STUDY ON THE ORGANIZATIONAL STRUCTURE OF INDIAN OIL (Pipelines Head
Office)
Submitted
By
AKSHITA
AKHIL
Under the guidance of
Mrs.
Y. Archana
Chief Manager –
Training & Development
Indian Oil
Corporation Limited
&
Prof. Jobin Jacob
Head – Placements and
Corporate Relations
Christ Institute of
Management, Lavasa
_____________________________________________________________
ACKNOWLEDGEMENTS
This project, though an individual project, wouldn’t
have been possible without the constant help and guidance of a few individuals
whose support has been vital to the completion of the project.
At the outset, I would like to thank Mrs Y. Archana (Chief Manager –
T&D) for providing me the opportunity to do a project at Indian Oil
Corporation Limited.
This research project would not have been possible
without the support of many people. I wish to express my gratitude to my
supervisor, Mr. Abhishek Anurag, who was an abundantly helpful and offered
invaluable assistance, support and guidance. Deepest gratitude are also due to
the members of different departments who helped me get an all-round perspective
of the organizational structure of Indian Oil. They are:
Ms. Ritika Sahu (ACO-Finance)
Mr. K. Navin Sankaran (Manager- Planning &
Coordination)
Mr. S.M. Srivastava (Senior Materials Manager)
Mr. T. R. Chandramouli (HRD & Management
Services)
Mr. Rajat Goyal (Deputy Mangager- Administration)
Special thanks to all my graduate friends for
sharing the literature and invaluable assistance. Not forgetting to thank my
peers who have always been there.
I would also like to convey my thanks to my mentor
and college faculty, Prof. Jobin Jacob.
And finally I wish to express my love and gratitude
to my beloved family; for their understanding & endless love through the
duration of my internship.
TABLE OF CONTENTS
|
SR. NO.
|
PARTICULARS
|
PAGE NO.
|
|
1.
|
ABSTRACT
|
5
|
|
2.
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OBJECTIVES
OF THE STUDY
|
6
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3.
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METHODOLOGY
|
6
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4.
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INTRODUCTION
|
7
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5.
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ORGANIZATION
DESIGN AND STRUCTURE
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13
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6.
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FUNCTIONS
OF DEPARTMENTS AND MANAGERS AND HIERARCHY
|
20
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7.
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SYSTEM
OF ACCOUNTING FOLLOWED
|
28
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8.
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PRODUCT
PROMOTIONAL MEASURES
|
31
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9.
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CAREER
PLANNING & PROMOTION POLICY
|
33
|
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10.
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TRAINING
MEASURES
|
34
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11.
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SYSTEM
FOLLOWED FOR PURCHASE OF MATERIALS
|
36
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12.
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HRD
MEASURES
|
36
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13.
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MANPOWER
PLANNING
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38
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14.
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PERFORMANCE
APPRAISAL SYSTEM
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38
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15.
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SWOT
ANALYSIS
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39
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16.
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CONCLUSION
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40
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17.
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SUGGESTIONS
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41
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18.
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LEARNINGS
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41
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19.
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LIMITAIONS
& FUTURE SCOPE
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41
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20.
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REFERENCES
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41
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Abstract
This is an internship report based on my internship
at Indian Oil which spanned for a total of 15 days from 15th
March-31st March 2016. The topic under study is the organization structure of Indian Oil.
An organization is an organized group of people with
a particular purpose, such as a business or government department. An
organizational structure is a system used to define a hierarchy within an
organization. It defines each job, its function and where it reports to within
the organization. It is essential that every management student undergoes
organizational structure training to learn the organization structure and
hierarchy in a better way. This will lay the foundation of upcoming management
programme. It is even more crucial for a company to provide guidance and
clarity on specific HR issues such as managerial authority. Having a good
understanding of the organization structure of a company helps in utilizing the
given resources in a better way to increase the efficiency of the employer and
the employee alike.
Indian Oil Corporation Limited has been a part of my
growing up from participating in painting and dance competitions in the younger
years to receiving certificate for academic excellence in 10th standard. It was
my love for the paramount oil organization of India that made me instantly want
to be an intern there and learn about how the company manages & cares for
each and every employee.
IOCL is the world's 119th largest corporation
according to the Fortune Global 500 list and studying the organizational
structure of such a company will definitely give me an understanding on how an
organization functions with harmonious balance and coordinates with its
different branches to achieve a common goal. It will give me an insight on the
importance of organizational structure in a company and will give my learning
the advantage of having a practical edge.
The study has been conducted based majorly on
secondary data sources. Special attention has been given to see that the source
is credible so that there are no discrepancies in that data and the results are
as accurate as possible. For this purpose, company manuals and reports have
been utilised.
The organization structure
at Indian Oil 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.
OBJECTIVES OF THE STUDY
·
To get
exposure of the actual working environment within a public sector unit.
·
To understand
what an organization structure is and its significance in an organization.
·
To thoroughly
understand the Organization Structure related to Indian Oil.
·
To learn about
the hierarchy in Indian Oil.
·
To study and
analyse all the details of Organization Structure in Indian Oil.
METHODOLOGY
The study conducted is investigative
in nature that is to say it probes into the organization structure and
hierarchy of Indian Oil figuring out its major functions with the help of
secondary sources of data available from the department itself.
The major parameters of the methodology
include:
·
Data
Collection (Balance Sheet, Telephone Directory, Company Manuals, Internship
Reports)
·
Analysing and
interpreting the information available in the Company Manuals and other sources
and drawing meaningful conclusions from them.
·
Brainstorming
with the personnel in various departments to better understand the Organization
Structure.
INTRODUCTION
The Company was incorporated on 30th June 1959,
under the name and style of the Indian Oil Company, Ltd. With a view to
coordinating the activities of the Indian Refineries, Ltd., and Indian Oil
Company, Ltd., the two were amalgamated on 1st September, 1964, to form a new
corporation, the Indian Oil Corporation Ltd. In 1960 Indian Refineries, Ltd.,
was merged with the Company. The capital after amalgamation was Rs 34,97,25,000.
In November 1962, the Corporation signed an agreement with Mobil Petroleum Co.,
Ltd., New York, for setting up of two blending plants in Calcutta and Mumbai.
Vision
Indian Oil nurtures the
core values of Care, Innovation, Passion and Trust across the organization in
order to deliver value to its stakeholders.
Objectives:
·
To
serve the national interests in the oil and related sectors in accordance and
consistent with Government policies.
·
To
ensure and maintain continuous and smooth supplies of petroleum products by way
of crude refining, transportation and marketing activities and to provide
appropriate assistance to the consumer to conserve and use petroleum products
efficiently.
·
To
earn a reasonable rate of interest on investment.
·
To
work towards the achievement
of self-sufficiency in the field of oil refining by
setting up adequate capacity and to build up expertise in laying of crude and
petroleum product pipelines.
·
To
create a strong research and development base in the field of oil refining and
stimulate the development of new product formulations with a view to
minimise/eliminate their imports and to have next generation products.
·
To
maximise utilisation of the existing facilities in order to improve efficiency
and increase productivity.
·
To
optimise utilisation of its refining capacity and maximise distillate yield
from refining of crude to minimise foreign exchange outflow.
·
To
minimise fuel consumption in refineries and stock losses in marketing
operations to effect energy conservation.
·
To
further enhance distribution network for providing assured service to customers
throughout the country through expansion of reseller network as per Marketing
Plan/Government approval.
·
To
avail of all viable opportunities, both national and global, arising out of the
liberalisation policies being pursued by the Government of India.
·
To
achieve higher growth through integration, mergers,
acquisitions and diversification by harnessing new business opportunities like
petrochemicals, power, lube business, consultancy abroad and exploration &
production.
What is an organisation?
An organisation is a collectivity set up to pursue
specific purposes by means of a formal structure. There can be endless
varieties of organisations by combining different purposes with different
structures. 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.
Organisational structure
It is the formal or quasi-formal network of
reporting or control relationships in an organisation and the powers and duties
associated with each role in this network. There are various hallmarks of an
organisational structure which are the basics like hierarchy of authority,
division of labour, specialization by function and role specialization. An
organisation gets more formalised and complex as the organisation matures and
increases in size.
There are various forms of organisational structure
on the basis of hierarchy:-
·
primitive/simple structure:
In this structure, there is a higher authority and
various subordinated to do his/her bidding.
This structure facilitates great flexibility since
there is no formal specialization by function. But there is low level of
expertise and efficiency. This is the starting point of young organisations.
·
functional structure
As
the organisation grows, greater role and functional specialization sets in and
the structure becomes a functional structure.
Some organisations retain this structure and some
evolve into other structures depending upon various factors.
This structure is favoured by companies which have
more standardised output. When outputs are custom-tailored, inter-dependant
personnel are needed for effective coordination between two different
departments set up by the functional organisational structure. This is also
needed when output needs to be changed fairly rapidly in response to rapid
shifts in the market conditions.
·
divisional structure
The organisation is sub-divided into smaller
replicas of itself. It improves the co-ordination vis-a-vis the outputs of the
different divisions. It also helps in training several General Managers to
manage multi-functional organisations. But it leads to duplication of staff and
rivalry between divisions. Overall, the efficiency of the organisation is
increased.
·
matrix structure
Coordinator, Inter-disciplinary team
|
Coordinator, Inter-disciplinary team
|
Coordinator, Inter-disciplinary team
|
This structure is a hybrid of function and
divisional structures. In this the personnel are allocated to specialized
departments. Each project/job is turned into a sort of temporary division
consistency of complimentary staff and headed by a coordinator. There is
reassigning of jobs.
There are various disadvantages of this structure.
The project coordinator has limited authority over his staff. There are
frequent conflicts and conflict resolution is not easy. Then there are
motivational problems. High levels of leadership skills are needed for the
head. Flexibility, adaptability and team spirit is required in staff.
But the plus point is the greater flexibility than
other structures.
Organisational structures vary by shape as
well:-
·
pyramid-like shape
There
are only few people at top where the decision making power is concentrated and
the numbers increase towards the bottom.
·
democratic shape
It
is similar to pyramid shape except there is a Membership or board of
representatives above the pyramid which is responsible for taking major policy
decisions. It resembles a disc mounted over a pyramid. This type of structure
is mostly seen in cooperative societies. This type of structure is generally
present in theory and not in practice.
·
tall structures
The
advantage of such a structure is that there is a small span of control for each
position and hence close supervision and interaction is possible as well as
team spirit. But the disadvantage lies in the fact that there are communication
problems because of slow circulation and distortion of information during the
process. Growing organisations and government units with lifetime employment
sometimes end up having a tall structure for promoting purposes. In such cases
new positions are created even though they are not needed. This leads to
managerial bottlenecks.
·
flat structures
It
leads to quick and accurate communication. But close supervision is difficult
and interaction is not inter-level. It is also difficult to build team spirit.
ORGANIZATION
DESIGN & STRUCTURE
Indian Oil is India’s flagship Maharatna national oil company with
business interests straddling the entire hydrocarbon value chain – from
refining, pipeline transportation and marketing of petroleum products to
Research & Development, Exploration & Production, marketing of natural
gas and petrochemicals. By venturing into the Renewables and the Nuclear
Energy, the company has grown and evolved itself from a pure petroleum refining
and marketing company to a full-fledged energy company. Indian Oil and its
subsidiaries own and operate 10 of India’s 22 refineries and its cross-country
pipelines network, for transportation of crude oil & finished products,
spans over 11,220 km is the largest in the country, meeting the vital energy
needs of consumers in an efficient and environment-friendly manner.
At Indian Oil,
operations are strategically structured along the verticals -
1. Refineries
2. Pipelines
3. Marketing
4. R&D
Centre and
5. Business
Development
For
E&P, Petrochemicals and Natural Gas.
Each
of these divisions have a different organisation structure specific to their
own functions. For e.g., the R&D centre is not as diversified as other
divisions and therefore has fewer number of departments and offices across the
country.
Indian
Oil follows a common hierarchy in all its departments across all the divisions
like refinery, pipelines etc.
CHAIRMAN
BOARD
OF DIRECTORS
EXECUTIVE
DIRECTOR
GENERAL
MANAGER
DEPUTY
GENERAL MANAGER
CHIEF
MANAGER
SENIOR
MANAGER
MANAGERS
DEPUTY
MANAGERS
SENIOR
ENGINEER/OFFICERS
ENGINEER/OFFICER
The
different posts at Indian Oil are divided into grades which starts from engineer/officer
which is Grade A till executive director which is Grade I. A new
post of assistant engineer/officer has been added recently which is
called Grade A0. The Board of Directors including the Chairman is a government
nominated body and has a different structure.
THE BOARD OF DIRECTORS
The
BOD is divided into Functional Directors and Independent Directors and the
Chairman.
At
Indian Oil, operations are strategically strcutured along the verticals namely,
Refineries, Marketing, Pipelines, Research & Development and Assam Oil
Division. Each of these divisions have a different yet similar in some ways
organizational structure such that they complement each other. There is quite
an amount of interaction between the managers of these divisions. The common
feature between each division is that firstly, they are classified regionally
across India and there is a regional office that maintains other units in its
jurisdiction. In light of the technicality of operations at IOCL, there are
different kinds of offices in each region which will be better explained in the
organizational structure of the Pipelines Division. Each of the five divisions
have been explained below.
REFINERIES
Born from the vision of achieving self-reliance
in oil refining and marketing for the nation, Indian Oil has gathered a
luminous legacy of more than 100 years of accumulated experiences in all areas
of petroleum refining by taking into its fold, the Digboi Refinery commissioned
in 1901. The
Refinery Division at IOCLis headed by the refinery headquarters which is
located in New Delhi. The highlights of the organizational structure at
Refineries Division are:-
·
The major departments functioning here
are Shipping, Maintenance & Inspection, Health, Safety & Environment,
Human Resource, Finance, Projects, Technical, and Materials & Contracts.
·
The Head Office is spearheaded by the
Director (Refineries), Deputy General Manager and Executive Director.
·
The rest of the departments are headed
by their respective Executive Directors or General Managers.
·
There are 11 refineries functioning
under the Head Office out of the 23 refineries in India.
·
Each refinery is headed by an Executive
Director under which there are General Managers and Deputy
General Managers working in various departments like Projects, HR, P & U, and Instrumentation.
·
The Indian Oil refineries have an ambitious growth plan for capacity
augmentation, de-bottlenecking, bottom up gradation and quality up gradation.
MARKETING
Indian Oil has one of the largest
petroleum marketing and distribution networks in Asia, with over 43,000
marketing touch points. Its ubiquitous fuel stations are located across
different terrains and regions of the Indian sub-continent. From the icy
heights of the Himalayas to the sun-soaked shores of Kerala, from Kutch on India's
western tip to Kohima in the verdant North East, Indian Oil is truly 'in every
heart, in every part'. Indian Oil's vast marketing infrastructure of
petrol/diesel stations, Indane (LPG) distributorships, SERVO lubricants &
greases outlets and large volume consumer pumps are backed by bulk storage
terminals and installations, inland depots, aviation fuel stations, LPG
bottling plants and lube blending plants amongst others. The countrywide
marketing operations are coordinated by 16 State Offices and over 100
decentralised administrative offices.
Several landmark surveys continue
to rate Indian Oil as the dominant energy brand in the country and an enduring
symbol for high quality petroleum products and services. The heritage and
iconic association that the brand invokes has been built over four decades of
commitment to uninterrupted supply line of petroleum products to every part of
the country, and unique products that cater not only to the functional
requirements but also the aspirational needs of millions of customers
·
The Marketing division at IOCL is headed
by the Head Office which is located in Bandra East, Mumbai.
·
There are more than 20 departments that
are functioning here like HR, Finance, Shipping, Retail Sales, Consumer Sales,
Law, Aviation, Lubes, Quality Control, Pricing, Vigilance etc.
·
The Director (Marketing) heads the
division with the Chief Executive
Administrator.
·
Each department follows the common
hierarchy:-
ED
GM
DGM
Junior Officers
·
The number of DGMs in various
departments may vary, for e.g., there are 4 DGMs in Aviation while 3 in
Engineering and 2 in Health, Safety and Environment.
·
The regional classification of the
division is best explained by the table below
|
REGIONAL
|
OFFICES
|
|
|
|
Northern
|
Southern
|
Eastern
|
Western
|
|
Punjab
|
Tamil
Nadu
|
West
Bengal
|
Gujarat
|
|
Rajasthan
|
Kerala
|
Odisha
|
Maharashtra
|
|
Uttar
Pradesh-I
|
Karnataka
|
Bihar
|
Madhya
Pradesh
|
|
Uttar
Pradesh -II
|
Andhra Pradesh
|
Assam Oil Division
|
|
|
|
|
|
|
·
The GMs of the regional offices are
responsible for coordinating with the head office as well as the state offices.
RESEARCH &
DEVELOPMENT
Indian Oil has a sprawling
world-class R&D Centre that is perhaps Asia's finest. This Centre is
India's foremost commercial centre of research excellence in the areas of
lubricants, refinery processes, pipeline transportation, alternative fuels fuel
additives, engine testing, materials sciences and environmental sciences. The
Centre holds 384 active patents, including 233 international patents.
Located on a sprawling 65 acre
campus in Faridabad on the outskirts of the National Capital, Indian Oil's
R&D Centre plays a key role in supporting the business interests of the
Corporation by developing economical, environmentally and socially responsible
technology solutions. With over 4000 lubricant formulations, the SERVO product line is the hallmark of the vibrant and ongoing
research at the Centre. The alternative energy programs of Indian Oil include
Bioenergy, Solar Hydrogen / HCNG, Synthetic fuels and Shale oil. The Centre is
also focused on cutting edge research in the areas of Nanotechnology,
Petrochemicals and Polymers, Coal Gasification / Liquidation, and Gas to
Liquid.
AOD
The small town of Digboi in the remote north eastern corner of the
country is the birth place of the Oil Industry in India. Digboi Refinery,
commissioned on 11th December 1901, is India’s oldest operating refinery and
one of the oldest operating refineries in the world. The historic Digboi Refinery
has been termed as the "Gangotri of the Indian Hydrocarbon sector.”
Earlier owned and operated by the Assam Oil
Company Limited/Burmah Oil Company, it came into the fold of the Indian Oil
Corporation Limited by an Act of Parliament on 14th October 1981 and became the
Assam Oil Division of Indian Oil Corporation Limited. Today, with its vastly modernized
operations and facilities, Digboi
Refinery is an ISO - 9002, ISO 14001 and OHSMS 1997 accredited
Refinery, manufacturing major petroleum products and major specialty products. The marketing network has also been
modernized and strengthened and today, Assam Oil Division is proud that the
Charging Red Rhino has made its presence felt in other states like West Bengal,
Orissa, Bihar, Haryana and Rajasthan.
ü
The
refineries at the Assam Oil Division have undergone major changes to make the
operations more environment friendly. In the first phase of the Digboi Refinery Modernisation Project
(DRMP), a new crude distillation unit, captive power plant and associated
offsite facilities were installed and commissioned.
ü
This
was followed by the installation of a Catalytic
Reformer Unit (CRU) in 1997 and a New
Delayed Coking Unit (NDCU) in 1999. Digboi Refinery has thus made major
investments in incorporating technologies such as catalytic reforming for the
production of “green” fuels and eliminated use of harmful lead compounds in the
production of motor spirit.
ü
It
has adopted the use of the eco-friendly hydro finishing technology for
treatment of wax by installing a Wax Hydro
finishing Unit (WHFU) in 2001 and thereby eliminated the use of
acid/earth finishing process. Two more major units are under commissioned –
these are the Solvent Dewaxing Unit
(SDU) and Hydrotreater Unit
(HDT).
ü
On
commissioning of these two units, the refinery would be in a position to
produce a larger quantity of wax through the SDU and also produce
environmentally friendly “green” fuels such as ultra-low sulphur diesel.
PIPELINES
In India’s infrastructure, the
petroleum pipelines form a crucial part enabling sustained availability of
petroleum products in all parts of the country for economic growth. The
pipelines transport petroleum products from refineries to demand areas and
crude oil from import terminals as well as domestic sources to the inland
refineries. India being a vast country, a wide network of pipelines becomes the
paramount requirement of transporting petroleum products to interiors from
refineries and crude oil to the land locked refineries.
It is an established fact that pipelines are preferred as a cost effective,
energy efficient, safe and environment friendly method of transportation
for petroleum products and crude oil and are playing a leading role in meeting
the demand for petroleum products in India. Economic growth and expansion of
infrastructure in India offer opportunities to better utilize the existing
pipeline network in addition to expand by constructing new pipelines.
Indian Oil, the pioneer in cross-country petroleum product pipeline in
the Indian sub-continent constructed and commissioned its first petroleum
product pipeline, Guwahati-Siliguri Pipeline in the year 1964. Since
then Indian Oil has mastered the art and technology of pipeline engineering.
Over the last four decades the pipeline network of Indian Oil has grown to
11,214 km. Various initiatives in the field of project management, operations
and maintenance including training in countries like Oman, Ethiopia, Kuwait
and Sudan have been undertaken. Today Indian Oil is well placed to provide
seamless services in the entire spectrum of petroleum pipelines covering
Ø Techno-economic
feasibility studies,
Ø Design and detailed
engineering,
Ø Project execution,
Ø Operations and
maintenance,
Ø Consultancy services
in augmentation and
Ø Modernization, etc.
Organization
structure of Indian Oil Pipelines:-
·
The whole of Pipelines division is headed by the pipeline headquarters
office which is located in NOIDA, UP.
·
Under the Head Office, Pipelines are divided into 4 segments
1.
Northern region pipelines
2.
Southern region pipelines
3.
Eastern region pipelines
4.
Western region pipelines
·
Each region has a regional office (Panipat, Chennai, Kolkata and
Gauridad, respectively) which is responsible for the unit offices/stations in their
respective regions.
·
The division is headed by Director (Pipelines) who has a place at the
Corporate Office in New Delhi. The Pipeline head office directly reports to the
director (pipelines).
·
The regional office is headed by an ED who is assisted by other junior
managers and officers. The regional office establishes contact with the PLHO
for coordination and control.
FUNCTIONS OF THE DEPARTMENTS AND THEIR
MANAGERS AT PIPELINES HEAD OFFICE
Located in the city of NOIDA, the pipelines head
office is responsible for the entire pipeline network in the country. The
functions here are diversified and more comprehensive than its subsidiary
units. Let’s look at the organizational structure of PLHO more closely.
Ø The major functioning
departments here are
1.
HR
2.
Finance
3.
Projects
4.
Material & Contracts
5.
Planning & Coordination
Ø HR
The major departments functioning under HR are Administrative, Personnel
and Vigilance. The following table better explains the comprehensiveness of the
HR department (PLHO):-
The major functions of the departments are:-
1.
Training
2.
Interactive sessions
with employees to promote interpersonal effectiveness and bring down barriers
to communication
3.
Motivational work
groups, discussion forums
4.
Appraisal and reward
system
5.
Recruitment
The hierarchy in HR (PLHO):-Director
(pipelines)
ED (HR)
DGM (HR)
CHRM
HRM
SHRO
HRO
Basic functions of DGM (HR)
1.
To analyse report by
the CHRM and forward to ED (HR).
2.
Attend meetings
3.
To review and suggest
new norms for managing personnel, administration and vigilance
4.
Internal training
5.
Interaction with lower
level managers
Policies and procedures followed in
the HR department:
1.
Transfer of employees
to different departments as well as locations.
2.
Medical benefits,
Festival benefits, Insurance cover, Pension are provided.
3.
Employees can
spearhead CSR activities and will be recognized for the same.
4.
Performance Appraisal
is an annual process.
5.
Special provisions are
placed for disabled/medically-ill employees.
Ø
Finance
The finance department at IOCL
(PLHO) is divided into the following departments:-
1.
Payroll
2.
Main account,
Miscellaneous and Insurance
3.
Concurrence
4.
Taxation
5.
Employee Payments
6.
Bills Payments
The major functions of this department are:
1. Controlling expenditures and
obligations (including operating expenses, debt, payroll)
2. Receipting and depositing all
revenues.
3. Managing the investment of all
monies.
4. Accounting for all assets and
capital project expenditures.
5. Internal and external reporting.
The hierarchy in the department
is:-
The DGM (Finance) is responsible
for:-
ü
Project appraisal,
Concurrence of Materials and Works Prop including Tender Openings, Estimate/CS
checking, Integrity Pact MIS, Single Tender MIS, Plan/AF Budget, Commitment
Register, CAPEX and AF MIS.
ü
EPCG and dealing with
FTP issues, Taxation matters including Customs, Excise, VAT/CST/C Form related
issue, TDS returns and certificates, Export of service, FE transactions, LC
opening and adjective of Custom Duty.
ü
Medical Claims
Employees, PRMS and Hospital Bills Payments.
ü
Domestic Sale of
service, Purchase Bills, All Miscellaneous Bills including Service Contract, BG
Monitoring, Service Tax Matters and Service Tax Return.
Policies and procedures followed:
Ø
Matters requiring
financial concurrence:-
1.
All strategic issues
placed before the Board for approval.
2.
All capital and
revenue Budget proposals.
3.
Proposals of capital
or revenue budget requiring re-appropriation.
4.
Proposals for capital
investment & Revised Capital cost, if any of the approved scheme.
Ø
In order to avoid
duplication of jobs, the following shall not be within the scope of financial
concurrence and the initiating department/ agency shall be wholly responsible
for:-
1.
Arithmetic accuracy of
all calculations indicated in the proposals.
2.
Factual accuracy of
technical analysis and assumptions thereof as indicated in the proposal.
3.
Factual accuracy of
technical, statutory requirements and their compliance like Explosive Rules,
Factory Act and Environmental Acts.
Ø
Finance concurrence by
another Finance Officer is not necessary if the proposal has been cleared by
Tender Committee, which included Finance representative, and the value of the
proposal is within the power of concurrence delegated to Finance
representative.
Ø
In case of
disagreement between the views of the concurring authority and approving
authority, the approving authority may over rule the advice of the concurring
authority and record the reasons in writing.
Ø
In cases where either
the required financial concurrence is not taken or the intimation regarding the
over ruling of the advice of the concurring authority is not brought to the
notice of the authority one level higher than the approving authority, such
approvals shall not be considered as approval.
Ø
Projects
The project department at IOCL (PLHO)
is responsible for handling the upcoming and ongoing projects at the various
regional pipelines. Some examples of project management at IOCL Pipelines are:-
·
Detailed design, engineering of mainline, stations, offshore terminals,
tank farm, cathodic protection, etc.
·
Detailed design, engineering of mainline, stations, offshore terminals,
tank farm, cathodic protection, etc.
·
Engineering, Procurement and Construction (EPC) services for
implementation of Pipeline Projects Instrumentation, dedicated telecommunication
system including optical fibre communication and Supervisory Control And data
Acquisition system
There are 8 departments under projects:-
1. Technical &
Instrumentation
2. Electrical
3. Civil
4. Construction
5. Mechanical
6. CAD work station
7. Gas
8. Systems
The hierarchy followed here is:-
Director (Pipelines)
ED (PJ)
GM (PJ)
DGM (PJ)
Chief Projects Manager
Senior Projects Manager
Projects Manager
Deputy
Projects Manager
Functions of the DGM (Projects):-
1.
To provide guidelines
for implementation of teams and advice to junior managers and officers of
various business units.
2.
Developing and
implementing a consistent and standardized process of managing several projects
according to a chosen methodology.
3.
Conducting project
management office training that allows improving competencies and skills of
project managers and team leaders.
4.
Work on projects from
a single, centralized office.
5.
Give teams pieces of
advice regarding project management best practices.
6.
Using specialized
software for successful project management implementation.
Policies and procedures followed:-
1.
All project operations
is approved by the authority one level higher than the authority responsible
for the project.
2.
All projects need to
follow the Health, Safety and Environment norms which are set according to
Ministry of Petroleum & Natural Gas.
3.
The decision of the
approving authority will be final. However, any concerns can be taken to the
BOD.
4.
The materials bought
for the construction of new projects will be through the Materials & Contracts
Departments.
Ø
Materials and Contracts
The M&C department is
responsible for:-
ü
Maintaining a constant
flow of inputs/raw materials.
ü
maintaining the
quality and the quantity
ü
reviewing tender of
raw materials
ü
signing contracts
ü
reviewing bidding for the
contract
System followed for purchase of materials
·
In case where detailed engineering
specifications are not worked out by the Department or the specifications are
not comprehensive/well defined, and the scope involves design work also to be
done by the bidet, a system of two-part tendering shall be adopted.
·
Two bid system to be followed if the estimated
value of the procurement is more than Rs 25 Lakh.
·
However, indenters/Materials department consider
it necessary to issue the enquiry under two bid system, two bid system can be
followed irrespective of any value limit.
·
Under two-bid system, the tender enquiry shall
clearly specify that the quotations shall be received in two separate covers
one containing all details of the tender viz. specifications, delivery schedule
and other commercial terms and conditions except price and other containing all
the details together with the price. The priced bid and unpriced bid shall be
identical in all respects excepting that only the “priced bid” shall contain prices.
The “unpriced bid” should not contain any prices or indication thereof in any
manner whatsoever. Both the sealed covers shall superscribed “unpriced bid” and
“priced bid” as the case may be along with the tender enquiry number and both
the offers shall be placed in one single sealed cover.
The department has the following
hierarchy:-
Director (Pipelines)
ED (M&C)
GM (M&C)
DGM (M&C)
Senior Material Manager
Materials Manager
Senior
Materials Officers
Functions of DGM (M&C)
1.
Coordinating with higher
managements decisions
2.
Forwarding daily
report to higher management
3.
Reviewing tenders for
contracts
4.
Reviewing the two bid
system
5.
Interacting with
junior managers
6.
Analysing
surplus/deficit materials at various sites
7.
Reviewing monthly/
quarterly performance reports
8.
Any other function as
directed by senior management
Policies and Procedures followed:-
Ø
All expenditure
incurred on procurement of materials, capital or revenue nature is to be
regulated in accordance with the procedure prescribed in this manual.
Ø
The power to sanction
expenditure in respect of procurement is subject to a provision in the approved
budget.
Ø
For various stages
relating to the incurring of expenditure and dealing with matters arising out
of procurement contracts, financial limits have been prescribed in the
delegation of powers.
Ø
Subject to specific
exceptions permitted under the procedure, no expenditure on the procurement can
be incurred unless the work is administratively approved, and a detailed
estimate is prepared, technically approved by the authority empowered to do so
checked and concurred by the Finance as per DOA.
Ø
Planning and Coordination
This department is also called
Operations and it is responsible for
ü
Handling the entire
pipeline operations of Indian Oil spanning the country.
ü
Maintaining pipeline
throughput
ü
Uninterrupted crude
oil and petroleum product supply to refineries and marketing demand centres as
per requirement of stakeholders.
ü
Looks after marine as
well as air fuel operations
ü
Improving relationship
and cooperating among oil companies
ü
Analyses transit/ocean
losses and serves remedial measures, quality control etc.
The hierarchy followed here is:-
Director (pipelines)
ED (O)
GM (O)
DGM (P&C)
Chief Manager (P&C)
Manager (P&C)
Senior
Engineer (P&C)
Functions of DGM (P&C):-
1.
In charge of the
P&C department, coordinating activities of the department.
2.
Attending meetings
like BPO, PMC, and IDCM etc.
3.
Communicating Daily
Operation report to GM (O), ED (O) and Director (Pipelines).
4.
Coordinating with
Marketing, Refinery and Corporate office for issues related to pipelines.
5.
Audit reply.
6.
Operation philosophy
of new pipelines.
7.
Reply to
Ministry/Parliamentary questions.
8.
Coordinating with
units.
9.
Preparation of
pipelines MOU and stretch targets.
10.
DRA procurement for pipelines.
11.
Any other activity as
directed by seniors.
Policies and procedures followed:-
1.
Data on Product Wise
Pumping Figure, Shut Down Details with reason, Crude Tanker Berthing Status,
Crude Stocks Availability to be sent on daily basis on all working days in
forenoon.
2.
Reconciled data on
Monthly Reports on Pumping & Shut Down Details to be sent on monthly basis
by 20th/25th of next month.
3.
Highlights for Annual
Reports to send by end of next month.
4.
Reminder for
highlights/annual data to send by 16th of April.
5.
Preparation of Annual
Highlights & Annual Operation data to send by end of July.
SYSTEM
OF ACCOUNTING FOLLOWED
|
1. BASIS OF PREPARATION
1.1 The financial statements are prepared
under historical cost
convention in accordance with the mandatory
accounting standards
specified under Section 133 of the Companies
Act, 2013, read with Rule
7 of the Companies (Accounts) Rules, 2014.
1.2 The preparation of financial statements
requires the management to
make estimates and assumptions that affect
the reported amount of
assets, liabilities and disclosure of
contingent liabilities as at the
date of the financial statements. Management believes that these
estimates and assumptions are reasonable and
prudent. However, actual
results could differ from estimates.
2.
FIXED ASSETS
2.1 Tangible Assets
2.1.1 Fixed Assets are stated at acquisition
cost less accumulated
depreciation / amortization and cumulative
impairment.
2.1.2 Land acquired on perpetual lease as
well as on lease for over 99
years is treated as free hold land.
2.1.3 Land acquired on lease for 99 years or
less is treated as
leasehold land.
2.1.4 Technical know-how / license fee
relating to plants/facilities
are capitalised as part of cost of the
underlying asset.
2.2 Construction Period Expenses on Projects
2.2.1 Revenue expenses exclusively
attributable to projects incurred
during construction period are capitalized.
However, such expenses in
respect of capital facilities being executed
along with the
production/operations simultaneously are
charged to revenue.
2.2.2 Financing cost incurred during
construction period on loans
specifically borrowed and utilized for
projects is capitalized on
quarterly basis up to the date of
capitalization.
2.2.3 Financing cost, if any, incurred on
General Borrowings used for
projects is capitalized at the weighted
average cost. The amount of
such borrowings is determined on quarterly
basis after setting off the
amount of internal accruals.
2.3 Capital Stores
2.3.1 Capital stores are valued at cost.
Specific provision is made for
likely diminution in value, wherever
required.
2.4 Depreciation/Amortization
2.4.1 Cost of leasehold land for 99 years or
less is amortized over the
lease period.
2.4.2 Cost of tangible fixed assets (net of
residual value) is
depreciated on straight-line method as per
the useful life prescribed
in Schedule II to the Companies Act, 2013
except in case of following
assets where useful life is considered based
on technical assessment:
a) Useful life of 15 years for Plant and
Equipment relating to Retail
Outlets (other than storage tanks and
related equipments) and LPG
cylinders & pressure regulators
b) Useful life of 25 years for solar power
plant/solar panels
Depreciation is charged pro-rata on
quarterly basis on assets,
from/up to the quarter of capitalization/
sale, disposal/ or earmarked
for disposal. Residual value is considered
between 1% to 5% of cost of
assets.
2.4.3 Assets, other than LPG Cylinders and
Pressure Regulators, costing
up to Rs. 5,000/- per item are depreciated
fully in the year of
capitalization. Insurance spares are
depreciated up to 100% over the
remaining life of the main asset.
2.4.4 Expenditure on the items, ownership of
which is not with the
Company are charged off to revenue in the
year of incurrence of such expenditure.
2.5 Intangible assets
2.5.1 Technical know-how / license fee
relating to production process
and process design are recognized as
Intangible Assets and amortized on
a straight line basis over a period of ten
years or life of the
underlying plant/ facility, whichever is
earlier.
2.5.2 Expenditure incurred on Research &
Development, other than on
capital account, is charged to revenue.
2.5.3 Costs incurred on computer software
purchased/developed resulting
in future economic benefits, are capitalised
as Intangible Asset and
amortised over a period of three years
beginning from the quarter in
which such software is capitalised. However,
where such computer
software is still in development stage,
costs incurred during the
development stage of such software are
accounted as Intangible Assets
Under Development.
2.5.4 Cost of Right of Way for laying
pipelines is capitalised and
amortised on a straight line basis over the
period of such Right of Way
or 99 years whichever is less.
3. FOREIGN CURRENCY TRANSLATION
3.1 Transactions in foreign currency are
initially recorded at exchange
rates prevailing on the date of
transactions.
3.2 Monetary items denominated in foreign
currencies (such as cash,
receivables, payables etc.) outstanding at
the end of reporting period,
are translated at exchange rates prevailing
as at the end of reporting
period.
3.3 Non-monetary items denominated in
foreign currency, (such as
investments, fixed assets etc.) are valued
at the exchange rate
prevailing on the date of the transaction.
PRODUCT PROMOTIONAL MEASURES AND STRATEGIES
|
|
|
STRATEGIC FORMULATION BY IOCL
Ø Overall
Cost Leadership:
As per the Government regulations, all the player in downstream
petroleum sector have to maintain same prices, in fact subsidize the mail
commodities like Motor spirit, High speed diesel, kerosene and LPG. For the
subsidized products, Government allots Oil bonds to Oil PSU’s in order to
partially compensate for the under-recoveries and to some extent by upstream
Oil Companies (ONGC,OIL).In this way IOCL has overall cost
leadership vis-à-vis private players.
Ø Differentiation
Indian Oil is the pioneer in launching state-of-the-art petrol stations
with digital dispensers, modern canopies, standardized signage and efficient
lighting systems way back in the mid-1990s. The new retail-branding template
introduced by Indian Oil set in motion a revolution in the petroleum retail
business in the country. Following are the evidence of differentiation by
IOCL.
Ø Xtra
Care
Indian Oil’s XTRA care E branded full
service petrol stations is a result of a series of processes in retail design,
product and service up gradation, capability training, automation,
loyalty programs, retail site management techniques all benchmarked to
global standards. Today XTRA care petrol stations are synonymous in India with
world-class petroleum retailing. While the industry standard is to take samples
on a quarterly basis, Indian Oil has moved several steps ahead by introducing
fortnightly random sampling with specific importance given to RON (Research
Octane Number) sampling which is truly the definitive test for quality and
quantity. The surveillance audits by BV are being done on a more comprehensive
basis. The scale and spread of XTRA care pumps is also an industry record. Another
vital differentiator in the Indian Oil XTRA care is the importance given to the
frontline customer attendants. They are trained at three levels of
competencies--customer service, personal hygiene/grooming and customer
complaint redressals. XTRA car dealers also undergo extensive training on
'Retail Site Business Management’.
Ø Kisan
Seva Kendra
Kisan Seva Kendra is a unique award-winning retail
outlet model pioneered by Indian Oil to cater to the needs of the customers' in
the rural segment. Today Indian Oil’s KSKs have merged as a dominant player in
the rural markets, riding on the rapid growth of upcoming second and third tier
roads in the rural areas. The KSKs come with a fresh perspective enabling
dealers to tap the huge demand driven in by consumers there.
Ø Swagat
The Swagat retail
network are large format sites designed exclusively to cater to travellers on the
highways. With spacious parking lots, dhabas, eateries, retail stores and
restroom, the
Swagat outlets provide customized services to owners of both light motor
vehicles as well as heavy motor vehicles.
Ø Focus
IOCL plans to prune its retail outlets in the current year (2009), owing
to the fact that it plans to improve the efficiency of current 15000 outlets. Its
plans to improve by its differentiating factors like Xtra care, swagat and seva
Kendra. IOCL to use its Indian surplus funds to expand operations in Sri Lanka,where
it is operating as Lanka IOC. It is planning to establish 300 retail outlets
which require investment to the tune of 6 billion Sri Lankan Rupees ( INR 260
crore), each outlet requiring about Sri Lankan rupee 2 Crore. Sri Lankan market
has a demand of 3.5 MTPA with current capacity of 2.2MTPA.
STRATEGIC ALLIANCES
Ø Product
or Service Alliance
Focus is on having captive oil blocks by entering into consortium with
foreign players and Oil India Limited to acquire foreign Oil blocks, so as to
ensure energy security of India. IOCL signs Memorandum of Understanding with
Adani Energy for City Gas Distribution in select districts of Haryana, Punjab, Rajasthan
and Uttar Pradesh.
Ø Promotional
Alliance
IOCL has formed a promotional alliance with kisan seva Kendra’s for
promotion in rural areas. IOCL presents sports scholarship awards to nurture
talented young sportspersons across all the streams. Indian Oil has also set up
the Indian Oil Foundation (IOF) as a non-profit trust to protect, preserve and
promote national heritage monuments. IOCL provides ‘merit-cum-means’
scholarships to bright students selected on 'merit-cum-means' basis. For each
academic year, 450 scholarships covering the first year students of 10+ /
ITI, Engineering, MBBS and MBA
Ø Logistics
Alliance
IOCL has formed a logistics alliance with Mundra Port for strategic
storage of Crude Oil. Indian Oil Tanking Ltd formed as an alliance between
Indian Oil and Oil tanking US for storage of Crude Oil and products.
Ø Pricing
Collaboration
IOCL collaborates
with other PSU players for exchange of surplus products, like, IOCL might offer
Gasoline or Naptha at Guwhati to HPCL in exchange of the same products at Vizag.
(Usually termed as ‘Hospitality’ in common Oil Industry parlance)
CAREER
PLANNING AND PROMOTION POLICY OF EMPLOYEES
The Corporation's employee strength as on March 31, 2010 was 34,363
including 14,210 officers. There are 2,624 women employees, constituting 7.64%
of the total manpower.
Indian Oil’s unique work culture is based on
trust, openness and a commitment to creativity and consultation. The
organisation identifies each and everyone of its employees as an achiever who
will make a difference. The experience and the knowledge gained by its people
in building this mammoth organisation is now sought after by other developing
countries.
Indian Oil inducts officers at the junior-most level of the management
hierarchy. First division professional degree holders and post-graduates from
relevant disciplines are recruited as management/engineer trainees, accounts
officers, medical officers, lab officers, systems officers, communications
officers, scientists, etc.
Job rotation and inter-location transfers
throughout the country facilitate planned development of careers and broaden
outlook. Career growth opportunities are based on the individual's performance
and contribution to the common goal of sustained growth. Indian
Oil's top executives have grown from within.
Ø
Promotion
Policy in IOC “A” to “F”
A-B : 4
years
B-C : 4 years
C-D : 4
years (Should have one inter-disciplinary posting with 4 years of field posting.)
D-E :
3-5 years (Two inter-disciplinary posting & 7 years of field posting at 2 locations.)
E-F : 3-5 years (Three inter disciplinary
posting with at least 10 years of field posting three years as in charge.)
F -- :
4 years
Ø
25% get
progressed in first appearance
Ø
45% get
progressed in 2nd appearance
Ø
Balance in
3rd/4th appearance subject to their being cleared by DPC
Ø Reach “C” grade in 8 years in rare cases 9/10 years.
Normally officers reach F in 20 years.
Marking System:
Appraisal
:42----------------------------------42%
Seniority :30 ( @ 5 marks per year)------------30%
Qualifications:16------------------------------16%
Field Posting :
3-------------------------------3%
Award/Suggestion:1---------------------------1%
No Mobility
Constrains:3-----------------------3%
DPC Marks :5----------------------------------5%
Total:100-----------------------------------100%
DPC marks are just 5% as compared to 50%
in ONGC. Also seniority has 16% as
compared to 0% in ONGC. 7% marks for other attributes also.
More DPC marks always means more subjectivity.
Training measures in IOCL (pipelines
division)
In an ever changing and fast paced
corporate world, training and development is an indispensable function. Training
and development is one of the lowest things on the priority list of most
companies. There is, however, enormous value in organizing proper training and
development sessions for employees.
Training allows employees to
ü acquire
new skills
ü sharpen
existing ones
ü perform
better
ü increase
productivity and
ü be
better leaders.
Since a company is the sum total
of what employees achieve individually, organizations should do everything in
their power to ensure that employees perform at their peak.
Indian Oil Corporation Limited
being the country's largest commercial undertaking has continuously been
providing opportunities to it employees in self and career development through
focused training programmes in the behavioural and functional areas.
IndianOil
invested Rs. 5.53 crore in training in the year 2015 which was are more than 100% increase from the previous year which
included faculty assistance charges only and excluded lodging, travel, food,
stationary etc. In the year 2015 IOCL spent Rs. 1 lakh annually on internal
trainers and decreased the expenditure on external trainers by more than 100%
from the year 2014.
Training
practices
(i)
On the job training
(ii)
Classroom based training
(iii)
Computer based training
(iv)
Interactive/Advanced Technology training
(v)
Practice in your organisation
The
training activities are aligned to the business goals of the organisation.
Designed with the consultation of the functional experts and depending upon the
requirement of the target participants and the department, it is decided
whether internal or external resource is utilized. Management Development
Programmes with the assistance of reputed Management Institutes are also
organized for certain topics. The in-house faculties are experienced and
knowledgeable senior officers with excellent communication skills and having a
flair for taking training sessions.
The
mode of training is classroom sessions and field visit for technical trainings.
Training on safety, electrical safety or on skill development with regard to
engines, motors etc are a combination of both classroom and field trainings.
The
trainings for employees programmes include: Functional trainings (e.g.
Capability building programmes on operations, Materials Management, Finance
Management etc), Behavioural Trainings (e.g. Business etiquette, communication
skills, self-motivation and positive attitude), Safety, Work permit and OISD
Compliance (Fire and Safety, Process Safety, Electrical Safety, Behavioural
Based Safety, Capability building of Station-in-charges with regard to Safety
etc.), Physical Wellness and Financial Well-being (e.g. Yoga) training on
Statutory Compliances.
These
programmes equip employees to
ü Carry
out their functional jobs
ü Compliance
to the statutory requirements
ü Make
them aware of the safety hazards
ü Exhibit
appropriate etiquette at workplace and
ü Keep
them motivated.
Training
programmes like Competency Training and Corporate Growth Strategy for middle
level executives are given to enhance knowledge on the overall business
environment and other business verticals of IndianOil. Similarly, skill based
trainings like Standard Operating Procedures help in carrying out the jobs more
efficiently and effectively.
The
induction programmes for new officers takes place at two levels. For the first
two weeks, the new joinees undergo Common
Corporate Induction Level Module (CCIM) which starts with behavioural
module and includes:-
(a)
An insight into Indian Energy Scenario, evolution of IndianOil, its structure,
its vision,
mission, objectives and core values
(b)
Defined leadership competencies are given
(c)
An outline of Refinery, Marketing and Pipelines Operations
(d)
Inputs on functioning of HR, Finance and BD Group.
(e)
Visit to Refinery, Pipeline and Marketing locations/installations.
On
completion of CCIM, officers are posted to Divisions.
In
Pipelines Division, the new officers are required to undergo a three-week of Divisional Induction
Module which is specific to the Divisional functions and includes
inputs on
ü Operations,
Maintenance, Construction, Materials, Contracts, HR and Finance functions
ü sessions
on Team Building and Organisational Culture
ü sessions
on diversity and gender sensitization
ü Mentoring
process
The
Induction Programme concludes with presentation from the new officers on the
areas of their learning. An informal get-together is also organised in which
the new joinees interact with the senior management officials.
The function of Training
Department is to facilitate employees' learning of job-related competencies in
order to gain competitive advantage. Recognizing the importance of training
human capital to meet the business, Training and Development Department of
IndianOil Pipelines Division focuses on Skill Development and knowledge
enhancement for employee engagement, talent management, manage diversity and
development of human resource.
"Operations Excellence"
and "Investing in People" are two of the six focus areas of
IndianOil. The top priority of a process-driven industry is safe & reliable
operations. T&D Department is contributing towards operational excellence
by training interventions. In the area of investing in people, T&D is
focused on nurturing and developing talent aligning with business objectives.
HRD
& WELFARE MEASURES
Major HRD mechanisms used:
·
Performance Appraisal - It is used as a
mechanism to understand the difficulties/weaknesses of the subordinates and
help/encourage them remove all these and realize these.
·
Career Planning – In HRD, corporate strategies
and business expansion plans should not be kept secret. Long term plans of the
organization should be made transparent to the employees.
·
Training – The training is directly linked with
career growth and appraisal of the employees as such. Employees are given on
the job training as well as off the job training.
·
Potential Appraisal & Development – The
capabilities should be developed within the employees to grow/perform new goals
& responsibilities by themselves continuously.
·
Rewards – By rewarding employees, the
organization is motivating & recognizing the employee talents as such and
helps in communicating the value of the organization also.
·
Employee Welfare – HRD system in Indian Oil
focusses on employee welfare and quality of work life by continually examining
employee needs and meeting them to the extent possible.
·
Feedback & Performance Coaching – In Indian Oil,
the supervisors continuously monitor the employee performance and review and
provide necessary suggestions to improve them.
·
Organization Development – A continuous effort
is maintained to maintain the development of the organization as a whole.
Motto of the Welfare department in
Indian Oil:
“Working with a Smile and a
Helping Hand”
In Indian Oil, a separate
department is dedicated to the welfare of the employees- both working and
retired. The employees working in this department are sensitive to the troubles
of their juniors, peers and seniors alike. It is functional under the HR
department and reports to the DGM (HR).
The welfare departments’
responsibility is timely and swift processing of application regarding the
following:-
·
Online applications developed by the internal
team.
·
Medical authorizations - Contact the concerned
hospital as wells as set check-up camps for the employees and general
public(under CSR)
·
State of the art facilities in canteen and
pantry
·
Loans and advances – for Housing, Conveyance,
Furniture, Children Education, Festival Advance
·
Stationary – replace damaged or lost
MANPOWER
PLANNING
Manpower
planning entails getting the right number and type of personnel
to do the required tasks for the fulfilment of the goals and objectives of the
organization. The manpower planning process is an ongoing and continuous strategy which is
undertaken through a systematic set of procedures.
Indian
Oil operates within transparent HR policies and procedures with a well-defined
online performance measurement system in place. Potential decides promotion and
it follows a well-defined career plan model for all officers, offering exposure
to different functional areas through intra-functional & inter-functional
job rotation to improve managerial capability
PERFORMANCE
APPRAISAL SYSTEM
Indian Oil has adopted an ePMS
(e-Performance Management System) system for performance appraisal of the
employees. ePMS seeks to determine individual performance and potential through
a system that is
ü Objective
ü Transparent
ü Aligned
to the business needs
ü Robust
ü Easy
to use and manage
Features of ePMS:-
·
Role based KRAs and KPIs which is a five point
continuous scale on which employees’ performance is judged.
·
Special/Additional KRAs are used which have
customized scales according to the employee (if he/she is disabled) and the
type of job role.
·
Weightage to KPIs is differentiated according to
the importance of the various scales in the organization.
·
Stretch tool for Target Setting for the
employees.
·
Self-appraisal and Final Rating
·
Performance Diary which is a record of the
achievements and shortcomings of the employee.
·
Finally, Monitoring of Status is done by the
managers.
Each of the above is better
achieved in an e-enabled system.
Indian Oil follows and appraisal
cycle which is best explained by the chart below:
SWOT ANALYSIS
OF THE ORGANIZATION
|
STRENGTHS
1.India's largest commercial enterprise with a
strong brand name
2.Has around 50% petroleum products
3.Operates 10 refineries in India
4.Huge distribution network through retailing
|
WEAKNESSES
1.Legal issues
2.Employee management
3.Bureaucracy
4.Volatility in the crude market & subsidy
burden
|
|
OPPORTUNITIES
1.Increasing fuel/oil prices
2.Increasing natural gas market
3.More oil well discoveries
4.Expand export market
|
THREATS
1.Government regulations
2.High Competition
|
CONCLUSIONS
·
It has been an
extremely vigorous and knowledge-driven training with Indian Oil Corporation
Limited. Being an intern at the Maharatna Award winner has been an honour as
well as a journey in which I embarked upon with a strong desire to be
acquainted with the actual working environment in a Public Sector Unit.
·
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 at Indian Oil 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
organization structure of Indian Oil is a dynamic one which is revised at regular
intervals to increase efficiency of the organization.
·
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.
·
Indian Oil
hires the best talent who can be trusted upon to keep the historical pioneer in
the areas of petroleum & natural gas functioning efficiently and smoothly.
It believes in a two-way process. It takes care of its employees and empathizes
with them on both happy and unfortunate occasions. Indian Oil is acclaimed to
be one of the best PSU in India in terms of employee benefits and job security.
·
The Training
& Development department in Indian Oil Pipelines Head Office follows a
rigorous but employee sensitive regime when training both the interns and
on-the-job employees.
·
To conclude,
Indian Oil is a mini state, an entity in its own in which hard work is the key
to innovation.
SUGGESTIONS
Based on my experience as an intern at the humongous
oil company of India, the following suggestions are humbly put forward:
1.
The roles
& responsibilities can have a more rigid outline owing to the fact that
every officer/manager is subjected to carry out any task as directed by
seniors.
2.
There can be a
separate department that is responsible for import of crude oil. This is due to
the unstable international oil prices.
LEARNINGS
1. History,
vision and mission of IOCL
2. The
vast organisational structure at IOCL (Pipelines Division)
3. Inputs
on the organisational structure of other divisions as well like Refineries,
Marketing etc.
4. Reading
and analysing official reports.
5. Analysing
Balance Sheets
6. Office
etiquettes
LIMITATIONS & FUTURE SCOPE
·
The organization
structure study is dove-tailing to the Pipelines Head Office because of the
time constraint and the vastness of the organization.
·
Primary data
was not collected by any means of survey, questionnaire etc.
REFERENCES
1. Organizational
Designs for Excellence - Pradip N Khandwalla, Director, IIMA
2. Project
Report on IOCL: Functions of Training & Development Department – Shubhi
Mittal
3. Application
for 6th Annual Greentech Award for Training Excellence
4. Office
manuals – HR, Finance, Planning & Coordination, T&D, Projects,
Materials & Contracts
