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LEADERSHIP
STYLES AND
CORPORATE CULTURE PREFERENCES
(With special reference to Oil and Natural Gas Corporation
(ONGC), Rajahmundry Asset, Rajahmundry)
In partial fulfillment of the requirements for the award of the Degree of
Submitted by
Sudeep Kumar. Dirsipam
(Register No: 08A81E0044)
2008-2010
CERTIFICATE
ACKNOWLEDGEMENTS
DECLARATION
I hereby declare that this project work entitled Leadership styles and
Corporate Culture Preferences is an original and bonafied work done
by me. This project is being submitted in partial fulfillment of the
requirement for the award of the degree of Master of Business
Administration at Sri Vasavi Engineering College, Pedatadepalli,
Tadepalligudem.
Place:
Date: (Sudeep
Kumar.D)
a
Study
On
Leadership styles &
Corporate Culture
preferences
SUDEEP
KUMAR.DIRSIPAM
CONTENTS
I .INTRODUCTION ----------------
---------------------------------------- 1 - 10
Brief about HRD climate in Indian organizations ....
Statement of the problem ......
Purpose of the Study .....
Objectives of the study ..
Scope of the study ......
Limitations ....
Research methodology ..
CONCLUSIONS
------------------------------------------------------------
SUMMARY
----------------------------------------------------------------
Scope for further research .........
BIBILOGRAPHY
-----------------------------------------------------------
QUESTIONNAIRE
---------------------------------------------------------
LIST OF TABLES
Table Page
no Name of the Table no
Table Showing HRD components,
1 Applications & contexts
Table Showing Man power summary of
2 Rajahmundry asset
3 Table Showing Facilitating leadership style
4 Table Showing Delegating leadership style
5 Table Showing Coaching leadership style
6 Table Showing Directing leadership style
7 Table Showing Response culture
8 Table Showing Relationship culture
9 Table Showing Performance culture
10 Table Showing Control culture
11 Table Showing Corporate culture
preferences for facilitating leadership
12 Table Showing Corporate culture
preferences for Delegating leadership
13 Table Showing Corporate culture
preferences for Coaching leadership
14 Table Showing Corporate culture
preferences for Directing leadership
15 Table Showing Distribution table for
leadership styles and corporate culture
preferences
Table Showing Distribution of Leadership
style scores between Graduates and Post
16 Graduates employees in ONGC
Table Showing Expected values for
17 leadership styles
Table Showing Table showing Calculation of
18 Chi-Square for leadership styles
Table Showing Distribution of Corporate
culture preference scores between
19 Graduates and Post Graduates employees
Table Showing Expected values for
20 Corporate culture preferences
Table showing Calculation of Chi-Square for
21 Corporate culture preferences
LIST OF GRAPHS
Graph Page
no Name of the Graph no
1 Graph showing facilitating leadership
2 Graph showing Delegating leadership
3 Graph showing Coaching leadership
4 Graph showing Directing leadership
5 Graph showing Response culture
6 Graph showing Relationship culture
7 Graph showing Performance culture
8 Graph showing Control culture
Graph showing Corporate culture
9 preferences for facilitating leadership
Graph showing Corporate culture
10 preferences for Delegating leadership
Graph showing Corporate culture
11 preferences for Coaching leadership
Graph showing Corporate culture
12 preferences for Directing leadership
The logo projects the new corporate image of
ONGC as a multinational company and a leader
in the oil and gas business.
The colours of the Sun and Earth will reflect
from Vasudhara the main symbol of the ONGC
Logo and depict the fifty year transformation of
the company from a directorate to a total
energy company. The changeover to a new logo
symbolizes the glowing future of the company
where a new work culture, competitive spirit
and a sense of modernity prevails in every area.
The Vasudhara symbol (the name of the first
well on Ankleshwar field, given by Pandit
Jawaharlal Nehru on May 14, 1960), depicts the
image of a flowing well, (Vasudhara -flow of
wealth), which is vibrant, full of life and active
all the time. In the existing logo, the
"Vasudhara" symbol was blocked with a semi-
circle on the top, thus restricting the flow. This
restriction has been removed so that the flow
lines are open representing flow of wealth and
bounty.
Chapter-1
INTRODUCTION
BRIEF ABOUT
H R D C L I M AT E I N
INDIAN
O R G A N I Z AT I O N S
The focus of all aspects of Human Resource Development is on developing the most
superior workforce so that the organization and individual employees can accomplish
their work goals in service to customers.
Human Resources Development is the medium that drives the process between training
and learning. HRD is not a defined object, but a series of organized processes, with a
specific learning objective (Nadler, 1984), HRD is the structure that allows for
individual development, potentially satisfying the organization's goals. The
development of the individual will benefit both the individual and the organization. The
HRD framework views employees, as an asset to the enterprise whose value will be
enhanced by development, Its primary focus is on growth and employee development,
it emphasizes developing individual potential and skills (Elwood, Holton and Trott
1996). A successful HRD program will prepare the individual to undertake a higher
level of work, organized learning over a given period of time, to provide the possibility
of performance change (Nadler 1984).
The term Human resource development has been in popular use for over two decades
although it is a relatively new area of management practice an inquiry. In common with
other general management practices, it is set against a background of turbulence and
change in organizational life, changes in business environments, work processes and
organizational cultures, with drive a need for successful change management strategies.
HRD is a process of developing und unleashing expertise for the purpose of improving
individual, team, work process, and organizational system performance.
1. About 32% of them had a formally stated policy focusing on HRD. Another
59% did not have a formally stated HRD policy byut claimed to emphasize it. It
is only 9% of organizations that there was no formally or informally known
HRD policy.
2. About 89% of the organizations surveyed had personnel policies that emphasize
continuous development of their employees.
5. Some form of identification of tasks and targets jointly by the appraiser and
appraise, performance review discussions to help appraise recognize his
strengths and weaknesses, appraisal feedback to appraise for improvement, self-
appraisal, identification of development needs, potential appraisal, and
identification of factors affecting performance seem to characterize about 70%
of the appraisal systems.
6. About 55% of them had a definite training policy. For example, one of the
organizations surveyed had a policy that all the executives should be trained in
all areas of general management. In 64% of them there is a separate training
department.
7. Fifty percent of the organizations reported that they have someone to look after
OD activities although 44% of them only had undertaken some OD activity or
the other by the time of the survey. In most of these organizations the OD
activity was focused on team building and role clarity exercises. About 36% of
them reported using OD for developing a work organization, 26% for
interpersonal sensitivity and personal growth and 15% on stress management.
8. About 80% of the organizations required their executives to counsel their
subordinates at least once-a-year although a large number of them encourage
more frequent counseling sessions.
Table 1
HRD COMPONENTS, APPLICATIONS AND CONTEXTS
LEADERSHIP
Leadership is an abstract quality in a human being to induce others to do whatever they
are directed to do with zeal and confidence. It is a quality or ability of an individual to
persuade others to seek defined objectives enthusiastically. The leader is a force of the
organization that designs, executes, coordinates, and controls all the functions of an
organization, i.e. planning, executing, organizing, directing, and controlling.
Leadership inspires; creates confidence; helps the team mates to give their maximum
for the attainment of objectives. In a business organization, managers at all levels, by
whatever name called, are leaders because they all have subordinates whose efforts are
canalized in a definite direction. A leader gives a company the life which creates the
products and innovations that it sells. Effective leaders develop a team of effective
employees, subordinates or followers, and they together develop a more effective
organization.
LEADERSHIP DEFINITIONS
---- Davis
LEADERSHIP THEORIES
Different authorities and different researchers have viewed leadership differently. Some
emphasized the personal qualities of a leader, while other emphasized the behavior of
the leader. Still others viewed leadership as situational. Thus, the researches conducted
by behavior scientists have led to important theories of leadership. They are:
Trait theories:
Trait is defined as relatively enduring quality of an individual. The trait approach seeks
to determine what makes a successful leader from the leaders own personal
characteristics. A review of various research studies has been presented by Stogdill.
According to him, various trait theories have suggested these traits in a successful
leader: (i) Physical and constitutional factors, (ii) intelligence, (iii) self-confidence, (iv)
sociability,(v)will,(vi) dominance and (vii) surgency. Trait theories were quite popular
between 1930 and 1950.
Behavioral theories:
Since the Trait theories failed to establish the relationship between traits and effective
leadership researchers turned their attention to the behavioral aspects of leaders as a
result there are different contributions from different researchers. Different leadership
behaviors identified are:
Initiating structure: It refers to the extent to which a leader defines his own as well as
the subordinates tasks and get there tasks accomplished on time.
1. Consideration: It refers to the extent to which the leader cares for his subordinates,
respects their ideas and feelings and establishes work relations characterized by
mutual trust and respect.
2. Employee-oriented leader: One who focuses on relationships.
3. Production-oriented leader: One who emphasizes tasks and goals, and getting work
done.
Contingency theories:
Contingency theories involve the belief that leadership style is contingent upon the
particular situation and leaders should adapt their styles appropriate to the situation.
LEADERSHIP STYLES
1. Facilitating:
This is a more flexible leadership style in which the leader allows the team
members to be a part of almost every process starting from the role-delegation,
goal setting, problem solving as well as the evaluation and overview. The leader
acts more like a facilitator who inspires the team to reach their goal, by giving
them a nudge every now and then.
The leader tries to inculcate a sense of individual responsibility within every
individual and hence creates an effective team that can function with minimum
supervision.
Involve staff in making the decisions which will affect their work
Make staff feel free to ask questions and discuss important concerns.
Hold frequent staff meetings
Help staff locate and support their own developmental activities.
Listens to staff problems and concerns without criticizing or judging.
2. Delegating:
The Delegating Leadership Style was first described by Paul Hersey and
Kenneth Blanchard in the late 1960s. The Delegating leader is willing to turn
over responsibility for decision making and problem solving to the followers. In
addition, the followers will decide if the leader will be involved in task
completion. The delegating leadership style is most appropriate when the
followers are comfortable taking responsibility and have the experience to
accomplish the necessary tasks.
Delegate broad responsibilities to staff and expect them to handle the details.
Expect staff to find and correct their own errors.
3. Coaching:
This leadership style involves more mutual interaction of the leader and the
team. In this style, the leader sets the goals and identifies the problems; however
the leader consults with his team members and encourages a healthy dialogue to
facilitate exchange of ideas that can be beneficial for the team as a whole. The
leader usually arrives at the decisions after having consulted the team members.
This style of leadership displays more respect for individual opinions since the
leader is more considerate towards the team members.
The leader tends to encourage and appreciate the efforts of his team and
constantly provides encouragement for the team by inculcating a sense of team
spirit. The leader evaluates the performance of the leaders
The Directing Leadership Style was first described by Paul Hersey and Kenneth
Blanchard in the late 1960s. The Directing leader clearly provides specific
instructions, defines the roles and tasks of the 'follower', and closely supervises
task accomplishment. Decisions are made by the leader and announced to the
followers, so communication style is largely one-way.
The directing leadership style is most appropriate when the followers are
inexperienced. For example when there is a large flow of new personnel into the
organization, the directing leader should be very explicit in directing
subordinates.
CORPORATE CULTURE
Corporate culture is the total sum of the values, customs, traditions, and meanings that
make a company unique. Corporate culture is often called "the character of an
organization", since it embodies the vision of the companys founders. The values of a
corporate culture influence the ethical standards within a corporation, as well as
managerial behavior.
One of the principle problems in studying organizational culture stems from the
ontological status of the concept itself (Jones, 1983). Organizational researchers have
utilized a wide variety of culture definitions, but most empirical work has centered on
the view of culture as an enduring, autonomous phenomenon that can be isolated for
analysis and inter-organization comparison (Alexander, 1990). The intricate and
complex nature of OC has led to differences and controversies about the definition,
dimensions, measurement (Cameron and Quinn, 1999) and the context of organizational
culture. However, there is some consensus that organizational culture is holistic,
historically determined, and socially constructed, and involves beliefs and behavior,
exists at a variety of levels, and manifests itself in a wide range of features of
organizational life (Hofstede, Neuijen, Ohayv, & Sanders, 1990; Pettigrew, 1990).
Culture is expressed and transmitted through artifacts, stories, myths and symbols
(Martin, 1982; Siehl and Martin, 1981; Wilkins, 1980; Pettigrew, 1979). Underlying
these symbolic vehicles are patterns of basic assumptions (Schien, 1981, 1983; Dyer,
1982); a set of shared understandings, interpretations or perspectives (Van Maanen,
1983; Louis, 1983) and expectations (Schwartz, Davis, 1981).
Broadly, two schools of thought exist about organizational culture whether it represents
something an organization is or has. Accordingly, researchers have analyzed the
concept of OC, both as a root metaphor, i.e. organizations as expressive forms, and
manifestations of human consciousness (Cameron 1999; Smircich, 1983); and as an
attribute, i.e. possessed by an organization and observable; and even as property
(Linstead, 2001). This is because some researchers are concerned by what appears to
them to be more fundamental issues of meaning and the processes by which
organizational life is possible which is in line with the view that an organization is
culture; while others give high priority to the principles of prediction, generalizability,
causality, and control drawing from the view that an organization has culture
(Smircich, 1983). Both approaches share the conception of organizations as organisms;
existing within an environment that presents imperatives for behavior. However,
literature is less sanguine about the reciprocal evolution of culture through behavior.
Further, culture has been generally accepted to be a phenomenon which is enduring and
relatively stable, which is why organizations across the world need external change
agents to affect the cultural change intervention.
Senior management may try to determine a corporate culture. They may wish to impose
corporate values and standards of behavior that specifically reflect the objectives of the
organization. In addition, there will also be an extant internal culture within the
workforce. Work-groups within the organization have their own behavioral quirks and
interactions which, to an extent, affect the whole system. Roger Harrison's four-culture
typology, and adapted by Charles Handy, suggests that unlike organizational culture,
corporate culture can be 'imported'. Corporate culture is something that is very hard to
change and employees need time to get used to the new way of organizing. For
companies with a very strong and specific culture it will be even harder to change.
Corporate culture is the concept that organizations have to build upon to survive and
support themselves. The right corporate equation would be an optimal combination of
people and culture. It can make the difference between remarkable success and failure.
An ideal culture is change-adept and has an incredible ability to evolve and progress
with changing times.
Corporate culture is created naturally and automatically. Every time people come
together with a shared purpose, culture is created. This group of people could be a
family, neighborhood, project team, or company. Culture is automatically created out of
the combined thoughts, energies, and attitudes of the people in the group.
Corporate culture refers to the shared values, attitudes, standards, and beliefs that
characterize members of an organization and define its nature. Corporate culture is
rooted in an organization's goals, strategies, structure, and approaches to labor. As such,
it is an essential component in any business's ultimate success or failure. "[It] is an
unwritten value-set that management communicates directly or indirectly that all
employees know and work under," stated John O'Malley in Birmingham Business
Journal. "It is the underlying soul and guiding force within an organization that creates
attitude alliance, or employee loyalty. A winning corporate culture is the environmental
keystone for maintaining the highest levels of employee satisfaction, customer loyalty,
and profitability."
Every company has a culture, though not every culture is beneficial in helping a
company reach its goals. A healthy corporate culture is one in which employees are
encouraged to work together to ensure the success of the overall business. Developing
and maintaining a healthy corporate culture can be particularly problematic for
entrepreneurs, as the authoritarian practices that helped establish a small business often
must be exchanged for participatory management strategies that allow it to grow.
The corporate culture energy field determines a company's dress code, work
environment, work hours, rules for getting ahead and getting promoted, how the
business world is viewed, what is valued, who is valued, and much more.
Every company or organizations has numerous corporate cultures. For example, the
marketing department and the engineering department may have very different
corporate cultures which are both influenced by the overall organizational corporate
culture. Many times these two sub-cultures clash.
Culture shows up in both visible and invisible ways. Some expressions of corporate
culture are easy to observe. You can see the dress code, work environment, perks, and
titles in a company. This is the surface layer of culture. These are only some of the
visible manifestations of a culture.
(vii) Titles & Job Descriptions (viii) Organizational Structure (ix) Relationships
The far more powerful aspects of corporate culture are invisible. The cultural core is
composed of the beliefs, values, standards, paradigms, worldviews, moods, internal
conversations, and private conversations of the people that are part of the group. This is
the foundation for all actions and decisions within a team, department, or organization.
Business leaders often assume that their company's vision, values, and strategic
priorities are synonymous with their company's culture. Unfortunately, too often, the
vision, values, and strategic priorities may only be words hanging on a plaque on the
wall.
Corporate culture is actually the container for the vision, mission and values. It is not
synonymous with them. In a thriving profitable company, employees will embody the
values, vision, and strategic priorities of their company.
Corporate Culture Preference Scale testing the following four cultures were
examined;
1. Control Culture:
This culture values the role of senior executives to lead the organization. Its goal is to
keep everyone aligned and under control.
2. Performance Culture:
This culture values individual and organizational performance and strives for
effectiveness and efficiency.
3. Relationship Culture:
This culture values nurturing and well-being. It considers open communication,
fairness, teamwork, and sharing vital parts of organizational life.
4. Response Culture:
This culture values its ability to keep in tune with the external environment, including
being competitive and realizing opportunities.
STATEMENT
OF THE PROBLEM
In the present days some of the Public sector companies are not
performing Vis a -Vis to the corporate level, one of the reasons I assumed
vi) Internal Audit, vii) Finance viii) Vigilance ix) Logistics, x) Geology, xi)
HSE
LIMITATIONS
The study of the topic in the organization may have many limitations, which
prepared.
HYPOTHESIS STATEMENT
1.To find out whether there is any significant relationship between
Graduates and Post graduates in their leadership styles.
Null Hypothesis:
1.1. There is no significant relationship between Graduates and Post
graduates in their leadership styles.
Null Hypothesis:
Secondary data:
The secondary data is collected from the Published records (Human resource manual of
ONGC, Profile of Rajahmundry asset) and reports (Annual reports) of the company,
further magazines and the text books of Human resource management and from the
official website of the company and other internet sources. The secondary data which is
used is appropriately quoted on Bibliography.
Employees:
The data is collected from employees of ONGC, Rajahmundry.
Tools:
Leadership styles questionnaire by Paul Hersey and Kenneth Blanchard and Corporate
culture preference scale Questionnaire designed by Steven.L.McShane is used for
current study.
Sample:
Data were collected from 185 employees of ONGC, Rajahmundry. The sample size
consists of employees from various departments. Employees who are having some
number of subordinates working under them are selected for the questionnaire
administration. Employees from Manager Level to Chief Manager Level are considered
for the survey in order to compare the survey results between Graduate and Post
Graduate employees.
Statistical tool (Chi Square (2) :
The statistical tool used by me to analyze the project is Chi-square ( 2 )
This can be used in simple ranking of values and, therefore, useful where data is
not exactly measured.
Chapter-2
PROFILES IN
THE STUDY
O V E RV I E W O F T H E
I N D U S T RY
Oil and gas industry is the most important sector in any economy since it caters to a
wide range of industries including petrochemicals , fertilizers, automobiles etc. In
current scenario this is one section in economy which is really hot and boiling sector
with crude oil at $146 per barrel and raring to cross $200 per barrel. This sector is
suddenly giving sleepless nights to all the major economies of the world. It is also
responsible for increase in inflation throughout the world.
The major oil consumers are US and China with India at sixth position the irony is that
none of these countries is major producer of oil so they have to rely on other countries
like OPEC, Russia for their needs. OPEC (organization of petroleum exporting
countries) has 11 member countries and they together account for 40% of total oil
production in the world and they have the market share of around 78% in potential
crude reserves. OPEC is the largest exporter of oil so it directly impacts the price of
crude oil in the market. The whole oil sector is divided in to two categories
Upstream It involves exploration and production of crude oil with limited crude
reserves on the earth.
Downstream It involves the refining and transportation of oil. The major companies
in this field are Shell, BP, and IOCL etc
The oil and gas sector in India presents a significant opportunity for investors and is
exhibited to demonstrate robust growth in line with the growth of the Indian economy.
The New Exploration Licensing Policy (NELP), conceived to address the increasing
demand supply gap of energy in India, has proved to be successful in attracting the
interest of both domestic and some foreign players. The success of Cairn India and
Reliance Industries Limited in their Indian operations has underscored this. Other
segments such as Refining, LNG and Gas Distribution etc. are also seeing some action.
India is now surplus in refining capacity and aims to establish itself as a refining hub.
The Petroleum and Natural Gas Regulatory Board aims to make available Piped Natural
Gas (PNG) and Compressed Natural Gas (CNG) in new cities across the country,
besides facilitating the construction of infrastructure to transport natural gas to demand
centers. The lack of available supplies has so far hindered the growth of this segment. In
addition, some gas-based power plants have been operating at low load factors, owing
to the shortage of fuel. The increased availability of hydrocarbons from domestic
sources is thus perceived as necessary to sustain the rapid growth of the Indian
economy.
Two major events last year, the commencement of production of natural gas from
Reliance Industries Ltd's (RIL), Krishna Godavari (KG) fields and the scheduled
commencement of production of crude oil from Cairn India Ltd's fields later this year
have provided a major boost to the domestic oil and gas sector in India and have meant
that upstream activities have received major attention over the past years.
Given India's targeted GDP growth, India's fuel needs are likely to expand at a
substantial rate. India's per-capita consumption of energy and electricity is well below
that of industrialized nations and the word average, meaning that there is scope for rapid
expansion. At the same time, India already imports over 70 percent of its crude oil
requirements, with its oil import bill being close to USD 90 billion in 2008-09.
Given this context, particularly the high import dependence, the New Exploration
Licensing Policy (NELP) was envisaged in 1997 (and operationalized in 1999) by the
MoPNG, as part of its Hydrocarbon Vision 2025, a landmark 25-year planning
document.
Apart from this,
India ranks sixth in refining capacity in the world with capacity at 2.5 million
barrels of oil per day which is 3 per cent of the worlds refining capacity.
India met 75 per cent of its crude oil demand through imports. The domestic
production of crude oil has been in the range of 32-34 MMT over the past few
years. About 60 per cent of its crude imports are from the Middle East.
India has 26 sedimentary basins with an area of 3.14 million square km and
Prognosticated reserves of 28 billion tonne of oil equivalent of gas. The Country
is relatively unexplored with only 18 per cent of area extensively explored Only
25 per cent of the prognosticated reserves have been established till date.
Post 2000, India witnessed some world class discoveries. RIL struck gas in the
offshore Krishna Godavari (KG) Basin on the East coast of India with estimated
reserves of 14 tcf in 2002 (worlds biggest gas discovery of 2002) and Cairn
Energy Plc. discovered oil onshore in Rajasthan (Western region of India) in
2004 with estimated production capability of 100000 barrels per day (4.9
MMTPA).
The national oil companies (NOCs), Oil & Natural Gas Corporation Ltd.
(ONGC) and Oil India Ltd. (OIL) dominate upstream segment with 80 per cent
contribution of oil & natural gas production of India. Other major players of this
segment are RIL, British Gas, Cairn Energy and Niko Resources.
India has a total of 18 refineries with Indian Oil (Indian Oil Corporation Ltd.)
currently owning the maximum refining capacity. Besides being the largest
refinery in India in terms of refining capacity, RILs Jamnagar refinery is the
biggest grassroots refinery in the world and is the third largest in the world.
Finally the major players in Indian oil and gas Industry are:
ONGC is one of Asia's largest and most active companies involved in exploration and
production of oil. It is involved in exploring for and exploiting hydrocarbons in 26
sedimentary basins of India. It produces about 30% of India's crude oil requirement. It
owns and operates more than 11,000 kilometers of pipelines in India. Until recently
(March 2007) it was the largest company in terms of market cap in India.
History
In August 1960, the Oil and Natural Gas Commission was formed. Raised from mere
Directorate status to Commission, it had enhanced powers. In 1959, these powers
were further enhanced by converting the commission into a statutory body by an
Act of Indian Parliament.
1960-2007
Since its foundation stone was laid, ONGC is transforming Indias view towards Oil and
Natural Gas by emulating the countrys limited upstream capabilities into a large viable
playing field. ONGC, since 1959, has made its presence noted in most parts of India and
in overseas territories. ONGC found new resources in Assam and also established the
new oil province in Cambay basin (Gujarat). In 1970 with the discovery of Bombay
High (now known as Mumbai High), ONGC went offshore. With this discovery and
subsequent discovery of huge oil fields in the Western offshore, a total of 5 billion tones
of hydrocarbon present in the country was discovered. The most important contribution
of ONGC, however, is its self-reliance and development of core competence in
exploration and production activities at a globally competitive level.
Post-1990
Post 1990, the liberalized economic policy was brought into effect; subsequently partial
disinvestments of government equity in Public Sector Undertakings were sought. As a
result, ONGC was re-organized as a limited company and after conversion of business
of the erstwhile Oil & Natural Gas Commission to that of Oil and Natural Gas
Corporation Ltd in 1993, 2 percent of shares through competitive bidding were
disinvested. Further expansion of equity was done by 2 percent share offering to ONGC
employees. Another big leap was taken in March 1999, when ONGC, Indian Oil
Corporation (IOC) and Gas Authority of India Ltd.(GAIL) agreed to have cross holding
in each others stock. Consequently the Government sold off 10 per cent of its share
holding in ONGC to IOC and 2.5 per cent to GAIL. With this, the Government holding
in ONGC came down to 84.11 per cent.
In 2002-03 ONGC took over Mangalore Refinery and Petrochemicals Limited (MRPL)
from Birla Group and announced its entrance into retailing business. ONGC also went
to global fields through its subsidiary, ONGC Videsh Ltd. (OVL).
In 2009, ONGC discovered a massive oil field, with up to 1 billion barrel reserves of
heavy crude, in the Persian Gulf off the coast of Iran. Additionally, ONGC also signed a
deal with Iran to invest US$3 billion to extract 1.1 billion cubic feet of natural gas from
the Farzad B gas field.
VISION
To be a world class Oil & Gas Company Integrated in energy business with dominant
Indian leadership and global presence.
MISSION
WORLD CLASS
Focus on domestic and international Oil & Gas exploration and production
business opportunities.
Provide value linkages in other sectors of energy business.
Create growth opportunities and maximize shareholder value.
Retain dominant position in Indian Petroleum sector and enhance Indias energy
availability.
HR Vision
To attain Organizational excellence by developing and inspiring, the true potential
of companys human capital and providing opportunities for growth, well being and
enrichment.
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 provide job contentment through empowerment, accountability and
responsibility.
To build and upgrade competencies through virtual learning, 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.
Oil and Natural Gas Corporation Limited (ONGC) is India's Most Valuable Company,
having a market share of above 80% in India's Crude Oil and Natural Gas Exploration
and Production.
ONGC is committed to its vision of an energy secure nation and the ONGCians work
tirelessly to make this vision a reality, Team ONGC toils day and night in difficult
situations and rough terrain, often putting their very lives in jeopardy. Dense forests
and inhospitable climate fail to discourage the dedicated Energy soldiers of the
country. Whether on Rigs or on oil platforms or in the fields, these courageous people
are the backbone of the economic prosperity of the nation. Let us salute all ONGCians
who risk their lifetime and again and commit themselves to serve the nation.
ONGC - 3rd Largest E & P Company in the world
Performance: 2008-2009
Highest level of Initial In-place hydrocarbons volume in last two decades from
domestic field;
Highest accretion of Ultimate reserves in last 18 years from domestic fields;
Turn over and Net Worth recorded new highs;
The highest profit making company in the country, in Private and Public sector;
The Net Profit of Rs. 16,126 crore, marginally lower than the previous year
(16,701 crore), was despite supporting downstream oil PSUs with the highest
ever of subsidy discount of Rs. 28,225 crore. (Against Rs.22, 001 crore in
FY08).
First exploratory drilling commenced in the basin at Narsapur 1 in 1979. First off
shore well G-1 -1 was drilled in 1980 at a water depth of 250m produced oil. It has
deepest onland well at Bhavadevarapalli 1 (5001m) and deepest offshore well at GS-
11-1 (4611m). Maximum pressure gradient recorded at 2.1 MWE in Tatipaka 1 with
3450 m and BHT recorded at 1870 in Amalapuram 1. Oil production and on land
commercial production of gas started in 1988.
CLASS I
E1 197
E2 179
E3 122
E4 244
E5 217
E6 43
E7 9
E8 1 EXECUTIVE
E9 2 CATEGORY
TOTAL 1014
CLASS II
CLASS II 154
TOTAL 154
CLASS III
A1 1
A2 12
A3 3
A4 31
TOTAL(ASSISTANT) 47
S1 37
S2 19
S3 5
TOTAL 61 UNIONISED
(SUPERVISORY) CATEGORY OF
EMPLOYEES
CLASS IV
W1 25
W2 129
W3 1 (as on date)
W4 1
W5 7
W6 5 Source: Primary data
TOTAL 168 collected from external
guide
TOTAL(C1+C2+C3+C4
) 1444
DEPARTMENTS
The Departments in the ONGC are acknowledged as services. There are mainly seven
services in the Rajahmundry asset. They are again divided into different sub services
based on their work.
They are:
1. Engineering services
2. Drilling services
3. Logging services
4. Well services
5. Support services
6. Surface team
7. Sub surface team
Chapter-3
DATA ANALYSIS
&
INTERPRETATIO
N
Initially, the study is conducted to understand how many of the sample employees
belong to different leadership styles. For the purpose of the study, a leadership
questionnaire is administered to identify the leadership styles among sample employees;
Graph 5
Table - 8
Graph 6
Graph 7
Table - 10
Graph 8
Table - 11
Corporate culture preferences for Facilitating
Leadership:
Interpretation:
From the above table it is implicit that out of 185 respondents, 25% of them
prefer Relationship Culture and 75% of them prefer Response culture under
facilitating leadership.
Graph 9
Table - 12
Interpretation:
From the above table it is implicit that out of 185 respondents, 70% of them
prefer Response Culture, 20% of them prefer Relationship culture and 10% of
them prefer Performance culture under Delegating leadership.
Graph 10
Table - 13
Interpretation:
From the above table it is implicit that out of 185 respondents, 50% of them
prefer Relationship Culture, 22% of them prefer Responsive culture and 14% of
them prefer Performance culture and 14% of them prefer Control culture under
Coaching leadership.
Graph 11
Table 14
Corporate culture preferences for Directing Leader
Interpretation:
From the above table it is implicit that out of 185 respondents, 56% of them
prefer Relationship Culture, 22% of them prefer Control culture and 11% of
them prefer Performance culture and 11% of them prefer Performance culture
under Directing leadership
Graph 12
Chapter-4
FINDINGS
&
SUGGESTIONS
Objective One
The primary objective of the study is to understand the dynamics of leadership styles
and Corporate Culture preferences of employees in ONGC, Rajahmundry Asset.
A total of 185 employees were surveyed. Findings and analysis of the data are
presented follows. Results are arranged and presented by research objective and include
objectives.
Table 15
Objective two
Objective two of the study is to study specifically leadership styles of Graduates and
Post graduates in ONGC, Rajahmundry Asset as measured by the questionnaire
designed by Paul Hersey and Kenneth Blanchard. Scores for all respondents were
calculated on their response sheet. Table.18 illustrates the distribution of respondents.
Hypothesis statement:
Table 16
Findings:
The Chi-Square distribution for 3 degrees of freedom, the table value at 5%
level of significance is 7.815. The calculated value is 5.8659. As the calculated
value is less than the table value and hence null hypothesis is accepted.
Objective three
Hypothesis statement:
The following are the results that were analyzed with reference to find The significant
relationship between Graduates and Post Graduates for the above mentioned Corporate
Culture preferences.
FINDINGS:
The Chi-Square distribution for 3 degrees of freedom, the table value at 5%
level of significance is 7.815. The calculated value is 8.2351. As the calculated
value more than the table value; hence the null Hypothesis is rejected. This
means that there is a significant relationship that exists between the Corporate
Culture preferences among the Graduate and Post graduate employees of
ONGC, Rajahmundry.
SUGGESTIONS
The leadership style and Communication style must be congruent so as to
acquire the best output from the employees.
The research finding offered gives to conclude that Coaching leadership style is pre-
dominant in ONGC, Rajahmundry asset. Also, Relationship culture is most preferred
by employees of ONGC, Rajahmundry asset.
Basing on the above research findings the following suggestions were offered:
The conclusions that are drawn from the above study are:
Some learning points for me that are being observed from and while doing the project
are:
1. The Process and definite procedure to communicate with subordinates and
superiors.
2. The process of handling and maintaining relations with the employees.
3. The importance of being on time and doing every task in time.
4. The kind of response that needs to be given in time of need when there is
urgency.
5. The systematic procedures that followed considering the protocol and position
of the employee.
The present study is conducted in ONGC, Rajahmundry asset the results of the
study cannot be conclusive of other Assets located at different parts of the
country.
Another study can also be conducted to understand the Impact of the corporate
culture preferences of employees on leadership styles and vice versa.
B I B L I O G RA P H Y
6. Oil and Natural gas history, Profile, vision, Mission Retrieved on April 15, 2010
www.ongcindia.com
9. Effective Leadership Styles An article that talks about effective leadership styles and
the various characteristics associated with each leadership style. By Uttara Manohar,
Retrieved on June 7, 2010. http://www.buzzle.com/articles/effective-
leadership-styles.html
10. Want to work with me? The ideal corporate culture by BINDU SRIDHAR Retrieved on
June 7,2010
http://www.thehindu.com/jobs/0401/2004011400341000.htm
12. Indian Economy : Oil & Gas Industry in India, Retrieved on April 20 , 2010
http://www.iloveindia.com/economy-of-india/oil-gas-industry.html
13. Indian Oil & Gas Industry Retrieved on April 20, 2010.
http://www.bharatbook.com/bookdetail.asp?bookid=5788&publisher
15. Industry > Oil & Gas, Retrieved on April 20, 2010.
http://www.ibef.org/industry/oilandgas.aspx
QUESTIONNAIRE
SRI VASAVI ENGINEERING COLLEGE
(Affiliated to Jawaharlal Nehru Technological University,
Kakinada)
Dear respondents,
SUDEEP KUMAR.D
Questionnaire
Gender: ______________________________
1. to almost no extent
2. to a slight extent
3. to a moderate extent
4. to a great extent
5. to a very great extent
6) a. Where employees who perform the best get paid the most
or
b. Where senior executives are respected