Organizational Structure Printout PDF

ASSIGNMENT
TOPIC
STUDY OF
OIL AND NATURAL GAS CORPORATION LIMITED (O.N.G.C.)
ORGANIZATIONAL STRUCTURE
Submitted by
Name Id no.
SURAJ VIJAY BAKANE 2017H1490367P
Oragnization
A social unit of people that is structured and managed to meet a need or to pursue collective goals.
All organizations have a management structure that determines relationships between the different
activities and the members, and subdivides and assigns roles, responsibilities, and authority to
carry out different tasks. Organizations are open systems--they affect and are affected by their
environment. Organisations are needed everywhere-business, politics, education, health,
infrastructure for an all round economic growth. Organisation is a multi-dimensional and complex
body. But most of them have common objectives like to economise, costs cutting and to prioritise
because of the problem of limited and scarce resources. It also includes developing resource
acquisition strategy, developing survival and growth strategy because of the presence of
competition, employment of staff and managing input of resources. Therefore, there are a variety
of management systems, practices and strategies.
What is 'Organizational Structure’ ?

Organizational structure is a system that consists of explicit and implicit institutional rules and
policies designed to outline how various work roles and responsibilities are delegated, controlled
and coordinated. Organizational structure also determines how information flows from level to
level within the company. For example, in a centralized structure, decisions flow from the top
down, while in a decentralized structure, the decisions are made at various different levels. At its
highest level, an organizational structure is either centralized or decentralized. Traditionally,
organizations have been structured with centralized leadership and a defined chain of command.
The military, for example, is an organization famous for its highly centralized structure, with a
long and specific hierarchy of superiors and subordinates. However, there has been a rise in
decentralized organizations, as is the case with many technology startups. This allows the
companies to remain fast, agile and adaptable, with almost every employee receiving a high level
of personal agency. Organizational structures are normally illustrated in some sort of chart or
diagram. It has the following dimensions.
JOB SPECIALIZATION
BEHAVIOUR
CENTRALISATION
FORMALIZATION
JOB SPECIALIZATION
The process of focusing one's occupational concentration on a specific area of expertise. An

increase in job specialization among employees can make them less flexible since it tends to reduce
their ability to perform other types of work within the business that fall outside their particular
specialty. Job specialization, also called work specialization or division of labor, is the process of
separating all the activities necessary for the business or the organization into individual tasks. As
part of this process, management -- working with the human resources department -- takes each
task and assigns them to specific people/positions. The job descriptions human resources provides
when they advertise open positions and hire new employees reflects job specialization.
CENTRALIZATION
Centralization, is the process by which the activities of an organization, particularly those

regarding planning and decision-making, become concentrated within a particular or group,
keeping all of the important decision-making powers within the head office or the center of the
organization.
FORMALIZATION
Formalization in organizational structure is a process in which managers specify (in writing),

procedures, rules and responsibilities for the individual employees, organizational units, groups,
teams and the organization as a whole, which leads to the development of processes, relationships,
and operating procedures. The formalization of the organization is the result of the management's
tendency towards bureaucracy and centralization.
OIL AND NATURAL GAS CORPORATION LIMITED IN BRIEF
Oil and Natural Gas Corporation Limited (ONGC) is an

Indian multinational oil and gas company headquartered in Dehradun, Uttarakhand, India. It is
a Public Sector Undertaking (PSU) of the Government of India, under the administrative control
of the Ministry of Petroleum and Natural Gas. It is India's largest oil and gas exploration and
production company. It produces around 77% of India's crude oil (equivalent to around 30% of the
country's total demand) and around 62% of its natural gas.
On 31 March 2013, its market capitalization was INR 57.2 trillion (US$728 billion), making it
India's first largest publicly traded company.[4][5] In a government survey for fiscal year 2016-17 ,
it was ranked as the largest profit making PSU in India. ONGC has been ranked 3rd in the Fortune
Global 500 list of the world's biggest corporations for the year 2015.[7] It is ranked 1st among the
Top 250 Global Energy Companies by Platt’s.
ONGC was founded on 14 August 1956 by Government of India, which currently holds a 68.94%
equity stake. It is involved in exploring for and exploiting hydrocarbons in 26 sedimentary
basins of India, and owns and operates over 11,000 kilometers of pipelines in the country. Its
international subsidiary ONGC Videsh currently has projects in 17 countries. ONGC has
discovered 6 of the 7 commercially producing Indian Basins, in the last 50 years, adding over 7.1
billion tonnes of In-place Oil & Gas volume of hydrocarbons in Indian basins. Against a global
decline of production from matured fields, ONGC has maintained production from its brownfields
like Mumbai High, with the help of aggressive investments in various IOR (Improved Oil
Recovery) and EOR (Enhanced Oil Recovery) schemes. ONGC has many matured fields with a
current recovery factor of 25–33%. Its Reserve Replacement Ratio for between 2005 and 2013,
has been more than one. During FY 2012–13, ONGC had to share the highest ever under-recovery
of INR 8993.78 billion (an increase of INR 567.89 million over the previous financial year)
towards the under-recoveries of Oil Marketing Companies (IOC, BPCL and HPCL).
ORGANIZATION DESIGN & STRUCTURE
Oil and natural gas Corporation limited is a highly formalised structure with whole of it working
under the registered office at New Delhi where as the head quarter being at Dehradun. It follows
a hierarchical structure where decision flows from top to bottom and the data flows from bottom
to top.
The marketing and refinery decision regarding the organization is taken at Mumbai based offices.
Under the corporate office operations are strategically structured along the verticals :
1. Drilling offshore 5. Basins
2. Pipelines 6. Assets
3. Procurements 7. Plants
4. R&D Centre
Each of these divisions have a different organisation structure specific to their own functions. For
e.g., the R&D center is not as diversified as other divisions and therefore has fewer number of
departments and offices across the country. Drilling offshore follows a tall structure whereas
Pipelines and procurement follow the divisional structure.The marketing division located at
Mumbai co-ordinates with the regional offices i.e., North, South, East and West, other divisional
offices for decisions regarding investments and new projects. The regional offices coordinate with
respective state offices that in turn co-ordinate with respective location offices.
ONGC Head Quarter:

Dehradun
Registered office: Delhi
Offices: Mumbai, Kolkata,
Bhubaneshwar, Chennai [1]
The Company has the following ASSETS /PLANTS/ BASINS/ REGIONS/ SERVICES [2]
ASSETS/ PLANTS BASINS REGIONS SERVICES

Sr no.
1 Mumbai High Asset, Western Offshore Mumbai Region, Chief Drilling Services,
Mumbai Basin, Mumbai Mumbai Mumbai
2 Neelam & Heera Asset, Western Onshore Western Region, Chief Well Services,
Mumbai Basin Vadodara Baroda Mumbai
3 Bassein & Satellite KG Basin, Eastern Region, Chief Geo- Physical
Asset, Mumbai Rajamundry Nazira Services, Dehradun
4 Uran Plant, Uran Cauvery Basin , Southern Region, Chief Logging Services,
Chennai Chennai Baroda
5 Hazira Plant, Hazira Assam & Assam- Central Region, Chief Engineering
Arakan Basin Kolkata Services, Mumbai
6 Ahmedabad Asset, CBM- BPM Basin , Chief Offshore Logistics,
Ahmedabad Kolkata Mumbai
7 Ankleshwar Asset, Frontier Basin , Chief Technical Services,
Mehsana Dehradun Mumbai
8 Mehsana Asset, Chief Info-com Services,
Mehsana New Delhi
9 Rajamundry Asset, Chief Corporate Planning,
Rajamundry New Delhi
10 Karaikal Asset, Karaikal Chief Human Resource
Development, Dehradun
11 Assam Asset, Nazira Chief Employee Relations,
Dehradun
12 Tripura Asset, Agartala Chief Security, Dehradun
The below chart represents the organizational chart depicting the divisional,
functional and territory based structure of O.N.G.C. [3]
CONCLUSION
Oil and Natural gas Corporation limited has highly job specialized but cross cultured approach of
working having knowledge about both the world. Worker have very high incentives and company
take efforts to keep the worker happy. Coming to the point about behavioral formalization the
company is neither highly formalized nor is formalized to the least but is moderately formalized.
The next dimension of organizational structure talks about the centralization or decentralization of
the organization. O.N.G.C. is a P.S.U. so the organization is highly vertically decentralized and
the authority is top to bottom. The organization is not only vertically decentralized but horizontally
decentralized too. The decision making is done taking into consideration of all the heads and not
any particular individual.
Any organization requires a clear & well-defined organization structure for the many arms and
legs of the organization to function in harmony. There are different types of organization
structures, each having its own advantages and disadvantages. A company may choose one of
those structures or customize one for itself. But even a customized one will fall into one of the
broad categories.
The organization structure of Indian Oil is a dynamic one which is revised at regular intervals to
increase efficiency of the organization and is a good example of unity in diversity. All the division
of Indian Oil have a common agenda, vision and mission but their way of approaching them
slightly differs from each other. Each division- Refineries, Marketing, Pipelines, R&D and Assam
Oil Division, have different yet somewhat similar organization structure. For e.g. Refineries
follows a tall structure whereas Pipelines and Marketing follow the divisional structure. At the
same time, the other two divisions have a relatively flatter structure. But the type of departments
and hierarchy in each is similar along with the regional classification of the divisions.The hierarchy
followed in Indian Oil is almost similar in every department across all divisions. A few engineering
departments have some special posts for technical jobs. The Board of Directors are above the
hierarchy order and are nominated to the posts, not promoted.
References:
1. http://www.ongcindia.com/wps/wcm/connect/ongcindia/Home/Contact_Us/ONGC_Offices/
2.http://www.ongcindia.com/wps/wcm/connect/ongcindia/home/rti/information/particulars+of+its+organi
sation%2C+functions+and+duties
3. http://www.ongcindia.com/wps/wcm/connect/ongcindia/home/RTI/Information/

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ASSIGNMENT

What is 'Organizational Structure’ ?

The process of focusing one's occupational concentration on a specific area of expertise. An

Centralization, is the process by which the activities of an organization, particularly those

Formalization in organizational structure is a process in which managers specify (in writing),

OIL AND NATURAL GAS CORPORATION LIMITED IN BRIEF

Oil and Natural Gas Corporation Limited (ONGC) is an

1. Drilling offshore 5. Basins

ONGC Head Quarter:

ASSETS/ PLANTS BASINS REGIONS SERVICES

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