Final Project LDM
Final Project LDM
TEAM MEMBERS:
Niaz Badshah
1. Introduction
1.1. Overview of OGDCL
1.2. History and Establishment
1.3. Operations and Key Contributions
1.4. Vision and Mission of OGDCL
2. OGDCL Overview
2.1. Management Strategy and Objectives
2.2. E&P Focus and Shareholder Value Creation
3. Politics and Power Prevailing in OGDCL
3.1. Influence of Political and Power Dynamics
3.2. Employee Perspectives on Organizational Culture
3.3. Challenges Faced by HR and Top Management
3.4. Insights from Key Employees on Power and Politics
3.5. Impact on Decision Making, Transfers, and Promotions
4. Shutdown of Drilling Sites: COVID-19 Impact
4.1. Effects of the Pandemic on Operations
4.2. Challenges Faced by Employees and Management
4.3. Employee Morale, Job Insecurity, and Burnout
5. Main Issues Identified at OGDCL
5.1. Political and Power Influence
5.2. Unjust Transfers and Political Appointments
5.3. Labor Union Influence
5.4. Promotion and Reward System Issues
5.5. Lack of Effective Teamwork
5.6. Employee Morale and Motivation
5.7. Fear of Burnout and Job Insecurity
6. Recommendations to Tackle the Issues
6.1. Foster a Merit-Based Culture
6.1.1. Transparent Promotion Policies
6.1.2. Clear Communication in Decision Making
6.2. Reduce Political Influence in Decision Making
6.2.1. Strengthening Leadership Independence
6.2.2. Internal Governance Reforms
6.3. Revise Labor Union Dynamics
6.3.1. Constructive Dialogue and Union Accountability
6.4. Improve Employee Morale
6.4.1. Recognition and Career Development Programs
6.5. Enhance Teamwork and Collaboration
6.5.1. Team-Based Incentives and Cross-Functional Projects
6.6. Employee Engagement and Well-Being Programs
6.6.1. Mental Health Support and Exit Surveys
6.7. Strengthen Internal Communication
6.7.1. Transparency and Regular Check-ins
7. Conclusion
INTRODUCTION:
1.1: Oil and Gas Development Company Limited, commonly known as OGDCL is a Pakistani oil and
gas company. It has a primary listing on the Pakistan Stock Exchange and secondary listing on the
London Stock Exchange. Established in 1961 by the Government of Pakistan, it was turned into a public
listed company on 23 October 1997.
1.2: Prior to 23 October 1997, OGDCL was a statutory Corporation, and was known as OGDC (Oil &
Gas Development Corporation). It was incorporated as a Public Limited Company from 23 October 1997
and is now known as OGDCL (Oil & Gas Development Company Ltd). Today it is involved in exploring,
drilling, refining, and selling oil and gas in Pakistan. It is located on Jinnah Avenue, Blue Area,
Islamabad, with the Government of Pakistan, holding a 74% stake in the company. Rest of the stakes are
held by private investors.
1.3: Operations:
Process and Plants Department works at the Company's front end delivering uninterrupted supply of
petroleum products to its clients with right specifications as stipulated with buyers. Industry's best
operation and maintenance practices along with high standards of HSEQ are utilized at processing
facilities of the department to deliver the end products to its clients. The department also undertakes plant
relocation, refurbishment and capacity enhancement projects in line with the changing production
scenarios to deliver for the Company and its stakeholders. Annual Turn Around (ATA) of plants are also
carried out by the department to ensure year round peak performance of its processing facilities, and
establish reliability of processing units. The department operates and maintains gas condensate processing
plants at all major producing fields of OGDCL.
Fields for extraction of Oil and gas and Plants for processing:
Having 50 Operated Oil & Gas fields, geographically distributed all across the country; OGDCL has 18
Oil and Gas processing plants. These include Dehydration, LPG, Sulphur Recovery, H2S Removal, Gas
Sweetening, Condensate Stabilization, Refining and Compression plants. OGDCL during July 2021 -
December 2021 contributed around 48%, 29% and 38% towards Country's total oil, natural gas and LPG
production respectively. Average daily net saleable crude oil, gas and LPG production during the year
was 36,788 barrels, 827 MMcf and 814 Tons respectively.
It is the largest company in Pakistan in terms of market capitalization and has repeatedly ranked among
the Forbes Global 2000.
OGDCL’s Mission:
“To become the leading provider of oil and gas to the country by increasing exploration and production
both domestically and internationally, utilizing all options including strategic alliances.” To continuously
realign ourselves to meet the expectations of our stakeholders through best management practices, the use
of latest technology, and innovation for sustainable growth, while being socially responsible.
2: OGDCL OVERVIEW:
2.1:OGDCL’s under a forward-looking management foresees the organization as not only the leading
E&P( Exploration and production) Company of the country, but also as a company known for its people,
partnerships and performance in the region.
2.1:The Company continued with its strategies of accelerating oil and gas exploration, adding to its
reserves, early development of newly discovered fields and strengthening of its oil and gas production
base in order to enhance indigenous production of the country and create value for its shareholders.
We visited OGDCL, with the reference of Mr. Jamal Nasir, who is currently serving as the Chief Human
Resource executive. We conducted the interview from a number of employees from different levels.
Interviewees were Mr. Ejaz Muhammad Khan, Mr. Rasheed Shinwari, Mr. Jamal Nasir, Mr. Zubair
Ahmed Awan and Madam Alishba. Mr. Ejaz Muhammad khan is currently retired and previously he was
Serving as GM HR and also the Director OGDCL. Mr. Jamal Nasir had been working in the OGDCL for
the past 21 years. Mr. Zubair was having 11 years of experience in the HRM cadre and had previously
been performing his duties in the textile industry. Madam Alishba was working in the OGDCL for the
past 6 years.
We prepared the questions in order to know the politics and Power prevailing within the premises of
OGDCL. Here are their responses we got from them.
3.1: As OGDCL is a government institution so unfortunately the culture of power and politics is very
much evident from the conversation we had with the employees of OGDCL. Majority of the responses we
got were that the culture of politics and power negatively impacts the overall performance, motivation
and morale of the employees.
3.2: The response we got from Mr. Jamal Nasir was that as CHRO, we are trying very much hard in order
to contain politics and power influence with in the organization. Unfortunately, OGDCL is facing a
serious concern as both from within and outside there always exists a pressure to work according to the
wish and will of the internal as well as external stakeholders.
3.3: It seems like we are relatively free and we are only impacted by the rules and regulations as
prescribed by the government but we are also impacted by other people who as such don’t have the
professional authority but due to a strong influence, they are able to impact the normal working of the
company. The challenges we are facing are pressure regarding the employment, unjust transfers and also
the role of the labor unions present in the organization. It is a very evident issue that sometimes a decision
which is taken from the top management and it is in the favor of the organization is taken back due to the
pressure created by the unions. We are autonomous in our decision making it seems but in fact we are
very much concerned about how the external and internal stakeholders will react to the decisions and we
also have to be prepared for the alternative solutions which could be made in order to contain the overall
smooth working of the organization.
3.4: We also had the opportunity to have a conversation with Mr. Ejaz Muhammad Khan. He was of the
view that it is impossible for OGDCL to eradicate the political and power influence prevailing. He had
been the director of OGDCL and he says that big guns are already in the Board of Directors and the
decision is made after a consensus is made. But most of the times each and every director of OGDCL is
concerned with his position and how he can impact the decision and be the most important person with in
the context of OGDCL. An unfortunate culture he was referring to is that appointments are advertised but
most of the times the appointments are made with a strong reference and merit is compromised. Mostly
the external stakeholders are very much influencing the working of OGDCL and due to this fact an
impression is being created among the employees that even if you are working hard but you don’t have
any kind of reference, you will not be promoted even if your time span is completed.
There are different positions for which it is necessary to have the voting. Mr. Rasheed Shinwari pointed
out that even the employees who are not in the officer position even they can vote as well. When a person
is promoted to that particular position, he is very much powerful and he has the potential to influence the
decision making of the company. The union system prevailing in OGDCL is very much strong and every
employee tries as much as he can in order to be at such a position at which he can control or rather create
a pressure in order to manipulate the decision making. The elections are also very important for top
leadership as they will not let a person who they think can be opposing their power and authority so in
order to mitigate this, backdoor rigging takes place and a full political scenario is created by which the
person who is relatively weaker and can be easily manipulated is appointed as the president. Those who
have power completely exploit their authority and by power I mean both internal designation and a
support from the external stakeholders.
3.5: We also interacted with some of the employees and the same questions were asked from them but
mainly the focus was shifted towards what potential impacts the power and political dynamics within
OGDCL can have on the working environment and overall performance of the employees. The employees
were of the view that the overall working environment is good and very conducive. When we work hard
and complete the tasks in the given time constraint we are even given the recognition in the form of
increments and non-monetary rewards. The seniors are supportive and they are always helpful in every
task we do. One of the main points highlighted by the employees was that the team work is badly affected
by the power and politics in OGDCL. Each and every employee is concerned that he should be doing all
the working alone because it will have a positive impact on the manager and later on the employee can be
benefited. Most of the times the teams are present but they are not that much contributing towards the
effectiveness of the team all they are concerned is to get credit and for that they are even sometimes
hiding some important points so that they can present so that their credibility is ensure and at the same
time leaving the team goals behind another issue pointed out by the employees was regarding the
promotion criteria. The current promotion criteria is that only those employees will be eligible for the
promotion who have spent at least 5 years and are constantly high performers. Now, this is the clause
which has been added in the HR manual but as per employees the reality is completely different as even if
you have spent 5 years and performing well but still you may not promoted. An employee added that he
has been working for10 years and has been promoted only once while the other employee who has been
working for 8 years has been promoted twice. According to him the promotions are also one way or the
other politicized as for promotions those are employees are taken into consideration that have a strong
hand at their back and if it is not done an additional pressure is there upon the top management and they
have to take back the promotion and do as the stakeholders say. This is a very negative trait as sometimes
the morale of the employees is very down and they are just looking for other good opportunities so that
they can pursue their career in a better way. The employees also said that when we see this happening we
don’t have that type of motivation anymore which was at the start of the job and most of the employees
are not ready to travel an extra mile for the organization. They are just completing their day to day tasks
and are always in search of a good opportunity than OGDCL. Their working behavior is also impacted as
they are not thinking out of the box and just trying to complete the tasks in an ordinary way.
The pandemic forced the shutdown of drilling sites across Pakistan, halting production and revenue
generation. As we know that COVID -19 impacted all organization in a very negative manner and those
organizations whose operations were related to the field work and research like OGDCL, were the ones
impacted the most. When these drilling sites were closed OGDCL faced a lot of problems regarding the
source of revenue generations. The contracts were already being made with the oil refineries across the
country which was due to deliver. It created the pressure on the overall production supervisors as there
were strict compliances regarding the lockdown and to stop the spread of the virus. There was an
environment of fear among the employees about being infected by the virus so many of them excused to
continue work and some of them mostly labourers even quit the job. Along with the problems related to
the employees who were operating in the field the employees working in the office were also badly
affected. Their whole routine was disturbed and most of the pending work was left over in order to follow
the government safety guidelines. This change was so drastic and it was almost never predicted that this
kind of situation would ever happen so the organization as a whole was not prepared to counter these
effects on the overall productivity. Along with that what happened to the officials mainly chief engineers
and other associate engineers whose job description was to visit the sites of extraction, know the numbers,
collect data, process it, do analysis and do submit the overall report to the top management were not being
able to travel and the crude oil transportation to the refineries was almost stopped. Also that due to
lockdown frustration was at the rise among the employees and there was a fear that either they will be
having a situation of burnout which will eventually lead towards the exit from the company. Even in this
difficult time period when the organization was overburdened with extra expenses and some of the daily
wage laborers and some of the contractual employees were to be exit from the organization to lessen the
pressure of the situation and to maintain a healthy environment with in OGDC. But again some of the
powerful stakeholders jumped into the matter and stopped the HR department from downsizing and also
the labor unions were also a major issue due to which most of the decisions were taken back.
There is significant political interference from both internal and external stakeholders, impacting
decision-making, appointments, and promotions. This leads to an environment where merit and
performance are compromised for personal or political gain, affecting employee morale and
organizational effectiveness.
Appointments and transfers often occur based on political influence rather than merit, leading to
dissatisfaction among employees. Key decisions, including promotions and leadership appointments, are
sometimes made with strong external backing, sidelining qualified candidates.
Labor unions have a strong influence on organizational decisions, at times leading to the reversal of
decisions made by management. This includes impacting decisions related to layoffs, downsizing, or
restructuring, which undermines the authority of the top management and the company’s ability to
manage resources effectively.
Although the HR manual outlines specific promotion criteria (such as a minimum of 5 years of service
and consistent performance), employees report discrepancies in the implementation of these guidelines.
Political connections appear to play a significant role in career advancement, leading to dissatisfaction
and frustration among employees who feel overlooked despite their performance.
Power struggles and political dynamics within the organization undermine teamwork. Employees are
more focused on individual recognition and career advancement, often withholding critical information or
not contributing fully to team goals. This leads to a lack of collaboration and an overall reduction in team
effectiveness.
5.6: Employee Morale and Motivation:
The political environment and inconsistent reward systems result in low morale among employees. Many
employees feel their hard work is not properly recognized unless they have strong political backing,
leading to disengagement, burnout, and even higher turnover rates.
Employees, especially those in field-based positions, expressed concerns about burnout, particularly
during times of operational stress such as the pandemic. There is also a prevailing sense of job insecurity
due to the unpredictable nature of decisions related to downsizing, layoffs, and promotions.
Clear and Transparent Promotion Policies: Revise and enforce promotion and appointment policies to
ensure they are strictly merit-based. This should include clear performance metrics and an independent
review system for promotions to minimize the influence of external factors.
6.2.1: Strengthen Leadership Independence: Empower the leadership team to make decisions without
undue external pressure, especially from powerful stakeholders or labor unions. Encourage top
management to stand firm on organizational policies and initiatives that benefit the long-term health of
the company.
6.2.2: Internal Governance Reforms: Implement internal governance reforms to ensure that political
pressures from unions and external stakeholders do not interfere with day-to-day operations. This could
include creating an ombudsman or grievance redress system to monitor and resolve cases of undue
influence.
6.3.1: Constructive Dialogue with Unions: OGDCL should engage in regular dialogues with unions to
ensure that their concerns are heard, but also set clear boundaries on the extent of their influence.
Establish a more balanced and collaborative approach to labor relations.
6.3.2Union Accountability: Introduce regulations and guidelines to prevent unions from unduly
influencing decision-making. For instance, establish policies that prevent union members from leveraging
political influence for personal gain.
6.4: Improve Employee Morale:
6.4.1: Recognition Programs: Revise the employee recognition programs to ensure that achievements
are acknowledged consistently and equitably. Recognitions should be linked to actual performance and
contributions, rather than political connections.
6.4.2: Career Development Programs: Implement structured career development plans that provide
employees with clear pathways for growth based on their performance and capabilities. This should
include training, mentoring, and leadership opportunities.
6.6.1: Mental Health Support: Introduce mental health and well-being programs to support employees
dealing with stress, burnout, and job insecurity. This can include counseling services, stress management
workshops, and flexible work arrangements when needed.
6.6.2: Exit Surveys and Feedback Mechanisms: Regularly conduct exit surveys and implement
feedback mechanisms to better understand employee concerns and take proactive steps to address issues
before they lead to increased turnover.
6.7.1: Improve Transparency: Foster a culture of transparency through better internal communication.
Employees should be kept informed about organizational goals, policies, and decisions, and have access
to information that impacts their work. Regular Check-ins with Employees: Regular check-ins with
employees, including town halls or focus group discussions, can help management stay connected to the
pulse of the workforce and ensure any concerns are addressed promptly.
7: Conclusion:
The internal political and power dynamics at OGDCL, stemming from both internal and external
influences, significantly impact the organization's efficiency, employee morale, and overall
productivity. The prevalence of political interference in decision-making, unjust transfers, and
the strong influence of labor unions create an environment where meritocracy and fair
promotions are compromised. These factors not only hinder teamwork and collaboration but also
contribute to employee disengagement, burnout, and job insecurity.
To address these issues, OGDCL must focus on fostering a merit-based culture, improving
transparency in decision-making, and reducing external political influences. Strengthening
internal governance, revising labor union dynamics, and enhancing employee recognition and
development programs will help improve morale and motivation. Additionally, implementing
team-based incentives and supporting employee well-being can mitigate the negative effects of
power struggles within the organization.
By taking these proactive steps, OGDCL can create a more transparent, collaborative, and high-
performing work environment, ultimately benefiting the organization and its stakeholders in the
long term.