Professional Documents
Culture Documents
Corporation
Recruitment and Selection Process
Shashank Dimri
1st Sem AGBS
Section-C
10/2/2009
Oil and Natural Gas Corporation 200
9
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.
1
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
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
questionnaires.
1st October Analysing the data and other facts acquired during interview.
2.2 Preunderstanding
2
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
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
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
“researchers seek to describe and explain the world as those in the world experience it.
2
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
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.
3
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
4.1GLOBAL RANKING
• 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).
4
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
2
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
• 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.
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.
1
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
The focus of management will be to monetize the assets as well as to assetise the
money.
1
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
2
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
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.
3
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
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.
2
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
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.
2
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
2
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
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.
2
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
• 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;
1
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
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.
7.6 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
2
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
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.
7.9 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
2
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
boarding campaigns in hopes to retain top talent that is new to the company, campaigns
may last anywhere from 1 week to 6 months.
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
3
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
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.
2
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
Fig 8.1
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
4
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
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.
3
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
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.
3
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
2
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
2
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
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 )
)
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
1
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
Marine Services
2
Oil and Natural Gas Corporation 200
9
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.
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.
Drilling Services
2
Oil and Natural Gas Corporation 200
9
AE(Drill.)
Physical
standard Q-1 2
requirements Yrs
as given Q-2 4
1
Oil and Natural Gas Corporation 200
9
GEO-SCIENCES SCHEDULE-I
1
Oil and Natural Gas Corporation 200
9
GEOPHYSICS ( SURFACE )
General Manager
E-7 3 years as
( Geophysics-
1. 20500- - Deputy G.M.
Surface )
26500 ( Geophysics )
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.
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
1
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
1
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
2
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
Q-1 2 Yrs
1
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
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 )
1
Oil and Natural Gas Corporation 200
9
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.
1
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
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-V
Senior Open 6 years as Fireman
20. -
Fireman Ended Grade I
5800
1
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
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
1
Oil and Natural Gas Corporation 200
9
GEOLOGY
E-7 3 years as
General Manager
1. 20500- - Deputy G.M.
( Geology )
26500 ( Geology )
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.
SCF criteria
Qual. No. of
1
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
SCF criteria
E-0
4 years as Senior
Assistant Economist 10750-
6. - Technical Assistant
& Statistician 16750
( E & S ).
1
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
( Economics &
Statistics ) 7000 with Statistics.
Date: 30/09/09.
• What kind of position do you have in your company? What tasks do you
perform?
• What is beneficial with your job? What are your benefits? (If there are any)
• 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?
Strengths:
Weaknesses:
Opportunities:
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.
1
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
3
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
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.
3
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
• 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
1
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
APPENDIX
Financial Highlights
1
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
Operational Highlights
1
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
1
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
Board of Directors
1
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
1
Amity Global Business School, Noida
Oil and Natural Gas Corporation 200
9
3
Amity Global Business School, Noida