Post on 03-Feb-2023
CHAPTER 1
INTRODUCTION
1.1.INTRODUCING THE ORGANIZATION
The Oil & Gas Development Company Limited (OGDCL) was
created under an Ordinance in 1961, to undertake
comprehensive exploratory programme and promote Pakistan’s
oil and gas prospects. In 1997, it was converted into a
Public Limited Company and is now governed by the Companies
Ordinance 1984.
Development of the organization
With a balanced, efficient and competitive structure, OGDCL
explores and exploits indigenous resources for optimum
production of oil and gas, besides seeking opportunities
abroad. OGDCL has the largest acreage position in Pakistan
and currently operates 17 exploration concessions and holds
non –operated working interest in another 7 exploration
concessions. In addition OGDCL has 35 Mining and Development1
& Production Leases, which are operated by it besides having
working interest ownership in 28 non-operated Mining and
Development & Production Leases, OGDCL has an extensive
database. Services of the Company’s highly qualified and
skilled expertise in the fields of geology and geophysics
are frequently availed y the local and foreign oil
companies. It also leases out its drilling rigs to the
private sector and carries out seismic surveys and data
processing on contract for these companies on extremely
competitive rates. OGDCL now holds the largest shares of oil
and gas reserves in the country, i.e. 48% of total oil and
37% of total gas reserves. Its percentage share of the total
oil and gas production in Pakistan is 34% and 28%
respectively. On the basis of its activities since
inception, the company has until June 30, 2003 and made 59
discoveries with a success ratio of 1:3. OGDCL’s updated
estimates for remaining recoverable oil and gas reserves as
on 1st July, 2003, stood at 9.228 billion standard cubic
feet (BSCF) of gas and 164.25 million barrels of oil
including company’s share in non – operated Joint Ventures.
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During the last 52 years OGDCL has grown into a technically
and commercially viable organization.
VISION
“To be a leading, regional Pakistani E & P Company,
recognized for its people, partnerships and performance”.
MISSION “ Our mission is to become a competitive, dynamic
and growing E & P Company, rapidly enhancing our reserves
through world class workforce, best management practices and
technology and maximizing returns to all stakeholders by
capturing high value business opportunities within the
country and abroad, while being a responsible corporate
citizen”.
CORE VALUES
Merit Integrity Team Work Safety Dedication
Innovation
1.1. OBJECTIVES FOR STUDYING THE ORGANIZATION
Since my area of specialization is “Human Resources”, the
organization I have chosen this organization for my
internship program which is mandatory for requirement of3
degree. OGDCL is major Oil & Gas Company of Pakistan having
Head Office in Islamabad. The company is engaged in
Exploration, Drilling and Production of Oil & Gas resources
through-out Pakistan
My aim for joining this organization was to understand the
internal organizational set up and to learn how the HR
practices are carried out in the organization. The
objectives were to Know about organizational culture and
practical scenario of HR functions such as Recruitment,
selection, training and development and promotions and
compensation management of employees, to get experience
about Organizational functions / activities, structure,
working environment, leadership, motivations, training and
management of the human resources for analyzing the overall
organizational efficiency and effectiveness and to measure
the organizational performance.
The salient objectives of studying OGDCL are as follows:-
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To Analyze HR planning, hiring process and how all the
functions of Human Resource Management are carried out
in the organization.
To see how strategic decisions are made in a practical
setting.
To observe the task and authority relationship,
existing in the organization.
To relate the theoretical concepts with the practical
framework for gaining practical exposure.
To analyze the structure of the Human Resources
department with respect to number of employees and HRIS
operations.
To study the overall structure of organization.
1.2. OVERVIEW OF THE ORGANIZATION
Prior to OGDCL's emergence, exploration activities in the
country were carried out by Pakistan Petroleum Ltd. (PPL)
and Pakistan Oilfields Ltd. (POL). In 1952, PPL discovered a
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giant gas field at Sui in Balochistan. This discovery
generated immense interest in exploration and five major
foreign oil companies entered into concession agreements
with the Government.
During the 1950s, these companies carried out extensive
geological and geophysical surveys and drilled 240
exploratory wells. As a result, a few small gas fields were
discovered. Despite these gas discoveries, exploration
activity after having reached its peak in mid-1950s,
declined in the late fifties. Private Companies whose main
objective was to earn profit were not interested in
developing the gas discoveries especially when
infrastructure and demand for gas was non-existent. With
exploration activity at its lowest ebb several foreign
exploration contracting companies terminated their operation
and either reduced or relinquished land holdings in 1961.
ESTABLISHMENT OF OGDC
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Oil and Gas Development Company (OGDC) was initially created
under an Ordinance dated 20th September 1961 in 1961, as
public sector Corporation. The corporation was charged with
responsibility to undertake a well thought out and
systematic exploratory program and to plan and promote
Pakistan’s oil and gas prospects. A number of donor agencies
such as the World Bank, Canadian International Development
agency (CIDA) and the Asian Development Bank provided
assistance for major development projects in the form of
loans and grants. Major oil and gas discoveries in the
Eighties give the company a measure of financial
independence.
SOCIAL RESPONSIBILITY
The company endeavors to be a responsible corporate citizen
of the E&P community. Being fully aware of its social
obligations, it continues to proactively promote, develop
and maintain medical, social and welfare facilities and
schemes for the benefit of the local communities affected by
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its work and presence. These include employment
opportunities for locals, construction of roads.
In perspective of occupational health and safety standards,
the company has designated HSE rules and regulations and
those are being implemented properly with the supervision of
safety specialists to avoid the accidents on the fields.
1.3.PERFORMANCE ANALYSIS OF THE COMPANY
Oil and Gas Development Company Limited (OGDCL) was
established in 1961. OGDCL is major Oil & Gas Company of
Pakistan having Head Office in Islamabad. The company is
engaged in Exploration, Drilling and Production of Oil & Gas
resources through-out Pakistan and the flagship of the
country’s E&P sector. The Company is the local market leader
in terms of reserves, production and acreage.
MAJOR ACTIVITIES
Exploration & Development of Oil & Gas Resources within the
country including off-shore, Wells Drilled up to up to 31-
07-2013:
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Exploratory Wells 287
Appraisal Wells and Development wells 397
Discoveries (up to 31-07-2013) 97
MAJOR OIL & GAS FIELDS
Chanda, Tando Alam, Thora, Sono, Bobi, Pasaki, Lashari,
Toot, Chak Naurang, Fimkasar, Dakhni, Sadkal, Rajian, Missa
Kiswal, Kal, Dhodak, Missan, Loti, Qadirpur, Nandpur, Uch,
Daru, Kunnar, Palli and Pirkoh.
MAJOR CONCESSIONS
Jandran, Dudial, Shahana Fateh Jang, Rachna,
Saruna, Zamurdan, Kotra, Zin, Bitrisim, Tando Allah Yar,
Nim, Sinjhoro, Gurgalot, Khewari, Nashpa Siahan, Indus
Delta-A Bitrism, Bagh, Kohlu & Kalchas.
MAJOR PRODUCTS
Crude Oil, Gas, Liquefied Petroleum Gas (LPG), Naphtha,
Solvent Oil, Kerosene Oil, High Speed Diesel Oil and
Sulphur.
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MAIN OFFICES
OGDCL Head Office is situated at Jinnah Avenue, Blue Area
Islamabad and Regional Offices are located in Karachi and
Multan. Besides this OGDCL has its Liaison Offices in
Hyderabad, Sukkur, and Quetta for operational activities.
A Board of Directors comprising twelve Directors, all of
whom are nominated by the Ministry of Petroleum and Natural
Resources, is responsible for policy related issues. The
autonomous Board is headed by a non-executive Chairman and
there is a Managing Director/Chief Executive Officer.
Following are the main offices located throughout Pakistan:
1. OGDCL Head Office, Jinnah Avenue Islamabad, 2. OGDCL Regional Office,
Shafi Chamber, Karachi, 3. OGDCL Regional Office, Multan, 4. OGDCL Liaison
Office, Quetta, 5. OGDCL Liaison Office, Sukkur, 6. OGDCL West Wharf Office,
Karachi, 7. OGDCL Base Store, Islamabad, 8. OGDCL Base Store, Khadeji,
Karachi, 9. OGDCL Base Store, Korangi 10. OGDCL Base Store, Kot Addu, 11.
OGDCL Base Store, Kot Sarang, 12. Medical Centers, Islamabad, Rawalpindi
& Karachi, 13. OGDCL Workshops, Islamabad and 14. Oil & Gas Training
Institute, Islamabad.10
1.4.DEPARTMENTENTAL STRUCTURE
OGDCL departments can be divided into three broad
categories:
Corporate
Exploration & Production (E& P)
Technical Services
CORPORATE DEPARTMENTS
1. Administration Department
2. HR – Human Resources
3. HRD - Human Resources Development
4. Legal Services Department
5. MD Secretariat
6. Medical Department
7. Communication Department
8. Supply Chain Management Department
9. Finance & Accounts Department
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10. Internal Audit Department
11. Strategic Business Planning Department
12. Commercial Department
13. Systems Support
14. Material Management
15. Company – Board Secretariat
16. Regulation – Policy Department
17. Petro Research & Training Institute
18. Joint Venture & Business Development
19. Health Safety Environment & Quality (HSEQ)
Department
EXPLORATION & PRODUCTION DEPARTMENTS
1. Exploration Prospect Generation Department
2. Exploration Studies & Research Department
3. Projects Department
4. Reservoir Management Department
5. Production Department
6. Plant Operations - Process Department
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TECHNICAL SERVICES DEPARTMENTS
1. Geological Well Supervision Department
2. Geological Services Department
3. Drilling & Allied Services Department
4. Construction & Engineering Support Services
Department Workshops
5. Petroserve - Data Logging Department
6. Petroserve - Wire line Logging Department
7. Petroserve – SCM Department
8. Petroserve - Drilling Department
9. Petroserve - Geophysical Department
1.5.HUMAN RESOURCE DEPARTMENT
Human Resources Department has been playing marvelous role
in the development of the OGDCL. OGDCL has acquired the
services of highly qualified professionals like MBAs MPAs,
MSC’s, MALLB and M.com for its Human Resources Department.
Human Resources Department is directly under the
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administrative control of Executive Director Human
Resources. The Executive Director (Human Resources) heads
the Human Resources Department. General Manager (Human
Resources), General Manager (CB & IR) assist the Executive
Director (Human Resources for effective and efficient
controlling of OGDCL HR practices. Then there are Managers
and below Managers there is a chain of Chief, Deputy Chief,
Senior Human Resource Officer, Human Resource Officer,
Assistant Human Resource Officer and then staff members
1.6.FUTURE PROSPECTS OF OGDCL
The operational achievements of the company are driven by
its strategies of adding oil and gas reserves through
accelerating exploration, early development of newly
discovered fields and strengthening of oil and gas
production base. The company is committed to its strategies,
which has enabled us to evolve and grow into what we are
today and has served us well in addressing the challenges
and uncertainties faced by volatile E&P industry. We are
confident that the Company has enough inbuilt resilience to
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weather this volatile industry. The Company recognizes that
having right strategies, the right management and the right
mindset and attitude is critical in setting the path ahead.
We firmly believe that integrity must never be compromised
and also believe that both results and the manner in which
those results are achieved matter these fundamental beliefs
and values form the backbone of our business approach.
CHAPTER 2
PERSONAL LEARNINGS AND EXPERIENCE LEARNED IN
THE ORGANIZATION
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2.1. PERSONAL LEARNING AND WORKING EXPERIENCE OF 1ST
WEEK
1st week of my internship at OGDCL in Human resources
department started as when I joined OGDCL head office
Islamabad, first and foremost I visited the office of G.M
(HR) Mr. Khan Alam and he countersigned my letter and
forwarded to Manager HR and then he sent me to Departmental
coordinator officer Mr. Hasrat Hussain for allocation of
weeks as per schedule.HR Department of OGDCL consist of
following sections, which are mentioned below:
Recruitment Department (section)
Human Resources section
Human Resource Development (section)
Discipline Section
HRIS Section
HR Policy Section
In the very first week and 1st day of internship, I was
allocated In Human Resource Development section. This
section is managed by Manager HRD and functions of HRD are
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ACR Maintenance, Promotions, Organizational development, Training and
Development (Management Development and Technical), Management
continuity plan, Job Evaluation, Performance management, Career Planning and
Policy formulation.
Before this HRD was known by the name of CPC (Career
planning cell) but according to definitions given by some
HROs, HRD is concerned with promotions of officers and
staff, ACR and handling with legal and grievances cases.
The HRD section is based on four functional areas which are
mentioned below in detail and each area is performed by
concerned Human Resource Officer.
1. HRO (OFFICER PROMOTIONS) MR.IFTIKHAR AHMED
2. HRO (STAFF PROMOTIONS) MR. NAZIR AHMED
3. HRO (ACR AND LEGAL CASES) MR. NIAZ WALI KHAN KHATAK
4. HRO (GRIEVANCES) MR.TANVEER AHMED
These four HROs are supervised by Deputy Chief Officer MR
Iqbal Khan
At the 2nd day of my internship I visited the HRO (Officer
Promotions) Mr Iftikhar Ahmed, he told me about HRD setup
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and then he described his duties which are primarily
performed by him. He told me the complete process of
promotions of officers is based on following steps:
Information is gathered from concerned department and
then a list of capable (eligible) employees is prepared
according to their seniority cum fitness, then a case
of relevant employee in a file is sent to HRD
department.
The file is forwarded by concerned department to Human
resources Officer (officers Promotions) on this step
here he analyses and reads the given information
carefully.
The important factor which plays crucial role in the
promotions of officers that is ACR so HRO (officer
promotions) demands for ACR of employee form his/her
concerned department then DPC (Departmental promotions
committee) for further process and finally they make a
decision and then it is delivered.
At this stage an evaluation sheet (ACR Synopsis) is
attached with file in which required marks/scores for
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the promotion are described and then they evaluate the
performance of employees on the basis of this. The
important thing in Officer Promotions is that sometimes
officers are conducted test according to their cadre to
measure the performance and then they rate their
performance according to obtained scores by each
employee.
On 3rd day I was rotated to HRO (Staff Promotions) MR NAZIR
AHMED, He said that my prime duty is to manage and to handle
staff promotions. He told me that staff promotions are
included till 16 grades. He told me the process through
which promotions of staff are carried out. Process is based
on following steps:
Promotion case is forwarded to HRD by concerned
department
Seniority claim is viewed in this regard
Disciplinary clearance is demanded
ACR Synopsis is prepared
Finally evaluation sheet is attached with case.
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On 4th day He told me the basic components of promotions
criteria and their weight age would be as under:
1. Qualifications……………………………….………………………………………15%
2. ACRs…………………………………………..……………………….…………….25%
3. Seniority……………………………………………………………………….……..5%
4. Relevant experience(including outside experience)……………………….…..15%
5. Assessment by DPC……………………………..…………………………………..40%
Total 100%
He also gave me some views about classifications of job
groups; he said that job groups are created by management,
in consultation with CBA (combined bargaining agent) with
the approval of board of directors. The job groups are
classified under following categories for NMG (non-
management group) group I, II, III, IV, V and VI.
HRO (ACR) MR NIAZ WALI KHAN KHATAK
According to views of HRO MR NIAZ WALI KHAN KHATAK, ACR is
yardstick to measure the annual target and evaluation of
performance of employees in their relevant field. He said
that the ACR of employees is sent to me by their concerned
departments and HRD department and he said that we cannot
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make any change or any amendment in prepared ACR and I am
completely responsible for making ACR synopsis and preparing
evaluation sheet, the rest concerned department prepares the
ACR according to performance of employees. He showed the
original booklet through which performance of employees is
appraised and evaluated in which rating system of ACR is
mentioned:
RATING NUMBERS
TOTAL SCORES IN POINTS
Very Good 5 400-500 points
Good 4 301-399 points
Average 3 201-300 points
Below average 2 below 201
On the 5th day of internship HRO (Grievances) MR TANVEER
AHMED
He gave me brief over view about the grievances of redressed
of employees and showed me some cases and he gave me the
document which include on three sections which are mentioned
below:
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Grievances of the employee > Comments given by HRO grievances > finally
recommendation is given by HRO
Composition Of DPC (Departmental promotions committee) is
based on following officers such as E.D (finance), E.D
(Production), and G.M (HR (Operations) and E.D HR
2.2. PERSONAL LEARNING AND WORKING EXPERIENCE OF
2ND WEEK
On the 1st day of 2nd Week of internship I was allocated in
HR (Sections) by the coordinator of HR department for 2nd
week. On 1st day chief of HR sections told me that HR
sections are divided in following sections:
SECTION-A, SECTION -B, SECTION-C, SECTION-D, SECTION-E, SECTION-F and
SECTION-G
On the 2ND day of week I met with Chief HR Officer Mr.
Tanveer Anjum (CB&IR) who is the chief of two sections
(SECTION-E and SECTION-G) later he sent me to HRO (SECTION-
E) Mr.Shoukat Hayat khan, he gave me brief overview about
the SECTION-E and then he sent me to senior administrator
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Officer (SECTION-E) Mr. Javed Ahmed for complete
information. Mr Javed Ahmed told me that E- SECTION deals
with the distribution of personnel files of three
departments which are mentioned as under:
(1) EXPLORATION (2) ENGINEERING (3) COMMUNICATION
He told me that the personnel file of an employee include
all the concerned information of that employee from
appointment to retirement. The functions and benefits for
all sections are same. The benefits which are provided by
OGDCL to all employees (including officers an staff) are
mentioned following:
Fixation of Pay, Re-fixation of pay with promotions, Medical facilities, Maternity
charges, Scholarships to their children, Rent for house, Leaves, Transfers and
Annual increments
Mr. Javed Ahmed told me that Medical facilities are provided
by OGDCL as per following structure:
Parents will be provided the medical facilities
Sons of an employee will be provided till 22 years of age
Daughters will be provided till the marriage.
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NOTE: Rent expenses are provided as per following procedure:
60% of the salary is paid to officers and 82% of the
salary is provided to staff.
Leaves are also provided to all employees of OGDCL as per
following structure:
Casual leaves, Encashment/LAP-leave on average pay
(4days/month or 48days/year)
EOL-extra-ordinary leave (each leave is will be charged
equivalent to daily wage from his/her salary), Sick leave
(not for staff but only for officers), Iddat leave (4
months), Maternity leave (90 days), Disability leave (in
case of accident on the job), Leave on medical grant (few
days leave are granted upon the recommendations of higher
authorities) and Ex-Pakistan leave is granted to all
employees for performing umrah or Hajj.
On the same day I met with HRO (G-SECTION) Mr. Ghulam
Muhammad he told me that G-SECTION deals with the
distribution of personnel files of all employees who are
working in OGDCL in following categories such as, all types of
drivers, Security staff up to deputy chief And fire-fighters.
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On the 2ND day I met with Manager HR, Mr Haji Mukhtar Ahmed,
he sent me to HRO (F-SECTION) Mr Safiullah he told me that
F-SECTION deals with personnel files of chief, duty
managers, managers, general managers, executive directors
and Managing director or CEOs.
Mr Safiullah told me that functions and benefits for all
sections are same but there is bit difference in few
benefits for officers such as leave structure for officers
is as under:
10 days casual leave, 10 days sick leave and 1 earned leave after 15 working
days
Two increments are fixed and these are granted upon the
completion of 15 years and 25 years’ service Annual
increment is granted as per following criteria: CPI 11% of
basic salary and plus ACR Grading points.
Maximum………………………………………….………………… 15%
Very good………………..………………………………………… 7.4%
Good………….…………………………………………………… 6.6%
Average………..…………...…………………………………..… 5.6%
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On the 3RD day I met with (HRO B-SECTION) Syed Baddar Abbas
Rizvi he told me that B-SECTION deals with following
departments:
Accounts, Audits and store and procurements now called SCM (supply chain
management). Therefore B-SECTION deals with distribution of
personnel files of all those employees who work in mentioned
above departments. He further told me the grading structure
which is shown below:
NMG I---------------------------------------------------------------------NMG16 (All are staff)
EG I---------------------------------------------------------------------------EGV (All are officers)
EGV----------------------------------------------------------------Chief and above till M.D/CEO
Hence B-SECTION deals with staff and officers till EGV
grade.
On 4TH Day I visited the A-SECTION and met with HRO (A-
SECTION) Mr Umar Kamal, he sent me to senior administrator
Miss Shugfta Nawaz she told me that A-SECTION deals with
personnel files of administration including HROs, DCHROs,
superintendents, junior administrator, LDCs (lower division
clerks, Naib Qasid, Helpers, Record sorters, sanitary
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workers, barbers, washer men and medical staff (doctors,
nurses and vaccinators).
On the 5th day of week I visited the SECTION-C and met with
HRO (SECTION-C) Mr. Bakhtiar Khatak and Assistant HRO Mr.
Altaf Hussain, he told me that SECTION-C deals with P&P
(PROCESS AND PLANT). Moreover SECTION-C deals with personnel
files of all technical officers of P&P, All engineers and
lower staff of production department. He said that there are
30 plus departments in OGDCL related to P&P and 550 Officers
are working in this department. There are approximately 1900
files of staff of production department also dealt in this
department.
On the same day I met with HRO (D-SECTION) Mr. Muhammad
Naeem, he told me that D-SECTION deals with personnel files
of officers of only production department, drilling
operations, drilling services, well services, Rig
maintenance and logistics. There are 1700 personnel files
are dealt in this section. In the perspective of benefits
therefore benefits are same for all sections but here all
the technical personnel are provided with technical
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allowance the rest are same functions. What I leaned in
this week I observed that there was lack of discipline, red-
tapism and lack of skills to deal needed for their jobs.
2.3. PERSONAL LEARNING AND WORKING EXPERIENCE OF 3RD
WEEK
On the 1ST day I was allocated in Recruitment department of
HR department by in charge of recruitment department. He
sent me to HRO (Recruitment), Mr. Malik Javed Iqbal Awan he
said that manpower is the biggest asset for OGDCL. He said
that our first priority is to recruit the right person at
the right job at right time therefore we pick the suitable
person through formal procedure. He further told me the
Recruitment process which is carried out in the recruitment
and selection of employees in OGDCL.
He said that there are many departments of OGDCL and
sections which are called HR- sections of HR department.
Suppose that HR section-E which is concerned with
Exploration and engineering department this section
identifies the necessity of manpower suppose 5 positions are
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vacant for the posts of Production engineers, now this
department will contact with HR Recruitment department for
the requisition, this information will be sent to M.D/C.E.O
for approval when it is approved by M.D then Recruitment
draft (Job description) is prepared including:
Name of the post
Requisite qualification
Requisite experience
And Minimum age.
Later this draft sent again to M.D for further process and
signature. After the signature of M.D the same draft is sent
to Recruitment department for publication. Then applications
for jobs are gathered and reviewed and only recommended
(shortlisted) candidates are for written tests. Written
tests are conducted by OGDCL itself and sometimes this task
is assigned to Testing services agency like NTS, Later
interview is conducted by board/panel and this panel is
constituted by higher authorities of OGDCL. Candidates’
performance is measured according to following schedule:
Written test……………………………….…………..…………………………. 30 marks
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Experience……………………………………………………………………..... 30 marks
Qualification………………………….………………………………………..... 30 marks
Interview………...…………………………………………………………….10 marks
Total score 100 marks
Then merit list is prepared
On 2nd day he told me about the procedure of allocation of
seats on the basis of regional quota: process is mentioned
below;
Merit …………………………………………..…………………………………….. 7.5%
Punjab ……………………………………….…………………………….………… 50%
Sindh ………………………………………….……………………………….…….. 19%
KPK …………………………………………….….…………………..…………….11.5%
Balochistan …………………………………………………………………………… 6%
Fata …………………………………………………………………………………… 4%
AJK ………………………..……………………………………………………….. …2%
Then selected candidates are physically examined then
Executive summary of selected candidates are forwarded to
M.D/C.E.O and acceptance letter is sent to concerned
department. Later joining letter is issued to selected
candidate and when he/she join the field or office then
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confirmation letter is sent to HR department. Finally a file
of that employee is submitted to HR department and it
forwards to relevant HR section.
On 3rd day HRO (Recruitment) sent me to senior
administrator, Mr. Muhammad Zia Malik who was managing the
cases of SACKED EMPLOYEES REINSTATEMENT and DECEASED EMPLOYEES
QUOTA. Actually this department is also part of Recruitment
Department. He told me that terminated employees are called
Sacked employees and he told me the ways that how these
employees are reinstated. He told me that there were many
appointments made in the government of PPP in 1/11/19993 TO
1/30/1996 and when other government came then this
government terminated all the employees who were appointed
from government of PPP.
4th day was spent in this section while reading cases about
instatement of sacked employees.
On 5th day Mr. Muhammad Zia Malik told me about Process of
Reinstatement, According to him, Sacked employees will have
to submit an application within 90 days in the department of
recruitment (Reinstatement and deceased employees) then this
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department send the case to M.D/C.E.O for approval of
settlement/enactment and when approval is made by M.D then
it is implemented and sacked employees are reinstated as per
this procedure.
Second function of this department is to handle with the
Deceased employees Quota for their children. There was
created an agreement in 1987 for dealing with such cases,
according to this agreement, if an employee is deceased on
the job then same category of job will be provided to his
son/daughter on the contract of 1 years’ probation but
qualification will be checked.
2.4. PERSONAL LEARNING AND WORKING EXPERIENCE OF 4TH
WEEK
I was allocated in Discipline Section for 4TH week’s
internship and on 1st day I met with DCHRO (Deputy Chief
Human resource officer) Mr. Haroon Rasheed of Discipline Section
who is currently in charge of this department and Mr. Haroon
Rasheed sent me to Senior Administrator/Assistant of
Discipline Section Mr. Muhammad Ismael he told me about
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Disciplinary rules of OGDCL, (E &D (Efficiency and Discipline Rules
2002) are currently being carried out for handling with acts
and procedures to conduct the actions against breach of any
rules and regulations. The Following terms are used in
discipline sections which are mentioned as under:
Accused
Authorized officers
Authority
Misconduct
▶ ACCUSED: It means a company’s servants on which allegations
are charged against whom action is taken under these
regulations.
▶ AUTHORITY: It means a board or an officer designated by it
to exercise the power of authority under these rules.
▶ AUTHORIZED OFFICER: It means an officer authorized by
authority to perform functions of an authorized officer
under these rules.
▶ MISCONDUCT: It means a conduct prejudicial to good order or
service discipline or contrary to company services or
unbecoming of executive or any other employees or
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involvement or participation for gain either directly or
indirectly in industries, trade or speculative transactions
or abused of official position to gain undue advantage of
assumption of financial or other obligations to private
institutions or persons which may cause embarrassment in
performance of official duties or functions.
PENALTY: Penalty is a fine which may be imposed under this
rule.
On 2nd day of 4th week I met with senior administrator
Discipline section and he told me about
penalties/punishments which are imposed as per E&D
(Efficiency and disciplines rules 2002). He described that
Penalties as the authority may award any of punishments
after taking into account the gravity of the grounds for
punishment, the previous record of the accused employee
and / or any other extenuating or aggravating circumstances
that may exist.
On 3rd day HRO Discipline section told me about the types of
penalties. He said that penalties are divided into two types
i.e. minor and major penalties34
1. MINOR PENALTY/PUNISHMENT
i. Censure: this is a minor penalty according to E & D
RULES 2002
ii. Withholding, for a specific period, promotion or
increment, otherwise than unfitness for promotion or
financial advancement in accordance with the rules and
orders pertaining to the service or post.
iii. Stoppage, for a specific period, an increment in the
time scale;
iv. Recovery from pay and allowances of the whole or any
part of any pecuniary loss caused to company by
negligence or breach of order.
2. MAJOR PENALTY/PUNISHMENT
i. Reduction to lower post or time-scale or to a lower
stage in a time-scale.
ii. Compulsory retirement.
iii. Removal from service.
iv. Dismissal from service.
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On the 4th day of 4th week senior administrator/Assistant
told me about the short steps for conducting disciplinary
actions against accused employees.
He said that there are two procedures to deal with cases of
accused for disciplinary actions, which have been mentioned
below:-
1. INQUIRY PROCEDURE
2. SUMMARY PROCEDURE
INQUIRY PROCEDURE: this includes on following steps:
Approval of competent authority to initiate
disciplinary procedures against the accused on account
of misconduct.
Issuance of charge-sheet along with statement of
allegations duly authenticated by authorized officer.
Reply of charge-sheet by accused.
Inquiry constituted in case reply found unsatisfactory
by the authorized officer.
Submission of inquiry report by the inquiry
officer/inquiry committee to the authorized officer
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along with complete findings, conclusions and
recommendations.
Issuance of show-cause notice by the authorized
officer.
Reply of show-cause notice by accused.
Opportunity of personal hearing is given to accused by
the authorized officer.
In case the accused found guilty of misconduct, he/she will
be imposed minor/major penalty as specified in E&D Rules
with the approval of authorized officer.
Note: If he/she is not found guilty then his/her charges
will be exonerated.
APPEAL: - If a person on whom a penalty is imposed shall
have the right to appeal to the appellant authority within a
specified period as per E&D rules.
On Last day of week HRO discipline section told me about The
Summary Procedure, summary procedure is included on
following steps:
Approval of competent authority.
37
Issuance of show-cause notice under summary procedure
(dispensing with inquiry) on sufficient grounds.
Reply of show-cause notice by accused.
Opportunity of personal hearing is given to accused by
the authorized officer.
Imposition of penalty, in case he/she found guilty on
specified grounds.
He showed me the table of different officers who were
supposed to conduct inquiry procedure. For instance the
table is shown below which clarifies the difference between
authority, authorized officer and inquiry officers.
S.N
O
EMPLOYEES OF
COMPANY
AUTHORITY AUTHORIZED
OFFICER
INQUIRY
OFFICER
Appellant/
Review
Authority1 Staff from
pay scale 1-
16
Manager Chief EG I—EG
III
G.M
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2.5. PERSONAL LEARNING AND WORKING EXPERIENCE OF 5th
WEEK
I was allocated as per schedule of 5th week in HRIS (Human
Resource information system)
On 1st day I met with Manager (HRIS) Mr. Baqar Malik for
gaining exposure about the functions of HRIS in HR
department of OGDCL. He told me the functions of HRIS, which
are mentioned below:
Data posting
Employees record from date of appointment to date of retirement
HRMIS (Human Resource management information system)
Posting the complete information of an employee for maintaining his/her
record.
On 2nd day Mr. Baqar Malik sent me to HRO (HRIS) Mr.
Mohammad Faisal for further information and for further
practical experience in HRIS Section and I found that there
were 5 data entry operators working in this section. HRO
(HRIS) told me it was mind frustrating and mind blowing task
39
to manage and record the information of employees of OGDCL.
In 2006 OGDCL purchased Oracle Application Software E-
business suite in billion rupees, in which complete
information of all personnel is stored and updated.
On 3rd day HRO HRIS told me about how Oracle Application
software is used here in OGDCL for various modules, he said
that it has been categorized in different modules such as HR
Module, Finance Module and Marketing Module and so on.
Therefore HRIS is thoroughly concerned with monitoring,
controlling and managing the information of all employees in
computerized database system and recorded in main server of
the company. on 4th day of week he told me about main
advantage of Oracle Application Software E-business suite,
is to free from the risk or loss of data due to fire or
other destruction and when I asked him a question regarding
the encryption of windows or hard drive where data is stored
he said that data of entire employees of OGDCL is stored in
main online server and it is safest mode of storage of data
of all the employees. Moreover he told me that data
processing officers and data entry operators have been given
40
access codes for logging in to this oracle application
software for processing no any single individual can log in
without access code. All the relevant information of an
employee is recorded in oracle application software, suppose
when he/she was appointed, how he/she was appointed, either
he/she was appointed on the basis of probation or contract.
When he/she was promoted it means all the benefits which are
awarded in OGDCL including:
Pay fixation, Promotions , Experience, Qualification, Seniority duration,
Leaves, Transfers, Medical facilities and Scholarships to his/her children.
On the Last day He took me with himself and said to see how
I am working on it and then I practiced on it.
2.6. PERSONAL LEARNING AND WORKING EXPERIENCE OF 6TH
WEEK
It was last week of internship and I was allocated in HR-
Policy section for learning about what type of policies and
41
procedures are being executed by HR department of OGDCL. On
1st day I met with chief HR Officer of policy Section Mr.
Talat Haider and he told me that there are strict HR
policies and procedures have been formulated and those
policies are being implemented properly here in OGDCL, later
he sent me to HRO Policy Mr. Mohammad Azhar Khawaja, he told
me that Policy department is headed by a manager who look
after two sections namely Policy Section and liaison &
welfare Section.
On 2nd day, HRO Policy Mr. Mohammad Azhar Khawaja, told me
about the functions of policy section, which are mentioned
below:-
The Core Functions of the Policy Section
To maintain updated record of HR Policies
To notify decision of the board of directors and help
in implementation by providing
interpretation/clarification.
To notify delegations of powers made by managing
director to directors, general managers and managers
etc.
42
To clarify/interpret company regulations agreement with
CBA (Combined bargaining agent) for dealing with unions
of the company.
To notify grant of bonuses, honorarium, awards etc on
approval of competent authority.
To examine/ process any other cases assigned to the
regulations department by the management.
On the 3rd day he told me about the Core Functions of
Liaison & Welfare Section
Processing of cases of various matters pertaining to
the welfare of welfare/ ex-employees and their families
for submission to higher authorities for approval, i.e.
house building advance, conveyance advance, distress
grant, performance of Hajj of staff under labor Quota
and donations to various organizations.
Processing grievances of employees routed through CBA
coordination with NIRC in case of holding referendum
for determining the CBA among the registered union.
Processing submission of chapters of demands for
negation between management and CBA, implementation of43
memorandum of settlement (MOS) and liaison with
ministry of Religious affairs
On the 4th day, he told me that there are other policies
which have been formulated by higher management and carried
out by HR Policy section and those policies are mentioned as
follows
Travel and reimbursement policy, Recruitment and selection policy,
Promotions policy Training and development policy, Code of ethics and
business practices policy, External communication and insider policy, Exit
interviews policy, Policy for virus protection, Policy on licensed software ,
Policy on email services, Policy on internet services. On the last day I
was given some policies to read.
CHAPETR 3
SWOT ANALYSIS OF HUMAN REOURCES DEPARTMENT
SWOT Analysis is conducted to identify the organizational
strengths (S), organizational weaknesses (W), environmental
opportunities (O), and environmental threats (T). Each
44
analysis helps to know that how these elements influence
organizational performance.
An organizational strength is an internal capability that
can be exploited to achieve goals, where as an
organizational weakness is an internal characteristics that
may undermine performance. An environmental opportunity is a
situation that offers potential for helping the organization
achieves its goals. In contrast, an environmental threat is
an external element that can develop into a non-crisis or
crisis problem, and potentially prevent organization from
achieving its goals.
3.1. STRENGTHS
Being Government owned organization; OGDCL is given
preference when Government allows any new concession
OGDCL has highly professional manpower and offers them
very competitive salary packages.
OGDCL has established its own gas transmission and
distribution network.
Computerized networking system is prevailing in the
OGDCL. 90% of the locations/fields are online.45
OGDCL has high caliber training facility structure in
the form of OGTI.
Highly advanced and modern technology and equipment is
possessed by OGDCL.
OGDCL has a number of packages in order to hire best
profile of professionals and as well as to motivate
them in order to extract best from them.
OGDCL has huge financial reserves available.
Annual bonuses are announced to motivate employees.
Enough physical facilities are provided to its
employees in the H.O in order to facilitate the
performance of its employees.
OGDCL has been a highly profitable entity since its
creation.
Recruitment and Selection process is well designed.
Specialization is achieved through selecting the
personnel on the basis on technical expertise.
3.2. WEAKNESSES
46
Outdated procurement procedures and stores inventory
management system of OGDCL undermines OGDCL‘s
performance.
No job description concept is prevailing in OGDCL.
There is injustice distribution of work among the
employees.
There is no check and balance to monitor.
The rules and regulations are not properly implemented.
A lot of time wasted in sending and receiving of
documents.
Environment is initiative killer
Bureaucratic form of administrative setup.
Greater distances in hierarchy.
Delayed decisions due to prolonged procedures.
Ad hoc approach to resolve major issues.
Higher influence of Trade unions
Political influence is being exercised for recruitment.
Members of Board of Directors are all outsiders, and
selected by Government.
47
No concept of Diversification like other oil companies
like BP.
Investment is only being done in Government securities,
as it is Government owned organization.
Company is unaware of the importance of Marketing in
the success of one company.
Attitude of the employees towards work is not prudent
because of job security factor. They have fair idea
that no one can expel them from this organization.
There is no check to measure performance of the
employees.
Annual bonuses are announced for whole organization
irrespective of their individual performance, which
never motivates people to work.
3.3. OPPORTUNITIES
Substantial unproven gas and oil reserves exist in
Pakistan.
Low cost incur in the exploration of wells.
48
Inflationary trend in the prices of oil in the
international markets.
Massive consumer market.
Ever rising demand of gas due to changing attitude of
people.
Government incentives to Energy Sector for doing better
projects.
There is no tough competition faced by OGDCL from any
company having the same large setup with such huge
finances.
Minimum price allowed by the Government at different
location is a great support for those fields where
price after discount is less than official price.
Economies of scale can be achieved by the right sizing
of employees.
3.4. THREATS
Being a Government owned organization; Government has
maximum interference while deciding its investment
policies.
49
Competition is increasing as Government is attracting
foreign investors in this Sector. (Tough Competition).
Global trends are rapidly changing which might affect
its performance.
Any decrease in future oil prices may prove to be a
great threat for OGDCL.
Fear of unproductive well is a source of threat for
OGDCL.
A new competitor in the home market
Fear of Privatization.
A competitor has a new, innovative product or service.
Competitors have superior access to channels of
distribution.
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CHAPTER 4
[CONCLUSION & RECOMMENDATIONS]
CONCLUSION
All oil and gas companies, particularly independent
operators, have a strong sense of industry. They frequently
behave in ways that suggest they consider themselves as co
providers as opposed to competitors. In fact, what truly
distinguishes many independent is that their strategy is the
reflection of the management.
The quality of an organization is dependent on the quality
of its work force. OGDCL has engaged top professionals in
Geology, Drilling, Engineering, and Petroleum who are
working for the search. OGDCL is producing oil and gas
products and meeting the consumption of the country’s
requirement, which in turn is providing great support by
reducing the import bill of the country. Power generation
by IPPs in the country is a major source of energy. Uch Gas
51
field and Panjpir/ Nandpur Gas Fields are the two projects,
which have started the supplying Gas to power companies. In
this way not only the requirement of electricity of the
country is being met but the pro OGDCL’s contribution to
the national exchequer in the form of royalty; excise duty,
debt servicing, and taxes are huge support as compared to
the other state owned organizations. OGDCL entered into new
JV agreements in various exploration Blocks with the
Government holdings and other foreign Companies, like
British Petroleum, OPI, Zaver Petroleum, OMV etc
Oil and gas Training Institute (OGTI) is providing training
facilities and meeting the requirements of highly trained,
motivated, and improved human resources for its internal as
well as external professional from various companies. OGTI
design and implement programmes to develop and expand the
technical and managerial skills of professional that meet
the fast changing challenges of the day. A total of about
150 courses in service disciplines are conducted during a
year.
52
“Struggle is the key to success. The results are the
discretion of Allah. Hence hard working and devoted
workforce is the most precious asset for an organization”.
RECOMMENDATIONS & SUGGESTIONS
For the hopeful results, achievements and to overcome these
weaknesses and drawbacks, I want to suggest their practical
steps and to improve the existing practices.
In order to improve the quality of human resource by
enhancing their technical, communication skills and
provide training in their related fields of expertise.
Compensation and promotions should be performance
based rather than seniority or favoritism.
There should be informal communication among the
superiors and sub-ordinates by arranging tea party
once in four months or six months and in this way the
distance among them will be reduced. As a result
employee’s efficiency can be enhanced.
53
Performance based compensation system should be
introduced within the organization
Clear job description is needed so that employees know
about their duties and complete them with honesty and
fairness.
Rotation of duties should be made at regular interval
to improve the overall work output and to keep the
interest of the employee intact.
A good internal Control is a key to success for an
organization, but in OGDCL there is a lack of internal
control, which should be improved and implemented
effectively.
Management must take necessary action to control costs
i.e. administrative and selling expenses.
Recruitment and Selection should be free from
favoritism and nepotism. And try to eliminate
political interference in recruitment, because it will
54
affect the efficiency and ultimately the corporation
will be unable to achieve its objective.
Training facilities should be provided according to
the requirement of the job.
As the promotion policy of the corporation clearly
shows merit + seniority, so it should be fully
implemented
BIBLIOGRAPHY
1. http://www.ogdcl.com
2. http://www.ogdcl.com/about-us/AboutUs.htm
3. http://www.ogdcl.com/operations/Operations.htm
4. http://www.ogdcl.com/about-us/Goals-Core.htm
55
5. http://www.ogdcl.com/media/Facts.htm
6. http://www.mpnr.gov.pk/gop/index.php?
q=aHR0cDovLzE5Mi4xNjguNzAuMTM2L21wbnIvb3JnRGV0YWlscy5hc3B4
7. www.wikipedia.com
8. www.google.com
9. Self observations and experience during internship program
10. Business Recorder “News Paper”
11. Observer Journals.
56