ONGC Performance Appraisal Report
ONGC Performance Appraisal Report
ONGC Performance Appraisal Report
OBJECTIVES:
The project deals with evaluation efficiency of existing PAR system in ONGC and
at the same time its drawbacks. The study also focuses on the problems faced by
the employees of the organization in respect to its PAR system. The purpose of the
study is to qualitatively evaluate the methodology as well as the procedure for
performance appraisal of the employees from the perspective of 3 tiers that is the
accepting authority, the reporting authority and the reviewing authority of the
company so as to transform the HR field from merely being strategy implementers
to a function that drives an organization strategically and hasmajor impacts.
RESULTS:
Employees of Oil and Natural Gas Corporation limited are satisfied with the
existing PAR system in order to evaluate their performance. However, a change in
the system is required to evaluate the performance effectively as well as
efficiently.
CONCLUSIONS:
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OBJECTIVES OF THE STUDY
To find out the difficulties faced by the employees of the organisation with
To find out whether the employees are satisfied with the present system of
skills necessary to perform their duties. It clears growth paths for especially
talented individuals.
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AIM OF THE STUDY
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The aim of doing Performance Appraisal is to:
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Methodology is the systematic, theoretical analysis of the methods applied to a
field of study, or the theoretical analysis of the body of methods and principles
associated with a branch of knowledge. It typically encompasses concepts such as
paradigm, theoretical model, phases and quantitative or qualitative techniques.
A methodology does not set out to provide solutions but offers the theoretical
underpinning for understanding which method, set of methods or so called “best
practices” can be applied to a specific case.
by a discipline".
2. "the systematic study of methods that are, can be, or have been applied
within a discipline";
3. "The study or description of methods".
Research Design
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Descriptive Research
Sampling Plan
The samples are taken of selective sample plan and Random Stratified Sampling
Method has been adopted for the purpose of study.
Sampling Size
The Sampling Size is 50.
PRIMARY DATA–
The primary data were collected by interaction with various levels of employees
belonging to different department and performing various functions. For this a
questionnaire was formed through the deep study of subject matter. The whole
questionnaire was divided into five categories. After forming the final
questionnaire survey was conducted. As a result of this survey primary data was
collected which was unorganized and unsystematic so collected which was
interpreted in the form of pie charts to have a clear understanding of the data.
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SECONDARY DATA–
The sources of secondary data were the ONGC’s HR manual and the
performance appraisal forms used for different levels and also through the
earlier studies being done on the related topic as was provided by the high level
executives and library supplements.
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INTRODUCTION
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Performance appraisal is the single most powerful instrument for mobilizing
employees in sophisticated andwell managed organizations in order toachieve the
strategic goals. No other management process has as much influence
overindividuals’ careers and work lives as the performance appraisal system .In
the words ofHeyel., (1968) “It is the process of evaluating the performance
and qualifications of theemployee’s in terms of the requirements of the job
for which he is employed, for thepurpose of administration including
placement, selection for promotions, providingfinancial rewards and other
actions”. Further, Scott &Spriegel (1962) opine“Performance appraisal is a
step where the management finds out how effective it hasbeen at hiring and
placing employees”
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OBJECTIVES
Identify the level of performance expected and set a standard for all
members ofthe organization.
Prepare material needed for training and conduct programs for all members.
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Regularity of attendance.
Self Expression: Written and oral.
Ability to work with others.
Leadership Style and Abilities.
Initiative.
Technical Skill.
Technical Ability.
Ability to Grasp New Things.
Ability to Reason.
Originality and Resourcefulness
Creative Skills.
Areas of Interest.
Area of Suitability.
Integrity.
Capability for Assuming Responsibility.
Level of Acceptance by Subordinates.
Honesty and Sincerity.
Thoroughness in job and Procedures.
Knowledge of Suggestions and procedures.
Quality of Suggestions offered for improvement
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The systematic assessment of employees’ performance covering 32 firms in
5major industrial towns in India assessed that only 21 units used a formal
and a systematic personal appraisal program in respect of white-collar
employees. The remaining, as such had no formal system of appraisal. All
organizations relied on the impression of superiors and top management for
giving rewards and punishments to their employees.
Table 1 Purpose of Appraisal Programs
PURPOSE WHITE COLLAR BLUE COLLAR
EMPLOYEES EMPLOYEES
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Process and Methods of Performance Appraisal
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METHODS OF PERFORMANCE APPRAISAL
A: TRADITIONAL METHODS
this method, judgments about performance are recorded on the scale. The
behavior and trait based qualities and characters to be rated like quality and
volume of work etc. This character is known by the point given by rater. The
points given by the rater to each character are added up to find out the
performance. Employees are ranked on the basis of total points assigned to each
one of them.
2. Ranking Method
Under this method the employees are ranked from best to worst on some
characteristics. The rater first finds the employee with the lowest performance in
that particular job category and rates the former as the best and the latter as the
poorest. Then the appraiser selects all the employees inthat group and ranks them.
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3. Paired Comparison Method
This method is relatively simple. Under this method, the appraiser ranks the
employees by comparing one employee with all other employees in the group, one
at a time. This method results in each employee being given a positive comparison
total and a certain percentage of total positive evaluation.
Forced distribution method is developed to prevent the appraiser too high or too
low. Under this method, the rater after assigning the points to theperformance of
each employee has to distribute his ratings in a pattern to conform to normal
frequency distribution.
5. Checklist Method
The checklist is simple rating technique in which the supervisor is given a list of
statement or words and asked to check statements representing the characteristics
and performanceofeach employee. There are three types of checklists methods viz.
simple checklists, weighted checklist and forced choice method.
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6. Essay Appraisal
This method requires the manager to write a short essay describing each
employee’s performance during the rating period. This format emphasizes
evaluation of overall performance based on strengths/ weaknesses of employee
performance, rather than specific job dimensions. By asking supervisors to
enumerate specific examples of employee’s behaviors, the essay technique
minimizes supervisory bias and halo effect.
7. Group Appraisal
8. Confidential Reports
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9. Grading Method
In this method, certain categories of worth are established in advance and carefully
defined. There can be three categories established for employees: outstanding,
satisfactory, and unsatisfactory. There can be more than three grades. Employee
performance is compared with grade definitions. The employee is, then, allocated
to the grade that best describes his/her performance.
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B. MODERN METHODS
The results from 360 Degree feedback are often used by the person receiving the
feedback to plan their training and development. The results are also used by some
organization for making promotional or pay decisions, which are sometimes called
“360-Degree Review.”
2. Assessment Centre
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3. Management by Objective:
4.Psychological Appraisals
a) In depth interviews
b) Psychological tests
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Evaluation is conducted in the areas of
b) Emotional stability
c) Motivational responses
f) Sociability
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5. Behaviorally Anchored Rating Scales (BARS)
3. Reallocating incidents
4. Scaling incidents
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USES OF PERFORMANCE APPRAISAL
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Job Design Errors: Poor performance may be a symptom of ill-
conceived job designs. Appraisals help diagnose of ill-conceived job designs.
Appraisals help diagnose these errors.
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LIMITATIONS OF PERFORMANCE APPRAISAL
The major problems in performance appraisal are:
Rating Biases: The problem with subjective measure has the opportunity for bias.
Halo effect
Personal prejudice
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TYPE: Indian Multinational Oil and Gas Company.
HEADQUARTERS: Dehradun,Uttarakhand,India
NUMBER OF EMPLOYEES:33,000+(2018)
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Maharatna ONGC, which stands for Oil and Natural Gas Corporation
Limited, is the largest producer of crude oil and natural gas in India, contributing
around 70 per cent of Indian domestic production. The crude oil is the raw
material used by downstream companies like IOC, BPCL, and HPCL to produce
petroleum products like Petrol, Diesel, Kerosene, Naphtha, and Cooking Gas-
LPG.
Its wholly-owned subsidiary ONGC Videsh Limited (OVL) is the biggest Indian
multinational in the energy space, participating in 36 oil and gas properties in 17
countries. ONGC subsidiary Mangalore Refinery and Petrochemicals Limited
(MRPL) is a Schedule ‘A’ Miniratna, with a single-location refining capacity of
15 million tons per annum.
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Vision
Mission
World Class
Focus on domestic and international oil and gas exploration and production
business opportunities.
Provide value linkages in other sectors of energy business.
Create growth opportunities and maximize shareholder value.
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Dominant Indian Leadership
ACTIVITIES:
Exploration
Discovered six out of seven producing Basins in India. Located 8.78 billion
tones of Oil & Oil Equivalent in Indian Basins with over 400 discoveries
ONGC is the largest exploration acreage and mining lease holder in India
83% of established reserves (out of 10.9 BT) in the country have been
discovered by ONGC.
22 new discoveries - 10 new prospects, 12 new pools in FY’15
Reserve Replenishment Ratio (RRR) for the last ten years has been more
than One (3P Reserves)
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Production
ONGC has been able to arrest decline in majority of its matured fields (of
vintage 30-50 years) that contribute 72% of the company’s O+OEG production
through its majorly successful technology-intensive IOR and EOR.
1184 oil wells and 151 gas wells in offshore and 4735 oil wells and 606 gas
wells in onshore as on April 1, 2015
Western Offshore production up by 7.5% (16.20 MMT in FY’15 against
15.54 MMT in FY’14)
Produces 1.2 million barrels of oil equivalent per day
ONGC accounts 69% of Crude oil & 70% of Natural Gas production
Produced 1,743 Million Metric Tons of Oil Equivalent so far
Arrested decline in 14 major fields producing for over 30 years, vis-a-vis
global decline rate of 7% from matured fields
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ONGC Group of Companies
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ONGC as an integrated Oil & Gas Corporate has developed in-house capability in
all aspects of exploration and production business i.e., Acquisition, Processing &
Interpretation (API) of Seismic data, drilling, work-over and well stimulation
operations, engineering & construction, production, processing, refining,
transportation, marketing, applied R&D and training, etc.
Today, ONGC has the highest market capitalization (among Indian public
enterprises) of over INR 3 lakh crores with 4,84,544 shareholders and the
highest net Profit earning Indian public enterprise with the net profit of Rs
22,095 Crores (after Tax) for the fiscal year 2014-15.It is a Public Sector
Undertaking(PSU) of the Government of India’s largest oil and gas exploration
and production company. It produces around 77% of India’s crude oil
(quivalent to around 30% of the country’s total demand) and around 62% of
its natural gas.
DIRCTORS:
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Performance Appraisal Report is an index of an Employee / Executive’s work
performance over a given period of time. It is crucial for his /her career growth
as it indicates the Strengths, Weaknesses (if any ), Training needs, nature of job
being performed, problems faced in work situation.
EVALUATION:
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COVERAGE:
The Performance Appraisal covers:
PROCEDURE:
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b. By the Reviewing Officer
The reporting officer for writing PAR of an employee of class III / IV and E-O
level category will be the executive under whose control the employee is
working .The Reviewing Officer will be of one grade above the grade of
Reporting Officer.
The PAR in respect of E-0 to E-6 level executives is being maintained in PAR
Department at Headquarters of Corporate R & P Division. As regards, E-7 and
above level, all such reports which are received from Regions / Institutes/
Headquarters are maintained at the Office of Chairman -cum – Managing Director.
The Reporting Officer will be the Officer to whom the executive reports for his
day-to-day work. Review of the PAR will be done by the executives to whom the
Reporting Officer is responsible for his functions. Accepting authority will be the
executive higher than the Reviewing Officer at different stages depending upon
the nature of the grades, as per Delegation of Powers in PAR Rules
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a. The Performance Appraisal Reports of Executive of E-6 level i.e. Deputy
ACCEPTING AUTHORITY:
A very senior officer who is designated under the Rules to re-look atPerformance
of the Appraise and review the observations of the first and second Appraisers. He
would finally determine and evaluate the performance of the Appraise, In case of
disparity between his assessment and that of the first and second Appraisers; he
has to record the basis of his revised assessment. He is expected to record
specifically his comments in cases of overall performance grading A+ or D, and
low score for personality traits by either of the earlier two Appraisers.
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PERFORMANCE APPRAISAL REPORTS (PAR) OFFICER
The PAR activities are a part of personal function, but the PAR system is
essentially based on support of various departments. This demands that senior
officer not less than E4 of the personnel department is designated as PAR
Officer, who will have responsibility to respond quickly to the enquiry. Each
Regional Office / Institute will have a PAR Officer. PAR Officer will report
directly to Head of P&A in Regional Offices, who has the overall responsibility of
development of human resources. In respect of offices in ONGC HQ in
Dehradun and Delhi corporate PAR Officer will function under General
Manager (Corporate Recruitment and Promotion).
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In evaluating performance (block A) due consideration is to be given
to the bench marks indicated there in and one numerical block only is
to be ticked.
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mention personality traits on which appraise need to be counseled /
advised for further improvement. Of his performance and which is
not being considered as an adverse entry.
The two PAR formats belonging to junior (E-1 to E-3) and middle (E-4 to E-6)
reflect both performance and managerial competency components. These have
been assigned numerical scores that are notional and merely act as a guide. The
grades of performance are purely dependent on the judgment of the first appraisers
and the total job situation. However, the final grade maybe at variance with the
total score. The 2nd Appraiser takes an overall view, both of the performance and
the personality of the Appraise, while determining the ‘FINAL GRADING’. A
prudent approach by the Accepting Authority is required to judge the assessment
of the Reviewing Authority, who may belong to functional discipline of the
Appraisee along with the detailed assessment of the Reporting Authority.
The Accepting Authority gives the final grade after the judgment of 1st and 2 nd
Appraisers, and is the DESCISIVE GRADE of the Appraisee executive. In case of
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any discrepancy, Accepting Authority and 1st and 2nd Appraisers MUST mention
adequate justification. In the absence of adequate explanation the report is
considered incomplete and returned to the Appraisers for confirming to the
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these are considered for assessment of performance. Additional blank space has
been provided in the appraisal format.
The appraiser assesses the performance of an Executive in totality and grades him
A+(Excellent), A (Very Good), B(Good), C (Adequate), D (Not adequate) after
assigning one of the numerical blocks and personality traits. ONGC doesn’t
believe in detail relative ranking and hence running numbers like 40-45 are not
suggested. Furthermore, the Appraiser would always ascertain an executive’s
effort whiledetermining results. Job parameter is not the sole criteria for assessing
contribution of asenior executive, particularly because he achieves results through
others. Dueweightage is to be given to executive’s personality trait also.
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four in number) for nine to ten hours daily. Subsequently, they are interviewed for
hours together and are thereafter a feedback is given. The frequency ofADCs is
three courses conducted for twelve participants each, once a year.
AWARDS SCHEME
1.1- The system of giving annual awards at the corporate level was introduced
for the 1st time in 1986 in the category of manager of the year for
outstanding contribution. This was approved by executives committees in
its 24th meeting held on 31.3.1986.subsequently through a decision of 26th
EC held on 30.9.1986, the scope & categories of annual award was
expanded to include additional awards as follows:-
Engineer of year
1.3- Further ,EC it’s 47th meeting approved inclusion of ‘DOCTOR OF THE
YEAR’ .The various discipline covered under ‘SCIENTIST OF THE
YEAR’ AND ‘ENGINEER OF THE YEAR’ were categorised as:-
Chemist
Computer
Geologist
Mathematician
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Reservoir engineer
Civil
C&M
Drilling
Electrical
Mechanical
Production
Instrumentation
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ONGC RATNA:
Creativity
Business processes
Courage of conviction
Leadership style
Effective teamwork
Motivation PAR excellence
AWARD FOR MANAGER: The following attributes will be considered for the
award
High performer
Processes
HR management
Concept of HSE
Mobility
Cost consciousness
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Quantitative criteria Maximum marks Marks obtained
ACR Rating 20 4 8 12 16 20
Physical targets 10 2 4 6 8 10
Control parameters
Time optimization 7 1 3 5 7
Others –inventory
5 1 2 3 4 5
optimization
Cost optimization 8 2 4 6 8
The following attributes will be considered for young excellence of the year
award.
Excellent performance.
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High moral,honesty ,dependability and discipline.
ELIGIBILITY
The basic points regarding the eligibility for group cash awards would be.
2.1-Record performance:
This would include only those cases where highest performance has been
achieved, for instance time taken in rig movement, record performance of rig in a
single day/month, rig building time, time taken in well completion etc.
To include those tasks which have yielded gains to the organization like
salvaging/ recovery of an equipment in repair and fabrication of an equipment ,
development of a chemical process, in house development of a computer program
etc.
2.3: - Exemplary action in crisis. this would involve those cases where timely
action has saved the corporation’s property,humane life etc.,or theaction has led to
prevention of huge losses to the organization.
2.4: - Grant of group award can also be considered in other cases where the
authorities feel that it would enhance the general morale in the organization.
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2.5: -The appropriate amount to this effect would be provided for in the budget.
Award of certificate in this context would be within the preview of executive.
LEVEL DESIGNATION
CLASS 1
Executive Director
E9
Group of Gen. Managers
E8
E7 General Manager
E6 Deputy Gen. Manager
E5 Chief Manager
E4 Manager
E3 Deputy Manager
E2 Senior (P&A) Officer
E1
P&A Officer
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IMPORTANCE OF THE STUDY
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STEPS OF IMPLEMENTATION
The following steps are recommended for the implementation of performance
appraisal system in ONGC:
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Performance Appraisal System gives a proper assessment of employee’s
contribution to the Organization.
strongly agree agree neutral disagree strongly disagree
4% 38%
33%
21%
4%
All the aspects and standards used for the evaluation of performance are known
by the employees.
strongly agree agree neutral disagree strongly disagree
18%
2%
10% 50%
20%
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INTERPRETATION- Majority of the employees is aware of the prevailing
Performance Appraisal System in ONGC.
procedure.
strongly agree agree neutral disagree strongly disagree
10% 6%
4%
80%
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strongly agree agree neutral disagree strongly disagree
10% 32%
2% 2%
54%
10%
20%
60%
10%
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INTERPRETATION- Majority of the employees wants the performance appraisal
system to be open and transparent in order to avoid any biasness.
6%
40%
4%
30%
61
strongly agree agree neutral disagree strongly disagree
9%
9% 9%
23%
50%
procedure.
strongly agree agree neutral disagree strongly disagree
7%
5%
3%
20%
65%
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INTERPRETATION- 85% of the employees feels that 360-degree feedback
should be brought back in performance appraisal procedure of ONGC.
15 10
40
15
25
INTERPRETATION- 24% of the employees do not think that introducing norms and
policies of performance appraisal during induction programme will be helpful to
employees. But at the same time majority of the employees are in support of the
statement.
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Action plans for improvement of poor performing employees exists.
32% 5%
5%
23%
35%
20
10
20
Strongly agree
Agree
15 Neutral
Disagree
Strongly disagree
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INTERPRETATION- 35% of the employees feel that PRP should be based on PAR
as it is justifies the efforts of employees whereas 30% of them disagree to the
statement.
5
3 2
30 strongly agree
agree
neutral
disagree
60 strongly disagree
65
10 20
5
10
strongly agree
agree
neutral
disagree
strongly disagree
45
5
3 2
50 strongly agree
agree
neutral
disagree
40 strongly disagree
66
The performance appraisal helps to win co-operation and team work
15
5 30
10 strongly agree
agree
neutral
disagree
strongly disagree
40
20
10
20
strongly agree
agree
neutral
disagree
strongly disagree
15 35
67
Interpretation-35% of the employees agrees with the statement that
performance appraisal improves employees personnel skill and brings new
innovative ideas in work place.
15 15
strongly agree
agree
neutral
disagree
30 30 strongly disagree
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68
Training and development programmes are effective for individual and
organisation development
10
3 2
15
strongly agree
agree
neutral
disagree
strongly disagree
70
8
7
10
strongly agree
agree
55 neutral
disagree
strongly disagree
20
69
Interpretation- 55% of the employees agrees with the statement that performance
rating helps employees to provide proper counselling whenever the requirement
arises whereas most of them disagrees with the statement.
12 5
3
50 strongly agree
agree
neutral
disagree
strongly disagree
30
70
The performance appraisal system helps to identify the strength and
weakness of the employees
5
3 2
20
strongly agree
agree
neutral
disagree
strongly disagree
65
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The employees of ONGC have different views about the
PerformanceAppraisal System in ONGC. Some employees of this
organization think that Performance Appraisal is effectively run in this
organization but according to the employees that there is a great need to
improve the Performance Appraisal System procedure.
In the survey I have found that employee of different level have different
view about the Performance Appraisal System.
All the employees are fully aware of the Performance Appraisal procedure
followed in organization and about the positive as well as negative aspect of
Performance Appraisal System in ONGC.
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During the course of study I interacted with various levels of employees belonging
to different department and performing various functions. After forming the final
questionnaire, survey was conducted. As a result of this survey primary data was
collected and the information so collected was complied to give data and make
analysis to give suggestion for improvement. After analysis it can be said that
more than that of dissatisfied employees. Those satisfied with the PAR forms said
that ONGC normally takes every step to make changes in the PAR from time to
time to cope up with the changing situation and HR policies of the company as
and when it is felt necessary but the disagreeing group suggested that there should
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In my view following recommendations may be considered while
designing the Performance appraisal system.
5) The questions regarding the parameters set in the PAR form satisfy most
of the employees but there are some executives who were not satisfied
withthe parameters set in the PAR form and they suggested that
parameters should be set according to the role and assignment.
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1. Some of the employees were not frank enough to give proper feedback as well
2. One of the major limitations was time constraint. The most important factor
which limits the research is the time factor.
3. Area constraint is also one of the major limitations for trainees because I was
restricted to a particular area only that is HR department.
5.The next limitation is some respondents gave biased response for fear of their
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QUESTIONNAIRES
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Questionnaires related to study the efficiency of
performance appraisal system in ONGC
E) Strongly Disagree
All the aspects and standards used for the evaluation of performance are known by
the employees
E) Strongly Disagree
E) Strongly Disagree
E) Strongly Disagree
E) Strongly Disagree
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Performance assessment done in the organisation always matches employee’s
expectations.
E) Strongly Disagree
E) Strongly Disagree
E) Strongly Disagree
E) Strongly Disagree
E) Strongly Disagree
(PAR).
E) Strongly Disagree
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Job rotation, promotion, suspension and dismissal should be based on performance
appraisal
E) Strongly Disagree
goals
E) Strongly Disagree
E) Strongly Disagree
E) Strongly Disagree
E) Strongly Disagree
E) Strongly Disagree
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Training programmes are effective for individual and organisation development
E) Strongly disagree
counselling
E) Strongly Disagree
E) Strongly Disagree
The performance appraisal system helps to identify the strength and weaknesses
of the employees
A) Strongly Agree B) AgreeC) Neutral D)Disagree
E) Strongly Disagree
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BOOKS
INTERNET REFERENCES
www.google.co.in
www.ongcreports.net
www.ongcindia.com
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