Practice and employee retention

Hypothesis (introduction)

The dependence of modern economies of the world on the sources of energy is a well known fact. In Pakistan we get the first hand experience of almost fortnightly fluctuations in the prices of fuel (normally to the higher side) and the consequent impact on our own pockets. With the increase in population and overall standards of living, the hunger for petroleum products is continuously on the rise. The dependence of developed economies on the imported oil is so acute that powerful nations of the world use every means at their disposal to gain control over its sources in a bid to assure constant supply of petroleum products to quench the insatiable thirst of their domestic markets. For countries like Pakistan, where the production of these vital drivers of economy is overtaken by the demand and the situation is likely to worsen in foreseeable future as the gulf between the ever increasing demand and the rapidly depleting domestic supply is widening at an alarming rate. This situation further tilts the already tilted balance of trade in favor of imports with obvious ramifications both for the fragile national economy and the individual purchasing power. Under these conditions the role played by the domestic oil and gas sector assumes critical importance.

The Oil and Gas sector consists of three business streams, namely, the Upstream, the Midstream and the Downstream businesses. The Upstream companies comprise the Exploration and Production companies (E&P). As the name suggests that the companies in this segment of oil and gas business perform the highly sophisticated job of exploring and then developing the oil and gas fields. Business success in this segment needs a high level of technological sophistication and very highly skilled employees capable of performing extremely specialized tasks under demanding field conditions (both inland and offshore). The Upstream E&P companies are of two types , the Operating companies and the Services Providers. The Operating companies do the job of Exploration and development of reservoirs and in process assume huge financial risks; the Services Providers on the other hand provide specialized technical services to the operating companies and assist these companies in their efforts to perform the task of exploration and production. The companies operating in the Midstream segment of Oil and gas sector do the job of transporting and refining the oil recovered by the Upstream companies. The companies involved with the Downstream segment of the business deal in the marketing and sales areas of the refined petroleum products.

I have chosen two Pakistani Upstream Operating companies for the purpose of my research. These companies include Oil and Gas Development Company Limited (OGDCL) and Mari Gas Company Limited (MGCL).

The purpose of choosing the Pakistani companies in the Upstream segment of the Oil and Gas Sector for the research is that success of the companies in this business area most notably rests on the capability of their technical employees like Geologists, Geophysists, Drillers and the Petroleum Engineers and their ability to retain these otherwise highly migratory technical employees. The reason for narrowing the focus on these companies is the absolute denial of information by the Multinational Companies with regards to their operations and practices.

The basic premise for studying the Human Resource Management Practices (HR) and Employee Retention issues at OGDCL and Mari Gas Company Limited Pakistan(MGCL) is to assess the importance being attached to these vital aspects by the organizations concerned and to develop an understanding of the relationship between the overall manner in which a company treats its employees and the subsequent impact on the willingness of the employees to stay with it for longer periods of time contributing positively for the overall success of the organization.. Although very basic in nature, these areas are considered vital for long term success of organizations.

Literature review:

Human Resource Management

Human resource management (HRM) refers to the policies, practices, and systems that influence employee's behavior, attitudes and performance. It is also referred to as "people practices". The strategy underlying these practices needs to be considered to maximize their influence on the company performance.

Competitive Advantage

A company is said to have competitive advantage over its rivals when its profitability is greater than the average profitability for all firms in its industry. A company is said to have Sustained competitive advantage when it is able to maintain above average profitability for a number of years.

Strategic Management

Strategic management is a process, an approach to addressing the competitive challenges an organization faces. It can be thought of as managing the pattern or the plan that integrates an organization's major goals, policies and action sequences into a cohesive whole.

HR Practices

The HR function can be thought of as having six menus of HR practices from which companies can choose the ones that are most appropriate to implementing the strategy. Each of these menus refers to a particular functional area of HRM: job analysis/design, recruitment/selection, training and development, performance management, pay structure/ incentives/benefits and labor/employee relations.

Human Resource Planning

Human resource planning is the process of determining future human resource needs relative to an organization's strategic plan and devising the steps necessary to meet those needs. Human resource professionals and line managers consider demand and supply issue, as well as potential steps for addressing any imbalances.

Job Analysis

Systematic collection and recording of information concerning the purpose of a job, its major duties, the conditions under which it is performed, the contacts with others that job performance requires and the knowledge, skills and abilities needed to perform the job satisfactorily.

Job Design

Job design deals with making decisions about what tasks should be grouped together into particular jobs. The way that jobs are designed should have an important tie to the strategy of an organization, because strategy requires that either new or different tasks or different ways of performing the same tasks. In addition, because many strategies entail the introduction of new technologies, this impacts the way that work is performed.

Recruitment and Selection

Recruitment is the process through which the organization seeks applicants for potential employment. Different sources of recruitment include, direct applicants and referrals, advertisements in newspapers and periodicals, public employment agencies, colleges and universities and electronic recruitment.

Selection refers to the process by which it attempts to identify applicants with necessary knowledge, skills, abilities and other characteristics that will help the company to achieve its goals. Different types of selection methods include interviews (experience based and future oriented), references and biographical data, physical ability tests, cognitive ability tests, personality inventories, work samples and honesty and drug tests. These methods can be either used in isolation or suitable combinations can be made to suit specific company requirements.

Employee Training and Development

Training and Development is a planned effort to facilitate employee learning job related behaviors in order to improve performance. Training denotes effort to improve the employee's skills on the present job, while the Development refers to efforts oriented toward improvements relevant to future jobs.

Compensation and Benefits

Compensation consists of wages paid directly for the time worked, as well as more indirect benefits that employees receive as part of their employment relationship with the organization. Wages paid for the time worked as typically payments made in cashable form that reflect direct work related remuneration such as base pay, merit increases, or bonuses. Benefits include forms of compensation beyond wages for the time worked including various protection plans, services, pay for time not worked and income supplement plans such as stock ownership. Benefits are considered a more indirect form of compensation because they are generally not as closely tied to the job and performance issues as other forms of remuneration.

Labor and Employee Relations

Whether the companies are unionized or not, the general approach to relations with the employee can strongly affect their potential for gaining competitive advantage. Companies can choose to treat their employees as asset that requires investment of resources or as an expense to be minimized. They have to make choices about how much employees can and should participate in decision making, what rights employees have, and what the company responsibility is to them. The approach a company adopts while taking these decisions can result in it either successfully achieving its short and long term goals or ceasing to exist.

Importance of Employee Retention

Employee retention is an important factor in an organization's ability to achieve sustained competitive advantage over longer periods of time. Besides this aspect a failure to retain competent employees leads to a number of other problems, and a converse situation has certain advantages as highlighted on the website of an organization "Employee Retention Headquarters" are as under:

  • Lower turnover
  • Increase employee - and customer - satisfaction
  • Increase quality and productivity
  • Increase profits

Explanation

Guidelines for a Motivating Work Environment

  • Make only the minimum number of rules and policies needed to protect your organization legally and create order in the work place.
  • Publish the rules and policies and educate all employees.
  • With the involvement of many employees, identify organizational values and write value statements and a professional code of conduct.
  • Develop guidelines for supervisors and educate them about the fair and consistent application of the few rules and policies.
  • Address individual dysfunctional behaviors on a "need-to" basis with counseling, progressive discipline, and performance improvement plans.
  • Clearly communicate work place expectations and guidelines for professional behavior.

Undertake primary and secondary research methods relating to your proposal, with explanations & Justifications;

Research Methods

Articles (Secondary Sources):

There are two articles that I studied in reference to my study. They helped me to better understand the concerned topic.

People Leave Managers, Not Companies: How To Increase Employee Retention

The cost of employee turnover is from 40--100% of an employee's annual salary, when you consider lost productivity, recruiting costs, training costs, reduced efficiency in transition and time.

Employee attrition is running wild in today's tight labor market; however, the companies that keep their employees have found that what matters most is not the pay, benefits, or perks, but the quality of the relationship between employees and their direct supervisors. The bottom line is that people leave managers, not companies.

  • Failure to hire the correct type of employees.
  • Below the industry standards compensation.
  • Poor performance management.
  • Failure to acknowledge good performance in tangible terms.
  • Lack of developmental and career growth opportunities.
  • Lack of empowerment and Lack of Job satisfaction
  • Lack of supportive environment.
  • Failure to treat employees with respect.
  • A culture of lack of trust and Poor motivational climate
  • Lack of Employee Communication

ERC's Retention Model

Employee Retention Connection's decades of applied organizational experience indicate three primary drivers of employee retention:

  1. Stimulating Work
    • Variety of assignments
    • Autonomy to make decisions
    • Resources and support provided to do good work
    • Opportunity to learn
    • Feedback on results
    • Understanding the significance of one's personal contributions
  2. Motivational Leadership
    • Champion change and are open to new ideas
    • Inspire a share vision of organization direction
    • Motivate and recognize contributions
    • Develop the capabilities of others
    • Model behavior that reflects organization values
  3. Recognition & Reward
  • Say "Thank you" for a job well done
  • Reinforce desired behaviors
  • Create an emphasis and focus on recognition
  • Celebrate successes
  • Build self-esteem and Enhance camaraderie and teamwork.

Questionnaires (Primary Sources):

I emailed this questionnaire to the companies above and made a special request for these to be completed by employees in the respective HR departments & then return to me.

CODE OF ETHICS:

The Code of Ethics sets out a company's responsibilities and objectives to various stakeholders and the ethical standards, which are required from its directors and employees to meet such objectives and responsibilities.

OGDCL:

As the leading exploration and Production Company in Pakistan, OGDCL's primary objective is to enhance its reserves and production profile and ultimately maximize value for shareholders considering the following code of ethics:

  1. Build strategic reserves for the future growth.
  2. Growth and superior returns to all stakeholders.
  3. Make investment decisions by ranking projects on the basis of best economic indicators.
  4. Maximize profits by investing surplus funds in profitable avenues.
  5. Reduce cost and time overruns to improve performance results.
  6. Continuously improve quality of service and responsiveness to maintain a satisfied customer base.
  7. Improve reliability and efficiency of supply to the customer.
  8. Motivate our work force, and enhance their technical, managerial and business skills through modern HR practices.
  9. Acquire, learn and apply state-of-the-art technology.
  10. Emphasize organizational learning and research through effective use of knowledge management systems.
  11. Fill the competency gap within the organization by attracting and retaining best professionals.
  12. Attain full autonomy in financial and decision making matters.
  13. Be transparent in all business transactions.

Initiatives have and are being taken to effectively establish Good Governance practices through:

  1. Introduction of Code of Ethics and Business Practices.
  2. Merit - driven hiring
  3. Performance - driven promotions and appraisals.
  4. Strict adherence to laid-down rules, regulations and procedures.
  5. Development of Policy Statements in the areas of Marketing, CSR, Risk Management, etc, as a part of its business principles.

MGCL:

  1. All transactions should be reflected precisely in accordance to the accounting principles in the books of accounts.
  2. Compliance with all applicable regulations, directives, rules and laws including those issued by the Board of Directors and management.
  3. Confidentiality of the Company's internal confidential information must be maintained and upheld. This includes proprietary, business, financial, joint-venture, technical, customer and employee information that is not publicly available.
  4. The directors and the employees of the Company shall ensure that they adopt efficient and productive time management schedules.
  5. The directors and employees will strive to promote integrity, fairness and honesty in all aspects of its business and its dealings with vendors, contractors, customers, joint venture participants and Government officials.
  6. The directors and employees shall not accept nor give gifts, entertainment, or any other such personal benefit or privilege that could influence business dealings.
  7. In order to achieve continuous improvement in performance, The Company, its directors and employees will endeavour to exercise a systematic approach to health, safety and environmental management.
  8. Company shall not make payments or contributions to political parties and organizations. If employees elect to take part in any form of political activity, then they must make sure that such activity does not and will not have any adverse affects on the Company. Also, such activities must be within the legally permissible limits
  9. It is the policy of the Company to provide employment opportunities without regard to gender, religion, race, colour, age or disability subject to suitability for the job.
  10. Disciplinary action such as dismissal may be taken if there is Failure to adhere to the Company's business practices or Code of Ethics.
  11. All Company directors and employees must understand and adhere to the Company's Business Practices and Code of Ethics. They must commit to individual conduct in accordance with the Company's Business Practices and Code of Ethics. They must also observe both the spirit and the letter of the Code in their dealings on the Company's behalf.
  12. THEORETICAL FRAMEWORK

    While going through the research in Oil and Gas sector and reviewing my literature and the related material, I was able to identify variables and to classify them into dependent and independent variables afterwards.

    The steps involved in developing theoretical framework are as follows:

    STEP 1: LABELLING VARIABLES

    STEP 2: RELATIONSHIP AMONG VARIABLES

    I have developed the relationship among variables and this relationship is based on the theory and model which has already been in the literature

    STEP 3: DIRECTION OF RELATIONSHIP

    The next step which I followed in my research was to describe the direction of relationship among variables.

    There is a direct relationship between employee retention and HR practices used in Oil & Gas sector. For example; as we properly recruit the candidates in their desired areas, the result will be their long lasting relationship with the company.

    STEP 4: REASONS OF RELATIONSHIP

    Every person has different reasons for working, but we all work because we obtain something that we need from work, and the result is the loyalty which can be obtained by the company's HR policies. After saying that, there is a reason to describe relationship among variables. In order to do so, I can easily say that if good HR practices are followed by the focused sector (Oil & Gas), the retention of employees which are not only doing desk jobs, but also which are on field jobs can be increased and it will bring an increase in their loyalty with the company.

    STEP 5: SCHEMATIC DIAGRAM

    HYPOTHESIS DEVELOPMENT

    EXPLANATION

    After doing the Theoretical frame work I was able to classify the variables and then I made hypothesis for each of them. In order to relate the findings with the real life I made a questionnaire of 16 questions. These questions were related to the variables and they were properly sequenced.

    Scale

    In my research, to get the optimal solution from the questions, I used the Nominal scale and to measure it I used the percentage method and mean method.

    Sample size

    The sample size of my research analysis was 50.

    Record, present and summarise your findings using suitable methods'

    FINDINGS

    Industry Overview

    Before going in the depth study of the Human Resource aspects of this important and vital industry it is considered essential to take an overview of the industry as whole.

    History of Oil and Gas Exploration in Pakistan

    Petroleum exploration in some parts of what now constitute Pakistan began more than a century ago.

    • The first well was drilled in 1866 at Kundal in the Mianwali District.
    • Some drilling activities were also undertaken in other parts of Punjab in 1875.
    • Discovery of oil atKhattan in Balochistan was the first notable success; it comprised drilling of 13 shallow wells which resulted in combined production of 25,000 barrels of oil between 1887 and 1892.
    • The first commercial success came with the drilling by Attock Oil Company in 1915, in Khaur in the Potowhar Basin.
    • Steady exploration drilling continued in the Potowhar Basin and led to the discovery of three oil fields at Dhulian, Joya Mair and Balkassar in 1937, 1944 and 1946 respectively.
    • In1952, Pakistan Petroleum Limited (PPL) discovered the giant gas field with a known potential of 9.6 Trillion Cubic Feet, at Sui near Dera Bugti in the province of Balochistan.
    • The Sui field became operational in 1955 at an initial of gas output of 15 Million Cubic Feet per day (MMCFD).
    • PPL, discovered five more gas fields at Zin, Uch, Khairpur, Mazarani and Kandhkot between 1954 and 1958. In addition, Esso discovered the giant Mari gas field (6 TCF) in the Central Indus Basin in 1956.
    • In order to sustain a satisfactory level of exploration, the government established a public-sector entity by creating the Oil and Gas Development Corporation (OGDC) in 1961.
    • In the Potowhar Basin, it discovered nine oil and gas fields (Dakhni, Fimkassar, Chak Naurang, Missa Keswal, Bhal Saydan and Sadkal), and in the central region it discovered sixgas fields (Loti, Pirkoh, Nandpur, Panjpir, Rodho and Kothar)
    • The OGDCL discovery of Pirkoh and Loti gas fields in 1977 and 1985 respectively
    • This led to gas discoveries at Kandanwari by Lasmo in 1989, at Qadirpur (the third largest gas field in the country) by OGDCL in 1990 and at Miano.
    • In 1993 by OMV in Lower Goru. OGDCL has thus far recorded 44 discoveries.

    Company Overviews

    Before studying the HR practices and their impact on the employee retention companies in the companies selected for this research it is important to have a look at their profiles.

    Oil & Gas Development Company Limited (OGDCL)

    OGDCL is the largest oil and gas exploration company in Pakistan.Prior to the emergence of this company, exploration activities in the country were carried out by Pakistan Petroleum Ltd. (PPL) and Pakistan Oilfields Ltd. (POL). In 1952, PPL discovered a giant gas field at Sui in Balochistan. This discovery generated immense interest in exploration and five major foreign oil companies entered into concession agreements with the Government.

    To revive exploration in the energy sector the Government of Pakistan (GOP) signed a long-term loan Agreement with the (then) USSR on 04 March 1961, whereby Pakistan received 27 million Rubles to finance equipment and services of Soviet experts for exploration. Pursuant to the Agreement, OGDC was created under an Ordinance on September 20, 1961.

    Prior to 23rd October 1997, OGDC was a statutory Corporation and was known as OGDC (Oil and Gas Development Corporation). The Petroleum Policy 1994 emphasized the need for restructuring of OGDC on commercial lines through strengthening of its Board of Directors and allowing it more autonomy in all administrative, operational and financial matters. The Petroleum Policy 1994 also envisaged conversion of OGDC from a statutory Corporation into a public limited joint stock company and restructuring of Government investment in OGDC.

    CORE VALUES

    • Merit
    • Integrity
    • Team Work
    • Safety
    • Dedication
    • Innovation

    The company also claims to be making efforts in get itself counted as a responsible corporate citizen of the E&P community. In line with its social obligations, it claims to proactively promote, develop and maintain medical, social and welfare facilities and schemes for the benefit of the local communities affected by its work and presence. These include employment opportunities for locals, construction of roads, setting up dispensaries and providing free first-aid and health care, establishing schools, granting fellowships and scholarships, supply of drinking water, donation for charitable causes and financial assistance for numerous projects to improve the quality of life of peoples and communities with which it interacts.

    Mari Gas Company Limited (MGCL)

    Mari Gas Company Limited is one of the largest oil and gas exploration and production companies in Pakistan.

    The company is operating the second largest gas field in the country known as the Mari Gas Field which is located at Daharki, District Ghotki, and approximately 96 Kms NE of Sukkur.

    Under an agreement signed among Fauji Foundation, Government of Pakistan and OGDCL, Mari Gas Company was incorporated on December 4, 1984 as an unlisted public limited company. The shares of the company were held by Fauji Foundation, Government of Pakistan and OGDCL in the ratio of 40:40:20 respectively. The company took over the assets and liabilities of joint venture and commenced business in its own name on December 23, 1985. Government of Pakistan divested 50% of its share holding (i.e. 20% of the total shares) in favor of general public in 1994.

    Commitments

    • Explore and enhance the potential of our human resource.
    • Align the interests of our shareholders, human resources, customers and other stakeholders to create significant business value characterized by excellent financial results, outstanding professional accomplishments and superior performance.
    • Ensure a safety, reliability and a healthy environment for workforce.
    • Adopting advanced technology, cost effective/efficient opportunities, lower costs, increasing operating efficiency and adherence to high environmental standards.
    • Provide uninterrupted gas supply to the customers.
    • Maintain good operational practices.

    Summary of Research Findings

    HR Practices and Employee Retention at OGDCL

    Human Resource Function

    The Human resource function falls under the purview of the Administration Department of the company. All the functions relating to the management of human resources are performed by various sub functions of the Administration Department. The Department comprises a total of over 2500 employees. There are over 300 officers and approximately 2200 lower grade staff members in this department. Various tasks performed by each sub function is as under:

    Recruitment and Selection

    Employees of Contract and Work Charge/Casual cadres are employed depending on the requirements of various departments. Selection for the employment in these categories is done primarily on the basis of interviews and almost all the candidates get inducted in the organization depending upon their relationship with the influential people of the company.

    Training and Development

    The Company has a well developed system and infrastructure for imparting training to its employees. Oil & Gas Training Institute (OGTI) is the only institute in the country which imparts training to not only the officers and technicians of OGDCL but also to employees of other national and multinational E&P sector companies operating in Pakistan.This institute was established at Islamabad in 1979. Training Institute provides basic training to the petroleum industry graduates and technicians enabling their career induction, as well as refresher and advance training to experienced professionals in all three streams of petroleum in general, and upstream in particular. Main roles and functions of the institute

    Compensation

    Employees of the company were paid as per the GOP pay scales along with some additional allowances up to 2005. The inclusion of additional allowances made the salary packages of the OGDCL employees better than the rest of the Federal Government employees while remaining well below the industry standards. Employees serving on field locations were entitled to certain additional allowances. Standard retirement benefits applied to the employees of the company like other employees of the federal government

    Performance Appraisal

    The prevailing system of performance management is on similar lines as that of other government departments of the federal government. Under the prevailing system the employee performance is reported in the Annual Confidential Report. The instrument used for the purpose of writing this report is an attribute based form which gives total leverage to the reporting officer. An anniversary approach to managing the employee performance is adopted at the company.

    Employee Retention

    The company has a very low turn over rate among the non technical employees including both officers and line staff. The things are however, different for the technical employees of the company. In case of technical staff members the rate of voluntary turnover hovers in the range of 8-10%. To leave the organization an employee has to give a one month's notice to the concerned department. At the end of the notice period the employee can leave the organization. If an employee leaves the organization without any notice, he has to deposit one month's salary as penalty for not giving the notice as required by the policy. Mostly the departing employees are officially not asked reason for quitting the organization and there are no exit interviews of any type.

    Communication, Coordination and Teamwork(EE relations)

    The company publishes a monthly Newsletter titled "TALASH" covering the various facets of the company operating activities. The routine information mostly official in nature is displayed on the notice boards by the respective departments

    HR Practices and Employee Retention at MGCL

    Human Resource Function

    Currently the company has 400 employees on its pay roll of which 150 belong to the managerial cadre. A number of non core functions have been outsourced to other organizations which include provision of security guards, running of company messing facilities, maintenance of vehicles and equipment and gardening etc. These 800 employees though are not directly managed by the HR Function but are monitored indirectly through administration. The HR department falls under the overall supervision of the GM HR and Administration. The HR department itself comprises an HR Manager, three officers and two member support staff. The Human Resource Function is fully integrated in the business activities of the company. The HR function enjoys the due importance and its contribution is acknowledged across the company.

    Recruitment and Selection

    The company does not restrict itself to a single source of recruitment for attracting potential hires. The policy of not relying very heavily on a few sources of recruitment requires the company to use a diverse set of means for attracting an array of potential hires to fill up various positions in the organization. The means used for the purpose include direct applicants, referrals, colleges and universities visits, and online applicants. The use of newspapers as a means of attracting candidates to fill up a position is resorted on requirement only (in case the company does not have sufficient number of candidates to choose from). These sources generate a sizable volume of potential candidate information which is stored in the HR Department's data base. When a vacancy is generated the available candidate data is used to initially shortlist and then call the short listed candidates for tests and interviews.

    Training and Development

    Employee training and developmental activities include such activities as on the job training, training courses, both in country and abroad, rotation within various functional areas relevant to the employee's line of work and other exposures such as attending conferences, workshops and other short duration activities for both the junior level and senior managerial employees. Detailed training needs are worked out for every job description of the managerial employee cadre keeping in view the specific job related and developmental needs. The company takes the training seriously which can be gauged from the fact that it spends approximately Rs.10-12 million per year on the training activities of its employees.

    Performance Management

    A three tiered performance appraisal system is followed at the company where possible. Performance appraisals are done annually and the concerned reporting officers of the employees are bound to carryout regular counseling sessions of the appraisees. A written record of all counseling sessions is maintained by the concerned reporting officer in Counseling Register. HR department keeps a regular check on these registers to ensure that regular quarterly counseling sessions are conducted. The performance appraisal instrument is a four page form containing a mix of attributes and behavioral indicators

    Compensation

    The compensation package is a sum total of the base salary, various allowances and benefits such as medical, leave encashment etc. The lower level employees are given certain additional emoluments like child birth allowance up on the birth of first three children. The compensation packages offered to the company employees are market compatible and keep increasing with enhancement in the service years. The company offers a minimum annual raise which is marked in relation to the prevailing CPI for the year concerned. This raise is slightly above or below the CPI for the year concerned. The company also offers bonuses to its employees depending upon the profits and other factors. Special raises are given to the employees earning higher performance ratings during the year. The amounts of these raises vary between no raise in case of marginal performers to raises ranging between eighteen to twenty percent of the existing salary for the year. The employees are not paid any bonuses and there are no profit sharing, gains sharing or stock ownership programs for the employees of the company.

    Employee Retention

    According to the available information until very recently turnover was almost zero. Of late, however, there have been some changes due to which the organization is attempting to part ways with the Free Rider category and there have been certain involuntary terminations. This change in the trend is enabling the company to get rid of deadwood while the level of security for competent employees has not only remained unaffected but has also improved. The company offers pensionable jobs to its employees and of late people have started to retire from the company. The company prides itself with providing a highly conducive working environment to its employees and the HR department attributes this to the company's ability to retain competent employees. The department also maintains that the company is in continuous quest to improve the satisfaction levels of its employees.

    Communication, Coordination and Teamwork

    The Corporate Affairs Department of the company publishes a quarterly news letter of the company which contains information pertaining to various activities of the company in all spheres of its operations like Exploration, Operations, Financials and HR affairs. The HR section contains such information as promotions, best performer of the Quarter, long service award, new arrivals in the organization and obituaries etc. Interdepartmental coordination is done on formal forums.

    Recommendations based on findings of your research;

    RECOMMENDATIONS:

    I recommend the following steps should be taken in order to enhance the productivity of the sector.

    1. Provide pay rate increases or bonuses for service periods, i.e., 3 months, 6 months, 1 year.
    2. Celebrate service milestones, i.e., one-year anniversary with photos, lunch, etc.
    3. Recognize the contribution of part-time employees with full-time status.
    4. Invest in employees by providing training opportunities.
    5. Pay equitably and provide competitive benefits.
    6. Frequently and personally express appreciation to employees.
    7. Assign each employee a committed and positive mentor/buddy.
    8. Promote from within.
    9. Know your employees and their life changes.
    10. Connect with the employees' families by sending family welcome gifts, newsletters, etc.
    11. Separate HR From Administration

    Conclusions:

    Based on industry analysis, findings and analysis of the HR practices and the respective ability of OGDCL and MCGL to retain their technical employees, following major conclusions are drawn:

    1. Give quality time to your valued employees.
    2. Really LISTEN to your staff members.
    3. Verbally acknowledge your employees regularly.
    4. Motivate your staff to take risks and try new things.
    5. Recognize your valuable employees with Employee Recognition Programs.
    6. Be honest with your employees.
    7. Train your staff members to be able to take your place.
    8. Teach your staff members to communicate positively and effectively.
    9. Spread the wealth.
    10. Create and motivate a continued positive, energetic workplace environment.
    11. Record of the monitoring and control of Project;

    A project is monitored for any risks and just in case if it turns away from the original plan. The purpose of Project monitoring and control is to provide actions which can be taken when a project turns away significantly from the plan.

    A problem I faced was with the time schedule. I had to wait longer than I predicted for the questionnaires to be returned to me. This also caused me to suffer a delay in the analysis of the findings and set me back a few days. To negate the effect of this problem I had to ring the companies personally to request them to return the questionnaires back to me as soon as possible.

    Produce a record of your research findings;

    From Questionnaire:

    1. The companies of the said sector are using proper training sections and orientation programs for there employees.
    2. As the employees are properly compensated, they will show more loyalty with the firm.
    3. If companies keep on developing the relationships with its employees, then the retention of employees will also increase.
    4. There will be a positive change in the employee's retention as concerned sector keeps on improving the safety plans
    5. If the firm don't appraise its employees well than it will loose their loyalty
    6. The said sector are using proper training sections and orientation programs for there employees.
    7. There were many difficulties in past year in recruiting the employees
    8. If the job requirements are not properly analysed then the candidate will not properly fulfill the job and there might be a chance that he will leave the job due to misunderstanding and confusion.
    9. Evaluate the methodology you have used and critically analyse the findings;

    I haveused nominal scale in my research project. This helped me to analyze the data. Under this scale I used two measuring instruments, named, percentage and mean to measure the results of the questionnaire.

    I used a questionnaire as my Primary research because it is very important to know the workers' views & answers. Articles are useful, but questionnaires are necessary in my opinion, because it will tell us what the employees really think & hence increase the accuracy and the reliability of the research.

    Provide a justification for future research;

    By using nominal scale I can now easily interpret the data which will help infuture research. Through this scale it is easy to tell the importance ofthe variable in said sector thathas been defined earlier.

    Future research is possible also because employees keep changing all the time, some may be promoted, while some may leave. In this case, the research findings would be different, which could then result into a different conclusion of the research.

    References:

    1. Harvey Don and Brown. R. Donald 2001 "An Experiential Approach to Organizational Development" 6th, Prentice Hall, New Jersey, pp 69,70
    2. Bartol. M. Kathryn and Martin. C. David 1998 "Management" 3rd, McGraw- Hill, New York, pp 315
    3. Noe .A. Raymond, Hollenback .R John, Gerhart Barry and Wright m. Patric 1999 "Human Resource ManagementGaining a Competitive Advantage " 3rd, McGraw- Hill, New York, pp 43
    4. http://www.employee-retention-hq.com/
    5. http://humanresources.about.com/od/rewardrecognition/a/needs_work.htm
    6. http://humanresources.about.com/cs/moralemotivation/l/aa032801a.htm
    7. http://www.advantagepoint.com/articles/staffdev/art5.html
    8. http://coachingandmentoring.com/Articles/voluntaryturnover.htm
    9. http://humanresources.about.com/cs/selectionstaffing/l/aa080501a.htm
    10. http://www.employeeretentionstrategies.com/bottomline.htm
    11. http://www.employeeretentionconnection.com/retentionsystem.html
    12. http://www.employeeretentionconnection.com/steps.html
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    14. http://www.tri-network.com/articles/empret.html
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    17. http://www.privatisation.gov.pk/PDF-Files/OGDCL%20SS%20-%20Summary%20of%20Key%20Information%20291003.pdf
    18. http://www.businessmonitor.com/images/pdfs/oilgas/pakistanoilgas_sample.pdf
    19. http://www.asiatradehub.com/pakistan/oil.asp
    20. http://www.mpnr.gov.pk/overview.php
    21. http://www.ogdcl.com/
    22. http://www.atimes.com/atimes/South_Asia/EJ04Df07.html
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    24. 3rd Quarterly Report, March 31, 2005
    25. http://www.pakoil.com.pk/Aboutus1.htm
    26. Annual Report of POL for year 2003-2004,pp 10-11
    27. http://nation.com.pk/daily/july-2005/25/bnews7.php
    28. http://www.privatisation.gov.pk/Handout/HO-AR-02/May-02/EOI-INVITEDPOF52102.htm
    29. http://www.pakoil.com.pk/vision_statement.htm
    30. Annual Report of POL for year 2003-2004,pp 2
    31. http://www.pakoil.com.pk/Core%20Values.htm
    32. http://www.ogdcl.com/ogti/
    33. http://pdfdatabase.com/index.php?q=sample+hr+questionnaire
    34. http://www.ogdcl.com/ogti/facilities.html

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