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.

35

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

38

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