HRM IN

GROUP MEMBERS ARE:

The Government of Pakistan signed a long- term loan agreement with the USSR, where by Pakistan received 27 million to finance the equipment and services of Soviet experts for exploration.

The first 10 to 15 years were devoted to development of manpower and building of infrastructure to undertake much larger exploration programmes. OGDC's concerted efforts were very successful as they resulted in a number of major oil and gas discoveries between 1968 and 1982. Today, OGDCL is the largest Exploration and Production Company in Pakistan, listed on all three exchanges of the country as well as the LondonStock Exchange.

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 Programme (PSDP) as well as to meet its debt servicing obligations.

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 w.e.f. 23 October 1997 and is now known as OGDCL (Oil & Gas Development Company Ltd.).

Initial Public Offering Government 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 Pakistan’s capital markets.

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.

ORGANIZATIONAL STRUCTURE

 Main offices:OGDCL Head Office is located at Jinnah Avenue,

Blue Area Islamabad and Regional Offices are located in Karachi and Multan. Besides this OGDCL has its Liaison Offices in Hyderabad, Sukkur, and Quetta for operational activities.

Main departments:

The main departments of OGDCL are corporate department, exploration and production department and technical services department. Each of the three departments is further subdivided.

No of employees in OGDCL:In OGDCL employees consists of management

cadre, executive cadre and overall staff. Each cadre is divided into pay groups and again each pay group is divided on the basis of all over Pakistan merit employees and on the quota of particular provinces.

Management cadre:

The management cadre consists of M-I, EG IX and EG VIII and only 4 EG VIII employees are open merit based and rest of the 10 employees are from four provinces, FATA and AK on the basis of quota.

 Executive cadre:In the executive cadre consists of EG VII(executive

general), EG VI, EG V, EG IV, EG III, EG II,EG I and trainees. In it 143 employees are on the Pakistan merit base and rest of 1762 employees are on the basis of quota from four provinces, FATA and AK

Over all staff 

Over all staff consists of non-executive employees and trainees. There are 40 employees on the allover Pakistan open merit and rest of 9150 employees are from Singh, Punjab, NWFP, Balouchistan, FATA and AK on the basis of relevant provincial quota.

COMPETITION FACED

Being one of the largest companies, OGDCL faces the competition of many other oil producing companies. The major competition faced by the company is Pakistan State oil (PSO) as well as foreign companies, such as MOL (Magyar Olaj, meaning “Hungrian oil com”) etc.

RECRUITMENT AND SELECTION Recruitment process in OGDCL is conducted under the

recruitment section, which generates pool of potential candidates and acts as a real base to provide facilities of selection of new and old employees.

Recruitment and selection policies: All departments’ heads (EDs, GMs, Managers) are to fully

participate and contribute to the hiring process of their respective management staff in collaboration with HR Department. The hiring process/procedures shall be specified by the HR Department.

Candidates will be selected on the basis of applicable recruitment tests ( for entry level positionsonly ), qualification, experiences, ability, interest, aptitude and adoptability to the specific jobrecruitments, as already defined in the respective position description.

Practices of recruitment The recruitment procedure of the OGDCL is

mostly related with CSS of Pakistan .i.e. as under:-

Punjab 50%, Sindh rural11.4%, sindh urban 7.6%,  N.w.f.p 11.5%, Baluchistan 3.5%, Fata 04%, A.j.k 02, Gilgit Baltistan 10%...

The selection procedure is recently shortly changed and is as under:-

Written Test 40%, weightage Experience 30%, weightage Academic Qualification 30%weightage..

RECRUITMENT TYPES:

Regular employees Contract Basis employees Trainees – Special Trainees Classified appointment

SELECTION PRACTICES

Selection process in OGDCL starts with preliminary interview of the applicant who qualified the test. Depending upon the position, preliminary interviews board is formed, who conduct the preliminary interview. An applicant’s knowledge, skills and attitude is judged on the basis of following factors.

Education (academic and Professional), Previous experience, Applicable tests (for entry level position only), Interviews References.

The results of the candidates interviewed are compiled in the order of merit. After conducting the preliminary interview, the successful candidates are preceded for the selection interviews, conducted by selection board.

After selection interview, the successful candidates are required for pre-employment medical examination arranged by the HR department. In this way HR department completes the selection process and formulates the job offer. Job offer or appointment letter is delivered to the successful candidates. 

For the requirement of certain position the company re-engaged the retired employees who are beyond the age of 60, after mutually agreed terms and conditions.

SOCIALIZATION AND ORIENTATION

 All newly inducted employees shall undergo a comprehensive orientation program of up to one week duration comprising of class room presentation on all professional and organizational aspects by the various department heads or their nominees, along with field visits.

Socialization: Socialization starts with the move form an

outsider to being an insider after the job offer letter in the OGDCL. HR Department takes special attention to put the new employees at ease, because loneliness and a feeling of isolation are not usual for new employee.

Orientation: In the OGDCL all the new employees undergo

the comprehensive orientation process. It usually with the arrival of new employee in OGDCL and continue for the time period of not more than one week. It comprises of class room presentation on all professional and organizational aspects by various department heads or their nominee and field visits to the related fields, if necessary. Through the orientation process new employees are introduced to their job, to their colleagues, co-workers, peers, and bosses.

TRAINING: All employees (regular and contract) are provided the opportu

nity of training to accord equal opportunities for professional development and to ensure effective management It is seemed that need of job redesign and technological break through in OGDCL require training of employees.

Practices of trainings in OGDCL: To implement its policies OGDCL use the following practices:

OGTI (oil & gas training institute): OGDCL has well build training institution to conduct the training

of its employees. The training institute consists of OGDCL local instructors, outside local instructor (in case of absence of OGDCL instructor) and foreign instructor. OGTI provide the facility of sending employees to foreign for enhancing new skills, abilities and knowledge by joining training sections.

Local training programs:Local training programs are mostly on going job training

provided by the local trainers on the fields of OGDCL. Mostly these types of trainees are assigned job of training by the OGDCL.

Leadership training program:Leadership training programs are mostly for the leaders with in

the organization. This type of training is conducted by highly professional trainee from home country or from foreign expert assigned by OGDCL, this leads to overall organizational development as cited in the policy.

Advance management program: Advance management training programs are designed for higher

level management. In these types of training highly expert trainees conduct proper training sections for the employees.

Conferences:

Conferences are held in OGDCL on the regular basis by GDTI. These conferences not only enhance the real knowledge about the exploration and production but also present the true picture of the real working scenario.

Others:In addition job rotation, seminars,

lectures; committee assignments are also used for training.

DEVELOPMENT AND PROMOTION

Career planning is basically career orientation and career development. Career planning section is under the control of HR manager. It informs the employees of OGDCL about their future planning .i.e., 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 source of career planning here.

Promotion is the mixture of both merit and seniority in OGDCL.

Promotion practices: For giving promotion to

an employee its performance and relevant work experience is considered. Promotion Criteria in OGDCL for officers was adopted in 1994. Its main components are:

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

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% There are many important factors affecting the

promotion in OGDCL, such as experience for the post, number of the years in the vacancy, seniority, performance (ACR/PER Synopsis or qualification) prescribed qualification, requisite present executive group and finally disciplinary profile. 

The techniques the OGDCL practices for the career development are promotion of employees to higher levels and job rotation of the employees to various positions in different departments. They provide employees exposure to environment, which leads to the enhancement skills, abilities and knowledge. 

PERFORMANCE APPRAISAL SYSTEM

Performance review helps supervisors feel more honest in their relationship with their subordinates and feel better about themselves in their supervisory roles.

Practices:The scoring system is having a major impact

on effective performance appraisals.All the departments at OGDCL are enforced to

follow following performance rating:Outstanding  05%Very Good  20%

Normal  50% Marginal 20% Poor  05%→ 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%.

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.

REWARDS AND COMPENSATION

It is the policy of OGDCL to award both financial and non financial performance based rewards to its employees.

In OGDCL, both financial based and non financial based type of rewards are provided to employees. Financial rewards are actually performance based rewards, which include bonuses, one month additional salary etc, while non financial rewards are mostly letters of appreciation and recognition. Additionally rewards in the form of honorarium are also provided, allotting separate parking space serve as recognition and reward to high level positions.

Pay plansFor the officers pay ranges from 45000 to

100000 rupees, for assistant pay ranges from 25000 to 40000rupees and for workers pay ranges from 15000 to 20000.

 CompensationOGDCL provides 15% increment on

the best performance, 7% increment on average performance and it also provides performance bonus on net profit

OGDCL provides additional benefits to employees such as friendly working environment, pick &drop Service, allowances for food, heads in annual budget for staff, fire Department, air base (under  process) and fly camp (entertainment).

“EMPLOYEE OF THE MONTH”.

Another reward system in which: 1st place Employee of the Month is given Rs

3500 2nd place Employee of the Month is given Rs

2500 3rd place Employee of the Month is given Rs

1500

OGDCL also organizes Sports Events, Aftaar Parties, 1 Trip per year for all departments, travel allowances (ticket cost, food, accommodation) etc. to motivate its employees.

In addition various kind of medical benefits are also provided.

X-ray and laboratory diagnostic facilities are available at M.C Islamabad.

Medicines are provided to patients from entitle panelist chemist through prescription.

Ambulance equipped with first aid kit is available at medical centre Islamabad for 24 hours duty

SAFETY MEASURES AND COLLECTIVE BARGAINING

The Policy of ODGCL in carrying out all its activities is to provide a safe and healthy work place OGDCL believes that good health, safety and environment contributes to business success and that maintaining good health.

Collective bargainingIn OGDCL two main labor unions are found as

maintained below: All Employees Labor Union All Mazdoor Ittahad Union

These Unions in OGDCL aim to provide security and protect the rights of the employees and set the terms and the conditions through collective bargaining. These unions and management meets to negotiate improved wages, hours and working conditions and set agreements in the mutual benefit of management and employees. When ever management takes the against the rights of employees, these unions steps forward to protect the rights of employees by using different tools, such as Strikes ,Boycotts, and Corporate Campaign.

CONCLUSION

From this whole discussion we conclude here that though HR department has well formulated policies. There is strong need for the just implementation of such policies. Though each and every thing is written in papers about these policies but unfortunately practices in some cases arequite different. So practices must be in accordance of the policies and government should not use itsinfluence and provide freedom for the proper functioning of Human resource department.

References OGDCL . )).Retrieved from

http://www.ogdcl.com/about-us/History.htm OGDCL).   http://www.ogdcl.com/about-us/Strategy.htm 35