Hr practices in petrochemical industy a comparison
HR PRACTICES IN THE INDIAN OIL & GAS INDUSTRY Presented By- D E B D E E P B H A N DA R I ( 1 1 / M B A / 0 2 ) P R A M I TA S A M A N TA ( 1 1 / M B A / 0 3 ) S N E H A A G A RWA L ( 1 1 / M B A / 7 0 ) S U M A N S AU R A B H ( 1 1 / M B A / 7 1 ) P O O JA K E J R I WA L ( 1 1 / M BA / 7 2 )
INTRODUCTION HR is 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. India’s 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)
OIL & NATURAL GAS CORPORATION (ONGC) ONGC is a public sector petroleum company in India, contributing more than 79% of India’s crude oil and natural gas productions, ranking 3rd in Oil & Gas Exploration & 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.”
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.
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 RIL’s businesses. RILs talent base, as on March 31, 2011, stands at 22,661 with an average employee age of 41 years. “People are central to Reliances growth strategy”. A large in-house pool of intellectual capital is the driving force behind Reliances 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.
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 worlds 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.
SIMILARITIES HR Policies of both the Companies are directed towards the betterment 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 their employees. Both the Companies fulfill their Corporate Social Responsibilities which one way or other becomes the factor of motivation for their employees. 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.
DIFFERENCESMAIN FOCUS ONGC Reliance Industries Ltd.Objective of the To develop professional To develop future approach in employees workforce. HR policies and aligning them with the Co. objectives. Recruitment Recruitment policy doesn’t Prefers young talents to considers age as an build an efficient important factor. workforce in future. Reservations. No Reservations.Remuneration Pay scales , allowances Depends on the and incentives are performance, governed by the Dept. of responsibility and Public Enterprise,GOI. accountability of the employee
DIFFERENCESMAIN FOCUS ONGC Reliance Industries Ltd.Training And Have less focus on training Training and executive and development. coaching is done oftenDevelopment with changing environment. Appraisal Have guidelines set to Have special committee to recognize employees. ensure efficient delivery System of HR services to employees. Employee Organization do not have HR policies are employee any control as the friendly keeping in viewSatisfaction guidelines are set by the employee needs. Dept. of Public Enterprise, GOI.
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.
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 Departments policy of maintaining diversity at rigs helps strengthening bonds amongst employees.
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 ratio is 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 5–10 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.
Thank You sources• http://petroleum.nic.in/petstat.pdf• www.ril.com• www.ongcindia.com/people.asp• www.astodehradun.com/hrm.pdf