CHRIST UNIVERSITY INSTITUTE

OF MANAGEMENT

AN ORGANISATIONAL STUDY AT
CHENNAI PETROLEUM CORPORATIONS LIMITED
FOR THE PARTIAL FULFILLMENT OF THE MBA
DEGREE

Sandhya.S
Reg no. 1020154

Submitted to,
Prof. Uma Sharma
 PREFACE

With respect to the allotted period, I had the privilege of having a

formal relationship with the organization as trainee but informally it is
a sacred place for me as it is my first practiced exposure to a
manufacturing industry to know and get aware to an organizations
real practice, stressful environment. It was a great opportunity
extended to me with such a large organization. Since the duration of
my study was short in comparison to the monolithic level of
functioning in the organization, so it seemed difficult to cover each
and every aspect in detail. But i have tried my level best to see all
important aspects related to my study. This study gave me a practical
exposure of how an organization functions in any kind of environment
and how its employees are oriented towards attaining the goal.
 ACKNOWLEDGEMENT

It gives me immense pleasure and sense of accomplishment in

presenting my project report on “A report on organizational study in
Chennai Petroleum Corporation Ltd.”as a partial fulfilment for the
requirement of MBA.
No task however small can be completed without proper guidance
and encouragement. This acknowledgement transcends the reality of
formality, hence I would like to express my deep gratitude to all those
behind the scene who have helped me to transfer the idea into a
working project.
I extend my heartful thanks to Mr.Sankaranarayanan,company
secretary,Mr.,HRD manager,and MR.Ravindran,Asst.
Manager,Pricing department CPCL for giving this opportunity.
I also thank the entire staff of CPCL for their valuable support and
guidance.
I would also like to thank my parents for being supportive in all ways
and encouraging me to complete my work within the stipulated time.
I would like to thank god almighty for providing me with so many
opportunities and being with me in all I do.
 CONTENTS

CHAPTERS TOPIC

INTRODUCTION
 INDUSTRY
I
OVERVIEW
 COMPANY PROFILE

COMPANY OVERVIEW
 ORIGIN OF THE
II
ORGANIZATION
 FUNCTIONS
 PRODUCT LINE

III DEPARTMENTAL STRUCTURE

SWOT ANALYSIS
 PROBLEM DEFINITION
IV
 SUGGESTIONS
 LEARNINGS

CHAPTER-I
INTRODUCTION

INDUSTRY OVERVIEW:

Petroleum Industry is considered to be the back bone of an economy, because

this is the main source of energy till date. Any economy around the world would fail to
precede a single step in the absence of Petroleum Industry.
Thus, before using this energy source, the crude petroleum is required to be refined in
the petroleum refineries for extracting various fractions for energy generation namely,
petrol, natural gas, kerosene, asphalt and many more.

The petroleum industry includes the global processes of exploration, extraction,

refining, transporting (often by oil tankers and pipelines), and marketing petroleum
products. The largest volume products of the industry are fuel oil and gasoline (petrol).
Petroleum is also the raw material for many chemical products, including
pharmaceuticals, solvents, fertilizers, pesticides, and plastics. The industry is usually
divided into three major components: upstream, midstream and downstream. Midstream
operations are usually included in the downstream category. Basically

1) The "upstream" comprises of exploration and production

2) The "midstream" are the tankers and pipelines that carry crude oil to refineries,
and

3) The "downstream" that includes refining, marketing, and distribution, right

down to the corner gasoline station or convenient store.

A company that includes together significant upstream and downstream activities is said
to be "integrated".

Chennai Petroleum Corporations Limited is an integrated company containing all the

three activities of upstream, midstream and downstream. Also it works as the subsidiary
company of Indian Oil Corporations.

COMPANY PROFILE
 Chennai Petroleum Corporation Limited (CPCL) is a world class Refining
Company with dominant presence in South India. CPCL, formerly known as Madras
Refineries Limited (MRL), was formed in 1965 as a joint venture between the
Government of India (GOI), AMOCO and National Iranian Oil Company (NIOC) having a
share holding in the ratio 74%: 13%: 13% respectively. Subsequent to AMOCO’s and
GOI’s disinvestment in 1985 and 2001 respectively, CPCL became a group company of
Indian Oil Corporation Limited (IOCL). Later, as a part of the restructuring, Indian Oil
acquired equity from GOI in 2000-01.Currently IOC holds 51.88% while NIOC continued
its holding at 15.40%.

At CPCL, surpassing their own standards of excellence has been a consistently

occurring phenomenon. A humble journey started with a refining capacity of 2.5 MMTPA
has now grown to be the largest refining company of South India.

As part of the MoU signed with Indian Oil Corporation for the year 2008-09, CPCL would
strive:

 To maximise the profit and return on capital employed of the company

 To optimise utilisation of the Refining capacity at Manali and at Cauvery Basin,
including selection of appropriate Crude mix and production of Value Added
products.
 To maximise the yield of distillates in order to improve the Gross Margin.
 To develop energy improvements schemes and reduce energy consumption and
losses in the refinery.
 To synergise marketing infrastructure, capabilities and strategies with that of IOC
in order to maximize profits.
 To move towards international standards of excellence in Refinery operations
 To strengthen information systems and information technology.
 To continue efforts towards safety achievement and environmental protection.
 To ensure execution of projects without time or cost overrun.
 To focus training efforts on team building, creation of competitive mind-set and
refinery economics.
 To maintain reliability of operations at high level.

VISION:
 Chennai Petroleum Corporation will be a world class Energy Company, well
respected and consistently profitable, with a dominant presence in South India.

MISSION:

To maximize profit through the manufacturing and supply of petroleum products

and other related business in a reliable, ethical and socially responsible manner.

STRATEGIES:

CPCL’s strategy is its usage of modern technologies that certainly benefiting the
Petroleum giant in many ways.

CHAPTER-II
HISTORY:

Manali Muthukrishna Mudaliar, Dubashi and philanthropist was patron for Saint
Composers Thyagaiya, Muthuswami Dikshitar and Arunachala Kavirayar. The lands of
this Mudaliar family, whose progeny emerged as statesmen in the Twentieth Century,
were acquired nearly two centuries later, in the 1960s, for setting up a refinery complex
of Chennai Petroleum Corporation Limited (CPCL, the erstwhile Madras Refineries Ltd -
MRL). CPCL was formed as a joint venture of Govt of India (GoI), Amoco India Inc, a
wholly owned subsidiary of Amoco of USA, and National Iranian Oil Company (NIOC) of
Iran. Amoco and NIOC had pre-existing business relationship in Iran.

JOINT VENTURE OF INDIA, USA AND IRAN

The Indian Cabinet approved the establishment of CPCL on November 4, 1964.

A Memorandum of Agreement was signed by the joint venture partners on March 21,
1965. A Founders' Committee was formed on April 24, 1965. The long-term contract for
sourcing crude oil for 42 million tonnes over a twenty year period to the new company
was concluded on November 18, 1965, which provided a long six month credit for supply
of Darius crude or any other crude by Govt of Iran. Amoco and NIOC shared equally the
Darius field discovered in 1961 in Iran. The Darius crude was fairly heavy lube and
asphalt- bearing and contained high Sulphur. On the same day, the Formation
Agreement consistent with the Memorandum of Agreement was signed spelling out the
objectives of setting up the refinery at Manali near Chennai. The Founders' Committee
awarded a Process Design Contract to Engineers India Ltd. The Govt. of India agreed to
enter into an agreement with the Company to purchase, either directly or through its
nominee, all the products produced by the refinery. A public limited company named
Madras Refineries Limited (MRL) was incorporated and registered on December 30,
1965 for the purpose of establishing, owning and operating a Petroleum Refinery, and
selling Petroleum products. The company was formed as a Govt. company, limited by
shares under the Companies Act, 1956, in accordance with the Formation Agreement.
The Authorised Share Capital was Rs 16.30 crore and the initial equity contribution
between the joint venture partners was GoI - 74 %, Amoco India Inc - 13%, and NIOC -
13%. The first meeting of the Board of Directors was held on February 4, 1966. The
company, Amoco and NIOC, executed a Technical Assistance Agreement which outlined
that Amoco and NIOC would provide technical assistance on Design, Construction,
Operation of the petroleum refinery and training the Company's employees of Indian
origin on refinery management and operation. An agreement was signed with EIL on
February 16, 1966 for Engineering Management Services. The Company was to
minimise the transportation cost of the crude, giving preference to Indian Flag Tankers, if
found competitive. CPCL's refinery was designed to process 2.5 Million Metric Tonnes
Per Annum of high sulphur, lube and asphaltbearing Darius crude from Iran. The
acquisition of 366 acres of land was completed on April 1, 1966.

MOTHER PLANT, turning the first sod at the ground

The Prime Minister of India Smt. Indira Gandhi performed the groundbreaking by
turning the first sod of earth on January 6, 1967 in a grand function. She referred to
CPCL as a "Mother Plant" during her inaugural address and envisioned that “at a later
stage, this refinery like others will also probably be in a position to support considerable
number of downstream projects.” M/s. Indian Oil Corporation Ltd was appointed the sole
selling agent for CPCL's products. Also, GoI nominated M/s. Shipping Corporation of
India as the agency for transporting crude oil by chartering of tankers. The construction
of the refining facility commenced in February 1967 and completed in a record time of 27
months. The project was completed at a cost of Rs 43.01 crore, well within the
sanctioned budget of Rs 44.38 crore.
Relentless follow-up, fierce monitoring of the progress as also the focus on costs are
some of the factors for successful and early commissioning of the plant. The first
Managing Director and later Chairman and Managing Director Shri M. Rama Brahmam
was empowered to even draw Foreign Exchange for the project implementation from the
custodian First National City Bank. The refinery was formally Inaugurated by Shri V.V.
Giri, His Excellency, the President of India, on September 27, 1969 in a spectacular
function.

FUNCTIONS:

CPCL plays the role of a Mother Industry supplying feed stocks to the
neighboring industries in Manali. CPCL’s products are marketed through IOCL. CPCL’s
products are mostly consumed domestically except Naphtha, Fuel Oil and Lubes which
are partly exported.

CPCL has also made pioneering efforts in the field of Energy and Water Conservation by
setting up a Wind Farm and Sewage Reclamation and Sea Water Desalination Plants.
The main products of the company are LPG, Motor Spirit, Superior Kerosene, Aviation
Turbine Fuel, High Speed Diesel, Naphtha, Bitumen, Lube Base Stocks, Paraffin Wax,
Fuel Oil, Hexane and Petrochemical feed stocks.

CPCL has a Wax plant having an installed capacity of 30,000 tonnes per annum, which
is producing paraffin wax for manufacture of candle wax, waterproof formulations and
match wax. It also has a Propylene Plant with a capacity of 30,000 tonnes per annum to
supply petrochemical feedstock to neighboring downstream industries. CPCL also
supplies LABFS to a downstream unit for manufacture of Liner Alkyl Benzene.

CPCL has two refineries with a combined refining capacity of 10.5 Million Tonnes Per
Annum (MMTPA).

 The Manali Refinery has a capacity of 9.5 MMTPA and is one of the most
complex Refineries in India with Fuel, Lube, Wax and Petrochemical feedstock’s
production facilities.
 The Cauvery Basin at Nagapattinam has a capacity of 1.0MMTPA.

For years, Chennai Petroleum Corporation's mini refinery — the 0.5 million tonne
Cauvery Basin Refinery (CBR) — has been operating at a level far below capacity, for
want of crude oil .But now that the Karaikal port has come up, CPCL is working on
putting up a pipeline linking the port to a point on the company's existing pipeline, just a
kilometer away.
Once this infrastructure comes up, CPCL will be able to bring crude oil from the prolific
Krishna-Godavari Basin to the CBR. Meanwhile, CPCL processed an additional million
tonnes of crude this April, as its Rs 150-crore project for raising the capacity of the
refinery by de-bottlenecking.

Post expansion, CPCL's Manali complex will have a capacity to process 10.5 million
tonnes of crude a year. The expansion comes in handy as the company is a few months
short of completing a Rs 2,615-crore project to upgrade the auto fuels it produces to
Euro IV standards.

CPCL bought three parcels totaling 1.5 lakh tonnes of crude oil from Reliance Industries'
MA field in the Eastern offshore gas-rich KG-D6 block in 2009-10.
The lay-out of the units of the refinery was such that it was in the shape of a horse shoe,
thus leading to heat integration of the process streams, resulting in energy saving. Crude
Oil for the refinery was received from the Chennai Port by a 30” Pipeline. Water was
supplied by the State Government from deep bore wells of nearby village of Minjur. As
there was no housing colony, all the employees commuted to work. CPCL's refinery was
the first in India to have:
 Integrated configuration of process units
 Hydrogen Plant
 Hydrodesulphurization units for Naphtha, Kerosene, High Speed Diesel and
Vacuum Distillates
 Thermal Cracker
 Sulphur Recovery Unit
 Biturox for Bitumen
 Dispatch from a separate terminal
 Integrated Air Pre-heater in the main crude furnace/utility boilers.

The Manali Refinery was the first refinery in India to implement several important
energy conservation Measures like retro-fitting air pre-heater in the main crude
furnace and utility boilers. First Refinery in India to have a Sulphur Recovery Plant
since 1969

PRODUCT LINE:

PRODUCTS AND SERVICES:

 FUEL PRODUCTS

 Liquefied petroleum gas(LPG)

 Motor spirit(MS 0.25% sulphur-non-metro)
 Motor spirit(MS 0.05% sulphur-metro)
 Motor spirit(MS Extra premium grade
 Superior kerosene oil(SKO)
 High speed diesel( HSDD 0.25% sulphur-non- metro)
 High speed diesel(HSD 0.05% sulphur, metro)
 Aviation turbine fuel(ATF)
 Furnace oil
  LSHS
 Light diesel oil(LDO)

 SPECIALITIES

 Naphtha(non-fertiliser)
 Bitumen 80/100
 Bitumen 60/70
 Bitumen 30/40
 Extracts-light
 Extracts-heavy
 Lube base oil SN 70
 Lube base oil SN 150
 Lube base oil SN 400
 Lube base oil BS 150
 Lube base oil SN 850
 Lube base oil SN 500
 Lube base oil -LVI(TOFS)
 CRMB-60
 CRMB-55

CPCL directly supplies the following feed-stocks to neighboring companies at Manali,

Chennai

 Naphtha
 Propylene
 Polybutyne feed-stock
 Butene
 LAB feed-stock

In addition, CPCL markets the following products to retail customers directly by adopting
a single window concept:

 Food Grane Hexane

 Extracts - Light
 Sulphur
 BN grade Slack Wax
  Paraffin wax - type-II
 Paraffin wax - type-IIA

These products are used in fertilizer industries, industries manufacturing cement,

paint etc. Products like Naphtha, propylene can be used for manufacturing
fertilizers. Paraffin wax is in the industries that manufacture candles and
matchsticks. Extracts and the lube base oil are used in the same kind of
industries of distilling purposes.

FUTURE PLANS FOR GROWTH OF THE ORGANIZATION

 RESID UPGRADATION PROJECT:

To improve the distillate yield of Manali refinery, Resid Upgradation Prject has been
considered. CPCL has undertaken preparation of DFR and pre-project activities like
selection of licensor, preparation of process packages, Environmental studies, etc. On
establishing the economic viability of the project, the implementation of Resid
Upgradation Project will be taken up and is expected to be completed by middle 2013.

 SINGLE POINT MOORING:

CPCL proposes to install a Single Point Mooring (SPM) System off Ennore Port for
import of crude oil through VLCC tankers (upto 300,000 DWT) to meet the requirements
of Manali refinery. The SPM would be located approx. 7 KM off-shore where the water
depth of 30 meters is available. CPCL awaits the confirmation of the crude oil wharf age
and lease rental for land and ROW for the pipeline laying within Ennore Port.
The Pre-project activities comprising of Geo-physical survey, pipeline route survey and
Marine Geo-tech survey have been completed. Geo-physical survey for the off-shore
portion has been completed and Off-shore EIA report being prepared, based on Terms
of Reference approved by Ministry of Environment & Forest. The pipeline route survey
from Ennore Port to Manali refinery has also been completed and the final alignment
drawing is awaited.
The tendering for appointment of Consultant for the Off-shore and On-shore activities
(Detailed Feasibility Report preparation and Engineering Procurement Construction
Management Services) is in the final stages and will be awarded shortly. The entire SPM
project along with Crude Oil Tank terminal and cross country pipeline from Ennore Port
to Manali Refinery is expected to cost approx. Rs. 850 Crores and is slated for
completion by third quarter 2011.

 CONTAINER FREIGHT STATION/MULTI MODAL HUB:

It is proposed to set up Container Freight Station / Multi Modal Hub at Chennai in the
surplus land available with CPCL as a JV with Balmer Lawrie. An Expression of Interest
was signed on18.3.2009 with Balmer Lawrie.

 PROPYLENE UNIT EXPANSION:

To enhance Propylene production capacity of Manali refinery, a feasibility study has

been undertaken. The project will be implemented after establishing the economic
viability and marketing tie-up.
 CHAPTER-III
ORGANIZATION DESIGN AND STRUCTURE:
An organizational design is the process of aligning an organization’s structure to its
mission.

MD

DIRECTOR DIRECTOR DIRECTOR CHIEF COMP CM (PR)

(OPERATI (TECHNICAL) (FINANCE) VIGILANCE SEC
ONS) OFFICER

GM (MFG) GM (R&D) GM (FIN)

DGM (VIG)

GM (L&U) GM (PROJ) CM (IA)

GM (E&S) GM (HR)

GM (CBR)

GM(MAIN)
ABBREVATIONS:

GM-General Manager PP-Production Planning

CM-Chief Manager CC-Crude Cell

DGM-Deputy General Manager RBO-Refinery Business Optimization

MFG-Manufacturing TPM-Total Production Management

L&U-Logistics & Utilities ISO-InternationalStandard

Organization

CBR-Cauvery Basin Refinery

PE-Process Engineering

E&S-Engineering & Services

QC-Quality Control

MAINT-Maintenance
A&W-Administration & welfare

R&D-Research & Development

P&IR-Personnel &Industrial Relations

PROJ-Projects
OHS-Operational Health Service

CORP PLG-Corporate Planning

DLO-Delhi Liason Office

HR-Human Resource
P&U-Power & Utilities

FIN-Finance
OM&S-Oil Movement & Storage

IA-Internal Audit
ITS-Information Technology &
Systems
VIG-Vigilance
 F&S-Fire & Safety
PR-Public Relations

REF-Refineries

FUNCTIONS OF THE DEPARTMENTS:

OPERATIONS DEPARTMENT:

This department takes care of the operational activities of various other

departments under its supervision that includes departments like manufacturing, logistics
& utilities, engineering & services, Cauvery Basin Refinery and maintenance.

MANUFACTURING: This department takes care of the activities of Refining, Planning

for the Productions, Pricing and taking care of the Oil accounts, Shipping and Quality
Control.

LOGISTICS & UTILITIES: This department plays the lead role in controlling the activities
of various other departments that includes invoice cell, marketing/leasing, power &
utilities, oil movement & systems.

ENGINEERING & SERVICES: The services of this department include Information

Technology & Systems, Fire & Safety, Engineering & Inspection, Materials & contract
Cell.

CAUVERY BASIN REFINERY: This department is responsible for all the proceedings of
CBR. The production capacity and the activities of refining with respect to the Cauvery
Basin Refinery is taken care by this department.

MAINTENANCE: The maintenance department takes care of the onsite activities like the
maintenance of the refinery and all offsite activities.

TECHNICAL DEPARTMENT:

The technical department is responsible for the technical operations of various

departments that involve more technicality and core operations are taken care of. The
departments under this main head include Research & Development, Projects, corporate
planning and Human Resources.

RESEARCH AND DEVELOPMENT: The organization gives more importance to this

department as they are involved in various researches related to refining and producing
petroleum products in an efficient way and development of that measure to reality. The
various other departments in control of this R&D department are Development and
Corporate Planning.

PROJECTS: The proposal for a new project, approval and implementation of the same
is taken care by this department. All activities pertaining to projects are taken care by few
other departments like Engineering and Inspection, Implementation and Planning
Purchase and Control.

HUMAN RESOURCES: The department getting more attention from the organization
next to the R&D department is the Human Resources department as they value the
employee welfare and very much concerned about its employees. The various other
departments under HR is Administration & Welfare, Personnel & Industrial Relations,
Operational Health Service and the Delhi Liaison Office.

FINANCE DEPARTMENT:

The growth of an organization is analyzed only by the finance department and

any discrepancies in the activities of the department will affect the whole organization.
Since this is a public sector organization controlled by the central government, there is
less chances of any deviations from the prescribed set of rule and regulations that is to
be followed.

FINANCE AND INTERNAL AUDIT: As described earlier the financial analysis and
auditing of accounts is taken care by this department.

Other than these departments the vigilance department and the public relations
department play a significant role in effective functioning of the organization.
ORGANIZATIONAL DESIGN CONTEXT,FACTORS AND
APPROACH
CONTEXT:
The policies of modernization, support and promotion of the free market, and
economic globalization, are implying not only a high social cost, but are also cancelling
rights achieved through the struggles of the people and closing spaces of individual and
collective freedom that previously allowed the people to themselves resolve the
satisfaction of their basic needs.

Authoritarianism, the centralization of decision-making, and the abandonment by

organization of their responsibilities to society have been key factors of this
organizational design, which has provoked the growing, distancing between the
"development" project imposed by minority sectors linked to economic and political
powers, and the real world in which the majority of the world's inhabitants live.

FACTORS:

Although many things can affect the choice of an appropriate structure for an
organization, the following five factors are the most common: size, life cycle,
strategy, environment, and technology. Unlike any other manufacturing industries
these five factors are the building blocks for the CPCL’s organizational structure.

 SIZE

The larger an organization becomes, the more complicated its structure.

Likewise CPCL has developed a formal structure as well. Tasks are highly
specialized and detailed rules and guidelines dictate work procedures. Inter-
organizational communication flows primarily from superior to subordinate, and
hierarchical relationships serve as the foundation for authority, responsibility, and
control. The type of structure that develops will be one that provides the organization
with the ability to operate effectively. That's one reason that CPCL is often
mechanistic, designed to maximize specialization and improve efficiency.

 LIFE CYCLE:
 CPCL go through the following four stages in a lifecycle: birth, youth, midlife,
and maturity. Each stage has characteristics that have implications for the structure
of the firm.

 BIRTH : This is the stage where an organization has just started and is in the
process of developing products and reaching the customers and in the case
of CPCL its “birth” was in the year 1965,since it was its ”birth” stage it started
as a joint venture with two other companies.

 YOUTH : At this stage, the organization tries to expand itself and tries to find
hardcore customers and suppliers who could produce materials without any
hindrance. And as a part of restructuring, CPCL acquired equity from GOI
and NIOC for 51.88% and 15.40% respectively.

 MIDLIFE : During this stage of the life cycle,the organization will have loyal
customers and have the ability to acquire or get acquired by other
organizations and this will create a brand image and customers are already
aware of the organization and the products it produces. CPCL had
developed two refineries and have wax plant. CPCL has got a very good
brand image after its acquisition by IOC .

 MATURITY : This is the stage where the Organization reaches a level where
the customers are less interested in the organization and its products. But
CPCL needn’t have to go through this stage since its products
(petrochemicals) have become the basic necessity for the customers for their
livelihood.

Although an organization may proceed sequentially through all four stages, it does
not have to. An organization may skip a phase, or it may cycle back to an earlier
phase. An organization may even try to change its position in the life cycle by
changing its structure.

 STRATEGY
 How an organization is going to position itself in the market in terms of its
product is considered its strategy. CPCL always decides to be first on the market
with the newest and best product (differentiation strategy), and produces a products
already in the market more efficiently and more cost effectively (cost-leadership
strategy). Each of these strategies requires a structure that helps the organization
reach its objectives. In other words, the structure must fit the strategy.

 ENVIRONMENT

The environment is the world in which the organization operates, and includes
conditions that influence the organization such as economic, social-cultural, legal-
political, technological, and natural environment conditions. Environments are often
described as either stable or dynamic.

 In a stable environment, the customers' desires are well understood and

probably will remain consistent for a relatively long time. And CPCL operate in
such kind of an environment.

 In a dynamic environment, the customers' desires are continuously changing

—the opposite of a stable environment. This condition is often thought of as
turbulent. In addition, the technology that a company uses while in this
environment may need to be continuously improved and updated.

 TECHNOLOGY

Advances in technology are the most frequent cause of change in organizations

since they generally result in greater efficiency and lower costs for the firm.
Technology is the way tasks are accomplished using tools, equipment, techniques,
and human know-how.

CPCL uses technologies that are upto date and are planning to produce
LPG,Petroleum and Diesel from the residue or the waste products that they get during
refining.
 CHAPTER-IV

SWOT ANALYSIS

A SWOT analysis is a subjective assessment of data which is organized by the

SWOT format into a logical order that helps understanding, presentation, discussion and
decision-making
SWOT analysis also provides a structure for analyzing the strengths, weaknesses,
opportunities and threats a business or event faces. Ideally it is one step in a process
which helps an organization to

1. Appreciate the strengths of a situation and

2. Define the weaknesses, which should be minimized;
3. Make the most of the opportunities that present themselves, and
4. Recognize the possible threats and treat them in a planned and organized way.

SWOT analyses are not ends in themselves but a step before some action planning. The
analyses usually benefit from discussion, get other people’s perspectives.
DEFINING KPIs FOR KRAs:

Key Performance Indicators (KPI) are specific indicators of performance to

measure extent of achievement on set KRAs within a given time frame. Each
KRA corresponds to specific KPIs defined to quantify or verify the extent of
performance achievement in a given performance time frame. For each KRA selected
the Appraisee should select at least one KPI. In case of Special KRAs, s/he would define
a KPI.

 STRETCH

Stretch is defined as the degree of difficulty built into targets. A consistent

process for target setting ensures uniformity in degree of loading and stretch in targets
for individuals. The target setting process in PMS works on the following 5dimensions:

 Relative to previous achievements

 Degree of dependence on uncontrollable
 Degree of complexity
 Skill Requirements
 Need for innovations

 COMPETENCIES

Behavioral Competencies are defined as “Skills and abilities described in

behavioral terms that are coachable, observable, measurable, and critical to
organizational performance. Competencies form the foundation of “what” capabilities are
required for the successful execution of roles and responsibilities, thereby driving
functional, unit and organization performance”

Based on the varying demands of each role, competencies and their manifestation
degrees vary. Therefore, for each role, applicable competencies from this list & the
desired proficiency level for these have been identified and included in each unique role.
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KEY RESULT AREAS OF THE ORGANIZATION:

Key Result Areas (KRAs) are “Critical outcomes towards which effort
is directed to support achievement of desired business results”. Each KRA in a
role profile would fall in one of the following buckets
KEY RESULT ACTIVITIES

 VALUES
Following are the values which have been defined by the organization as essential to
display for Grades A-I:

 CARE
 Denotes Concern and Empathy
 Stands for Understanding, Cooperation and Empowerment
 Equally valid for internal and external stakeholders (caring for
employees/management, XTRACARE for customers)
 Demonstrable through concrete actions

 INNOVATION
 Reflects 'Creativity', ability to Learn (and absorb technology), Flexibility
 Encompasses 'Change'
 Holds good for both internal and external stakeholders (job enrichment,
 fulfillment of aspirations, resulting in new and better products & services for
customers)
 Demonstrable through concrete actions

 PASSION
 Stands for Commitment, Dedication, Pride, Inspiration, Ownership, Zeal
and Zest
 Valid for both internal and external stakeholders (Passion for achieving
Excellence, Commitment for our brands, services, etc.)
 Demonstrable through concrete actions

 TRUST
 Earned through delivered promises
 Denotes Reliability and Dependability
  Encompasses Integrity, Truthfulness & Transparency
 Reflects both an 'Offering' and an 'Expectation'
 Valid for internal & external stakeholders
 Demonstrable through concrete actions
 POTENTIAL

Following are the attributes which have been defined by the organization for Grades
A-F.

 GRADES ABC

 Adaptability to change
 Collaboration
 Cost Consciousness/Resource
 utilization
 Dependability
 Quality of Work /Output

 GRADES DEF

 Managing Change
 Boundary Management
 Entrepreneurship
 Commitment to total organization
 Enhancement of Quality and output

IDENTIFICATION OF PROBLEM

 Decision making was not quick,which involved long procedures to arrive at a

solution.
 The organizational structure is too complicated.
 Promotions were not given at a regular basis,a person with a minimum
graduation of BE will be promoted only upto a certain grade,and no further
promotions will take place in his career in the organization irrespective of his age.
  There are two trade unions in the organization,unlike other organizations,these
trade unions are formed on the basis of castes and problems mostly arise due to
these discriminations.

SUGGESTIONS:

The various sections in each department can be clubbed together to form groups
so that the complexities of the organizational structure can be removed. The promotions
were usually based on three categories

Qualification Experience Age

The person who have a good experience in the organization will be promoted only if he
has sufficient qualification irrespective of their age.on a whole the qualification is given
first preference. The odour of gas that which persists in the refinery could be taken care
of as the employees get breathing ailements.

LEARNINGS:

 This is my first hand experience in a manufacturing company, it helped me know

how an organization and its deparments operates.
 The employees were well disciplined and since therir roles and responsibilities
are pre defined,it functions in an organized way.
 They organization tries to be in touch with its ultimate end users by conducting
various events like sports day, republic day and providing education for children
living in manali area.
 The employee satisfaction level is upto the mark and they contribute to the fullest
for the organization.
 Though the decision making process takes much time,the managers work in
such a way that the production is not affected by any chance.
 There is a wide chance for growth and diversification.
 The trade union disputes arise due to the problems between employees with
regard to their castee.