A Study of Promotion Policy of Oil and Natural Gas Corporation Limited (ONGC)

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Apart from the efforts, the success of any project depends largely on the encouragement and
guidelines of many others. I take this opportunity to express my gratitude to the people who
have been instrumental in the successful completion of this project.
I would like to show my greatest appreciation to Dr. Himani Joshi, Assistant Professor & IIP
Coordinator of Stevens Business School, Gandhinagar. I feel obliged to be under her
guidance throughout the project. I feel motivated and encouraged every time. Without her
encouragement and guidance this project would not have materialized.
To begin with, I am extremely thankful to Mr. S. K. Sharma & Mr. I. D. Malik, Regional
Training Institute, ONGC, Vadodara for providing an opportunity of undergoing training in
ONGC.
My sincere thanks go to Ms. R S Narayani, Chief Manager (HR), ONGC, Vadodara who has
been all along enthusiastic and liberal in extending every support.
I am obliged to my project guide, Mr. K.K.Soni, Sr. HR Executive for his appropriate support
and valuable suggestion and feedback.
At the last but not the least I am deeply indebted to Mr. Raju Pawar and Ms. Ranjana Tandon
who has supported me in data collection and encourage me to do this project.
And, I would like offer my gratitude to the personnel associated with ONGC Library for
extending their support to me while completing the project report.
To me, making this report is like building a platform through my first actual Corporate
Interface which is thought-provoking challenging and hopefully will be tremendously helpful
in future professional career.
STEVENS BUSINESS SCHOOL (2009-11) Page 1

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The following Project work complies the exploratory overview of Human Resource
Departments of Oil and Natural Gas Corporation Ltd. at Vadodara. Where, I be trained the
overview of HR Departments like, Industrial Relation (IR), Establishment, Recruitment and
Promotion (R&P), General Administration (welfare), Performance Appraisal Review (PAR),
Loans & Advances (L&A), Estate, Discipline & Appeals (D&A), Industrial Engineering (I.E)
and Hospitality.
The Survey includes ³A Study of Promotion Policy of ONGC at Vadodara´. To study this
promotion policy is effective or not. I¶ll pertain the likert Scale for primary source. I pertain
this likert scale because we can simply examine whether respondents are more or less
favorable to a topic.
The principle of research is to find that employees are satisfied and effectiveness of the
existing promotion policy. For this analysis Workers, Technicians, Supervisory and
Executive level of employees were selected and data was collected from them.
It is observed that all employees to know of the existing promotion policy whereas only some
no. of respondents are not satisfied to existing promotion policy. Mostly 78% of the
respondents satisfied of this existing promotion policy. And some of the respondents are
neutral point of view of existing promotion policy.
After the study I come to know, Organization is not only concentrating on career growth of
new entrants joining but also updating knowledge of existing employees in term of better
career growth through giving incentives for higher education and training and development
programmed.
A promotion may be defined as an upward advancement of an employee in an

organization to another job which commands better wages, better prestige, responsibility
and authority in ONGC.
The purpose of the Promotion Policy is to provide greater opportunities for promotion
and to improve the upward mobility potential for qualified as well as functional
experience employees.

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Sr.no. TOPIC Page No.
1. Acknowledgement 01
2. Executive Summery 02
3. Introduction
3.1 -Industry analysis 04
3.2 -Company detail 22
4 Internship Project Detail 47
4.1 -HR Departments of ONGC at Vadodara 50
4.2 -A Study of the Promotion Policy of ONGC at Vadodara 64
4.3 -Objective of the Project 66
4.4 -Research Methodology 69

4.5 - Data Analysis 70
4.6 -Finding 92
4.7 -Recommendation 94
5. Reflective Note on Internship 95
6. Conclusion 96
7. Bibliography 97
8. Annexure 98

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The example above, though stylized, typifies the economics, and unique dynamics of oil
exploration and production. The major oil firms require large, established operating oil fields
in order to meet the tremendous demand for production. High oil prices and a seeming
decline in the number of .major. oil discoveries has created a market for much smaller
.independents,. who independently scour the planet for oil, but typically are not involved in
refining and distributing the finished product. Some, such as Anadarko Petroleum (APC) or
XTO Energy (XTO), have a history of success in the U.S. and are therefore subject to more
predictable cash flows. Others base their entire asset value on investing in, for example,
Papua New Guinea, such as Inter oil (IOC) has done.
Oil exploration represents the very first piece of the long petroleum value chain that
ultimately brings gasoline to the gas station at which you fill your Ford Explorer. Exploration
and production are often referred to as the .upstream. pieces of the value chain, as compared
to refining, distribution, and marketing, which are typically considered downstream activities.
The process of oil exploration looks a lot like the stylized example above. A company
identifies a potentially attractive area to drill, either onshore (i.e., on land) or offshore (i.e., in
the ocean). This area could be attractive because it¶s near another major discovery, or because
it used to be an operating well that has now dried up, or because government has released
some data that suggest the presence of hydrocarbons (i.e., gas and oil).
Next, the company and/or the government conducts initial surveys, such as seismic mapping
(see photo) to better understand the presence and availability of hydrocarbons under the
surface. (A seismic map is created by exploding dynamite or by stamping the ground with a
large pillar and measuring the way in which the resulting seismic waves travel through the
underground formations) At this point, the company considers a number of factors in its
decision about whether to drill a well How deep are the hydrocarbons? What rock formations
are beneath the rock and above it? Is there porous rock which might serve as a .sponge.,
soaking up oil? How big might a potential hydrocarbon discovery be?

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Example of a seismic map (BP)
Drill rig rental rates and utilization have skyrocketed (Newgate Capital)
As would be expected, oil exploration companies prospect for oil in the lowest risk / highest
return environments first. These are typically onshore sites in politically stable countries.
Riskier exploration prospects are offered in off-shore facilities -- exploring off-shore is also
more expensive, requiring a larger discovery in order to break-even. The riskiest of all
exploration plays involves .non-conventional. sources of oil, such as oil shale or the oil
sands.

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& - The backdrop to all conversations about oil exploration is both the price, and
the current worldwide proven reserves, of oil. Taken together, these determine whether a
specific exploration project will be economically attractive. In particular, the higher the price
of oil, the more expensive it can be to draw oil out of the ground and still make a profit. This
makes smaller fields, more remote fields, and oil that require more processing all the more
viable.
' - As one might imagine, the availability of computers and advances in seismic
technology have drastically improved the process of oil exploration, which was once little
more than drilling a well and crossing your fingers. Advances have pushed the envelope of
what is feasible, both in terms of finding where oil is and figuring out how to extract it once a
company has identified where it is. General Electric Company (GE), for example, offers
.Intelligent Drilling. technology, while a variety of engineering and seismic services firms
offer the latest in technology to find oil (e.g., 3D seismic mapping).
M% % - The availability of equipment and qualified professionals

to service it represents a genuine bottleneck in oil exploration. The price of .oilfield
services,. which includes all the ancillary requirements for drilling and operating a well, rose
20% in 2006. Lack of availability of drill rigs (for drilling oil), skilled petroleum services
professionals, seismic trucks, etc., can be a constraint in oil exploration. Note especially the
increase in drill rig rental rates experienced around the world (chart on left).
In its Q4/2007 Earnings Call, Andrew Gould of Schlumberger pointed out that, worldwide,
93% of jackups, 97% of semi-submersibles, and 100% of drill ships are currently being
utilized, with very few new offshore rigs coming online in 2008. This makes significant
offshore growth in 2008 relatively unlikely, as capital is already being used almost to
capacity. This lack of capital to meet demand will probably drive up oilfield services rates
significantly.
- Difficult weather, especially hurricanes and tropical storms, can create a

challenging environment offer a double whammy for oil & gas companies. Not only do they
disrupt current supply chains (making tanker deliveries difficult, for example, or disrupting
refining processes), but also they may disrupt or disable offshore drill rigs. This disruption
ultimately feeds through to the oil field services pricing, as discussed above. And, of course,

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leads to further difficult conversations about the impact of climate change on extreme
weather patterns.
& & - The majority of current oil reserves are controlled by a
handful of politically unstable countries, especially those in the international energy
oligopoly, OPEC. OPEC's control over the market allows it to control how much oil enters
the market, and the fact that the majority of OPEC countries constantly contend with
terrorism adds an added element of unpredictability to the international oil price mechanism.
Oil companies have a major incentive to explore in order to diversify their reserve holdings
and hedge against unforeseen issues in any one unstable part of the world. Furthermore, there
is a growing focus by governments around the world on achieving energy independence by
helping non-OPEC corporations find new reserves through investment in new technology.
This manifests itself in a number of ways, from tax cuts and subsidies to the loosening of
environmental regulations.

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Saudi Arabia, the United States of America and Russia are the top three oil producing
countries in the world.
Eighty percent of the world¶s readily accessible oil reserves are located in the Middle East.
)
The sales/consumption of petroleum products during 2008-09 were 133.40 MT (including

sales through private imports), an increase of 3.45 per cent over sales of 128.94 MT during
2007-08, according to the Ministry of Petroleum.
India's domestic demand for oil and gas is on the rise. As per the Ministry of Petroleum,
demand for oil and gas is likely to increase from 186.54 million tones of oil equivalent
(mmtoe) in 2009-10 to 233.58 mmtoe in 2011-12.
The refining capacity in the country increased to 177.97 million tones per annum (MTPA) as
on April 1, 2009 as compared to 148.968 MTPA as on April 1, 2008.

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The New Exploration Licensing Policy (NELP) was launched by the Government for
accelerating the pace of hydrocarbon exploration in the country. So far two rounds of NELP
have been announced. In order to operationalise the NELP-I, consultations were held with the
State Governments on NELP terms and their concurrence was sought before offering any
block in their respective States. Based on the concurrence received from the State
Governments, the Centre invited bids under NELP-I in January 1999 and a total of 48 blocks
(10 onshore + 26 shallow water offshore + 12 deepwater offshore blocks) were put on offer.
The 45 bids received on August 18, 1999 for 27 blocks were evaluated, production-sharing
contracts (PSCs) concluded and signed for 22 blocks in about 7 ½ months time on February
14, 2000. In India, for the first time the PSCs have been signed in such a short time after the
bid closing date. Production sharing contracts for two more blocks were subsequently signed
on October 3, 2000 and February 8, 2001. The total sedimentary area covering these 24
NELP-I blocks is about 0.232 million sq.km. This is the first instance in the country¶s
hydrocarbon exploration history that deep-water acreages were offered for competitive
bidding. The NELP ± I demonstrated the positive response by NOC sand medium to small
private companies, both Indian and foreign.
Implementation of works in the NELP-I blocks has begun in right earnest immediately
after issuance of the petroleum exploration license. The tempo of works in some of these
blocks has already set a unique record in the exploration activity in the country as 7 seismic
ships were working at a time in the offshore blocks awarded by the government of India.
Never before more than two seismic ships had operated in the country simultaneously. In
addition to the seismic campaigns undertaken in the NELP blocks, an exploratory drilling
activity, which usually takes up to 2 years after completion of seismic surveys, have also
been carried out in one of the offshore blocks. Encouragingly enough, results of these initial
exploratory efforts have already led to the discovery of a .gas strike. in offshore deepwater
areas of the Krishna-Godavari (KG) basin. While this discovery in the KG deepwater area,
Annapurna, is yet to be fully assessed, efforts would be continued in future to properly
develop and make the discovery productive. All these efforts reflect the great boost received
so far in the exploration activities of the country through the NELP route.

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With the favorable .industry-response. in NELP-I, the Government of India announced

NELP-II in December 2000 offering 25 exploration blocks spreading over 11 basins and
covering 9 on land blocks, 8 shallow water offshore blocks (up to 400 meter bathymetry) and
8 deepwater blocks (beyond 400 meter bathymetry). The Government has since improved
upon NELP-I and introduced certain new aspects in NELP-II like making the information or
data package available in CD ROMs, bringing in more transparency in bidding process by
making public the broad parameters for bid evaluation, introducing few modifications in the
model production sharing contract and creating a special interactive web site for promotion
the Nelp-II Blocks. The promotional programmed of the NELP blocks organized through
road shows in Delhi and a different international venue was also aimed. They achieved the
objective of sensitizing the investors and the technology providers about the availability of
the potentials of the blocks and the market. The NELP-II offer has received encouraging
response as bids for 23 of the 25 blocks offered were received on March 31, 2001. Production
Sharing Contracts of these 23 blocks were signed in a record time of about three and a half
months on July 17, 2001.
Two more rounds of NELP may possibly be announced by the Government with each
round consisting of 20 to 30 blocks. Of these two expected rounds, the first would in all
probability be floated before March 2002. The work programmed of both these rounds for
Phase-I & II is likely to be implemented during the X Plan period. Thereafter, the available
acreages would be considered for offer under a new open acreage system in which the
exploration blocks would be on offer for bidding on a round-the-year basis.

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1. Indian Oil Corporation
2. ONGC
3. Bharat Petroleum
4. Reliance Petroleum Limited
5. Essar Oil Limited
6. Gas Authority of India
7. Hindustan Petroleum Corporation
8. Aban
9. Oil India Limited
10. Tata Petrodyne
11. Bongaigaon Refinery
12. Gas Projects (India) Private Limited
13. Hindustan Oil Exploration Company Limited
14. India LPG
15. IBP Co. Limited
16. Lubricants India
17. Oil Gas India
18. Petrosil Group
19. Shiv-Vani Universal
20. Kochi Refineries Limited

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42 years of oil left?
According to the 2009 BP Statistical Review, the world has precisely 42 years of oil left.
Those numbers come from a very simple formula, the R/P ratio, which consists of dividing
the official number of global oil reserves by the level of today¶s production. Nevertheless,
this methodology is dangerously defective on several key points as it ignores geological
realities. Oil production does not consist of a plan level of production that brutally ends one
day; it follows a bell-shaped curve.
Indeed, the important day occurs when production starts to decline, not when it ends. As it is
a non-flexible commodity, even a small deficit in oil production can lead to a major price
surge. Finally, the R/P ratio does not acknowledge that production costs increase over the
time; the first oil fields to be developed were logically the easy ones and so the most
profitable. It is well recognized that remaining oil fields consist of either poor quality oil or
remotely located fields which need high technologies and expensive investments. Therefore,
relying on the R/P ratio gives a false impression of security while the actual situation is
critical

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Global oil reserves lies and manipulations
Oil is a strategic resource; therefore having oil is a key political and economic advantage for
a state. This is why politics interfere in the evaluation of oil reserves, especially in countries
with poor accountability records; that is, the majority of OPEC countries. In fact, OPEC oil
reserves dramatically increased during the 1980s and 1990s. However, they have not
discovered major oil fields after the 1970s. At this juncture, the question of what lays behind
these fluctuations needs to be asked.
The geologist Dr. Colin Campbell, founder of ASPO, explains the hidden reasons that led to
these changes ³In 1985, Kuwait, added 50% to its reserve. At that time, the OPEC quota was
based on the reported reserves; the more you reported, the more you could produce´. Fellow
OPEC members who were unwilling to see the influence of Kuwait growing, simply raised
their reserves soon after. Moreover, OPEC countries continue to present their reserves as flat
despite having extracted huge amounts of oil during the past twenty years. At this point, we
should not forget that oil reserves reported by these countries are not audited by independent
experts.
In 2006, Petroleum Intelligence Weekly said it had access to confidential Kuwaiti reports
which stated that reserves were half the official numbers7. In reaction, the Kuwaiti Oil
Minister stated, ³The Kuwait people are not concerned with numbers. This is related to
national security´. In 2006, Dr. Samsam Bakhtiari, a senior energy expert from the National
Iranian Oil Company, declared that oil reserves in the Middle-East were ³about half, or even
less than what the respective national governments claim´ and added ³as for Iran, the usually
accepted official 132 billion barrels is almost 100 billion barrels over any realistic assay´.
In fact, importing countries are simply asked to trust OPEC nations. Strangely, but surely,
this is done by importing countries who assume these numbers are true and use them in their
projections. On a report to the US Congress on Peak Oil, the US Government Accountability
Office justly noted these problematic estimations.
The question of oil reserves is most relevant. As oil exporting countries have less oil in their
ground, Peak Oil will arrive faster. Oil optimists who argue Peak Oil is still decades away
rely on these same erroneous data. In addition, if importing countries assume oil reserves are
abundant as they do, the crisis will be unexpected, unprepared and misunderstood; in one

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I learn from this Industry and from ONGC, that where we talk about the year 2008-09
Industry scenario the economic meltdowns, oil prices nose-dived from the peak of USD 147
per barrel in July'2008 to USD 33 per barrel in December' 2008. The prices crashed down not
because of any supply glut, but due to sudden slump in demand which increased the spare
capacity and in turn sentiments got depressed in the oil markets.
But in this kind of situation OVL invested Rs. 16,105 Crore, again the highest-ever, towards
overseas projects during FY¶09. We must realize that this spare capacity cushion is bound to
erode once the economies recover which seems to be happening faster than expected. The
crude prices have already moved up steadily, and are currently balanced around USD 70 per
barrel. These investment guided by the strategic pursuits of ONGC and the listed priorities
which have been mapped for sustained growth.
Where, During FY'09, the ONGC accreted 284.81 million metric tonnes of oil equivalent of
in-place volume of hydrocarbons; the highest in the last two decades. Ultimate reserve
accretion of 68.90 MToE from domestic operated fields is again the highest in 18 years. This
is the result of the first strategic pursuit of the Company i.e., 'intensified exploration' which
aims to create new oil and gas assets on continuous basis.
The strategic pursuit of the Company has been 'improving recovery factor'. The Company has
systematically been implementing Improved Oil Recovery (IOR) and Enhanced Oil Recovery
(EOR) schemes in 15 major fields. These schemes have helped in improving recovery factor
in these fields from 28% in 2000-01 to 33% in 2008-09. During this period Company
invested over Rs. 14,000 Crore in fourteen IOR/EOR schemes, which have already been
completed. Seven schemes are under implementation with envisaged investment of over Rs.
16,000 Crore. The Company maintained production levels at 61.23 MToE of O+OEG during
FY'09, from its domestic and overseas assets; marginally lower than the highest-ever
production of 61.85 MToE during FY¶08.
ONGC do this all things but they achieved their financials profits that are, 1) ONGC posted a
net profit of Rs. 161.26 billion despite volatile oil and crude prices. 2) Net worth Rs. 781
billion, 3) Practically Zero Debt Corporate, 4) Contributed over Rs. 280 billion to the
exchequer.

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To focus on core business of E&P, ONGC has set strategic objectives of
yc Doubling Reserves
yc Improving average recovery from 28% to 40%
yc Tie-up 20 MMTPA of equity Hydrocarbon from abroad.
The Focus of management will be to monetize the assets as well as to assetize the money.
0'"
yc To meet challenging demand of the business environment, focus of the HR Strategy is

on change of the employees ³mindset´.
yc Building quality culture and resources.
yc Re-engineering and redeployment for maximizing Utilization of HR potential.
yc To build and upgrade competencies through virtual learning opportunities for growth
and providing challenges in the job.
yc Including a spirit of learning and enjoying challenges.
yc Re-strengthening mutual faith, trust and respect.
yc Developing Human Resource through virtual learning, providing opportunities for
growth, inculcating involvement and exposure to benchmarking in performance.

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HR Parameters have been incorporated in the MOU by ONGC since 1994-95, to

systematically and scientifically evaluate effectiveness of HR Systems, which enables and
facilitates.
HR parameters of MOU for 2009-2020 are
yc Mentoring and coaching

yc HR audit
yc Engagement survey
yc Continuous professional education credit course for finance executives of ONGC.
M)%)
HR policies at ONGC revolve around the basic tenet of creating a highly motivated, vibrant and self-
driven team. The Company cares for each and every employee and has inbuilt system to recognize
and reward them periodically. Motivation plays an important role in HR Development. In order to
keep its employee motivated the company has incorporated schemes such as reward and Recognition
Scheme, Grievance Handling Scheme and Suggestion Scheme.
Incentive Schemes to enhance productivity
c Productivity honorarium scheme

c Job incentive
c Reserve establishment honorarium
c Roll out of succession planning model for identified key positions
c Group incentives for cohesive team working, with a view to enhance productivity

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During the pre-independence period, the Assam Oil Company in the northeastern and Attock
Oil Company in northwestern part of the undivided India were the only oil companies
producing oil in the country, with minimal exploration input. The major part of Indian
sedimentary basins was deemed to be unfit for development of oil and gas resources.
After independence, the national Government realized the importance of oil and gas for rapid
industrial development and its strategic role in defense. Consequently, while framing the
Policy Statement of 1948, the development of petroleum industry in the country was
considered to be of utmost necessity.
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Until 1955, private oil companies mainly carried out exploration of hydrocarbon resources of
India. In Assam, the Assam Oil Company was producing oil at Digboi (discovered in 1889)
and the Oil India Ltd. (a 50% joint venture between Government of India and Burmah Oil
Company) was engaged in developing two nearly discovered large fields Naharkatiya and
Moran in Assam. In West Bengal, the Indo-Stanvac Petroleum project (a joint venture
between Government of India and Standard Vacuum Oil Company of USA) was engaged in
exploration work. The vast sedimentary tract in other parts of India and adjoining offshore
remained largely unexplored.

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In 1955, Government of India decided to develop the oil and natural gas resources in the
various regions of the country as part of the Public Sector development. With this objective,
an Oil and Natural Gas Directorate was set up towards the end of 1955, as a subordinate
office under the then Ministry of Natural Resources and Scientific Research. The department
was constituted with a nucleus of geoscientists from the Geological survey of India. A
delegation under the leadership of Mr. K D Malviya, The then Minister of Natural Resources,
visited several European countries to study the status of oil industry in those countries and to
facilitate the training of Indian professionals for exploring potential oil and gas reserves.
Foreign experts from USA, West Germany, Romania and erstwhile U.S.S.R visited India and
helped the government with their expertise.
Finally, the visiting Soviet experts drew up a detailed plan for geological and geophysical
surveys and drilling operations to be carried out in the 2nd Five Year Plan (1956-57 to 1960-
61).
c""
In April 1956, the Government of India adopted the Industrial Policy Resolution, which
passed mineral oil industry among the schedule µA¶ industries, the future development of
which was to be the sole and exclusive responsibility of the state.
Soon, after the formation of the Oil and Natural Gas Directorate, it became apparent that it
would not be possible for the Directorate with its limited financial and administrative powers
as subordinate office of the Government, to function efficiently. So in August 1956, the
Directorate was raised to the status of a commission which enhanced powers, although it
continued to be under the Government. In October 1959, the Commission was converted into
a statutory body by an act of the Indian Parliament, which enhanced powers of the
commission further. The main functions of the Oil and Natural Gas Commission subject to
the provisions of the Act, were ³to plan, promote, organize and implement programs for
development of Petroleum Resources and the production and sale of petroleum and petroleum
products produced by it, and to perform such other functions as the Central Government may,
from time to time, assign to it´. The act further outlined the activities and steps to be taken by
ONGC in fulfilling its mandate.

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Since its inception, ONGC has been instrumental in transforming the country¶s limited
upstream sector into a large viable playing field, with its activities spread throughout India
and significantly in overseas territories. In the inland areas, ONGC not only found new
resources in Assam but also established new oil province in Cambay basin (Gujarat), while
adding new petroliferous areas in the Assam-Arakan Fold Belt and East coast basins (both
inland and offshore).
ONGC went offshore in early 70¶s and discovered a giant oil field in the form of Bombay
High, now known as Mumbai High. The discovery, along with subsequent discoveries of
huge oil and gas fields in Western Offshore changed the oil scenario of the country.
Subsequently, over 5 billion tones of hydrocarbons, which were present in the country, were
discovered. The most important contribution of ONGC, however, it is self-reliance and
development of core competence in E&P activities at a globally competitive level.
c & + ,
The liberalized economic policy, adopted by the Government of India in July 1991, sought to
deregulate and de-license the core sectors (including petroleum sector) with partial
disinvestments of government equity in Public Sector Undertakings and other measures. As a
consequence thereof, ONGC was re-organized as a limited company under the Company¶s
Act 1956 in February 1994.
After the conversion of business of the erstwhile Oil & Natural Gas Commission to that of
Oil & Natural Gas Corporation Limited in 1993, the Government disinvested 2 percent of its
shares through competitive bidding. Subsequently, ONGC expanded its equity by another 2
percent by offering shares to its employees.

c
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During March 1999, ONGC, Indian Oil Corporation (IOC) ± a downstream giant and Gas
Authority of India Limited (GAIL) ± the only gas marketing company, agreed to have cross
holding in each other¶s stock. This paved the way for long-term strategic alliances both for
the domestic and overseas business opportunities in the energy value chain, amongst
themselves. Consequent to this the Government sold off 10 per cent of its share holding in
ONGC to IOC and 2.5 per cent to GAIL. With this, the Government holding in ONGC came
down to 84.11 per cent.
In the year 2002-03, after taking over MRPL from the A V Birla Group, ONGC diversified
into the downstream sector. ONGC will soon be entering into the relating business. ONGC
has also entered the global field through its subsidiary, ONGC Videsh Ltd. (OVL). ONGC
has made major investments in Vietnam, Sakhalin and Sudan and earned its first hydrocarbon
revenue from its investment in Vietnam.

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Oil and Natural Gas Commission
Autonomous statutory Body
Public Limited Company
A Navratana PSU
a A ³Flagship´ Oil PSU
a Fortune Global 500
a Most Admired Indian Company among Fortune Global 500
a ONGC retained its top position among Indian companies with a Forbes
tag of 198th.
a Leading Oil & Gas Corporate of the Year
a Maharatna status to help emerge as global giants.

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The seeking and production of the crude oil and natural gas are generally referred to as
exploration and production phase of the total grant of function of the petroleum industry. A
divide has thus been made in the petroleum industry between the function relating to
exploration and production of crude oil and natural gas which is referred to as ³up-stream´,
and refining transportation and marketing to the end consumer which are referred to as
³down-stream´.
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Vadodara office is divided into three CRC (Corporate Rejuvenation Campaign -an
organizational structure) units-
. 5 undertakes the activity of acquisition, processing and interpretation (survey)
for following three blocks
Block 1 ± Ankleshwar, Bharuch
Block 2 ± Ahmedabad, Tarapur and Cambay
Block 3 ± Mehsana and Patan
Now consequent upon the merger of erstwhile ³Regional Office´ activities of maintenance,
Procurement, Quality Assurance, Security and vigilance functions, overall co-ordination of
finance functions, safety, Health and Environment management and general administration
are also coming under the purview of Basin (Western Onshore Basin)
a. %! ± Undertakes co-ordination activities related to drilling (both developmental

and exploratory), Cementing, Mud, Well and Work over services of following
yc Ankleshwar asset
yc Ahmedabad asset
yc Mehsana asset
yc Cambay and Jodhpur Project
. 1 ( ± Undertakes activities relating to repairing and fabrication of equipments.

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yc Alignment of HR vision with corporate vision.

yc Enhance productivity and performance by developing employee competency and
potential.
yc Developing professional attitude and approach.
yc Shift from support group to strategic partner in business operations .
yc Developing µGlobal Manager¶ for tomorrow to ensure the role of global players.

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V.K.Verma

SM ± DGM (HR)

V.K.Verma D.K.Kalra

DGM (HR) DGM (IE) I/C HR-ER
Eiect. Maint Civil Maint
L.Jena DGM N.P.Pandey

R&P (E) CEcc
Brij Mohan CM (HR)

I.E., PAR Est., D&A, L&A
&HRD
R.K.Sharma CE Mrs.R.S.Narayani
(IE)c CM (HR)
Hospitality Retired Employee

N.K.R.B.Gndhi
J.V.Soni DM
(HR) DM (HR)
Official Language
(I.R)M.Hazarika
Mrs.M.Aserkar
Sr. HR.
Sr.OL Officer
Executive
Estate
C.P.Biniwale

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In this Department I learn from 05-07th July, 2010
The Establishment department looks after general administration of the employees in the
organization like maintaining the personal files, service information, leave records,
transfer/posting information, pay increment record settlement of personal grievance, claims ±
Arguments.
There are 2 Establishment departments in the organization at Vadodara.
i) Establishment I
ii) Establishment II
The total strength of manpower at Baroda work-centre is about 1065. It is divided into two
divisions and both establishment departments handle personal files and service records of
employees.
The primary aim of HR is to guide the organization to become a dynamic one in order to
achieve organizational effectiveness enthusing with high degree of morale and satisfaction of
the employees. It is concerned with getting results through people at work. It is also
concerned with employees as well as group and helping the employers to maximize their
capacities and responsibilities to the possible extent.

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In this department 5 steps are there.
c Roster
c Recruitment
c Selection
c Seniority
c Promotion.
R& P Deals with above activity. includes qualification, age, written test, personal
interview. Also there are some categories with 7% SC, 15% ST, and 27% OBC.
Than, !) is only depends upon the vacancies of each department which have
fulfillment by advertisement. Vacancies are also here for handicapped criteria, visual
handicapped, hearing handicapped, and orthopedic handicapped.
Than, ! is totally based on written exam, personal interview, medical test.
Than, In " is based on marks or rate system & in the basis of given priority for the
vacancies. There are 45 days joining time is essential.
Than, in &) is based on PAR. They have A+ to +D Categories. These categories are
also applicable for contractual workers promotion period is 6 year in this company.
Committee of Board Member proceeding for promotion on the basis of master chart.
There are also other duties that is medical & paramedic¶s recruitment contract basis. (Region
wise). It includes Doctors, Psyotheorapist, Nurse, Dressing and Hospital department. For
Doctor and Psyotheorapist they pass with walking interview. And for Nurse and Hospital
department they pass with written exam, personal interview.

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c
Release order also concerned with R & P Department. It works release order for the post of
vacancy. Tenure is 4 years contract job. Payment scale is fixed for them. No promotion
policy in this. Qualification, age is required by vacancy. General /SC/ST/OBC are divided for
tenure.
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1. Rs.4300/-(Bottom of Class IV) Below 27 years
2. Rs.4700/-(Bottom of Class III) Below 30 years
3. Rs.7000/-(Top of Class III) Below 32 years
4. Rs.12000-17500/-(E-1 Level) Below 30 years
5. Rs.17500-22300/-(E-4 Level) Below 44 years
Recruitment for all posts up to the level of posts in the pay scale of Rs. 7000/- is de-
centralized.

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This Department I learn from 12-15th July, 2010
There are different jobs undertaken in General Administration section that are
I.c Contract Management

II.c Material Management
III.c Budgeting Job
IV.c CSR
V.c Central Register Department Section
VI.c Managing Event
Details of the aforesaid jobs are
I.c Contract Management

This section has the duty of looking into the paper work of the finalized contracts and
maintaining the record relating of PR and PO contract also.
The cases were also moved for sanctions of the following bills.
1.c Report Generation
2.c General Xeroxing
3.c Water Bills
4.c Speed Post Bills
5.c Environment Management Bills
6.c Charging of Franking Machine
7.c Hiring of Xeroxing Machine (08 Nos.)

c
c
II.c Material Management

The Material Management job looks after the procurement of all the material required
in WOB, Baroda. It takes care of all type of Capital and Store Items. It gets the list of
required Items from respective departments and on basis of that they place order of
the products. Members are being approach for the finalization and procurement of
preparing PR (purchase release) and PO (purchase order).
III.c Budgeting Job

Budgeting Job do the Allocation of the budget of WOB.
IV.c Central Register Department Section

Central Register Section does the job of sending and receiving the posts, vise
Ordinary Post, Registered Post, Registered AD Post.
V.c Managing the Events

Every year this Department organizes the events such as
yc 15th August ³Independence Day´
yc 26th January ³Republic Day´
yc 14th August, ´ONGC Day´
yc Farewell meeting for superannuating employee even month
yc Blood Donation Camp on Martyrs Day
yc Welcome Program for incoming transferee and fresh joined during 2009
yc Organized Pledge for Sadbhavna Divas
yc Business Game
yc Productivity Week

c
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A Performance Appraisal, Employee appraisal, Performance Review, or (career)

development discussion is a method by which the job performance of an employee is
evaluated (generally in terms of quality, quantity, cost, and time) typically by the
corresponding manager or supervisor. A performance appraisal is a part of guiding and
managing career development. It is the process of obtaining, analyzing, and recording
information about the relative worth of an employee to the organization. Performance
appraisal is an analysis of an employee's recent successes and failures, personal strengths and
weaknesses, and suitability for promotion or further training. It is also the judgment of an
employee's performance in a job based on considerations other than productivity alone.
It is the systematic evaluation of the individual with respect to his or her performance on the
job and his or her potential for development. In the Western Sector of ONGC, each work-
centre has its own PAR office. All PAR offices of various Assets in Western Sector are
accountable to Vadodara PAR Office since the PARs of all unionized category of employees
are maintained at Vadodara.
Corporate PAR office is in head-quarters, Dehradun. PARs belonging to Executives are

maintained centrally at headquarters.
Employees are divided into five different categories. PAR forms also differ in respect of such
categories. PAR forms are given to the Appraises. The Appraises fill in the required
information and submit those PAR Forms to the Appraisers.
These PAR reports are dealt by three levels of officers
1. Reporting officer
2. Reviewing Officer
3. Accepting Officer

c
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yc Making payroll and compensation decisions ± 80%

yc Training and development needs ± 71%
yc Identifying the gaps in desired and actual performance and its cause ± 76%
yc Deciding future goals and course of action ± 42%
yc Promotions, demotions and transfers ± 49%
yc Other purposes ± 6% (including job analysis and providing superior support,
assistance and counseling)

c
c
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This Department I learn from 02-04th August, 2010
M((!*"3
Various kinds of loans and advances extended to the regular employees of the organization
are shown below
c 0*'%!

yc ready built flat house,
yc purchase of plot and construction of house
yc flat house from housing development authorities
yc construction on own land
yc purchase of flat house from private builder
c 0*'%!

yc Enlargement of existing house
yc In lieu of existing house
yc Computer advance
yc CPF non refundable advance
yc Interest free lump sum advance
yc Lap top computer advance
yc Car advance
yc Two wheeler advance
Entitlement, admissible amount, recovery are different for the different level of employee.

c
c

This Department I learn from 21st-25th July, 2010
Organization provides the facility of quarters to its employees. Estate section looks after the
allotment of quarters. The allotment of quarter is done through Issuance of Circular in the
month of April till 15th June in office only. Allotment takes place in the month of August.
There are four types of quarter
c A type
c B type
c C type
c D type
- An employee with basic pays of Rs. 6999/- can apply for type Qtrs.
- 7000 and above can apply for type.
- E3-E5 can apply for type.
- DGM-GM can apply for D type. Basic pay is not mentioned for type accommodation.
This department is also made in order to take care of all the estates of ONGC
and even the allotting of houses to the transferees.
yc Maintaining Estates.
yc Making New Constructions.
yc Managing/Handling of Estates.
yc Allotting Quarters to Employees.
yc Paper Work and Maintaining Records.
yc Budgeting.
yc Predictions of Requirements in Future.
yc Looking Into All Civil Work.

c
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In This Department I learn from 26-27th July, 2010
In disciplinary proceedings for an alleged fault of an employee, punishment is imposed not in

wrath. The main purpose of a punishment is to correct the fault of the employees concerned
by making him more alert in the future and to send a message to the other employees to be
careful in the discharge of their duties so that they do not expose themselves to similar
punishment and the approach to be made is the approach parents makes toward an earring or
misguided child. Punitive action should appear to be fully justified so that it does not create
an atmosphere of distrust among the employees.
It is the duty of every appointing, disciplinary and appellate authority, the head of the
department and office, one who has to act as enquiry officer and all those who have to deal
with the cases of employees to have to deal with the cases of employees to have thorough
knowledge of rules and latest important case law on the subject.
Conduct rules not only provides a code of conduct but also contains, what are the
rules/procedures to be followed by employers to take disciplinary action, who should issue a
charge sheet and award a punishment, who should conduct enquiry, the duties of enquiry
officer, rights of the charge ± sheeted employees and like matter. The very important purpose
of the conduct rules is to safeguard the interest of the employees. However, the erring
employee also gets punished under the rules.
An employee can be booked under the conduct Rules (ONGC (CDA) Rules, 1994) only on
the receipt of some information and evidence about the alleged misconduct committed by the
delinquent employee.

c
c
! )3
a.c Complaints received by an administrative authority.

b.c Complaints received in the Central Vigilance Commission
c.c Complaints received or intelligence gathered by the Central Bureau of Investigation
and by police authorities
d.c Departmental inspection reports and Stock Verification Survey
e.c Report of any irregularities in accounts revealed in the routine audit of account e.g.
tampering with records, over ± payments, misappropriation of money and materials
f.c Audit reports on government account and on the accounts of public undertaking and
other corporate bodies etc.
g.c Complaints and allegations appearing in the press
h.c Surprise check carried by the vigilance department

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E E I EL
P
c
c
0("
Hospitality section mainly deals with following activities
/!
1.c To arrange accommodation for all incoming persons on official tour to this work
centre.
2.c To book hotel/guest house accommodation and confirm the same for all outgoing
persons on official tour to other places e.g. Delhi, Mumbai, Kolkata, Dehrdun,
Ahmedabad, Mehsana, Hazira, Assam etc..(Through SAP system).
3.c To empanel hotel for accommodation of touring officials.
4.c To maintain guest house through contractual services.
5.c Make contract with hotels and guest house contractor.
6.c To arrange meeting/conferences.
7.c To arrange official lunch/dinner/tea & snacks in meetings.
8.c To arrange reception of VIP ± provide accommodation, transportation and all other
necessary services.
9.c To arrange air/rail tickets for all out going official on tour to other places from this
work centre.
10.cTo verify and pass all bills from all parties concerned with above activities.
In this department I learn this all functions and in ONGC for employee for 15 day on and off
duty and 1 month on and off duty. So, that arrangement of tickets to look out this department.

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E E I EL
P
c
c
*$!% &$!
There are two of objectives
. '*$!%3
The Organization has to keep a check on the efficiency of the Performance of the
Individual, to find out that whether it is giving the Right Promotion / Career growth
for which the Organization had created it and for motivating employee as well as
create good leaders and leadership path for long term of employee and succession
planning.
. * )("%()*$!%3

It refers to the career growth of individual and employees contribution to
accomplishment of team, departmental and corporate objectives.
It is concerned with individual¶s motivation and ability to improve his/her
performance or knowledge, skills and competencies through promotion, training and
personal development plans.
! *$!%
c To Study the opinion of employee (workers/supervisors/executives) regarding the

existing promotion and reward policy in the organization.
c To Study the participation of employee in his/her career growth through the existing
promotion and reward policy in the organization.
c To Study about the satisfaction and effectiveness of the existing promotion policy.

c
c
!(
Promotion policy is very important and vital for any organization so it is very necessary to
study effectiveness of the policy. The study would be helping the organization in terms of any
suggestion. As we all know that each and every individual is unique they all have different
needs and aspiration from the organization. So it is a challenge for HR professional to make
successful promotion and reward policy, which would cater to need of all. The organization
has ti keep a check on the efficiency of the performance of the individual, to find out that
whether it is giving the right promotion /career growth for which the organization had created
it.
The following are the scope of a successful promotion policy
1)c For the Organization

yc Recognition of ideas for improvement.
yc Increased motivation and job satisfaction.
yc Enhanced working relationships with the superior.
yc Communication to people that they are valued.
yc Improved of task performed by each member of group.
yc Increased sense of cohesiveness and loyalty. Managers are better equipped to
use their leadership skills and to develop their staff.
yc Creation and maintenance of a culture of continuous improvement.
yc Increased sense of career growth and personal value for employee.
yc Opportunity to overcome the weakness by way of counseling and guidance
from the superior.

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E E I EL
P
c
c
! '"
The Sampling unit for the study was ³Oil and Natural Gas Corporation Ltd´. The study was
undertaken at Vadodara.
c &)"3
To situate an 18 Questions were that 9 is satisfaction and other is effectiveness of Promotion

policy and filled by 40 (sample size-40) employees in ONGC Vadodara. (Workers,
Technicians, Supervisors and Executives)
c !"3
Modify Recruitment and Promotion policy- 1980, HR Manual, Books, Research Papers and
Websites.

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E E I EL
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The above table and pie chart shows that overall total satisfaction level of this existing
promotion policy of per statement wise calculated Mean and Standard Deviation to know
each statement how much satisfied the respondents of this existing promotion policy. Where
as, 32.78% of the respondents strongly agree, 45.56% of the respondents agree, and 11.38%
of the respondents are neutral view of promotion policy. Which only 08% of the respondents
are strongly disagree of this promotion policy.
Therefore, from this data we can say that, mostly 78.34% of the respondents are state existing
promotion policy is satisfied to employees.

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E E I EL
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c
c
!3
The above table and pie chart shows that overall total effectiveness of existing promotion
policy of the organization, which 20.83% of the respondents strongly agree, 45.56% of the
respondents agree and 66% of the respondents are neutral point of view in existing promotion
policy. Where as only 2.795 of the respondents are strongly disagree. So, as per statement
wise calculated Mean and Standard Deviation and check whether promotion policy is
effective or not.
Therefore we can find as per the declaration that, 66.39% of the respondents are state
promotion policy effective to the organization.

c
c
/'
c Based on Mean and Standard Deviation it was found that the Promotion Policy is
Effective as well as employees are satisfied with the Promotion Policy.
c Based on pie charts results found are as follow
A.c Employees Strongly Agreed with following statements

c Promotion is the motivational factor for me.
c Promotion is to a great extent vital and beneficiary level in my service.
c Delay of Promotion De-motivate the employee.
c After getting Promotion, I¶ll try to acquire make the most of my skills and
knowledge.
B.c Employees Agreed with following statements

c Promotion is elevation in organization, which increase the job liability.
c I am aware of Promotion Policy in ONGC.
c I concur that the span of functional experience required for next promotion is
proper.
c Qualification is the main factor that affects the promotion / elevation of the
employee.
c Functional experience is exaggerated to promotion policy in ONGC.
C.c Employees Neutral or Undecided with following statements

c I am contented with the amendments made in the Modified Recruitment and
Promotion Regulation 1980 (MRPR-80).
c I feel that Promotion Policy under Seniority Cum Fitness (SCF) is better than
skill based Promotion.

c
c
D.c Employees Disagreed with following statements

c The Promotional Policy in ONGC is transparent to all employees.
c Functional experience is exaggerated to promotion policy in ONGC.
E.c Employees Strongly Disagreed with following statements

c After getting Promotion my responsibility and accountability towards my
work is supplementary.

c
c
M

c Based on the study findings I am recommend that Organization should also introduce
new skills based Promotion Policy to motivate the Employees.
c To find out talented employees and involve in continuous learning process as well as
to give them environment for continuous learning process so that they can update
their knowledge and extra skills.
c Provide opportunity within the organization for cross-training and career succession.
People like to know that they have scope for career movement.
c To Study once in 6 months a satisfaction level to all employees that is for Workers,
Technician, Supervisory and Executive employees. So, organization will know their
employees are satisfied with their job or not.
c To give opportunity for higher studies. So, they can hike their salary, career growth,
span of control and promotion also.
c Mentoring and handholding all fresh entrants from day one are important tasks;
during this period, they should be familiarized with the culture, vision and mission of
the company. It is at this time that new entrants experiment with different options.
Hence they should be exposed to the best values the organization.

c
c
!% (
This Industrial Internship Program offers me experience in various departments and units
within the Human Resource Departments. I have the opportunity to strengthen my
qualification and gain my knowledge in practical works.
Internship provides me learning and work experience in organization of ONGC that directly
related to my career goal emphasis.
In Internship learning increase my understanding of my chosen field of Human Resource

Management.
For me, this Industrial Internship Program is beneficial to build relationships of corporate
world. This whole learning experience is offering me a valuable resource for my project and
myself.
Internship provides an opportunity for me to apply my theoretical knowledge in a structured

environment, improve career prospects, take understanding of HR departments and develop
other skills such as communication and problem solving.
In ONGC get chance that uses my theoretical knowledge to apply in practical works of HR
field. And this internship period to fill the bridge between theoretical knowledge and practical
knowledge. How I communicate in formally, how human nature is different from others and
how that handle it, this all thing to learn in internship of ONGC.
This Internship gives a unique opportunity from which I can learn about the nature of
particular job, career, organization or industry and most importantly, myself.
The reflection has long been acknowledged for its credence in learning from ONGC in the
professional practice of globalized world.

c
c

c As per the analysis and findings, it can be concluding that the Promotion Policy of the
organization is effective. The employees are overall satisfied with the Promotion
Policy.
c Organization is not only concentrating on career growth of new entrants joining but
also updating knowledge of existing employees in term of better career growth
through giving incentives for higher education and training and development
programmed as well as through higher education under Unnati Prayas Scheme and
Super Unnati Prayas Scheme.
c Organization is taking the initiative to enhance better skills and output for its
employees by lunching Gyandhara and e-learning through 24x7 Learning, India's
premier talent lifecycle management company. 24x7 Learning has entered into a
strategic alliance with Scotland-based Atlas Interactive Ltd, an oil and gas industry
eLearning content specialist, and Option, a renowned oil and gas academy that
provides certifications to the sector. The partnership deal is worth around Rs 30 crore.
24x7 Learning has built, implemented and managed Gyandhara for ONGC. It
provides employees with opportunities for self-development and a range of oil and
gas related e-learning products.
c Organization is also applying effectively, changes in promotion policy time to time to
compete in current global scenario.

c
c
M&0
SITES
c www.googlebooks.com
c www.ongcindia.com
c www.ongcreports.net
c www.wikipedia.com
c www.citeHR.com
c Èwww.mendeley.com
c www.socialresearchmethods.net
BOOKS
c Recruitment & Promotion Regulations.

c Reach Methodology by C.R Kothari,Second Edition.
c Business Research Method by Alan Bryman and Emma Bell, Second Edition.

c
c
M[
Questionnaire
Dear respondents, my self Krishna Rajput, student of Master of Business Administration (MBA) of
Stevens Business School, Ahmedabad. At present I am doing my Internship at
( . The topic of the project allotted to me is ³A Study of Promotion Policy of
ONGC´. I would be honored to know the Promotion Policy of your organization. The information
provided by you is for project purpose and will be kept confidential.
/ ! ) **# ( ! " ')
')*"(!'!1 (((*.

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. '"'

Statements Scale
4'"M'#a4M'#4#
4'#4'"'.
1.c Promotion is the motivational factor for me. 1 2 3 4 5
2.c After getting Promotion my responsibility and 1 2 3 4 5

accountability towards my work is supplementary.
3.c Promotion is to a great extent vital and beneficiary 1 2 3 4 5

level in my service.

c
c
4.c Promotion is elevation in organization, which 1 2 3 4 5

increase the job liability.
5.c Performance appraisal review grading process is 1 2 3 4 5

pretentious to my promotion in ONGC.
6.c I believe that all Promotions are released in time. 1 2 3 4 5
7.c I am contented with the amendments made in the 1 2 3 4 5

Modified Recruitment and Promotion Regulation
1980 (MRPR-80).
8.c Delay of Promotion De-motivate the employee. 1 2 3 4 5
9.c Existing Promotion Policy of ONGC needs to be 1 2 3 4 5

modified.
10.cI am aware of Promotion Policy in ONGC. 1 2 3 4 5
11.cONGC¶s Promotion Policy is suitable and quite 1 2 3 4 5

adequate.
12.cThe Promotional Policy in ONGC is transparent to 1 2 3 4 5

all employees.

c
c
13.cI concur that the span of functional experience 1 2 3 4 5

required for next promotion is proper.
14.cI feel that Promotion Policy under Seniority Cum 1 2 3 4 5

Fitness (SCF) is better than skill based Promotion.
15.cQualification is the main factor that affects the 1 2 3 4 5

promotion / elevation of the employee.
16.cFunctional experience is exaggerated to promotion 1 2 3 4 5

policy in ONGC.
17.cI think that a Promotion policy under Seniority Cum 1 2 3 4 5

Fitness is better than vacancy bases.
18.cAfter getting Promotion, I¶ll try to acquire make the 1 2 3 4 5

most of my skills and knowledge.
&)3
Your name __________________

Designation __________________
No. of years in organization __________________
No. of Promotion received (till date) ________________ __
Last time Promoted __________________
Signature ____________________
Thank You for your cooperation.

c
c
!)6&)'# + & ,

/'(%!!*"().

, All promotions to posts shall be considered by a Promotion Committee duly
constituted by the Appointing Authority in accordance with the orders issued by the
Corporation from time to time and it shall consist of not less than three members.
a, All employees of the corporation, who fulfill the criteria as laid down for promotion to
the posts in Schedule I appended to these regulation shall be eligible for consideration
for promotion
Provided that where vacancies to be filled by promotion are limited and the numbers of
the employees who fulfill the said criteria are more, the Promotion Committee shall
decide the number of the employees to be considered for such vacancies.
Provided further that the number of the employees to be considered for such vacancies
shall not be less than twice the number of vacancies sought to be filled.
, Where an employee of the Corporation who fulfils the said criteria is not considered by
the Promotion Committee, it shall record in writing the reasons for not considering
such employee.
, In cases where the criterion for promotion is merit, the Promotion Committee, before
selecting the employees
a)c Shall consider the service records and annual confidential reports;
b)c May hold a written examination or practical test or interview or any combination of these;
c)c Shall follow the procedure for determining merit as laid down by the Corporation at least
two months in advance of the date of the said selection.
, In case where the criterion for Promotion is ³Seniority-cum-fitness´, the promotion
Committee, before selecting employees, shall consider the past service records and
annual Confidential Reports of such employees.

c
c
Provided that wherever test is provided for such selection I in Schedule I appended to
these regulations such tests shall be conducted by the promotion Committee.
Provided further that where any doubt arises about the fitness of such employees, the
Promotion Committee may, if it considers necessary, interview any such employees to
assess their fitness.
, The Promotion Committee shall submit its recommendation to the appointing authority after
arranging the names in order of merit in cases where merit is the criterion and in order of
seniority in cases where seniority-cum-fitness is the criterion.
, The appointing authority shall consider the recommendation of the Promotion Committee
and pass such orders as it thinks fir;
Provided that where the appointing authority does not accept any recommendation of the
Promotion Committee, it shall record the reasons therefore in writing.
, After issue of promotion order according to the availability of vacancies, the names of
remaining candidates shall be kept in the list for further use to fill up vacancies which may
arise in future
Provided that the period of validity of the said list shall be six months from the date of its
acceptance by the appointing provided further that the said period may be extended by a
further period of six months by the appointing authority for reasons to be recorded in writing.
, An employee shall be informed of his non-selection in the cases of promotion.

, All promotion in the Corporation shall be effective fro the 1st January every year.

c
c
,
()**!*' !34
, "4 )4/3
Under µSeniority-Cum-Fitness¶ criteria all employees who fulfill the specified

requirement of experience and qualification as specified in Schedule ± I appended to
these Regulation are considered for promotion by duly constituted Departmental
Promotion Committee according to seniority subject to their fitness based on
performance appraisal reports of relevant period and trade test and interview,
wherever required.
ii)c ë!! )
(a)c Under the quantification scheme, the executive will be assessed by a selection
committee on the basis of qualification, experience and performance Appraisal
Reports of the relevant period. Maximum marks allocated to each of these
criteria would be as follows
a) Qualification 20 marks
b) Experience 32 marks
c) Performance Appraisal Reports (PAR) 60 marks
Total 112 marks
x) !:!4+ ))a )1,
Q1 - 20 marks
Q2 - 15 marks
Q3 - 11 marks
Below Q3 - 07 marks

c
c
y) (!4+)))a)1,
1) E-1 to E-2
4 years - 16 marks
5 years - 20 marks
6 years - 24 marks
7 years - 28 marks
8 years & above - 32 marks
2) E-2 to E-3
5 years - 16 marks
6 years - 20 marks
7 years - 24 marks
8 years - 28 marks
3) E-3 to E-4
5 years - 16 marks
6 years - 20 marks
7 years - 24 marks
8 years - 28 marks

c
c
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(b)c In view of revision of format w.e.f. 1995, PARs in more than one format would
be considered for promotion effective from 1.1.1997 onwards for few years.
Therefore, the following equivalency would be adopted for the purpose of
awarding marks for PARs
M) *&M") :%
M(
'
!( 95 to 100 M;
(() 80 to 94 M
" 65 to 79 M4
60 to 64 ;
M: 55 to 56
51 to 54 ;
: 9;9
(c)c For consideration for promotion within executive levels (E-2 to E-3 and E-3 to
E-4) it is necessary to secure a minimum of 74 marks out of a total of 112
marks.

c
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E E I EL
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1)c Executives at E-3 and E-4 level securing 86 and above marks in the first attempt
(i.e. first year of consideration) under quantification scheme will be considered for
predating of promotion by one year on the basis of interviews by the Selection
committee for merit promotion.
2) The number of merit promotion to be carried out in an year not exceed
10% of executive who have secured 74 or more marks in quantification
Scheme and have been empanelled discipline wise at each level (E3 and E4).
However, the minimum of posts generated shall be one in case even a single person
has been promoted.
3)c The number of post of merit promotions i.e. 10% of executives Empanelled shall
be rounded up to nearest full figure (0.5 and more will be counted as one)
4)c The member of post thus created shall not be carried forward.
5)c All the executives securing 86 or more marks in a particular discipline and level
shall be called for interview.
6)c The marking system shall be as under.
Maximum marks under quantification scheme ± 112
Maximum marks for performance in interview - 28
Total maximum marks - 140
7)c Qualifying marks for interview shall be 16.8% (60%) for General / OBC and
11.2(40%) for SC/ST candidates.

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E E I EL
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Q-1 on or before 31.12.1996 will also be given similar treatment. However, all
existing executives being treated as Q-1 qualification holders will continue to be
treated accordingly. Executives joining subsequent to 31.12.1996 shall be governed
by MRPR-80 (Modify Recruitment & Promotion Regulations
, Existing unionized category employees recruited under R&P Regulations, 1980
having Q-1/Q-2/Q-3 qualification or those persons who have already acquired these
qualifications later on but before 31.12.96 will continue to be treated as such for
promotion up to E0 level only. However, persons joining subsequent to 31.12.1996
shall be governed by MRPR-80.
, The qualification prescribed for recruitment and promotion should be recognized by
the Government of India or U.G.C. or AICTE or State Board of Technical Education
or NCTVT.
, For the µExisting Employees¶ of EBG discipline where induction level qualification
at the top of class III is Post Graduate in the relevant subject as per R&P Regulations,
1980, the same shall be treated as Q-1 qualification and educational of Graduation in
relevant subject shall be treated as Q-2 qualification.
, For the µExisting Employees¶ in Material Management discipline, any graduation i.e.
B.A., B.Com, B.Sc will be treaded as Q-2 qualification, if the employee has joined
prior to 13.03.1985.
For µExisting Employees¶ in Material Management discipline, B.Sc. will be

treated as Q-2 qualification if the employees has joined subsequent to 13.03.1985.
yc If µExisting Employees¶ in Material Management discipline have acquired B.A., B.Com.

Qualification prior to 13.03.1985, the same will be treated as Q-2 qualification. However, in
case, they have acquired B.A/B.com after 13.3.1985, the same will be treated as Q-3
qualification.
a , For µExisting Employees¶ in Drilling and Production disciplines possessing

qualification equivalent to Graduation shall continue to be treated as Q-2 qualified, as
per the provisions of R&P Regulation, 1980 provided they have acquired the said
qualification prior to 25.04.1980.

c
c
a, The µExisting Employees¶ in Instrumentation discipline possessing qualification of

B.Sc. with Physics shall continue to be treated as Q-2 qualified, as per the provision
of R&P Regulations, 1980, provided they have acquired the said qualification prior to
25.4.1980.
aa, For the µExisting Employees¶ Diploma or P.G. Diploma, where minimum educational
requirement for admission is Graduation and where duration is minimum tow years
full time or three years part time will be considered as Q-1 in P&A, F&A and MM
discipline subject to the condition that it is recognized as Post Graduate Diploma by
the AICTE as equivalent to qualification prescribed for E-1 level.
a,
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c
c
Note
1. Up to E-4 level there will be growth oriented promotion (after specified years of service)
based on SCF and Quantification.
2. For E-5 level and above, the promotions would be on merit only based on performance in
interview, depending upon requirement and vacancies.
3. When an eligible employee is not considered fro empanelment by the Departmental

Promotion Committee, it shall record in writing the reasons for not empanelling such an
employee.
+<( '",3
&) (!(!*

/) To ë4*%*ë 4
4 S-II SCF ""
4 S-III SCF ""
4 4 / ""
No trade test is applicable for promotion within µS¶ category.
4 + <( '",3
&) (!(!*

/) To
M4 A-II SCF "
M4 A-III SCF "
M4 A-IV SCF "
M4 4 9 / "

c
c
yc A) µExisting Employees¶ with Q-1 and Q-2 qualification will be considered for promotion
to executive cadre, without appearing in Job Linked Test. However, they may opt for career
progression in µS¶ ± category, if they so desire.
yc B) ³Existing Q-3 qualified employees shall exercise the option, indicating their choice for
career progression in executive cadre or µS¶ category.
yc C) µExisting Employees¶ with below Q-3 qualification will have growth in µS¶ category
only.
yc D) Wherever trade test is prescribed in R&P Regulation. 1980, for promotion to E-0
level, the same shall be applicable for promotion to S-I category.
yc E) Before consideration for promotion to S-I level, µExisting Employees µ with Q-3 and
above qualification will exercise in option (as per preformed given at Annexure I) for
growing to executive cadre/¶S¶ category, subject to fulfilling the qualification requirement as
per the R&P Regulation.
The existing employees with Q-1 and Q-2 qualification in A-IV level will be eligible for
promotion to E-0 level after 6 years of service, subject to trade/proficiency test etc. as
prescribed in Schedule-I under SCF criteria.
The employees with Q-3 qualification will be given two consecutive opportunities to appear
in the Job Linked Test and in the event of their qualifying the same; such personnel will be
considered for executive cadre through assessment by interview. However, those who qualify
the test in the first attempt but fail to be selected in the interview shall not be given another
opportunity to appear in the interview. Persons who are not found suitable will be considered
for growth in the Class-III channel only. Those who do not opt for shifting to executive cadre
or those employees having less than Q-3 qualification will continue to be in Class-III.
F) Trade test for promotion wherever applicable will be held once every year and therefore
only one attempt in a year will be permitted to qualify the trade test in all categories.

c
c
IV. 4 3
&) (!(!*

/) To ë:
4 W-II SCF ""
4 W-III SCF ""
4 W-IV SCF ""
4 W-V SCF ""
4 W-VI SCF ""
4 4 / ""
a) The µExisting Employees¶ with qualification below standard VIII will be treated as under
qualified including Sanitary Cleaner & Mali recruited under MRPR -80.
b) Promotions would be subject to suitability under the Seniority-cum-fitness (SCF) criteria

and qualifying trade test (wherever applicable).
, Twenty five percent of the eligible employees in W-IV and higher level may be
considered for shifting to the bottom of class-III scale (Rs. 4700/- open ended ± bottom of
class III of MRPR-80). The eligible employee mean µExisting Employees¶ possessing Q-3
qualification as per R&P 1980 and having worked for a minimum of 3 years in W-IV level.
, Eligible employees so shifted to bottom of class-III will not be required to give an
irrevocable undertaking for their willingness to shift t bottom of class-III in the prescribed
format.
, The employees so shifted t bottom of class-III will not be entitled to scale protection or
rate of increment protection. However their pay shall be protected.
%, The shift from class IV to class III shall be done in accordance with the procedure
prescribed for induction at bottom of class-III.
%, The organizational requirement relating to class III posts shall be assessed by the HRG at
Headquarters on request fro the respective Regions.

c
c
%, The number of posts would be consolidated at the regional level and interviews selection
would be carried out at regional level. However, the distribution with the regional Industrial
Engineering Group.
%, No resultant vacancies in class-IV would be filled in.
%, Employees recruited in class IV under MRPR-80 would not be considered for shifting to
bottom of class-III even if they possess Q-3 qualification as per R&P Regs. 1980.
a,&M ()4!%
A) Promotion within class IV and from A-I to A-IV level in Class III will be on the basis of
SCF criteria wherein PAR criteria for relevant three year (e.g. for promotion w.e.f. 1.1.1999
PAR for 97-98, 96-97 and 95-96 will be considered.) shall be as under
1) If all three PAR rating are µGOOD¶ (or higher rating) candidate may be
cleared straight away.
2) If all three PAR grading less than µGOOD¶ and other two rating µGOOD¶ (or better
ratings) the candidate will be interviewed by the Departmental ( Promotion Committee).
3) If any two PAR grading less than µGOOD¶ the candidate may be rejected straight away.

c
c
B) Promotion from top of class III (A-IV) to S-1 level and further promotion within S cadre
will be on the basis of SCF criteria wherein PAR criteria for relevant three years (e.g. for
promotion w.e.f. class III 1.1.99 PAR for 97-98, 96-97 and 95-96 will be considered).
1) Candidate with two µGOOD¶ and one µVERY GOOD¶ PAR ratings (or any higher
combination of PAR rating) may be cleared straight away.
2) If all three PAR rating are µGOOD¶, the candidate will be interviewed by the
Departmental Promotion Committee.
3) If any of the three PARS rating is less than µGOOD¶ the candidate shall rejected
straight way.
C) For promotion from top of class III to E0 level Q-1/Q-2 qualified employees. PAR
criteria as per B) above shall apply, however they must pass trade test wherever applicable.
DPC shall interview Q-3 qualified employees after they clear job oriented / Professional test
and trade test wherever applicable irrespective of PAR grading. However if any of the three
PAR ratings is less than µGOOD¶, the candidate shall not be eligible for appearing in JLT-
(Job Link Test).
a,3
a) Inter-se seniority shall be maintained in the SCF / quantification scheme promotion

amongst the select list of persons.
b) In Cementing and Drilling discipline the cadres will be merged at E-5 level and designated
as Chief Engineer (Drilling).
c) In Electronics & Telecommunication discipline the cadres will be merged at E-4 level and
designated as Superintending Engineer (E&T).
d) The Marine Officer Foreign Going will grow interdependently upto E-4 level thereafter the
cadre will be merged into Logistics discipline at E-5 level as chief manger (Logistics).
e) In Map & Drawing discipline the cadres will be merged at E-2 level and designated a
senior.

c
c
f) The statutory requirement for possessing the requisite certificate issued by the competent
authority such as ³Certificate of Competency¶ as Electrical Supervisor, Boiler Attendant
certificate and Driving License etc. in relevant discipline for the purpose of recruitment and
promotion will continue to be in operation.
g) The employee on promotion without transfer shall be given a joining time of maximum 45
days fro the date of issue of order. The employees on promotion linked with transfer shall be
given a joining time of maximum 90 days from the date of issue of order. Where an
employees fails t join within the specified period, the promotion order shall suomoto become
invalid and shall be treated as cancelled and withdrawn.
a. These Regulation will apply to all the posts in the executive cadre and non-executive
category of employees.
%*3
Where the Corporation is the Appointing Authority, an employee who is aggrieved, by the
order of promotion on the ground that he has not been selected by such Appointing Authority
may make an application to the corporation for review of its decision within 30 days of the
date of receipt of an information by an employee under sub-regulation 9 of these Regulations.
Provided that the corporation may for sufficient reasons entertain an application for review
within a period of sixty days from the said date.
(!(!(!!'(3
1) In making appointments to posts, either by direct recruitment or promotion, the

corporation shall provide reservation and other Backward Classes. The physically challenged
handicapped, the Ex-Servicemen and other special categories of persons in accordance with
the orders issued by the orders issued by the Central Government from time to time in this
regards with respect to reservation of posts under the control of that Government to
candidates belonging to the Scheduled Castes, Scheduled Tribes and other special categories
of persons.

c
c
2) The Corporation may also provide reservation to a person who is a dependent of a

deceased employee of the Corporation.
For the purpose of these Regulations the expression µdependent¶ means and includes the
employee¶s husband/wife/son/brother/unmarried daughter as the case
( !3
If any question arises relating to the interpretation or modification of these regulations, the
same shall be referred to the Head of R&P at Dehradun who shall decide the same with
approval of the competent authority.
(6%'3
The Oil Natural Gas Commission (Recruitment & Promotion) Regulation. 1980 and all
orders or instructions there under are hereby repealed
Provided that such repeal shall not affect anything done or any action taken there under
and shall continue if these regulations had not been made.

c
c

MM M
#6 M/&M
' % !&" ! &"

(.a.a %*..
Executive Director E-9 Rs.23700-28550 Rs.62000-80000
Group General Manager E-8 Rs. 20500-26500 Rs.51300-73000
General Manager E-7 Rs. 20500-26500 Rs.51300-73000
Deputy General Manager E-6 Rs.19500-25500 Rs.48600-71000
Chief Manager ** E-5 Rs.18500-23900 Rs.43200-66000
Manager ** E-4 Rs.17500-23300 Rs.36600-62000
Deputy Manager ** E-3 Rs.16000-20800 Rs.32900-58000
Sr. ** Officer / ** Executive E-2 Rs.13750-18700 Rs.29100-54500
Officer **/ ** Executive E-1 Rs.12000-17500 Rs.24900-50500
Assistant Officer ** / ** Executive E-0 Rs.10750-17500 Rs.20600-46500
Chief Superintendent / Foreman ** S-IV Rs.15200 (OE) To be revised
Sr. Superintendent / Foreman ** S-III Rs.13750 (OE) To be revised
Superintendent / Foreman S-II Rs.11400 (OE) To be revised
Assistant Superintendent / Foreman S-I Rs.10220 (OE) To be revised
Topman / Chargeman **/ A-IV Rs.6500 (OE) To be revised
Assistant Grade I **
Rigman / Junior Technician **/ Assistant A-III Rs.5800 (OE) To be revised
Grade II **
Assistant Rigman / A-II Rs.5100 (OE) To be revised
Assistant Technician **/
Assistant Grade III**
Junior Assistant Technician **/ A-I Rs.4700 (OE) To be revised
Junior Assistant **
Head Worker ** W-VI Rs.10220 (OE) To be revised
Deputy Head Worker ** W-VI Rs.6500 (OE) To be revised
Senior Worker ** W-V Rs.5800 (OE) To be revised
** Grade I W-IV Rs.5100 (OE) To be revised

c
c
** Grade II W-III Rs.4700 (OE) To be revised

** Grade III W-II Rs.4500 (OE) To be revised
Junior ** W-I Rs.4300 (OE) To be revised
** Name of relevant discipline is inserted
Abbreviation in use
OE ± Open Ended

c
c
0/ &(
There are 4 levels of employees
1.c W- level (Worker)

2.c A- level (Assistant and Technicians)
3.c S- level (Supervisors)
4.c E- level (All Executives)
According to MRPR-80 the induction levels are as below

LEVEL SCALE OF PAY (Rs.) AGE LIMIT
Earlier Enhanced
a) Executive Level
E-4 17500-22300 42 yrs. 44 yrs.
E-1 12000-17500 28 yrs. 30 yrs.
b) Class - III
A-II level 5100 (Open ended) 30 yrs. 30 yrs.
Bottom of Class 4700 (Open ended) 28 yrs. 30 yrs.
c) Class ± IV
Bottom of Class-IV 4300 (Open ended) 25 yrs. 27 yrs.

c

A Study of Promotion Policy of Oil and Natural Gas Corporation Limited (ONGC)

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STEVENS BUSINESS SCHOOL (2009-11) Page 1

A promotion may be defined as an upward advancement of an employee in an

STEVENS BUSINESS SCHOOL (2009-11) Page 2

Sr.no. TOPIC Page No.

3.1 -Industry analysis 04

3.2 -Company detail 22

4 Internship Project Detail 47

4.1 -HR Departments of ONGC at Vadodara 50

4.2 -A Study of the Promotion Policy of ONGC at Vadodara 64

4.3 -Objective of the Project 66

4.4 -Research Methodology 69

5. Reflective Note on Internship 95

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The sales/consumption of petroleum products during 2008-09 were 133.40 MT (including

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STEVENS BUSINESS SCHOOL (2009-11) Page 21

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