OGDCL
[email protected] SCHEME OF THE REPORT
1-Chapter 1 Chapter 1 covers the background of the study, purpose, scope, limitations, merits, methodology and scheme of the study. 2-Chapter 2 Chapter 2 covers the oil industry in Pakistan, history of OGDCL and the organizational structure comprehensively. This chapter also presents functions, projects, product line, mission and objectives as well. 3-Chapter 3 In chapter 3, the organizational structure and its structure is discussed comprehensively. More attention is given to the different departments working in and under OGDCL and how these departments operate. 4-Chapter 4 This chapter focuses on human resource department of OGDCL. It explains the administration and personnel department and its practices in the organization in detail. 5-Chapter 5 This chapter is all about SWOT analysis in which strength, weaknesses, opportunities and threats are discussed. 6-Chapter 6 In chapter 6, 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
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OGDCL
CHAPTER –1 INTRODUCTION 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 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 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.
1.1
Establishment of OGDC:
To review 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 programs 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 programmes.
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OGDCL 1.2
Initial Successes:
A 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. Two 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 programme. 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. 1.3
PGCL:
A 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 Balochistan with Asian Development Bank assistance. 1.4
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. 1.4.1
Aims and Objectives Of OGTI The aims and objectives of OGTI are to identify the training needs of the industry, offer
practical training programme 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 programmes 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 manner.
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OGDCL In-house basic training programmes 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 OGTI’S 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 . 1.5 BACKGROUND OF THE STUDY Oil industry is a lifeline for an economy. It is a world of oil exploration, oil refining and oil marketing. Pakistan understands the importance of this industry for its economic uplift. Therefore the government of Pakistan established OGDCL in 1961. OGDCL is the leading firm providing 23% of total consumption, saving Pakistan from imports and contributing to economy by paying different charges to the government. 1.6 PURPOSE OF THE STUDY This report is based on study carried out for the fulfillment of the degree requirement of the Master in business administration at the COMSAT Institute of information technology. The purpose of the study is to do practical work in field and apply the knowledge of classroom lectures to the real life situations. 1.7 SCOPE OF THE STUDY The scope of my work is focused on the working of Personnel and Human Resource Department. Review Section of this report not only explains department’s working but also flow of work activities among the sections. During the internship it, the observation was focused on internal managerial matters of OGDCL, i.e. work environment, organization structure, decision-making process, promotion criteria and all such matters. This research facilitates in SWOT Analysis.
1.8 LIMITATION OF THE STUDY No matter how efficiently a study is conducted, it cannot be perfect in all respects. This study was conducted in accordance with the objectives of the study; the study may not include broad explanations of facts and figures due to the nature of the study. Second: limitation, which affects the study, is the availability of required data was problem all the documents and files are kept strictly under lock and key due to their confidential nature. Third: the problem of short time period also
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OGDCL makes the analysis restricted as one cannot properly understand and thus analyze all the operations of an organization just in eight weeks. 1.9 MERITS OF THE STUDY The study done will benefit the finance students in particular and all type of Management students in general, because the analysis section of this report comprehensively encompasses all respects of OGDCL. Furthermore, OGDCL Head office Islamabad may also benefit from the recommendations made at the end of the report. 1.10 METHODOLOGY OF STUDY The data collected for analysis and review includes both primary and secondary data. The methods used for collecting primary and secondary data are as follows: 1.10.1 Primary Data Data collected for the first time is called primary data. The methods used to collect such data include: •
Personal observations and
•
Interview with organization’s employees.
1.10.2 Secondary Data The data collected earlier by someone else and which has gone through mathematical and statistical techniques after its collection, is called secondary data. Methods used to collect secondary data include: •
OGDCL annual reports
•
OGDCL brochures
•
Internship reports on OGDCL
•
Journal and
•
Newspaper
•
Internet
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OGDCL CHAPTER –2 PRESENT STATUS OF THE COMPANY
2.1 VISION STATEMENT To be a leading, regional Pakistani E & P Company, recognized for its people, partnerships and performance. 2.2 MISSION STATEMENT 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. 2.3 CORE VALUES
2.4
•
Merit
•
Integrity
•
Team Work
•
Safety
•
Dedication
•
Innovation OBJECTIVES
a. Developing E & P Work Flow Models for Data Integration and connectivity. b. Conduct geoscientific, algorithms and systems architecture research leading to the development of robust, interactive and user-friendly geosciences applications software that are tightly integrated into the workflow environment. c. Detailed testing of the developed applications to achieve the highest performance. d. Detailed testing of the developed applications to achieve the highest performance. e. Training and systems support to the end - users.
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OGDCL
2.5
HISTORICAL BACKGROUND OF THE COMPANY
2.5.1
Establishment 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. 2.5.2
Development 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 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 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. During the last 42 years OGDCL has grown into a technically and commercially viable organization. 2.5.3
Name & Address of Company Oil and Gas Development Company Limited (OGDCL). House, Jinnah Avenue, Blue Area,
Islamabad, Pakistan.
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OGDCL Telephone:
051-9209701
Fax No:
051-9209708
2.5.4
Name of Chief Executive
Mr. Najam Khan Hydar (Managing Director). 2.6
Product line In the product line of OGDCL, the following are its products by which it is earning profits: a. Crude Oil. b. Gas. c. LPG. d. Sulphur. e. Gasoline/High and Low Speed Diesel. f. Kerosene Oil. g. Naphtha. h. Solvent Oil.
2.7
FUNCTION OF OIL AND GAS DEVELOPMENT COMPANY
The main functions of the Corporation are:a. To plan, organize and implement programmes of exploration of development of oil and as resources. b. To carry out geological, geophysical and other surveys for the exploration of oil and gas. c. To carry out drilling and other prospecting operations to prove and estimate the reserves of oil and gas. d. To produce, refine and sale oil and gas
e. To perform other functions as the Federal Government may from time to time assign to the Corporation.
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OGDCL
2.8
PROJETS
2.8.1
QADIR PUR DEVELOPMENT PROJECT Qadirpur 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 20 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. 2.8.2
CHANDA DEVELOPMENT PROJECT Chanda oil field, the over 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. 2.8.3
BOBI DEVELOPMENT PROJECT First 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 2.8.4
DHODAK PLANT ENHANCEMENT AND DAKHNI EXPANSION Dhodak plant enhancement and dakhni expansion projects are also in progress and are
expected to be completed by some time completion, the enhancement of production of oil, gas, LPG and sulpher.
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projects will result in substantial
OGDCL
Mega Projects Projects
Completion
Estimated Cost
LPG: 25 MTD
Chanda Development
Prod Capacity
January, 2007
$ 9 Million
Gas: 8.5 MMscfd
Project Oil.: 720 BPD
Dakhni Expansion
February, 2009
Rs.1803 Million
Project
Gas: 12MMscfd LPG: 12 MTD Sulphur: 80 MTD a). To maintain plateau of gas
Qadirpur Compression Project
September, 2008 December, 2007
$ 160 Million
production 650 MMscfd b). Additional 100 MMscfd gas
Dhodak Expansion Project Uch-II Development Project TAY Development Project
Sinjhoro
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A Bid to be invited afresh
Oil.: 4000 BPD $ 50 Million Gas: 64 MMscfd LPG: 258 MTD
March, 2009 (As conveyed by
$ 250 Million Gas: 200 MMscfd
PPIB) A Bid to be invited afresh
A Bid to be invited afresh
Oil.: 2500 BPD $ 54.1 Million Gas: 28 MMscfd LPG: 85MTD Oil.: 2940 BPD $ 89 Million
Gas: 25 MMscfd LPG: 224 MTD
OGDCL Chapter 3 ORGANIZATIONAL STRUCTURE
3.1
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, Sukkhur, and Quetta for operational activities. The overall organizational structure / organogram is as under 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:
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1.
OGDCL Head Office, Jinnah Avenue Islamabad.
2.
Pirkoh Gas Company Private Limited, Islamabad.
3.
OGDCL Regional Office, Shafi Chamber, Karachi
4.
OGDCL Regional Office, Multan
5.
OGDCL Liaison Office, Quetta
6.
OGDCL Liaison Office, Sukkur
7.
OGDCL West Wharf Office, Karachi
OGDCL
8.
OGDCL Base Store, Islamabad
9.
OGDCL Base Store, Khadiji, Karachi
10.
OGDCL Base Store, Korangi
11.
OGDCL Base Store, Kot Addu
12.
OGDCL Base Store, Kot Sarang
13.
Medical Centers, Islamabad, Rawalpindi & Karachi
14.
OGDCL Workshops, Islamabad
15.
Oil & Gas Training Institute, Islamabad.
3.2 MAIN DEPARTMENTS
Corporate Department
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1.
Administration Department
2.
Human Resource Department
3.
Personnel Department
OGDCL 4.
Security Department
5.
Legal / Regulation Department
6.
Communication Department
7.
Procurement Department
8.
Stores Department
9.
Finance & Accounts Department
10.
Audit Department
E&P Departments 1.
Exploration Department
2.
Exploitation Department
3.
Production Department
4.
Process Department
Technical Services Department
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1.
Drilling Department
2.
Data Logging Department
3.
Mud Engineering Department
OGDCL 4.
Well Services Department
5.
Cementation Department
6.
Geological Well Supervision Department
7.
Engineering Department
8.
Wire line Logging Department
9.
Geological Department,Data Processing Department
3.3 Organizational Structure
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OGDCL
Chairman Board of Directors Manag ing Director Company Secretary
E.D (Admin) GM (Admin) Manag er (Admin) Chief (Admin) Dy . Chief (Admin) Sr. Admin Off icers Admn Off icers Admn Section
E.D (Finance/ Accounts) General Manag ers
Chief Staff Off icer
E.D (Exploration)
E.D (Drilling)
General Manag ers
General Manag ers
Manag ers
Manag ers
Senior Account Off icers Account Off icers Finance/ Account Sections
Chief Engineers
Chief Engineers
Principle Engineers
Principle Engineers
Senior Engineers
Senior Engineers
Junior Engineers
Junior Engineers
Exploration Staff / Sections
Drilling Staff / Sections
BOARD OF DIRECTORS
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General Manag ers Manag ers
Manag ers
Chief Account Off icers
E.D (Corporate Aff air)
Chiefs (Corporate) Dy . Chief s (Corporate) Senior Corporate Off icers Junior Corporate Off icers Corporate Staff / Sections
OGDCL
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OGDCL
Jalaluddin Qureshi
Page 17 of 61
OGDCL
3.4
COMMENTS ON THE ORGANIZATIONAL STRUCTURE
All policy related issues are dealt by the board of Directors that is headed by a non-executive Chairman and a full time Managing director. The general direction, policies and affairs of the Company vests in a Board of Directors, which consists of 01 Chairman, 10 Directors and 01 Managing Director (MD). MD is responsible for operational and other activities. The OGDCL has been re-organized during the last few years; it now operates much purely as Oil Company does. Emphasis is on Professional Competence and getting things done. OGDCL can broadly be divided in to following three companies: Corporate Exploration & Production (E& P ) Technical Services The whole organization has been streamlined on the functional basis and it has emerged as an efficient unit, while speed and competence are its Hall Mark. It is now divided into separate departments and each department is in a position to work independent business unit. For effective operational activities, different Executive Directors performs following activities in consultation with General Managers, who are assisted by the concerned Departmental Managers:
The Executive Director Exploration: Supervises all the geophysical and geological and exploration activities and is assisted by different Manager. Executive Director Drilling: when a potential oil or gas field has been identified through seismic surveys, it is then drilled to assess the quality and quantity of the deposits. This process is achieved through drilling. ED (Drilling) is responsible for all the drilling activities carried out by OGDCL in the country.
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OGDCL Executive Director Admin: Responsible for management of personnel. The administration department manages all the activities from recruitment to training and development.
Executive Director Corporate Affairs: Looked after the activities of planning of different development programme and monitor the implementation of that program. It coordinates with all the department of OGDCL and prepares a strategic plan for the activities of OGDCL. This department also liaison between OGDCL different Ministries.
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OGDCL
3.5
NO OF EMPLOYEES
DOMICILE AND GROUP-WISE SUMMARY OF OVERALL OFFICIALS PAY
DOMICILE
GROUP MeritPUNJAB
SINDH URBAN RURAL TOTAL
TOTAL
NWFP BALUC- FATA
AK
IN THE GROUP
HISTAN MANAGEMENT CADRE
M-1 EG IX EG VIII
0 0 4
0 2 3
0 1 0
0 0 1
0 1 11
1 0 0
0 1 0
0 0 0
0 0 0
1 4 9
6 18 36 29 57 17 28 13 205
1 13 49 36 46 39 47 20 252
7 31 85 65 103 56 75 33 457
11 31 28 34 28 38 18 15 205
1 10 11 6 9 7 7 11 63
1 4 10 14 7 8 3 8 55
0 5 5 6 3 3 2 6 30
60 195 274 262 356 338 252 154 1905
EXECUTIVE CADRE
EG VII EG VI EG V EG IV EG III EG II EG I TRAINEES TOTAL
3 12 19 28 28 22 15 12 143
37 102 116 109 178 204 132 69 952
OVERALL STAFF
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OGDCL
PAY
DOMICILE
GROUP MeritPUNJAB
SINDH URBAN RURAL TOTAL
TOTAL
NWFP BALUC- FATA
AK
IN THE GROUP
HISTAN NON EXECUTIVE CADRE
16 15 14 13 12 11 10 9 8 7 6 5 4 3 2 1 TRAINEE TOTAL
2 2 0 0 15 0 4 3 5 0 3 0 0 0 0 0 6 40
3.6
163 106 253 4 623 1 148 425 164 93 670 99 264 198 324 1392 27 4954
49 12 58 2 59 0 24 45 35 11 94 19 28 39 70 103 1 649
14 25 109 0 60 0 56 67 95 16 166 9 79 31 220 705 2 1654
63 37 167 2 119 0 80 112 130 27 260 28 107 70 290 808 3 2303
22 20 58 1 113 0 34 79 30 5 102 23 30 25 41 136 8 727
2 0 7 0 14 0 6 20 11 8 50 5 63 29 128 566 8 917
1 0 6 0 5 0 2 2 2 0 7 0 0 2 1 2 0 30
5 5 13 0 31 0 12 12 9 3 17 13 17 26 14 45 1 223
258 170 504 7 920 1 286 653 351 136 1109 168 481 350 798 2949 53 9194
BUSINESS VOLUME OGDCL is using the modern seismic technology for improving its ability to discover
the unexploited oil and gas potential in the country. A number of major institutional reforms and improvements have been implemented in all areas of operations enabling the company to take up the challenge of making the country self-reliant in the energy sector. As of August 2006, OGDCL has drilled 187 exploratory wells and 239 development wells since inception. The company has made 60 discoveries with an excellent success ratio
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OGDCL of 1:3. In a short span of only three years OGDCL was successful in making 10 discoveries, 02 Oil discoveries and 08 gas/condensate discoveries. Out of which 09 are in Sindh and 01 in NWFP. The discovery of well at “CHANDA” kohat is the first discovery in NWFP and it will open a new era for hydrocarbon exploration in NWFP. OGDCL financial performance has been consistently improving with sustainable growth since the time it became a self-financing Company. The Company is the single largest contributor of more than Rs. 37 billion to the national exchequer in the shape of royalty, duties, taxes and other payments. Its share in the total Oil & Gas production has been 34% and 21% respectively in the year 2005-06. Its business volume for the last five years has shown a steady growth as indicated in the schedules given on next page:
Business Volume for last Five Years Product
Measurement
2001-02
2002-03
2003-04
Thousands Barrels
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2005-06
05
Scale Crude Oil
2004-
8,907
8,535
8,705
9,413
9,941
OGDCL
Gas
MMcf
161,534
217,927
LPG
M.Tons
93,004
77,402
93,136
90,304
101,322
Sulphur
M.Tons
13,445
16,670
23,234
15,889
18,917
White
Thousands
1,038
998
989
859
890
Petroleum
245,537 274,006
277,408
Barrels
Quantities Thousands Barrels
Products
Oil Production 10500 10000 9500 9000 8500 8000 7500 2001-02 2002-03 2003-04 2004-05 2005-06 Years
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300,000
ls
rre
Ba
s
Gas Production
nd
sa
ou
Th
s
itie
ant
Qu
OGDCL
250,000 200,000 150,000 100,000 50,000 0 2001-02
2002-03
2003-04
2004-05
2005-06
2004-05
2005-06
2004-05
2005-06
Quan
Years
Tons
M.
tities
LPG Production 120,000 100,000 80,000 60,000 40,000 20,000 0 2001-02
2002-03
2003-04 Years
Tons
M.
ties
Q
uanti
Sulphur Production 25,000 20,000 15,000 10,000 5,000 0 2001-02
2002-03
2003-04 Years
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OGDCL
The Net sales & other revenues for the last five years are as under: (Rupees in Million) YEARS
2001-02 2002-03 2003-04
2004-05
2005-06
Net Sales Revenue
26,209
39,892
41,845
47,058
52,641
Net Sales Revenues 60000 50000 Sales 40000 Revenues 30000 (Rs in Millions) 20000 10000 0 2001-02 2002-03 2003-04 2004-05 2005-06 Years
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OGDCL The business volume and the sales revenues are the reflection of an operator’s management judgment, execution and skills. OGDCL‘s financial performance has been consistently improving since becoming a self-financing entity.
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OGDCL
CHAPTER – 4 ADMINISTRATION AND PERSONNEL (HR) DEPARTMENT
ORGANOGRAM OF PERSONNEL DEPARTMENT AmjadJaved Manager (Personnel)
Sheikh Fareed PO(E)
Khalid Pervez D.M (B,D,Pen&EOBI)
Jiger Muhammad DCPO(C)
Mukhtar Ahmad DCPO(A)
Sabir Hussain PO(F)
Rana Shaukat SPO(B)
Muhammad Khalid PO(D)
Khursheed A. Hashmi DCPO (Coord)/ PS(G)
Muhammad Younas PO (EOBI/Pen)
Muhammad Iqbal Khan Programmer Computer Sec
Abid Aslam *D.P.O
Sections of Personnel Department
Total Officers : 13 Total Staff Data ProcessingOfficer
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: 97
A
B
C
D
E
F
G
EOBI / PENSION
COMPUTER
COORD
Sheraz Muhammad *D.P.O
OGDCL
DESIG NATION WISE B REAKUP
O FFIC ERS Manager Dy. Manager/Chief Dy Chief Personnel Off Sr. Personnel Officer Personnel Officer Programmer (Computer) Data Processing Officer Sub-total STAFF Superintendent Stenographer/Steno typist Admin Assistant Jr. Admin Assistant LDC/Typist Record Sorter/Daftaries Naib Qasid / Helper Sub-total OVERALL TO TAL
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: : : : : : : :
01 01 03 01 04 01 02 13
: : : : : : : : :
10 03 24 20 18 06 16 97 110
OGDCL
FUNCTIONS OF PERSONNEL DEPTT.
1. Maintenance of service record of employees from their induction to retirement and beyond. 2. Transfers –Postings. 3. Maintenance of seniority. 4. Handling of Personnel grievances. 5. Processing of Pension / EOBI and retirement cases. 6. Implementation of CBA Management’s agreement’s after every two year’s duration.. 7. Maintenance of Database-Computerization.
8. Responses to Senate, National Assembly Questions / Other Government Agencies.
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OGDCL
4.1
PERSONNEL (HR) DEPARTMENT FUNCTIONS
4.1.1
Maintenance of personnel files
As 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. 4.1.2
Correspondence
The 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. It’s called correspondence. 4.1.3
Pay Scale and Fixation.
It is also the function of personnel department that they fixed the pay scale for employees. There are three types of employees in OGDC.
1.
Executive Group
2.
Staff
3.
Contractual Staff
(EGI - EGIII) (1 - 16)
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.
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OGDCL
Fu ture Targets/Goals with Time Frame
To efficient ly facilitat e t he core funct ionalit ies as displayed and required by the core technical department s of oil and gas business. 1.Su ccession Plan . S r. No.
Exi sting Manpowe r
Hel d Posi tion
1.
Manager Personnel
01
-
2.
C.P.O/Dy. Managers
01
01
3.
Dy.Chief P ersonnel Officers
03
-
01
4.
Sr.Personnel Officer
01
-
-
5.
Personnel Officer
04
-
01
6.
Asstt . P ersonnel Officer
-
-
7.
Superint endent s
09
-
Through a) Open advert isement on Merit . b) P romot ions
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Office rs Re tiring by 200506
Plans to Fi ll the Gap up to 2010
01
OGDCL
1. 2. 3. 4. 5. 6. 7. 8.
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Maintenance of service record of employees from their induction to retirement and beyond. Transfers –Postings. Maintenance of seniority. Redressed of Personnel grievances. Processing of Pension/EOBI & retirement cases. Implementation of CBA Management’s agreement’s after every two year’s duration. Maintenance of Database-Computerization. Responses to Senate, National Assembly Questions/Other Government Agency.
OGDCL 4.2
PUBLIC RELATION DEPARTMENT
Public 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 OGDCL’s 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.
4.3
HOUSING SECTION
Housing section is also one of the permanent parts of OGDCL Islamabad therefore it performs the function for OGDCL’s 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.
4.3.1
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.
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OGDCL 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.
4.4
TRANSPORT SECTION
The 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. 4.4.1 Vehicle for Entitled Officer Manager they provide official vehicles for duty. 4.4.2 Vehicle for General Duty For each department they provide special vehicle for emergency cases. 4.4.3 Vehicle for Pick and Drops Large 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. 4.4.4 Verifier Field Duties. At each field from 5 to 6 vehicles ready every time for field duties at the time of emergency. 4.4.5 Vehicles for Foreigners Similarly some vehicles are available for engineers and other staff.
4.5
ORGANIZATION OF LEGAL SERVICE DEPARTMENT
4.5.1
Legal Service Department
Legal service department is one of the most simple and little department but its functions are always maintained on climax position in OGDCL. To deal with court and legal cases, whenever occur in OGDCL. If any body from outside accused on OGDCL in any affair, then legal service department stands from management side of OGDCL. They have their own advocates, but mostly they consult with outside advocates on various fees. On the other side when OGDCL claims on any person or body of
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OGDCL person, so at this also they deals the cases same as above. But when inside OGDCL any employee appeal against any officer under the section rule 25, so if the case is lower level then legal service department delete that claim by negotiation with employee. After that if the employee is frustrated then he can go to the court for appeal. It is not essential for employee as well as for legal service department that they hire advocate for case. Employee can witness in court personally, but legal service department are always advocates from the management side. It is the information from the department that mostly cases are go in favors of OGDCL. 4.5.2
Medical Center Department Organogram
4.5.3 Manager Medical Services It is the head of the medical services and is responsible for,
To manage the medical centers of the corporation.
To provide medical facilities to the corporation employees.
4.5.4 OGDCL Medical Centre Islamabad Function [
To check the OPD patients
To check the OPD bills.
Every year medical centre make an arrangement with any drug store on 6% discount. It is a permanent discount so after check up, the patient may receive the drugs from that particular drug store. For verification the owner of the drug store send bills to the DCMO at the each month. DCMO checks and make verification and signed on those bills. After that they refer the bills to the account department for payment. Vaccination programmed is also processed in MC. They keep money for vaccination. 4.5.5 Diagnostic Facilities X-ray and laboratory diagnostic facilities are available at M.C Islamabad. 4.5.6 Hospitalization
Patients are referred for hospitalization as and when required to hospital/nursing, homes /specialist on the panel of the corporation and re-imbursement is allowed when such facilities are not availed.
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OGDCL 4.5.7 Medicines Medicines are provided to patients from entitle panelist chemist through prescription. Emergency drug are also kept at both medical centre to meet any emergency. 4.5.8 Vaccination Vaccination facilities for children are available at both medical centers and every Monday is specially fixed for this purpose. 4.5.9 Ambulance Ambulance equipped with first aid kit is available at medical centre Islamabad for 24 hours duty.
4.6
PENSION AND WELFARE SECTION
4.6.1
Welfare Section
It is just like a bridge between the union and management. It is also a proper channel between the two bodies. 4.6.2 Functions of Welfare Section Various 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 income
Similarly 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.
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OGDCL 4.6.3
PENSION SECTION
Pension 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 can not 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.
4.7
RECRUITMENT SECTION
Recruitment section is one which is a real base to provide facilities of selection of new and old employees. 4.7.1
Functions of Recruitment Section
Recruitment section basically performs the following functions. Analyze the recruitment of employees in each department.
To recruit new candidates as a trainee.
To recruit the experimental employees for higher jobs.
To take examination and interview of new and experimental candidates.
4.7.2
Organogram
After 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:Merit
10%
Punjab
50%
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OGDCL Sindh rural
11.4%
Sindh urban
7.6%
N.W.f.P
11.5%
Baluchistan
3.5%
Fata
04%
A.j.k
02%
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%weitage
Experience
30%weitage
Academic Qualification
30%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 to and to analyze the courage, boldness communication skill, convincing power and also his dealing with other people.
Recruitment types Regular Contract Basis Trainees – Special Trainees Hiring through Contractor Classified appointment
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OGDCL
SELECTION COMMITTEES FOR RECRUITMENT FOR EG-VIII AND ABOVE Managing Director and Members of Human Resource Committee. FOR EG-VII AND EG-VI Managing Director
Chairman
Executive Director (Admin) / G.M. (Admin)
Member
Executive Director (Concerned)
Member
Professional / Expert in the relevant field/discipline
Member
Preferably having PhD or Master degree in the Relevant subject. Head of Department Concerned
Member
FOR EG-V TO PS-15 Executive Director (Admin)
4.8 4.8.1
Chairman
Executive Director (Concerned)
Member
Head of Department Concerned
Member
Head of Department Concerned Professional/Expert
Member
Head of Department Concerned
Member
DISCIPLINE SECTION Functions
Discipline section deals with those matters which depend upon any misbehavior, mis-conduct or any offence which occur in fields and offices by the employees. In OGDCL there is delegation of powers
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OGDCL .Every higher authority can take action against that evil. After taking action he send a report to discipline section then discipline section help him in penalties with the approval of executive directors and chairman under the rule of 1973. 4.8.2
ODGCL Servants (Efficiency and Discipline) Rules-1973.
Government servant (efficiency and discipline) rules 1960 which were adopted in the draft service rules vide part-II statutory notification (SRO)
govt of Pakistan cabinet secretariat(established
division) notification No.SRO-1213(1)/73 published in the gazette of Pakistan enter ordinary dated 18-08-1973.These new rules have been adopted by the oil and gas developing company limited and matters relating to efficiency and discipline of the employees shall henceforth be governed by the OGDCL servants rules 1973 being issued as annex. 4.8.3
Penalties
The following are the minor and major penalties namely: Minor Penalties
Censure;
With holding for a specific period, promotion are increment, otherwise then for unfitness for promotion financial advancement, in accordance with the rules or orders pertaining to the service or post.
Stoppage for a specific period, at an efficiency bar in the time scale, other wise then for unfitness to cross such bars.
Recovery from the pay of the whole or any part of any pecuniary (minority) loss caused to corporation by negligence or breach of orders.
Major Penalties
Reduction to a lower post or time scale, or to a lower stage in a time scale .
Compulsory retirement.
Removal from service and
Dismissal from service.
Removal from the service does not but the dismissal from the service does disqualify for future in this rule, removal or dismissal from service does not include the discharge of a person.
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OGDCL 4.84
Appeal
There will be no appeal against minor penalties. However, a person on whom major penalties is imposed shall have a right to appeal to the next higher authorities. Provided that whether the penalties are imposed by order of the board of directors, there shall be no appeal but the person concerned may apply for review of the order . Note The chairman’s approval is necessary at all the stages for issuing the show cause notices and enquiry letter for awarding the final punishment.
4.9. CAREER PLANNING CELL: Career Planning Cell attained independent status in 1992. Before, it was the Personnel department dealing in; 4.9.1
Career Planning
Career planning is basically career orientation and career development. Career planning section is under the control of personnel manager. It informs the employees of OGDCL about their future planning. That what he performs his duty and also they prescribed to the employees their operational set up. It informs the employees that what they will do after 5 years And 10 years. Promotion is main figure of career planning section. The elaboration is as under:The promotion and recruitment criteria of the corporation was notified vide O. M.N.AA, 0103-15 dated 12 November, 1984, where after a few clarifications were also issued from time to time. However, there have been some problems in application of the promotion criteria in some cases. Therefore to remove these difficulties, the promotion criteria has been reviewed and revised under the guidance of the executive directors. The revised promotion criteria are notified herewith which shall be effective from first July, 1991. 4.9.2 Performance appraisal Yearly performance reviews are critical. Organizations are hard pressed to find good reasons why they can’t dedicate an hour long meeting once a year to ensure the mutual needs of the employee and organization are being met. Performance review help supervisors feel more honest in their relation ship with their subordinates and feel better about themselves in their supervisor roles. Subordinates
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OGDCL are assured clear understanding of what expected from them, their own personal strengths and areas for development and a solid sense of their relationship with their supervisor. Avoiding performance issues ultimately decrease morale, decrease credibility of management, decreases the organizations overall effectiveness and wastes more of management’s time to do what isn’t being done properly. The scoring system is also having a major impact on effective performance appraisals. The accuracy and reliability of any scoring system increases with full descriptions/definitions, and better still with examples for each score band. This gives everyone the same objective scientific reference points, and reduces subjectivity. 4.9.3 Performance appraisal process The performance appraisal process typically consists of four related steps as follows:
Establish a common understanding between the manager (evaluator) and employee (evaluate) regarding work expectations; mainly, the work to be accomplished and how the work is to be evaluated.
Ongoing assessment of performance and the progress against work expectation. Provisions should be made for the regular feedback of information to clarify and modify the goals and expectations, to correct un acceptable performance before it was too late, and to reward superior performance with proper praise and reorganization.
Formal documentation of performance through the completion of a performance and development appraisal form appropriate to the job family.
The formal performance and development appraisal discussion, based on the completed appraisal form and ending in the construction of a development plan.
All the departments at OGDC are enforce to follow following performance rating Outstanding
05%
Very Good
20%
Normal
50%
Marginal
20%
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OGDCL Poor
05%
Quantification of ACRs (Example) (EG-II to EG-IX) Existing Quantification of ACRs is carried out as explained in the following hypothetical example ***Formula
**Formula
A1 = A = B = C = D =
Very Good Good Average Below Average
Very Good 10 Marks Good 07 “ Average 05 “ Below Average 01 “ Poor 00 “
Year
***Integ-rity
1998 1999 2000 2001 2002 Score
Good Good Good V. Good Good 38
***Work Output Quality Good Good Average Good Average Average V.Good Good V.Good V.Good 37 (36.5) 36
12 Marks 09 “ 05 “ 00 “
**Overall 1998 1999 2000 2001 2002
Good Good Average V.Good V.Good 47
(Out of 60) Integrity Work Overall Grading
46 44 47
Minimum
*44
***Govt Memo Ref # 10(10)-85-C dated 11-08-1985 ** OGDC Policy # AAO103-15 dated 13-04-1994 * As per promotion criteria minimum of ACR components marks are added in the score of qualification, experience, training, technical publication, etc. explained as;
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ACRs Requisite Qualification Training course (4 months duration) Technical Publication Relevant experience
44 05 02 18
Marks Obtained
69%
OGDCL Performance Evaluation (ACRs) No. of ACRs
•
Officers
1600
Staff Employees
4438
Issuance of ACR forms to all departments according to time schedule. (15th December of each year)
•
Receipt of ACR forms. (Ist 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
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OGDCL Difficulties (ACR)
•
ACRs are not filled/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
4.10 BASIC COMPONENTS OF THE PROMOTION CRITERIA Basic component of the promotion criteria with their relatives weight age would be as under;1. Qualification
15%
2. ACR’s
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 incharge of the section.
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OGDCL
PROMOTIONS
OFFICERS Promotion Criteria for officers was adopted in 1994. It’s main components are: ACRs
:
60%
Qualification
:
15%
Technical Publications
:
05%
Relevant Experience
:
20%
Seniority cum fitness is the guiding principal in promotions
PROMOTIONS STAFF EMPLOYEES The promotion cases of Staff are evaluated as per Promotion Criteria of 1991 Its highlights are: ACRs
:
25%
Qualification
:
15%
Seniority
:
05%
Experience
:
15%
Evaluations
:
40%
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OGDCL Promotions – Flow Chart Recommendations of the Head of the Department
Incomplete/Pre-mature cases returned. Cases in order retained for processing
Evaluation Sheet, Seniority, ACR Synopsis, Disciplinary Profile and other formalities completed
Completed case submitted before Departmental Promotion Committee
Approval of the Managing Director/Board of the Directors
Promotion Notification
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
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OGDCL Promotions Average – Year-wise Officers
Year
Average
2003
01 Officer promoted daily
2004
03 Officers promoted in five days
2005
01 Officer promoted in three days
2006
03 Officers promoted in four days
Promotions Average – Year-wise Staff Employees Year
Average
2003
05 Employees promoted in two days
2004
02 Employees promoted daily
2005
01 Employee promoted daily
2006
01 Employee promoted in three days
Promotions Average – Year-wise Grand Total Officers & Staff Promoted
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OGDCL
Year
Average
2003
07 Officers & Staff promoted in two days
2004
08 Officers & Staff promoted in three days
2005
04 Officers & Staff promoted in three days
2006
01 Officer & Staff promoted daily
Promotions – Year-Wise (2002-2006 Year wise performance in connection with promotions for last five years is as follows:Officers
Officers
(EG-VI & above)
(Upto EG-V)
2002
58
247
737
2003
0
191
624
2004
48
44
300
2005
35
187
96
2006
0
22
365
Years
Staff
Difficulties (Promotions)
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OGDCL •
CPC invites recommendations to reach end February and end August each year. They are seldom received according to schedule. Consequently, CPC has great difficulty in meeting the promotion dates of Ist July and Ist December each year
•
Cases are received with inadequate information causing wastage of time and un-necessary correspondence
•
There is lack of effective communication among departments which causes un-necessary wastage in time and efforts
•
Absence or lack of clarity of promotion channels
•
Career Planning begins from the Department of the individual. H.O.D has obligation to pay special attention to the Career development of those in his Department. Recommendations received in CPC very rarely have that aspect properly dealt
Suggestions •
Computerization of record is of great essence for speedy disposal and accuracy of record
•
CPC is keen for digitalizing ACRs and related record. Consultancy services of a reputed company will greatly help in this direction
•
Training of staff and officers of CPC in the field of computerization is essential and primary step
•
On line information system may be developed among Personnel, CPC, Administration and other related departments. This will speed up information and provide updated and accurate data
•
Promotion criteria should incorporate changes reflecting ongoing trends. CPC may be involved in appraising the management on the current issues and difficulties in practical application. (Proposals for improvement in Promotion Criteria have been recently submitted)
Statement of Promotion – Officers
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OGDCL
Executive Group
2006
EG-VIII to EG-IX
0
EG-VII to EG-VIII
0
EG-VI to EG-VII
0
EG-V to EG-VI
0
EG-IV to EG-V
5
EG-III to EG-IV
6
EG-II to EG-III
11
EG-I to EG-II
0
Total
22
Statement of Promotion – Staff
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OGDCL
Pay Scales
2006
Staff to EG-II
18
Staff to EG-I
23
PS-16
0
PS-15
0
PS-14
27
PS-13
0
PS-12
250
PS-11
0
PS-10
0
PS-09
41
PS-08
0
PS-07
0
PS-06
6
PS-05
0
PS-04
0
PS-03
0
PS-02
0
Total
365
Statement of Promotion – Staff
Pay Scales
2003
2004
2005
2006
Total
Staff to EG-II
4
0
35
1
40
Staff to EG-I
36
61
12
24
143
PS-16
16
10
43
19
88
PS-15
19
16
9
0
44
PS-14
44
55
3
28
130
PS-13
1
0
1
0
2
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OGDCL
PS-12
26
83
25
265
399
PS-11
0
0
0
0
0
PS-10
19
5
3
7
34
PS-09
108
54
6
43
211
PS-08
21
62
4
2
89
PS-07
45
0
10
0
55
PS-06
220
66
52
18
356
PS-05
9
5
67
36
117
PS-04
17
191
1
0
209
PS-03
142
16
25
0
183
PS-02
0
0
4
0
4
Total
737
624
318
96
1775
CHAPTER –5 SWOT Analysis table for OGDCL
STRENGTHS
WEAKNESSES
Highly Skilled Professionals
Political Influences
Vast Experience
Limited Customer
Joint Ventures with Foreign
Limited Marketing
Oil Companies Working in
Opportunity
Pakistan Major oil & Gas Company of
Political Appointments
Pakistan High market cap and revenue
Inadequate Financing for offshore drilling
OPPRTUNITIES
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THREATS
OGDCL
Expansion towards a
Latest Technology
multinational Company Expansion towards
unproductive wells
Exploration & drilling Activities Marketing Opportunity for
World Market
LPG & Sulphur Off-shore drilling
Safety Issues / Tribal Issues
SWOT ANALYSIS SWOT Analysis is conducted to identify the organizational strengths (S), organizational weaknesses (W), environmental opportunities (O), and environmental threats (T). Each 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. OGDCL‘s SWOT Analysis is given below;
5.1
STRENGTHS
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.
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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. 5.2
WEAKNESSES Outdated procurement procedures and stores inventory management system of OGDCL undermines OGDCL‘s 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.
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OGDCL
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.
5.3
There is no check to measure performance of the employees.
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.
5.4
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.
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OGDCL
CHAPTER – 6
PROBLEMS AND SUGGESTIONS During my stay in OGDC head office, I have observed some weakness in the organizational setup functioning of various departments. 6.1
PROBLEMS
1.
Unawareness of Employees from Latest Technological Changes.
Technical 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. 2.
Lack of Career Planning Of Employees.
OGDC 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. 3.
Unfair Utilization of Transport.
OGDC have a large number of vehicles, mostly at sites but they are misused by their location in charge. While officers of Equ. Grades 19 are not entitled to have official transport. OGDC also provides pick and drop facilities to stop and officers to some extent with few Buses / Cosdters but it is not sufficiently only few percent get benefit from this. 4.
Unnecessary Purchases at Sites
Due to less accountability and more delegate powers, location incharge use their powers towards petty cash purchases from local market. OGDC have a centralized procurement department but stocks are accumulated in the absence of the strict rules and policies regarding purchases and stock position.
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OGDCL 5.
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 draw back of this method is that it blocks the way for new generation which carry new ideas and knowledge. Further more the recruitment system is also influenced by the nepotism of politicians.
6.
Injustice Way of Awarding Training.
Training 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. 7.
Promotion Policy.
Promotion 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. 6.2 SUGGESTIONS During my stay in OGDC I carefully observed the major weakness. For this weakness, I suggested the following practicable remedies to improve the existing practices. 1. 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 Pakistan’s economy 2. OGDC have a plot at blue area Islamabad for office building, the construction work may be started as soon as possible as OGDC have no shortage of funds, and the only mile stone in this way is administrative approval. 3. 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. 4. Al though the management in recent past takes some initiative in this area, a new department “career planning department “ is created and few posting were made in this department . But to achieve excellent and positive results rapid operations are too much essential.
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OGDCL 5. Management should try to develop maximum and minimum store inventory levels and also 100% physical verification to be done at least once a year. The powers of location in charges should be reviewed and minimized. 6. Management must take necessary action to control costs i.e. administrative and selling expenses 7. 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.
•
If appraiser make appraising based on actual performance it will decrease heart burning problem and employees’ efficiency will be increased.
•
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.
6.3
Conclusion
The production of oil and gas is contributing a lot in reducing the country’s import bill. Power generation by IPPs (Industrial Power Projects) in the country is a major source of energy. OGDCL’s 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 requirement of the IPPS but also contributing a lot towards meeting the demand of electricity in the country. OGDCL’s 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 programme 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.
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OGDCL 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 who 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 be given a targets and their performance indicators be clealrly 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.
BIBILLOGRAPHY 1. Human Resource management ( 7th edition) by Descenso. 2. Management theory and practice, (4th edition),by Ernest Dale 3. Principle of personnel management, (4th Edition), by Edwin B.Flippo 4. Behavior in organizations, By H.Joseph Reitr.
5. Personnel: The management of people at work (5th Edition) By Dale S.Beach 6. Operations management/Theory and Practice (2nd Edition), By Joseph G.Monks. 7. Business research for decision making, By Davis-Cosenza
8. www.ogdcl.com.pk
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OGDCL
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