Hrpracticesinpetrochemicalindusty Acomparison 120621020327 Phpapp02

8/11/2019 Hrpracticesinpetrochemicalindusty Acomparison 120621020327 Phpapp02

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P r e s e n t e d B y -

D E BD E E P BH A N D ARI (1 1 / M BA / 0 2 )

PRAMITA SAMANTA (11/ MBA/03)

SNEHA AGARWAL (11/ MBA/70)

S U M A N S A U RA BH (1 1 / M BA / 7 1 )

P O O J A KE J RI WA L (1 1 / M BA / 7 2 )

HR PRACTICES IN THE INDIAN

OIL & GAS INDUSTRY


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INTRODUCTION

HRis a critical function in an organization, not only for its internal

activities but also for its growth and expansion. It plays a defining role in

ensuring that motivation levels stay high at work, which is essential for an

organization to grow. As these aspects are very closely tied to the nature of

work, HR function faces challenges that are very different depending on

the industry. A case in point is the oil and gas industry in India.

Indias Oil and Gas Industry has an interesting mix of Oil & Gas companies

from the public and private sector.

Public Sector: Oil & Natural Gas Corporation (ONGC)

Private Sector: Reliance Petroleum Limited (Reliance Industries Limited)


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OIL & NATURAL GAS CORPORATION(ONGC)

ONGCis a public sector petroleum company in India, contributing more than 79%of Indias crude oil and natural gas productions,ranking 3rd in Oil & GasExploration & Production (E&P) Industry globally.

ONGC is the flagship company of India and making this possible is a dedicated

team of nearly 40,000 professionals.

Over 18,000 experienced and technically competent executives mostly scientists

and engineers from distinguished Universities / Institutions of India and abroad

form the core of the manpower.

The company has adapted progressive policies in scientific planning, acquisition,

utilization, training and motivation of the team.

HR Vision :"To build and nurture a world class Human capital for leadership in

energy business". 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.


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HR Objectives

To develop and sustain core values.

To develop business leaders for tomorrow.

To build and upgrade competencies through 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.


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RELIANCE INDUSTRIES LIMITED (RIL)

Reliance has the largest private sector oil and gas exploration and

production company in India, with one of the largest petrochemical and oil

refining complexes in the world.

Reliance Petroleum Limited (RPL) merged into Reliance Industries Limited

(RIL) effectively on September 19, 2002.

Exploration and production of oil and gas, petroleum refining and

marketing, petrochemicals form the core of RILs businesses.

RIL's talent base, as on March 31, 2011, stands at 22,661 with an average

employee age of 41 years.

People are central to Reliance's growth strategy. A large in-house pool ofintellectual capital is the driving force behind Reliance's rapid growth, and

is one of its competitive advantages.

Reliance believes in Growth in Commitments: quality, research &

development, health, safety & environment, human resource development,

social responsibility & community development.


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HR Objectives

Energizing and engaging the existing work force and creating an exciting

workplace, where every person can reach his or her full potential.

Building human competencies & capacities and continuous personal

development is critical to the continued growth and success.

Incorporating world's best practices and processes and reengineering

existing processes and introducing new processes.

Providing world-class exposure, growth opportunities and competitive

compensation packages.

Achieving excellence in occupational & personal health and safety of its

employees across locations.


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SIMILARITIES

HR Policies of both the Companies are directed towards thebetterment of the work-life of their employees.

Both the companies want to sustain their core values.

Both the Companies focus on Health and Security concerns of theiremployees.

Both the Companies fulfill their Corporate Social Responsibilitieswhich one way or other becomes the factor of motivation for theiremployees.

Both Companies focus on developing competencies and skills.

Internal promotions are into play in both the organizations.

Interest of workers are given importance in both the organizations.

HR Audits are done in both the organizations.

Team work is promoted in both the organizations.


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DIFFERENCES

MAIN FOCUS ONGC RelianceIndustries Ltd.

Objective of the

HR policies

To develop professional

approach in employees

and aligning them with the

Co. objectives.

To develop future

workforce.

Recruitment Recruitment policy doesntconsiders age as an

important factor.Reservations.

Prefers young talents to

build an efficient

workforce in future.No Reservations.

Remuneration Pay scales , allowancesand incentives are

governed by the Dept. of

Public Enterprise,GOI.

Depends on theperformance,

responsibility and

accountability of theemployee


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DIFFERENCES

MAIN FOCUS ONGC RelianceIndustries Ltd.

Training And

Development

Have less focus on training

and development.

Training and executive

coaching is done often

with changing

environment.

Appraisal

System

Have guidelines set to

recognize employees.

Have special committee to

ensure efficient delivery

of HR services to

employees.

Employee

Satisfaction

Organization do not have

any control as the

guidelines are set by the

Dept. of Public Enterprise,

GOI.

HR policies are employeefriendly keeping in view

employee needs.


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Industry Specific HR Functions

Training: HR invests heavily in industry specific job training and safety

training.

Motivation:Field engineers stay in the oil rig, which is in isolated,

sometimes hostile locations for extended periods of time. With respect to

Field Engineers, HR policies focus on the following:

Flexible lateral movements are offered for employees to discover their

niche areas in the field.

Interactive sessions with the employees through contextual databases and

company sponsored offsite are facilitated to promote interpersonal

effectiveness and bring down the barriers to communication amongst a

diverse team of FEs.

Motivational work groups, discussion forums and close supervision

ensure that signs of de-motivation are detected early. This helps in beating

career blues and promotes a vibrant work place.


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Industry Specific HR Functions

Appraisals Reward Systems:In addition to money, perks, incentives,

vacations, etc which are predominant motivators in the oil industry, the

motivation at this level is the increased responsibility and the leadership

role associated with it.

Recruitment:Physical stamina, reflexes, reaction time, mental physical

and psychological resilience are looked for in the candidates.

Sharing the experience: University of Petroleum and Energy Studies

annually holds Oil & Gas HR Round Table, where each company shares its

experiences.

Diversity: The HR Department's policy of maintaining diversity at rigs

helps strengthening bonds amongst employees.


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Indian Oil & Gas Industry: HR Challenges

The oil and gas industry in India currently faces talent shortage:The

industry is likely to require around 25,000 additional professionals in the

next five years due to business growth and retirement or attrition in the

sector.

Attracting the right talent :Another cause for concern around the loss of

industry talent is that skill sets in this industry are highly specialized and

difficult to develop and acquire.

Maintaining the sex ratiois another challenge that oil and petroleum

sector companies face.

Aging workforce :In line with the global trend, the average age of

workforce in the Indian oil and gas sector is high. Around 50% of

employees have more than 20 years of experience, and the majority is due

to retire in the next 510 years. This is likely to significantly reduce

experienced talent in the oil and gas sector. The sector may also face 34%

of employee retirement at the middle-management level.


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s o u r c e s

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w w w . r i l . c o m

w w w . o n g c i n d i a . c o m / p e o p l e . a s p

w w w . a s t o d e h r a d u n . c o m / h r m . p d f

Thank You
http://petroleum.nic.in/petstat.pdfhttp://petroleum.nic.in/petstat.pdfhttp://petroleum.nic.in/petstat.pdfhttp://www.ril.com/http://www.ongcindia.com/people.asphttp://www.ongcindia.com/people.asphttp://www.ongcindia.com/people.asphttp://www.ongcindia.com/people.asphttp://www.ongcindia.com/people.asphttp://www.ongcindia.com/people.asphttp://www.ril.com/http://petroleum.nic.in/petstat.pdfhttp://petroleum.nic.in/petstat.pdfhttp://petroleum.nic.in/petstat.pdfhttp://petroleum.nic.in/petstat.pdfhttp://petroleum.nic.in/petstat.pdf

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Hrpracticesinpetrochemicalindusty Acomparison 120621020327 Phpapp02