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S.V Institute of Management, Kadi

INDEX

S.NO.

Particulars

PAGE

NO.

I. TITLE PAGE

II. PREFACE

III. ACKNOWLEDGEMENT

IV. EXECUTIVE SUMMARY

1 CORPORATE PROFILE 1

2 INTRODUCTION OF THE ONGC 3

2.1 Vision & Mission 6

2.2 Objective of Company 6

2.3 Organizational set of ONGC 7

2.4 Ahmedabad Asset 8

2.5 Management 10

2.6 Financial Management 12

2.7 HR Management 14

2.8 List of Allowances & Benefits 17

2


3 HISTORY 19

4 RECOGNITION & AWARDS 23

5 SWOT ANALYSIS 26

6 LITERATURE REVIEW 28

7 INTRODUCTION OF TOPIC 31

7.1 Concept of Motivation 32

7.2 Definition of Motivation 32

7.3 Theories of Motivation 35

7.4 Definition & need for Incentives 39

8 RESEARCH METHODOLOGY 41

9 DATA INTERPRETATION 44

10 FINDINGS & LIMITATION 59

11 BIBLOGRAPHY 62

12 ANNEXURE 63

3


SUMMER TRAINING PROJECT REPORT ON

“ Linkage of incentive & benefits schemes with Employee Motivation AT ONGC “

(Ahmedabad Asset)

Under the Guidance of

Mr Prabhakar Kumar

Submitted by:

Shefali G Banodiya

S.V.Institute of Managemant,Kadi

Academic Year

2009-2011

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PREFACE

The project is done on the Gujarat Forward base at Ahmedabad. I have done work on the

incentive & benefits schemes of Ahmedabad branch of ONGC. Firstly I got information

about the economic position of the ONGC, then about the industry, then Ahmedabad branch

after that I have done at incentive scheme in ONGC, Ahmedabad.

Incentive Scheme in ONGC has been in existence since late 62‟s and with the passage of time

has under gone number of reviews. Keeping the present business scenario in focus ONGC

management have realized that scheme has not able to achieve the desired objectives as

intended in the scheme.

The main purpose of the scheme is to motivate the employees to achieve the target set by the

Organization. As organization face mounting competition across the world. Companies can‟t

sustain or even survive in such a relentless environment without attempting to accurately

assesses and enhance employee productivity and development.

In view of the above an attempt has been made to compile the details of all incentive schemes

in reference to employee working at ONGC. A need is therefore strongly realized for

compilation that has been titled as “Linkage of incentives & benefits schemes with employees

motivation at ONGC (A‟bad)”

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ACKNOWLEDGEMENT

I feel privileged to express my deep gratitude to all the executives and O.N.G.C. staff

members of Ahmedabad for guiding us during my summer training.

I am deeply indebted to Mr. Prabhakar Kumar under whose supervision I completed my

summer training report ONGC.

I would also like to thank to all the HR department staff for their accommodating nature and

their exposure and invaluable guidance throughout my project and with whom I discussed all

the various issues related to the study. In spite of being busy with their routine work they

spent quality time with me and never hesitated to cooperate and help me out with my

problems as and when required.

6


EXECUTIVE SUMMARY

As the education of future managers would be incomplete without exposure to

working in an organization a summer training assignment is as essential requirement

for first year of MBA course.

The training report concerns the welfare schemes at ONGC with various

recommendations to make effective specially through looking at employees‟ satisfaction

level.

The study was carried out in Ahmedabad office. Accordingly the training was

concluded (on 31st of May 2010) with recommendations to ONGC as regards certain

measures, which can be considered to have better satisfied executives contributing their

best for achieving organizational goals.

7


1

Corporate Profile

8


Oil & Natural Gas Corporation Limited properly known as ONGC , republic India‟s number

one company with significant company in industrial and economic growth of the country is a

leading National Oil and Natural Gas producing company of India engaged mainly in

exploration ,development and production of crude oil, Naturals gas and some value added

products. It has gone through its life cycle and now reached to its maturity stage after

overcoming birth & growth stage .The organization was born over about five decades ago on

14th August 1956 ND today ONGC is a fortune 500 company having more than 35000

employees as on date working in different in India and abroad. The modest corporate house

within serene Himalayan setting at Dehradun and Registered office at Delhi.

ONGC has grown into a full fledge horizontally integrated upstream petroleum

company with adequate in house capabilities and infrastructure in the entire range of oil and

gas exploration and production activities and related oil fields engineering services .From a

small directorate to a monolith today ONGC is circumpassing the entire public gamut of

public sector organization. ONGC today is endeavoring to become a world –class oil and gas

producing company in pursuit of exploration and production business in the domestic and

international area and related opportunity specific energy business.

ONGC today is repositioning itself to fasten the principle of relational enterprise

through partnership strategic alliances joint ventures with preferred partners and adopt a

business strategy which relies on company skills and positional assets with focus on core

business areas and opportunity specific diversification.

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2

Introduction of ONGC1

10


ONGC Group of Companies comprises of Oil and Natural Gas Corporation Limited

(ONGC - The Parent Company); ONGC Vides Limited (OVL – a wholly owned

subsidiary of ONGC); ONGC Nile Ganga BV (ONG BV - a wholly owned subsidiary

of OVL) and Mangalore Refinery and Petrochemicals Limited (MRPL - a subsidiary of

ONGC). Oil and Natural Gas Corporation Limited (ONGC) is India's Most Valuable

Company, having a market share of above 80% in India's Crude Oil and Natural Gas

Exploration and Production. ONGC registered the highest profit among all Indian

companies at US $ 1.92 billion (Rs. 8664.4 Crore) in the year 2003-04. Its production

of Crude Oil in 2003-04 was 26.7 MMT and of Natural Gas 25.70 Billion Cubic

Meters. ONGC also produce Value-Added Products (VAP) like C2-C3; LPG; Naphtha

and SKO.

ONGC Vides Limited (OVL) is overseas arm of ONGC, engaged in Exploration &

Production Activities. It trans-nationally operates E&P Business in 10 countries,

making ONGC the biggest Indian Multinational Corporation. In recent years, it has

laid footholds in hydrocarbon acreage in various countries including Ivory Cost and

Australia. ONGC Nile Ganga BV is a wholly owned subsidiary of OVL and has equity

in producing field in Sudan.

ONGC envisages organizing Import/International Sale of Crude Oil and Export of

Petroleum Products through Tendering Procedure for all the Group Companies.

However, it would be restricted to the Companies/ Firms/ Vendors registered with

ONGC on its approved Vendor Lists.

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ONGC OFFICES ALL OVER INDIA

12


2.1 VISION & MISSION OF ONGC

To be world class Oil & Gas Company Integrated in energy business with

Dominant Indian leadership and global presence.

World Class

Dedicated to excellence by leveraging competitive advantages in R&D and technology

with involved people.

Imbibe high standards of business ethics and organizational values.

Abiding commitment to health, safety and environment toenrich quality of

Community life

Foster a culture of trust, openness and mutual concern to make working a

Stimulating & challenging experience for our people.

Strive for customer delight through quality products and services.

Integrated in Energy Business

Focus on domestic and international oil & gas exploration and production business

opportunities.

Providing value linkages in other sectors of energy business.

Creating growth opportunities and maximize shareholder value.

Dominant Indian Leadership

Retain dominant position in Indian Petroleum sector and enhance India's energy

availability.

2.2 OBJECTIVES OF THE COMPANY

To maximize production of hydrocarbon, self reliance in technology, promoting indigenous

efforts to achieve self reliance in technology, promoting indigenous efforts to achieve in all

related equipment, material and services.

Assist in conservation of oil, more efficient use energy and development of

alternate source of energy.

Environmental protection & Observe 100% safety in work.

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DIFFERENT WORKING CONDITION

Employee are working in different set-ups; at the drill sites where days ON/OFF

pattern is prevalent and the officers and staff 8 hours duty at base office where apart from

normal office hours some services like radio communication etc. are round the clock jobs .

The work force is approximately 200 with about 135 Officers and Remaining Staff.

2.3 ORGANIZATIONAL SET OF ONGC

From staff strength of 450 employees in the year 1956-57 ONGC staff from grown

up to 35000 at present.

There are about 15 broad disciplines under four main heading of

Engineering Services

Drilling Services

Geophysical services and

Administration and other support services.

Up to 1968, there was rapid advancement of individuals due to considerable

expansion of work . Thereafter, some stagnation took place in the career advancement of the

employees.

GLOBALIZATION

ONGC operations are being internationalized with a view to acquiring exploration

acreage and access to oil in other basics world over in line with the over strategy followed by

international oil companies .ONGC Videsh Limited .a subsidiary of ONGC , is managing the

overseas ventures.

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2.4

Msl;smxxl;as;x A BRIEF ABOUT AHMEDABAD ASSET

Ahmedabad was founded by Sultan Ahmed Shah on the banks of River Sabarmati in 1411

A.D. Sultan Ahmed Shah graced his kingdom with splendid monuments, mosques,

pavilions and mausoleums, marking the beginning of the Indo-Saracenic style of

architecture. Modern day Ahmedabad, the capital of the State of Gujarat is the largest city

and a leading industrial centre in Gujarat . It is also the sixth largest in. But Ahmedabad

has a lot more to offer visitors.

Popularly known as the Manchester of the East, Ahmedabad boasts of the largest denim

production in the world. It is also home to several interesting museums. Many of

Ahmedabad's buildings bear the signatures of world-renowned architects like Le

Corbusier, Louis Khan , Doshi and Correa.

It is from the austere habitat of Sabarmati at Ahmedabad, that the 'Father of the Nation' -

Mahatma Gandhi took on the mighty British Empire , and gave human race one of its

most remarkable ways to fight with non-violence.

Ahmedabad Asset is one of the main onshore asset of ONGC. Its fields are located

alomost 70 Km radius of Ahmedabad. Ahmedabad Asset has a employee strength of

almost 2700. Current Executive Director - Asset Manager of Ahmedabad Asset is Sri Anil

Johari

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Organization Structure of Ahmedabad Asset

AHMEDABAD ASSET

ASSET

SURFACE TEAMSUB-SURFACE

TEAMSUPPORT

SEC

URITY & FIRE

TA & QA

Mtrl. Mgmt.

LOGISTICS INFOCOM

FINANCE HR / ER

SERVICES

WELL SERVICES

WELL

TESTINGWORKOVER

WELL STIMULATED

SERVICES

DRILLING

DRILLING MUD SERVICES

CEMENT-ING SERVICES

ENGINEERING SERVICES

Eng. & Cons. WORKSHOP

Const. & Maint.

LOGGING SERVICE

FBM

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2.5 MANAGEMENT

The business of ONGC is managed by the Board of Directors, who formulate the strategy,

regularly review the performance and ensure that the Corporation achieves its vision,

mission, objectives and goals consistently. The Chairman & Managing Director, along with

the Executive Directors, manages the day-to-day affairs of the Corporation.

Currently the Board of directors consists of:

BOARD OF DIRECTORS

R.S. Shrama :- Chairman & managing director

Dr. A.K. Balyan :- Director (Human Resource)

A.K.Hazarika :- Director (Onshore)

Sudhir Vasudeva :- Director (offshore)

D.K.Pande :- Director (exploration)

U.N.Bose :- Director (T&FS)

D.K.Sarraf :- Director(Finance)

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Organizational Structure of ONGC

C & MD

Company Secretaries,

Corporate Affairs, Chief

Vigilance officers

MD, ONGC

Videsh Ltd.

Director

Technical &

Field Services

...To be filled..Director

Finance

Director

Onshore

Director

Offshore

Director

ExplorationDirector HR

Bassein &

Satellite

Mumbai High

Heera &

Neelam

Supply Bases

Uran Plant

Hazira Plant

Offshore

PSC - JV

Ahmedabad

Ankleshwar

Assam

Rajahmundry

(KG)

Tripura

Western

Offshore

Western

Onshore

Assam &

Assam-

Arakan

Cauvery

KG-PGRegional

Labs

IRS

Geophysical

Services

CBMMBP

Exploration

Directorate

EX COM

HRD

Functional

HR

Planing

Employee

Relations

ONGC

Academy

Security

Legal

Medical

Corporate

Comm

Chief Drilling

Services

Drilling

Cementin

g

Mud

Chief Well

Services

Workover

WSS

Well

completio

n &

Drilling

Chief Logging

IDT

IOGPT

IEOT

Exploration &

Development

Technology

Internal AuditChief Drilling

Services

Commercial

Performance

Management

&

Benchmarkin

g

Chief Infocom

Chief

Planning,

Projects &

Capital

Budget

Chief MM

Chief BD, JV

& Marketing

Chief SHE

IPSEM

Head

Regional

Office

Chief

Engineering

Chief EM,

Technical

Audit & QA

GEOPIC

Regional

Geophysi

cal

Services

Maintena

nce

Design

Works

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2.6 Financial Management2

ONGC Performance Graphs

Here, in 2009-2010 the company’s net profit is highest compare to other year.It should

be increased 7 billion more this year.

Here, EPS is more compare to previous year. In 2006 it was higher by 98.

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Here, This year contribution to exchequer should be 281 billion. Compare to previous year it

was increase by 1 billion this year.

Here, this year physical performance of crude oil was 22.33 & Natural gas performance was

20.60. The production level is greater than previous year.

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2.7 HR Management3

HR AT ONGC

PEOPLE AT ONGC

Today, ONGC is the navratna company of India; and making this possible is a

dedicated team of nearly 35,000-40,000 professionals who toil round the clock .It is this toil,

which amply reflects in the performance figures and aspirations of ONGC. The company has

adapted progressive policies in scientific planning, acquisition, utilization, training and

motivation of the team. At ONGC everybody matters, every soul counts.

ONGC has a unique distinction of being company with in house service capabilities

in all he activity areas of exploration and production of oil & gas and related oil field services.

Company has adapted progressive policies in scientific

The men & women behind this machine made this possible. Over 18,000

experienced and technically competent executives mostly scientists and engineers from

distinguished Universities /Institutions of India and abroad from the core of our manpower.

They include geologists, geophysicists, geochemists, drilling engineers, reservoir engineers

,petroleum engineers ,production engineers ,engineering & technical service providers

,financial and human resource experts IT professionals and so on.

Behind the excellent results achieved is a work force of 35000 strong belonging to

various discipline of the company actively in the persistent search of oil and infuse with a new

–ethos and productive work culture. The Company is aware that its success is mainly due to

its greatest assets –its people a multifaceted, multidisciplinary group with complete n- house

capabilities for all activities in the industry. To meet the requirement of manpower, revised

manpower norms for operation of drilling rigs have been approved and implemented

.Exercise for other operational utilization of existing human resource special need based

studies are being carried out region-wise.

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To meet the challenges of the future ONGC has to diversify its activities with zero

manpower growth. Attempts have been made to form out the low technology jobs. A major

thrust is being given to the introduction of multi-craft manning. This will result in job

enrichment.

HR VISION, MISSION AND OBJECTIVE

Integrating Employees towards Organization Goals

HR Vision

“To attain organizational excellence by developing and inspiring the true potential of

company‟s human capital and providing opportunities for growth, well being and enrichment.

HR Mission

“To create a value and knowledge based organization by inculcating a culture of

learning, innovation and team working and aligning business priorities with aspiration of

employees leading to a development of an empowered, responsive and

competent human capital.”

HR Objectives

To develop and sustain core values.

To develop business leaders for tomorrow.

To provide job contentment through empowerment, accountability and

Responsibility.

To build and upgrade competencies through virtual learning, opportunities for

Growth and providing challenges in the job.

To foster a climate of creativity, innovation and enthusiasm.

To enhance the quality of life of employees and their family.

To inculcate higher understanding of „Service‟ to a greater cause.

22


HR Strategy

To meet challenging demands of the business environment ,focus of the HR strategy is

on change of the employees „ mind set‟.

Building quality culture and resources.

Re-engineering and redeployment for maximizing utilization of HR potential .

To build and upgrade competencies through virtual learning, opportunities for growth

and providing challenges in the job.

Re-strengthening mutual faith, trust and respect.

Inculcating a spirit of learning & enjoying challenges.

Role of HR

Alignment of HR vision with corporate vision.

Shift from support group to strategic partner in business operations.

HR as a change agent.

Enhance productivity and performance by developing employee competency and

potential.

Developing professional attitude and approach.

Developing „Global Managers „ for tomorrow to ensure the role of global players.

23


2.8 List of Allowances & Benefits given by company are as follows4 :-

ALLOWANCES

House Rent Allowance

House Rent Recovery

Leased Accommodation

Self Leased Facility

Maintenance Charges for Lease/Self Lease

Drilling Allowance

Hard Duty Allowance

Offshore Compensation Allowance

Additional Offshore Compensation Allowance

Operational Allowance

Shift Allowance

Food Compensatory Allowance

Additional Cash Allowance (Nourishment Allowance)

North Eastern Allowance

Remote Locality Allowance

Tribal Area Allowance

Hill Compensatory Allowance

Karaikal Special Compensatory Allowance

Charge Allowance

Professional Pursuit Allowance

Overtime Allowance

Job Linked Allowance

Kit Maintenance Allowance

Washing Allowance

Productivity Allowance

Special Allowance to Fire Staff

TRAVELLING ALLOWANCE

Entitlement

Local Travel Charges on Tour

Daily Allowance

Transfer TA

Payment of TA on First Appointment

Reimbursement of Taxi Hire Charges to Inspection Staff

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WELFARE

Leave Fare Assistance

Travel by Private Taxi in Hilly Areas

Holiday Home Facility

Education Facilities: o Central School o Children‟s Education Allowance o Merit Scholarship o Journey Fare o Special Award Scheme o Hostel Subsidy o Transport Subsidy o Reimbursement of Admission Fee

ONGC Scholarship to SC/ST Students

Medical Facilities

Reimbursement of cost of Spectacles/Contact Lenses

Laser Treatment for Myopia

Reimbursement of cost of Dark Glasses/Goggles for Visually Handicapped Employees

Reimbursement of cost of Hearing Aid

Treatment for Infertility

Medical facilities to Retired Employees

Composite Social Security Scheme

Compensation for accident while on duty

Financial Assistance for death/permanent disablement due to accident while on duty/H2S

exposure

Financial Assistance for death/permanent disablement due to accident while on duty in

operational areas (for casual/contingent workers/term based employees/para-medical staff

directly engaged by ONGC)

Mementos to Retired Employees

Ex-gratia Scheme for pre-1959 employees

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3

History5

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(1) 1947-1960

During the pre-independence period, the Assam Oil Company in the northeastern

and attack oil company in northwestern part of the undivided India were the only oil

companies producing oil in the country, with minimal exploration input. The major

part of Indian sedimentary basins was deemed to be unfit for development of oil and

gas resources.

After independence, the national Government realized the importance oil and gas for

rapid industrial development and its strategic role in defense. Consequently, while

framing the Industrial Policy Statement of 1948, the development of petroleum

industry in the country was considered to be of utmost necessity.

Until 1955, private oil companies mainly carried out exploration of hydrocarbon

resources of India. In Assam, the Assam Oil Company was producing oil at Digboi

(discovered in 1889) and the Oil India Ltd. (a 50% joint venture between

Government of India and Burmah Oil Company) was engaged in developing two

newly discovered large fields Naharkatiya and Moran in Assam. In West Bengal, the

Indo-Stanvac petroleum project(a joint venture between government of India and

Standard Vacuum Oil Company of USA) was engaged in exploration work. The vast

sedimentary tract in other parts of India and adjoining offshore remained largely

unexplored.

In 1955,Government of India decided to develop the oil and natural gas resources in

the various regions of the country as part of the Public sector development. With this

objective, an Oil and Natural Gas Directorate was set up towards the end of 1955, as

a subordinate office under the Ministry of Natural Resources and scientific Research.

The department was constituted with a nucleus of geoscientists from the Geological

survey of India.

A delegation under the leadership of Mr. K. D Malviya, the then Minister of Natural

Resources, visited several European countries to study the status of oil industry in

those countries and to facilitate the training of Indian professionals for exploring

potential oil and gas reserves. Foreign experts from USA, West germany, Romania

and erstwhile U.S.S.R visited India and helped the government with their expertise.

Finally, the visiting Soviet experts drew up a detailed plan for geological and

geophysical surveys and drilling operations to be carried out in the 2nd Five year Plan

(1956-57 to 1960-61).

27


Soon, after the formation of the Oil and Natural Gas Directorate, it became apparent

that it would not be possible for the Directorate with its limited financial and

administrative powers as subordinate office of the government, to function

efficiently. So in August, 1956, the Directorate was raised to the status of a

commission with enhanced powers, although it continued to be under the

government. In October 1959, the Commision was converted into a statutory body

by an act of the Indian Parliament, which enhanced powers of the commission

further. The main functions of the Oil and Natural Gas Commision subject to the

provisions of the Act, were “to plan, promote, organize and implement programmes

for development of Petroleum Resources and the production and sale of petroleum

and petroleum products produced by it, and to perform such other functions as the

Central Government may, from time, assign to it”. The act further outlined the

activities and steps to be taken by ONGC in fulfilling its mandate.

(2) 1961-1990

Since its inception, ONGC has been instrumental in transforming the country‟s

limited upstream sector into a large viable playing field, with its activities spread

throughout India and significantly in overseas territories. In the inland areas, ONGC

not only found new resources in Assam but also established new oil province in

Cambay basin (Gujarat), while adding new petroliferous areas in the Assam-Arakan

Fold Belt and East coast basins (both inland and offshore).

ONGC went offshore in early 70‟s and discovered a gaint oil field in the form of

Bombay High, now known as Mumbai High. This discovery, along with subsequent

discoveries of huge oil and gas fields in Western offshore changed the oil scenario of

the country. Subsequently, over 5 billion tones of hydrocarbons, which were present

in the country, were present in the country, were discovered. The most important

contribution of ONGC, however, is its self-reliance and development of core

competence in E&P activities at a globally competitive level.

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(3) After 1990

The liberalized economic policy, adopted by the Government of India in July 1991,

sought to deregulate and de-license the core sectors(including petroleum sector) with

partial disinvestments of government equity in Public Sector Undertakings and other

measures. As a consequence thereof, ONGC was re-organized as a limited company

under the Company‟s Act, 1956 in February 1994.

After the conversion of business of the erstwhile Oil & Natural Gas Commission to

that of Oil & Natural Gas Corporation Limited in 1993, the Government disinvested

2 per cent of its shares through competitive bidding. Subsequently, ONGC expanded

its equity by another 2 per cent by offering shares to its employees.

During March 1999, ONGC, Indian Oil Corporation (IOC)- a downstream giant and

Gas Authority of India Limited(GAIL)- the only gas marketing company, agreed to

have cross holding in each other‟s stock. This paved the way for long-term strategic

alliances both for the domestic and overseas business opportunities in the energy

value chain, amongst themselves. Consequent to this the Government sold off 10 per

cent of its share holding in ONGC to IOC and 2.5 per cent to GAIL. With this, the

Government holding in ONGC came down to 84.11 per cent.

In this year 2002-03, after taking over MRPL from the A V Birla Group diversified

into the downstream sector. ONGC will soon be entering into the retailing business.

ONGC has also entered the global field through its subsidiary, ONGC Videsh

Ltd(OVL). ONGC has made major investments in Vietnam, Sakhlin and Sudan and

earned its first hydrocarbon revenue from its investment in Vietnam.

29


4

Recognition

And

Awards

30


Global ranking/Recognition

Ranking 402nd in the Fortune Global 500 list for 2006, up from 454th last

year , based on revenues; ONGC is ranked 115th in new list (based on

profits ). Leading all Indian corporate

Topped the list of sensex Indian companies figured in Business Weeks first

annual ranking of Asia‟s 50 best-performing listed companies drawn from a

list of 625 Asian firms, ONGC was ranked „third‟ among the 50 best Asian

firms.

Ranked 158th amongst the world‟s largest companies as per market

capitalization on 31st March 2006 in the 10th annual Financial Times Global

listing.

Leads the list of Indian corporate titans, in the Forbes Global 2000, with

256th ranking in list of 2000 business entities (including 33indian firms) based

on sales, profits Assets and Market Valuation.

Sole Indian entry into the UNCTAD‟s top 50, non financial Transnational

Corporations from developing countries ranked by foreign assets.

Ranked 18th amongst 50 publicly traded global companies in oil &Gas

industry based on market capitalization and 15thy amongst 2 listed integrated

Oil & Gas companies.

Conferred the Golden Peacock Award for the „Corporate Governance‟

during the International Conference on Corporate Governance.

Indian Ranking/Recognition

Bagged the prestigious NDTV Profits Business Leadership Award in the Oil

& Gas category.

Topped the Business Today list of Most Valuable companies in India for the

second year in a row. In the ranking, ONGC topped all the three categories

viz. Market Capitalization, Net Profit and Net Worth.

Topped Business India‟s 100 listed of Indian companies ,based on a

weighted average of several parameters, including Market Capitalization,

Profit After Tax(PA), Net Fixed and Net Sales.

31


Ranked 11th in the Economic Times 500 Ranking with the highest Market

Capitalization, and Net Profit k, mainly due to lower P/E ratio and Return

on Net Worth.

Ranked as the Most Respected Company in the PSU category in the 2006

Business World Survey released n Business World Magazine (June 2006).

Brand Logos

32


5

Swot

Analysis

33


1. STRENGTHS

A) O.N.G.C LTD is perceived to be the leader in oil production industry.

B) O.N.G.C has a very efficient and professional management team.

C) O.N.G.C being an international company has sufficient resources

and capital to invest.

D) O.N.G.C has ISO-9001 & ISO 14001 registration.

2. WEAKNESSES

A) O.N.G.C facing difficulties to produce oil from aging reservoirs.

3. OPPURTUNITY

A) Energy utilization of buried coal resource (700 -1700M), estimated

63BT – Equivalent to 15000 BCM.

B) O.N.G.C facing difficulties to produce oil from aging reservoirs.

4. THREAT

A) Security of personnel & property especially crude oil continues to be

a cause of concern in certain area.

B) In some exploration Campaign Company involves high technology,

high technology, High investment and high risk.

34


6

Literature

Review

35


I have taken this article through yahoo search which is written by “Debojyoti

Ghosh” in the month of July and the topic of article was “Attrition in Infosys peaks

to two- year high at 15.8%”.

According to this article it dictates that Infosys are planning hiring projection

to 36,000 from 30,000 to create a responsible team to capitalize on their future

demands. It also specifies that during the April- June quarter, 7833 left the

organization, out of which 5411 were from Infosys Technologies and remaining 2422

were from BPO business. The reason of leaving the company is that employees are going

for higher education courses like M Tech., MBA. Approximately 950 left us in this

quarter to pursue higher education and 2215 people left for better prospects with

other companies.

Infosys announced a salary hike of 9- 20% for offshore and 2- 5 % for

onshore employees respectively in the month of April.

People were leaving Infosys because they were not rewarding them on their

performance level. It was getting frustrated for the people in that atmosphere. Even

many people wanted to go for further studies to improve their career. But Infosys

was not ready to sponsor them or even give them guidelines on their decision. They

were just looking for their growth in business and to maintain their brand value in

market. Therefore many or most of the people had no other way out besides quitting

their job.

But here in ONGC, people are welcome with their unique ideas and

betterment for their business. Over here they are allowing their employees to go for

further studies and even sponsoring them. So that they will not leave the organization

after their completion of studies. From 2010, incentives should be given on the basis of

performance of employee. And after a survey employees are also believes that an incentive

always gives on performance of the employee.

36


I have taken second article from Icfai magazine of 6, December 2006, page no:36. Written

by Tapomoy Deb. The topic of article was “Linking Performance Management to reward

system”

In this article the Tapomoy want to say that the concept of performance management

has been the most significant development in the sphere of human resource management.

Performance management has two major implications in the organization context – First is to

improve organizational performance for business success, and second is to devise a robust

reward system

Reward system plays an important role in enhancing organizational performance

has lately attracted the attention of progressive organizations. Here Tapomoy also want to say

that financial & non financial both rewards are beneficial to increase the performance of the

employees. Because its help in motivating the employees to do their work effectively &

efficiently. And this is one of the reason that employees are not leaving their job because of

the rewards & benefits given by an organization.

By reading both the articles, I decided to select the topic of my study which would

clear that how the performance based incentives, rewards & benefits schemes are

helpful in motivating the employees retention. Hence, I selected the topic

“Linkage of incentives & benefits with employees motivation at ONGC(Ahmedabad)”

Here in ONGC so many of allowances, incentives & benefits are given by the

Company. So this is the reason that everyone wants to join this company. And

the second reason is also job security of the employee.

37


7

Motivation6

38


7.1 The concept of motivation

The word motivation has been derived from motive which means any idea, need or emotion

that prompts a man in to action. Whatever may be the behavior of man, there is some

stimulus behind it .Stimulus is dependent upon the motive of the person concerned. Motive

can be known by studying his needs and desires.

There is no universal theory that can explain the factors influencing motives which control

mans behavior at any particular point of time. In general, the different motives operate at

different times among different people and influence their behaviors. The process of

motivation studies the motives of individuals which cause different type of behavior.

7.2 Definition of Motivation

According to Edwin B Flippo, “Motivation is the process of attempting to influence others to

do their work through the possibility of gain or reward.

The definition of motivation is to give reason, incentive, enthusiasm, or interest that causes a

specific action or certain behavior. Motivation is present in every life function. Simple acts

such as eating are motivated by hunger. Education is motivated by desire for knowledge.

Motivators can be anything from reward to coercion.

The three motivation categories

Security.

Achievement.

Social Recognition

You have some of each type in your makeup. One of these types will of course be the dominant motivating factor in your life, however, from time to time you may embrace each of the three types.

39


Security :

A person who is motivated by security strives to build a safe and secure life for themselves and their families.

If security is your prime motivation, then to Be Master of Your Life means building a solid foundation to which you can anchor each aspect of your life.

When you climb the mountain of life, it is "because you feel it is more secure to be up high"!

When you join an organisation it is because it provides support, and shares risk. Morals, duty, intellect, creativity, philanthropy, and honor are important to you.

Security Motivated people are fixers. They fix the problems, prevent crisis.

Achievement :

A person who achievement oriented, is motivated to do things for their own sake.

If achievement is your prime motivation, then to Be Master of Your Life means innovating, experiencing, climbing to the top.

When you join an organisation it is because it provides a vehicle for advancement, supplies goals to be met.

You climb the mountain of life "because it is there"!

For you, accomplishment is important for its own shake rather than for the rewards that accompany it. Skill, ability, innovation and know-how are important to you. Achievers are seekers.

Social Recognition :

A person who seeks social recognition is motivated by the need to be recognized, to look good.

If social recognition is your prime motivation, then to Be Master of Your Life means standing out from the crowd, to be looked up to.You are constantly striving to succeed for therecognition which goes with success.

When you join a group it is to rise to prominence within the group.

You climb the mountain of life "so that we can all see you"! Respect, admiration, regard, esteem, notoriety and celebrity are all important to you.

These people are seen to be leaders.

40


Significance of Motivation

Motivation involves getting the members of the group to pull weight effectively, to give their

loyalty to the group, to carry out properly the purpose of the organization. The following

results may be expected if the employees are properly motivated.

1. The workforce will be better satisfied if the management provides them with opportunities

to fulfill their physiological and psychological needs. The workers will cooperate

voluntarily with the management and will contribute their maximum towards the goals of

the enterprise.

2. Workers will tend to be as efficient as possible by improving upon their skills and

knowledge so that they are able to contribute to the progress of the organization. This will

also result in increased productivity.

3. The rates of labor‟s turnover and absenteeism among the workers will be low.

4. There will be good human relations in the organization as friction among the workers

themselves and between the workers and the management will decrease.

5. The number of complaints and grievances will come down. Accident will also be low.

6. There will be increase in the quantity and quality of products. Wastage and scrap will be

less. Better quality of products will also increase the public image of the business.

Motivation Process.

1. Identification of need

2. Tension

3. Course of action

4. Result –Positive/Negative

5. Feed back

41


7.3 Theories of Motivation.

Understanding what motivated employees and how they were motivated was the focus of

many researchers following the publication of the Hawthorne study results (Terpstra, 1979).

Six major approaches that have led to our understanding of motivation are Mcclelland‟s

Achievement Need Theory, Behavior Modification theory; Abraham H Mallows need

hierarchy or Deficient theory of motivation. J.S. Adam‟s Equity Theory, Vrooms Expectation

Theory, Two factor Theory.

1) McClelland’s Achievement Need Theory.

According to McClelland‟s there are three types of needs;

Need for Achievement (n Ach);

This need is the strongest and lasting motivating factor. Particularly in case of persons who

satisfy the other needs. They are constantly pre occupied with a desire for improvement and

lack for situation in which successful outcomes are directly correlated with their efforts. They

set more difficult but achievable goals for themselves because success with easily achievable

goals hardly provides a sense of achievement.

Need for Power

It is the desire to control the behavior of the other people and to manipulate the surroundings.

Power motivations positive applications results in domestic leadership style, while it negative

application tends autocratic style.

Need for affiliation

It is the related to social needs and creates friendship. This results in formation of informal

groups or social circle.

42


2) Abraham H Maslow Need Hierarchy or Deficient theory of Motivation.

The intellectual basis for most of motivation thinking has been provided by behavioral

scientists, A.H Maslow and Frederick Heizberg, whose published works are the “Bible of

Motivation”. Although Maslow himself did not apply his theory to industrial situation, it has

wide impact for beyond academic circles. Douglous Mac Gregor has used Maslow‟s theory to

interpret specific problems in personnel administration and industrial relations.

The crux of Maslow‟s theory is that human needs are arranged in hierarchy composed of five

categories. The lowest level needs are physiological and the highest levels are the self

actualization needs. Maslow starts with the formation that man is a wanting animal with a

hierarchy of needs of which some are lower ins scale and some are in a higher scale or system

of values. As the lower needs are satisfied, higher needs emerge. Higher needs cannot be

satisfied unless lower needs are fulfilled. A satisfied need is not a motivator. This resembles

the standard economic theory of diminishing returns. The hierarchy of needs at work in the

individual is today a routine tool of personnel trade and when these needs are active, they act

as powerful conditioners of behavior- as Motivators.

Hierarchy of needs; the main needs of men are five. They are physiological needs, safety

needs, social needs, ego needs and self actualization needs, as shown in order of their

importance.

43


The above five basic needs are regarded as striving needs which make a person do things. The

first model indicates the ranking of different needs. The second is more helpful in indicating

how the satisfaction of the higher needs is based on the satisfaction of lower needs. It also

shows how the number of person who has experienced the fulfillment of the higher needs

gradually tapers off.

Physiological or Body Needs: - The individual move up the ladder responding first to the

physiological needs for nourishment, clothing and shelter. These physical needs must be

equated with pay rate, pay practices and to an extent with physical condition of the job.

Safety: - The next in order of needs is safety needs, the need to be free from danger, either

from other people or from environment. The individual want to assured, once his bodily

needs are satisfied, that they are secure and will continue to be satisfied for foreseeable feature.

The safety needs may take the form of job security, security against disease, misfortune, old

age etc as also against industrial injury. Such needs are generally met by safety laws, measure of

social security, protective labor laws and collective agreements.

Social needs: - Going up the scale of needs the individual feels the desire to work in a

cohesive group and develop a sense of belonging and identification with a group. He feels the

need to love and be loved and the need to belong and be identified with a group. In a large

organization it is not easy to build up social relations. However close relationship can be built

up with at least some fellow workers. Every employee wants too feel that he is wanted or

accepted and that he is not an alien facing a hostile group.

Ego or Esteem Needs: - These needs are reflected in our desire for status and recognition,

respect and prestige in the work group or work place such as is conferred by the recognition

of ones merit by promotion, by participation in management and by fulfillment of workers

urge for self expression. Some of the needs relate to ones esteem

44


e.g.; need for achievement, self confidence, knowledge, competence etc. On the job, this

means praise for a job but more important it means a feeling by employee that at all times he

has the respect of his supervisor as a person and as a contributor to the organizational goals.

Self realization or Actualization needs: - This upper level need is one which when satisfied

provide insights to support future research regarding strategic guidance for organization that

are both providing and using reward/recognition programs makes the employee give up the

dependence on others or on the environment. He becomes growth oriented, self oriented,

directed, detached and creative. This need reflects a state defined in terms of the extent to

which an individual attains his personnel goal. This is the need which totally lies within oneself

and there is no demand from any external situation or person.

3) J.S Adams Equity Theory

Employee compares her/his job inputs outcome ratio with that of reference. If the employee

perceives inequity, she/he will act to correct the inequity: lower productivity, reduced quality,

increased absenteeism, voluntary resignation.

4) Vrooms Expectation Theory

Vroom‟s theory is based on the belief that employee effort will lead to performance and

performance will lead to rewards (Vroom, 1964). Reward may be either positive or negative.

The more positive the reward the more likely the employee will be highly motivated.

Conversely, the more negative the reward the less likely the employee will be motivated.

5) Two Factor Theory

Douglas McGregor introduced the theory with the help of two views; X assumptions are

conservative in style Assumptions are modern in style.

X Theory

Individuals inherently dislike work.

People must be coerced or controlled to do work to achieve the objectives.

People prefer to be directed

45


Y Theory

People view work as being as natural as play and rest

People will exercise self direction and control towards achieving objectives they are

committed to.

People learn to accept and seek responsibility.

7.4 Definition of Incentive7

An incentive is something which stimulates a person towards some goal. It activates human

needs and creates the desire to work. Thus, an incentive is a means of motivation. In

organizations, increase in incentive leads to better performance and vice versa.

Need for Incentives

Man is a wanting animal. He continues to want something or other. He is never fully satisfied.

If one need is satisfied, the other need need arises. In order to motivate the employees, the

management should try to satisfy their needs. For this purpose, both financial and non

financial incentives may be used by the management to motivate the workers. Financial

incentives or motivators are those which are associated with money. They include wages and

salaries, fringe benefits, bonus, retirement benefits etc. Non financial motivators are those

which are not associated with monetary rewards. They include intangible incentives like ego-

satisfaction, self-actualization and responsibility.

INCENTIVES

Financial Incentives Non-financial incentives

- Wages and Salaries. - Competition

- Bonus - Group recognition

- Medical reimbursement - Job security

- Insurance - Praise

- Housing facility - Knowledge of result

- Retirement benefits. - Workers participation.

- Suggestion system.

46


Motivation is the key to performance improvement

There is an old saying you can take a horse to the water but you cannot force it to drink; it will

drink only if it's thirsty - so with people. They will do what they want to do or otherwise

motivated to do. Whether it is to excel on the workshop floor or in the 'ivory tower' they must

be motivated or driven to it, either by themselves or through external stimulus.

Are they born with the self-motivation or drive? Yes and no. If no, they can be motivated, for

motivation is a skill which can and must be learnt. This is essential for any business to survive

and succeed.

Performance is considered to be a function of ability and motivation, thus:

Job performance =f(ability)(motivation)

Ability in turn depends on education, experience and training and its improvement is a slow

and long process. On the other hand motivation can be improved quickly. There are many

options and an uninitiated manager may not even know where to start. As a guideline, there

are broadly seven strategies for motivation.

There are broadly seven strategies for motivation.

Positive reinforcement / high expectations

Effective discipline and punishment

Treating people fairly

Satisfying employees needs

Setting work related goals

Restructuring jobs

Base rewards on job performance

Essentially, there is a gap between an individual‟s actual state and some desired state and the

manager tries to reduce this gap. Motivation is, in effect, a means to reduce and manipulate

this gap.

http://accel-team.com/pygmalion/prophecy_06.html

http://accel-team.com/work_design/index.html

http://accel-team.com/motivation/employeeRewards_00.html

47


8

Research Methodology

48


OBJECTIVES :-

Primary objective :-

I. To know linkage of incentives & benefits schemes with employees

motivation at ONGC.

Secondary objective :-

I. To know the satisfaction level of employees from the HR department &

the travelling allowances provided by organization.

II. To know the opinion of employees, on What basis the incentives should

be given to the employees?

III. To know which two allowances motivates the most.

IV. To know the most preferable educational facility used by employees.

V. To know the employee‟s opinion for the improvement of the workplace

environment.

VI. To know the most important motivating factor for the employees.

Problem:-

This project is carried out to find out the level of employee motivation regarding

welfare schemes & to find out how it can be made effective and implemented in day-to-day

work of ONGC

The supplementary objective of the study is to increase the efficiency and motivating

the employee‟s

Research Type:

Basic research

Research Design:

Descriptive research

49


Research Approach:

Personal Interview

Research Instrument:

Questionnaire(open ended & close ended)

Observation

Interview

Data Sources:

Primary Data – We collect primary data through the questionnaire fill up

by employees.

Secondary Data - ONGC manual

Internet

Sample size:

150 employees

Sampling Method:

Non-probability- convincing method.

Sampling Area:

ONGC (Ahmedabad)

50


9

Data Interpretation

51


Q.1. In your opinion which type of incentives or benefits motivates more?

Interpretation : -

After analysis it is found that 53.33% of employees are mostly motivated by

financial incentives as well as non – financial incentives, 30% of Employees believe that

financial incentives motivates them & 16.67% of Employees believe that non financial

incentives motivates them.

Q.2. Which of the following financial incentives motivates you the most ?

27%

16%

7%

23%

27%

Financial Incentives motivates most

Attractive Salary/ wages

Housing facility

Insurance

Medical/Education allowance

High rate of bonus

52


Interpretation : -

Here, after selecting financial incentives 27% of employees are more motivated by

Attractive salary/wages & High rate of bonus. 23% of the employees are motivated by

medical/education allowance. 16% & 7% of employees are motivated by housing facility &

insurance respectively.

Q.3. Which of the following Non-financial incentives motivates you the most ?

Interpretation :-

As above analysis 20% believes that the designation/status & fair opportunity of

promotion motivates more on the other hand 12% gets motivate by workers participation in

management, 18% in recognition of good work, 13% in Delegation of authority to

subordinates, 17% in encouragement for self & career development.

12%

20%

18%13%

20%

17%

Non-financial incentives motivates most

Workers participation in management

Designation & status

Recognition of good work

Delegation of authority to subordinates

Fair opportunity of promotion

Encouragement for self & career development

53


Q.4. How far you are satisfied with the incentives provided by the organization?

Interpretation :-

Here, after an analysis, 56% of employees are satisfied with the incentives

provided by organization. 6.67% are highly satisfied & 37.33% believes that they are neutral.

Q 5. Show your level of agreement from the following statements:

0

20

40

60

80

100

120

Reasonable periodical increase in

salary

Job security exist in the company

Good relationship

with co-workers

Performance appraisal

activities are helpful to get

motivated

Job facilities exist in the company

Strongly Agree

Agree

Neutral

Disagree

Strongly disagree

54


Interpretation:-

The number of strongly agree, agree & neutral by reasonable periodical increase in

salary are 48, 90 & 12 respectively. 54 persons are strongly agree & 96 persons are agree by job

security exist in the company. 40 employees are strongly agree, 90 employees are only agree, &

19 employees are neutral about the factor of good relationship with workers.

The number of strongly agree, agree & neutral by Performance appraisal activities are helpful

to get motivated & Job facilities exist in the company are 56, 86, 8 & 35, 110, 5 respectively.

Q 6.Tick any one from the following factors which motivates you the most?

Interpretation:-

After analysis 42% employees are motivate by pay for time not worked. 33%

employees are motivated by retirement benefits. 14% & 11% employees are motivated by

personal service & insurance benefits.

42.00%

11.33%

32.67%

14.00%

0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%

Pay for time not worked

Insurance Benefits

Retirement benefits

Personal service and

family & friendly benefits

Chart Title

Series1

55


Q.7 Which from the following allowances motivates you most ?

Interpretation :-

This graph shows that 34% house rent allowance motivates the most to employees.

After that 28% leased accommodation motivates them, 25% food compensatory , 5% hard

duty allowance & 4% in overtime & productivity allowance.

Q.8. Please tick from the following travelling allowance which prefer you most?

34%

5%

4%

25%

4%

28%

allowances motivates most


Hard Duty Allowance

Overtime Allowance




020406080

100120140160

Satisfied

Dissatisfied

Can’t say

56


Interpretation:-

The numbers of satisfied employees by local travel charges on tour are 150, by daily

allowance are 150. By transfer TA 36 employees are satisfied & 114 are can‟t say about it. 41

employees are satisfied & 109 can‟t say about the TA given on the first appointment. 35

employees are satisfied & 115 can‟t say about the Reimbursement of Taxi Hire Charges to

Inspection Staff.

Q.9. Which of the following Educational facility provided by organization, you avail the

most?

Interpretation :-

Here, 25% employees used reimbursement of admission fee & transport subsidy

provided by organization. 21% employees used children‟s education allowances.

17% used central school facility & 5%, 4%, 3% employees used merit scholarship, special

award scheme & hostel subsidy respectively.

17%

21%

5%4%

25%

3%

25%

Educational facility provided by organization

Central school

Children’s education allowances

Merit scholarship

Special award scheme

Reimbursement of Admission Fee

Hostel subsidy

Transport

57


Q.10.Pick out the most important motivating factor for the employee performance from

the following:

Interpretation :-

After all the analysis 20% employees are highly motivated by annual increment

given by organization. 19% of employees are motivated by travelling allowances given by

company. 18% by leaved policy & 16%, 14%, 13% by education allowances, incentives &

medical allowances given by organization respectively.

Q.11.From the following, which incentives do you want from the organization to implement?

14%

18%

13%

16%

19%

20%

most important motivating factor for the employee performance

Incentives given

Leave policy practiced

Medical allowance benefit

Education allowances

Travelling allowances

Annual Increment

16.67% 6.00% 13.33%

64.00%

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

Membership & Seniority base

incentives

Job status based

incentives

Competency based

incentives

Performance based

incentives

Incentives selected by employees to implement

Series1

Series2

Series3

58


Interpretation:-

After an analysis 64% employee wants that on the basis of performance incentives

should be given by the company. 16.67% employees wants Incentives should give on seniority

base. Then 13.33% & 6% of employees wants on the basis of competency & job status.

Q.12.What is the reason for selecting your present job?

Interpretation :-

16% employee‟s reason of selecting this job is good salary, multinational company

& job security. 15% employees joined it for the better career. 13% believes that the company

has a friendly atmosphere.

16%

16%

16%13%

10%

10%

4%

15%

Reason for selecting present job

Good salary

Multi National Company

Job Security

Friendly atmosphere

Closer to residence

Incentives/ Rewards

Challenging

Better career

59


Q.13 What changes can be made to improve the work place environment?

It is an open ended question. From which 64% employees gave the answer of the

question.

But the most common answer was “neat & clean” & “some changes in computers”

64%

36%

0%

10%

20%

30%

40%

50%

60%

70%

Given Not Given

Answer

Series1

19.79%

44.79%

35.42%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

Infrastructure Neat & Clean Changes in PC's

Suggestion of employees

Series1

60


Q.14 Are you satisfied with the support from the HR department?

Interpretation :-

78% of employees are fully satisfied from the support of HR department.

Gender : Male/Female

Interpretation :-

Out of 150 employees 75.33% are male & 24.67% are female.

43S

75.33%

24.67%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

Male Female

Gender

Series1

61


Age

Here, 41.33% employees are comes under the age of 35-45 then 25-35

No. of year of service :

Here, 41.33% of employees having an experience under 10-20.28% of employees

having an experience under 5-10.18%, 9.33% & 3.33% having an experience of below 5, 20-

30, above 30.

62


Hypothesis Testing :-

Ans 14) Satisfaction with the support from hr department with number of

year of service.

H0 : Satisfaction with the support from HR department is depend on no. of year service.

H1 : Satisfaction with the support from HR department is not depend on no. of year service.

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

satisfied with the support

from the HR department *

No. of year of service

150 100.0% 0 .0% 150 100.0%

satisfied with the support from the HR department * No. of year of service Crosstabulation

Count


Total 0-5 5-10 10-20 20-30 30<

satisfied with the support

from the HR department

Satisfied 20 34 49 9 5 117

Neutral 7 8 13 5 0 33

Total 27 42 62 14 5 150

Chi-Square Tests

Value Df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 3.439a 4 .487

Likelihood Ratio 4.342 4 .362

Linear-by-Linear Association .052 1 .819

N of Valid Cases 150

a. 3 cells (30.0%) have expected count less than 5. The minimum

expected count is 1.10.

Interpretation :

Here, the value of test is .487 > .05. So the null hypothesis do not rejected.

63


Correlation between type of incentives or benefits motivates more * No. of year of service

Interpretation: -

I have made correlation of Q.1 & number of year of service. It shows that how an increase in no. of year of service can change the choice of type of incentives & benefits given by company.

0 – 5 years : -It shows that employees are more motivated through financial incentives, as they are new to the company they will more motivated by financial incentives in this period for their career in a company .

5 – 10 years: - As shown in the graph, employees are comparatively more motivated through financial incentives. They also get motivated through both financial & non financial & least motivated by non financial incentives.

10 – 20 years: - It shows through graph that during this period in their career in a particular company employees are motivated through “both”. Because they are from a long time in a particular company and it motivates them in any kind of incentive.

30 Above : - In this graph it shows that, particular experience of employee are only motivated by non financial incentives as they grow older and may be they are one of the senior employee in the company. Therefore they feel honored by non financial incentives.

27

18

0 0 00

10

0

105

0

14

62

40

0

10

20

30

40

50

60

70

0-5 5-10 10-20 20-30 30<


Financial Incentives Non financial incentives Both

type of incentives or benefits motivates more * No. of year of service Crosstabulation


Total 0-5 5-10 10-20 20-30 30<

type of incentives or

benefits motivates more

Financial Incentives 27 18 0 0 0 45

Non financial incentives 0 10 0 10 5 25

Both 0 14 62 4 0 80

Total 27 42 62 14 5 150

64


Correlation between satisfaction with the incentives provided by the organization * Gender

satisfaction with the incentives provided by the organization * Gender Crosstabulation

Gender

Total Male Female

satisfaction with the incentives

provided by the organization

Highly satisfied 10 0 10

Satisfied 62 22 84

Neutral 40 16 56

Total 112 38 150

Interpretation : - Here, I have made correlation between satisfaction with the incentives provided by organization with the gender.

Highly Satisfied: - According to the graph, it shows that male employees are highly satisfied with their incentives provided by the organization. Because it dictates that female employees comparatively are not satisfied with incentives provided by the organization. In total there are less number of employees comparatively in the chart.

Satisfied: - It shows that male employees are more satisfied than female employees as it is compared with the satisfaction with their incentives provided by the organization

Neutral: This graph shows that more male employees feel neutral compare to female employees with the incentives provided by the organization

65


10

Findings

Limitations

Suggestions

Conclusion

66


10.1 FINDINGS

The data collected and analyzed for study of Incentives & benefits schemes implemented at

ONGC. Following are the most striking points of the study made.

1) All the employees are also satisfied with the support of HR department.

2) Employees are also well satisfied with the travelling allowance, education allowance,

leave policy, & medical facility given by company.

3) All the employees of the ONGC are fully satisfied with all the incentives given by the

company.

4) Transport subsidy & reimbursement of fees are most educational facility used by

employees of company.

5) Here 44% employees are agreed that on the performance basis the incentives should be

given.

6) House rent allowance & leased accommodation are most motivated allowances for the

employees.

7) Employees wants neat & clean atmosphere around them. For that they can more

concentrate on their works.

8) Annual increment is one of the most motivating factor for the company.

67


10.2 Limitations:-

Limited time available for interviewing the respondents. As a result of this it was not

possible to gather full information about the respondents.

Sometimes the problem which I face is language problem for which I have to make

them understand.

Non-cooperative approach of the respondents

10.3 Recommendations

Here, employees are suffering from problems in computers like mouse not working

sometimes, display makes problems sometimes. Now a day‟s whole works is depends

on computers, if company can change the pc‟s or repairs it then the work should be

done effectively & efficiently.

The employees wants neat & clean atmosphere. Because of improper old infrastructure

they can‟t concentrate on their work. If the atmosphere should be neat & clean the

employees can able to concentrate on their work.

10.4 Conclusion:

The HR department in ONGC is very supportive. The all employees are fully satisfied

with all the incentives & benefits schemes given by the company. They get more motivated by

these schemes. This is one of the best company where the employees are not leaving there job.

Here HR department are always in search of “what are the weakness and how can be rectified

in the competitive edge of globalizations concept and changed economic scenario of world”.

The need has been felt as to how the company can make its welfare schemes attractive to

enable an organization to retain their human capital to pay the best packages to their

employees for their hard work.

68


11 BIBLIOGRAPHY :-

Reference:-

1. “http://www.ongcindia.com/sitemap.introduction.asp”

2. “http://www.ongcindia.com/fin_highlights.asp”

3. “http://www.ongcindia.com/people.asp”

4. ONGC hr manual

5. “http://www.ongcindia.com/history.asp”

6. “http://en.wikipedia.org/wiki/motivation”

7. “http://en.wikipedia.org/wiki/incentive”

Other Sites :-

- www.ezinearticles.com

- www.cityhr.com

- www.businessdictionary.com

- www.allbusiness.com

- www.auditnet.org

- www.ongcvidesh.com

Books :-

- Icfai magazine

- Ashwathapa 2nd Edition

http://www.ongcindia.com/sitemap.introduction.asp

http://www.ongcindia.com/fin_highlights.asp

http://www.ongcindia.com/people.asp

http://www.ongcindia.com/history.asp

http://en.wikipedia.org/wiki/incentive

http://www.ezinearticles.com/

http://www.businessdictionary.com/

http://www.allbusiness.com/

http://www.auditnet.org/

http://www.ongcvidesh.com/

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12

Annexure

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QUESTIONNAIRE

Dear Respondent,

I am student of S.V.Institute of Management,kadi pursuing MBA . As a part of our

curriculum, we are required to undergo summer training. As a part of that training we are

doing a research on “Employees motivation regarding incentives & benefits schemes at

ONGC”. So kindly co-operate us to fill up this questionnaire. This information provided by

you would be used for study purpose only and will be kept confidential.

Q.1. In your opinion which type of incentives or benefits motivates more? Financial incentives Non-financial incentives Both Q.2. Which of the following financial incentives motivates you the most ?

Attractive Salary/ wages

Housing facility

Insurance

Medical/Education allowance etc.

High rate of bonus

Q.3. Which of the following Non-financial incentives motivates you the most ?

Labour participation in management

Designation & status

Recognition of good work

Delegation of authority to subordinates

Fair opportunity of promotion

Encouragement for self & career

development

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Q.4. How far you are satisfied with the incentives provided by the organization? Highly satisfied Satisfied

Neutral Dissatisfied Highly Dissatisfied Q 5. Show your level of agreement from the following statements:

Strong

ly

Agree

Agree Neutral Disagre

e

Strongl

y

disagre

e

Reasonable periodical increase in salary

Job security exist in the company

Good relationship with co-workers

Performance appraisal activities are helpful to get motivated

Job facilities exist in the company

. Q 6.Tick any one from the following factors which motivates you the most?

A) Pay for time not worked

Maternity leave

Paid vacations and holidays

Sick leave

Severance leave

Quarantine leave

Accident & disability leave

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Q.7 Which two allowances motivates you most?

B) Insurance Benefits

Workers benefits

Health insurance

C) Retirement benefits

Pension plan

Contributory plan

Non Contributory plan

Defined benefit plan

Defined contribution plan

D) Personal service and family

friendly benefits

Employee Assistance Programs

Child Care

Elder Care

Sick child Benefits

Food


Hard Duty Allowance

Overtime Allowance




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Q.8. Please tick from the following travelling allowance which prefer you most?

Q.9. Which of the following Educational facility provided by organization, you avail the most ? Q.10.Pick out the most important motivating factor for the employee performance from the following: 1) Incentives given 2) Leave policy practiced 3) Medical allowance benefit 4) Education allowances 5) Travelling allowances 6) Annual Increment Q.11.From the following, which incentives do you want from the organization to implement?

a). Membership & Seniority base incentives b). Job status based incentives c). Competency based incentives d). Performance based incentives

Satisfied Dissatisfied Can’t say

Local Travel Charges on Tour

Daily Allowance

Transfer TA

Payment of TA on First Appointment

Reimbursement of Taxi Hire Charges to

Inspection Staff

Central school

Children’s education allowances

Merit scholarship

Special award scheme

Reimbursement of Admission Fee

Hostel subsidy

Transport

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Q.12.What is the reason for selecting your present job?

Good salary Closer to residence

Multi National Company Incentives/ Rewards

Job Security Challenging Friendly atmosphere Better career

Q.13. What changes can be made to improve the work place environment? …………………………………………………………………………………………. .......................................................................................................................... Q.14 Are you satisfied with the support from the HR department?

Highly satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

Demographic Information :-

Sex : M/F

Age : .........

No. of year of service : a) 0 -- 5

b) 05 -- 10

c) 10 – 20

d) 20 -- 30

e) 30 & above

hr new - copy

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