The Reward System at Oil Gas

Summary

Oil Gas (OG) is the biggest company in Greece with a turnover of over $ 1 billion and about 3,000 employees. It owns one of the biggest and most complete oil refineries in Europe. The company belongs to the Paravas family. Their conglomerate includes: a distribution company for oil products, a small refinery for recycling of lube oils, a big fleet of about 100 tanker ships, one small bank and one of the most well-known Greek soccer teams.

The management structure of the company was very hierarchical and bureaucratic with little tolerance for mistakes. The company’s value system was built around the notions of discipline and commitment.

The case discusses the company’s reward system. The company followed an informal approach. The criteria were unknown and the decisions were based upon the subjective judgements of top managers. Rewards were in the form of bonuses, salary increases, promotions, excursions and non-cash perks.