Organizational Structural Report of Indian Oil Corporation Limited

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.	OBJECTIVES OF THE STUDY	6
3.	METHODOLOGY	6
4.	INTRODUCTION	7
5.	ORGANIZATION DESIGN AND STRUCTURE	13
6.	FUNCTIONS OF DEPARTMENTS AND MANAGERS AND HIERARCHY	20
7.	SYSTEM OF ACCOUNTING FOLLOWED	28
8.	PRODUCT PROMOTIONAL MEASURES	31
9.	CAREER PLANNING & PROMOTION POLICY	33
10.	TRAINING MEASURES	34
11.	SYSTEM FOLLOWED FOR PURCHASE OF MATERIALS	36
12.	HRD MEASURES	36
13.	MANPOWER PLANNING	38
14.	PERFORMANCE APPRAISAL SYSTEM	38
15.	SWOT ANALYSIS	39
16.	CONCLUSION	40
17.	SUGGESTIONS	41
18.	LEARNINGS	41
19.	LIMITAIONS & FUTURE SCOPE	41
20.	REFERENCES	41

Abstract

This is an internship report based on my internship at Indian Oil which spanned for a total of 15 days from 15^th March-31^st 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:-

Senior Finance Manager

Chief Finance Manager

DGM (Finance)

Executive Supervisor

ED (Finance)

Director (Pipelines)

 

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 20^th/25^th of next month.

3.      Highlights for Annual Reports to send by end of next month.

4.      Reminder for highlights/annual data to send by 16^th 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 6^th Annual Greentech Award for Training Excellence

4.      Office manuals – HR, Finance, Planning & Coordination, T&D, Projects, Materials & Contracts

5.      https://iocl.com/