A Ongc HRM Summer Project

OIL AND NATURAL GAS CORPORATION LIMITED
Summer Project Title

“Employee Motivation regarding incentive schemes
At ONGC” in Mehsana

Mehsana Asset
Project Report Prepared By

Bhargav P. Sutariya
Roll no - 111
NSVKMS MBA COLLEGE, VISNAGAR
2009-2011
Under The Guidance Of
MR.Ashok Gupta
HR Head cum Asset manager ONGC
Mehsana
NSVKMS MBA COLLEGE, VISNAGAR 1

PREFACE:
The project is done on the O.N.G.C. Mehsana.. Firstly I got information about the economic
position of the ONGC, then about the industry, after that I have done at incentive scheme in
ONGC ,Mehsana
Incentive Scheme in ONGC has been in existence since late 60’s and with the passage of time has
under gone number of reviews. Keeping the present business scenario in focus ONGC management
have realized that scheme has not able to achieve the desired objectives as intended in the scheme.
The main purpose of the scheme is to motivate the employees to achieve the target set by the
Organization. , As organization face mounting competition across the world. Companies can’t
sustain or even survive in such a relentless environment without attempting to accurately assesses
and enhance employee productivity and development.
In view of the above an attempt has been made to compile the details of all incentive scheme in
reference to employee working at ONGC. A need is therefore strongly realized for compilation that
has been titled as “EMPLOYEE MOTIVATION REGARDING INCENTIVE
SCHEMES AT ONGC”.

ACKNOWLEDGEMENT
It gives me immeasurable pleasure, to acknowledge the help and advice given
by all the concern people. It will be impertinent on my behalf if I do not thank each
and every person who has made an effort to put together this project.
First of all I would like to acknowledge the cooperation and encouragement of
the HOD PROF. JAYASHISH SETHI SIR who guided me regarding the project
content and issues related to it. further, I am very much thankful to prof. Rajesh
Handa Sir, prof. Virendra Chavada Sir, MISS Ishita Shah Madam and MR Jatin
Patel Sir for providing their valuable time and guiding to me through the project report.
I am debted to my advisor MR.ASHOK GUPTA (Chief Manager HR / In-charge
HR/ER) & MR H.R. CHAVADA ( EMPLOYEE ONGC ) whose guidance, patience,
encouragement and trust has been a great source of support for me throughout my
completion of project report at ONGC. I was privileged to work under him. He also helped
me to set up and refine my research agenda and career goals .
I would like to thank MR M.R.GARASIA ( SR HR EXECUTIVE, ONGC ) to
help me handle all the paper work and assistance during the project work.
Besides this I would also like to extend my sincere thanks to entire staff people who
were instrumental in completion of my project report.

EXECUTIVE SUMMARY
As the education of future managers would be incomplete without exposure to
working in an organization a summer training assignment is as essential requirement for
first year of MBA course.
My experience of the training was nice. I got a cooperative guide in the
company who helped in every respect . He used his personal contacts to get me appoin-
- tments from heads of different departments.
The other executives were also supportive & explained me everything as per their
knowledge. There was some bitter experience like some executives refused to give time; some did
not explained satisfactorily, etc.
The training report concerns the welfare schemes at ONGC with various
recommendations to make effective specially through looking at employees’ satisfaction
level.
The study was carried out in NSVKMS MBA COLLEGE, VISNAGAR Accordingly
the training was concluded ( on second june of a 2010 ) with recommendations to ONGC
as regards certain measures, which can be considered to have better satisfied executives
contributing their best for achieving organizational goals.


TABLE OF CONTENTS
S.L. No. Contents Page No.

1. PREFACE 2
2. ACKNOWLEDGEMENT 3
3. EXECUTIVE SUMAMRY 4
4. COMPANY CERTIFICATE 5
5. CORPORATION PROFILE 7
6. PURPOSE OF THE STUDY 8
7. INTRODUCTION OF ONGC 9
8. BASIC FEATURES OF ONGC 15
9. ORGANIZATIONAL SET OF 20
ONGC
10. RECOGNIZATION AND AWARDS 21
11. HR AT ONGC 23
12. INCENTIVE SCHEMES AT ONGC 28
13. BIBLIOGRAPHY 58
CORPORATION PROFILE
Oil & Natural Gas Corporation Limited properly known as ONGC , republic India’s number
one company with significant company in industrial and economic growth of the country is a
leading National Oil and Natural Gas producing company of India engaged mainly in exploration
,development and production of crude oil, Naturals gas and some value added products. It has gone
through its life cycle and now reached to its maturity stage after overcoming birth & growth
stage .The organization was born over about five decades ago on 14 th August 1956 ND today

ONGC is a fortune 500 company having more than 35000 employees as on date working in
different in India and abroad. The modest corporate house within serene Himalayan setting at
Dehradun and Registered office at Delhi.
ONGC has grown into a full fledge horizontally integrated upstream petroleum company
with adequate in house capabilities and infrastructure in the entire range of oil and gas exploration
and production activities and related oil fields engineering services .From a small directorate to a
monolith today ONGC is circumpassing the entire public gamut of public sector organization.
ONGC today is endeavoring to become a world –class oil and gas producing company in pursuit of
exploration and production business in the domestic and international area and related opportunity
specific energy business.
ONGC today is repositioning itself to fasten the principle of relational enterprise through
partnership\strategic alliances joint ventures with preferred partners and adopt a business strategy
which relies on company skills and positional assets with focus on core business areas and
opportunity specific diversification.
PURPOSE OF THE STUDY
Study on incentive schemes & employee motivation with special reference to national oil
company ONGC Rajasthan Forward Base, Jodhpur is part of the regular programme for MBA of
Rajasthan Technical University .

This project is carried out to find out the level of employee motivation regarding welfare
schemes & to find out how it can be made effective and implemented in day-to-day work of ONGC.
Also to find out what are the weakness and how can be rectified in the competitive edge of
globalizations concept and changed economic scenario of world The need has been felt as to how
company can made its welfare schemes attractive to enable an organization retain their human
capital to pay best packages according to one’s expertise in his job.
The supplementary objective of the study is to increase the efficiency and motivating the
employees .Superior and subordinates to maintain hormonal relationship between them while giving
emphasis on welfare schemes & its effectiveness. This scheme enhances the compensation and
needs improvement for covering all the employees in organization.
INTRODUCTION OF ONGC

COMPANY HISTORY
1947-1960:
During the pre-independence period, the Assam oil Company in the northeastern and Atoka oil
Company in northwestern part in of the undivided India were the only oil companies producing oil
in the country, with minimal exploration input. The major part of India sedimentary basins was
deemed to be unfit for development of oil and gas resources.
After independence, the national Government realized the importance oil and gas for rapid
industrial development and its strategic role in defense. Consequently, while framing the industrial
policy statement of 1948, the development of petroleum industry in the country was considered to
be of utmost necessity.
In 1955, Government of India decided to develop the oil and natural gas resources in the various
region of the country as the 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.
1961-1990:
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 found new resources in Assam but also
established new oil provides in cam bay basin (Gujarat),while adding new petroliferous areas in the
Assam-Arakan fold belt and East Belt and East coast basins (both inland and offshore).
After 1990:
The liberalized economic policy, adopted by the Government of India in July 1991, sought to
deregulate and de-license the core sector (including petroleum sector) with partial in disinvestment
of government equity in Public Sector Undertaking 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 and natural gas commission to that of
Oil and Natural Gas Corporation Ltd. 1993, the government disinvested of its share though
competitive bidding. Subsequently, ONGC expanded its equity by another percent by offering
shares to its employees.
During March 1999, ONGC, India oil corporation (IOC) – a downstream giant and gas
Authority of India ltd. (GAIL) – the only Gas marketing company, agreed to have cross holding in
each other 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 percent of its share holding in ONGC to IOC and 2.5 percent GAIL.
With this, government holding in ONGC came down to 84.11 percent.

In the year 2002-03,
after taking A V Birla Group, ONGC diversified into the downstream sector.
ONGC has also entered the global field though its subsidiary; ONGC Videsh Ltd ONGC has made
major investment in Vietnam, Sakhalin and Sudan and earned its first hydrocarbon revenue from
investment in Vietnam
• ONGC Group of Companies comprises of Oil and Natural Gas Corporation Limited (ONGC
- The Parent Company); ONGC Videsh Limited (OVL – a wholly owned subsidiary of
ONGC); ONGC Nile Ganga BV (ONG BV - a wholly owned subsidiary of OVL) and
Mangalore Refinery and Petrochemicals Limited (MRPL - a subsidiary of ONGC). Oil and
Natural Gas Corporation Limited (ONGC) is India's Most Valuable Company, having a
market share of above 80% in India's Crude Oil and Natural Gas Exploration and
Production. ONGC registered the highest profit among all Indian companies at US $ 1.92
billion (Rs. 8664.4 Caror) in the year 2003-04. Its production of Crude Oil in 2003-04 was
26.7 MMT and of Natural Gas 25.70 Billion Cubic Meters. ONGC also produce Value-
Added Products (VAP) like C2-C3; LPG; Naphtha and SKO.
• ONGC Videsh Limited (OVL) is overseas arm of ONGC, engaged in Exploration &
Production Activities. It trans-nationally operates E&P Business in 10 countries, making
ONGC the biggest Indian Multinational Corporation. In recent years, it has laid footholds in
hydrocarbon acreage in various countries including Ivory Cost and Australia. ONGC Nile
Ganga BV is a wholly owned subsidiary of OVL and has equity in producing field in Sudan.
• ONGC envisages organizing Import/International Sale of Crude Oil and Export of
Petroleum Products through Tendering Procedure for all the Group Companies. However, it

would be restricted to the Companies/ Firms/ Vendors registered with ONGC on its
approved Vendor Lists.
• Subsidiaries of ONGC
1 ONGC Videsh Limited (OVL)

2 Mangalore Refinery & Petrochemicals Limited (MRPL)

ONGC OFFICES ( IN INDIA )

ONGC OFFICES ( IN WORLD)

SWOT ANALYSIS
1. STRENGTHS
A) O.N.G.C LTD is perceived to be the leader in oil production industry.
B) O.N.G.C has a very efficient and professional management team.
C) O.N.G.C being an international company has sufficient resources and
capital to invest.
D) O.N.G.C has ISO-9001 & ISO 14001 registration.

2. WEAKNESSES
A) O.N.G.C facing difficulties to produce oil from aging reservoirs.
3. OPPURTUNITY
A) Energy utilization of buried coal resource (700 -1700M), estimated
63BT – Equivalent to 15000 BCM.
B) O.N.G.C facing difficulties to produce oil from aging reservoirs.
4. THREAT
A) Security of personnel & property especially crude oil continues to be
a cause of concern in certain area.
B) In some exploration Campaign Company involves high technology,
high technology, High investment and high risk.

BASIC FEATURES OF ONGC
 Company's vision & mission.
 Objectives of the company.
 Rajasthan forward base, Jodhpur.
 Major Achievement Of ONGC
 Different Working Condition.
 Oganizational setup of ONGC
 Globalization.
VISION OF ONGC
To be world class Oil & Gas Company Integrated in energy business with
dominant Indian leadership and global presence.
MISSION OF ONGC
World Class
Dedicated to excellence by leveraging competitive advantages in R&D and technology with
involved people.
Imbibe high standards of business ethics and organizational values.

Abiding commitment to health, safety and environment to enrich quality of Community life
Foster a culture of trust, openness and mutual concern to make working a Stimulating &
challenging experience for our people. Strive for customer delight through quality products
and services.
Integrated in Energy Business
Focus on domestic and international oil & gas exploration and production business
opportunities.
 Providing value linkages in other sectors of energy business.
 Creating growth opportunities and maximize shareholder value.
Dominant Indian Leadership
Retain dominant position in Indian Petroleum sector and enhance India's energy availability.
OBJECTIVES OF THE COMPANY
To maximize production of hydrocarbon, self reliance in technology, promoting indigenous efforts
to achieve self reliance in technology, promoting indigenous efforts to achieve in all related
equipment, material and services.
• Assist in conservation of oil, more efficient use energy and development of alter
- nate source of energy.

• Environmental protection
• Observe 100% safety in work.
DFFERENT WORKING CONDITION
Employee are working in different set-ups; at the drill sites where days ON/OFF pattern
is prevalent and the officers and staff 8 hours duty at base office where apart from normal office
hours some services like radio communication etc. are round the clock jobs . The work force is
approximately 200 with about 135 Officers and Remaining Staff.

ORGANIZATIONAL SET OF ONGC
From staff strength of 450 employees in the year 1956-57 ONGC staff from grown up to 35000 at
present.
There are about 15 broad disciplines under four main heading of
• Engineering Services
• Drilling Services
• Geophysical services and
• Administration and other support services.
Up to 1968, there was rapid advancement of individuals due to considerable expansion of
work . Thereafter, some stagnation took place in the career advancement of the employees.
GLOBALIZATION
ONGC operations are being internationalized with a view to acquiring exploration
acreage and access to oil in other basics world over in line with the over strategy followed by
international oil companies .ONGC Videsh Limited .a subsidiary of ONGC , is managing the
overseas ventures.

RECOGNITION AND AWARDS
Global ranking/Recognition
• Ranking 402nd in the Fortune Global 500 list for 2006, up from 454th last year ,
based on revenues; ONGC is ranked 115th in new list (based on profits ). Leading
all Indian corporate
• Topped the list of sensex Indian companies figured in Business Weeks first
annual ranking of Asia’s 50 best-performing listed companies drawn from a list of
625 Asian firms, ONGC was ranked ‘third’ among the 50 best Asian firms.
• Ranked 158th amongst the world’s largest companies as per market capitalization
on 31st March 2006 in the 10th annual Financial Times Global listing.
• Leads the list of Indian corporate titans, in the Forbes Global 2000, with 256th
ranking in list of 2000 business entities (including 33indian firms) based on sales,
profits Assets and Market Valuation.
• Sole Indian entry into the UNCTAD’s top 50, non financial Transnational
Corporations from developing countries ranked by foreign assets.
• Ranked 18th amongst 50 publicly traded global companies in oil &Gas industry
based on market capitalization and 15thy amongst 2 listed integrated Oil & Gas
companies.
• Conferred the Golden Peacock Award for the ‘Corporate Governance’ during the
International Conference on Corporate Governance.

Indian Ranking/Recognition
• Bagged the prestigious NDTV Profits Business Leadership Award in the Oil &
Gas category.
• Topped the Business Today list of Most Valuable companies in India for the
second year in a row. In the ranking, ONGC topped all the three categories viz.
Market Capitalization, Net Profit and Net Worth.
• Topped Business India’s 100 listed of Indian companies ,based on a weighted
average of several parameters, including Market Capitalization, Profit After
Tax(PA), Net Fixed and Net Sales.
• Ranked 11th in the Economic Times 500 Ranking with the highest Market
Capitalization, and Net Profit k, mainly due to lower P/E ratio and Return on Net
Worth.
• Ranked as the Most Respected Company in the PSU category in the 2006
Business World Survey released n Business World Magazine (June 2006).

HR AT ONGC
PEOPLE AT ONGC
Today, ONGC is the navratna company of India; and making this possible is a dedicated
team of nearly 35,000-40,000 professionals who toil round the clock .It is this toil, which amply
reflects in the performance figures and aspirations of ONGC. The company has adapted progressive
policies in scientific planning, acquisition, utilization, training and motivation of the team. At
ONGC everybody matters, every soul counts.
ONGC has a unique distinction of being company with in house service capabilities in all
he activity areas of exploration and production of oil & gas and related oil field services. Company
has adapted progressive policies in scientific
The men & women behind this machine made this possible. Over 18,000 experienced and
technically competent executives mostly scientists and engineers from distinguished Universities
/Institutions of India and abroad from the core of our manpower.Theyinclude
geologists,geophysicists,geochemists,drilling engineers ,reservoir engineers ,petroleum engineers
,production engineers ,engineering & technical service providers ,financial and human resource
experts IT professionals and so on.
Behind the excellent results achieved is a work force of 35000 strong belonging to various
discipline of the company actively in the persistent search of oil and infuse with a new –ethos and
productive work culture. The Company is aware that its success is mainly due to its greatest assets –

its people a multifaceted, multidisciplinary group with complete n- house capabilities for all
activities in the industry. To meet the requirement of manpower ,revised manpower norms for
operation of drilling rigs have been approved and implemented .Exercise for other operational
utilization of existing human resource special need based studies are being carried out region-wise.
To meet the challenges of the future ONGC has to diversify its activities with zero
manpower growth. Attempts have been made to form out the low technology jobs. A major thrust is
being given to the introduction of multi-craft manning. This will result in job enrichment.
TOTAL STRENGTH OF MEHSANA FORWARD
BASIN AS ON 01.04.2010
1. Class 97
2. Class 37
3. Class 46
4. Class 20
Grand Total 200
P & A STAFF POSITION AS ON 01.04.2008
1. Class 03
2. Class 03
3. Class 02
4. Class 04

Grand Total 12
STRENGTHS OF SC/ST EMPLOYEES AS ON 01.04.2008
CATEGORY
SC ST TOTAL
Class 1 11 05 16
Class 2 02 01 03
Class 3 08 03 11
Class 4 03 01 04
Total 24 10 34
HR VISION, MISSION AND OBJECTIVE
Integrating Employees towards Organization Goals
HR Vision
“To attain organizational excellence by developing and inspiring the true potential of
company’s human capital and providing opportunities for growth, well being and enrichment.
HR Mission
“To create a value and knowledge based organization by inculcating a culture of
learning, innovation and team working and aligning business priorities with aspiration of
employees leading to a development of an empowered, responsive and

competent human capital.”
HR Objectives
• To develop and sustain core values.
• To develop business leaders for tomorrow.
• To provide job contentment through empowerment, accountability and
responsibility.
• To build and upgrade competencies through virtual learning, opportunities for
growth and providing challenges in the job.
• To foster a climate of creativity, innovation and enthusiasm.
• To enhance the quality of life of employees and their family.
• To inculcate higher understanding of ‘Service’ to a greater cause.
HR Strategy
• To meet challenging demands of the business environment ,focus of the HR strategy is on
change of the employees ‘ mind set’.
• Building quality culture and resources.
• Re-engineering and redeployment for maximizing utilization of HR potential .
• To build and upgrade competencies through virtual learning, opportunities for growth and
providing challenges in the job.
• Re-strengthening mutual faith, trust and respect.
• Inculcating a spirit of learning & enjoying challenges.

Role of HR
• Alignment of HR vision with corporate vision.
• Shift from support group to strategic partner in business operations.
• HR as a change agent.
• Enhance productivity and performance by developing employee competency and potential.
• Developing professional attitude and approach.
• Developing ‘Global Managers ‘ for tomorrow to ensure the role of global players.
Measuring HR Performance
HR Parameters have been incorporated in the MOU by ONGC since 1994-95 to
systematically and scientifically evaluate effectiveness of HR Systems, which enables and
facilitates time bounds initiatives
HR Parameters of MOU for 2008-2009
• Transformation of ONGC –HR as facilitator and change Agent .
• Training and development.
• Action Plan and Implementaion for achieving HR mission and objectives.
• HR audit.
• HR for enhancing efficiency and productivity.
• Introducing the concepts of mentoring and knowledge management.
• Conducing a Climate Survey to identify areas for Organizational development

INCENTIVE SCHEME AT ONGC
1. Incentive for Acquiring Higher Qualification
(A) INCENTIVE FOR ACQUIRING HIGHER/ADDITIONAL PROFESSIONAL
QUALIFICATIONS.
(B) INCENTIVE FOR ACQUIRING Q-1, Q-2 OR Q-3 QUALIFICATIONS:
2. Scheme for grant of Incentive for Adopting Small Family norms
3. Incentive Scheme For ONGC Territorial Army Personnel
4. Incentive Scheme for Hindi Work Scheme
INCENTIVE FOR ACQUIRING HIGHER QUALIFICATIONS
In suppression of all previous orders on the subject, the Scheme of Incentive for Acquiring
Higher Qualifications to employees of the Corporation shall be regulated as follows:
1.OBJECT:
To encourage the employees to enhance their professional competence by acquiring
higher/additional qualifications.

2. NATURE OF INCENTIVE:
(a).Incentive for acquiring higher/additional professional qualifications.
I. SCOPE
This incentive shall be payable to executives who acquire higher/additional professional
Qualifications in their respective disciplines.
II ELIGIBILITY
1. The incentive of two increments shall be given to the executives who attain First
Class or 60% level (where such grades are awarded) in professional qualifications
Higher than the qualifications prescribed at the induction level after joining the
Corporation provided that these qualifications are in line with the discipline in
which the executive is working. However, the condition of securing First Class or
60% level is not applicable in case of CA/ICWA w.e.f. 6.10.1998 and also in such
Cases where the executives had acquired the qualification of CA/ICWA prior to
6.10.1998 but after joining ONGC. However in such cases the increments shall be
admissible only w.e.f. 6.10.1998.
2. Executives who had started their studies for acquiring higher/additional
Professional qualification prior to joining ONGC, but acquired the said qualification
after joining the Corporation are also eligible for benefit under the scheme.

3. ENTITLEMENT:
I. Two increments at the increment rate admissible at the time of acquiring the qualification
shall be treated as PERSONAL Pay and shall be carried over by the executive separately. The
increments are to be counted for payment of all allowances except Dearness Allowance; and are not
to be counted for determining the rate of annual increment and fixation of pay on promotion.
a) Rate of incentive increments to executives granted incentive for acquiring higher
qualification prior to 01.01.1997: Executives who had been granted incentive increments prior to
01.01.1997 and were in receipt of these increments in the pre-revised scales will be entitled to draw
incentive increments w.e.f. 01.01.1997 in the revised pay scales with reference to the post held by
them as on 01.01.1997. The incentive increments for this purpose will be calculated at the rate
applicable at the minimum of the revised basic pay of the post.
Illustration : If an executive was granted incentive increment prior to 01.01.1997, when he was at
E-2 level, and he is at E-4 level as on 01.01.1997, the amount of incentive increments will be
calculated at the minimum of E-4 scale of pay and not repeat not on the actual basic pay being
drawn by the individual in E-4 level.
c) Rate of incentive increments to executives granted incentive for acquiring higher
qualification after 01.01.1997: Executives who have been granted incentive increments for
acquiring higher qualification on or after 01.01.1997, will be entitled to draw the incentive
increments on the revised basic pay drawn by the individual at the time of acquiring higher
qualification.

d) Executives who have been granted incentive increments w.e.f. 06.10.1998 in terms of Office
Orders No. 1(12)/97/Incentive/EP dated 06.10.1998 & 16.11.1998 will draw the increment w.e.f.
06.10.1998 with reference to the level as on 01.01.1997 or actual date of acquiring qualification
whichever is later on the same principle as enumerated in para (a) & (b) above.
e) Rate of Increments in case of retrospective promotion/pay fixation: In both these cases, the
amount of incentive increments shall be regulated as per (a) or (b) above depending upon the
effective date of promoted post deemed to be held or the basic pay deemed to have been drawn on
the date of grant of incentive increments for higher qualification as the case may be taking into
account whether the executive was granted incentive increment on or after 01.01.1997 or prior to it.
II The rate of increment is dynamic i.e. on subsequent pay revisions the increment rate gets
revised to an amount to be calculated on the minimum of the revised pay scale of the relevant post
held at the time of grant of such increment. Employees who are actually drawing incentive
increments at a higher rate than that admissible on the lowest scale of pay continue to draw
incentive increment at the old rates
III. TREATMENT OF PERSONAL PAY(HQ)
The personal pay on account of grant of incentive increment for acquiring higher qualification
would count for all purposes at par with Basic Pay except Dearness Allowance and would not be
counted for determining the rate of annual incentive and fixation of pay on promotion
III a. ENTITLEMENT (For qualification acquired on or after 01/03/2008):

The revised monthly monetary incentive amount for qualification acquired on or after 1.3.2008 is
as follows:
Grade/Level Incentive Amount

E-0 860
E-1 960
E-2 1100
E-3 1280
E-4 1400
E-5 1480
E-6 1560
E-7/8 1640
E-9 1900
The above amounts are fixed and would have no bearing on change in pay scales.
However, employees drawing incentive increments till 28.02.2008, as per the earlier scheme would
continue to draw the same amount during the entire service.
IV QUALIFICATIONS RECOGNISED FOR GRANT OF INCENTIVE INCREMENTS
(upto 28/02/2008)
S.No. Qualification Discipline Effective Date
i) Ph.D./D.Sc. (in respective All disciplines 28.12.1981
Disciplines)
ii) Masters Degree in Industrial All disciplines 11.12.1991
Engineering & Management
iii) MBA All disciplines 28.12.1981
other than P&A
iv) Post Graduate Diploma in -do- 21.12.1987
Management recognized by

Govt. of India as equivalent
To Post Graduate Degree in
Management
v) Master in Admn. Management/ -do- 14.12.1992
Master in Management Studies
vi) M.E./M.Tech. Engineering disciplines 28.12.1981/29.07.1987
vii) C.A./I.C.W.A. F&A discipline 28.12.1981
viii) Company Secretary F&A, P&A, Legal 30.08.1982
Disciplines
ix) L.L.M. Legal & IR discipline 08.09.1990
x) Master in Financial Management F&A discipline 14.12.1992
V QUALIFICATIONS RECOGNISED FOR GRANT OF INCENTIVE INCREMENTS,
(on or after 01/03/2008)
Higher Qualification Discipline

Ph.D./D.Sc./D Phil (in respective All disciplines
disciplines)
Masters Degree in Industrial Engineering All disciplines
& Management
MBA or any other Management course All disciplines other than HR & Finance
equivalent to MBA
M.E./M. Tech/M.S Engineering disciplines
Company Secretary F&A, HR and Legal Disciplines
LLM Legal & HR discipline

B) INCENTIVE FOR ACQUIRING Q-1, Q-2 OR Q-3 QUALIFICATIONS:
1. SCOPE:
This incentive is payable to employees who acquire Q-1, Q-2 or Q-3
qualifications in their respective disciplines.
2. ELIGIBILITY:
The incentive in the form of lump sum award is given to such employees,
who attain Q-1, Q-2 or Q-3 qualifications prescribed at induction level after joining
the Company, provided that these qualifications are in line with the discipline in
which the employee is working.
3. ENTITLEMENT (For qualification acquired upto 28/02/2008):
This scheme is meant for employees who do not possess Q-1, Q-2 or Q-3
qualifications. The scheme includes:
i) An incentive of Rs.7, 500/- For executives and Class-III employees
who acquire Q-1 qualification for E-1
level induction post.
ii) An incentive of Rs.5, 000/- For executives and Class-III employees
who acquire Q-2 qualification
prescribed for induction of top of

Class-III.
iii) An incentive of Rs.2, 000/- For Class-IV employees who acquire
Q3 qualification prescribed for
induction at bottom of Class-III.
4. ENTITLEMENT (For qualification acquired on or after 1/03/2008):
i) An incentive of Rs.15, 000/- For executives and Class-III employees
who acquire Q-1 qualification for E-1
level induction post.
ii) An incentive of Rs.10, 000/- For executives and Class-III employees
who acquire Q-2 qualification
prescribed for induction of top of
Class-III.
iii) An incentive of Rs.5, 000/- For Class-IV employees who acquire
Q3 qualification prescribed for
induction at bottom of Class-III.

5.. GENERAL CONDITIONS:
I) The Scheme is applicable only to those who acquire qualification after
01.11.1988 while in service.
ii) The employee should have completed at least one year of service in the
Corporation.
iii) The employee should have appeared in the examination for acquiring the
qualification after appointment and during service in the Corporation and not
prior to initial appointment in the ONGC.
iv) The qualification which will be taken into consideration for grant of
incentive, under the scheme, will be those which are relevant in the
respective discipline in which the employee is working. For this purpose,
qualifications as prescribed under R&P Regulations will be taken into
consideration. For example, Q-1 qualifications will be the same as prescribed
for the various E-1 induction level posts under these regulations as amended
from time to time and Q2 qualifications will be the qualifications as
prescribed in the regulations ibid for direct recruitment to the top of Class-III
posts in various disciplines. However, if an employee attains the
qualifications of a discipline other than the discipline in which he/she is

working, he/she will not be entitled to payment in incentive, under the
scheme.
v) MBA which is a Q-1 qualification for P&A discipline is considered Q-1
qualification for other disciplines as well for grant of incentive under this
scheme to non-executives.
2(A). SCHEME FOR GRANT OF INCENTIVES FOR ADOPTING SMALL FAMILY
NORMS
PREAMBLE
(a) To motivate the employees to adopt small family norms in keeping with the
national objectives.
(b) To encourage employees to have an "Ideal family" with a view to improving
quality of life.
(c) To promote small family norms on voluntary basis.
1. SHORT TITLE AND COMMENCEMENT
This scheme may be called as Oil and Natural Gas Corporation Limited Scheme for
grant of Incentives for adopting small family norms.
2. APPLICABILITY

This scheme shall be applicable to all employees in Regular Scales of pay in the
Company.
3. LANGUAGES
The Regional Languages like MARATHI, GUJARATI, TAMIL, TELUGU,
BANGLA, PUNJABI, ASSAMESE etc.
4. TEACHING COURSES
Each language will consist of the following teaching courses:
5. ELIGIBILITY :
For Prabodh of the respective Regional Language employees of the categories of
drivers, technicians etc. in Class-III provided the mother tongue is not the respective
regional language.
For Praveen of the respective Regional Language, all employees in Class-III
categories excluding Class-IV, provided their mother tongue is not the respective
regional language.
6. INTERPRRETATION

In case of any doubt regarding interpretation of any of the provisions of this scheme,
the matter shall be referred to the Director (HR), who shall decide the same in
consultation with Finance.
7. POWER TO RELAX
The power to relax any of the provisions under this scheme shall vest in the Head of
the Region/Institute, (now Asset/ Basin Services/ RO) who shall exercise such
powers in consultation with the associated Finance. At Headquarters, these powers
shall be exercised by the Head of the Business Group in consultation with the
associated Finance.
8. POWER TO AMEND
The Company may from time to time amend, modify or add to this scheme and all
such amendments, modifications or additions shall take effect from the date stated
therein.
9. REPEAL AND SAVING
10.1 The Existing instructions on "Oil and Natural Gas Commission Scheme on
Incentives for Learning Regional Languages" are hereby repealed.
10.2 Nothing in this scheme or any repeal affected thereby shall affect or be deemed
to affect any thing done or action taken under the said scheme before commencement
of this scheme.

2(B). SCHEME FOR GRANT OF INCENTIVES FOR ADOPTING SMALL
FAMILY NORMS
INCENTIVES
The following incentives are provided to the employees for adopting small family
norms subject to the condition
(a).CASH INCENTIVE
A lump sum cash incentive of Rs.300/- may be granted to employees where the
employee himself or his spouse undergoes sterilization operation. This cash incentive
is payable irrespective of the fact whether such employees are entitled to draw any
cash or other type of incentive from any other source for undergoing sterilization
operation.
(b) SPECIAL INCREMENTS
Employees who undergo sterilization after having one surviving child and not more
than two or three surviving children may be granted a special increment in the form
of personal pay.
i. The personal pay would be equal to the amount of next
increment due at the time of grant of the incentive and will remain

fixed during the entire service except as stipulated in Rule 4.3(v)
However, where the employee is drawing the pay at the maximum of
the pay scale the rate of personal pay would be equal to the amount of
increment last drawn.
ii. The personal pay is granted from the 1st of the month
following the date of sterilization.
iii. The personal pay can be drawn at their choice by either the
husband or the wife where both of them are in the employment of
ONGC, so that they can avail the higher rate of increment available to
them.
iv. The personal pay shall be admissible at the same rate even if
the employee is held up at efficiency bar, or he is reduced to a lower
grade/post by way of penalty.
v. The rate of personal pay upon Revision of pay scales:
(a) Employees who have adopted small family norms prior to pay revision will be
entitled to draw the personal pay equivalent to the increment fixed at the rate of
increment in the revised scales of pay of the post held as on 1.1.1997. However
employees who were actually drawing the personal pay at a rate higher than the
lowest rate of increment in the Revised scales may continue to draw at the old rates.

(b)Employees who have adopted small family norms on or after the date of Revision of pay scales
wef 1.1.1997 will be entitled to personal pay of the rate admissible in the actual revised basic pay of
an amount equal to the amount of next increment due at the time of grant of the concession.
The Incentive increments on revised rates due to pay revision w.e.f. 1.1.97
are admissible to the employees who do not get any issue during the first four
years of marriage as per the terms and conditions as laid down in the
O.O.No.11(3)/2000-Welfare dt. 7.8.00. (ClarificationNo. 11(3)/2000-Welfare
date 26.2.2001).
vi) The rate of personal pay consequent upon preponment of
promotion/deemed promotion with retrospective effect: sterilization
operation.
3. INCENTIVE SCHEME FOR ONGC TERRITORIAL ARMY PERSONNEL
In supersession of all earlier circulars / office orders issued on the subject
matter, the incentive scheme for the benefit of the ONGC (Territorial Army)
personnel will be regulated as follows:
1. INITIALLY AT THE TIME OF JOINING T.A. :
ORs Rs. 4, 000/-
JCOs Rs. 6, 000/-
Officers Rs. 7, 500/-

2. SUBSEQUENT LUMPSUM AMOUNT AFTER ATTENDING TWO
CONSECUTIVE TRAINING EMBODIMENTS (FULL 30 DAYS
CAMP) :
ORs Rs. 3, 000/-
JCOs Rs. 4, 000/-
Officers Rs 5, 000/-
3. REIMBURSEMENT FOR MUFTY DRESS:
At the time of joining TA & after every four consecutive training
embodiments (full training Camps)
ORs Rs. 1, 500/-
JCOs Rs. 3, 000/-
Officers Rs. 5, 000/-
4. OUT-FIT ALLOWANCE :
At the time of recruitment and after seven training embodiments including
basic military training

ORs Free uniform plus Rs. 1, 000/-
JCOs Free uniform plus Rs. 2, 000/-
Officers Rs. 7,500/-
5. NON-MONETARY INCENTIVES :
i) House Allotment
One year notional seniority will be given after three consecutive
training embodiments subject to fulfillment of eligibility criteria.
ii) House Building and Conveyance Advance
One year notional seniority will be given after three consecutive
training embodiments subject to fulfillment of eligibility criteria.
6. BENEFITS DURING ANNUAL TRAINING EMBODIMENTS :
i) Salary as admissible in the Organization:
They will draw ONGC Salary including all applicable allowances
which were being drawn in the organization prior to TA duty.
ii) Basic Pay of the equivalent Rank in Army:

In addition to above ONGC salary, they will draw Basic Pay, as
admissible to corresponding rank in the Army (V th Pay Commission
rates will now apply).
iii) Lump sum payment for Annual Training Embodiment (full 30
days camp):
ORs Rs. 4,000/-
JCOs Rs. 6,000/-
Officers
- Lieutenant Rs. 7,500/-
- Captain Rs. 9,000/-
- Major & Above Rs.10,500/-
iv) Ration:
Free food as admissible to corresponding rank in army.
v) Preparatory Time (Special casual leave) :
Six days time (excluding Sundays and Holidays) which may be split
into two parts at the discretion of the employee, at the time of joining

embodiment or on termination of embodiment for attending to
personnel and family requirements. This period of six working days
shall be treated as “Special Casual Leave”.
vi) Annual Awards:
(a) Best all rounder of the year
Officer - Rs. 5, 000/-
JCOs - Rs. 3, 000/-
ORs - Rs. 2, 000/-
(b) Best annual performance for various events
- Battle proficiency & efficiency test Rs. 1,
000/-
- Physical proficiency test Rs. 750/-
- Turnout, Drill & Word of Command Rs. 750/-
7. BENEFITS DURING SERVICE EMBODIMENTS:
i. Salary as admissible in the Organization:

They will draw ONGC Salary including all applicable allowances
which were being drawn in the organization prior to TA duty.
ii. Basic Pay of the equivalent Rank in Army:
In addition to above ONGC salary, they will draw Basic Pay, as
admissible to corresponding rank in the Army on pro-rata basis (Vth
Pay Commission rates will now apply).
iii. Lump sum payment during Service Embodiment period:
Double of the ATC rate, as given in Para 6(iii) above and on pro-rata
basis, since the service embodiment period is variable based on actual
exigencies.
iv. Special Casual Leave:
As given in Para 6(v) above. However, in the case of exigencies the
same will be availed after the completion of service embodiment.
8. INCENTIVES / BENEFITS PROVIDED BY ARMY / TA UNIT:
i. Canteen Facilities

Canteen facilities provided to TA personnel during training and
service embodiment period, as available to Army.
ii. Medical facilities
Free medical and dental treatment as entitled to corresponding rank in
the Army.
iii. Leave Travel Concession
Leave travel concession to the extent admissible to regular Army
personnel.
iv. Money Order facility
Pay and allowance will be paid free of charge to the families of TA
personnel through Registered Bank Draft TMO and through courier
then situation demands so, at the discretion of the unit / Coy Officer
commanding.
v. Miscellaneous Allowances:

Miscellaneous allowances like Kit maintenance / cleaning & washing
allowance, camp allowance, bounty and free hair cutting shall be
available as per rates / facilities fixed by Army authorities from time
to time.
vi. Grant of Regular Army commission to TA personnel:
Commissioned officers, Junior commissioned officers and Non
commissioned officers of Territorial Army are eligible to compete for
admission to Indian Military Academy against the percentage fixed
for them.
vii. TA Decoration & TA Medal:
TA officers are eligible for award of TA decoration and junior
commissioned officers and other Ranks for TA medal on completion
of prescribed period of meritorious service, as per Army Rule.
9. OTHER BENEFITS AND INSTRUCTIONS
i. Advance of pay / lump sum

In addition to normal advance for TA / DA for the journey period, as
per ONGC Regulations, the TA personnel can also draw 50% of the
lump sum payment as given in para-6(iii) above as advance; these
personnel may draw one months’ advance pay when called for
Training/ Service Embodiment, to be recovered in ten monthly
installments.
ii. Treating the period of embodiment as ONGC duty.
The period of training service embodiment including journey period
shall be treated as on ONGC duty.
iii. Drawl of lump sum payment for training and service embodiment
period:
The lump-sum payment permissible under para-6(iii) & 7(iii) above
will be admissible to all ONGC TA personnel on training/ service
embodiment irrespective of their place of posting i.e. the individual
embodied in ONGC (TA) at the station of his posting will also be
entitled to draw lump sum payment for that period.
iv. Special instructions

a) The above instructions are in supersession of all the earlier
orders on the subject. Any clarifications interpretation may be
referred through the Head of Security & Vigilance at HQs,
Dehradun to the Head of Corporate Personnel Department at
Dehradun.
b) Reimbursement for Mufti Dress shall be claimed on a
contingent bill form, as per entitlement.
c) The periodical benefits where condition of consecutive
embodiments has been prescribed will not be relaxed under
any circumstances.
4. INCENTIVE SCHEME FOR HINDI WORK. TITLE :
OIL AND NATURAL GAS CORPORATION LIBERALISED COMPREHENSIVE INCENTIVE
SCHEMES FOR HINDI WORK.
1. SCOPE: All Offices of the Corporation irrespective of their place of location.
2. COMMENCEMENT : From the date of its adoption i.e. w.e.f. 21.6.1991.
3. INCENTIVES: The various incentives covered under the Scheme are:
i. Incentive for original Hindi Noting and drafting in official work.

ii. Grant of Hindi Incentive Allowance to Stenographers and Typists for
doing their official work in Hindi in addition to English.
iii. Hindi Incentives for in-service Training Courses.
iv. Lump-Sum Award and (V) Personal Pay.
(a) INCENTIVES FOR ORIGINAL HINDI NOTING AND DRAFTING
IN OFFICIAL WORK:
i. ELIGIBILITY
a. Officers/employees of the categories who are expected to do
original noting/drafting in official work can participate in this scheme.
b. Stenographers/Typists who are covered under some other
incentives for encouraging the use of Hindi in official work under this
scheme will not be eligible for incentives for original Hindi noting
and drafting. Stenographers and Typists can opt for Hindi incentive
allowance to Stenographers and Typists for doing their official work
in Hindi in addition to English as stipulated in para 4.2 of this scheme.
Stenographers and Typists can opt only for one type of an incentive.
c. Hindi Officers and Translators who generally do their work in
Hindi will not be eligible to participate in the scheme. However,
Hindi Stenographers and Hindi Typists doing English work in
addition to their Hindi work to meet out the bilingual preparation of

the documents to be issued under Sec.3 (3) of the Official Languages
Act, 1963 may opt for the incentives under para I91)(b).
ii. PRIZES
The following cash prizes in each Asset/Basin/Services/Institutes/Regional Offices
or work centers may be given to the participants every year according to the work
done by them in Hindi :
(a) First Prizes: Two Prizes Rs.700/-

(Seven Hundred each)
(b) Second Prizes: Three Prizes Rs.500/-
(Five Hundred each)
(c) Third Prizes: Five Prizes Rs.350/-
(Three Hundred Fifty each)
(d) Consolation : Five Prizes Rs.200/-
Prizes (Two Hundred each)
iii. CRITERIA
a. For facilitating assessment, a total of 100 marks will be
allotted. Out of this, 70 marks will be earmarked for the quantum of
work done in Hindi and 30 for the quality of noting and drafting in
Hindi.

b. A person who writes a minimum of Twenty Thousand words
in Hindi in Regions ‘A’ & ‘B’ and Ten Thousand works in Region
‘C’ in an year will be eligible to compete for the prizes. The prizes
will be awarded to the first ten persons in order they stand on the
basis of the marks allotted by the Assessment Committee referred to
in para (iv) below. Consolation prizes will be awarded on the
recommendation of the Assessment Committee to such persons who
do work in Hindi meritoriously but are not covered under First,
Second and Third prizes.
c. The competitors will maintain a record of the words written by
them every day in the Performa (given below). Each week’s record
will be verified and countersigned by the next higher officer. If
Section Head himself keeps a record then it won’t be necessary for
employee to maintain such record. At the end of the year, every
competitor will submit the record of his/her work done in Hindi to the
Assessment Committee through the countersigning officer. If
countersigning officer or Section Head himself keeps an overall watch
and account of work, then this would not be necessary and he would
furnish details.
d. The willing participants will apply in advance of their being
participants to the scheme.
iv. CONSTITUTION OF ASSESSMENT COMMITTEE

The Assessment Committee in each Asset/Basin/Services/Institutes/Regional Offices
or Work centers may consist of the following:
(a) An officer not below the level of E-4.
(b) A Senior P&A Officer
(c) A Senior P&A Officer (Hindi)/Hindi Officer/PAO looking after Hindi work.
v. PROFORMA
WEEKLY STATEMENT OF THE HINDI NOTING/DRAFTING WORK
DONE BY SHRI/SMT./KM.______________________________
DESIGNATION_____________________ C.P.F. No._________
FOR THE WEEK ENDING ON __________
File No. Signature
Date No Quantum of Quantum of of of

Sectional
notes/drafts notes/drafts words Head

written in written in

Hindi Hindi
1 2 3 4 5 6 7
DRAWBACKS OF PROJECT
Although the project was carried out with the motive of ensuring most exhaustive and
comprehensive coverage of the facts but still it suffers through certain limitations, these are the
followings:
• The training was carried out in the prescribed time frame of 8 weeks, which is a short time
span to carry out a full training in a large organization.
• Though the sample size was small it was ensured that almost all the departments were
covered and equitable representation was taken from each departments by covering various
grade.
Source of Data Collection:
• Library
• Office Files
• Journals
• Internet
• Different departments

BIBLIOGRAPHY
Books
• ‘Personnel Management’ by C.B.Memoria.
• Human Resource Management’ by L.M.Prasad.

• ‘Personnel Management’ by S.P.Subba Rao.
Published Reports:
• Annual Reports of ONGC Ltd.
• Financial report of ONGC Ltd.
• Various News letters of ONGC
ONGC POLICY MANUAL:
News Papers:
• Economic Times of India
• Financial Express
Websites:
• www.ongcindia.com
• www.ongc.com
• www.ONGCNet..in
• http://10.205.55.5/

A Ongc HRM Summer Project

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OIL AND NATURAL GAS CORPORATION LIMITED

Summer Project Title

OIL AND NATURAL GAS CORPORATION LIMITED

Project Report Prepared By

Under The Guidance Of

HR Head cum Asset manager ONGC

NSVKMS MBA COLLEGE, VISNAGAR 1

and enhance employee productivity and development.

has been titled as “EMPLOYEE MOTIVATION REGARDING INCENTIVE

NSVKMS MBA COLLEGE, VISNAGAR 2

It gives me immeasurable pleasure, to acknowledge the help and advice given

First of all I would like to acknowledge the cooperation and encouragement of

I am debted to my advisor MR.ASHOK GUPTA (Chief Manager HR / In-charge

HR/ER) & MR H.R. CHAVADA ( EMPLOYEE ONGC ) whose guidance, patience,

me to set up and refine my research agenda and career goals .

I would like to thank MR M.R.GARASIA ( SR HR EXECUTIVE, ONGC ) to

were instrumental in completion of my project report.

NSVKMS MBA COLLEGE, VISNAGAR 3

As the education of future managers would be incomplete without exposure to

working in an organization a summer training assignment is as essential requirement for

first year of MBA course.

My experience of the training was nice. I got a cooperative guide in the

- tments from heads of different departments.

not explained satisfactorily, etc.

recommendations to make effective specially through looking at employees’ satisfaction

contributing their best for achieving organizational goals.

NSVKMS MBA COLLEGE, VISNAGAR 4

NSVKMS MBA COLLEGE, VISNAGAR 5

S.L. No. Contents Page No.

NSVKMS MBA COLLEGE, VISNAGAR 6

Dehradun and Registered office at Delhi.

specific energy business.

opportunity specific diversification.

PURPOSE OF THE STUDY

Rajasthan Technical University .

NSVKMS MBA COLLEGE, VISNAGAR 7

capital to pay best packages according to one’s expertise in his job.

needs improvement for covering all the employees in organization.

NSVKMS MBA COLLEGE, VISNAGAR 8

deemed to be unfit for development of oil and gas resources.

NSVKMS MBA COLLEGE, VISNAGAR 9

of geoscientists from the Geological survey of India.

shares to its employees.

With this, government holding in ONGC came down to 84.11 percent.

NSVKMS MBA COLLEGE, VISNAGAR 10

In the year 2002-03,

Added Products (VAP) like C2-C3; LPG; Naphtha and SKO.

Production Activities. It trans-nationally operates E&P Business in 10 countries, making

• ONGC envisages organizing Import/International Sale of Crude Oil and Export of

NSVKMS MBA COLLEGE, VISNAGAR 11

approved Vendor Lists.

1 ONGC Videsh Limited (OVL)

NSVKMS MBA COLLEGE, VISNAGAR 12

ONGC OFFICES ( IN INDIA )

NSVKMS MBA COLLEGE, VISNAGAR 13

ONGC OFFICES ( IN WORLD)

NSVKMS MBA COLLEGE, VISNAGAR 14

A) O.N.G.C LTD is perceived to be the leader in oil production industry.

B) O.N.G.C has a very efficient and professional management team.

C) O.N.G.C being an international company has sufficient resources and

D) O.N.G.C has ISO-9001 & ISO 14001 registration.

NSVKMS MBA COLLEGE, VISNAGAR 15