in extra fund by pension. i.e. deducted every monthRs.15/- by their income
Similarly large number of facilities they provide to the staff member, due to the arrangement with
management. The union and management make on agreement after every two years. Welfare section
negotiates with union from the management side.
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OGDCL
4.6.3
PENSION SECTION
Pension was introduced in OGDCL after 1984. After 10 years in OGDCL the staff member qualified
for pension and after 25. Years he can demand for pension. The super innovation of the pension is
maximum 60 Years. After 60 years he can not stay more. Accommodation allowance is 50% of the
growth monthly pension supposes that on the age of 25 years of service his pension will be counted
of the 14th scale employee.
As a whole it means that OGDCL will provide pension till 15 years and something. After that the
pension allowance will be counted again.
4.7
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new and old
employees.
4.7.1
4.7.2
Organogram
After circulation to every department they analyze that how many employees perform their duties
and how many are required and they take a deficiency with his scale. This procedure is called
organogram.
After the completion of organogram they take the official approval from chairman and give
advertisement through public relation department of the most required vacancies.
The recruitment procedure of the OGDCL is mostly related with CSS of Pakistan .i.e. as under:Merit
10%
Punjab
50%
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Sindh rural
11.4%
Sindh urban
7.6%
N.W.f.P
11.5%
Baluchistan
3.5%
Fata
04%
A.j.k
02%
After the advertisement they receive application from all Pakistan and take written examination. This
examination is held in those departments, where the candidate want to join and that department send
the result to recruitment section.
The selection procedure is recently shortly changed and is as under:Written Test
40%weitage
Experience
30%weitage
Academic Qualification
30%weitage
The time for a written test is usually one hour. Those candidates who qualified the test then they send
a call for interview if they are not low merit. It should be kept in mind that the interview has no value
and no marks. It is just only for to and to analyze the courage, boldness communication skill,
convincing power and also his dealing with other people.
Recruitment types
Regular
Contract Basis
Trainees Special Trainees
Hiring through Contractor
Classified appointment
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Chairman
Member
Member
Member
Member
4.8
4.8.1
Chairman
Member
Member
Member
Member
DISCIPLINE SECTION
Functions
Discipline section deals with those matters which depend upon any misbehavior, mis-conduct or any
offence which occur in fields and offices by the employees. In OGDCL there is delegation of
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powers .Every higher authority can take action against that evil. After taking action he send a report
to discipline section then discipline section help him in penalties with the approval of executive
directors and chairman under the rule of 1973.
4.8.2
Government servant (efficiency and discipline) rules 1960 which were adopted in the draft service
rules vide part-II statutory notification (SRO)
division) notification No.SRO-1213(1)/73 published in the gazette of Pakistan enter ordinary dated
18-08-1973.These new rules have been adopted by the oil and gas developing company limited and
matters relating to efficiency and discipline of the employees shall henceforth be governed by the
OGDCL servants rules 1973 being issued as annex.
4.8.3
Penalties
Censure;
With holding for a specific period, promotion are increment, otherwise then for unfitness for
promotion financial advancement, in accordance with the rules or orders pertaining to the service
or post.
Stoppage for a specific period, at an efficiency bar in the time scale, other wise then for unfitness
to cross such bars.
Recovery from the pay of the whole or any part of any pecuniary (minority) loss caused to
corporation by negligence or breach of orders.
Major Penalties
Compulsory retirement.
Removal from the service does not but the dismissal from the service does disqualify for future in
this rule, removal or dismissal from service does not include the discharge of a person.
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4.84
Appeal
There will be no appeal against minor penalties. However, a person on whom major penalties is
imposed shall have a right to appeal to the next higher authorities.
Provided that whether the penalties are imposed by order of the board of directors, there shall be no
appeal but the person concerned may apply for review of the order .
Note
The chairmans approval is necessary at all the stages for issuing the show cause notices and enquiry
letter for awarding the final punishment.
Career Planning
Career planning is basically career orientation and career development. Career planning section is
under the control of personnel manager. It informs the employees of OGDCL about their future
planning. That what he performs his duty and also they prescribed to the employees their operational
set up. It informs the employees that what they will do after 5 years And 10 years.
Promotion is main figure of career planning section. The elaboration is as under:The promotion and recruitment criteria of the corporation was notified vide O. M.N.AA, 0103-15
dated 12 November, 1984, where after a few clarifications were also issued from time to time.
However, there have been some problems in application of the promotion criteria in some cases.
Therefore to remove these difficulties, the promotion criteria has been reviewed and revised under
the guidance of the executive directors.
The revised promotion criteria are notified herewith which shall be effective from first July, 1991.
4.9.2 Performance appraisal
Yearly performance reviews are critical. Organizations are hard pressed to find good reasons why
they cant dedicate an hour long meeting once a year to ensure the mutual needs of the employee and
organization are being met. Performance review help supervisors feel more honest in their relation
ship with their subordinates and feel better about themselves in their supervisor roles. Subordinates
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are assured clear understanding of what expected from them, their own personal strengths and areas
for development and a solid sense of their relationship with their supervisor. Avoiding performance
issues ultimately decrease morale, decrease credibility of management, decreases the organizations
overall effectiveness and wastes more of managements time to do what isnt being done properly.
The scoring system is also having a major impact on effective performance appraisals. The accuracy
and reliability of any scoring system increases with full descriptions/definitions, and better still with
examples for each score band. This gives everyone the same objective scientific reference points, and
reduces subjectivity.
4.9.3 Performance appraisal process
The performance appraisal process typically consists of four related steps as follows:
Establish a common understanding between the manager (evaluator) and employee (evaluate)
regarding work expectations; mainly, the work to be accomplished and how the work is to be
evaluated.
Ongoing assessment of performance and the progress against work expectation. Provisions
should be made for the regular feedback of information to clarify and modify the goals and
expectations, to correct un acceptable performance before it was too late, and to reward
superior performance with proper praise and reorganization.
The formal performance and development appraisal discussion, based on the completed
appraisal form and ending in the construction of a development plan.
All the departments at OGDC are enforce to follow following performance rating
Outstanding
05%
Very Good
20%
Normal
50%
Marginal
20%
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Poor
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05%
OGDCL
Performance Evaluation (ACRs)
No. of ACRs
Officers
1600
Staff Employees
4438
Issuance of ACR forms to all departments according to time schedule. (15th December of
each year)
Activities (ACR)
Career Planning Cell issues comprehensive instructions from time to time to educate and
clear ambiguities
On education of ACR writing lectures are arranged by CPC in Head Office and Field
Locations
ACR forms have been serialized for officers to minimize duplication/ misuse
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Difficulties (ACR)
ACRs are not filled/returned according to the notified schedule. Lot of time and efforts are
involved in correspondence
Clearly written out instructions notwithstanding, over-writing, use of fluid, mere marking
instead of initials are the most commonly observed problems
15%
2. ACRs
25%
3. Seniority
05%
15%
40%
-------------------------
Total
100%
-------------------------
These five basic components are analyzed before promotion criteria. When any employee qualifies
these components then he will be promoted with the approval of the chairman. For every employee it
is necessary to get minimum 60% marks in above components.
Besides this, the promotion also observes that where any position is vacant or not whether the
employee who is promoted, meet the requisition of qualification for that particular job. Where he is
performing job for last five years where his record in past is clear. So, after these observations they
take action for promotion. Deputy Chief Personnel officer is the incharge of the section.
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PROMOTIONS
OFFICERS
Promotion Criteria for officers was adopted in 1994. Its main components are:
ACRs
60%
Qualification
15%
Technical Publications
05%
Relevant Experience
20%
PROMOTIONS
STAFF EMPLOYEES
The promotion cases of Staff are evaluated as per Promotion Criteria of 1991
Its highlights are:
ACRs
25%
Qualification
15%
Seniority
05%
Experience
15%
Evaluations
40%
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Seniority
Prescribed Qualification
Disciplinary Profile
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Promotions Average Year-wise
Officers
Year
Average
2003
2004
2005
2006
Average
2003
2004
2005
2006
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Year
Average
2003
2004
2005
2006
Officers
Years
Staff
(EG-VI & above)
(Upto EG-V)
2002
58
247
737
2003
191
624
2004
48
44
300
2005
35
187
96
2006
22
365
Difficulties (Promotions)
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CPC invites recommendations to reach end February and end August each year. They are
seldom received according to schedule. Consequently, CPC has great difficulty in meeting the
promotion dates of Ist July and Ist December each year
Cases are received with inadequate information causing wastage of time and un-necessary
correspondence
Career Planning begins from the Department of the individual. H.O.D has obligation to pay
special attention to the Career development of those in his Department. Recommendations
received in CPC very rarely have that aspect properly dealt
Suggestions
Computerization of record is of great essence for speedy disposal and accuracy of record
CPC is keen for digitalizing ACRs and related record. Consultancy services of a reputed
company will greatly help in this direction
Training of staff and officers of CPC in the field of computerization is essential and primary
step
On line information system may be developed among Personnel, CPC, Administration and
other related departments. This will speed up information and provide updated and accurate
data
Promotion criteria should incorporate changes reflecting ongoing trends. CPC may be
involved in appraising the management on the current issues and difficulties in practical
application. (Proposals for improvement in Promotion Criteria have been recently submitted)
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Executive Group
2006
EG-VIII to EG-IX
EG-VII to EG-VIII
EG-VI to EG-VII
EG-V to EG-VI
EG-IV to EG-V
EG-III to EG-IV
EG-II to EG-III
11
EG-I to EG-II
Total
22
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Pay Scales
2006
Staff to EG-II
18
Staff to EG-I
23
PS-16
PS-15
PS-14
27
PS-13
PS-12
250
PS-11
PS-10
PS-09
41
PS-08
PS-07
PS-06
PS-05
PS-04
PS-03
PS-02
Total
365
Pay Scales
2003
2004
2005
2006
Total
Staff to EG-II
35
40
Staff to EG-I
36
61
12
24
143
PS-16
16
10
43
19
88
PS-15
19
16
44
PS-14
44
55
28
130
PS-13
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PS-12
26
83
25
265
399
PS-11
PS-10
19
34
PS-09
108
54
43
211
PS-08
21
62
89
PS-07
45
10
55
PS-06
220
66
52
18
356
PS-05
67
36
117
PS-04
17
191
209
PS-03
142
16
25
183
PS-02
Total
737
624
318
96
1775
CHAPTER 5
SWOT Analysis table for OGDCL
STRENGTHS
WEAKNESSES
Political Influences
Vast Experience
Limited Customer
Limited Marketing
Opportunity
Pakistan
Major oil & Gas Company of
Political Appointments
Pakistan
High market cap and revenue
OPPRTUNITIES
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THREATS
OGDCL
Expansion towards a
Latest Technology
multinational Company
Expansion towards
unproductive wells
World Market
SWOT ANALYSIS
SWOT Analysis is conducted to identify the organizational strengths (S), organizational weaknesses
(W), environmental opportunities (O), and environmental threats (T). Each analysis helps to know
that how these elements influence organizational performance.
An organizational strength is an internal capability that can be exploited to achieve goals, where as
an organizational weakness is an internal characteristics that may undermine performance. An
environmental opportunity is a situation that offers potential for helping the organization achieves its
goals. In contrast, an environmental threat is an external element that can develop into a non-crisis or
crisis problem, and potentially prevent organization from achieving its goals.
OGDCLs SWOT Analysis is given below;
5.1
STRENGTHS
Being Government owned organization; OGDCL is given preference when Government allows
any new concession.
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OGDCL has a number of packages in order to hire best profile of professionals and as well as to
motivate them in order to extract best from them.
Enough physical facilities are provided to its employees in the H.O in order to facilitate the
performance of its employees.
5.2
There is no formulized criterion for reserve to production ratio, which can compare their
performance with the past.
No planning is being done before initiating any project e.g. Implementation of ORACLE
financial.
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There is no huge HR Department, and Personnel Department only deals with recruitment and
termination cases and a little bit other.
Attitude of the employees towards work is not prudent because of job security factor. They have
fair idea that no one can expel them from this organization.
5.3
OPPORTUNITIES
There is no tough competition faced by OGDCL from any company having the same large setup
with such huge finances.
5.4
THREATS
Being a Government owned organization; Government has maximum interference while deciding
its investment policies.
Global trends are rapidly changing which might affect its performance.
Iraq and America situation can also have negative impact on Oil and Gas Industry.
Any decrease in future oil prices may prove to be a great threat for OGDCL.
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CHAPTER 6
PROBLEMS
Unawareness of Employees from Latest Technological Changes.
Technical and non technical employees working at field / wells sites in far away areas of the country
do not have any access to the latest modern and technological changes, literature etc.
2.
OGDC is only organization in the field of exploration and development of oil and gas resources of
the country, but unfortunately does not use scientific techniques in career planning of employees.
3.
OGDC have a large number of vehicles, mostly at sites but they are misused by their location in
charge. While officers of Equ. Grades 19 are not entitled to have official transport. OGDC also
provides pick and drop facilities to stop and officers to some extent with few Buses / Cosdters but it
is not sufficiently only few percent get benefit from this.
4.
Due to less accountability and more delegate powers, location incharge use their powers towards
petty cash purchases from local market. OGDC have a centralized procurement department but
stocks are accumulated in the absence of the strict rules and policies regarding purchases and stock
position.
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5.
To recruit the employees both internal and external methods are used but the corporation gives
preference to the internal method. The main draw back of this method is that it blocks the way for
new generation which carry new ideas and knowledge. Further more the recruitment system is also
influenced by the nepotism of politicians.
6.
Training is used to develop the skills of the employees in this regard lot expenditure is made on
training but unfortunately training facilities is also awarded to the employees based on nepotism.
7.
Promotion Policy.
Promotion policy is the mixture of both merit and seniority, but in practice emphasis is given to ACR
and can say that where there is ACR there an id a favoritisms.
6.2 SUGGESTIONS
During my stay in OGDC I carefully observed the major weakness. For this weakness, I suggested
the following practicable remedies to improve the existing practices.
1. With the passage of time many modern technologies changes take place in oil and gas industry,
OGDC must take necessary action to acquire modern technologies so that they can compete at
international level and in this way they can play more effective role in Pakistans economy
2. OGDC have a plot at blue area Islamabad for office building, the construction work may be
started as soon as possible as OGDC have no shortage of funds, and the only mile stone in this
way is administrative approval.
3. They should to pay full attention to the intensive professional training of staff in related fields.
The department concerned can organize professional training at OGDC or with outside agencies
etc and latest literature newspapers and magazines etc of professional interest should be
provided at sites free of cost.
4. Al though the management in recent past takes some initiative in this area, a new department
career planning department is created and few posting were made in this department . But to
achieve excellent and positive results rapid operations are too much essential.
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5. Management should try to develop maximum and minimum store inventory levels and also
100% physical verification to be done at least once a year. The powers of location in charges
should be reviewed and minimized.
6. Management must take necessary action to control costs i.e. administrative and selling expenses
7. To offset recruitment bias favoritism should be completely discouraged. And try to eliminate
political interference in recruitment, because it will affect the efficiency and ultimately the
corporation will be unable to achieve its objective.
If appraiser make appraising based on actual performance it will decrease heart burning
problem and employees efficiency will be increased.
As the promotion policy of the corporation clearly shows merit + seniority, so it should be
fully implemented.
Beside this it is also desirable to suggest that in this modern area computerization of record
is very much essential .So to facilitate the management computer system in all the section
must be introduced.
6.3
Conclusion
The production of oil and gas is contributing a lot in reducing the countrys import bill. Power
generation by IPPs (Industrial Power Projects) in the country is a major source of energy.
OGDCLs Uch Gas field and Panjpir/ Nandpur Gas Fields are the two main fields, which have
now started supplying Gas to power companies. This not only meeting the requirement of the IPPS
but also contributing a lot towards meeting the demand of electricity in the country.
OGDCLs contribution to the national exchequer in the form of royalty; excise duty, debt
servicing, and taxes are a huge support as compared to the other state owned organizations.
OGDCL entered into new JV agreements in various exploration Blocks with the foreign oil
companies to boost up the efforts for increasing the Oil & gas demand of this country..
Oil and gas Training Institute (OGTI) is providing training facilities and meeting the
requirements of highly trained, motivated, and improved human resources. OGTI designs and
implements programme to develop and expand the technical and managerial skills of professional
to meet the fast changing challenges to the company. A total of about 150 courses in service
disciplines are conducted during every year.
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The quality of an organization is dependent on the quality of its work force. OGDCL has engaged top
professionals in Geology, Drilling, Engineering, and production who are working day & nights for
the search of Oil & gas. Besides this, the corporate sector is equipped with professionals having
qualification of CAs, MBAs, M.Coms, which support the technical wings. The time bound
necessity is that all these professionals be given a targets and their performance indicators be clealrly
defined. A good leadership and the motivation will surely boost-up the efforts and the collective
efforts will result in a huge reservoir of Oil or Gas INSHALLAH.
BIBILLOGRAPHY
1. Human Resource management ( 7th edition) by Descenso.
2.
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