Human Resource Management

[TRAINING AND DEVELOPMENT]

Including a study of the training & development

practices at ONGC & Infosys

Submitted by:

Charu Katewa
Table of Contents

Acknowledgment Error! Bookmark not defined.

Introduction 3

Objectives of Training & Development 4

Training & Development as a source of competitive advantage 5

Orienting Employees 6

Training 7

Methods of Training (and development) 8

Training Process 9

Management Development 18

Primary & Secondary Data 222

ONGC: Profile 24

ONGC: Trainings & Development, A case study 30

ONGC: Trainings & Development, SWOT analysis 37

Infosys: Trainings & Development, A case study 38

Conclusion 44

Bibliography 45

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 There is nothing training cannot do;
Nothing is above its reach; It can turn
bad morals to good, it can destroy bad
principlesand recreate good ones; it can
lift men to angelship.

-Mark Twain

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 Introduction

In the field of human resource management, Training and Development is the field
concerned with organizational activity aimed at bettering the performance of individuals
and groups in organizational settings. It has been known by several names, including
employee development, human resource development, and learning and development.

Training and development encompasses three main activities: Training, Education, and
Development.

Training: This activity is both focused upon, and evaluated against, the job that an individual
currently holds.
Education: This activity focuses upon the jobs that an individual may potentially hold in the
future, and is evaluated against those jobs.
Development: This activity focuses upon the activities that the organization employing the
individual, or that the individual is part of, may partake in the future, and is almost
impossible to evaluate.

The principal objective of training and development division is to ensure the availability of a
skilled and willing workforce to an organization.
Training and Development is a subsystem of an organization. It ensures that randomness is
reduced and learning or behavioural change takes place in structured format.

Training & Development offers competitive advantage to a firm by removing performance

deficiencies; making employees stay long; minimized accidents, scraps and damage; and
meeting future employee needs.

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 Objectives of Training & Development

The fundamental aim of training is to help the organization achieve its purpose by adding
value to its key resource – the people it employs. Training means investing in the people to
enable them to perform better and to empower them to make the best use of their natural
abilities. The particular objectives of training are to:

o Develop the competences of employees and improve their performance

o Help people to grow within the organization in order that, as far as possible, its
future needs for human resource can be met from within

o Reduce the learning time for employees starting in new jobs on appointment,
transfers or promotion and ensure that they become fully competent as quickly and
economically as possible.

“Tell me and I forget, teach me and I remember,

involveme and I learn”

- Benjamin Franklin

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 Training & Development as a Source of
Competitive Advantage

Companies derive competitive advantage from training and development. Training and
development programshelp remove performance deficiencies in employee.
This is particularly true when:
-The deficiency is caused by a lack of ability rather than a lack of motivation to
perform.
- The individuals involved have the aptitude and motivation need to learn to do the
job better.
-Supervisors and peers are supportive of the desired behaviours.

Employees become efficient after undergoing training

Efficient employees contribute to the growth of the organization

Growth renders stability to the workforce

 Lower turnover (trained employees tend to stay with the organization).

Training makes the employees versatile in operations. All rounders can be transferred to any
job. Flexibility is therefore ensured. Growth indicates prosperity, which is reflected in
increased profits from year to year.

Accidents, scrap and damage to machinery and equipment can be avoided or minimized
through training. Even dissatisfaction, complaints, absenteeism, and turnover can be
reduced if employees are trained well.

Future needs of employees will be met through training and development programs.
Organizations take fresh diploma holders or graduates as apprentices or management
trainees. They are absorbed after course completion. Training serves as an effective source
of recruitment. Training is an investment in HR with a promise of better returns in future.

A company's training and development pays dividends to the employee and the
organization. Though no single training program yields all the benefits, the organization
which devotes itself to training and development enhances its HR capabilities and
strengthens its competitive edge. At the same time, the employee's personal and career
goals are furthered, generally adding to his or her abilities and value to the employer.
Ultimately, the objectives of the HR department are also furthered.

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 I. Orienting Employees
Careful selection doesn’t guarantee that employees will perform effectively. Potential is one
thing, performance is another. Even high potential employees cannot do their jobs
effectively if they do not know what to do or how to do it. Thus the process of training
begins with Orientation.

Purpose

Employee orientation provides new employees with the basic background information they
need to work in your company, such as information regarding company rules and practises.

The Orientation should aim to accomplish the following:

- The new employee should feel welcome/ at ease.

- She/ he should understand the organisation in a broad sense.

- Knowledge regarding the company’s policies and procedures

-Clear about work and behaviour expectations.

Orientation Programs

Typically, orientation programs include the following:

-Information regarding company history; its goals, missions and objectives.

- Range of products and services offered by the firm, various production techniques and
work standards etc.
-Company’s Organisation: It’s structure, hierarchy, flow of authority and accountability,
roles of various departments.
-Physical location of the various departments i.e the layout of the organisation.
-Personnel Policies; information regarding programs for training and development,
recruitment, selection, compensation etc.
-Recreational/ alternative activities for employees
-Rules and Regulations; Code of Conduct and Ethics
-Safety regulations
-Standing Orders
-Counselling services

New employees should receive employee handbooks.

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Employee Handbooksstate the policies and rules of the organisation. It helps the new
employees become familiar with the organisational dos and don’ts. Its content also
represents legally binding employee commitments. Therefore, employers often include
disclaimers.

II. Training
The term training refers to the acquisition of knowledge, skills, and competencies as a result
of the teaching of vocational or practical skills and knowledge that relate to specific useful
competencies. Training is a hallmark of good management and task managers often ignore
at their peril.

The benefits of training can be summed up as:

1. Improves morale of employees

Training helps the employee to get job security and job satisfaction. The more
satisfied the employee is and the greater is his morale, the more he will contribute
to organizational success and the lesser will be employee absenteeism and turnover.

2. Less supervision

A well trained employee will be well acquainted with the job and will need less of
supervision. Thus, there will be less wastage of time and efforts.

3. Fewer accidents

Errors are likely to occur if the employees lack knowledge and skills required for
doing a particular job. The more trained an employee is, the less are the chances of
committing accidents in job and the more proficient the employee becomes.

4. Chances of promotion

Employees acquire skills and efficiency during training. They become more eligible
for promotion. They become an asset for the organization.

5. Increased productivity

Training improves efficiency and productivity of employees. Well trained employees

show both quantity and quality performance. There is less wastage of time, money
and resources if employees are properly trained.

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 Methods of Training (and development)
Training is generally imparted in two ways:

1. On the job training

On the job training methods are those which are given to the employees within the
everyday working of a concern. It is a simple and cost-effective training method. The
employees can be well trained by using such training method. The employees are
trained in actual working scenario. The motto of such training is “learning by doing.”
Instances of such on-job training methods are job-rotation, coaching, temporary
promotions, etc.

2. Off the job training

Off the job training methods are those in which training is provided away from the
actual working condition. It is generally used in case of new employees. Instances of
off the job training methods are workshops, seminars, conferences, etc. Such
method is costly and is effective if and only if large number of employees have to be
trained within a short time period. Off the job training is also called as vestibule
training, i.e. the employees are trained in a separate area( may be a hall, entrance,
reception area etc. known as a vestibule) where the actual working conditions are
duplicated.

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 On the Off the
Job Job
Vestibule
Orientation Lecture
training Special study
Job-instruction Films
training
Television
Apprentice Conference or
training discussion
Internships Case study
and Role playing
assistantships
Simulation
Job rotation Programmed
Coaching instruction
Laboratory training

Training Process
Organizational objectives

Assessment of Training needs

Establishment of Training goals

Devising training program

Implementation of training program

Evaluation of results

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I.Organizational Objectives and Strategies

The first step in the training process in an organization is the assessment of its objectives
and strategies. What business are we in right now? At what level of quality do we wish to
provide this product or service? Where do we want to be in the future? It is only after
answering these related questions that the organization must assess the strengths and
weaknesses of its human resources.

II.Needs Assessment

Needs assessment diagnosis presents problems and future challenges to be met through
training and development. Organizations spend vast sums of money (usually as a percentage
on turnover) on training and development. Before committing such huge resources,
organizations that implement training programs without conducting needs assessment may
be making errors.

Needs assessment occurs at two levels- group and individual. An individual obviously needs
training when his or her performance falls short of standards, that is, when there is
performance deficiency. Inadequacy in performance may be due to lack of skill or
knowledge or any other problem. The problem of performance deficiency caused by
absence of skills or knowledge can be remedied by training. Faulty selection, poor job
design, improving quality of supervision, or discharge will solve the problem.

Assessment of training needs must also focus on anticipated skills of an employee.

Technology changes fast and new technology demands new skills. It is necessary that the
employee be trained to acquire new skills. This will help him/her to progress in his or her
career path. Training and development is essential to prepare the employee to handle more
challenging tasks.

Individuals may also require new skills because of possible job transfers.
Although job transfers are common as organizational personnel demands vary they do not
necessarily require elaborate training efforts. Employees commonlyrequire only an
orientation to new facilities and jobs. Jobs have disappeared astechnology, foreign
competition, and the forces of supply and demand arechanging the face of our industry.

Benefits of need assessment:

 Trainers may be informed about the broader needs of the training

group and the organizations.

 The organizations are able to reduce the perception gap between the participant
and his or her boss about their needs and expectations from the training
programs.

 Trainers are able to pitch their course inputs course inputs closer to

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the specific needs of the participants.

III.Training and Development objectives

Once training needs are assessed, training and development goals must be established.
Without clearly set goals, it is not possible to design a training and development program
and, after it has been implemented there will be no way of measuring its effectiveness.
Goals must be tangible, verifiable, and measurable. This is easy where skills’ training is
involved. Behavioural standards of expected results are necessary so that the program can
be effectively designed and results can be evaluated accordingly.

IV. Designing Training and Development Program

Every training and development program must address certain vital issues:

 Who participates in the program?

 Who are the trainers?
 What methods and techniques are to be used for training?
 What should be the level of training?
 What learning principles are needed?
 Where is the program conducted?

Who are the trainers: Trainers should be selected on the basis of self-nomination,
recommendations of supervisors or by the HR department itself. Whatever is the basis, it is
advisable to have two or more target audience. For example, rank-and- file employees and
their supervisors or by the HR department itself.

Several people, including the following may conduct training and Development
Programs :

1. Immediate supervisors
2. Co-workers, as in buddy systems
3. Members of the personnel staff
4. Specialists in other parts of the company
5. Outside consultants
6. Industry associations and faculty members at universities

V. Training Methods

A multitude of methods of training is used to train employees. Training methods are

categorized into two groups: on the job training and off-the job methods, as mentioned
earlier.Let us now study each in detail.

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On the job training

Training that is planned and structured that takes place mainly at the normal workstation
of the trainee- although some instruction may be provided in a special training area on site -
and where a manager, supervisor, trainer or peer colleague spends significant time with a
trainee to teach a set of skills that have been specified in advance.

Advantages

1. Tailor-made course content with use of REAL companysituations/examples.

2. It is usually less expensive than off-job training.
3. Learning will take place using the equipment which will be actually used.
4. Trainees acclimatise more rapidly.

Disadvantages

1. Possibility of poor instruction and insufficient time.

2. Trainee may be exposed to bad work practices.
3. A large amount of spoiled work and scrap material may beproduced.
4. Valuable equipment may be damaged.
5. Training takes place under production conditions that are stressful,i.e. noisy, busy,
confusing and exposing the trainee to comments by other workers.

Orientation Training:

New employee orientation effectively integrates the new employee into your organization and
assists with retention, motivation, job satisfaction, and quickly enabling each individual to become
contributing members of the work team.

Job instruction training:

It is also called on the job training. It consists of 4 steps:

-Prepare the learner
-Demonstrate the task
-Have the worker do the task
-Follow through: Put the worker on the job, correcting and supporting as and when
necessary.

Apprenticeship:

A structured process by which people become skilled workers through a combination of

classroom instruction and on the job training. The apprentice usually studies under the
tutelage of the professional/ expert.

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Internships:

Internship is a system of on-the-job training for white-collar jobs, similar to an

apprenticeship. Interns are usually college or university students, but they can also be high
school students or post graduate adults seeking skills for a new career; they may also be as
young as middle school students in some areas. Student internships provide opportunities
for students to gain experience in their field, determine if they have an interest in a
particular career, create a network of contacts, or gain school credit. Internships provide
employers with cheap or free labor for (typically) low-level tasks. Some interns find
permanent, paid employment with the companies in which they interned. Their value to the
company may be increased by the fact that they need little to no training.

Job rotation:

It is a technique in which employees are moved between two or more jobs in a planned
manner. The objective is to expose the employees to different experiences and wider
variety of skills to enhance job satisfaction and to cross-train them.

Coaching:

It is the practice of giving sufficient direction, instruction and training to a person or a group
people, so as to achieve some goals or even in developing specific skills. Though coaching is
a system of providing training, the method of coaching differs from person to person, aim or
goals to be attained, and the areas needed. Still there are some common methods in
coaching.

 Motivational speaking
 Seminars
 Workshops
 Supervised practice

Off the job training

Advantages

1. A specialist instructor enables delivery of high quality training.

2. Wider range of facilities and equipment are available.
3. The trainee can learn the job in planned stages.
4. It is free from the pressures and distractions of company life.
5. It is easier to calculate the cost of off-job training because it ismore self-contained.
6. Cross-fertilisation of ideas between different companies.

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 Disadvantages

1. Can result in transfer of learning difficulties when a trainee changes from training
equipment to production equipment.
2. No training can be entirely off-job as some aspects of the task can only be learned by
doing them in the normal production setting, with its own customs and network of personal
relationships.
3. Can be more expensive.

* Everyone involved in the training should be informed well in advance of the training
sessions. It is equally important that the persons delivering the training – whether in-job or
off-job training - are well versed in what has to be achieved and the most suitable
techniques to adopt.

Vestibule Training:

This training method attempts to duplicate on-the-job-situation in a company classroom.It is a

classroom training that is oftenimparted with the help of the equipment and machines,
which are identicalwith those in use in the place of work.This technique enables the
traineesto concentrate on learning new skill rather than on performing on actualjob. This
type of training is efficient to train semi-skilled personnel,particularly when many
employees have to be trained for the same kind ofwork at the same time.Often used to
train – bank tellers, inspectors,machine operators, typists etc.In this, training is generally
given in theform of lectures, conferences, case studies, role-play etc.

Demonstrations & Example:

In this type of training method trainerdescribes and displays something, as & when he teaches
an employee,how to do something by actually performing the activity himself & goingon
explaining why & what he is doing. This method is very effective inteaching because it is
much easier to show a person how to do a job thantell him or give him instruction about a
particular job.This training isdone by combination with lectures, pictures, text materials etc.

Lectures:

Lecture is a verbal presentation of information by an instructorto a large audience. The

lecture is presumed to possess a considerabledepth of knowledge of the subject at hand. A
virtue of this method is thatis can be used for very large groups, and hence the cost per
trainee is low.This method is mainly used in colleges and universities, though itsapplication
is restricted in training factory employees. Limitations of thelecture method account for its
low popularity. The method violates theprinciple of learning by practice. It constitutes a
one-way communication. There is no feedback from the audience. Continued lecturing
method can be made effective it if is combined with other methods of training.

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Audio-visuals:

Audio-visuals include television slides, overheads, video- types and films. These can be used to
provide a wide range of realistic examples of job conditions and situations in the condensed
period of time. Further, the quality of the presentation can be controlled and will remain
equal for all training groups. But, audio-visuals constitute a one-way system of
communication with no scope for the audience to raise doubts for clarification. Further,
there is no flexibility of presentation from audience to audience.

Programmed Instruction (PI):

This is method where training is offer without the intervention of a trainer. Information is
provided to the trainee in blocks, either in a book form of through a teaching machine. PI
involves:

-Presenting questions, facts, or problems to the learner

- Allowing the person to respond.
- Providing feedback on the accuracy of his or her answers. If the answers are correct, the
learner proceeds to the next block. If not, he or she repeats the same.

Computer-Assisted Instruction (CAI):

This is an extension of the PI method. CAI provides for accountability as tests are taken on
the computer so that the management can monitor each trainee’s progress and needs. CAI
training program can also be modified easily to reflect technological innovations in the
equipment for which the employee is being trained. This training also tends to be more
flexible in that trainees can usually use the computer almost any time they want, thus get
training when they prefer.

Simulation:

A simulator is any kind of equipment or technique that duplicates as nearly as possible the
actual conditions encountered on the job. Simulation then, is an attempt to create a realistic
decision-making environment for the trainee. Simulations present likely problem situations
and decision alternatives to the trainee. The more widely held simulation exercises are case
study, role-playing and vestibule training.

Conference:

In this method, the participating individuals confer to discuss points of common interest to
each other. It is a basic to most participative group centered methods of developments. This

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 emphasis on small group discussion, on organized subject matter and on the active
participation of the members involved.

Case Studies:

This method is developed in 1800S At the Harvard LawSchool. The case study is based upon the
belief that managerialcompetence can best be attained through the study, contemplation
anddiscussion of concrete cases.When the trainees are given cases toanalyse, they are
asked to identify the problem and recommend tentativesolution for it.The case study is
primarily useful as a training techniquefor supervisors and is specially valuable as a
technique of developingdiscussion-making skills, and for broadening the prospective of
thetrainee.

In case study method the trainee is expected to master the facts, shouldacquainted with the
content of the case, define the objective sought indealing with the issues in the case,
identify the problem, developalternative courses of action, define the controls needed to
make the actioneffective and role play the action to test its effectiveness and findconditions
that may limit it.

Role Playing:

In role-playing trainees act out the given role as they wouldbe in stage play.Two or more
trainees are assigned parts to play beforethe nest of the class.Here role players are
informed of a situation and ofthe respective roles they have to pay.Sometimes after the
preliminaryplanning, the situation is acted out by the role players. This methodprimarily
involves employee-employer relationship – Hiring, firing,

VI. Evaluation

Formal evaluation: uses observation, interviews, and surveys to monitor training while its
going on.Summative evaluation: measures results when training is complete in five ways:

Reaction Knowledge Behavior AttitudesProductivity

Reaction – of trainees, to the training program.Their opinions and feedback.

Knowledge- Once the trainees are put back into the organisation they must be able to put
their new skills to use effectively.

Behaviour & Attitudes- The employees behaviour at the work place, job performance,
efficiency level.

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Productivity- Measures the employees performance and productivity in terms of the job.
This is an effective measure to determine the effectiveness of training programs.

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 Management Development
Management Development is described as the process from which potential managers learn
and improve their skills not only to benefit themselves but also their employing
organizations. The effectiveness of management is recognised as one of the determinants of
organisational success. Therefore, investment in management development can have a
direct economic benefit to the organization. Executives are exposed to learning
opportunities whilst doing their jobs, if this informal learning is used as a formal process
then it is regarded as management development. Managing includes activities of planning,
organizing, leading and coordinating resources. A critical skill for anyone is the ability to
manage their own learning. The highly motivated, self-directed reader can gain a great deal
of learning and other results from using the guidelines and materials in this library topic.

Methods for management development:

On the Job

Coaching/Understudy: The trainee works directly with a senior manager who is responsible
for the trainees coaching. The trainee directly gets a chance to learn the job and receive
constant feedback and guidance.

Job Rotation: Management trainees are moved from department to department to broaden
their understanding of the various parts of the business and to test their abilities. It gives
them a chance to develop wholly and determine their strengths and preferences and work
on their weaknesses.

Multiple Management:An artificial board of directors is created which allows the

management trainees to work on their skills and enable them to learn how to deal with
issues which managers may be expected to resolve.

Committee Management: Involve executives in various projects and assignments within the
organisation to aid their decision making and problem solving skills and prepare them for
managerial tasks.

Off the Job

Sensitivity Training:Is about making people understand about themselves and others reasonably,
which is done by developing in them social sensitivity and behavioural flexibility. It requires trainees
to unlearn old values and learn new ones. It aids in development of new thought and ideas. In this
method, the trainer initiates the discussion in the unstructured group but does not assume a
leadership role, instead assumes a rather passive role throughout. This method of training is also
known as ‘T- group’ training.

Case Studies and Management Games are put to use under this training.

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Management Games: Managers compete by providing input and making decisions
regarding realistic but simulated situations. They help trainees develop problem solving
skills, leadership and team work.

Role Playing: Trainees are required to assume varied roles and act out parts in a realistic
management situation. The aim is to develop trainees’ skills in the areas of leadership and
delegating.

Special Courses/ Seminars: These are also organised to widen the trainees’ knowledge pool
and increase their proficiencies in various management related fields. Special courses such
as Executive MBA’s can be undertaken by the trainees to gain more in depth knowledge and
develop strategic, conceptual and leadership skills that are essential for all managers.

Succession Planning

It is a process through which senior level openings are planned for and eventually filled.
Succession planning helps you develop multiple succession scenarios for any position within
your organization. Easily develop succession plans that develop talent for future roles and
map development paths years in advance before the talent gap occurs. Also measure
employee retention risks and design development plans to challenge and promote your
talent. The various programs undertaken for management development help identify and
screen potential managers and determine the suitability of each at various posts in the
organisation. Thus management development and succession planning can be viewed as
two inter related concepts. Succession planning increases the availability of experienced and
capable employees that are prepared to assume these roles as they become available.

Clear objectives are critical to establishing effective succession planning.

 Identify those with the potential to assume greater responsibility in the organization.
 Provide critical development experiences to those that can move into key roles.
(Management Development Programs)
 Engage the leadership in supporting the development of high-potential leaders.
 Build a database that can be used to make better staffing decisions for key jobs.
Organisational Charts- Charts that not only reflect the current hierarchy of your
organization (or specific business units), but also allow for modelling potential changes
within the hierarchy. They help to understand the impact of personnel changes.

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Primary and Secondary data

A common classification is based upon who collected the data.

Primary data: Data collected by the investigator himself/ herself for a specific purpose.
Examples: Data collected by a student for his/her thesis or research project.
(In movies) The hero is directly told by the heroine that he is her “ideal man”.

Secondary data: Data collected by someone else for some other purpose (but being utilized
by the investigator for another purpose).
Examples: Census data being used to analyze the impact of education on career choice and
earning.
(In movies) The hero reads a fictional account of the heroine’s “ideal man” (written for a
course in English composition) that seems to describe him accurately. He seeks confirmation
from his friends, concluding that he is her “ideal man”. (He never asks her directly, but
assumes the “facts” are correct).
Some Advantages of using Primary data:
1. The investigator collects data specific to the problem under study.
2. There is no doubt about the quality of the data collected (for the investigator).
3. If required, it may be possible to obtain additional data during the study period.
Some Disadvantages of using Primary data (for reluctant/ uninterested investigators):
1. The investigator has to contend with all the hassles of data collection-
 deciding why, what, how, when to collect
 getting the data collected (personally or through others)
 getting funding and dealing with funding agencies
 ethical considerations (consent, permissions, etc.)
2. Ensuring the data collected is of a high standard-
 all desired data is obtained accurately, and in the format it is required in
 there is no fake/ cooked up data
 unnecessary/ useless data has not been included
3. Cost of obtaining the data is often the major expense in studies
Some Advantages of using Secondary data:
1. The data’s already there- no hassles of data collection
2. It is less expensive
3. The investigator is not personally responsible for the quality of data (“I didn’t do it”)
Some disadvantages of using Secondary data:

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1. The investigator cannot decide what is collected (if specific data about something is
required, for instance).
2. One can only hope that the data is of good quality
3. Obtaining additional data (or even clarification) about something is not possible (most
often)

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 OIL & NATURAL GAS CORPORATION (ONGC)

Profile
Global Ranking
 Only Indian energy major in Fortune's Most Admired List
2012 under 'Mining, Crude Oil Production' category.
 It is ranked 171th in Forbes Global 2000 list of the World's
biggest companies for 2012 based on Sales (US$ 26.3
billion), Profits (US$ 5 billion), Assets (US$ 51 billion) and
Market Capitalization (US$ 46.6 billion).
 ONGC has been ranked 39th among the world's 105 largest
listed companies in 'transparency in corporate reporting' by
Transparency International making it the most transparent company in India.
ONGC is India's Most Valuable Public Sector Enterprise
 The Company won Petrofed Oil & Gas Industry Awards 2011 in three categories -
"Environmental Sustainability: Company of the Year", "Human Resource Management:
Company of the Year" and "Innovator of the Year: Team (Won by IOGPT)".
 It was bestowed with "Most Attractive Employer" Award in Randstad Awards 2011
 Won "Golden Peacock Award for Sustainability" for the year 2011
 Awarded with the Gold Trophy of SCOPE Meritorious Award for "Environmental Excellence
& Sustainable Development" for the Year 2010-11 by former President Smt. Pratibha
Devisingh Patil
 Anointed "Outstanding PSU of the Year" at AIMA Managing India Awards 2012
 Awarded the Best overall Performance PCRA Award in the Upstream Sector (Oil & Gas) for
3rd consecutive year
 Awarded the "ICSI National Award for Excellence in Corporate Governance for 2011"-
Certificate of Recognition
 Awarded NIPM National Award for Best HR Practices – 2011
 Adjudged amongst 20 Top Companies for Leaders 2011 in
Aon Hewitt Awards
 "Best Enterprise Award" for the organization in the
Maharatna and Navaratna Category at the 22nd National
Meet of Women in Public Sector (WIPS)
 It was bestowed with Safety Innovation Award 2011 in the Oil & Gas sector for innovative
safety measures

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 OVL Honoured with SCOPE Excellence Award for Excellence and Outstanding Contribution
to the Public Sector Management
ONGC Represents India's Energy Security through its Pioneering Efforts
ONGC is the only fully–integrated petroleum company in India, operating along the entire
hydrocarbon value chain. It has single-handedly scripted India's hydrocarbon saga. Some key
pointers:
 ONGC has discovered 6 out of the 7 producing basins in India:
 It has 7.59 billion tonnes of In-place hydrocarbon reserves. It has to its credit more than
320 discoveries of oil and gas with Ultimate Reserves of 2.69 Billion Metric tonnes (BMT) of
Oil Plus Oil Equivalent Gas (O+OEG) from domestic acreages.
 It has cumulatively produced 851 Million Metric Tonnes
(MMT) of crude and 532 Billion Cubic Meters (BCM) of
Natural Gas, from 111 fields.
 ONGC has won 121 out of a total 235 Blocks (more than
50%) in the 8 rounds of bidding, under the New Exploration
Licensing Policy (NELP) of the Indian Government.
 ONGC's wholly-owned subsidiary ONGC Videsh Ltd. (OVL) is
the biggest Indian multinational, with 30 Oil & Gas projects
(9 of them producing) in 15 countries.
 Produces over 1.24 million barrels of oil equivalent per day, contributing over 64% of
India's domestic production. Of this, over 75% of crude oil produced is Light & Sweet.
 The Company holds the largest share of hydrocarbon acreages in India (51% in PEL Areas &
67% in ML Areas).
 ONGC possesses about one tenth of the total Indian refining capacity.
 ONGC has a well-integrated Hydrocarbon Value Chain structure with interests in LNG and
product transportation business as well.
 A unique organization in world to have all operative offshore and onshore installations
(403) accredited with globally recognized certifications.

Competitive Strength
 All crudes are sweet and most (76%) are light, with sulphur
percentage ranging from 0.02-0.10, API gravity range 26°-
46° and hence attract a premium in the market.
 Strong intellectual property base, information, knowledge,
skills and experience
 Maximum number of Exploration Licenses, including
competitive NELP rounds. ONGC has bagged 121 of the 235
Blocks (more than 50%) awarded in the 8 rounds of NELP.
 ONGC owns and operates more than 26,600 kilometers of pipelines in India, including sub-
sea pipelines. No other company in India operates even 50 per cent of this route length.

Perspective Plan 2030 (PP2030)

PP2030 charts the roadmap for ONGC's growth over the next
two decades. It aims to double ONGC's production over the

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 plan period with 4-5 per cent growth against the present growth rate of 2 percent. In
physical terms the aspirations under Perspective Plan 2030 aims for -
 Production of 130 mmtoe of oil and oil equivalent gas (O + OEG) per year and accretion of
over 1,300 mmtoe of proven reserves.
 Grow ONGC Videsh Limited (OVL) six fold to 60 mmtoe of international O+OEG production
per year by 2030.
 More than 20 mmtoe of O+OEG production per year in India coming from new
unconventional sources such as shale gas, CBM, deepwater and HPHT (High Pressure &
High Temperature) reservoirs.
 Over 6.5 GW power generation from nuclear, solar and wind and 9 MTPA of LNG.
 Scaling up refining capacity to over 20 MMTPA and targeted investments to capture
downstream integration in petrochemicals.
Sourcing Equity Oil Abroad
ONGC Videsh Limited (OVL) is operating in 15 countries with 30 projects with cumulative
investment worth over USD 15 billion, to source equity oil & gas for energy security of the
country. Over the years OVL has emerged as the biggest Indian Multinational.
 The company now has participation in 30 E&P projects in 15 countries namely Vietnam (1
project), Russia (2 projects), Sudan (2 projects), South Sudan(2 projects), Iraq (1 project),
Libya (1 project), Myanmar (2 projects), Syria (2 projects), Cuba (2 projects), Brazil (4
projects), Nigeria (1 project), Colombia (6 projects), Venezuela (2 projects) and Kazakhstan
(1 project). Out of 30 projects, ONGC Videsh is Operator in 9 projects and Joint Operator in
7 projects.
 OVL continued to maintain its robust growth with
production of 6.214 MMT of Crude Oil and 2.539 BCM of
Gas during 2011-12. Its proved reserves (1P) as on 1st April
2012 stood at 193.381 MTOE, which next to ONGC, is the
second largest holding of proved oil and gas reserves by any
Indian Company. OVL's share of total reserves (3P) of oil
and oil equivalent gas as on 1st April 2012 was 425.941
MTOE. As on 31st March, 2012, the Reserves-to-Production
(R/P) Ratio considering proved reserves was 22.09.
 Consolidated gross revenue of OVL increased from Rs.186.711 billion in 2010-11 to
Rs.226.314 billion in 2011-12, up 21.2% and consolidated net profit from Rs.26.91 billion in
2010-11 to Rs.27.21 billion in 2011-12.
 OVL was accorded with Mini-Ratna Category-I status by Government of India during July
2011. Recently during September 2012, OVL has been upgraded from a Schedule "B" public
enterprise to Schedule "A".
 OVL signed agreements with KazMunaiGas (KMG), the national oil company of Kazakhstan
for acquisition of 25% participative interest in Satpayev exploration block in Kazakhstan.
The agreement was signed on 16th April 2011 with KazMunaiGas in the presence of Dr.
Manmohan Singh, Hon'ble Prime Minister of India and H.E. Nursultan Nazarbayev,
President of Kazakhstan.
 OVL along with Petronas and Nilepet has signed a Transition Agreement on 13th January
2012 with the Government of RSS for the continuation of its right for petroleum
exploration and exploitation in Block 5A. The partners of Block 5A have incorporated a new

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 operating company SUDD Petroleum Operating Co. Ltd. (SPOC) registered in Mauritius on
7th March 2012. The block will now be jointly operated by all partners.
 OVL signed definitive agreements during September 2012 for the acquisition of Hess
Corporation's 2.7213% participating interest in the Azeri, Chirag and the Deep Water
Portion of Guneshli Fields in the Azerbaijan sector of the Caspian Sea ('ACG') and 2.36%
interest in the Baku-Tbilisi-Ceyhan Pipeline ('BTC'), for US$ 1 Billion. ACG, which is located
in the south Caspian Sea about 95 km off the coast of Azerbaijan, is the largest oil and gas
field complex in Azerbaijan and is one of the largest producing oil fields in the world with
average daily production from the field around 700,000 bopd of crude oil.
 OVL's strategic objective of sourcing 20 million tonnes of equity oil abroad per year is likely
to be fulfilled by 2018. As per 'Perspective Plan 2030', OVL is eyeing a six fold increase in
production by 2030; from about 9 MTOE in current fiscal to 60 MTOE per annum by the
year 2030.
Frontiers of Technology
 State-of-the-art seismic data acquisition, processing and
interpretation facilities
 Uses one of the Top Ten Virtual Reality Interpretation
facilities in the world
 Alliances with Transocean, Schlumberger, Halliburton,
Baker Hughes, IPR, Petrobras, Norsk, ENI and Shell
 One of the biggest ERP implementations in the Asia
Best In Class Infrastructure And Facilities
 The Company operates with 27 Seismic crews, manages 240 onshore production
installations, 202 offshore installations, 77 drilling (plus 44 hired) and 58 work-over rigs
(plus 30 hired), owns and operates more than 26,598 kilometers of pipeline in India,
including 4,500 kilometers of sub-sea pipelines.
 ONGC has adopted Best-in-class business practices for modernization, expansion and
integration of all Infocom systems.
Financials (2011-12)
ONGC group's turnover during 2011-12 has been Rs. 150,185 Crore with net profit of Rs.
28,144 Crore. ONGC paid the highest-ever dividend of Rs. 8,342 Crore. The Net Worth of
ONGC Group of companies is Rs. 135,266 Crore.
 During 2011-12, the turnover of ONGC (on standalone basis) has been Rs. 76,887 Crore
with net profit of Rs.25,123 Crore; the highest-ever despite sharing under-recovery of
Rs.44,466 Crore to the Oil Marketing Companies (OMCs) as per the instructions of the
Government of India. Net worth of ONGC (on standalone basis) has been Rs.1,11,784
Crore.
 OVL's consolidated gross revenue increased by 21% from Rs. 18,671 Crore during 2010-11
to Rs.22,637 Crore during 2011-12 and consolidated net profit increased by 1% from Rs.
2,621 Crore during 2010-11 to Rs. 2,721 Crore during 2011-12.
 The turnover of MRPL has been Rs.52,207 Crore, up 19% from Rs.43,800 Crore and net
profit has been Rs.909 Crore during 2011-12.
The Road Ahead
ONGC looks forward to become an integrated energy provider, with:

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 New Discoveries and fast track development
 Equity Oil from Abroad
 Downstream Value Additions & Forward Integration
 Leveraging state-of-the art technology and global best practices
 New Sources of Energy
 Production from small and marginal fields
 ONGC has taken structured initiatives to tap unconventional energy sources through
unconventional gases like Coal Bed Methane (CBM), Underground Coal Gasification (UCG),
Shale Gas and Gas Hydrates, or unconventional energy sources like wind, solar etc.
 "ONGC Energy Centre Trust", a dedicated centre created by ONGC for holistic research in
non-conventional energy sources, has taken up three projects viz., Thermo-chemical
reactor for Hydrogen, Geo-bio Reactors and Fuel Cells. ONGC has already commissioned a
50 MW Wind Farm in Gujarat and plan is afoot to set up another 100 MW Wind Farm in
Rajasthan. ONGC has also set up 3 Solar Thermal Engines at Solar Energy Centre, Ministry
of New and Renewable Energy (MNRE) campus at Gurgaon.
Value-chain integration
 ONGC's purchase of majority stake in equity in the ailing Mangalore Refinery &
Petrochemicals Limited (MRPL), a stand-alone refinery of 9.69 MMT capacity in March
2003 is a standout testimony of ONGC's integrated business model. Besides adding that
desired comfort to this Company in mitigating higher risk of E&P operation, this deal also
set an example in the Indian business history where a PSU has taken over a joint stock
company and turned it around in a record time of one year.
 Moving ahead, ONGC has taken structured initiatives towards value-multiplier integration
projects like – Refinery, LNG, Petrochemicals, Power, SEZ, etc., to have presence in the
entire hydrocarbon value-chain.
MOU ratings
MOU performance rating of ONGC during the last four years is as given below:
Year Score Grading/Rating
2007-08 1.81 Very good
2008-09 1.70 Very good
2009-10 1.53 Very good
2010-11 1.79 Very good
Corporate Social Responsibility
In recognition of its role as a 'responsible leader', ONGC continues its quest to make
positive, tangible difference in the lives of the vulnerable and disadvantaged. With a
business paradigm that is based on an interconnected vision - of people's welfare, societal
growth and environmental conservation, ONGC in 2011-12 continued to cater to the
developmental needs across the following focus areas:
 Education including vocational courses;
 Health Care;
 Entrepreneurship (self-help & livelihood generation) schemes;
 Infrastructure support roads, bridges, Schools, hospitals in around our operational areas

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 Environment protection, ecological conservation, promotion;
 Protection of heritage sites, UNESCO heritage monuments etc.;
 Promotion of artisans, craftsman, musicians, artists etc. for preservation of heritage, art &
culture;
 Women's empowerment, girl child development, gender sensitive projects;
 Water management including ground water recharge;
 Initiatives for physically and mentally challenged;
 Sponsorship of seminars, conferences, workshops etc. and
 Promoting sports/sports persons; supporting agencies promoting sports / sports persons.
Corporate Governance
ONGC has taken structured initiatives towards Corporate Governance and its practices
which evolve around multi-layered checks and balances to ensure transparency. Apart from
the mandatory measures required to be implemented as a part of Corporate Governance,
ONGC has gone the extra mile in this regard and has implemented the Whistle Blower
Policy, Annual Report on working of the Audit & Ethics Committee, MCA Voluntary
Guidelines on Corporate Governance, Enterprise-wide Risk Management (ERM) framework.
Health, Safety & Environment
ONGC has implemented globally recognized QHSE management systems conforming to
requirements of ISO 9001, OHSAS 18001 and ISO 14001 at ONGC facilities and certified by
reputed certification agencies at all its operational units. Corporate guidelines on incident
reporting, investigation and monitoring of recommendations has been developed and
implemented for maintaining uniformity throughout the organization in line with
international practice.
During 2011-12, 20% reduction in incidents achieved, 131 environmental clearance
(EC/TOR) obtained, 4 Lakh Ringal Bamboo Planted in Upper Himalayas, 25000 MT of oily
waste treated using Bioremediation, 412 installations certified with QHSE, 240 operational
units audited for HSE Performance, 130 employees trained on HUET, 14 HSE awareness
programs completed.
Corporate Disaster Management Plan and guidelines have been developed for uniform
disaster management all across ONGC. ONGC has also developed Occupational Health
physical fitness criteria for employees deployed for offshore operations. Occupational
Health module has now been populated on SAP system.
Human Resources
ONGC has vast pool of skilled and talented professionals – the most valuable asset for the
company. 32,909 ONGCians (as on 31st March, 2012) dedicate themselves for the excellent
performance of the company. ONGC extends several welfare benefits to the employees and
their families by way of comprehensive medical care, education, housing and social security

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 Training & Development

ONGC Academy
ONGC Academy imparts training in all dimensions - Technical as well as Managerial,
relevant to upstream Petroleum Industry and is committed to excellence in the cause
of Human Resource Development. Skill up-gradation is a vital component for Human
Resource Development. It is a continuous process with the training, as interface in
assimilation of new knowledge and upgrading skill sets. In pursuance to the mandate of
equipping the executives with latest knowledge in the specialized fields of upstream oil
and gas sector, attempts were made to organize training programs with the best
faculties from India and abroad.
The Academy which received ISO 9001-2000 certification in 1999 and upgraded to ISO
9001-2008 version in 2010, today conducts training programmes for thousands of
executives from ONGC. The complete spectrum of training programmes spans over a
wide ranging subjects like geology, geophysics, geochemistry, well logging, reservoir,
drilling, production, engineering, ICT, finance, industrial relations, HR and
management. In the ever changing requirements of the oil industry, gaining of
knowledge and adaptation to the latest state of art technology becomes essential, for
which ONGC Academy is a complete training provider.
Spectrum of training courses has been designed to cut across different hierarchical
levels and disciplines. The Induction Training Programme is for newly appointed
graduate trainees to familiarise them with various facets of operations across the
petroleum industry, and to inculcate the company culture through multidisciplinary
theoretical, on-the-job training, and specialized training sessions. ONGC Academy
believes in the holistic development of the young minds and therefore Yoga and sports
form an integral part of Induction training curriculum.
The Refresher courses are for experienced junior middle and senior level executives,
while the specialized courses are for domain experts to keep them abreast of the latest
advancements in cutting edge technologies. The trainings are designed to cater to
multiple disciplines, through different programme, such as:
 Induction Training Programs
 Functional Training Programs
 Management Development Programs
 International Accreditation programs
The Academy has meticulously created extensive training infrastructure backed by an
environment that is conducive to learning. The faculty for training is selected from
ONGC experts, domain experts, premier Indian Academic institutions, service
companies and training agencies from within and outside the country.
Every year the training calendar and curricula are updated and revised based on
feedback received from the trainees, and inputs received from the work-centres after
conducting extensive training need identification (TNI) exercise. The pedagogy at the
Academy includes lectures, case studies, seminars, group discussions, e-learning,
business games, role plays, simulation exercises, structured and unstructured group
work and field visits. The emphasis is on involving each participant in making the
learning process interactive.
Academy collaborates with reputed management schools for conducting management
and leadership programs in India and abroad. Academy offers International

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 Accreditation programs from international agencies such as OPITO of UK, PMI of USA
and IPMA of Switzerland for conducting a number of certified courses in key areas like
Project Management, Emergency Response Management and HR Management. The
Academy has leveraged its strengths to organize customized training programs for
ONGC’s overseas oil equity partners including Sudan, Iraq, Iran, Venezuela, Syria and
Bangladesh.
The Academy has been working towards strengthening Industry- Academia interface.
Academy coordinates Summer/ Winter Trainings and industrial visits of students from
academic institutions and has played a key role in designing curriculum for Petroleum
Engineering courses at reputed educational institutes. Academy has also conducted
programs for the knowledge enhancement of University Professors.
ONGC accords a high priority to industry-academia relationship and undertakes such
activities to strengthen this relationship. Exploration and Production is a knowledge
and technology intensive industry. The success is linked to continuous upgradation of
knowledge and skill sets. ONGC since inception has been collaborating with academia
for knowledge and training.
ONGC created Chairs in reputed academic institutions with an objective to promote
knowledge and excellence in disciplines related to ONGC’s activity areas by way of
providing financial assistance to the leading institutes. Academy has played a pivotal
role in setting up eleven ONGC Chairs in several Indian universities and institutes for
the benefit of society and is monitoring the activities/ developments in respect to these
chairs. ONGC Academy has also provided financial support in setting up laboratories
and other infrastructure facilities at various educational institutes throughout the
country. ONGC through Academy has instituted scholarships and gold medals to
meritorious students from colleges/ universities across the country.
The ONGC Academy has been the recipient of several recognitions and national awards
for the excellent services it has rendered in the energy sector. The recent being, “Asia’s
Best Employer Brand Award-2010 for Excellence in training”, presented by World HRD
congress, in collaboration with Employer Branding Institute and Star of Industry group.
Emulating excellence, fostering expertise, creating petroleum professionals for the
future, ONGC Academy has been sharing Knowledge and nurturing the oilmen of the
nation, as Academy is of the firm belief that knowledge multiplies when shared.

ONGC Academy is located in the lush green environment of the Himalayas at Dehra Dun.
Known previously as Institute of Management Development (IMD), it was formally re-
christened as ONGC Academy on November 2, 2003 by C&MD Mr. Subir Raha. It is
ONGC's premier nodal agency for training and developing human resources. The Institute
emerged out of SWOT analysis carried out by the organisation in 1982.

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 Designing parameters for measuring performance of human resources, succession
planning, mapping of individual relations scenario, work climate and work culture
analysis and managing change are some of the areas of research related to
management development. To serve this purpose, the Academy is committed to
excellence in the cause of HRD and of the availability of appropriate systems and
procedures with a view to ensure managerial effectiveness, quality and productivity in
E&P Sector. ONGC Academy is also responsible for coordinating training/seminars for
ONGC executives abroad.

Faculty, Pedagogy & Curriculum

FACULTY

ONGC Academy has an experienced core and visiting external faculty from in-house,
industry and top national institutions who possess specialization, experience,
institutional affiliation and temperament.

PEDAGOGY

The Pedagogy is interactive and participative and the methods include lectures, cases,
seminars, group discussions, business games, role plays, simulation exercises,
structured and unstructured group work and field visits. Functional areas are
discussed in the context of opportunities for internationalizing business and
enhancing the organizations responsiveness to the rapidly changing technology and
market forces in the emerging global scenario. Eminent academicians, policy makers
and senior executives deliver extensive lectures to the faculty and the participants.

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 CURRICULUM

Training programmes are as per the specific requirements catering to the fresh
graduate trainees, middle and senior level corporate executives. Refresher, awareness
and exposure courses in the field of geo-science, production, and reservoir
engineering, emerging technologies and managerial aspects for the national
international oil companies are conducted regularly. Programme on joint ventures,
negotiations, price-risk analysis, cost reduction, advanced petroleum management
etc. are added features of the training curriculum.

There are different types of trainings provided by company

Mid-career Trainings

 Technical development Trainings

These technical trainings are for the executive working in different technical domains of
company. This training is allotted to executives depending upon their role in the
different departments. These trainings are delivered by either domain experts of
company or international experts.

Duration: 1 week or more

Place: Anywhere in India/abroad

 Management Development Trainings

This training is for all the officers to enhance the skills of management. These trainings
are designed for different levels of officers as per their requirement and scope of job.

Duration: 2 weeks or more

Place: Anywhere in India/abroad (Mostly at prime B-schools like ISB/IIMs)

 Safety Trainings

This training is for all the executives to enhance safety practices while working in
offshore/fields/office environment. In this category trainings like Fire fighting, Helicopter
under water egress (HUET), Sea survival training etc. have been given to required
employees.

Duration: 1 week

Place: Goa and Mumbai

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 Induction training for officers:-

When a Graduate trainee joins company, He/she has to undergo induction training at
ONGC academy to aware about company, industry & profession. This training consists of
following module-

 General Theoretical training (GTT)

 Out Bound Training
 Skill Development Training
 Multi Discipline Field Familiarization Training (MDFF)
 Specialization Training (ST)
 On Job Training (OJT)
 Final Evaluation (FE)

Now I will explain each of them

 General Theoretical training (GTT)

In GTT all graduate trainees are taught about each and every discipline in ONGC. All
students are from different branches but there is a common programme under which all
disciplines are taught to each and every students like geophysics, geology, Human
resource, Finance, Programming, Electrical, Civil, production, mechanical etc.

 Out Bound Training (OBT)

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