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Oil and Natural Gas

Corporation
Recruitment and Selection Process
Shashank Dimri
1st Sem AGBS
Section-C
10/2/2009
Oil and Natural Gas Corporation 200
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10 EXECUTIVE SUMMARY
The project titled as ‘Recruitment and Selection Process’ has been undertaken
with an objective of analysing the Recruitment and Selection strategies of the company
of our choice. The Company that has been selected for this purpose is ‘Oil and Natural
Gas Corporation’ which is among the fortune 500 companies of this world. Under the current
rankings it stands at position of 152. It represents India’s energy needs and is the most valuable
public enterprise. Various graphs in this report represents ONGC’s increasing trend of turnover,
profitability etc. This company is segmented into various departments and has one of its key
assets at Bombay high. It has a subsidiary called ‘MRPL’ located at Mangalore in Karnataka.
ONGC Videsh is one of its very important subsidiary, undertakes all the overseas functions of
ONGC.
To gain knowledge about various recruitment and selection strategies of ONGC a deep
interview with Mr. O.P Choudhary (HR Manager) was conducted. The facts that came out
from the interview are discussed in detail in this report. An Interview draft is included in this
report under the appendix section.
Normally, ONGC conducts its recruitment program in three ways: Indirect, Direct, and
with the help of third party agencies. These methods have been discussed in detail in this
report.
Recruitment and selection process of ONGC is the most trustworthy as it has a very
strong Human Resource Department.

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2.0 RESEARCH METHODOLGY

2.1 Research Journey

When I started thinking for carrying out my research then the company whose
name came first to my mind was of Oil and Natural Gas Corporation. The main
reason for choosing this company was that this is amongst the fortune 500 companies
and is called ‘Navratna’. The aim of the research was to gather information about this
company. Researches basically are of two types: (1) Exploratory Research and (2)
Conclusive Research. To fulfill the above mentioned objective I have carried out an
exploratory research in the company. The table given below gives the details of my
research journey.
Research Type: Exploratory Research

DAY ACTIVITY

28th September Gathering Information about the company and preparation of

questionnaires.

29th September Acquiring appointment from the interviewee.

30th September Visiting the Company and conducting a deep interview.

1st October Analysing the data and other facts acquired during interview.

2nd October Reflecting the analysed data on the report.


Table 2.1: Research Journey

2.2 Preunderstanding

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It is important to have a preunderstanding when one would like to interpret and


understand the collected material. Preunderstanding means prior knowledge of the
subject, and one’s experiences from the field. A person’s experience can be extracted
from both working and personal life and from others through books, reports and
lectures.

2.3 Research Method


Firstly, when one decides to prepare the design of the research then one has to
consider that it would be a great idea if research is created in the way suitable to one’s
personality, skills and knowledge. Moreover, there are two methods, quantitative and
qualitative, where one is not better than the other; it all depends on how the researcher
would like to conduct study.

Quantitative method is recognized being scientific wherein researchers use


mathematical and statistical surveys to investigate the phenomenon. Here, the focus is
to explain cause and affect relationship and to be able to test whether hypothesis is
applicable in reality. The measurement, tests and questionnaires are very controlled and
the results lead to the generalization of the population. The researcher is seen as a
outsider, and keeps a distance and objective view of the research.

In contrast, qualitative method is pigeonholed by the fact that one wants to


understand people and how they experience their reality. Qualitative researchers
investigate different parts of the context to create a visible whole. In addition, it
involves fieldwork, description and discovering the meaning of the hypothesis, where
the researcher plays an important role in collecting data. The data can be retrieved from
interviews and observations, where generalization is made by comparing individuals.
Researcher is an active part and considered as an insider which is subjective in one’s
judgement.

The method of my research is qualitative research.

2.4 Data Collection


There mainly two procedures for collecting information i.e. theoretical and
empirical. Theoretical refers to the secondary data, which are collected or created by
others where the purpose of that data might differ from our work. On the other hand,
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empirical data is primary data, which the writers of thesis collect directly to investigate
the specific problem.
Theoretical data will be used to understand and interpret our research question,
it will help us in broadening the base from which conclusion can be drawn. This type of
information consists of books, historical studies, articles and online data, which need to
be reviewed to see that whether it is useful to us and from reliable sources. To find
suitable data I have referred ONGC’s resources and literature.
Empirical data is collected in favour of research, with questions and objectives.
It is important to decide which persons should be included in the study to see the
accurate picture of the reality. As I had scarcity of time, I could conduct only one
interview.

2.5 Research Quality


When the research is being conducted it is of utmost importance to make sure
that that information is reliable and trustworthy, the reader must be able to trust the
hypothesis being presented. When talking about validity and reliability in qualitative
research one has to take ethical aspect into consideration to make fair judgement. To
test the trustworthiness of the report there are three are three different categories, to
judge the quality one uses internal-external validity, reliability.
Internal Reliability is how our findings match the reality, and if we as authors
measure the things that are aimed to measured. Moreover, quality of research is an
ongoing process; it always changes, due to the fact that what we study is how other
people understand it.
External Validity is primarily reusing the findings in other situations, if is
possible to generalise the result of the study. To develop the results from qualitative
research in external way different strategies can be used. Starting with rich, thick
description, where researcher must provide much material so that the reader can decide
if their situation matches the research. Additionally, typically or modal category is to
make detailed description of the studied phenomenon so that it can be compared with
other categories. Finally, multisite designs the researcher uses as much information and
data collection is possible so that the reader can use it in other situations.
Another aspect that must be considered is reliability, where the findings from
research with same studied phenomenon, should reach the same conclusion,

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independent of the researcher. However, when it comes to qualitative studies, which we


are using in our thesis, the reliability is hard to define though human behavior is
investigated. Moreover, it can be hard to segregate and it could be explained

“researchers seek to describe and explain the world as those in the world experience it.

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3.0 INDUSTRY PROFILE


The petroleum industry includes the global process of exploration, extracting
and refining, transporting and marketing the petroleum product. The largest quantity
products of the industry are fuel oil and Gasoline. Petroleum is also the raw material for
many chemical products, including pharmaceuticals, fertilizers, solvents, pesticides and
plastics. The oil industry is mainly divided into three major components: Upstream,
Midstream and Downstream. Midstream operations are usually included in downstream
industry.
Petroleum is vital to many industries, and is of the importance to the
maintenance of industrialised civilization itself, thus is of great concern for many
countries. Oil accounts for the very large percentage of oil consumption worldwide,
ranging from a low 32% for Europe and Asia, up to a high of 53% for Middle East.

3.1 Challenges faced by Oil and Gas Industry

The oil and gas industry is totally a global industry. However, its underlying
importance in India’s growth cannot be ignored. Current business scenario has raised
many challenges for oil and gas industry and policy makers.
In order to acquire and sustain competitive advantage, companies need to
continuously innovate; un-learn; learn; restructure; and improve their core and support
processes. It is not just enough to manage current processes; but go beyond the existing
model and framework to question and reassess how value is created and delivered.
Functional area challenges must be unique for this unique and growing industry.

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4.0 COMPANY PROFILE

4.1GLOBAL RANKING

Fig 4.1 An Employee Working

• ONGC was ranked as the Numero Uno Oil & Gas Exploration &
Production (E&P) Company.
• ONGC ranked 20th among the Global publicly-listed Energy companies
as per ‘PFC Energy 50” (Jan 2008)
• ONGC is the only Company from India whose name appears in the
Fortune Magazine’s list of the World’s Most Admired Companies 2007.
• Occupied 152nd rank in “Forbes Global 2000” 2009 list (up 46 notches
than last year) of the elite companies across the world; based on sales,
profits, assets and market valuation during the last fiscal. In terms of
profits, ONGC maintains its top ranking from India.
• ONGC was ranked 335th position as per Fortune Global 500 - 2008 list;
up from 369th rank last year, based on revenues, profits, assets and
shareholder’s equity. ONGC maintains has maintained top rank in terms
of profits among seven companies from India in the list.
• the world, as per Platts 250 Global Energy Companies List in the year
2008 based on assets, revenues, profits and return on invested capital
(ROIC).

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4.2 REPRESENTS INDIA’S ENERGY NEEDS

ONGC has single-handedly scripted India’s hydrocarbon saga by:


• Producing 6.61 billion tonnes of In-place hydrocarbon reserves with
more than 300 discoveries of oil and gas; in fact, 6 out of the 7
producing basins have been discovered by ONGC: out of these In-place
hydrocarbons in domestic acreages, Ultimate Reserves are 2.36 Billion
Metric tonnes (BMT) of Oil + Oil Equivalent Gas (O+OEG).
• Simultaneously producing 788.273 Million Metric Tonnes (MMT) of
crude and 463 Billion Cubic Meters (BCM) of Natural Gas, from 111
fields.
• ONGC has bagged 85 of the 162 Blocks (more than 50%) awarded in
the 6 rounds of bidding, under the New Exploration Licensing Policy
(NELP) of the Indian Government.
• ONGC’s fully-owned subsidiary namely ONGC Videsh Ltd. (OVL) is
the biggest Indian multinational company, with 44 Oil & Gas projects (7
of them producing) in 18 countries.

4.3 INDIA’S MOST VALUABLE PUBLIC ENTERPRISE

• It was ranked as the most respected Public Enterprise in India in 2007


“Business World Survey, with 19th position in the league of the most-
respected Indian Corporate(s).

• It was rated ‘Excellent’ in MOU Performance Rating for 2006-07 by the


Department of Public Enterprises, Ministry of Heavy Industries in
Public Enterprises, GOI.

• Oil Industry Safety Directorate (OISD) has selected ONGC’s


Ahmedabad Asset and MRPL for the year 2006-07 (as number one in
Group-4 category (Oil & Gas Assets) and Second in Group-1 Refinery
category respectively).

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• It has topped the visibility metrics in Indian Oil and Gas Sector and the
only PSU in the top 10 list of Indian Corporate newsmakers.

• Golden Peacock was awarded to ONGC for the 3rd consecutive year.

• Won the coveted winner’s trophy of the maiden “Earth Care Award for
excellence in climate change mitigation and adoption” under the
category of GHG mitigation in the small/medium and large enterprises.
• Awarded with “Infraline Energy Excellence Award” for its services to
the Nation in Oil & Gas Exploration and Production category.
• Mr. R.S Sharma (CMD) was bestowed with “Amity Award for
Excellence” in Cost Management.

4.5 PIONEERING EFFORTS


• Holds largest share of hydrocarbon acreages in India.
• It contributes to over 80 per cent of Indian’s oil and gas production.
• It contributes about one tenth of Indian refining capacity.
• It created a record of sorts by turning Mangalore Refinery and
Petrochemicals Limited around from being a stretcher case for referral to
BIFR to the BSE Top 30, within a year.
• It has interests in LNG and product transportation business.

4.6 COMPETITIVE STRENGTH

Fig 4.2
• All crudes are sweet and most (76%) are light, with sulphur percentage
ranging from 0.02-0.10, API gravity range 26°-46° and hence attract a
premium in the market.

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• Strong intellectual property base, information, knowledge, skills and


experience
• Maximum number of Exploration Licenses, including competitive NELP
rounds. ONGC has bagged 85 of the 162 Blocks (more than 50%) awarded
in the 6 rounds of bidding, under the New Exploration Licensing Policy
(NELP) of the Indian Government.
• It owns and operates more than 15000 kilometers of pipelines in India,
including nearly 3800 kilometers of sub-sea pipelines. No other company in
India operated even 50 per cent of this route length.

4.7 STRATEGIC VISION


• For focusing on core business of E&P, ONGC has following Objectives:
• To double Reserves.
• To improve average recovery from 28% to 40%.

The focus of management will be to monetize the assets as well as to assetise the
money.

4.8 FINANCIALS (2008-2009)


• ONGC posted a net profit of 161.26 million profits despite volatile market
and crude prices.
• Net worth 781 million.
• Practically zero debt corporate.

Contributed over 280 million to exchequer.

4.9 THE ROAD AHEAD


• New discoveries and fast track development.
• Equity oil from abroad.
• Downstream value additions and forward integration.
• Leveraging state of art technologies and global best practices.
• New sources of energy.
• Production from small and marginal field.

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4.10 ONGC Videsh: Accreting hydrocarbon resources abroad

ONGC Videsh Limited (OVL) is a wholly-owned subsidiary of Oil and Natural


Gas Corporation Limited (ONGC) - the flagship national oil company of India. The

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primary business of OVL is to prospect for oil and gas acreages abroad including
acquisition of oil and gas fields, exploration, development, production, transportation
and export of oil and gas. Incorporated as Hydrocarbons India Private Limited on
March 5, 1965 and rechristened as ONGC Videsh Limited on June 15, 1989, OVL,
over a period of time has grown to become the second-largest E&P company in India
both in terms of oil production and oil and gas reserve holdings.
Starting with the exploration and development of the Rostam and Raksh oil
fields in Iran and undertaking a service contract in Iraq, a major breakthrough was
achieved by OVL in 1992 in Vietnam with the discovery of two major free gas fields,
namely LanTay and LanDo, in partnership with British Petroleum and Petro-Vietnam.
The success carried on thereafter. In 2001, OVL acquired 20% stake in Sakhalin-1
project in the far east of Russia with an investment of over USD 2.1 billion – the single
largest Foreign Direct Investment made by an Indian company at that time.
The company, adopting a balanced portfolio approach, maintains a combination
of producing, discovered and exploration assets, working as operator in 18 projects and
joint operator in 2 projects. OVL produces hydrocarbons from its 7 assets, namely,
Russia (Sakhalin-I), Syria (Al-Furat Project), Vietnam (Block 06.1), Colombia
(Mansarover Energy Project), Sudan (Greater Nile Oil Project and Block 5A) and
Venezuela (San Cristobal Project). Balance 5 projects are in development phase and 25
are in the exploration phase.
OVL’s international oil and gas operations produced 8.802 MMT of O+OEG in
2007-08 as against 0.252 MMT of O+OEG in 2002-03. Today, OVL’s cumulative
investment overseas has crossed USD 7.5 billion.
While OVL participates and operates in varied environments – both political
and geographical, it is committed to the highest standards of Occupational Health,
Safety and Environment protection and compliance to all applicable local laws and
regulations. Understanding well its Corporate Social Responsibility, OVL makes
valuable contributions to the communities and economies in which it operates by
investing in education and training, improving employment opportunities for nationals,
and providing medical, sports and/or agricultural facilities, besides payment of tax
revenues to local governments.

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Some of the leading alliance partners of OVL are BP, CNPC, Ecopetrol, ENI,
Exxon, Norsk Hydro, PDVSA, Petrobras, Petronas, Petrovietnam, Repsol, Rosneft,
Shell, Sinopec, Total and TPOC.

Fig 4.3 Venezuela Asset

4.11 Mangalore Refinery and Petrochemicals Limited

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MRPL, located in a beautiful hilly terrain north of Mangalore city, is a State of


Art Grassroots Refinery at Mangalore and is a subsidiary of ONGC. The Refinery has
got a versatile design with high flexibility to process Crudes of various API and with
high degree of Automation.

MRPL has a design capacity to process 9.69 million metric tonnes per annum
and is the only Refinery in India to have 2 Hydrocrackers producing Premium Diesel
(High Cetane). It is also the only Refinery in India to have 2 CCRs producing Unleaded
Petrol of High Octane.

MRPL has high standards in refining and environment protection matched by its
commitments to society. MRPL has also developed a Green Belt around the entire
Refinery with plant species specially selected to blend with the local flora.

Fig 4.4 Location of MRPL

5.0 SEGMENTATION OF THE ORGANISATION


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Fig 5.1 Segmentation of the Company

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6.0 Financial Highlights of the Organisation

Fig 6.1 Net Worth ( Rs Million)

Fig 6.2 Net profit (Rs million)

Fig 6.3 Turnovers (Rs Million)

Fig 6.4 Contribution of Exchequer

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7.0 THEORY
Recruitment refers to the process of screening, and selecting qualified people
for a job at an organization or firm, or for a vacancy in a volunteer-based some
components of the recruitment process, mid- and large-size organizations and
companies often retain professional recruiters or outsource some of the process to
recruitment agencies. External recruitment is the process of attracting and selecting
employees from outside the organization.
The recruitment industry has four main types of agencies: employment
agencies, recruitment websites and job search engines, "headhunters" for executive and
professional recruitment, and in-house recruitment. The stages in recruitment include
sourcing candidates by advertising or other methods, and screening and selecting
potential candidates using tests or interviews.

7.1 Agency types


The recruitment industry has four main types of agencies. Their recruiters aim
to channel candidates into the hiring organizations application process. As a general
rule, the agencies are paid by the companies, not the candidates.

7.2 Traditional Agency


Also known as employment agencies, recruitment agencies have historically
had a physical location. A candidate visits a local branch for a short interview and an
assessment before being taken onto the agency’s books. Recruitment consultants then
work to match their pool of candidates to their clients' open positions. Suitable
candidates are short-listed and put forward for an interview with potential employers on
a temporary ("temp") or permanent ("perm") basis.

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Compensation to agencies take several forms, the most popular:

• A contingency fee paid by the company when a recommended candidate accepts a job
with the client company (typically 20%-30% based and calculated of the candidates
first-year base salary – though fees as low as 12.5% can be found online), which
usually has some form of guarantee (30–90 days standard), should the candidate fail to
perform and is terminated within a set period of time (refundable fully or prorated)
• An advance payment that serves as a retainer, also paid by the company, non-
refundable paid in full depending on outcome and success (eg. 30% up front, 30% in 90
days and the remainder once a search is completed). This form of compensation is
generally reserved for high level executive search/headhunters
• Hourly Compensation for temporary workers and projects. A pre-negotiated hourly fee,
in which the agency is paid and pays the applicant as a consultant for services as a third
party. Many contracts allow a consultant to transition to a full-time status upon
completion of a certain number of hours with or without a conversion fee.

7.3 Headhunters
A "headhunter" is industry term for a third-party recruiter who seeks out
candidates, often when normal recruitment efforts have failed. Headhunters are
generally considered more aggressive than in-house recruiters or may have preexisting
industry experience and contacts. They may use advanced sales techniques, such as
initially posing as clients to gather employee contacts, as well as visiting candidate
offices. They may also purchase expensive lists of names and job titles, but more often
will generate their own lists. They may prepare a candidate for the interview, help
negotiate the salary, and conduct closure to the search. They are frequently members in
good standing of industry trade groups and associations. Headhunters will often attend
trade shows and other meetings nationally or even internationally that may be attended
by potential candidates and hiring managers.
Headhunters are typically small operations that make high margins on candidate
placements (sometimes more than 30% of the candidate’s annual compensation). Due
to their higher costs, headhunters are usually employed to fill senior management and
executive level roles. Headhunters are also used to recruit very specialized individuals;

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for example, in some fields, such as emerging scientific research areas, there may only
be a handful of top-level professionals who are active in the field. In this case, since
there are so few qualified candidates, it makes more sense to directly recruit them one-
by-one, rather than advertise internationally for candidates. While in-house recruiters
tend to attract candidates for specific jobs, headhunters will both attract candidates and
actively seek them out as well. To do so, they may network, cultivate relationships with
various companies, maintain large databases, purchase company directories or
candidate lists, and cold call prospective recruits.

7.4 In-House Recruitment


Larger employers tend to undertake their own in-house recruitment, using their
human resources department, front-line hiring managers and recruitment personnel who
handle targeted functions and populations. In addition to coordinating with the agencies
mentioned above, in-house recruiters may advertise job vacancies on their own
websites, coordinate internal employee referrals, work with external associations, trade
groups and/or focus on campus graduate recruitment. While job postings are common,
networking is by far the most significant approach when reaching out to fill positions.
Alternatively a large employer may choose to outsource all or some of their recruitment
process (recruitment process outsourcing).

7.5 Passive Candidate Research Firms / Sourcing Firms


These firms provide competitive passive candidate intelligence to support
company's recruiting efforts. Normally they will generate varying degrees of candidate
information from those people currently engaged in the position a company is looking
to fill. These firms usually charge a per hour fee or by candidate lead. Many times this
uncovers names that cannot be found with other methods and will allow internal
recruiters the ability to focus their efforts solely on recruiting.

7.6 Process
Job Analysis
The proper start to a recruitment effort is to perform a job analysis, to document
the actual or intended requirement of the job to be performed. This information is

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captured in a job description and provides the recruitment effort with the boundaries
and objectives of the search. Oftentimes a company will have job descriptions that
represent a historical collection of tasks performed in the past. These job descriptions
need to be reviewed or updated prior to a recruitment effort to reflect present day
requirements. Starting recruitment with an accurate job analysis and job description
insures the recruitment effort starts off on a proper track for success.
7.7 Sourcing
Sourcing involves 1) advertising, a common part of the recruiting process, often
encompassing multiple media, such as the Internet, general newspapers, job ad
newspapers, professional publications, window advertisements, job centers, and
campus graduate recruitment programs; and 2) recruiting research, which is the
proactive identification of relevant talent who may not respond to job postings and
other recruitment advertising methods done . This initial research for so-called passive
prospects, also called name-generation, results in a list of prospects who can then be
contacted to solicit interest, obtain a resume/CV, and be screened.

7.8 Screening and selection


Suitability for a job is typically assessed by looking for skills, e.g.
communication, typing, and computer skills. Qualifications may be shown through
résumés, job applications, interviews, educational or professional experience, the
testimony of references, or in-house testing, such as for software knowledge, typing
skills, numeracy, and literacy, through psychological tests or employment testing. In
some countries, employers are legally mandated to provide equal opportunity in hiring.
Business management software is used by many recruitment agencies to automate the
testing process. Many recruiters and agencies are using an Applicant tracking system to
perform many of the filtering tasks, along with software tools for psychometric testing.

7.9 On boarding
"On boarding" is a term which describes the introduction or "induction"
process. A well-planned introduction helps new employees become fully operational
quickly and is often integrated with a new company and environment. On boarding is
included in the recruitment process for retention purposes. Many companies have on

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boarding campaigns in hopes to retain top talent that is new to the company, campaigns
may last anywhere from 1 week to 6 months.

7.10 Internet Recruitment / Websites

Fig 7.1 A Recruitment Center

Such sites have two main features: job boards and a résumé/curriculum vitae
(CV) database. Job boards allow member companies to post job vacancies.
Alternatively, candidates can upload a résumé to be included in searches by member
companies. Fees are charged for job postings and access to search resumes. Since the
late 1990s, the recruitment website has evolved to encompass end-to-end recruitment.
Websites capture candidate details and then pool them in client accessed candidate
management interfaces (also online). Key players in this sector provide e-recruitment
software and services to organizations of all sizes and within numerous industry
sectors, who want to e-enable entirely or partly their recruitment process in order to
improve business performance. The online software provided by those who specialize
in online recruitment helps organizations attract, test, recruit, employ and retain quality

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staff with a minimal amount of administration. Online recruitment websites can be very
helpful to find candidates that are very actively looking for work and post their resumes
online, but they will not attract the "passive" candidates who might respond favorably
to an opportunity that is presented to them through other means. Also, some candidates
who are actively looking to change jobs are hesitant to put their resumes on the job
boards, for fear that their current companies, co-workers, customers or others might see
their resumes.
7.11 Job search engines
The emergence of meta-search engines, allow job-seekers to search across
multiple websites. Some of these new search engines index and list the advertisements
of traditional job boards. These sites tend to aim for providing a "one-stop shop" for
job-seekers. However, there are many other job search engines which index pages
solely from employers' websites, choosing to bypass traditional job boards entirely.
These vertical search engines allow job-seekers to find new positions that may not be
advertised on traditional job boards, and online recruitment websites.

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8.0 The Selection Process


decision
Screening Selection
interviews
Selection
Application
Reception interview
Reference
Medical Hiring
examination
test
blank check

Fig 8.1

8.1 Application Review


Applications are reviewed to identify applicants meeting the minimum
qualifications listed in the job announcement. Applicants who do not meet the
minimum qualifications are notified by mail. Applicants who do meet the minimum
qualifications proceed to the examination process.

8.2 Examination
When filling a vacant position, the State of Colorado requires the use of an
examination process to identify the top three candidates. If three or fewer candidates

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meet the minimum qualifications of the position vacancy, the minimum qualifications
are the exam and all of the applicants are referred to the supervisor for interview.
However, if more than three applicants meet the minimum qualifications, an
examination must be used to determine the top three candidates. The number and types
of exams chosen for this process will depend on the job class of the position vacancy
and the total number of qualified applicants on the initial list. The top three candidates
identified via this examination process will be referred to the supervisor of the position
vacancy for interview.

8.3 Supervisor Review and Consideration


The supervisor of a position vacancy makes the hiring decision. Typically,
supervisors interview each of the candidates on the referral list. However, a supervisor
is not required to interview each of the candidates before making a hiring decision. A
review of each candidate’s resume and an interview with the candidate who is deemed
the best fit for the position is sometimes sufficient to make a hiring decision.

8.4 Job Offer


After careful consideration of each candidate, the supervisor makes the final
decision. Depending on type of work performed in the position, a job offer may be
contingent on the results of a drug test, physical examination and/or criminal
background check.

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9.0 Recruitment and selection procedure of ONGC

Fig 9.1 Recruitment Methods

Oil and Natural Gas Corporation carries out its recruitment process in the
process as shown in the block diagram as shown in the figure above. The methods
involved are:
(1) Internal Recruitment.
(2) Direct Recruitment.
(3) Indirect Recruitment.
(4) Third Party.

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9.1 Internal Recruitment


Internal Recruitment involves selecting the deserving candidates to various
posts by promotions and transfer job posting. Internal Recruitment is also done on the
basis of employee referrals.

9.1.1 Direct Recruitment


Direct Recruitment involves conducting the campus recruitment. HR employees
Of ONGC are responsible for conducting the recruitment process at the campuses of
many Colleges and undertake the selection procedure that involves various tests that are
discussed as follows:
(a) Aptitude Test;
(b) Group Discussion;
(c) Personal or Technical Interview.

9.1.1 Indirect Recruitment


Under the indirect recruitment, company informs about the vacancies through
various advertisements on newspaper, internet etc. The aspirants need to fill the online
application form which is available on ONGC’s website i.e. ongcindia.com. After
filling the application form the aspirants are issued admit cards as they have to go
through series of tests which were discussed above. After the completion of the all the
above mentioned steps the final decision on hiring the candidates is taken. Now let us
have a look at the eligibility for various posts in the company.

9.1.2 Third Party Recruitment


Under third party recruitment, ONGC contact the following:
• Private Employment search firms.
• Employment Exchange.
• Gate Hiring and Contractors.
• Unsolicited Applicants/ Walk-ins.

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10.0 Eligibility for various posts in Geo-Sciences


Computer Programming Report
GEO-SCIENCES SCHEDULE-I

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2.2 COMPUTER PROGRAMMING

General 3 years as
E-7
Manager
1. 20500- - Deputy G.M.
(
26500 ( Programming )
Programming )

Deputy
General E-6 3 years as
2. Manager - Chief Manager
19500-
( Programming 25600 ( Programming )
)

Chief Manager E-5


3 years as Manager
3. ( Programming 18500- -
( Programming )
) 23900

1st class graduate in


Computer
Engineering or 1st
class post graduate
in Computer
Applications
( MCA )/ Computer
Science or ‘B’ level 3 years for Merit or
Manager E-4 diploma as defined 4 years under
4. by Department of Quantification as
( Programming 17500-
Electronics, GOI . Deputy Manager
) 22300
10 years experience
( Programming ).
for departmental
candidates and 12
years for others in
Class-I or equivalent
position of which at
least 3 years should
be in the next
lower scale.

Deputy 4 years for Merit


E-3 and 5 years under
Manager
5. 16000- - Quantification as
( Programming Senior Programming
20800
) Officer.

Senior E-2 4 years under


6. Programming 13750- - Quantification as
Officer. 18700 Programming Officer.

SCF criteria
1st class graduate
degree in Computer
Engineering or 1st Qual. No. of
class post graduate
Years of
E-1 in Computer
Programming Applications Experience as
7. 12000-
Officer Assistant Programming
( MCA )/ Computer
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Table 10.1 Eligibility Criteria

Eligibility for Engineering Posts

Marine Services

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Master Marine E-6 3 years as Senior


1. (Foreign Going 19500- Chief Officer
) 25600 (Foreign Going )

Senior Chief E-5


Officer 3 years as Port
2. 18500-
(Foreign Going Captain.
) 23900

Ministry of
Transport
Foreign Going
Master’s
Certificate with
5 years
experience as
Chief Officer on 3 years for merit / 4
E-4 a Foreign Going years for
3. Port Captain 17500- Vessel. Should Quantification as
22300 be conversant Chief Officer
with Customs, (Foreign Going ).
Ports, MMD
Rule and
Regulations or
equivalent
qualifications
and experience
in Indian Navy.

4 years for merit / 5


Chief Officer E-3 years for
4. (Foreign Going 16000- Quantification as
) 20,800 Second Officer
(Foreign Going ).

E-2 4 years for


Second Officer
Quantification as
5. (Foreign Going 13750- Third Officer
) 18700 (Foreign Going ).

Ministry of
Transport
Certificate of
Second Mate
E-1 with 1 year
Third Officer
experience on a
6. (Foreign Going 12000- Foreign Going
) 17500 Vessel or
equivalent
qualifications
and experience
in Indian Navy.

E-5 3 years as Senior


Chief Engineer
7. 18500- Second Engineer
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Table 10.2 Eligibility Criteria

Drilling Services

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1. General E-7 - 3 years as


Manager 20500- Deputy G.M.
( Drilling ) 26500 ( Drilling )

2. Deputy E-6 - 3 years as C.E.


General ( Drilling )
19500-
Manager( Dri 25600
lling )

3. Chief E-5 - 3 years as


Engineer 18500- S.E.( Drilling )/
( Drilling ) 23900 ( Cementing )

4. Suptdg. E-4 1st class 3 years for Merit


Engineer graduate in or 4 years under
17500-
Mechanical/ Quantification as
( Drilling ) 22300
Petroleum Deputy S.E.
Engineering. ( Drilling )
10 years
experience
for
departmental
candidates
and 12 years
for others in
Class-I or
equivalent
position of
which at
least 3 years
should be in
the next
lower scale.

5. Deputy E-3 - 4 years for Merit


Suptdg. and 5 years
16000-
Engineer under
20800
Quantification as
( Drilling )
E.E. ( Drilling )

6. Executive E-2 - 4 years under


Engineer Quantification as
13750-
A.E.E. ( Drilling )
( Drilling ) 18700

7. Assistant E-1 1st class SCF criteria


Executive graduate
12000- Qual. No. of
Engineer degree in
17500 Years of
Mechanical/
( Drilling )
Petroleum
Engineering. Experience as

AE(Drill.)
Physical
standard Q-1 2
requirements Yrs
as given Q-2 4
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Table 10.3 Eligibility Criteria

Eligibility Criteria for Other posts

GEO-SCIENCES SCHEDULE-I

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GEOPHYSICS ( SURFACE )

General Manager
E-7 3 years as
( Geophysics-
1. 20500- - Deputy G.M.
Surface )
26500 ( Geophysics )

Deputy General 3 years as


E-6
Manager
2. 19500- - Chief Geophysicist
( Geophysics -
25600 ( Surface )
Surface)

Chief E-5 3 years as Suptdg.


3. Geophysicist - Geophysicist
18500-
( Surface ) 23900 ( Surface )

1st class
postgraduate in
Geophysics/ Physics
with Electronics. 10 3 years for Merit or 4
years experience for years under Quantification
departmental as Deputy Suptdg.
Suptdg. E-4
candidates and 12 Geophysicist
4. Geophysicist 17500- years for others in ( Surface ).
( Surface ) 22300 Class-I or
equivalent position
of which at least 3
years should be in
the next lower
scale.

4 years for Merit and 5


Deputy Suptdg. E-3
years under Quantification
5. Geophysicist -
16000- as Senior Geophysicist
( Surface ) 20800
( Surface ).

E-2 4 years under


Senior Geophysicist Quantification as
6. 13750- -
( Surface ) Geophysicist
18700 ( Surface ).

SCF criteria

Qual. No. of
1st class postgraduate
E-1 degree in Years of
Geophysicist
7. 12000- Geophysics or Experience as
( Surface ) Physics, with
17500 Assistant Geophysicist (S)
Electronics.

Q-1 2 Yrs

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Table 10.4 Eligibility Criteria

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FINANCE & ACCOUNTS

1. General Manager E-7 - 3 years as


( Finance & 20500- Deputy G.M.
Accounts ) 26500 (F&A)

2. Deputy General E-6 - 3 Years as


Manager 19500- Chief Manager
( Finance & 25600 (F&A)
Accounts )

3. Chief Manager E-5 - 3 years as Manager


( Finance & 18500- (F&A)
Accounts ) 23900

4. Manager E-4 Graduate degree 3 years for Merit and


with ICWA/CA or 4 years under
( Finance & 17500-
1st class MBA with Quantification as
Accounts ) 22300
specialization in Deputy Manager
Finance. 10 years ( F&A ).
experience for
departmental
candidates and 12
years for others in
Class-I or equivalent
position of which at
least 3 years should
be in the next lower
scale.

5. Deputy Manager E-3 - 4 years for Merit and


5 years under
( Finance & 16000-
Quantification as
Accounts ) 20800
Senior Finance &
Accounts Officer.

6. Senior Finance & E-2 - 4 years under


Accounts Officer Quantification as
13750-
Finance & Accounts
18700
Officer.

7. Finance & E-1 Graduate degree SCF criteria


Accounts Officer with ICWA/CA or
12000-
1st class MBA with
17500
specialization in Qual. No. of
Finance. Years of
Experience as
Assistant F&A Officer

Q-1 2 Yrs
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Table 10.5 Eligibility Criteria

OTHER SERVICES SCHEDULE-I

3.15 FIRE SERVICES

General 3 years as
E-7
Manager
1. 20500- - Deputy G.M.
( Fire
26500 ( Fire Services )
Services )

Deputy
General E-6 3 years as
2. Manager - Chief Manager
19500-
( Fire 25600 ( Fire Services )
Services )

Chief Manager E-5


3 years as Manager
3. ( Fire 18500- -
( Fire Services )
Services ) 23900

1st class graduate degree in


Fire Engineering. 10 3 years for Merit and
years experience for 4 years under
Manager E-4 departmental candidates Quantification as
4. ( Fire 17500- and 12 years for others in Deputy Manager
Services ) 22300 Class-I or equivalent
( Fire Services ).
position of which at least
3 years should be in the
next lower scale.

Deputy 4 years for Merit and


E-3
Manager 5 years under
5. 16000- -
( Fire Quantification as
20800 Senior Fire Officer.
Services )

E-2 4 years under


Senior Fire
6. 13750- - Quantification as Fire
Officer
18700 Officer.

7. Fire Officer E-1 1st class graduate degree SCF criteria


in Fire Engineering.
12000- Qual. No. of
17500 Years of
Experience as
Assistant Fire
Officer
Q-1 2 Yrs
Q-2 4 Yrs

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Q-3 6 Yrs
Below Q-3 7 Yrs

4 years as Senior
Fire Inspector or
6 years as Fire
E-0 Inspector Grade I
Assistant Fire
8. 10750- - for Q1/Q2
Officer
16750 qualification
holders and those
Q3 who opt and
qualify the test.

Graduate with relevant


experience/ One year
Diploma from National
Fire Services College or
equivalent

Open Physical standards :-


Senior Fire Ended
9. Minimum height – 171.6
Inspector
7000 cms. ( for tribes/ hillman –
166.4 cms. )
Chest- 83 cms. with
expansion of 5 cms.

Physical Efficiency Test


Apply.

5 years for Q3 &


S-IV
Chief higher qualification
Inspector Open holders and 6 years
10. -
Ended for below Q-3
( Fire) qualified as Deputy
15200
Chief Inspector (Fire)

5 years for Q3 &


S-III higher qualification
Deputy Chief holders and 6 years
Inspector Open for below Q-3
11. -
Ended qualified Sr. Assistant
( Fire)
13070 Chief Inspector
( Fire)

5 years for Q3 &


higher qualification
holders and 6 years
S-II for below Q-3
Sr. Assistant qualified as Assistant
Open
12. Chief Inspector - Chief Inspector
Ended
(Fire)
11400 ( Fire)

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S-I
Assistant Chief
Open 6 years as
13. Inspector -
Ended Fire Inspector Grade I
( Fire)
10220

A-IV
Fire Inspector Open 6 years as Fire
14. -
Grade I Ended Inspector Grade II
6500

A-III
Fire Inspector Open 6 years as Fire
15. -
Grade II Ended Supervisor
5800

A-II
Fire Open 3 years as Junior Fire
16. -
Supervisor Ended Supervisor
5100

Intermediate with 6
months' experience in fire
services with minimum
physical standards :-
A-I Height- 171.6 cms.
Junior Fire Open ( for tribes/ hillman- 166.4
17. cms. )
Supervisor Ended
4700 Chest- 83 cms with
expansion of 5 cms.
Driving License for Heavy
Vehicles essential.
Test Apply.

W-VII 6 years for qualified


Open and 7 years for under
18. Chief Fireman -
Ended qualified as Deputy
Chief Fireman
10220

W-VI 6 years for qualified


Deputy Chief Open and 7 years for under
19. -
Fireman Ended qualified as Senior
Fireman
6500

W-V
Senior Open 6 years as Fireman
20. -
Fireman Ended Grade I
5800

21. Fireman W-IV - 6 years as Fireman

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Open
Grade I Ended Grade II
5100

W-III
Fireman Open 6 years as Fireman
22. -
Grade II Ended Grade III
4700

W-II
Fireman Grade Open 3 years as Junior
23. -
III Ended Fireman
4500

Matriculate with Fireman’s


training of three months'
duration. physical
standards :-
W-I Height- 171.6 cms.
Open ( for tribes/ Hillman-
24. Junior Fireman
Ended 166.4 cms. )
4300 Chest- 83 cms with
expansion of 5 cms.
Driving License for Heavy
Vehicles essential. Physical
Efficiency Test Apply.

• Physical requirements: (Minimum):


Height 170 cms., Weight 60 Kgs., Chest 85 Cms. (Unexpanded) with a minimum
expansion of 6 Cms on full inspiration).
For candidates from Hill areas/ Tribes:
Height 167 cms., Weight 58 Kgs., Chest 81 Cms. (Unexpanded) with a minimum
expansion of 6 Cms on full inspiration).
Vision: 6X6 without glasses without any history of night/colour blindness etc.

Table 10.6 Eligibility Criteria

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GEOLOGY

E-7 3 years as
General Manager
1. 20500- - Deputy G.M.
( Geology )
26500 ( Geology )

Deputy General E-6


3 years as
2. Manager -
19500-
Chief Geologist
( Geology ) 25600

E-5
3 years as Suptdg.
3. Chief Geologist 18500- -
Geologist
23900

1st class
postgraduate in
Geology. 10 years
experience for 3 years for Merit
departmental or 4 years under
E-4 candidates and 12 Quantification as
years for others in Deputy Suptdg.
4. Suptdg. Geologist 17500-
Class-I or Geologist.
22300
equivalent position
of which at least 3
years should be in
the next lower scale.

4 years for Merit


E-3 and 5 years under
Deputy Suptdg. Quantification as
5. 16000- -
Geologist Senior Geologist.
20800

E-2 4 years under


6. Senior Geologist 13750- - Quantification as
18700 Geologist.

SCF criteria

Qual. No. of

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Table 10.7 Eligibility criteria

3.1 ECONOMICS & STATISTICS

Chief Manager E-5


3 years as Manager
1. ( Economics & 18500- -
(E&S)
Statistics ) 23900

3 years for Merit


or 4 years under
Quantification as
Manager E-4
Deputy Manager
2. ( Economics & 17500- -
(E&S)
Statistics ) 22300

4 years for Merit


Deputy Manager E-3 and 5 years under
3. ( Economics & 16000- - Quantification as
Statistics ) 20800 Senior Economist &
Statistician.

E-2 4 years under


Senior Economist & Quantification as
4. 13750- -
Statistician Economist &
18700 Statistician.

SCF criteria

Qual. No. of No induction


As per R&P Years of w.e.f. 1.1.97
E-1 Regs. ‘80 ‘Post as per O.M.
Economist & Experience as
5. 12000- Graduate degree No. 25(1)/97-
Statistician Assistant Economist
17500 in Economics RP-I dated
with Statistics’ and Statistician 14.3.97 under
clause 7.1
Q-1 2 Yrs
Q-2 4 Yrs

E-0
4 years as Senior
Assistant Economist 10750-
6. - Technical Assistant
& Statistician 16750
( E & S ).

7. Senior Technical Open Post graduate -


Assistant Ended in Economics

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( Economics &
Statistics ) 7000 with Statistics.

Table 10.8 Eligibility Criteria

11.0 EMPERICAL RESEARCH


For conducting an empirical research I have conducted an interview of Mr. O.P
Choudhary who works at ONGC as Chief Chemist in Sub-Surface Specialist pool. He
has been working for this organisation for past 25years and has a plenty of knowledge
and experience as he was posted in various departments at different places during his
stint until now in this company. The interview draft given below gives the idea of the
information gathered during this interview.

11.1 INTERVIEW DRAFT


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Company: Oil and Natural Gas Corporation Limited.


Interviewee: Shri O.P Choudhary (HR Manager).

Date: 30/09/09.

• Can you tell us shortly about your organization?

• What kind of position do you have in your company? What tasks do you
perform?

• What are your working hours?

• How long have you been working for…. (The ONGC)?

• How do you feel about your job?

• Can you influence your work/ company decisions?

• What is beneficial with your job? What are your benefits? (If there are any)

• What role do they play in your life?

• Can you tell us something about the recruitment and selection process followed
in your Company?

• What are steps undertaken by the company before conducting a recruitment and
selection process?

• What are the eligibility for various posts in the company?

12.0 SWOT ANALYSIS

Strengths:

• Oil and Natural Gas Corporation is perceived as a leader in oil production


industry.
• ONGC has a very efficient and professional management system.
• ONGC being an international company has sufficient resources and funds to
invest.
• ONGC has ISO-9001 and ISO- 14001 registration.
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Weaknesses:

• ONGC is finding difficulties in producing oil from ageing wells.

Opportunities:

• Efficient energy utilization of buried coal reserve (700-1700M), estimated


63BT- Equivalent to 15000BCM.
• Upgradation of the existing reservoirs.
Weaknesses:

• Security of personnel and property especially crude oil remains a major


concern in certain areas.
• In some exploration Campaigns Company uses high technology, high
investment at very high risk.
Conclusion:

After studying the details of ONGC LTD I reached at conclusion that ONGC
has achieved its entire goal with its idea and unique idea. ONGC has good manpower
and provides good facilities to its employees. The majority of company’s profitability
ratios shows upward trend. The performance of the company can be considered as
considered as satisfactory. As per my opinion ONGC has a wide scope to develop in
future.

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13.0 FINDINGS AND ANALYSIS

 Number of Employees satisfied with their job

Fig 13.1 No. of Employees Satisfied with their job

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 Number of Employees satisfied .

Fig 13.2 No. of Employees satisfied with the recruitment process

 Number of Employees reported Biasing and Politics

Fig 13.3 No. of Employees reporting biases and politics

RECOMMENDATIONS
• The Human Resource department of the Company needs to come up with
policies and strategies so as to inculcate faith and feeling of satisfaction.

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• The concerned department should take the requisite steps to eradicate biasing
and politics involved in the recruitment process.
• The Human Resource department needs work out a detailed plan or policy to
make internal job transfer system more efficient.

BIBILOGRAPHY

Books Referred

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• ONGC’s Annual Report 2008-09


• Some sample reports.
Online References:

• Intranet portal only for ONGC employees.


• www.ongcindia.com

APPENDIX

Financial and Operational Highlights

Financial Highlights

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Operational Highlights

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Board of Directors

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