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Iocl Project 1 1
Iocl Project 1 1
AT
Summer training.
I would like to express my deep gratitude to the Indian Oil Corporation Ltd
Heartfelt thanks to Mr. Anil Yadav for providing me with a pleasant training
were of great importance and I express my gratitude towards him for providing
me with such valuable information about the Indian Oil Corporation Ltd.
I would also like to thank Mr. Sunil Arora (Deputy Manager, C&M, NTPC, Noida)
to provide me with the valuable information about the NTPC which helped me in
making my project.
summer internship and help me adjust in the organization for these days.
ORGANIZATION·S
PROFILE
ORGANIZATION¶S PROFILE OF IOCL
1964 when Indian Refineries Ltd.(Estd. 1958) was merged with the company.
Indian Oil Corporation Ltd. is currently India's largest company by sales with
a turnover of Rs. 247,479 crore (US $59.22 billion), and profit of Rs. 6963
Indian Oil is also the highest ranked Indian company in the prestigious Fortune
'Global 500' listing, having moved up 19 places to the 116th position in 2008. It is
also the 18th largest petroleum company in the world. Indian Oil's vision is driven
by a group of dynamic leaders who have made it a name to reckon with.
In this section, you can peruse through the profile and spread of Indian Oil across
the country & abroad. You can also know about Indian Oil's current financial
performance, special initiatives and causes along with the prestigious recognitions
& awards that have come its way for exceptional performances.
the country, with its corporate office at New Delhi. It has three major division-
µMarketing with its head office at Mumbai. µRefineries¶ with the head ±office
at New Delhi, and Pipelines with head office at Noida. The R&D centre is
There are presently seven refineries namely Guwahati , Barauni , Gujrat , Haldia,
Mathura , Panipat and Assam Oil Division(AOD). The pipelines set-up functions
Similarly , marketing division operates through its four regions , North , South ,
East , and West. Indian Oil has two subsidiary companies, Chennai Petroleum
combined refining capacity of 9.35 MMTPA, thereby raising its total refining
capacity to 47.50 MMTPA, the highest in the country today. Indian Oil has the
length of 6,523 km and a capacity of 43.45 MMTPA. With sales of 47.17 million
metric tones in 2001-02, Indian Oil holds over 53% of the petroleum products
market share in India. Its extensive network of over 22,000 sales points is backed
for supplies by 182 bulk storage points and 78 Indane bottling plants. 92
Aviation Fuel Stations cater to the Aviation Industry, defence as well as civil.
The following are the salient features of IOCL:-
y Indian Oil is the highest ranked Indian company in the Fortune 'Global
500' list of companies.
y For the year 2005-06, the Indian Oil group sold 54.6 million Tonnes of
Petrolium products, including 2.09 million tones through exports.
y IOCL owns and operates the widest and the largest network of Petrol &
Diesel stations in the country (more than 15,000).
YEAR MILESTONES
1958 Indian Refineries Ltd. formed in August with Mr. Feroze Gandhi
as the Chairman.
1959 Indian Oil Company Ltd. established on 30th June 1959 with Mr.
S. Nijalingappa as the Chairman.
1960 Agreement for supply of Kerosene and Diesel signed with the then
USSR.
1964 Indian Refineries Ltd. merged with Indian Oil Company with
effect from 1st September, 1964, and Indian Oil Company
renamed as Indian Oil Corporation Ltd.
1970 Acquired 60% majority shares of IBP Co. Ltd. The same
was
offloaded in favour of the President of India in 1972.
1985 New office complex for Registered Office of the Corporation and
Head Office of Marketing Division in Mumbai completed.
Retail operations begins in Sri Lanka. Indian Oil becomes the first
Indian Petroleum Company to begin downstream marketing
operations in overseas market.
2005 Entry into E&P with the IndianOil-Oil India consortium signing
Exploration and Production Sharing Agreement with the National Oil
Corporation of Libya for a block in the Sirte basin of Libya.
2007 Marketing subsidiary IBP Co. Ltd. merged with parent company.
products.
y To avail of all viable opportunities, both national and global, arising out
opportunities overseas.
update skill sets for full exploitation of the new business opportunities.
and continuously engage across the hydrocarbon value chain for the
y To complete all planned projects within the scheduled time and approved
cost.
V ISION, MISSION,
V ALUES AND
OBLIGATIONS OF
IOCL
VISION OF IOCL
stakeholders.
Development.
conscience.
VALUES OF IOCL
y Creativity
y Ability to learn
y Flexibility
y Change
y Reliability
y Dependability
y Integrity
y Truthfulness
y Transparency
y Delivered promises
OBLIGATIONS OF IOCL
personnel policies.
production units.
emergency situations.
HUMAN RESOURCE
DEPARTMENT
OF
IOCL
HR DEPARTMENT OF IOCL
31.03.2002, of which 9,728 are in the Officers cadre and 21,947 are in the Staff
cadre. There are 5,672 employees from SC category and 2,097 from ST category.
There are 2,387 women employees, out of whom 692 are in the Officers carde and
1,695 in Staff cadre. The women employees constitute 7.54% of total employees¶
strength.
areas:-
the rules, to frame policies etc. The main sections of the personnel
(a) HRD:- This section looks after the manpower recruitment of the
etc.
(i) STAFFING:-
Manpower planning.
Determine the organizational structure and optimize
manpower to effectively meet Company¶s objective.
Job description.
Recruitment.
Personnel records.
Promotion.
Transfer.
(ii) PERSONNEL MAINTENANCE:-
Motivation.
Performance Appraisal.
Recreation.
Communication.
Employee amenities - canteen , clubs etc.
Safety.
Medical Services.
Security.
Productivity Bargaining.
Grievance Handling.
Discipline Administration.
Providing joint consultative machinery-Joint Management
Councils.
(v) COMPENSATION :-
P&A Departments at each unit shall provide assistance and counsel to other
Orgnising functions.
Apart from it, the Department also functions as Service Department to the
internal and external customers and provides necessary assistance on
general administrative, welfare and security matters to all the Refinery
Units including AOD, Kolkata and Mumbai offices as well as other
Departments at Headquarters.
(iii) The Department also renders assistance to Refinery Units and various
departments at the Headquarters in maintaining liaison with various
Ministries of the Government of India, Lok Sabha Secretariat etc.
(iv) The Department aims at achieving the highest level of efficiency and
productivity with utmost speed and accuracy.
FUNCTIONS OF ADMINISTRATION DEPARTMENT OF IOCL:-
Policy Matters :
(i) Delegation of Powers.
Legal Matters:
i) Providing assistance in processing of contracts and agreements.
ii) Land/Houses acquisition matters.
iii) Office Services Contracts.
iv) Bonds and Mortgage deeds.
iv) Lease agreements.
v) Liaison with Solicitors for obtaining legal advice.
General Administration:
(i) House keeping of office space.
(ii) Dak receipt, distribution and dispatch.
(iii) Domestic Rail and Air bookings.
(iv) Control of Staff/Hired Cars including maintenance.
(v) Transportation ± Hiring of Cars & Buses.
(vi) Photocopiers / Digital Document Centres / Fax Machines / Cellular
phones.
(vii) Office furniture and equipments.
(viii) Stationery and Stores.
(ix) International travel arrangement including Foreign exchange.
(x) Allotment of office space / residential accommodation.
(xi) Maintenance and Administration of Guest Houses.
(xii) Lodging arrangements for officers on tour.
(xiii) Communication Services maintenance.
Welfare Activities:
new hires, training and development of existing staff, and motivating and
management system falls apart, resulting in the total waste of the valuable human
task. The collected performance data are used to provide necessary skill training or
professional development.
In order for performance appraisal information to be useful, the PMS system must
be
able to consistently produce reliable and valid results. Measurement items in the
performance appraisal system must be designed in such a way that the results of
rating are consistent regardless of the raters and the timing of the assessment.
and ratees, because their reactions to the appraisal process are significantly
different depending on the intended purpose. Failure to inform about the purpose
or misleading information about the purpose may result in inaccurate and biased
appraisal reports.
able to consistently produce reliable and valid results. Measurement items in the
performance managemnt system must be designed in such a way that the results of
rating are consistent regardless of the raters and the timing of the assessment.
measurements. It is important to make sure that the appraisal items are really
measuring the intended performance or target behavior. If they are not, the PM
system encourages the wrong kind of work behaviors and produces unintended ,
encourages them to sit on a corner of a street and pull over as many violators as
possible during heavy traffic hours. The true purpose of a police force, which is
public safety, may become secondary to issuing a large number of tickets for many
officers.
➢ What to Evaluate?
(a) Traits :- Many employees are assessed according to their traits, such as
personality, aptitudes, attitudes, skills, and abilities. Traits are relatively easy
to assess once a rater gets to know ratees. But traits are not always directly
related to job per formance. Trait-based assessment lacks validity and thus
de
such cases, desirable behaviors can be identified and assessed in the belief
the workplace.
sales force, this approach is recommended. However, it has its own pitfalls.
There is a problem if employee behaviors are not directly related to the task
ignore many smaller buyers. This may result in poor customer service on the
floor.
➢ Who Evaluates?
employees' immediate supervisors, who are usually in the best position to know
and observe the employees' job performance. They are also responsible for
together over a long time with the same employees, the immediate supervisor may
build up a fixed impression about each employee and use it every time he or she
Some companies find that subordinates are in an excellent position to observe and
evaluate their managers' performance, especially when it comes to measuring
subordinates to evaluate how they are managed, such evaluation may turn into a
popularity contest. Accurate and objective assessment may not be obtained if
employees are fearful of possible retaliation from their supervisors. Anonymity of
the evaluators is key to the successful use of subordinates for objective evaluation.
Other raters who are frequently used in some companies include peers, customers,
Organization exist to attain certain goals and objectives through a effort. Some
facilitate the achievement of such goal. Control devices in the form of
professed objectives.
³Performance management system is systematic and objective way of judging
the relative
other familier with their performance because employers are interested in knowing
about employee performance. Employee also wishes to know their position in their
their assigned tasks well and those who are not and the reason for such
make up of one who is assessing the performance and having profound effect on
the individual who is being assessed. It is here that the weakness of human
judgement comes to the force. In the field of human behavior and performance, the
the basis of the appraisal can be subject to numerous drawbacks connected with
the perceptions one¶s own bias, the social prejudice, unconscious urges and the
sphere.
salary and wage determination, helping the employees know their achievements
and failures, training and development needs, promotions and transfer decisions
etc. Therefore, a good performance appraisal system should aim at facilitating the
financial rewards.
problem.
PURPOSE OF PERFORMANCE APPRAISAL:-
(2) It will stimulate employee participation in decision making affecting his own
(3) It will also help the management in rationalizing a job-oriented level of
productivity.
(5) Such appraisals can also serve as a guide in properly administering wage-and
salary administrations.
and the employee. This contract acts as a control and evaluating system,
Management development: -
Feedback :-
HR planning:-
Communication:-
degree performance appraisal in this the employees are also allowed the
tabular form:-
PERFORMANCE
MANAGEMENT
SYSTEM
AT IOCL
BRIEF ON PERFORMANCE APPRAISAL IN IOCL
transfer and promotion, and deciding about his training needs.The following
Assessment period
particular year has been separated before end assessment years are
Apraisee fills a form in the starting of financial year which includes targets to
be achieved by that particular employee. Then Appraiser and Appraisee discuss
Then they plan how to achieve these goals. On the basis of priority they decide
At the end of financial year, Appraisee evaluates himself and gives marks out of
5. Then Appraiser evaluates the Appraisee and gives him marks out of 5.
These 3 marks signify:
3- Outstanding
2- Average.
1- Needs improvement
performance.
each KPI.
objectives of organization.
COMPARATIV E
ANALYSIS BETWEEN
NTPC AND IOCL FOR
PERFORMANCE
APPRAISAL SYSTEM
COMPARATIVE ANALYSIS OF PERFORMANCE APPRAISAL
IN 2 PSUs(HIGHER LEVEL)
NTPC IOCL
(i) In the appraisal form the key (i) In the appraisal form activities
result areas are set by discussion & corresponding targets under
of both. each KPA are set.
(ii) Self-assessment & appraisal (ii) Self assessment & Appraisal
assessment are done side by side assessment are done side by side
helps in easy comparison. for easy comparision.
(iii) The constraints faced by the (iii) Self -analysis of appraise on his
appraise are not mentioned in performance considering the
the self appraisal form. unfavourable & informable
factors in self & the work
invironment are done.
(iv) Targets are set after mutual (iv) Targets are set after mutual
agreement by both the appraise agreement by both the appraise
& the appraiser. & the appraiser.
(v) The moderation committee does (v) A form of counseling session
final assessment on basis of that takes into accounts the
overall evaluation & potential strengths, weakness & areas of
assessment. improvement & the appraise do
this feedback.
(vi) Career profile & plan are not (vi) Career profile & plan that takes
considered. account of mobility and
constraints and career analysis.
(vii) Benefits to the organization by (vii) Contributions by the appraise,
the contribution of appraise are its benefits to the organization
not taken account of. are considered.
(viii) Overall assessment is done on (viii) Overall assessment is done by
average of & responses by appraiser, reviewing officer &
reporting reviewing, next higher the countersigning officer on the
authority & basis of his potential for growth.
Countersigning authority.
(ix) Don¶t consider the training (ix) Training needs are not
need & the job rotation. identified.
COMPARATIVE ANALYSIS OF PERFORMANE APPRAISAL
IN 2 PSUs(LOWER LEVEL)
NTPC IOCL
(1) Form consists of 4 parts. (1) Form consists of 6 parts.
y For Appraisee. y Annual Perf. Appraisal.
y For Appraiser/Rep. officer. y Perf. Highlights
y For reviewing officer and and
other higher authority. add.information.
y By Chairman of the y Overall appraisal.
moderation(counselling) y Career profile & Plan.
committee. y Councelling.
y General.
(2) Appraise is assessed by Reporting
Officer only on the basis of 4 factors (2) The appraise is assessed on the basis
viz. job knowledge,cost of attributes rated on a 3 point scale.
consciousness, initiative and No weightage is given to factors.
communication skill. Important factors
like leadership, quality and quantity of
work, adaptability, etc., have not
considered at all.Moreover the
assessment is comprehensive as
factors are not rated on a suitable
scale.
(3) Targets achieved and other (3) Targets achieved & extra contribution
achievements are considered but by the appraisee are also considered for
the difficulties faced or facilitating appraisal.
resources are ignored all together.
(4) Over all performance and potential (4) Over all performance & potential
of appraise are reassessed by of appraise are reassessed by
reviewing, reporting, next higher appraiser, reviewing officer & the
officer and countersigning officer. countersigning officer.
(5) No career profile and profile and (5) Career Profile & Plansheet allows
plan sheet. appraise to give his own choices for
future assignments i.e. it in a way
gives an opportunity to the appraise to
decide his KPAs.
(6) No comments are given by the
rating officers for their extreme (6) Any constraints faced by the appraise
ratings so doubts that appraise has in case of transfer, etc.,are also
can¶t be solved. considered so no employee is forced
to do a job which he/she might be
unable to do because of any reason.
Weaknesses:-
Opportunities :-
Threats:-
From all the above information with the help of which I have been able to make
system at IOCL has gradually developed over years at IOCL from hand written
e- PMS at the IOCL. This project also shows that the e-PMS policy at IOCL is of a
great importance for the IOCL itself and the employees of the IOCL. It is found
that during the e- PMS policy the employees are assessed on regular basis which
helps to keep a regular check on the employees and by the performance appraisal
methods the employees are assessed only at the end of year which helps them to
complete their goals at last minute time also. I also want to tell that the employees
had a difficulty when this method was introduced in the organization to adapt this
method but later on it made work easy for them as more and more handy records
are not maintained .i would also like to come to the point that the performance
management system at IOCL is transparent and clears all the problem of HR
department. Its more sinple to understand the working environment of IOCL than
NTPC because the self assessment procedure of IOCL specifies all the
It is also seen by the comparison made between IOCL and NTPC that both the
Organizations have similar work environment but IOCL is providing with the
Employees more career oriented work environment which help employees to grow
and perform more tasks as compared to the NTPC. The NTPC rate their employees
on the basis of 4 factors while the IOCL rate their employees on a 3 point scale
which is more easy to understand and rate the performance of each employee on a
similar basis. As the working environment of NTPC says that no career plans are
made by the employees even they are not allowed to make, IOCL contradicts this
activity of NTPC by allowing their employees to make career oriented plans and
plans which are helpful in future so that they provide with employees more vscope
to grow. One more point of difference between IOCL and NTPC is that IOCL
provides their employees with some workshops, training and counsellings which
help them to grow whereas NTPC does not conduct any. By the swot analysis we
like wide field network , low cost of production and many more still there are some
threats to the PSU like emergence of more and more big companies like Reliance
ltd and lesser share in market but overall IOCL is still the biggest and most