oil & gass development company limited internship report 2015

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1 | Page Name ; Tauqeer Ahmed Shaikh F-Name ; Toufeeque Ahmed Roll No ; 78 Semester ; 6 th Department ; Public Administration Specialization ; Human Resources (HR) University ; Shah Abdul University

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Name ; Tauqeer Ahmed Shaikh

F-Name ; Toufeeque Ahmed

Roll No ; 78

Semester ; 6th

Department ; Public Administration

Specialization ; Human Resources

(HR)

University ; Shah Abdul University

Khairpur Mir,s Sindh

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Organization ; Oil and Gas

Development Company

limited (OGDCL)

Date of submission: 03-8-2015

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Topics Page NumberAcknowledgement 3

Objective 4Executive summary 4Overview of organization 4-7HR hierarchy 7Department in OGDCL 8

HRM department 8-10

Function of HR department 11

Promotion of staff and employees 12

Recruitment and selection -

HRIS -Future outlook of OGDCL 13

Attendance management -

Training and development 13-14

Grievance policy 14

My internship program -

SWOT analysis -

Conclusion 15Recommendation -Reference 16

Table of contents

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Acknowledgement

All praise to Allah Almighty, the most merciful, the most compassionate, who enabled me to complete this task.

Especially I am grateful to my loving parents for providing me all sort of moral and social support in life. Their prayers have enabled me to reach at this stage.

I especially want to pay my gratitude to teachers, department of Management Sciences Who has enriched, nurtured and groomed me.

I am also thankful to Staff at OGDCL who gave me their precious time and entertained my queries with full concentration, despite constant daily routine office work.

Specially, I would like to thanks Hakim Lashari who help me to avail this opportunity.

Sir Nazir Ahmed (HRO at HRD) who supervise me during Internship duration.

Sir Azar Ishaq and Niaz wali : who serve a lot of time and effect for us to guide and teach us during internship at HRD department.

Mohamad Shaffqat Ahmed and kamal Omar at Section department.

Sir Saif and sir Usman at HRIS department

Human resource information system department .

Sir Ahmed Ali At recruitment and selection.

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Objectives:OGDCL is well known regional leading organization in Pakistan. It is considered as highly successful and profitable organization across all over country. Being a student of Human resource management my purpose of study was to learn how organization control over employees and manage them for better productivity of organization and how human resource activities take place in the organization like recruiting , hiring , firing ,selection , motivation ,training and development and performance management of huge hierarchy of management and employees.

Executive Summary

The Oil and Gas Development Company Limited which have a vision to be a leading Energy and Petroleum Industry recognized by its people partnerships and its performance. The rapidly growing company has total man power strength of 11358 included staff and officers. OGDCL with its core competency of exploration departments like training institute and marketing and other departments as well working to achieve its organizational objectives. OGDCL has discovered more then 66 fields of Oil and Gas. While exploring these products this company is fulfilling the corporate social responsibility by building schools and medical centres support rural devolvement program all over the country by donating in millions of rupees.

During Internship at OGDCL I interact with most of officers and staff of HRM department. I visited to sub department of HRM work with qualified officers of OGDCL In comfort and learning environment. Thoroughly I analyse all work procedure, style HRM practice like Hiring, firing, recruiting, promotion and performance devolvement, Evaluations, criteria. Procedures and training and development program of the organization under the supervision of qualified management.

There are so many good aspect related to corporation but some flaws are too I covered critically analyse of organization in my SWOT analyse and briefly

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explain my learning while describing about each department. Finally I conclude and represent some recommendations

Overview of organization

OGDCL Vision

To be a leading multinational Exploration and Production Company. OGDCL Mission

To become the leading provider of oil and gas to the country by increasing exploration and production both domestically and internationally, utilizing all options including strategic alliances.To continuously realign ourselves to meet the expectations of our stakeholders through best management practices, the use of latest technology, and innovation for sustainable growth, while being socially responsible.

Company History 

Prior to OGDCL

Prior to OGDCL's emergence, exploration activities in the country were carried out by Pakistan Petroleum Ltd. (PPL) and Pakistan Oilfields Ltd. (POL). In 1952, PPL discovered a giant gas field at Sui in 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

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exploration contracting companies terminated their operation and either reduced or relinquished land holdings in 1961.

Establishment of OGDC

To revive exploration in the energy sector the Government of Pakistan signed a long-term loan Agreement on 04 March 1961 with the USSR, whereby Pakistan received 27 million Robles 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 programme 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.

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. Toot oil field was discovered in 1968 which paved the way for further exploratory work in the North. During the period 1970-75, the Company reformed the strategy for updating its equipment base and undertook a very aggressive work 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. 

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Transition to a self financing entity

Noting the Company's success, due to major oil and gas discoveries in the eighties, the Government in July 1989, off-loaded the Company from the Federal Budget and allowed it to manage its activities with self generated funds.The financial year 1989-90, was OGDC's first year of self-financing. It was a great challenge for OGDC. The obvious initial target during the first year of self-financing was to generate sufficient resources to maintain the momentum of exploration and development at a pace envisaged in the Public Sector Development Programme (PSDP) as well as to meet its debt servicing obligations. OGDC not only generated enough internal funds to meet its debt obligations but also invested enough resources in exploration and development to increase the country's reserves and production. 

Conversion into Public Limited Company

Prior to 23 October 1997, OGDCL was a statutory Corporation, and was known as OGDC (Oil & Gas Development Corporation). It was 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.

GDR

In December 2006, the Government of Pakistan divested a further 10% of its holding in the company. The Company is now listed on the London Stock Exchange since December 06, 2006.

.

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Human Resource (HR) HIRARCHY

Departments:Many departments are working in correspondence with every other department I

will discuss only HRM department here.

HRM:

HRM department of OGDCL is not doing working as HRM of common

organizations because the most Practice of OGDCL are complex in nature with

MDEDGMManager (HR)DC HRO(A)SUPERINTENDENTASSISTANT OF HRASSIST HR LDC DPO

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other and sub division in HRM is according to as it Requirement and nature of

operation

Functions: Purpose is to deliver effective and completive workforce in organization.

To develops the coordination among all department in the organization.

Negotiations, execution and administration of Petroleum company

employees and a staff .

To make the thing and all information regarding to human resource up to

date..

.To run all the operation , practice , polices smoothly it is consider so

important..

Liaison and Co-ordination with fields, refineries, transporters, buyer

companies and other stakeholders.

Other Departments:

Production

Finance

Human Resource

Corporate Affairs & Joint Venture

Exploration

Mud Logging

Data Acquisition System

Process & Plants

Drilling & Reservoir Management

Medical Services

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HR DEPARTMENTS

AT OGDCL human resource doesnot consist of one department only; because there are lot of number of employe. To manage such a huge number of employes of the HR departments is divided in to following section

HR sections DESCRIPTIONSA Section A deals administration and medicalB Its deal with accounts, audit , procurement C Its deals with employees of plant and processC Its deals with employees of drilling and rigsE Its deal with exploration employees.F Its deal with employes of executive section

G Its deal with employees related security and drivers

Number of employees in OGDCL

In organization number of employees are around 11000 and 3052 peoples are working in daily wages and number of officers is 2604. Many people in the organization are contract based or working in daily wages. Employees are consider as 24 HR on duty workers of organization. They can be called any time of need.

Function of the Departments

During the internship in OGDCL we are introduced by the four sub department of Human resource management we are asked to visit and every department for one week in each department.

Sub department in HRM in OGDCL

HRD (human resource development ) Recruitment Human resource (selection-section) HRIS

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HRD ( human resources development )

In HRD department only promotion case are followed the promotion and recruitment criteria of corporation was noticed in 1984 after that many notifications are issued and its change according to time.There are five basic component of promotion criteria. Every criteria contain quantitative analysis of employees in the form of percentages specific numbers for exampleQualification 15 % ACR (ANNUAL CONFIDENTIONAL REPORT 25 % ) SENIORITY 5%EXPERIENCE 15% PROMOTION CRITERIA IT SHOULD BE ABOVE 40% of dedicated rating of supervisor or line manager. In this department we met withSir Nazir shab who explained about the promotional criteria we explore the files where record of employees is showed to us. Promotion time is 5 year on the base of qualification , ACR report , seniority , experience ,and result or suggestion by promotion committee.

Promotion for staff and officers.

In ACR departments Sir Azar ishaq and Niaz wali (HRO) make learned about promotional cases.

In ACR section of human resource department there are two type of evolution take place one for officer called ACR and second for staff called as PER.

Annual confidential report and performance evaluation report are presented annually on the first of January to 30 December but it is accumulated for five year.

In ACR or PER staff and officers are marked as Good , Very Good or average on the base of ACR and PER marking it is evaluated by quantitative method.

A person whose average number is around 60 considered as recommended while other is considered as UN recommended. Promotion on the base of ACR report affects salary and other benefits but not on daily routine assigned tasks.

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ACR and PER is marked on the base on Performa which is given to staff and officers. Department have criteria which was developed in 1984 but after the sue in court by the any person whole system get change now bulk curve process are followed by which promotion can be accelerated.

Recruitment and selection department

In this department we met with AHMED ALI who explained and make learn about department daily routine work.

Induction process start with the advertisement and candidate apply for desired jobs. Application are screened in this department by using specific criteria however some relaxation are given to some people according to company rule which are given bellow.

Recruiting ( short listing) it is the process of short listing application which are irrelevant or not fulfil specific criteria which was illegible for advertise job.

2 Deceased employees: after the death of employees the vacancy is offered to his or her offspring.

3 Re intendments

In 1996 (induction) Benazir Bhutto Shaheed appointed some people to organization.

4 sacked employees

Act was passed called as SERA employees are departed from the Job which was illegally appointed by Benazir.

5 Sacked employees reinstatement act pass by National Assembly in 2010 again allow 450 employees to join jobs.

Section department

In this department we get chance to work with Mohammad Shaffqat Ahmed

In this department document and certificates which are provided by the candidate for job are send to Institute where he study and HEC (Higher education commission) Irrelevant and fake application are separated from lists.

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Section also deal with employees befit program and promotional case related to pay.

HRIS (human resource information system)

IN this department we get chance with work with Usman Ahmed. He explained about Human resource information system.In HRIS department all date is made computerized by using two software (Oracle) which was introduced since 2006 in the organization and (FMS )for dealing pension cases was introduced recently last year. Oracle have different module which are used in different department of the organization but HR module is used in HR department. All the computers are connected to main server in the department. Its deal all sort of data and cases like training, promotion, experience , posting , family information and cases ,letters, and joining of the New employees. HRIS works start by receiving letters from the different departments of organization. Oracle software was introduced since 2006 so this department works continuously to make all new and previous data computerized. Department have only 16 member they have a lot of work burden. Its mostly work of running data, and previous data of employees , pension cases and pay roll of employees. Sir Usman also told our department is also responsible to answer the question of Secretariat about quota , No of seats for specific provenience in urgent base so it is not possible to answer the question by using file system hence HRIS is backbone of organization so making coordination among the Human resource.

Future Outlook of OGDCL

During the last five decades, OGDCL has covered significant distance. It has braved myriad challenges to endorse its position in the industry today, such as earning the coveted status of a self-sustaining and self-reliant organization, and embracing a progressive corporate culture. No wonder today, OGDCL has attained the benchmark position as an industry leader, in the Pakistan E&P industry. OGDCL has a strong vision and passion to contribute to the development of the Country’s E&P sector and to enhance energy security of Pakistan. With a formidable presence in the length and breadth of the country, OGDCL is looking beyond geographical boundaries for E&P opportunities. Efforts are continuing towards formulation of Joint Ventures with leading E&P companies both within the country and abroad.OGDCL has a highly significant role to play in narrowing the yawning divide between demand and supply of energy in Pakistan. As we step forth to embrace this daunting challenge, we do it with vision and commitment. We have a

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futuristic business strategy in place, which seeks to promote and protect the interests of all stakeholders-employees, shareholders, partners, communities and people.The Company, equipped with its Strategic Business plan in line with augmenting energy supply in the Country, has developed strategies to optimize reserves additions and its production base. With technical prowess in onshore exploration and production, the Company has changed focus to a more challenging area i.e. offshore exploration and tight gas reservoirs. OGDCL is actively participating in national bid rounds for acquiring more acreages and gearing to participate in International bidding rounds to work towards international presence in line with its Vision. OGDCL also intends to enhance its reserves and to focus on, and strengthen core business (E&P) functions by incorporating international best practices and innovative thinking in Company culture. In addition, the Company is enhancing corporate goodwill through focused CSR initiatives for the benefit of the communities that OGDCL interacts with.

Attendance and leave management system.

Every department in the organization is responsible for its attendance however it also have electronic access system. Every employees have special card for enter in the organization it is also source of managing attendance in the organization.

Training and development department.

The purpose training and devolvement to enhance the skill and knowledge of employees to make them effective workers of organization. OGDCL department supervisors are responsible for promotion of their staff. All promotion and degradation are deal in HR department but training of new employees are deal in OIST which have separate identity. It is responsible to train the new joining people and offer the training program for present employees.

Organization grievance policy

In the organization grievance of employees are deal by top level manager by using organization policy and rule. Major case are deal by boards of directors.

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The employees working at OGDCL have to follow two kinds of rule.

1. The rule which are developed by government of Pakistan2. Second type of rule implemented in OGDCL are developed by

mutual agreement of CBA ( collective bargaining authority)3. The rule are approved by NIRC and board of directors.

My internship program:Introduction to Branch where I worked in Human resource department it consist of 4 sub Sectors which are HRD, HR section, Recruitment and HRIS during my internship program work under the so many supervisors and officer .

Sir Nazir Ahmed ( HRO & Internee co coordinator)

During the internship program we briefly learn the work from all sub department of HRM in the organization , we solved cases, explores files, analyse data , screening application, learn and read different criteria’s in which organization work. Environment in the organization was so learning for us. We learn a lot under the supervision of qualified staff and managers.

Swot analysis.

Strength Weakness Only compete oil company

in Pakistan Most number of employees Profitable and successful

leading organization It is only federal business

organization Employees are generally

satisfied. very liquidity and profit

earning organization

Governmental style of working

Too much pathetic environment

Sizing issue also face by organization

Rules and regulation and practice are not uniform

Too some extent favouritism and nepotism is also found.

Strong hold of union in the organization

Delays in operation due huge hierarchy of organization

Same daily routine work after and before promotion

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Task never change in organization even promote in next grade.

Opportunity Theatre Big opportunity to discovery Exploration Great opportunity to develop more and more there is no other opponent organization in Pakistan.

Unfair system of organization

Lacking are theatres for organization

Over staffing but not right person for right job.

Less availability of suitable person for job.

ConclusionIn the light of SWOT analysis of corporation ODGL is well reputed and one of the leading profitable organizations of Pakistan due to huge hierarchy of corporation some lacking is also found. It can be controlled by the top management and mutual cooperation of management and staff. As per my judgement it is well training centre or learning institute for up growing business student they can learn more and more ,get experience and can get opportunity to develops skill and knowledge during working with highly qualified officers in learning environment of corporation.

Recommendations OGDCL should adopt the formal style of working and environment

should be formal. All the polices, practices and procedure should be uniform for all. Favouritism and nepotism should be avoid in the organization All the practice of HRM should be on merit base. Organization Union hold in the organization should be eradicate or minimize There should be job rotation in the organization Supervisor should be strict not so lenient. Manager should allow to work in other department without any restriction

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There are no specific criteria for training internees. Every department should be given special tasks to students

The HRM Oracle should be more users friendly so that every employee can access easily or OGDCL should train all employees in basic computer knowledge

Contract base employees should be given some extra benefits and chances for promotion as permanent employee

Bibliography

www.ogcl.com.pk

HRM department

floor 6 OGCL headquarter blue area Islamabad