REPORT ON MANAGEMENT OF OGDCL

Department =BS GEOLOGY 4th semester

ABDUL WALI KHAM UNIVERSITY MARDAN

Groups

NAME ROLLNO

NAVEED ULLAH = 62

IRFAN ULLAH = 59

ABDUS SAMI = 8

MUHAMMAD USMAN = 70

UZAIR ULLAH = 49
 MANAGEMENT AND WORKING IN OGDCL

Name of a company:- OIL AND GASS DEVELOPMENT COMPANY LIMITED.

Introduction of a company:-
 OGCL was created in 20 sep 1916.
 OGDCL is an exploration and production company.
 OGDCL is a multinational company.
 This company was converted into public limited company in 23 oct 1997.

Background of a company:-
 Company was created on 20 sep 1961.
 This company was established just for exploratory programs and to promote the Pakistan oil and
gas field because in 1951 Pakistan discovered new field of oil and gas in SUI. Because of this
exploration interest of foreign five firms increased toward oil and gas industry of Pakistan.
 But in late in fifties all these firms lost their interest in this industry because of infrastructure of
Pakistan and because of lack of demand of supply.
 So in order to save this industry Pakistani government signed an agreement of loan with USSR
and received money of 27 million rabbles.
 Pakistani government invest this money to create this company which named as OGDCL and
later became a public company and named as oil and gas development company limited.

Present status of a company:-

Vision statement:-
 To be a leading regional Pakistani E&P company of Pakistan.

Mission statement:-
 Mission of a company is to become a competitive, Dynamic and growing E & P company.
 Company rapidly enhance their reserve through world class force best management practice
and technology and maximizing return to all stakeholders by capturing high value business.

Product line of a company:-

The main product produced by a company is

 Crude oil
 Gas
  Liquid petroleum gas
 Naphtha
 Solvent oil
 Kerosene oil
 High speed diesel oil
 Sulphur

Goal achievements:-
 First of all the project is assigned by top manager to on managerial employees then they take
decision to achieve their goals.
 These goals may be on daily basis or may be for weekly basis or may be for yearly basis.
 Employees work on these decision by keeping in their mind all the rules and regulation which
are assigned by regulatory authority.
 By following all these rules employees achieve their goals of exploration and production
successfully.

Function of management:-
Management used strategic management to develop the organization strategies. This task involve all the
basic management function.

 Planning
 Organizing
 Leading
 Controlling
 Staffing

Planning:-
“Panning is something the process of making plans for”.

 Decision which made by a manager may be risk taker may be uncertain or may be having
certainity.
 But when talk about OGDCL their managers says that the chance of risk taking may be less
because decision not only take by single person because millions of dollars used for drilling
process so decision of millions of dollars .
 Different task assigned to different managers there is a proper heirarchy of managers who take
decision for the acheivements of goal.
 If a decision is given by manager this decision go to top manager or general manager then this
decision goes to executive director and then to MD after the approval of different managers this
decision goes to employees and daily work force so they start working on it.
Organizing:-
“Arranging and structuring work to accomplish goals”.

Organizing structure:-
“Organizational structure is a formal arrangement of jobs with in an organization”

 In OGDCL there are more than 10,000 employees but if we include daily workers or labors this
strength goes upto 14,000 people.
 So because of this big force the organization have mix management that is vertical or horizontal
management.

Main department:-
 There are three main departments of OGDCL.
 Corporate department.
 E & P department.
 Technical department.

Chairman
Board of director

Managing director

Company secretory Chief staff manager

E.D E.D E.D E.D E.D

(admin) (finance accounting) (exploration) (drilling) (corporate affairs)

GM General manager GM GM GM

Manager manager manager manager manager

Chief admin chief a/c officer chief manager chief engineer chief corporate

Dy.cheif admin a/c officers junior manager senior manager s.corporate

s.Admin officer a/c section exploration jr.engineer corporate staff

Admin officer drilling staff

No of employees in OGDCL:-
 In OGDCL no. of employees consists of management cadre, executive cadre and overall staff.
Each cadre in divided into pay groups and again each pay groups are divided into all over
Pakistan merit employees and on the quota of particular province.
 Management cards:-

Management cadre

M-I EG-IX EG-VIII

 Only 4 EG-VIII employees are open merit based and rest of 10 employees are from four
provinces, FATA and AK on the basis of quota.

Executive cards:-
Executive carde

EG-VII EG-VI EG-V EG-IV EG-III EG-II EG-I

And trainees are also include in this list . In it 143 employees are on Pakistan merit based and rest of
1762 are on the basis of quota from four provinces, FATA and AK.

Over all employees:-

 Overall staff consists of non-executive employees and trainees.
 There are 40 employees on all over Pakistan open merit list and rest of 9150 employees are on
the basis of quota from four provinces, FATA and AK.

Leading:-
“Leading is a route or means of access to a particular place or in a particular direction “.

Leader’s motivation:-
 If an employee work in an organization when he compare this organization internationally or
nationally than the employee work for the success of this organization same like that OGDCL
compare their working ability of exploration and production internationally because
internationally firms are very rich in exploration and production and want to improve their
 working ability all of this is possible because of a motivating leader. Leader made different rules
and regulation for OGDCL.
 Few years ago Oil and gas industry in Pakistan not very good because of less demand of supply
and poor infrastructure but organization like OGDCL make it possible to take this industry to the
peak level of success. This is all because of leader’s motivation.

Controlling:-
“A management function aimed at achieving defined goals within an established timetable, and usually
understood to have three components: (1) setting standards, (2) measuring actual performance, and (3)
taking corrective action”.

 There are almost 14000 employees so there is a way to manage every one. For example: OGDC’s
timing start at 8:30 so everyone have to reach before the time and everyone have to pass
through the process of attendance.
 When somebody wants to enter in OGDC there is a proper system to give permission to enter
someone first of all reception give an entrance pass then you pass through security system this
security system record the time in or out of that person. This is all includes in controlling.
 If someone doing an unethical thing in OGDC he should be punish for his act. The manager have
to control this type of employee.

Staffing:-
 Staffing is the process of hiring, positioning and overseeing employees in an organization.
 Their staff was well trained.
 They hire many new employees every year.
 They hire new staff on the basis of quota from four provinces, FATA and AK.

Strength:-
 The biggest strength of OGDCL is that this organization is support by government.
 OGDCL is a largest oil and gas company in Pakistan.
 There are large number of fields in Pakistan one of the most famous is Sui which was found in
1952.
 They are financially strong due to their long term experience of 45 years and also financially
support by government.
 Company’s number of skills and exploration and production is much faster than others.

Weaknesses:-
  Company have to improve their production. Production level is low to fulfill demands. Because
of less production of oil and gas load shedding is very common all over the Pakistan.
 They have same products like their competitor have.
 OGDCL have slow promotion process this slow promotion reduce the performances of
employees.

Opportunities:-
 Every organization have opportunities. Some of these opportunities of OGDCL are:
 OGDCL have better competitive position.
 Large shop for training such as OGTI which stands for oil and gas training institute.
 OGDCL support by the ministry P & NR (petroleum and natural resources).
 Expansion of production and drilling activities. Prices less from 100 to 40 to 23 dollars a barrel.

Threats:-
 Being one of the largest companies, OGDCL faced many competitors.
 The major competition faced by the company is PSO (Pakistan state oil) as well as foreign
companies such as MOL(Magyar olaj, meaning Hungrian oil com), etc.
 Latest technologies are threat for organization.

Hr:-
 Human resource department of OGDCL is one of the main departments of the OGDCL.
 Human Resource Deportment at OGDCL is being reorganized to manage people and develop
their skills for meeting Company’s requirements.
 Being the largest exploration and production Company, OGDCL seems to be an attractive
company for talented and motivated people in which high levels of personal and company’s
performance are recognized and rewarded.
 Human Resource Department seems to ensure development of world class workforce, as per
OGDCL’s mission statement, target based working and performance based reward system has
been evolved.

Tqm:-
 Everything have quality so to improve quality OGDCL have to see that where is company’s work
force in which category this work force falls.
 There are different level of qualities so we can say that quality of everything increase day by
day.
 For example: few year ago people do job after bachelors but now a days they are jobless even
after MBA ,M.phil.

Practice of training in OGDCL:-

  OGTI:- oil and gas training institute.
 OGDCL has well build training institution to conduct the training of its employees known as
OGTI. The training institute consists of OGDCL local instructors, outside local instructor (in case
of absence of OGDCL instructor) and foreign instructor.
 These instructors provide the services of training to employees.
 They train the employees appointed by HR department and follow the relevant policies which
ultimately leads to organizational development.
 Present employees are also sent to foreign countries for trainings.

CSR:-
 For CSR OGDCL have a budget of almost 1% in 2014 -2015 invest for CSR activities this amount
comes to 907.77 million.
 OGDCL has always given top priority to CSR, they want to create good environment between
customer and OGDCL.
 In the drilling areas when people disturb during training OGDCL provide them funds due to this
disturbance.
 e.g. if some homes are covered in drilling area they provide these disturbed people, funds for
their health, education and also provide them shelter for living.

Recommendation:-
 OGDCL is the best company. So it should maintain its position.
 It should Produce more and more products to fulfill the problems of the country like Load
shedding.
 It has many opportunities to make its self better than Competitors.
 It should try to minimize its weaknesses.

Conclusion:-
 The OGDCL company is very successful company.
 It’s all staff and employees are very hard working.
 They all are doing their work in very well manner to achieve their goals.
 There are rules and regulations of the company which implement on each and every employee.
 The employees and Managers of this company are very cooperative with the visitors.
 Their security and guards etc. guides the visitors in very good manner so that these visitors can
easily visit their organization and fulfill their purpose.
 They also have competitors but they are capable to sustain their value and successfulness.

End