Ogdcl HR Report

INTERNSHIP REPORT

Oil & Gas Development Company Limited

By

Imran Gul Memon,FA11-BBA-149, Semester 8th, 2015

Department of Management SciencesCOMSATS Institute of Information Technology

Oil & Gas Development Company Limited

TABLE OF CONTENTSOriginal/Attested Internship LetterExecutive Summary1. Introduction1.1. Company Background (History)1.2. Objectives1.3. Organizational Structure2. Learning &Experience2.1. Internship Duration & Rationale of Selection2.2. Details of Training Department wise2.2.1 HRIS Department2.2.2 Human Resources (HR-Sections) Department2.2.3 Recruitment Department2.2.4 HRD Department2.3. SWOT Analysis of the organization2.3.1. Strengths 2.3.2. Weaknesses2.3.3. Opportunities2.3.4. Threats 2.4. Recommendations (Problems and Suggestions)AppendixConclusionBibliography

EXECUTIVE SUMMARY

It is a compulsory internship report which was assigned to me and I am making this report on the behalf of my personal experience gained with my internship of 8 weeks at Oil & Gas Development Company of Pakistan.The purpose of the study is to know as much as we can about one of the leading company in exploration and production in the oil and gas industry of Pakistan. The study focuses on human resource department of OGDCL. This report also presents functions, projects, product line, mission and objectives of OGDC as well. It explains the administration and personnel department and its practices in the organization in detail. This report basically covers the OGDCL (Oil & Gas Development Company Limited) in Pakistan, history of OGDC and the organizational structure comprehensively. During my 8 weeks, I almost did work in each section of Human Resource and learned about the whole structure and working of the Human Resource division. Major sub departments in HR are HRIS, HRD, Recruitment and HR Sections. I worked in almost every department and learned the working of various departments. A Number ofsoft wares are being used in various sub departments of HR. Major Software isoracle which is used to maintain the record of the employees. All the sub departments are interconnected with each other in terms of functioning. The organizational structure and its structure are discussed comprehensively. More attention is given to the different departments working in and under OGDCL and how these departments basically operate. Finally problems of OGDCL are identified and then on these bases some suggestions are given keeping in view the current situation of the organization. The effort is directed for efficient performance and is all about SWOT analysis in which strength, weaknesses, opportunities and threats are discussed in detail.The detail of my learning in each department, the organizational structure, products and services of OGDC, objectives of and recommendations are included in this report. Over all it was an exciting experience and I am looking forward to utilize this experience in my future jobs.

1. INTRODUCTIONOGDCL is the national Oil &Gas Company of Pakistan and the flagship of the countrys Exploration and Production sector.The Company is the local market leader in terms of reserves, production and acreage. The company is listed on all three stock exchanges in Pakistan and also on the London Stock Exchange since December 2006.It is a debt free company of Pakistan. 1.1. Company Background (History)Prior to OGDCL 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 giant gas field at Sui in Baluchistan. 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 47 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 OGDCTo revive exploration in the energy sector the Government of Pakistan signed a long-term loan Agreement on 04 March 1961 with the USSR, whereby Pakistan received 27 million Rubles to finance equipment and services of Soviet experts for exploration. Pursuant to the Agreement, OGDC was created under an Ordinance dated 20th September 1961. 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. As an instrument of policy in the oil and gas sector, the Corporation followed the Government instructions in matters of exploration and development. The day to day management was however, vested in a five-member Board of Directors appointed by the Government. In the initial stages the financial resources were arranged by the GOP as the OGDC lacked the ways and means to raise the risk capital. The first 10 to 15 years were devoted to development of manpower and building of infrastructure to undertake much larger exploration programs.Initial SuccessesA number of donor agencies such as the World Bank, Canadian International Development Agency (CIDA) and the Asian Development Bank provided the impetus through assistance for major development projects in the form of loans and grants. OGDC's concerted efforts were very successful as they resulted in a number of major oil and gas discoveries between 1968 and 1982. Toot oil field was discovered in 1968 which paved the way for further exploratory work in the North. During the period 1970-75, the Company reformed the strategy for updating its equipment base and undertook a very aggressive work program. This resulted in discovery of a number of oil and gas fields in the Eighties, thus giving the Company a measure of financial independence. These include the Thora, Sono, Lashari, Bobi, Tando Alam & Dhodak oil/condensate fields and Pirkoh, Uch, Loti, Nandpur and Panjpir gas fields which are commercial discoveries that testify to the professional capabilities of the Corporation.Transition to a self financing entityNoting the Company's success, due to major oil and gas discoveries in the eighties, the Government in July 1989, off-loaded the Company from the Federal Budget and allowed it to manage its activities with self generated funds. The financial year 1989-90, was OGDC's first year of self-financing. It was a great challenge for OGDC. The obvious initial target during the first year of self-financing was to generate sufficient resources to maintain the momentum of exploration and development at a pace envisaged in the Public Sector Development Program (PSDP) as well as to meet its debt servicing obligations. OGDC not only generated enough internal funds to meet its debt obligations but also invested enough resources in exploration and development to increase the country's reserves and production.Conversion into Public Limited Company Prior to 23 October 1997, OGDCL was a statutory Corporation, and was known as OGDC (Oil & Gas Development Corporation). It has been incorporated as a Public Limited Company since 23 October 1997 and is now known as OGDCL (Oil & Gas Development Company Limited) Initial Public OfferingGovernment of Pakistan disinvested part of its shareholding in the company in 2003. Initially 2.5% of the equity with an additional green-shoe option upto 2.5% of equity was offered to the general public. The said Offer received an overwhelming response from the general public and was recorded as a landmark transaction in the history of Pakistans capital markets.GDR In December 2006, the Government of Pakistan divested a further 10% of its holding in the company. The Company is now listed on the London Stock Exchange since on December 06, 2006.PGCLA wholly owned subsidiary, the Pirkoh Gas Company (Private) Limited (PGCL) was established in 1982 to undertake development of Pirkoh gas field located in Dera Bugti Agency in Baluchistan with Asian Development Bank assistance.OIL AND GAS TRAINING INSTITUTE (OGTI)The oil and gas development company limited (OGDCL) was set up in 1961 in the public sector under the ministry of petroleum and natural resources.Aims and Objectives of OGTIThe aims and objectives of OGTI are to identify the training needs of the industry, offer practical training program to professional of the petroleum industry, provide training advice and guidance to OGDC and to help established standards for training which will meet the performance needs in the field and on the job. OGTI is dedicated to:Establish courses and in-house training programs which will meet the specific needs of OGDC and the Pakistan petroleum industry. Designing training material that recognizes the capabilities and specific needs of newly hired employees and those who change their job assignment providing refresher and upgrade training for industry personnel in cost effective mannerIn-house basic training programs are being designed and developed to provide a base level of training which employees require to function in their jobs. OGDC recruits men from all across Pakistan. The universities and technical schools do not provide the full range of subject matter necessary for a graduate entering the petroleum industry. It is OGTIS intention to ensure that the individual has an opportunity to obtain this training within his first two years with OGDC. In addition to basic training courses, OGTI will Organizes in-house technology update seminars.DEVELOPEMENTWith 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 Development & 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 Companys 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. OGDCLs 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 companys share in non operated Joint Ventures.During the last 42 years OGDCL has grown into a technically and commercially viable organization.PRODUCT LINEIn the product line of OGDCL, the following are its products by which it is earning profits: Crude Oil. Gas. LPG. Sulphur Gasoline/High and Low Speed Diesel. Kerosene Oil. Naphtha. Solvent Oil.FUNCTION OF OIL AND GAS DEVELOPMENT COMPANYThe main functions of the Corporation are:- To plan, organize and implement programs of exploration of development of oil and gas resources. To carry out geological, geophysical and other surveys for the exploration of oil and gas. To carry out drilling and other prospecting operations to prove and estimate the reserves of oil and gas. To produce, refine and sale oil and gas To perform other functions as the Federal Government may from time to time assign to the Corporation.PROJECTSQADIR PUR DEVELOPMENT PROJECTQadirpur gas field, one of the large fields in the country was discovered in 1990. It is located in the central Indus basin, south of kandhkot and Sui gas field.In accordance with the consolidated revised development plan dated 30 November, 2002 phase-II revamp project was commissioned on 23 January 2004 to process MMscfd of gas. Under this plan pretreatment memguard unit and new membrane elements were installed and drilling of one well was completed.Phase-III of this project was commissioned on 20th march 2004, by installation of two additional membrane skids and drilling of two wells. Due to this expansion the capacity of plan has increased to process gas up to 500 MM.CHANDA DEVELOPMENT PROJECTChanda oil field, the rover discovery in NWFP, was brought on to stream and it started giving production from 17 July, 2004, and is currently producing 3,500 barrels of oil and 13 MMscf of gas per day. Chanda LPG plant will also be installed by October 2004 were 25-40 M.tons of LPG will be produced. The third well at Chanda field is planned to be in third quarter of 2004-2005.This will increased the production of field to 5,300 sbarells of oil and 19 MMscf of gas per day.BOBI DEVELOPMENT PROJECTFirst phase of the bobi development project has also been commissioned in June 2004 and is producing 1,050 barells of stabilized condensate per day. Phase-II of the project is expected to be streamlined in October 2004. On its completion, the field will produce about 2,800 barrels of oil per day and 125 M.tons of LGP Satellite fields namely Mithrao and chak dim will DHODAK PLANT ENHANCEMENT AND DAKHNI EXPANSIONDhodak plant enhancement and dakhni expansion projects are also in progress and are expected to be completed by some time completion, the projects will result in substantial enhancement of production of oil, gas, LPG and sulpher PRESENT STATUS OF THE COMPANYVISION STATEMENTTo be a leading, regional Pakistani E & P Company, recognized for its people, partnerships and performanceMISSION STATEMENTOur 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 citizenCORE VALUES Merit Integrity Team Work Safety Dedication Innovation 1.2. OBJECTIVES Developing E & P Work Flow Models for Data Integration and connectivity. Conduct Geoscientific, Algorithms and systems architecture research leading to the development of robust, interactive and user-friendly geosciences applications software that is tightly integrated into the workflow environment. Detailed testing of the developed applications to achieve the highest performance. Detailed testing of the developed applications to achieve the highest performance. Training and systems support to the end - users.FUNCTION OF OIL AND GAS DEVELOPMENT COMPANYThe main functions of the Corporation are:- To plan, organize and implement programs of exploration of development of oil and as resources. To carry out geological, geophysical and other surveys for the exploration of oil and gas. To carry out drilling and other prospecting operations to prove and estimate the reserves of oil and gas. To produce, refine and sale oil and gas To perform other functions as the Federal Government may from time to time assign to the Corporation.

OGDCL FIELDSMajor Oil & Gas Fields in Pakistan SINDH Lashari (Oil) Missan (Oil) Pasakhi (Oil) Bobi (Gas/ Condensate) Qadirpur (Gas) Kunnar (Oil) NoraiJagir(Gas/Condensate) Dhodak (Oil/Gas) Sadqal (Oil/Gas) Hundi/Sari(Gas/Condensate) Sono (Oil) Thora (Oil) Tando Alam (Oil)

BALOCHISTAN

Pirkoh (Gas) Loti (Gas) Uch(Gas)

PUNJAB

Fimkassar (Oil) MissaKeswal (Oil) Toot (Oil) ChakNaurang (Oil) Nandpur (Gas Rajian (Oil) Bahu (Gas) Kal (Oil) KPK

Chanda (Oil) Sheikhan (Gas) Nashpa (Oil) Mela (Oil) 1.3. ORGANIZATIONAL STRUCTURE

Source: A.Javed, personal communication, March 3, 2010)

MAIN OFFICESOGDCL 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, Sukkhur, and Quetta for operational activities. The overall organizational structure / organogram is as underA 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: OGDCL Head Office, Jinnah Avenue Islamabad. Pirkoh Gas Company Private Limited, Islamabad. OGDCL Regional Office, Shafi Chamber, Karachi OGDCL Regional Office, Multan OGDCL Liaison Office, Quetta OGDCL Liaison Office, Sukkur OGDCL West Wharf Office, Karachi OGDCL Base Store, Islamabad OGDCL Base Store, Khadiji, Karachi OGDCL Base Store, Korangi OGDCL Base Store, Kot Addu OGDCL Base Store, Kot Sarang Medical Centers, Islamabad, Rawalpindi & Karachi OGDCL Workshops, Islamabad Oil & Gas Training Institute, Islamabad

MAIN DEPARTMENTSCorporate Department Administration Department Human Resource Department Personnel Department Security Department Legal / Regulation Department Communication Department Procurement Department Stores Department Finance & Accounts Department Audit DepartmentE&P Departments Exploration Department Exploitation Department Production Department Process DepartmentTechnical Services Department Drilling Department Data Logging Department Mud Engineering Department Well Services Department Cementation Department Geological Well Supervision Department Engineering Department Wire line Logging Department Geological Department, Data Processing Department

2. Learning & ExperienceI did my internship in the department of HR, OGDCL (Oil & Gas Development Company Limited) Islamabad. I have worked in different subsections that come under the HR Department.Following are given below: HRIS Department HRD Department Recruitment Department Human Resources (HR-Sections) Department

HR DEPARTMENT OF OGDCLThe first 10 to 15 years were devoted to development of manpower and building of infrastructure to undertake much larger exploration programs. Due to the great efforts of HR department of OGDCL the organization is not only the leading E&P Company of the country, but also as a company known for its people, partnerships and performance in the region.HR DEPARTMENT OF OGDCL CONSISTS OF: Thirteen (13) Officers in total ninety seven (97) employees Total employees of OGDCL are eleven thousand plus (11000+)2.1 Internship Duration & Rationale of SelectionDuring my Internship at OGDCL for 4 weeks, I was transferred to the above mentioned departments on weekly basis. I worked in HRIS (Human Resource Information System) for 1 week, for 1 week in Human Resources (HR-Sections), for 1 week in Recruitment Department, and in the last week I worked in HRD (Human Resource Development). I have selected OGDCL because OGDCL is one of the leading national oil & Gas Company of Pakistan in the flagship of the countrys E&P sector. The Company is the local market leader in terms of reserves, production and acreage. The company is listed on all three stock exchanges in Pakistan and also on the London Stock Exchange since December 2006 and it is a debt free company of Pakistan.2.2. Details of Training Department wiseHere I am going to explain the learning experience of my internship in the four sub sections in the HR Departments according to the schedule made by my mentor at OGDCL (Oil & Gas Development Company Limited).

2.2.1 HRIS Department:Firstly, I have worked for one week in HRIS (Human Resource Information System) Department of OGDCL wheredifferent record of an employee is maintained in his personal file using the software ORACLEWHAT IS ORACLE?An Oracle database software is a collection of data treated as a unit. The purpose of a database is to store and retrieve related information regarding employees personal, job, medical, family, and whole information. A database server is the key to solving the problems of information management. In general, a server reliably manages a large amount of data in a multiuser environment so that many users can concurrently access the same data. All this is accomplished while delivering high performance. A database server also prevents unauthorized access and provides efficient solutions for failure recovery.

2.2.2 Human Resources (HR-Sections) Department

FUNCTIONS OF PERSONNEL DEPTT Maintenance of service record of employees from their induction to retirement and beyond. Transfers Postings. Maintenance of seniority. Handling of Personnel grievances. Processing of Pension / EOBI and retirement cases. Implementation of CBA Managements agreements after every two years duration.. Maintenance of Database-Computerization. Responses to Senate, National Assembly Questions / Other Government Agencies.

PERSONNEL (HR) DEPARTMENT FUNCTIONsMaintenance of personnel filesAs we have mentioned above that every section is related to the concerned department. So whenever any new employees recruit OGDC, the concerned section maintained this personnel record from the first day. Every employee have their own personal file in personnel department.CorrespondenceThe personnel department also maintained the record of each employee for promotion, the minimum time for promotion is five years. So at the end of every year they check the record of each employee, his ACR (Annual Confidential Report) , experience qualification etc . Similarly if any employee want to leave more than 48 days which are Official than concerned department will approval them and send to t6he personnel section. In short any type of personal problem or work will maintain in his personal files with personnel department. Its called correspondence.Pay Scale and FixationIt is also the function of personnel department that they fixed the pay scale for employees. There are three types of employees in OGDC. Executive Group (EGI - EGIII) Staff (1 - 16) Contractual Staff Recently personnel department has computerized the whole process to reduce the burden, whenever they want any type of data immediately, call to computer. They have their own computer section. PUBLIC RELATION DEPARTMENTPublic relation department is one of the permanent departments of OGDC. Unfortunately it cannot surely say that on which date and year it was established in OGDCL.Initially it was started and performs duties in Karachi, but in 1985 shifted to Islamabad along with whole records.Public relation department is more concerned with press. The main objective is to provide accurate and an esteem information to the general public about OGDCLs functions that what OGDCL is doing. For the development of oil and gas sometime press conference also arranged for this purpose.Public relation department deliberate plan and sustained efforts to established and maintain natural understanding between an organization and its public.It also performs the function to maintain the relation between the management and staff.Public relation department operates various methods and procedures to inform the public. Various types of newspapers are mostly used to inform the public. Through newspapers they give advertisement about OGDCL.HOUSING SECTIONHousing section is also one of the permanent parts of OGDCL Islamabad therefore it performs the function for OGDCLs staff member to hire houses for their accommodation. It has many functions they are:- Hiring of houses for the employees of OGDCL. Hiring of building for offices and lodges at Islamabad. Hiring of lodges, rest houses for staff and officer at big cities like Lahore, Karachi Peshawar etc.Functions Actually PAO is the head of two major sections, that in general admin section and housing section. All type of documents/cases are tabled to the PAO for verification and signed. He may approve the legal cases and also has the power to reject illegal cases. Particularly in housing cases the approval of PAO is must. The posting (DAK) of all Islamabad come to the PAO and also he distributes the post to the required party/person. He is the in charge of overall staff of both sections. TRANSPORT SECTIONThe main function of transport section is to provide transport facilities to the officer staff member of OGDCL Islamabad. Various types of vehicle they provide to the officers / staff in various shapes.Vehicle for Entitled OfficerManager they provide official vehicles for duty.Vehicle for General DutyFor each department they provide special vehicle for emergency cases.Vehicle for Pick and DropsLarge number of coasters for officers and buses for other lower staff are available which perform the duty of to pick early in the morning and drop at the end of office time the staff to perform their duties.Verifier Field DutiesAt each field from 5 to 6 vehicles ready every time for field duties at the time of emergency.Vehicles for ForeignersSimilarly some vehicles are available for engineers and other staff. PENSION AND WELFARE SECTIONWelfare SectionIt is just like a bridge between the union and management. It is also a proper channel between the two bodies.Functions of Welfare SectionVarious types of functions performed by the welfare section are as under:- To deal with union matters. To provide facilities to the staff members of their families. Grant of house building advance. Conveyance advance, to give amount to the staff members after five years in OGDCL for conveyance. Distress grant, at the time when any staff member die, the amount will be given to his wife. Benevolent fund, in extra fund by pension. i.e. deducted every monthRs.15/- by their incomeSimilarly large number of facilities they provide to the staff member, due to the arrangement with management. The union and management make on agreement after every two years. Welfare section negotiates with union from the management side.PENSION SECTIONPension was introduced in OGDCL after 1984. After 10 years in OGDCL the staff member qualified for pension and after 25. Years he can demand for pension. The super innovation of the pension is maximum 60 Years. After 60 years he cannot stay more. Accommodation allowance is 50% of the growth monthly pension supposes that on the age of 25 years of service his pension will be counted of the 14th scale employee.As a whole it means that OGDCL will provide pension till 15 years and something. After that the pension allowance will be counted again.OrganogramAfter circulation to every department they analyze that how many employees perform their duties and how many are required and they take a deficiency with his scale. This procedure is called organogram.After the completion of organogram they take the official approval from chairman and give advertisement through public relation department of the most required vacancies.The recruitment procedure of the OGDCL is mostly related with CSS of Pakistan .i.e. as under:-Merit10%Punjab50%Sindh rural11.4%Sindh urban7.6%N.W.F.P11.5%Baluchistan3.5%Fata04%A.J.K02%

After the advertisement they receive application from all Pakistan and take written examination. This examination is held in those departments, where the candidate want to join and that department send the result to recruitment section.The selection procedure is recently shortly changed and is as under:-Written Test 40%weitageExperience30%weitageAcademic Qualification30%weitage The time for a written test is usually one hour. Those candidates who qualified the test then they send a call for interview if they are not low merit. It should be kept in mind that the interview has no value and no marks. It is just only for two and to analyze the courage, boldness communication skill, convincing power and also his dealing with other people.All the departments at OGDC are enforce to follow following performance ratingOutstanding05%Very Good20%Normal50%Marginal 20%Poor05%

Performance Evaluation (ACRs)No. of ACRs

Issuance of ACR forms to all departments according to time schedule. (15th December of each year) Receipt of ACR forms. (1st March of each year) Maintenance of proper record, its secrecy & integrity very important Convey Adverse entries to officers/staff employees Deal with the representations/grievances related to Adverse entries in ACRs

Activities (ACR) Career Planning Cell issues comprehensive instructions from time to time to educate and clear ambiguities On education of ACR writing lectures are arranged by CPC in Head Office and Field Locations ACR forms have been serialized for officers to minimize duplication/ misuse

Difficulties (ACR) ACRs are not returned according to the notified schedule. Lot of time and efforts are involved in correspondence Clearly written out instructions notwithstanding, over-writing, use of fluid, mere marking instead of initials are the most commonly observed problems Lack of consistency in various parts of ACR is frequently noticed

BASIC COMPONENTS OF THE PROMOTION CRITERIABasic component of the promotion criteria with their relatives weight age would be as under;-1. Qualification 15%2. ACRs 25%3. Seniority 05%4. Relevant experience including experience outside OGDCL 15%5. Assessment by the promotion Committee 40% ------------------------- Total 100% -------------------------These five basic components are analyzed before promotion criteria. When any employee qualifies these components then he will be promoted with the approval of the chairman. For every employee it is necessary to get minimum 60% marks in above components.Besides this, the promotion also observes that where any position is vacant or not whether the employee who is promoted, meet the requisition of qualification for that particular job. Where he is performing job for last five years where his record in past is clear. So, after these observations they take action for promotion. Deputy Chief Personnel officer is the in charge of the section.PROMOTIONSOFFICERS

Promotion Criteria for officers was adopted in 1994. Its main components are:

ACRs:60%Qualification:15%Technical Publications:05%Relevant Experience:20%

Seniority cum fitness is the guiding principal in promotionsPROMOTIONSSTAFF EMPLOYEESThe promotion cases of Staff are evaluated as per Promotion Criteria of 1991Its highlights are:

ACRs:25%Qualification:15%Seniority:05%Experience:15%Evaluations:40%

IMPORTANT FACTORS FOR PROMOTION Experience for the Post Number of Years in the Vacancy Seniority Performance: ACRs Synopsis/Quantification Prescribed Qualification Requisite Present Executive Group Disciplinary Profile

2.2.3 Recruitment Department

Secondly, I have worked in the recruitment department for 1 week in OGDCL and I have learned the followingRecruitment is the process of filling vacancies with people.It has of two kinds INTERNAL PROMOTION WITH IN EMPLOYEES EXTERNAL ADVERTISEMENTS EMPLOYMENT AGENCIES INDEPENDENT CONTRACTORS

INTERNAL OGDCL promote their own employees to the higher post according to these criteria.OGDCL RecruitmentThere are four types of recruitment in OGDCL Regular employees(specimen:fig1) Contract Basis employees(specimen: fig 2) Trainees Special Trainees(specimen: fig 3) Hiring through Contractor Classified appointmentRecruitment procedure of OGDCL Following are the different steps of recruitment at OGDCL.1. AdvertisementIt is online on OGDCL website (www.ogdcl.com) or in the leading news papers of Pakistan2. Pool of applicantsA Number of CVS are gathered from all over the Pakistan.3. Conducting testA test is conduct according to the post offered4. InterviewsAfter conduction of the test, interviews of the short listed candidates are taken by 7-8 panels from concerned departments5. SelectionFinally, condition offer letter issued to successful employees and after selection medical test of all successful candidates is taken and after medical test the successful candidates receive two letters from OGDCL Offer letter Joining letter Successful candidates join their respective departments on the joining date

2.2.4 HRD DepartmentFinally, it was my last week in the OGDCL where I have worked in the HRD Department.Basically, HRD (Human Resource Development) is the integrated use of training, organization, and career development efforts to improve individual, group and organizational effectiveness. HRD develops the key competencies that enable individuals in organizations to perform current and future jobs through planned learning activities. Groups within organizations use HRD to initiate and manage change. Also, HRD ensures a match between individual and organizational needs.Main Functions of HRD: To facilitate the promotions of the employees for both staff and officers To deal with the grievances of the employees and the staff members To maintain the ACR (Annual Confidential Report) of the employees and staff members

There is different HROS (Human Resource Officers) working under the umbrella of HRD Department of OGDCL Managers are considered in the EG Group (Executive Group) There are different levels of HROS

HRO 1 HRO 2 HRO 3 HRO 4Functions of HROSHRO 1 Deals with the problems of employees belonging to their promotions, increments and etcHe tries to solve that by means of graving committee that is deputy chief HRO and manager HRDDeals with the law affairs of the employees and the staff membersHRO 2Deals with the officers promotions, system belonging to their seniority, and their comfortSeniority means five years of continues service on the particular job/post for EG-1 to EG-5. Secondly three year service for the EG-6 to EG-8HRO 3Deals with the promotion policies of the staff membersHRO 4Deals with the annual confidential reports of the employees and staff members initiated by their respective departments by means of reporting officers and supervisorsACR quantification is also provided from the ACR sections. It is also particularly marks in the promotion criteria/system. Finally officers are recommended for a course of course oblique test from OGTI. This test has also particular % of marks to be added in promotion file. A complete file of all the above aspects is presented before the departmental promotion committee (DPC) for the recommendation and non-recommendation2.3. SWOT Analysis of the Organization

In todays world of great competition, a scan of internal and external environment of any organization is of great importance. The Strengths, Weaknesses, Opportunities and Threats faced by OGDCL (Oil & Gas Development Company Limited) are shown by SWOT analysis.

STRENGTHSWEAKNESSES

Highly Skilled ProfessionalsPolitical Influences

Vast ExperienceLimited Customer

Joint Ventures with Foreign Oil Companies Working in PakistanLimited Marketing Opportunity

Major oil & Gas Company of Pakistan Political Appointments

High market cap and revenueInadequate Financing for off-shore drilling

OPPRTUNITIESTHREATS

Expansion towards a multinational CompanyLatest Technology

Expansion towards Exploration & drilling Activitiesunproductive wells

Marketing Opportunity for LPG & Sulphur World Market

Off-shore drilling Safety Issues / Tribal Issues

2.3.1 Strengths:The resources and capabilities that can be used as a basis for developing a competitive advantage are the real strengths of an organization. The following are the major strengths of OGDCL (Oil & Gas Development Company Limited) OGDCL has highly professional manpower. Established gas transmission and distribution network. Being Government owned organization; OGDCL is given preference when Government allows any new concession. OGDCL has enough training facility structure in the form of OGTI. Computerized networking system is prevailing in the OGDCL. 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. 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. Current assets are four times high than current liabilities.

2.3.2. Weaknesses Outdated procurement procedures and stores inventory management system of OGDCL undermines OGDCLs performance. There is no formulized criterion for reserve to production ratio, which can compare their performance with the past. 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. No experts for ORACLE software in spite of its implementation in OGDCL. No planning is being done before initiating any project e.g. Implementation of ORACLE financial. Environment is initiative killer, as there is no say of its employees. Bureaucratic form of administrative setup. Greater distances in hierarchy. Delayed decisions due to prolonged procedures. Adhoc approach to resolve major issues. Political influence is being exercised for recruitment. Members of Board of Directors are all outsiders, and selected by Government. No concept of Diversification like other oil companies like BP. Company is unaware of the importance of Marketing in the success of one company. There is no huge HR Department, and Personnel Department only deals with recruitment and termination cases and a little bit other. 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.

2.3.3. Opportunities Substantial unproven gas and oil reserves exist in Pakistan. Low cost incur in the exploration of wells. 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.

2.3.4. Threats Being a Government owned organization; Government has maximum interference while deciding its investment policies. Government directs the Company while declaring its dividend. Competition is increasing as Government is attracting foreign investors in this Sector. Global trends are rapidly changing which might affect its performance. Iraq and America situation can also have negative impact on Oil and Gas Industry. 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

2.4. RECOMMENDATIONS(PROBLEMS AND SUGGESTIONS)

During my internship at OGDC head office, I have noticed and observed some of the weaknesses in the organizational setup functioning of various departments. PROBLEMS Unawareness of Employees from Latest Technological ChangesTechnical and non technical employees working at field / wells sites in far away areas of the country do not have any access to the latest modern and technological changes, literature etc. Lack of Career Planning Of EmployeesOGDC is only organization in the field of exploration and development of oil and gas resources of the country, but unfortunately does not use scientific techniques in career planning of employees. Unfair Utilization of TransportOGDC have a large number of vehicles, mostly at sites but they are misused by their location in charge.

Poor Method of Recruitment To recruit the employees both internal and external methods are used but the corporation gives preference to the internal method. The main drawback of this method is that it blocks the way for new generation which carry new ideas and knowledge. Furthermore the recruitment system is also influenced by the nepotism of politicians. Injustice Way of Awarding TrainingTraining is used to develop the skills of the employees in this regard lot expenditure is made on training but unfortunately training facilities is also awarded to the employees based on nepotism. Promotion PolicyPromotion policy is the mixture of both merit and seniority, but in practice emphasis is given to ACR and can say that where there is ACR there an id a favoritisms.

SUGGESTIONS During my stay in OGDC I carefully observed and noticed different weaknesses. For these weaknesses, I suggested the following practicable remedies to improve the existing practices. With the passage of time many modern technologies changes take place in oil and gas industry, OGDC must take necessary action to acquire modern technologies so that they can compete at international level and in this way they can play more effective role in Pakistans economy They should to pay full attention to the intensive professional training of staff in related fields. The department concerned can organize professional training at OGDC or with outside agencies etc and latest literature newspapers and magazines etc of professional interest should be provided at sites free of cost. Management must take necessary action to control costs i.e. administrative and selling expenses To offset recruitment bias favoritism should be completely discouraged. And try to eliminate political interference in recruitment, because it will affect the efficiency and ultimately the corporation will be unable to achieve its objective. Training facilities should be awarded according to the requirement of the job. As the promotion policy of the corporation clearly shows merit + seniority, so it should be fully implemented. Beside this it is also desirable to suggest that in this modern area computerization of record is very much essential.So to facilitate the management computer system in all the section must be introduced.

CONCLUSION The production of oil and gas is contributing a lot in reducing the countrys import bill. Power generation by IPPs (Industrial Power Projects) in the country is a major source of energy. OGDCLs Uch Gas field and Panjpir/ Nandpur Gas Fields are the two main fields, which have now started supplying Gas to power companies. This not only meeting the requirementof the IPPS but also contributing a lot towards meeting the demand of electricity in the country OGDCLs contribution to the national exchequer in the form of royalty; excise duty, debt servicing, and taxes are a huge support as compared to the other state owned organizations. OGDCL entered into new JV agreements in various exploration Blocks with the foreign oil companies to boost up the efforts for increasing the Oil & gas demand of this country.. Oil and gas Training Institute (OGTI) is providing training facilities and meeting the requirements of highly trained, motivated, and improved human resources. OGTI designs and implements program to develop and expand the technical and managerial skills of professional to meet the fast changing challenges to the company. A total of about 150 courses in service disciplines are conducted during every year. The quality of an organization is dependent on the quality of its work force. OGDCL has engaged top professionals in Geology, Drilling, Engineering, and production that are working day & nights for the search of Oil & gas. Besides this, the corporate sector is equipped with professionals having qualification of CAs, MBAs, M.Coms, which support the technical wings. The time bound necessity is that all these professionals are given a targets and their performance indicators be clearly defined. A good leadership and the motivation will surely boost-up the efforts and the collective efforts will result in a huge reservoir of Oil or Gas INSHALLAH

Appendix

BIBLIOGRAPHY Human Resource Rules and Policies, Volume one, by Raziq Khattaq www.ogdcl.com.pk http://en.wikipedia.org/wiki/Human_resources Human Resource management (7th edition) by Descenso. Management theory and practice, (4th edition), by Ernest Dale Principle of personnel management, (4th Edition), by Edwin B.Flippo Behavior in organizations, By H.Joseph Reitr. Personnel: The management of people at work (5th Edition) By Dale S.Beach Operations management/Theory and Practice (2nd Edition), By Joseph G.Monks. Business research for decision making, By Davis-Cosenza

COMSATS Institute of Information TechnologyPage 41

Chairman
Board of Directors
Managing Director
Company Secretary
Chief Staff Officer
E.D (Admin)
GM(Admin)
Manager(Admin)
General Managers
E.D (Finance/Accounts)
E.D (Exploration)
E.D (Drilling)
E.D (Corporate Affair)
Chief(Admin)
Dy. Chief(Admin)
Sr. AdminOfficers
AdmnOfficers
AdmnSection
Managers
ChiefAccountOfficers
SeniorAccountOfficers
AccountOfficers
Finance/AccountSections
General Managers
ChiefEngineers
SeniorEngineers
JuniorEngineers
Managers
PrincipleEngineers
ExplorationStaff /Sections
General Managers
Managers
ChiefEngineers
Dy. Chiefs(Corporate)
SeniorEngineers
JuniorEngineers
DrillingStaff /Sections
General Managers
Managers
Chiefs(Corporate)
SeniorCorporateOfficers
JuniorCorporateOfficers
CorporateStaff /Sections
PrincipleEngineers

Amjad JavedManager (Personnel)
Khursheed A. HashmiDCPO (Coord)/PS(G)
Khalid PervezD.M (B,D,Pen&EOBI)
Muhammad KhalidPO(D)
ORGANOGRAM OF PERSONNEL DEPARTMENT
Total Officers : 13Total Staff : 97Data Processing Officer
Sections of Personnel Department
A
COMPUTER
EOBI /PENSION
G
B
C
D
E
COORD
F
Muhammad Iqbal KhanProgrammerComputer Sec
Jiger MuhammadDCPO(C)
Mukhtar AhmadDCPO(A)
Rana ShaukatSPO(B)
Sabir HussainPO(F)
Sheikh FareedPO(E)
Sheraz Muhammad*D.P.O
Abid Aslam*D.P.O
Muhammad YounasPO(EOBI/Pen)