Structural Transformation at ONGC
Since its inception, ONGC has been instrumental in transforming the country's limited upstream sector into a large viable playing field, with its activities spread throughout India and significantly in overseas territories.
The 1990s had begun on a grim note for ONGC. It took almost a decade for the Corporation to sort things out in most uncertain of times.
Among many problems, the Corporation was also suffering from the organisational atrophy. In order to survive ONGC sought help from Mc Kinsey.
Mc Kinsey's mandate was to evolve an organisational structure that was far more responsive to its business needs than that based on business groups. The ONGC system run by functional heads often meant delays exceeding a year in matters requiring urgent decisions on fields. Also, since responsibilities were shared at production platforms between different business groups, the system degenerated into wrangling over responsibilities. Similarly, group loyalties often took precedence over the requirements of tasks. But, most importantly, it was found that the performance evaluation criteria based on business group yardstick were completely at loggerheads with requirements on fields. Mc Kinsey recommended an asset based approach with clearly-defined responsibilities in its presentation titled ‘Organisation Transformation Project’
Though Mc Kinsey recommendations were broadly accepted, coordination issues concerning commonly-shared services needed to be sorted out.
Finally, the first control over all service personnel working with asset teams was vested in asset managers, on grounds that being responsible for the performance of their strategic business units they must rightfully exercise control over all personnel working with them. Even procurement powers were devolved. Finally, a new structure made up of 14 assets and 11 centralised services was rolled out.
The management function being explained in the passage is:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Organizing
Option (1) Directing — Incorrect. Directing guides and motivates people at work. The passage is about the structure of the organisation, not about leading people.
Option (2) Controlling — Incorrect. Controlling compares performance with standards. The word ‘control’ in the passage refers to authority over personnel, which is part of organising.
Option (3) Planning — Incorrect. Planning decides in advance what to do. The passage describes how the work and authority were arranged.
Option (4) Organizing — Correct. Organising means grouping activities, assigning duties and establishing authority relationships. ONGC regrouped its work into 14 assets and 11 centralised services, gave asset managers control over all personnel working with them, and passed down procurement powers. All of this is organising.
Note: The passage is the NCERT case study ‘Structural Transformation at ONGC’, which has been reproduced by NTA in the exam. NCERT (2026-27 Edition): “Structural Transformation at ONGC … Mc Kinsey’s mandate was to evolve an organisational structure that was far more responsive to its business needs than that based on business groups. The ONGC system run by functional heads often meant delays exceeding a year in matters requiring urgent decisions on fields. Also, since responsibilities were shared at production platforms between different business groups, the system degenerated into wrangling over responsibilities. Similarly, group loyalties often took precedence over the requirements of tasks. …” “Meaning … Organising essentially implies a process which coordinates human efforts, assembles resources and integrates both into a unified whole to be utilised for achieving specified objectives.” |