A

PROJECT REPORT
ON
PERFORMANCE APPRAISAL
PRACTICES IN ONGC

(Submitted in partial fulfillment for the

Completion of the degree of BBA)

Under Guidance of: Submitted by:

Factulty Head: Pooja kumari Neeru Saini
Designation: HR Professor

ONGC Academy
Dehradun

FACULTY OF ARTS, SCINECE & COMMERCE

Mody Institute of Technology & Science
Lakshmangarh (Rajasthan)
2009-10
 PREFACE

Human being are a resource to an organization like my other

material on economic resource they represent an investment.

Competent employees do not remain competent forever. Skills

deteriorate and can obsolete. That is why organization spends billions

of dollars each year performance appraisal. The efficiency of an

organization depends directly on how capable is employees are in the

competitive world and how they are motivated to work. An

employee’s growth, personal, development on his performance.

Similarly, an organization growth, future planning and employee’s

performance. Further, an employee’s performance is also used as an

indicator for compensation packages career counseling and identifying

training needs. The process of appraisal usually involves comparing

the performance with the standard. Performance appraisals are

essential for effective management and evaluation of staff. Appraisal

helps develop individuals, improve organizational performance and

feed into business planning. Formal performance appraisal is generally

conducted annually for all the staff in the organization.

 ACKNOWLEDGEMENT

I feel pride and privileged in expressing my deep sense of

gratitude to all those who have helped me in presenting this

assignment.

I express my sincere gratitude to Shri A.K. Sahu, DM (HR) for

their inspiration, constructive suggestions and mastermind analysis in

my work, without this, project work completion was impossible for me.

I am greatly indebted to other staff members of ONGC Academy

for their kind help rendered to me through the entire period of my

project work. Sincere thanks to all my senior colleagues and last not

the least to the librarian.

 CONTENTS

CHAPTER 1 Introduction
3

CHAPTER 2 Overview of ONGC 6

CHAPTER 3 Changes in Economic

Environment and its
Impact on ONGC 11

CHAPTER 4 Performance Appraisal

Practices in ONGC 20

CHAPTER 5 PAR Section in ONGC 25

CHAPTER 6 Current Initiatives of PAR

System in ONGC 33

CHAPTER 7 Data Analysis and

Interpretation

CHAPTER 8 Limitations 35

CHAPTER 9 Conclusion 36

CHAPTER 10 Suggestion 38

CHAPTER 11 Bibliography 40

CHAPTER 12 Annexure 41
Introduction
 CHAPTER NO 1

INTRODUCTION

Oil and Natural Gas Corporation Ltd. (ONGC) a Navaratna public sector

enterprise engaged in exploration of hydrocarbons is one of the leading

companies with significant contribution in its industrial and economic growth

Over the years ONGC has been fairly successful in building up a vibrant oil

industry in the country. The above topic was chosen to extent of Performance

Appraisal practices operative in ONGC and the need for further strengthening of

performance appraisal system of the employees so as to improve the efficiency

and productivity and prepare them for their future needs.

The modern business environment is characterized by uncertainty and changes,

competition, technological obsolescence, trust on quality and higher productivity

and above all fight for survival and success. Business Enterprises are increasingly

apprehensive of the growing competition and do not wish to be remembered as a

corporate dinosaurs. The message is loud and clear. Attain and sustain the cutting

edge if you want to survive and succeed in this highly competitive environment.

In the changing environment, the human factor has become more important than

ever before. Organizational are becoming increasingly dependent on people as

business tends to the more complex and diverse. HRM today is not only slogan but
has become economic necessity. HRM strategies such as Performance Appraisal,

Training etc. have to be tailored to suit the business environment of the economy.

Of the various strategies and mechanisms, there is tremendous potential in

PERFORMANCE APPRAISAL SYSTEM (PAS) as an effective tool for

gaining competitive edge. In the modern day turbulent business environment,

innovative PAS strategies are required to meet a plethora of challenges. What is

true of one organization or nation may not necessarily apply exactly the same way

elsewhere. So we will need to innovate such strategies of performance appraisal as

suit the business environment of our economy in the wider context of

globalization.

So in the pursuit competitive advantage, strengthened HRD mechanisms

for PA are expected to play an important role in ensuring employee involvement

and commitment to the corporate objectives, exhibit genuine qualitative concern

for developing appropriate work ethics and attitudes to performance, play an

active role in strategic planning. In the wake of fast changing business

environment there is need to do serious introspection about the existing PA

systems and processes operative in ONGC and identification of gaps to strength

them and to increase organizational effectiveness. The focus on innovative PA

interventions will in the long run, enable organization to leap much ahead of their

competitors in the global race for market supremacy.

Overview
Of
ONGC
 CHAPTER NO 2

OVERVIEW OF ONGC

The Oil and Natural directorate was formed in the year 1952 as part of department

of Geological Survey of India (GSI) to undertake the task of exploration of crude

oil in the country. The directorate was transformed into commission in the year

1956 thenceforth it was known as Oil and Natural Gas Commission till recently in

the year 1993 when it converted into a public limited company and is known as

Oil and Natural Gas Corporation Limited.

The ONGC is a pioneer organization today having its net assets worth Rs. 66199

Crores (during 2008-09) and Group Sales Turnoer Rs. 86276 Crores (during

2008-09). The ONGC started with 60 employees in 1956 and most of them from

GSI. The commission’s initial expansion was very slow till the oil struck first

time in the country in the year 1958 at Cambay.

The Commission (as it is known earlier) undertook very challenging task of

exploration and production of hydrocarbons within the country. It surveyed large

part of the country across its length and width. The ONGC successfully

discovered major fields in Gujarat, Assam and Bombay High. Its recent

discoveries are in Godavari, Kaveri basin and south offshore. Its production rose

from 53.75 MMT to about 60.77 MMT in the year 2008-09. The rapid expansion

in activities after discovering Bombay High oil fields and other prospective areas
called for large number of fresh recruitment. The strength of ONGC employees

rose to 40021 as on 31-03-2000 from 26000 in year 1980. The organization has

rapid growth in eighties and nineties. It achieved ever high production of oil 60.77

MMT in the year 2006-07.

CORPORATE VISION/MISSION

Like all other organizations ONGC also has vision/mission and objectives vis a –

vis HR visio/mission and objectives to have shared ision is not just an idea but it

compels an organization to achieve new heights in order to realize the shared

dream. It also helps in forging a common identity amongst the diverse group of

people in ONGC in a single direction.

WELFARE MESURES

ONGC draws its strength from 34000 strong manpower and always value its

people. During the year 1998 in its efforts to improve the working conditions for

employees the company implemented a Social Security Scheme for the welfare

and rehabilitation of the families of employees who die in harness.

• To develop women employees, ONGC has set up a women Development

Forum at every project/Region/Office of the company to look after the

welfare, improvement in the working conditions, training and development

and redressal of grievances of women employees.

 • ONGC undertakes socio-economic development activities in areas where it

operates as a part of its social responsibility. The activities include grants-

in-aide to government agencies, educational institutes and voluntary and

social welfare organizations.

• To promote sports at National & International Level. ONGC has been

sponsoring many international tournaments apart from inducting players of

National/International Caliber to represent India in International

Tournaments.

ENTERPRISE RESOURCE PLANNING AND NETWORKING

ONGC is focusing on integration of information – database, workflow and

operation processes – in areas of Exploration and Production, Finance, Material

Management and Human Resource and Corporate Management information

system. The company is focusing on setting up of team based structure,

streamlining of systems and leveraging on information technology to enable value

based decision making at all levels to maintain and enhance its profitability.

DIVERSIFICATION INITIATIVES

ONGC is actively pursuing its objectives in diversity in the related areas of its

business. As a result of equity swap with IOC and GAIL, the corporation has not

only formed along term strategic alliance in the down stream area but also has
gained closer access to the market besides creating the ability to undertake

integrated projects particularly in future overseas endeavors.

Products of ONGC

The various products of ONGC are

1) Crude Oil

2) NGL (Natural Gasoline)

3) LPG (Liquefied Petroleum Gas)

4) Ethane-Propane

5) Natural Gas

Crude oil and natural gas coming from the oil/gas wells are processed in Field

installations before its dispatch to main process plants at on-shore where it is

finally processed so as to meet the quality requirement of customers (refineries

in case of crude oil and power plants in case of natural gas). Value added

products are extracted from natural gas and condensates are then processed as

per the requirement of customers like BPCL and HPCL.

GEOGRAPHICAL SPREAD

The operations of ONGC span throughout the country starting from the

Himalayan Foot-hills in the north to the offshore of the Indian Ocean in the

south and Cambay basin in Gujarat and deserts in Rajasthan in the west to

sedimentary basins in Assam and Nag land in the east. For better functional

control, ONGC has divided the whole area under the operations injto six
regions. The headquarters of ONGC is situated at Dehradun and registered

office at New Delhi.

OVERSEAS OPERATIONS

ONGC,S overseas activities are looked after by its wholly owned subsidiary,

ONGC Videsh limited (OVL) At present OVL is operating in 16 countries of

the world such as Vietnam, Tunisia, Yemen, Egypt Myanmar, Sudan, Libya,

Brazil, Cuba Colombia etc.

Changes In Economic
Environment And its
Impact on ONGC
 CHAPTER NO 3

CHANGES IN ECONOMIC ENVIRONMENT

AND ITS IMPACT ON ONGC

THE BEGINNING

The year 1991-92 was a landmark year in the economic history of India. It was

a year when India has passed through the severest economic crisis since its

Independence. The BOP situation has deteriorated sharply. The foreign

currency reservoirs had fallen to an all time low level. The NRI,s were

withdrawing their funds at an alarming rate. There were no significant fresh

deposits from them. Inflation had soared to an annual rate of 17%, industrial

growth had menacingly fallen and over all economic growth had touched an all

low level of 1.1%. All this had resulted in a possibility of default in paying

foreign loans.

Besides these bottlenecks at home, the whole world was passing through the

unforeseen socio-economic changes during the period. Globalization and

Liberalization had become the buzzwords over the world.

The domestic compulsions and international scenario called for complete

overhaul of the economic policies and programmers in the country. The then

existing scenario in the country and the root cause of the problem in the Indian
economic policy were identified and best summarized in the words of he Prime

Minister.

“A bulk of Government regulations and controls on economic activity has

outlived their utility. Excessive controls have not bred corruption, but they

have come in the way of achieving our objectives of expanding employment

opportunities, reducing rural urban disparities and ensuring greater social

justice. India had much to learn from what is happening elsewhere in the

world. We find major economic transformation sweeping large countries in the

Eastern Europe. There is a change in outlook a change in mind set

everywhere. India too can not lag behind if she has to survive.

The policy changes, which the government embarked upon since July 1991,

can be broadly divided into two categories. The first set of measures taken for

the overhaul of economy of the country can be called as stabilization policy

and the second set of measures can be called as structural reforms. The former

aims at dealings medium and long term problems in the short run whereas the

later aims at dealings medium and long term problems of the economy. Both

policy measures are complementary to each other Structural reforms policies

can not succeed unless some level of stabilization is achieved at the same time,

stabilization can not be sustained unless structural reforms are undertaken.

These reforms had a great impact on the public sector undertakings, which in

general performed very poorly in fulfilling the financial and economic and

objectives for which they were created. PSU’s in general became non
 competitive, inefficient and loss making resulting in heavy burden on the sate

exchequer. Under the economic reforms budgetary support to PSU’s has been

slashed and they were expected to generate surplus resources. Move to

privatize few of the PSU’s has also been initiated with the government diluting

part of its equity share in these organizations.

The objectives behind this move were as follows:-

1. Budgetary relief

2. Increased efficiency

3. Greater resource generation

4. Improved business condition

5. Increased competition

6. Development of wider business ownership.

ONGC, a fortune 500 company and one of the exceptions to poor performing

PSU’s was also subjected to changes. The major impact of policy changes on

ONGC as follows:

1) CONVERSION OF ONGC FROM A COMMISSION TO

CORPORATION

The biggest impact of the ongoing economic reforms in the country on ONGC was

its conversion into a public limited company. In pursuance of the reforms, the

government appointed a committee headed by Shri P.K. Kaul to look into all the

aspects of ONGC’s existing organization structure and recommend it’s

restructuring, if required. The committee submitted its final report on 15

November 1992. Based on the recommendations of this committee, the

government decided in February 1993 to convert ONGC from Ist Feburary 1994

into a public limited company governed by the Companies Act 1956, like other

companies in the petroleum sector. The government also decided to dilute 20% of

its equity in the new company by offering expanded equity to public, mutual

funds, employees.

Accordingly a new company entitled Oil and Natural Gas Corporation Limited

(ONGC) was incorporated on 23rd June 1993 and it received the certificate of

commencement of business on 10th August 15, 1993. On 2nd July 1993 the

President of India promulgated and ordinance for transfer of the undertaking of

ONGC to this newly formed company. Both houses of Parliament passed Oil and

Natural Gas Commission (Transfer of Undertaking and Repeal bill in August

1993). The bill received the assent of the President of India on 4th September

1993.

On 1st February 1994 ONGC became Oil and Natural Gas Corporation, employees

of the ONGC became the employee of Oil and natural Gas Corporation Limited

from that day.

To arrive at the most appropriate capital structure and assess the business of the

new company, a consortium of finance consultants were appointed. Assignments

to these financial consultants included the following:

1) Valuation of hydrocarbon resources of ONGC.

 2) Recasting of accounts of ONGC as per laws including SEBI and

capital market practices and international accounting norms and as per

prescribed standards of international and capital market.

3) To suggest appropriate financial structure for ONGC, pricing of

shares and strategy for domestic and international issues.

2) LOSS OF NEAR MONOPOLY STATUS

There are four enterprises ONGC, ONGC Videsh Limited a subsidiary of

ONGC, Oil and Natural Gas Authority of India Limited operating in

exploration and production of oil and natural gas under the Ministry of

Petroleum, ONGC, with over 90% of oil production to its credits and fields of

operation spread over almost throughout the country’s on-land and offshore

petroliferious basins, enjoys the status of near monopoly. However would no

longer exist. Different blocks have been thrown open to private companies for

exploration and production. This will certainly bring in a number of

competitors in the country resulting in the loss of monopoly status of ONGC.

3) SLASHING OF BUDGETARY SUPPORT

Under the new economic policy of India, all PSU’s are expected to generate

resources for investment and budgetary support to these public sectors are

drastically out… ONGC is no exception to this policy. However, it has been

successful is mobilizing resources to meet the investment requirements.

4) INCREASED ACCOUNTABILITY AND RESPONSIBILITY

As the ONGC has entered the capital market, now it is a closely monitored

company by all in interested public. Listing prices of the script will totally

depend on the its performance and profitability. Even through it is a public

limited company, with the government having major holding in its equity, it

will be subjected to policy changes. ONGC, on one hand, will be responsible

and accountable to stakeholders, and on other hand, it will have to carry

forward social and political responsibilities undertaken by the government.

ONGC has to judiciously balance the social and political responsibilities.

 FRESH MEASURES
NEW EXPLORATION LICENSING POLICY (NELP)

In order to attract new technologies to increase the domestic oil production, the

government has thrown open the oil fields to the domestic private sector,

multinationals and joint venture companies, a policy proclamation towards

which the content of the New Exploration Licencing Policy.

The salient features of (NELP)

1. NELP offers 100% equity participation by private parties. No mandatory

state participation through ONGC and Oil State companies can bid directly.

2. ONGC and Oil to complete for obtaining petroleum license (PELS) on

competitive basis just like any other company in the race.

3. Companies including ONGC/OIC to paid international price of oil for

discoveries made in the blocks offered under (NELP).

4. ONGC and OIL to provided a level a playing field by providing them the

same fiscal and contract terms as available to private companies.

5. NELP offers more concessions for exploration in deep water areas beyond

200 mt depth.
 Performance

Appraisal Practices In

ONGC
 CHAPTER NO. 4

PERFORMANCE APPRAISAL PRACTICES IN ONGC

Not only had India ……. Set up own machinery for oil exploration and

exploitation ……an efficient oil commission had been built where a

large number of bright young men and women had been trained and

they were doing good work:.

Pandit Jawahalal, India’s first prime Minister to Lord Mountbatten, on

ONGC 1999.

Today ONGC is the flagship company of India, and making this possible is a

dedicated team of nearly 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, everbody matters,

every souls counts.

ONGC has a unique distinction of being a company within house service

capabilities in all activity areas of exploration and production and production of oil

and gas related oil field services.

Needless to emphasize, this was made possible by the men and woman behind the

machine.

Over 18000 experience and technical competent executives mostly scientist and

engineers from distinguish universities / institutions of India and abroad from the
core of manpower. This includes geologists, geochemists, drilling engineers,

reservoir engineers, petroleum engineers, technical service providers, financial and

human resource experts, IT professionals and so on.

HR VISION, MISSION AND OBJECTIVES

HR VISION

“To attain organizational excellence by development 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 development of an expowered, responsive and

competent human capital”.

HR OBJECTIVE

• To develop and sustain core values

• To provide Job contentment through empowering, accountability and

responsibility.

• To develop business leaders for tomorrow.

• To build and upgrade competencies through virtual , opportunities for

growth and providing challenges in job.

 • To foster a climate of creativity, innovation and enthusiasm.

• To enhance the quality of life of employees and their family.

• To inculcate high understanding of service to a greater cause.

HR STRATEGIES

• To meet challenging demands of the business environment, focus of the HR

Strategy is on change of the employee’s ‘mindset’.

• 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.

• Including a spirit of learning and enjoying challenges.

• Developing Human Resource through virtual learning , providing

opportunities for growth , inculcating involvement and exposure to

benchmarking in performance.

ROLE OF HR

• Alignment of HR vision with corporate vision.

• Shift from support group to strategic partner in business operations.

 • Enhance productivity and performance by development employee

competency and potential.

• Development professional attitude and approach.

• Developing “Global Managers” for tomorrow to ensure the role of global

players.

A MOTIVATED TEAM

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 in built systems to recognize and reward them periodically.

Motivation plays and important role in HR development. In order to keep its

employees motivated the company has incorporated schemes such as Reward and

Recognition Scheme, Grievence Handling Scheme and Suggestion Scheme.

• Incentive scheme to Enhance Productivity.

• Productivity Honorarium Scheme

• Job incentive

• Quarterly Incentive

• Reserve Establishment Honorarium

• Roll out of Succession Planning Model for identified key positions.

• Group incentives for cohesive team working, with a view to enhance

productivity.
 TRAINING AND DEVELOPMENT

An integral of ONGC’s employee-centered policies is its thrust on their

knowledge up gradation and development. The institute of Management

Development, which has an ISO 9001 certification, along with 7 other training

institute, play a key role in keeping our workforce at pace with global standards.

The institute of Management is the premier nodal agency responsible for

developing the human resource of ONGC. It also focus on marketing its HRD

expertise in the field of exploration & production of Hydrocarbons. ONGC’s

sports Promotion Board, the apex body, has a comprehensive Sports Policy

through which top honors in sports at national and international level have been

achieved.
PAR section in ONGC
 CHAPTER NO. 5

PERFORMANCE APPRAISAL IN ONGC

In ONGC, the concerning rules are called employee performance appraisal rules

in 1995.

The performance appraisal system in ONGC seeks to evaluate

 The work performance of an employee on the present job relation to the

expected level of performance, both qualitative and quantitative.

 The extent of development achieved be the employee during the period

under review.

 Evaluation of behavioral attributes attitudes and abilities.

 Evaluation of potential for assuming higher responsibilities.

TITLE

These rules will be called oil and Natural Gas Corporation Ltd, Executive

Performance Appraisal rules 1995.

APPLICATION

These rules shall apply to all executives in E1 to E6 grades, belonging to different

cadres of ONGC including its subsidiaries and associated offices, if any. All

executives on deputation to ONGC will also governed by these rules.

DEFINITION OF EXECTIVE
An executive is a person employed under the authority of ONGC in any of the

executive grades E1 and above but shall not include Directors of any other person

appointed by the president of India, for any of the offices in ONGC or its

subsidiaries and associated officers.

APPRAISAL YEAR

The appraisal period is 12 months of financial year between 1st April of a year to

the 31st March of the succeeding year.

APPRAISEE

An appraisee is an executive who has worked under the direct control and

supervision of other executive for a minimum period of 4 months within time span

of 1st April 31st March (12 months) in appraisal year.

APPREISERS

There are two levels of appraisers

The first appraiser also called reporting Authority, means and executive under

whose direct control and supervision the appraisee operates. In case of second

appraisee, immediate functional senior executive (who may be equal in status of 1st

appraiser) could be the joint Appraiser with the Reporting Authority, and he would

only record whether or not he agrees with the observation of the first Appraiser.

ACCEPTING AUTHORITY
A very senior officer who is designated under the roles of re-looks at the

performance of the appraisee, and reviews the observations of the first and the

second appraisers. He would finally determine and evaluate the performance of the

Appraisers. In case of disparity between his assessment and that of the first and

second appraisers, he has to record specifically his comments in case of overall

performance grading A+ to D and low score for personality traits by either of the

earlier two Appraisers.

APPELLATE AUTHORITY

Project General Manager, Regional Directors, Group General Manager and

Company Directory and Chairman-Cum Managing Director would be Appellate

authority to take the decisions on representations of different level of appraisee

executives. They would also take the final decisions on the evaluation of the

performance of the appraisee in special cases.

Roles and Responsibilities of the Reporting Authority

The overall performance classification in grades is to be determined by

a) examining both a performance

b) personality of the appraisee

The parameter of this task are listed in part 2 of the par formant in blocks

A,B,C,D,E and F

In evaluating performance (block A) due consideration is to be given to the

benchmark indicate therein and one numerical block only is to be ticked.

In respect of the personality trait in block B,D,C,E and F only the numerical block

is to be ticked after considering the benchmarks indicated therein.

Special Comments by Reviewing Office

After the detailed analysis of performance/ personality traits by the Reporting

office, the Reviewing officer is required to officer the special comments (no

numerical values in respect of few special items like integrity, professional

potential for growth and like, specific areas functions for potential growth

mentioned.

Overall Assessment by Accepting Authority

The Accepting Authority will minutely examine the observation made by the first

appraiser and reviewing authority and also self appraisal, and taking due

consideration of all the a spects, determine overall grade and also comment on the

total performance.

THE GRADING SYSTEM

The grading system in ONGC is based on “Graphic Rating Scale” method of

performance appraisal. It perhaps the most commonly used method. Under this

method a printed form is used to evaluate the performance of the employee. A

variety of traits may be used in these types of rating devices, the most common

being the quality and quantity of work.

In ONGC performance appraisal form a block numerical values have been

assigned to assist the first appraiser in making overall assessment. The overall
total score for determining a grade is merely a guide and the final grade may be at

variance with the total score. The second appraiser i.e. the interviewing Authority

and the accepting Authority have to take an overall view, both of the performance

and the personality of the appraise, while determining the “Final Grading”. The

accepting authority arrives at the final grading by judiciously weighing the

assessment of Reviewing Authority which may belong to functional discipline of

the appraisee along with the detailed assessment of the Reporting Authority.

The overall rating grades in respect of the appraisals would be under

A+ 95 & above

A 85-64

A- 75-85

B+ 65-74

B 55-64

C 45-54

D less then 45

The final grade given by the accepting Authority after detailed and due

consideration to the rating by the 1st and 2nd appraisee executive.

MODERATION
This means re-evaluation of the PAR of the appraisee and the grade awarded by

the accepting authority to correct any observations. The head of the personal

department at the region i.e. GM (HR) will reviewed the PARS of the executives

up to E-3 level and advice of the regional director for moderation if required on

the bases of analysis of reports. The regional director in consultation with the

functional head (which has to be recorded in PAR) will have authority to moderate

PAR as under.

All pars which are grade A+ to D

Cases referred to as General Manager (HR) of the regions, on the basis of

monitoring \.

The moderation is based on forced distribution method “of performance appraisal.

Under this system , the rate is asked to appraise the employee according to

predetermined distribution scale.

The reter’s bias is sought to be eliminated here because worker are not at a higher

or lower end of the scale.

The designated authority for moderation has special responsibility to ensure that

by and largev, the final grading of PARS of executives (E1 to E6) of various

disciplines confirm to board pattern as below:

A+ 10%

A 40%

A- 10%

B+ 10%
B 10%

C 10%

D 10%

Current Initiatives of
PAR System In
ONGC
 CURRENT INITIATIVES OF PERFORMANCE APPRAISAL
SYSTEM IN ONGC

Implementation of E Par

(IT – Enabled Performance Appraisal Report)

As is advantageous for a par system such as;

• Streamlining of PAR process

• Uniform application of company policy

• Authenticity and audit trial of transactions

• Availability of online information

System monitoring mechanism and control Cutting down on delay and fixing of

responsibility/accountability in delay which helps in faster decision making on

issues such as promotions.

In view of this benefit, it was decided to implement IT enable PAR system in

ONGC w.e.f. assessment year 2008-2009, initially for the year E1 – E6 level

executives, later to be ruled out in other phases to other level.

INCORPORATION OF PAR BASED 3600 EVALUATION

(A+ CONCEPT LEVEL)

The (3600) feedback involves collecting perception about a person’s behavior and

impact of the behavior from the person’s boss or bosses direct reports, colleagues,
fellow members of project teams, internal and external, customers, suppliers.

Other names for 3600 feedback are multi-rater feedback, full circle appraisal and

group performance review.

In order for an organization to be ready for an effective 3600 feedback, a number of

question need to be answered. The effectiveness of the feedback if directly linked

to the integrity of the process, and the integrity of the process is measured in terms

of commitment, clearly of purpose and follows up.

A 3600 feedback is recommended for accomplishing a detailed plan to address

these issues to prior implementation.

At present in ONGC, this is the concept level and efforts are being made to use it

effectively for attaining the overall goals of the organization.

Data Analysis

And

Interpretation
1. Performance Appraisal system in an important tool to evaluate performance

of employee in ONGC.

Scaling Strongly agree Agree Natural Disagree Strongly disagree

Percentage 65.9 29.54 0 4.56 0

INTERPRETATION: This chart shows that most of the employees think that
performance appraisal for the organization is an important tool. Some are partially
agree and some disagree too.

2. The objective of appraisal system are clear to all employees.

Scaling Strongly agree Agree Natural Disagree Strongly disagree
Percentage 59.8 30.6 5.4 4.2 0

INTERPRETATION: This chart that objective of performance appraisal are clear

to most of the employees some agree and some disagree.

3. The appraisal in ONGC ensures that every individual is clearly aware about its
function and responsibilities.
Scaling Strongly agree Agree Natural Disagree Strongly disagree
Percentage 11 23 29 28 9

INTERPPETATION: Surprisingly 37% of the respondents ware at loss about how

PA format in ONGC ensure roles, clarity and responsibility

4. The performance appraisal system in ONGC provides a platform for identifying

training needs of employees

Scaling Strongly agree Agree Natural Disagree Strongly disagree

Percentage 45.49 20.45 20.45 13.63 0
INTERPRETATION: Nearly, 45.45% of employees are agreed upon this
statement as it is and effective tool for identifying needs also. But some are also
disagreeing and netural.

5. In ONGC, the counseling is satisfactorily done to judge low performance and to

improve his/her performance

Scaling Strongly agree Agree Natural Disagree Strongly disagree

Percentage 13.63 2.5 18.18 38.63 4.54
INTERPRETATION: Here in this statement nearly 38.63% of employees are
disagreeing that the counseling is not satisfactorily done for low performer.

6. Most of the training program are initiated after a need analysis has that the
program is needed.

Scaling Strongly agree Agree Natural Disagree Strongly disagree

Percentage 8 14 12 48 18
INTERPRETATION: Though there exist adequate budgetary support for
organizing quality training and development program for the development of
executive yet the entire exercise lacks and direction.

7. In ONGC the present performance appraisal system is able to focus on

personality trait of employees for better performance,\.

Scaling Strongly agree Agree Natural Disagree Strongly disagree

Percentage 13.63 2.5 18.18 38.63 4.54
INTERPRETATION: Most of the employees on this statement are disagree that
present PA formal is able to improve personality traits of employees for better
performance.

8. Promotion is the main objective of performance appraisal in ONGC

Scaling Strongly agree Agree Natural Disagree Strongly disagree

Percentage .45 43.18 4.54 6.81 0
INTERPRETATION: In this question 45.45 percent of employees are agree and
43.18 percent of employees are partially agree whereas 6.81 percent are disagree
are disagree too. And a percent of 4.54 have not shown any view.

9. Promotion and rewards are a major factor in influencing performance if

administered objectively

Scaling Strongly agree Agree Natural Disagree Strongly disagree

Percentage 25 43 11 19 2
INTERPRATATION: As there exists the concepts of both bound and merit
promotion in ONGC while majority respondents strongly take promotion and
reward as a major factor in influencing performance.

10. Performance appraisal is carried out to assess the potential of employees to

assign higher responsibility task.

Scaling Strongly agree Agree Natural Disagree Strongly disagree

Percentage 17 40 28 12 3
Interpretation while half of the respondents appreciate the need for having
potential in ONGC and other respondents do not understand its rational and
implication for growth

11. Does the potential appraised help in succession planning in ONGC

yes No
Percentage 63.4 36.6
Interpretation most of the employees are partially agreed for this statement that
means PAR system partially help in succession planning.

12. Succession planning is implement on the basis of feedback through potential

appraisal

Scaling Strongly agree Agree Natural Disagree Strongly disagree

Percentage 12 32 30 11 6
Interpretation mostly the employees remain neutral for the succession planning
should be implemented on the bases of PAWI while 32 of them remain agree with
the statement.

13. There should be potential appraisal once in a year and information should be
given to employees about their future prospects

Scaling Strongly agree Agree Natural Disagree Strongly disagree

Percentage 20 37 15 20 8
Interpretation A sizable majority is for having PA in ONGC once in three years to
inform the employees about their likely future growth.

14. The performance system strengthen the relationship between superior and
subordinate for better performance

Scaling Strongly agree Agree Natural Disagree Strongly disagree

Percentage 19 26 34 12 9
Interpretation Most of the employees remain about the relationship about the
relationship subordinate and superior for better performance while 26 percent
agree with the statement.

15. The appraisal system encourages open communication between each appraiser
and appraisee through performance review.

Scaling Strongly agree Agree Natural Disagree Strongly disagree

Percentage 10 25 15 42 8
Interpretation A comparatively large segment of respondents disagree that
appraisal system encourages open communication between each appraisee through
reviews.

16. The appraisal system encourages the appraiser to have common understanding
of all factors (individual organizational & environmental) affecting the
performance of the appraisee

Scaling Strongly agree Agree Natural Disagree Strongly disagree

Percentage 11 15 39 19 26
Interpretation A comparatively remains neutral with the above question while 26
of employees arestrongly disagree with the statement.

17. There should be potential once in a year and information should b given to
employee about their future prospects

Scaling Strongly agree Agree Natural Disagree Strongly disagree

Percentage 20 37 15 20 8
Interpretation A sizable majority is for having PA in ONGC once in three years to
inform the employee about their likely future growth.

18. Performance Appraisal in ONGC from basis for the human competencies.

Scaling Strongly agree Agree Natural Disagree Strongly disagree

Percentage 15.4 45.6 26 7 6
Interpretation Mostly the employee agree with the human competencies in the
performance system in ONGC while partially remain neural and others remain
disagree.

19. There is a need for further upgradation of performance appraisal format which
address the development needs of the employees.

Scaling Strongly agree Agree Natural Disagree Strongly disagree

Percentage 15 30 16.6 22 13.8
Interpretation A significant chink of employees subscribe to the view that PAR in
ONGC needs up gradation to meet the development needs of the employees

What are the areas where this organization needs to improve for the appraisal
system for more continuous development of employee and building strong
relationship?

Yes 52%
No 28%
 No response 20%

Interpretation : It was seem that majority of respondents does not reply hence
some of them said that for a good working organization environment there must be
presence of values like openness, enthusiasm, mutual trust, and collaboration.
ONGC need to conduct job analysis/role analysis exercises to rationalize in
HR apparatus.
And also, identify the job content in terms of duties responsibilities
methods, techniques and system procedures.
Limitations
 LIMITATIONS

1- Since ONGC is a multi-disciplinary and multi work centre

organization (Scattered all over the country) it becomes very

difficult to include employees form all the disciplines, all over the

work centres and all the levels in the study. However, attempt

has been made to include persons of different disciplines and

different levels working in ONGC, Dehradun.

2- Though this is the case of judgment sampling, there is a

possibility that the respondents might have responded in a

casual and random manner.

3- Since the sample size is too small comprising of 100df

respondents for a vast organization of 40,000 employees the

data may not be true representative of the actual scenario and

responses may be indicative of the local situation.

Conclusion
 CONCLUSION

• Performance Appraisal system needs total revamping and

reorientation in view of changing business competitive

environment and should recast on professional lines. PAR

needs to use as a real development tool for employees who

identifies their development needs for helping them perform

their work more efficiently and effectively leading to greater

organizational productively. Currently, the PAR system is used

more as a paper work, then as a tool for improving efficiency of

the individual.

• Indiscriminate promotions in ONGC have resulted in inversion

of conventionally accepted pyramid structure manpower. Only

need based promotions with adequate transparency and well

defined long term policy is the need of the hour. Reward

administration needs strengthening as an efficient HRD tool to

motivate real performers for others to emulate and it must be

linked with performance appraisal system.

• The concept of potential may be experimented within ONGC to

identify executive with higher potential to assume higher

 organizational responsibilities and the process may be carried

out once in three years.

• Human resources fully committed to any change and to

continue the process of change in the organization as per

requirement of the changing environment along with the

technologically manpower with various standards of

competitiveness is need of the time in ONGC. People should be

dynamic, capable of assuming responsibility and adaptable to

change. In a competitive environment like the present one

should be well prepared, plan the act according to well laid out

strategy and adapt to the requirement and demands of the

situation of develop competencies like job related skills and

knowledge so that they contribute to their fullest to the

organizational efficiency and be able to cope with the pressure

changing environment.
Suggestion
 SUGGESTION

• Based on the study the following suggestions are being made

to strengthen the presence PAS in ONGC for improving the

performance efficacy of its human resources which are vital

elements for achieving the objectives and targets in the

competitive and dynamic environment.

• Performance Appraisal format needs up gradation and should

identify the development needs of the employees. It should be

made both evaluative and development oriented in nature.

• Counseling should be taken seriously by appraisee and

appraiser and it should be done more frequently to attain the

development goal of PAR system.

• Globalization and liberalization in India is al comparatively

recent phenomenon so most of the industries are not well

equipped to face the challenges of changing environment and

 building a competitive edge. Specific training programmes are

to be designed and development for inculcating such skills in

the employees.

• Training p rogrammes on organization development should be

organized at all levels and specific thrust on productively

improvement and cost techniques shall be placed in training

progremmes. There should be a consistent policy regarding the

training and the need should be considered seriously as per

the recommendation in the PAR form.

• Periodic organizational diagnoses survey need to be carried out

to asses the organization health and to suggest remedial

measures in case of any observed organization pathology.

• Accountability and fixing of responsibility is one area in ONGC

that is week and needs special consideration. Single point

responsibility and accountability need be defined and fixed

unambiguously.

• Develop a cultural system where things do not move on the

basis of bureaucratic definitions or boundaries but on

operational priorities for improving the productivity of ONGC.

 BIBLIOGRAPHY

Books Referred

1- HR Vision 2005 (ONGC) HRM Corporate Journal

2- ONGC Quarterly in house Journal on HR.

3- The story of ONGC by I.A. Farooqi

4- Practical Performance appraisal by Gower press.

WEBLIOGRAPHY

Websites Visited

www.ongcindia.con

www.ongcreports.com
Bibligoraphy
Annexure
 QUESTIONNAIRE

NAME(OPTIONAL):-
DESIGNATION :-
LENGTH OF SERVICE :-

1- Performance Appraisal System is an important tool to evaluate

performance of employees in ONGC.

1. Strongly Agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

2. The objective of appraisal system are clear to all employees

1. Strongly Agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

3. The appraisal system in ONGC ensures that every individual is cleatly

aware about its functions and responsibilities.

1. Strongly Agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

4. The performance appraisal system in ONGC provides a platform for

identifying training needs of employees.

1. Strongly Agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree
5. In ONGC the counseling is satisfactorily done to judge low performance

and to improve his/her performance.

1. Strongly Agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

6. Most of the training program are initiated after a need analysis has

indicated that the program is needed.

1. Strongly Agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

7. In ONGC \, the present performance appraisal system is able to focus on

personality trait of employees for better performance.

1. Strongly Agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

8. Promotion is the main objective of performance appraisal in ONCG

1. Strongly Agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

9. Promotion and rewards are a major factor in influencing performance if

administered objectively.

1. Strongly Agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree
10. Performance appraisal is carried out to assess the potential of employees

to assign higher responsibility and more task.

1. Strongly Agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

11. Dose the potential appraisal help in succession planning in ONGC

1. Yes 2. No.

12. Succession planning is implemented on the basis of feedback through

potential appraisal.

1. Strongly Agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

13. There should be potential appraisal once in a year and information

should be given to employees about their future prospects

1. Strongly Agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

14. The performance appraisal system strengthen the relationship between

superior and subordinate for better performance

1. Strongly Agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

15. The appraisal system encourages open communication between each

appraiser and appraisee through performance review.

1. Strongly Agree 2. Agree 3. Neutral 4. Disagree
5. Strongly Disagree

16. The appraisal system encourages the appraiser to have common

understanding of all the factors (individual, organizational & environmental)

affecting the performance of the appraisee

1. Strongly Agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

17. Appraisal system facilities growth and learning in the organization both

for appraiser and appraisee

1. Strongly Agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

18. Performance appraisal in ONGC form basis for the human competencies.

1. Strongly Agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree

19. There is a need for further upgradation of performance appraisal format

which address the development needs of the employees.

1. Strongly Agree 2. Agree 3. Neutral 4. Disagree

5. Strongly Disagree
20 What are the areas where this organization needs to improve for the

appraisal system for more continuous development of employee and

building a strong relationship ?