Training Development IndianOil

Training and Development- Indian Oil
TRAINING AND
DEVELOPMENT
INTRODUCTION
Every organization needs to have well trained and experienced people to

perform the activities that have to be done. Training is a process of learning a
sequence of programmed behaviour. It is application of knowledge. It gives
people an awareness of the rules and procedures to guide their behaviour. It
attempts to improve their performance on their current job and prepare them for
an intended job. Development is a related process. It covers not only those
activities, which improve job performance, but also which bring about the growth
of the personality; help individuals in the progress towards maturity and
actualization of their potential capabilities so that they become not only good
employees but better men and women. In organizational terms, it is intended to
equip person to earn promotions and hold greater responsibility.
Training a person for a bigger and higher job is development. In addition, this
may well include not only imparting specific skills and knowledge but also
inculcating certain personality and mental attitudes. As the jobs become more
complex, the importance of employee development also increases. In a rapidly
changing society, employee training and development are not only an activity
that is desirable but also an activity that an organization must commit resources
to if it is to maintain a viable and knowledgeable work force.
Training has played a very important role in helping the corporation to reach
the commanding heights of performance. Any training would be considered
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successful only when the knowledge gained by the participants is transferred to

the job performance
Training is the main function of HR. To enhance the Corporation's growth and
keep the Corporation ready to anticipate all types of competition and face it too,
there is a need that Human Resource should play more active role for overall
progress of the Corporation.
The impact of training programme is to mould the employee’s attitude and

help them to synergies individual goals with organizational goals. It also helps in
reducing dissatisfaction, complaints, absenteeism, and labour turnover.
DEFINITION
According to Flippo, “Training is the act of increasing knowledge and skills of

an employee for doing a particular job" The major outcome of training is learning.
A trainee learns new habits, refined skills and useful knowledge during their
training programme, which helps them to improve their performance. Training
can also be defined as activities designed to change the behaviour.
Another way of defining training would be a planned programme designed to

improve performance and bring about measurable changes in knowledge, skills,
attitudes, and social behaviour of employees.
Training imparts the ability to detect and correct error. Further, more it
provides skills and abilities that may be called on in the future to satisfy
organisation’s human resources needs.
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MANAGEMENT DEVELOPMENT
Management development is an attempt at improving an individual’s

managerial effectiveness through a planned and deliberate process of learning.
For an individual this means a change through a process of planned learning.
This should be the common and significant aim of development from the point of
view of the trainer and the trainee in an organisational setting.
“All development is self development. It must be generated within the main

himself. Development is highly individual. The development of an individual is
due to his day-to-day experience on a job. Hence, emphasis should be on
experiences from day to day work. Any activity designed to improve the
performance of existing managers and to provide for a well-planned growth of
managers to meet future organisational needs is management development.
The change in the individual must take place in those crucial areas which can
be considered as output variables:-
•Knowledge Change
•Attitude Change
•Behaviour Change
•Performance Change
•End-Operational Results (The Last Two Changes Being The Result Of The
First Three Changes)
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TRAINING PHILOSOPHY:
Training constitutes an important component of overall Human Resource

Management (HRM) strategy. It is a part of the Human Resource Management
efforts of the organization that enables the employees of the organization to
continuously update their functional knowledge and skills in various disciplines.
The employees should be familiar with the latest technological developments,

organizational procedures and system as well as various Management concepts.
An opportunity should, therefore, be provided by the organization to its
employees, particularly in management cadre, to attend the management training
courses, who in turns can share their knowledge and experience with the juniors
in the organization.
One of the basic philosophies of the training programmes is to bring together

participants of different disciplines from different regions so that they can
exchange their work experience and the problems being encountered, with other
participants.
After employees have been selected for various positions in an organization,

training them for specific task to which they have been assigned, assumes great
importance. Training is an important activity in an organization.
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Features Of Training
o Increase knowledge and skill for doing a job.
o Bridge the gap between job needs and employee skills.
o Job oriented process, vocational in nature
o Short-term activity designed especially for operatives.
Objectives Of Training
The overall training objective is to develop required knowledge, skills, and

attitudes of our employees so that they can perform more productively and
achieve the business goals. It is recognized that the employees learn primarily
from on-the-job experience. Therefore, in achieving this objective, the primarily
contribution is from on-the-job training and supporting contribution from the
formal training effort.
1. To Impart Basic Knowledge And Skill To New Entrants And Enable Them
To Perform The Job Well.
2. To Equip Employee To Meet The Changing Requirement Of The Job And

Organization.
3. To Teach The Employees The New Technique And Ways Of Performing

The Job Or Operations.
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4. To Prepare Employees For Higher Level Task And Build Up A Second

Line Of Competent Managers.
Training has always played an important and integral part in furthering many
kinds of human learning and development. However, the fact that training can
make an important, if not crucial, contribution to organizational effectiveness is
only now being recognized fully. Companies, organizations, and government are
beginning to appreciate the value of adequate, consistent, and long-term
investment in this function.
Training and Development programmes help remove performance

deficiencies in employees. This is particularly true when –
• The deficiency is caused by a lack of ability rather than a lack of

motivation to perform.
• The individual(s) involved have the aptitude and motivation needed to

learn to do the job better.
• Supervisors and peers are supportive of the desired behaviours.
There is greater stability, flexibility, and capacity for growth in an organization.

Training contributes to employee stability in two ways. Employees become
efficient after undergoing training. Efficient employees contribute to the growth of
the organization. Growth renders stability to the workforce. Further, trained
employees tend to stay with the organization. They seldom leave the company.
Training makes the employee versatile in operations. All rounder can be
transferred to any job. Flexibility is therefore ensured. Growth indicates
prosperity, which is reflected in increased profits from year to year. Accidents,
scrap and damage to machinery and equipment can be avoided or minimized
through training. Even dissatisfaction, complaints can be reduced if employees
are trained well.
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Training Is An Investment In Human Resource With A Promise Of Better

Returns In Futures.
A company is training and development pays dividends to the employee and

the organization. Though no single training programme yields all the benefits, the
organization, which devotes itself to training and development, enhances its
human resource capabilities and strengthens its competitive edge. At the same
time, the employee’s personal and career goals are furthered, generally adding
to his abilities and value to the employer.
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Role And Scope Of Training
Training has been performing a very important role in helping the Corporation
to reach the commanding heights of performance over the years. The vitality of
an organization depends upon its capacity to adapt itself to change. And the
current changing environment calls for this the most. Training plays a vital role in
this regard. The primary role of training is to assist the employees in their pursuit
of knowledge and self-actualization, expounding the belief that there are no limits
to human potential and growth and such potential should be transformed into
reality. Any training would be considered successful only when the knowledge
gained by the participants of various programmes is transferred to their job
performance.
All formal training activities conducted by the Training Centres at Head Office
and at Regional Offices are in line with the organizational needs. Formal training
efforts of the Training Centres are directed towards supplementing the primary
training process, which takes place on-the-job.
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Need For Training
The need for the training of employees would be clear from the observations
made by the authorities
1. To Increase Productivity:
Instruction can help employees increase their level of performance on
their present assignment. Increased human performance often directly
leads to increased operational productivity and increased company profit.”
Again, increased performance and productivity, because of training, are
most evident on the part of new employees who are not yet fully aware of
the most efficient and effective ways of performing the jobs.
2. To Improve Quality:
Better-informed workers are less likely to make operational mistakes.
Quality increase may be in relationship to a company product or service,
or in reference to the intangible organisational employment atmosphere.
3. To Help A Company Fulfill Its Future Personnel Needs:

Organizations that have a good internal education programme will have to
make less drastic manpower changes and adjustments in the event of
sudden personnel alterations. When the need arises, organisational
vacancies can more easily be staffed from internal sources if a company
initiates and maintain an adequate instructional programme for both its
non-supervisory and managerial employees.
4. To Improve Organisational Climate:

An endless chain of positive reactions results from a well-planned training
program. Production and product quality may improve; financial incentives
may then be increased, internal promotions become stressed, less
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supervisory pressure ensure, and base pay rate increase result. Increased
morale may be due to many factors, but one of the most important of
these is the current state of an organisation’s educational endeavor.
5. To Improve Health And Safety:

Proper training can help prevent industrial accidents. A safer work
environment leads to more stable mental attitudes on the part of
employees. Managerial mental state would also improve if supervisors
know that they can better themselves through company-designed
development programmes.
6. Obsolescence Prevention:
Training and development programmes foster the initiative and creativity
of employees and help to prevent manpower obsolescence, which may be
due to age, temperament or motivation, or the inability of a person to
adapt him to technological changes.
7. Personal Growth:
Employees on a personal basis gain individually from their exposure to
educational experiences.” Again, “Management development programmes
seem to give participants a wider awareness, an enlarged skill, and
enlightened altruistic philosophy, and make enhanced personal growth
possible.
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IMPORTANCE OF TRAINING
Training is the corner-stone of sound management, for it makes employees

more effective and productive. It is actively and intimately connected with all the
personnel or managerial activities. It is an integral part of the whole management
programme, with all its many activities functionally interrelated.
There is a present need for training men so that new and changed techniques
may be taken advantage of and improvements affected in the old methods, which
are woefully inefficient.
Training is a practical and vital necessity because, apart from the other
advantages, it enables employees to develop and rise within the organization,
and increase their “market value”, earning power and job security. It enables
management to resolve sources of friction arising from parochialism, to bring
home to the employees the fact that the management is not divisible. It moulds
the employees’ attitudes and helps them to achieve a better co-operation with the
company and a greater loyalty to it.
Training, moreover, heightens the morale of the employees, for its helps in
reducing dissatisfaction, complaints, grievances and absenteeism, reduces the
rate of turnover. Further, trained employees make a better and economical use of
materials and equipment; therefore, wastage and spoilage are lessened, and the
need for constant supervision is reduced.
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Training Methods/ Techniques
The forms and types of employee training methods are inter-related. It is

difficult, if not impossible; to say which of the method or combination of methods
is more useful than the other. Infact, methods are multifaceted in scope and
dimension, and each is suitable for a particular situation. The best technique for
one situation may not be best for different groups or tasks. Care must be used in
adapting the technique/ method to the learner and the job. An effective training
technique generally fulfills this objective;
• Provide motivation to the trainee to improve job performance,
• Develop a willingness to change, provide further trainee’s active

participation in the learning process.
• Provide a knowledge of results about attempts to improve (i.e.

feedback), and permit practice where appropriate.
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VARIOUS TRAINING TECHNIQUES
On–The-Job- Training:
Virtually every employee, from the clerk to the president, gets “On-The-Job
Training”, when he joins a firm. It is primarily concerned with developing in an
employee’s skills and habits consistent with the existing practices of an
organization, and orienting him with his immediate problems. It is mostly given for
unskilled and semi-skilled jobs- clerical and sales jobs.
Employees are coached and instructed by skilled co-workers, by supervisors,

by the special training instructors. They learn the job by personal observation and
practice as well as occasionally handling it. He is learning by doing, and it is most
useful for jobs that are either difficult to stimulate or can be learned quickly by
watching and doing it.
The main advantage of on-the-job training is that the trainee learns on the
actual equipment in use and in the true environment of his job. He, therefore,
gets a feel of the actual production conditions and requirements. In this way, a
transfer from a training centre or school to the actual production conditions
following the training period is allowed. Secondly, it is highly economical since no
additional personnel or facilities are required for training. Thirdly, the trainee
learns the rules, regulations procedures by observing their day-to-day
applications. He can, therefore be easily sized up by the management.
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Vestibule Training
This method attempts to duplicate on-the-job situations in a company

classroom. Its is a class room training which is often imparted with the help of the
equipment and machines which are identical with those in use in the place of
work. This technique enables the trainee to concentrate on learning the new
skills rather than on performing on the actual job. In other words, it is geared to
job duties. Theoretical training is given in the classroom, while the practical work
in conducted on the production line.
It is a very efficient method of training semi-skilled personnel, particularly

when many employees have to be trained for the same kind of work at the same
time. It is often used to train clerks, bank tellers, inspectors, machine operators,
testers, typists, etc. It is most useful when philosophic concepts, attitudes,
theories, and problem solving abilities have to be learned.
Training is generally given in the form of lectures, conferences, case studies,

role-playing and discussion.
The various advantages of vestibule training are:
• As training is given in a separate room, distractions are minimized.
• A trained instructor, who knows how to teach, can be more effectively

utilized.
• The correct method can be taught without interrupting production.
• It permits the trainee to practice without the fear of the supervisors/

co-workers observation and their possible ridicule.
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Of-The-Job Methods:
“Of-the-job training” simply means that training is not a part of everyday job
activity. The actual location may be in the company classroom or in the places,
which are owned by the company, or in universities, or in associations, which
have no connection with the company.
This method consists of:

1. Lectures
2. Conferences
3. Group Discussions
4. Case Studies
5. Programmed Instructions
1. Lectures:
Lectures are regarded as one of the simplest ways of imparting
knowledge to the trainees, esp. when facts, concepts, or principles, attitudes,
theories and problems-solving abilities are to be taught. Lectures are formal
organized talks by the training specialists, the formal superior or other
individual specific topics.
The lecture methods can be used for very large groups, which are to be
trained within a short time, thus reducing the cost per training. It can be
organized rigorously so that ideas and principles relate properly. Lectures are
essential when it is a question of imparting technical or special information of
a complex nature. They are usually enlivened with discussions, film shows,
case studies, role-playing, and demonstrations.
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In training, the most important uses of lectures include:
• Reducing anxiety about upcoming training programmes or

organisational changes by explaining their purposes.
• Introducing a subject and presenting an overview of its scope.
• Presenting basic material that will provide a common background for

subsequent activities.
• Illustrating the application of rules, principles; reviewing, clarifying

and summarizing.
• The main advantage of lecture system is that it is simple and efficient

and though it is more materialistic, it can be presented within a given
time.
2. Conference Method:
In this method, the participating individuals ‘confer’ to discuss point of
common interest to each other. A conference is basic to most participative
group-centered methods of development. It is a formal meeting, conducted in
accordance with an organized plan, in which the leader seeks to develop
knowledge and understanding by obtaining an considerable amount of oral
participation of the trainees. It lays emphasis on small group discussions, on
organized subject matter, and on the active participation of the members
involved. Learning is facilitated by building up on the ideas contributed by the
conferees.
The conference is ideally suited for the purpose of analyzing problems and
issues and examining them from different viewpoints. It is an excellent
method for development of conceptual knowledge and for reducing
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dogmatism and modifying attitudes because the participants develops

solutions and reach conclusions, which they often willingly accept.
3. Group Discussions:
This is an established method for training. A group discussion is conducted in
many ways:
• It may be based on a paper prepared by one or more trainees on a

subject selected in consultation with the person incharge of the group
discussion. It may be a part of a study or related to theoretical studies
or practical problems. The trainees read their papers, and this is
followed by critical discussion.
• It may be based on the statement made by the person incharge of

the group discussion or on a document prepared by an expert, who is
invited to participate in the discussion.
• The person incharge of the group discussion distributes in advance

the material to be analysed in the form of required readings. The
group discussion compares the reaction of trainees, encourages
discussion, defines the general trends, and guides the participant to
certain conclusions.
4. Case Studies:
“The case study is based on the belief that the managerial competence
can best be attained through study, contemplation, and discussion of
concrete cases.” The ‘case’ is the set of data, written or oral miniature,
description, and summary of such data that present issues and problem
calling for solutions or action on the part of trainee. When the trainees are
given cases to analyse, they are asked to identify the problem and
recommend tentative solution for it. This method offers to the trainees matter
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for reflection and brings home to them a sense of complexity of life as oppose
to theoretical simplifications of, and practices in the decision-making process.
The case study is primarily useful as a training technique for supervisors and
is especially valuable as the technique of developing decision-making skills
and for broadening the perspective of the training.
5. Programmed Instruction:
Programmed instruction involves a sequence of steps, which are often set up
through the central panel of an electric computer as guides in the
performance of a desired operation or series of operations. It incorporates a
pre-arranged, proposed, or desired course of proceedings pertaining to the
learning or acquisitions of some specific skills or general knowledge. A
programmed instruction involves breaking information down into meaningful
units and then arranging these in a proper way to form a logical and
sequential learning programme or package.
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EVALUATION OF TRAINING PROGRAMME
Objectives of training evaluation is to determine the ability of the participant in

the training programme to perform jobs for which they were trained, the specific
nature of training deficiencies, whether the trainees required any additional on
the job training, and the extent of training not needed for the participants to meet
the job requirements.
Evaluation of the training programme must be based on the following principles:
• Evaluation specialist must be clear about the goals and purpose of

evaluation.
• Evaluation must be continuous.
• Evaluation must provide the means and focus for trainers to be able
to appraise themselves, their practices, and their products.
• Evaluation must be based on objective methods and standards.
• Realistic target dates must be set for each phase of the evaluation
process. A sense of urgency must be developed, but deadlines that
are unreasonably high will result in poor evaluation.
There are various approaches to training evaluation. To get a valid

measure of training effectiveness, the personnel manager should accurately
assess trainee’s job performance two or four months after completion of
training.
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THE INDIAN PETROLEUM INDUSTRY
The Petroleum industry in India stands out as an example of the strides made
by the country in its march towards economic self-reliance. At the time of
independence in 1947, international companies controlled the industry. Today,
after 60 years later, the industry is largely in the public domain with skills and
technical expertise comparable to the highest international standards. The
testimony of its vigour and success during the past five and half decades is the
significant increase in crude oil production from 0.25 to 0.33 million tonnes per
annum and refining capacity from 0.3 to 103 million metric tonnes per annum.
The consumption of petroleum products has grown 30 times in the last 50 years
from 3 million tonnes during 1948-49 to about 107.7 million tonnes in 2003-04, an
increase of 3.5% over 104.1 million tonnes registered in 2002-03. A vast network
of over 29,000 dealerships and distributorships has been developed backed by
over 400 storage points over the years to serve the people even in the remote
and once-inaccessible areas.
Oil Production & Consumption In India (Million Tons)
2004 2003 2004 2005 2006
Crude Oil Production 32.9 33.9 32.7 32 32.5
Crude Oil Consumption 62.9 65.2 68.5 86 103.5
Deficit (Met By Imports) (33.9) (34.5) (39.8) (54.0) (71.0)
In order to understand the level of Indian demand for petroleum products in a

global perspective, the following table furnishes a comparison of per capita
consumption of petroleum products in the various parts of the world.
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(Kilograms per annum)
India 98
China 165
North America 2,610
World Average 585

With the per capita consumption level in India being only about 60% of that in
China, a strong growth potential exists in India, given particularly a
large population base of over a billion.
Growth
In the 60 years since independence, India has witnesses a significant growth

in the refining facilities and increase in the number of refineries from one to
eighteen now. The first decade of Independence (1947-57) saw the
establishment of three costal refineries by multinational oil companies operating
in India at that time, viz. Burmah Shell, Esso Stanvac, and Caltex; the first two at
Mumbai and the third at Vishakhapatnam. A major boost to the oil industry came
in pursuance of the Industrial Policy Resolution, 1956 that intended to promote
growth of the vital sectors such as petroleum under the State control. ONGC,
which was formed a Directorate in 1955, became a Commission in 1956.
The second decade (1957-67) witnessed the setting up of the Indian

Refineries Ltd. in 1985, a wholly owned public sector Government Company.
Under its banner, three refineries were set up at Guwahati (Assam), Barauni
(Bihar), and Koyali (Gujarat) essentially to process the indigenous crude
discovered in Assam and Gujarat. In 1959, the Indian Oil Company (INDIAN
OIL), again a wholly owned Government company, was formed for marketing of
petroleum products. Indian Refineries Ltd. was merged with Indian Oil Company
Ltd. to form Indian Oil Corporation Ltd. on 1 September 1964.
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The next ten years period (1967-77) witnessed the establishment of two
refineries, one with equity participation from America and Iranian companies at
Chennai, and another in the public sector at Haldia by Indian Oil.
The Period 1977-87 saw the commissioning of two more refineries in the
public sector. The refinery at Bongaigaon was the first experiment in having an
integrated petroleum refinery-cum-petrochemicals unit. The other refinery was
set up at Mathura in 1982. Major expansions of the coastal refineries at Mumbai,
Cochin, Chennai, and Vishakhapatnam were also completed during this period.
The notable feature of the capacity additions during this decade have been the
extensive utilization of the process design capabilities of M/s. Engineers India
Ltd. and installation of Secondary Processing Facilities to increase the production
of much required kerosene, diesel and LPG.
During the fifth decade (1987-97), a small refinery of 0.5 MMTpa (Million
metric tonnes per annum) at Nagapatinnam was built in Tamil Nadu. It
is based on crude from adjoining fields. In 1996, an MMTpa refinery
was built in the joint sector at Mangalore between HPCL and Indian
Rayon. This decade also saw significant expansion to the capacities
of the existing refineries, thereby raising the refining capacity to about
62 MMTpa.
However, the production of crude oil increased to over 35 million tonnes per
annum in the year 1997-98. This represents only less than 50% of country’s
requirement of petroleum. The balance had to be made good by imports putting
our foreign exchange to a great strain. Considering the ever-growing demand of
petroleum at the rate of about 7% per annum, and the dwindling reliance on
indigenous production of oil and natural gas, the Government of India, in 1991
decided to open up the exploration and production of oil and natural gas to the
private sector.
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The ministry of petroleum invited bids from the private parties / consortiums,
in a number of bidding rounds. Consequently, as many as 21 small oil-gas fields
and more than a dozen exploration blocks were awarded to private parties, for
exploration and production work. It was also decided by government to import
Liquefied Natural Gas, to meet the ever-growing requirement of natural gas in the
country. The government also decided to open up oil exploration in the deeper
continental shelf by private parties.
With the setting up of Panipat Refinery in 1999-2000, there are 18 refineries

operating in the country, 15 in the public sector, one in the joint sector and one in
the private sector, with an installed capacity of 102 million metric tonnes per
annum.
The year 2003-04 saw important developments in Government policy as well a

concerted efforts by individual companies to align their plans and progress with
the free market scenario.
On the disinvestments front, the Government of India successfully sold 10% of its
equity in Oil & Natural Gas Corporation Ltd.(ONGC) and GAIL (India) Ltd. during
the year. The Government also sold its residual equity of 26% in IBP Co. Ltd.
through public offer. Earlier in 2002, Indian Oil had acquired 33.58% of
Government of India’s equity in IBP through competitive bidding process, and
thereafter acquired another 20% through open offer to the public.
In the upstream sector, the Government of India signed 20 contracts for oil &
gas exploration under the fourth round of New Exploration Licensing Policy
(NELP) and eight contracts under the second round of the Coal Bed Methane
(CBM) Policy. Significant hydrocarbon discoveries in the blocks awarded earlier
enhanced the prospects of finding more oil & gas reserves in the country. For
enhancing the country’s oil security, the Government decided to set up 5 million
tonnes of strategic crude oil storage in the country at Mangalore and
Vishakhapatnam, which will be built and operated by Indian Oil.
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DEMAND FOR PETROLEUM PRODUCTS
Demand Growth From 1991 - 2001
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The Indian GDP and energy consumption have each grown at the rate of
about 6% per annum from 1991 to 2001. Correspondingly the demand for
petroleum products has been growing steadily as shown below:
Growth Rates: Crude processing & demand for petroleum products (1990-91 to
2000-01)
Consumption In Consumption In Compound

Year Ended Year Ended Avg. Growth
31.03.1991 31.03.2001 Rate
Crude Oil Processing 52 Million Tons 103 Million Tons 5.1 %
Demand For Total

55 Million Tons 94 Million Tons 5.5 %
Petroleum Products
Threats:
Towards end of the year, the major concern of the petroleum industry was
the rising cost of crude oil. While the uprising in gross refining margins helped
improve the bottom line, Indian refiners were severely impacted by the ever-
rising and fluctuation price of crude oil and products in the international market.
Since our country is still dependent on imports to the extent of 70% of its
requirement, we shall continue to be subject to volatility in the international prices
of oil. The strengthening of the Indian Rupee against the US Dollar helped limit
the impact partially. Concerted steps taken by the Government to augment
indigenous production through the NELP rounds, and encouragement to Indian
companies in acquiring equity oil and gas abroad, are therefore steps in the right
direction
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INTRODUCTION:
Petroleum is one of the most valuable natural resource in the world. Some
people call it as “Black Gold”, but it may be better described as the Life Blood of
Industrialised Countries.
The Indian oil sector is in the threshold of major changes. The Government of
India had already decanalised some products like Furnace Oil, Aviation Turbine
Fuel etc and also trying to decontrol High Speed Diesel, Motor Spirit, Liquefied
Petroleum Gas, Superior Kerosene Oil etc in the near future. In spite of
Government regulations there exists an intense competition among the existing
oil companies. The flexibility of grabbing more market share will intensify after
decontrol of these products from the Government.
Consumption of Petroleum products is an index of a country’s development,

industrialisation and economic well-being. From an annual consumption of less
than 3 Million Tonnes in 1948-1949 India’s Petroleum products consumption has
grown to 107.7 Million Tonnes in 2003-2004. It shows the growth rate of
Petroleum Industry in the country in the post independence period.
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In order to protect national interest, the Government of India decided to

establish a nationally owned and controlled Oil Industry in the India under the
Ministry of Petroleum and Natural Gas.
Indian Oil Corporation as an idea was born out of the Industrial Policy
Resolution of 1956 and since then has emerged as one of the largest and
leading corporations in the world.
Indian Oil Corporation Limited (INDIAN OIL) is the 18th largest Petroleum
Company in the World. INDIAN OIL is ranked 153 rd among the 500 largest
companies in the world. (As per the Fortune Listing). It is the only Public Sector
Undertaking among ‘India’s Top 10 Companies’ listed by the Far Eastern
Economic Review in 2004. Indian Oil has also been adjudged No. 1 in petroleum
trading among the national oil companies in the Asia-Pacific region.
In another major feat, Indian Oil was ranked among the top 10 ‘Best
Employers in India–2004’ in a joint survey conducted by Business Today and
Hewitt Associates across 220 organizations.
For 15th consecutive year, Indian Oil earned ‘Excellent’ rating for its
performance in its M.O.U with the Government of India for the year 2003-04.
Indian Oil started with a sales turnover of Rs. 109 crores and a profit of 1
crore in 1964-65. In the year 2005-06 INDIAN OIL has achieved a sales turnover
of Rs.1,83,204/-crores (profits of Rs. 4,915 crores for 2005-06). The total sales
volume (inclusive of export sales) increased from 47.56MMT in 2002-03 to
48.61MMT in 2003-04, registering a growth of 2.2 %. The Corporation recorded
the highest ever Profit Before Tax of Rs.9,691 crore (Rs.2,686 crore tax) during
2003-04 as against Rs.8,414 crore (Rs. 2,299 crore Tax) in 2002-03, registering
a growth of 15.2 %. The Profit before tax for the year ending 2005-06 was 6,706/-
crores.
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Indian Oil deals with various petroleum products. The Companies main
products are:
1. Fuel And Feedstock

2. Lubes And Greases
3. Petrochemicals And Specialties
4. Liquefied Petroleum Gas / LPG
5. Motor Spirit / Gasoline
6. Superior Kerosene Oil / Kero
7. High Speed Diesel / Gas Oil
8. Aviation Turbine Fuel / Jet Kero
9. Lubricants
HISTORY
In the late 1950s Indian oil industry was dominated by three Multi national
Companies, viz., Shell, Esso and Caltex. The country was dependant on refined
petroleum products imported into the country by these companies.
In the year 1956, Parliament passed an Industrial Policy Resolution bringing

Oil under the purview of the State sector as a step to bring all the industries of
basic and strategic importance into the Public Sector.
In 1958, a Public Sector Company called Indian Refineries Limited was set
up, followed by a marketing organization called Indian Oil Company Limited In
1959. By September 1964 both these companies were merged and Indian Oil
Corporation was formed.
In 1970, the Multinational Oil Companies were nationalized and this led to the
emergence of Bharat Petroleum Corporation Limited (BPCL) (from Shell) and
29
Hindustan Petroleum Corporation Limited (HPCL) (from Esso and Caltex). Apart
from this Government also formed Indo-Burma Petroleum (IBP) Limited. While
the three oil majors have their own refineries, IBP relied only on marketing. Later
Assam Oil Company was merged with INDIAN OIL, and a separate division
known as Assam Oil Division (of INDIAN OIL) was formed.
Apart from this other public and private sector companies like Madras
Refineries Limited, Cochin Refineries Limited, Bongaigaon Refineries and
Petrochemicals Limited, IPCL, Reliance Petroleum, Essar Oil Limited also
entered the market at later stages. Initially they were not given any marketing
rights for the controlled oil products but could refine crude oil and sell through the
nationalized oil companies. But, after the withdrawal of Administered Pricing
Mechanism (APM), (in 2002) these oil companies were allowed to sell these
decontrolled products through the Retail Outlets or by bulk to direct customers.
Indian Oil holds over 33% of the country's refining share (42%, if the capacity
of recently acquired subsidiaries is also added). All refinery units are accredited
with ISO 9002 and ISO 14001 certifications. It’s Mathura refinery is the first
refinery in Asia and the third in the world to earn the British Standard (BS: 7750)
and ISO-14001 certifications in environmental management.
The refinery network is presented with its installed refining capacity:
30
As On As On As On As On As On As On
Refinery
1.4.2000 1.4.2001 1.4.2002 1.4.2003 1.4.2004 1.4. 2005
IOC
IOC- Guwahati 1.0 1.0 1.0 1.0 1.0 1.0
IOC- Barauni 3.3 4.2 4.2 6.0 6.0 6.0
IOC - Koyali 13.0 13.7 13.7 13.7 13.7 13.7
IOC - Haldia 4.6 4.6 4.6 4.6 6.0 6.0
IOC- Mathura 7.5 8.0 8.0 8.0 8.0 8.00
IOC- Digboi 0.65 0.65 0.65 0.65 0.65 0.65
IOC- Panipat 6.0 6.0 6.0 6.0 6.0 6.0
Sub-Total IOC 36.05 38.15 38.15 39.95 41.35 41.35
IOC Subsidiaries
Cpcl- Chennai 6.5 6.5 6.5 6.5 9.5 9.5
Cpcl-
0.50 0.50 0.50 1.0 1.0 1.0
Narimanam
Brpl-
2.35 2.35 2.35 2.35 2.35 2.35
Bongaigaon
Sub-Total IOC
9.35 9.35 9.35 9.85 12.85 12.85
Subisdiaries
IOC-Total(With-
45.40 47.50 47.50 49.80 54.20 54.20
Subsidiaries)
Indian Oil holds over 33% of the country's refining share (42%, if the capacity
of recently acquired subsidiaries is also added). All refinery units are accredited
31
with ISO 9002 and ISO 14001 certifications. It’s Mathura refinery is the first
refinery in Asia and the third in the world to earn the British Standard (BS: 7750)
and ISO-14001 certifications in environmental management. The refinery
network is presented below with its installed refining capacity.
The Indian Oil group of companies owns and operates 10 out of 18 Oil
refineries in the country with a current combined rated capacity of 57.80 million
metric tonnes per annum (MMTPA) or one million barrels per day (bpd). These
include two refineries of subsidiary Chennai Petroleum Corporation Limited and
Bongaigaon Refinery & Petrochemicals limited to increase its refining capacity .
These are located at Guwahati and Digboi (Assam), Barauni (Bihar), Koyali
(Baroda,Gujarat), Haldia (West Bengal), Mathura (Uttar Pradesh) and Panipat
(Haryana). Continuous innovation and up gradation of technology have resulted
in high efficiency and optimum capacity utilization.
With sales of 49.61 Million Tonnes in 2005-06, Indian Oil holds over 51.2 %
of Market share. (With the acquisition of IBP, it holds around 60 % of the market
in India)
The Corporation’s employee strength as on March 31, 2006 was 30,801,

including 10,437 officers. There are 2,406 women employees including 775
officers, constituting 7.8% of the total manpower. These employees are engaged
in Crude Oil Refining, Pipeline Transportation, and Marketing of Petroleum
Products. It is the sole canalizing agency for the import and export of Crude Oil
and Finished Petroleum products.
Indian Oil has five divisions:

1) Refineries Division
2) Pipelines Division
3) Marketing Division
4) Research and Development Division and
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5) Assam Oil division.
As the name suggests Refineries division is into refining of imported and local
crude which is available in India. In maximum cases it crosses the installed
capacity utilization. Research and development division is into developing new
lubes and lube formulations required for the current market. From its inception it
has formulated more than 2000 lube formulations. Assam Oil division is into
refining and also marketing of oil products in the northeast part of India.
The marketing division has its Head Office at Mumbai. It controls a network
of over 22,000 sales points spread over India (the largest in the country). These
include Retail Outlets of MS/HSD, SKO/LDO dealers, LPG distributors, SERVO
shops etc.
INDIAN OIL constantly strives to develop its nationwide pipeline network. It

transports Crude Oil and Finished Products through over 7,575 kms of Cross-
country pipelines (country’s largest network). It keeps abreast of the latest
technology when laying new systems and inducts the same into existing systems
too.
Twelve Joint ventures are now operational in partnership with leading

companies like Mobil and Lubrizol Corporation (USA), Oil tanking GmbH
(Germany), Petronas (Malaysia), Marubeni (Japan), Bharat Petroleum
Corporation Limited (BPCL), Oil and Natural Gas Corporation Limited (ONGC),
IBP, Reliance Petroleum Limited (RPL), Essar Oil Limited (EOL), Gas Authority
of India Limited (GAIL) etc of India.
In addition to products refined at its own plants, INDIAN OIL also markets the
products refined by the following refineries :
33
i. Madras Refineries Limited

ii. Reliance Petroleum Limited
iii. Cochin Refineries Limited
iv. Bongaigaon Refineries & Petrochemicals Limited.
THE FAMOUS BRANDS UNDER INDIAN OIL
Indian Oil's branded fuels XtraMile and XtraPremium have made a

significant impact in the petroleum retail market. XtraMile, Indian Oil's new
generation High Speed Diesel with world-class additives has taken a leadership
position in the market.
The launch of premium fuels - XtraPremium and XtraMile (originally IOC

Premium and Diesel Super respectively), marks a new beginning for Indian Oil
and its customers. XtraPremium is, in fact, the only petrol in India with 91 Octane
and doped with Multifunctional Additives. The maiden launch of these branded
fuels took place in Delhi on Sept. 24, 2002. Subsequently, XtraPremiuem sales
have been extended to 200 cities and 750 petrol & diesel stations, and XtraMile
to 850 cities and 1750 petrol and diesel stations by the end of
34
SERVO is India's largest selling lubricant brand. SERVO ranges of lubricants

enjoy approvals from major Original Equipment Manufacturers (OEMs) including
new generation cars. 9,000 Retail Outlets and a countrywide network of SERVO
SSls and SSAs Bazaar traders offer servo range of lubricants to customers.
The Servo range of lubricants is used in almost every application covering

automotive, industrial and marine sectors. Servo range of lubricants is fast
emerging as a Global Brand. Servo has been designated as a superbrand.
Servo has genuine oil tie ups with a wide range of companies like Hyundai,
Maruti, Bajaj, Lancer. Anil Kumble, the ever dependable sporting icon is servo
Brand Ambassador.
Developed exclusively at Indian Oil's world-class R&D Centre at Faridabad,

there is a Servo lubricant for virtually every single application. With over 42%
market share and 450 grades, the country's leading Servo brand lubricants from
Indian Oil are sold through over 8,100 Indian Oil petrol/diesel stations, over 1,300
Servo Shops and a countrywide network of bazaar traders.
35
Indian Oil Indane LPGas is used in 40 Million homes as cooking fuel and
commands over 48% market share in India. Indane LPGas is marketed through a
network of 4350 Indane distributors. Widely used in commercial sectors like
industries, hotels & restaurants, medical labs, etc. 87 Indane Bottling Plants are
spread across the country with a combined bottling capacity of 3.77 MMTPA.
New and convenient 5 kg Indane LPGas cylinders introduced in rural and hilly
regions for wider use by economically weaker sections. Indian Oil's auto LPG
brand Autogas is the leader in the segment. Marketed through a network 48
stations out of an industry total of 103 Auto LPG Dispensing Stations.
36
Autogas (LPG) has been introduced in Hyderabad, Bangalore and Mumbai

markets. This alternative fuel is a good business proposition in the long term, and
Indian Oil intends to further expand its marketing in a big way
37
INDIAN OIL SERVES CUSTOMERS FROM KARGIL TO

KANYAKUMARI:
Indian Oil’s remarkable marketing and distribution network extends from Kargil
to Kanyakumari, catering to a vast spectrum of customers including households,
industries, agriculture, transport, and defence forces, with total sales crossing
49.61 Million Metric Tonnes in 2005-06.
The Marketing Division of the Corporation has its headquarters located in

Mumbai. It has FOUR Regional Offices located at Mumbai, Delhi, Chennai and
Kolkata. There are 15 State Offices and 44 Divisional Offices including 2 of
Assam Oil Division. A large network of 9,138 Retail Outlets including 82 Jubilee
Retail Outlets serve the retail market. A total of 3,521 Kerosene/ Light Diesel Oil
(LDO) dealers reach the products to the customers throughout the country. They
are fed by 162 Bulk storage depots/terminals all over the country.
INDIAN OIL has 35 Area Offices to deal with the marketing of LPG. Indane
Cooking Gas is distributed to over 375 lakh customers in 2,177 towns through
4,350 distributors. The Corporation has 87 LPG Bottling plants with a total
capacity of 36, 74,000 tonnes per annum.
38
INDIAN OIL has 94 Aviation Fuel Stations catering to Civil and Defence Aircrafts
with a market share of 68 %. INDIAN OIL meets around 89 % requirements of Air
Force whereas total needs of Army and Navy.
The company has a ISO-9001 certified, modern Research and Development

Centre at Faridabad with facilities matching international standards. The centre
has developed over 2000 Lubricant/Grease formulations and introduced
multigrade fuel-efficient lubricants for modern vehicles and is constantly trying
new ways of improving fuel efficiency and quality. INDIAN OIL has launched
genuine lubricating oils for almost all brands and makes of vehicles. A wholly
owned subsidiary, Indian Oil Blending Ltd. manufactures over 450 grades of the
country’s leading SERVO brand of lubricants and greases with 42 % market
share, and are sold through more than 9,100 Company retail outlets, besides a
countrywide network of bazaar traders.
INDIAN OIL- IMPROVING THE QUALITY OF LIFE:
INDIAN OIL provides welfare schemes including housing, medical, sports and
recreation facilities to its employees and their families. INDIAN OIL has also
given top priority to its customers’ interests. Be it peace time or war, drought or
floods, INDIAN OIL has carried oil requirements to remote hamlets, provided fuel
for transport and fulfilled energy needs of the Defence forces. INDIAN OIL has
always been keen supporter of worthy causes such as family planning and
welfare and rehabilitation of handicapped and under privileged. INDIAN OIL
views energy as a means of achieving self-reliance and healthy economy. So it
continuously strives to bring energy to life.
39
PROJECTS:
Indian Oil accords high priority to timely project implementation. The details of
various major projects are as follows:
Completed Projects:
• Diesel Hydrotreating and Solvent De-waxing units at Digboi Refinery.
• Viramgam – Koyali crude oil pipeline (148 km).
• Koyali-Viramgam-Sidhpur product pipeline (102 km).
• Kurukshetra-Roorkee-Najibabad product pipeline (167 km).
• LPG bottling plants at eight locations.
• Port terminal at Mauritius with a tankage of 15.5 TMT.
40
Ongoing Project:
• Linear Alkyl Benzene unit at Koyali Refinery.
• Diesel Hydrotreating unit at Mathura Refinery
• MS quality improvement projects at Mathura, Koyali and Haldia

refineries.
• Paraxylene/Purified Terephthallic Acid unit at Panipat Refinery.
• Panipat Refinery expansion from 6 MMT per annum to 12 MMT per

annum.
• Grassroots refinery at Paradip
• Mundra-Kandla crude oil pipeline (73 km) and conversion of the

Kandla – Panipat section of KBPL to crude oil service.
41
• Paradip – Haldia crude oil pipeline (353 km).
• Sidhpur – Sanganer product pipeline (506 km).
• Chennai – Trichy – Madurai product pipeline (683 km).
• Capacity augmentation of LPG bottling plants at Chengalpet and

Tikrikalan.
• Naphtha transfer pipeline from Asaoti to NTPC, Faridabad.
• Hydrocracker Laboratory – Phase-II – at R&D Centre.

New Project:
• Naphtha Cracker project and downstream polymer units at Panipat.
• Branch pipelines to Raxaul and Baitalpur from Barauni – Kanpur

product pipeline.
• Koyali - Ratlam (274 km) and Koyali – Dahej (112 km) product
pipeline.
• Dadri – Panipat gas pipeline.
• 7 depots at various locations.
• Dockline at Narimanam (8 km).
• Construction of grassroots LPG bottling plants at Raipur and

Virudhachalam.
42
DIVISIONS OF INDIAN OIL
Corporate:
Indian Oil is India’s Flagship national oil company, accounting for 51.2%
petroleum products market share, 42% national refining capacity and 67%
downstream pipeline transportation network. In 2005-06 , Indian Oil sold 46.22
million metric tonnes (MMT) of petroleum products, while its seven own refineries
achieves a throughput of 37.66 MMT, and pipeline network transported 44.50
MMT of crude oil and petroleum products.
Indian Oil is the country’s largest commercial enterprise – also the first and
only company to cross Rs.1 lakh crore turnover – with a Gross Turnover of Rs.
1,83,204/- crore (approx US$ 41,059 million), and a net profit of Rs.4915 crore
(approx US$ 1,603 million) for 2003-04. Indian Oil is the sole Indian presence in
Fortune’s prestigious listing of the world’s 500 largest corporations, ranked 153
and is the 18th largest petroleum company in the world. It has been adjudged
43
No.1 in petroleum trading among the national oil companies in the Asia-Pacific
region, and is ranked 325th in the current Forbes’ “Global 500” listing of the
largest public companies.
Indian Oil operates under the aegis of the Ministry of Petroleum & Natural Gas
(MOP&NG), Government of India, with the VISION to be a major, diversified,
transnational, integrated energy company, with national leadership and a strong
environment conscience, playing a national role in oil security & public
distribution.
MISSION STATEMENT:
To achieve international standards of excellence in all aspects of energy and

diversified business with focus on customer delight through value of products and
services, and cost reduction.
1 To maximize creation of wealth, value and satisfaction for the

stakeholders.
2 To attain leadership in developing, adopting and assimilating state-of-the-

art technology for competitive advantage.
3 To provide technology and services through sustained Research and

Development.
4 To foster a culture of participation and innovation for employee growth and

contribution.
44
5 To cultivate high standards of business ethics and Total Quality

Management for a strong corporate identity and brand equity.
6 To help enrich the quality of life of the community and preserve ecological
balance and heritage through a strong environment conscience.
Objectives And Obligations Of The Company
Objectives Of The Company
• 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.
45
• 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 minimize/eliminate their imports and to have next
generation products.
• To maximize utilization of the existing facilities in order to improve

efficiency and increase productivity.
• To optimize utilization of its refining capacity and maximize distillate

yield from refining of crude to minimize foreign exchange outgo.
• To minimize 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 liberalization 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.
46
Financial Objectives
• To ensure adequate return on the capital employed and maintain a

reasonable annual Dividend on its equity capital.
• To ensure maximum economy in expenditure.
• To manage and operate the facilities in an efficient manner so as to

generate adequate internal resources to meet revenue cost and
requirements for project investment, without budgetary support.
• To develop long-term corporate plans to provide for adequate growth

of the activities of the Corporations.
47
• To endeavour to reduce the cost of production of petroleum products

by means of systematic cost control measures.
• To endeavour to complete all planned projects within the stipulated

time and cost estimates.
Performance Graphs 2005-06
48
49
Obligations:
Towards Customers And Dealers :
• To provide prompt, courteous and efficient service and quality

products at fair and reasonable prices.
Towards Suppliers:
• To ensure prompt dealings with integrity, impartiality and courtesy

and promote ancillary industries.
Towards Employees:
• Develop their capability and advancement through appropriate

training and career planning.
• Expeditious redressal of grievances:

• Fair dealings with recognized representatives of employees in
pursuance of healthy trade union practice and sound personnel
policies.
Towards Community:
• To develop techno-economically viable and environment-friendly

products for the benefit of the people.
• To encourage progressive indigenous manufacture of products and

materials so as to substitute imports.
50
• To ensure safety in operations and highest standards of environment

protection in its manufacturing plants and townships by taking
suitable and effective measures.
Towards Defense Services:
To maintain adequate supplies to Defence Services during normal and

emergency situations as per their requirement at different locations.
Areas Of Focus :
1 Strategic resitement of Retail Outlet, specially for Diesel Oil, to sites

outside town area to facilitate better/improved Gasoline facilities in
metros/major towns.
2 Bigger site for Retail Outlets on highways.
3 Promote / inculcate dealers as Indian Oil family member and ensure that
they are “working dealers” and not “absentee dealers”.
4 Profit maximization through

 Sale of “Free Trade Product”.
 Import Parity Pricing.
 Project Management for faster completion of on-going project.
 Faster commissioning of Retail Outlets.
5 Quickly create infrastructural facilities at supply locations / Divisional

Offices to improve customer service through:
 Faster loading of Railway Tank Wagons / Tank Trucks.
51
 Quick and accurate billing.

 Computerized and modernized accounting system.
 Improved communication facilities.
6 Areas of improvement as per “Customer Satisfaction Measurement and

Management” study :
 Finance.
 Supply Point.
 Maintenance.
Strengths
• Wide field network.
• Dealership network to assist in our direct efforts.
• Up-country storages nearer to the market.
• Lower cost of production from old Refineries.
• Strength on international trade.
• Eight existing Refineries.
Spreading Wings :
Indian Oil has overseas offices in Sri Lanka, Dubai, Kuala Lumpur and
Mauritius to co-ordinate business activities. It has also set up subsidiaries in
52
Mauritius and Sri Lanka for implementing business expansion project. SERVO
lubricants are being exported to Dubai, Nepal, Bhutan, Kuwait, Malaysia,
Bahrain, Indonesia, Sri Lanka, Mauritius, Bangladesh etc.
Marketing
The marketing of petroleum products in India today is dominated by the four

state-owned oil companies. Their market shares as on 31st March 2001 were as
follows:
Indian Oil Corporation 55 % approx.*
Bharat Petroleum Corporation 21 % approx.*
Hindustan Petroleum Corporation 19.5 % approx.*
IBP Company 4.5 % approx.*
Indian Oil has the maximum market share with 55% followed by Bharat
Petroleum Corporation with 21% and Hindustan Petroleum Corporation with
19.5%
53
TRAINING AT INDIAN OIL

INDIAN OIL is the largest industrial corporation in India in terms of sales
turnover. As per the ranking by the Fortune500 magazine, it is ranked 153 rd
largest Industrial Corporation in the world. The training department of Head
Office and the Regional Office look after the formal training requirements of
about 17000 employees in the Marketing Division of the corporation. The Head
Office training center looks after the management training activity of over 2000
managers in Marketing Division. In addition, it also receives nominations from
Refinery and Pipelines Divisions, R & D Center, Assam Oil Division, Indian Oil
Blending Limited (IOBL), Oil Co-ordination Committee (OCC), PCRA, PII and
defence personnel. It also offers an opportunity for participation in training
programme to managers of organization from developing countries with which it
has co-operation agreements.
The Corporation has not only established its leadership in this field, but has
also gained unquestionable credibility at the international level. The credit for this
achievement goes to its most potent and vital force that is the dedicated efforts of
the Indian Oil employees. Indian Oils aims at excellent excellence, which
requires top-notch managerial training and development of their human resource.
That is the reason why INDIAN OIL has given the highest importance to training
right from its inception, which has enabled it to maintain and perpetuate its
profitable and efficient existence.
54
Evolution Of Training In INDIAN OIL:
Prior to 1964, the individual companies had their own training schemes
patterned on the erstwhile oil companies approach. The early focus was on
supervisory development. Since the organization was designed along divisional
lines, the training activities were also carried out almost independently division-
wise. The training in Marketing Division started with programmes organized by
them for the Defense Personnel for handling of petroleum products called the
Petrol Oil and Lubricants (POL) courses. Even as early as 1963-64 technical
programmes on fuel engineering were conducted for the sales force with the help
of MOBIL, USA. In 1965, the Administrative Staff College (ASC) was set up in
Bombay to conduct functional programmes in areas such as Personnel
Management and Productivity for INDIAN OIL personnel in addition to the POL
programmes for the Defence Personnel. The first few programmes were adapted
from those being conducted by the Burma Shell with guest faculty and later on
with the help of internal faculty.
Emphasis in the organization on training programmes was largely in the areas

of handling of Petroleum products, Liquid Petroleum Gas (LPG) and a few
bahavioural programmes.
A few years later, in 1967-68 as more programmes were added, training was
taken up at the regional levels with four regional training centers, and each set up
headed by a Branch Training Officer.
Training activities in the R&D Division started in early 1960s in the Guwahati
Refinery. In the initial years the United Nations experts helped in organizing
supervisory development programmes. Full-fledged training centers were set up
in all the refineries – Guwahati, Barauni, Gujarat, Haldia, Digboi – Assam Oil
Division (AOD) and Mathura with major emphasis on technical and skill-
development programmes in the initial years of their existence
55
In the 1970s, with the help of the Marketing Division, General Management
Programmes and behavioural programmes were organized in the Refinery
training centers. For increased understanding and coordination between the two
divisions a series of interface, programmes were organized since 1975-76.
The Indian Oil Management Academy (IMA) started functioning in August

1979 to meet the emerging training needs at selected managerial levels. The
IMA was to conduct specific functional and developmental programmes for
officers of the R&P Division. The AOD by itself has a long history of emphasis on
training even prior to its nationalization and integration with INDIAN OIL. Various
technical and skill development programmes were conducted by AOD for officers
and staff at all levels. The refinery at Digboi being peculiar to itself in terms of the
technology and operations, specific training programmes in operations and
maintenance were organized. The AOD had a strong and systematic approach to
training with major emphasis on planned on-the-job training.
In the mid-1970s, the performance appraisal forms were amended in INDIAN

OIL to introduce a component of training to help in the identification of training
needs. In early 1980s, the INDIAN OIL reviewed its corporate plans because of
which the need was felt to give a different orientation to the training activity
keeping in view the organisation’s development. It was also decided to have an
organization development (OD) intervention by an outside consultant with a view
to develop a proper linkage between the corporate plans and human resources
development. Accordingly, Professor M. Athreya was invited as an OD
interventionist. Based on the suggestions made by the consultant, emphasis
was given to Human Resources Development and it became a subsystem of the
Personnel function. Consequently, there were certain organizational changes in
the Personnel function. The Personnel function was regrouped and, reorganized
into three subsystems – Personnel and Administration, Training and HRD. The
HRD group was specifically assigned the task of integrating the identified
56
corporate mission with the department and individual goals, which included
appropriate career planning and role analysis.
Consequently, further changes were introduced in the Annual Performance

Appraisal (APA) System. The APA form was redesigned and training need
identification was given more importance. In 1990, the personnel department
was redesigned as Human Resource Management to reflect the greater
emphasis on HRD though the basic set up continued as earlier. Thus, the
training also got a fillip with introduction of general management and leadership
courses and interface programmes.
At the same time, there was considerable technical upgradation, which

necessitated greater emphasis on technical training. Because of the HRD outlook
in the organization, eight disciplines were identified in the Marketing Division
namely, Marketing, LPG, Operations, Technical Services, Personnel, Finance,
Sales, Aviation, and appropriate career path models drawn. The interdisciplinary
programmes were introduced to expose the officers to function other than their
parent discipline. -The concept of the staple programmes – all officers to be
exposed to them was simultaneously introduced.
Coinciding with this, in keeping with the corporate objective closer / greater
interface was envisaged between the divisions. In 1987, the Tata Management
Training Centre (TMTC) was invited to study the training activities in INDIAN OIL.
The TMTC offered suggestions to improve the training infrastructural facilities
and better utilization of manpower for training within the organization.
In Indian Oil Corporation today, training committees at the corporate office

level, Head Office (Division) level, and Regional/unit level play an active role in
formulating training plans, review of ongoing course, etc.
57
In the Marketing Division, the training activity is organized with set ups at
selected locations, at each regional headquarter level and at the head office. The
workers training is organized at the selected locations while officers’ train and
some workmen training are organized at regional headquarters, apart from the
training programmes for direct recruits and promotee officers and the middle and
senior level officers at the HO.
In the Refineries and Pipelines Divisions, each refinery has a comprehensive

training set up taking care of both workmen training, officer training for junior and
mid level officers and management training programmes for direct recruits while
the Indian Management Academy (IMA) organizes programmes for middle and
senior level officers in addition to the Junior Executive Development programmes
for Promoter officers.
The Pipeline training activities are also organized on a three-tier basis with
unit/location, regional office and head office handling workmen training, middle
and junior level officer training programmes and external and middle and senior
level officers training respectively. The internal training programmes at the head
office level for mid/senior level officers are taken up by the IMA.
Over the past few years there has been a substantial increase in the number
of employees exposed to training in the various divisions of INDIAN OIL.
In addition to the efforts of the training department in INDIAN OIL, other

departments like Fire & Safety Department and Inspection etc conduct certain
training programmes.
Over the years, the INDIAN OIL has invested substantial amount of financial
resources into training.
58
Training Mission:
1 To facilitate the process of integration of personal ambitions and

aspirations of employees with the corporate objectives through training
interventions.
2 To continuously scan the environment, review training programmes and

design need-based inputs to ensure achievement of high level of
excellence in customer satisfaction. Equip work force with skills to make
Indian Oil Corporation a global player.
3 Assist / guide the employees in their pursuit of knowledge and self-

actualization, expounding the belief that there are no limits to human
potential and growth.
4 Facilitate the induction of new employees into Indian Oil Corporation

through suitable orientation programmes.
5 Enable through training, Defense Services to efficiently handle storage,

distribution, and consumption of petroleum products, which shall also play
a vital role in building customer relations over a long term.
59
TRAINING PROCESS
Training Committees
ROLE OF TRAINING COMMITTEES:

The main role of the Training Committees is to oversee the training functions
and the training needs of the organization keeping in view the environmental
changes.
Based on the need identified, training programmes focused towards specific area
of interest are approved by the committee for implementation. The training
committee also reviews the training activities on a half-yearly basis.
HO TRAINING COMMITTEE
Chairman - Director (M)
Members - Executive Director, and General Managers I/C.

In addition one Regional ED is invited to the HO training Committee.
Convenor - DGM (T&D)
REGIONAL TRAINING COMMITTEE
Chairman - ED of the Regional.
Members - General Managers / Dy. General Managers (HOD) of the Region.
Convenor - Training In-charge of the Region (Senior / Manager (T&D))
60
In Indian Oil Corporation:
• Training Department has a training calendar, which is sent to all the

departments.
• Basically two types of training programmes are conducted by the

training department :
a. Functional Programme
b. Developmental Programme
• Training department makes use of in-house personnel for functional

programmes and employs people from outside for development
programmes
• The current system provides consultation with concerned officers by

his superior to ascertain the training needs.
• Similarly, the superior in consultation with the Unit level co-

coordinators identifies training needs of the workmen and Regional
Training Heads and new need based programmes are mounted.
• Each employee’s training needs are identified through system of

Annual Performance Appraisal (APA).
• Nomination for Regional course is as per the eligibility criterion laid

down for each programme.
• Once the nominations are identified and course announcement

made, withdrawal of nomination is normally not permitted.
61
• Participants at the end of each programme do the overall course

evaluation and the courses are modified depending upon the
feedback received.
• Participants attending external training are required to make a formal

presentation regarding the training received along with action plan for
implementation. This ensures transfer of knowledge for on job
performance.
Role Of Training :
1 Training has been performing a very important role in helping the

Corporation to reach the commanding heights of performance over the
years.
2 Training has played a pivotal role in helping the organization adapt itself to
change, which is the most important thing called for in the current
changing environment.
3 To assist the employees in their pursuit of knowledge and self-

actualization.
62
Training Linkage to Corporate / Divisional Objectives
The training policies have been developed for 4 main reasons:

1 To define the relationship between the organization objectives and its
commitment to the training function.
2 To provide operational guidelines for management, for example to state

management’s responsibilities for planning and implementing training and
in particular, to ensure that training resources are allocated to priority and
statutory requirements.
3 To provide information for employees. For example, to stress the

performance standards expected; to indicate the organization’s
commitment to training and development and to inform employees of the
opportunities of training development (including willingness to grant time
off, and/or payment of fees for External courses).
4 To enhance public relations for example, to help recruit high caliber

recruits; to reassure clients and public at large about the quality of
products or services or to project an image as a caring and progressive
employer by taking part in government sponsored “Social” training
programmes.
63
Need For Training :
Indian Oil Corporation is involved in refining and marketing of POL. Here, training
becomes a core function for the following reasons:
1 Training is necessary for new employees to get an idea about the job and
to do it effectively.
2 Junior employees need training before they take the position of their
seniors.
3 It is necessary for the company to fulfill its future personnel needs and to
train the employee in the company culture pattern.
4 It is necessary for old employees to enable them to keep abreast of

changing methods, techniques, and technology.
5 It is needed to improve the quality and quantity of output by an employee

and raising their morale.
6 Training is required to revise the specialized skills learnt in the past.
7 Job Rotation practice in Indian Oil demands training.
8 It reduces wastage and accidents.
9 For self – development.
64
Importance Of Training
The main importance is to mould the employee’s attitude and help them to
achieve better co-operation with company. It also helps in reducing
dissatisfaction, complaints, absenteeism, and labour turnover. A successful
training programme can be made by creating a good environment for it.
Participants’ Expectations From A Training Programme :
 Improving and solving specific problems confronted in job functions.
 As a means to improve promotional aspects.
 For professional growth in organization.
 To develop understanding of specific subjects covered in the training

programme
 As a change for routine job schedule.
 To be acquainted with new technology.
 For personal growth
 To gain new and pertinent knowledge
 Acquire specific approaches, skills, or techniques that can be applied on

the job.
 Help and confirm some earlier ideas.
65
 Acquaint with problems, ideas and solutions from other departments
 Look at oneself and one’s job objectively.
Training Process Of Indian Oil Involves Several Steps :
1. Defining organizational objectives and strategies
2. Assessment of the training needs
3. Establishing training goals
4. Devising the training programme
5. Implementation of the programme
6. Evaluation of the results
66
TRAINING PROCEDURE IN INDIAN OIL
1. Identification of training needs.
2. Training Nominations
3. Training Facilities
4. Training Techniques
5. Training Faculty
6. Preparation of the Trainee
7. Evaluation Effectiveness of training in Indian Oil.
8. Follow – up.
1) Identification Of Training Needs:
Identification of training needs is the stepping-stone in the appropriate

management training system on which the entire edifice of training programme is
built. Like the prevalent management development and training programmes,
appropriate management training system does not take a generalized view of
training needs. It attempts to take a specialized individualized view of training
needs of different categories of managers performing more or less similar job in
similar organizations. Under this system, assessing training needs is treated as
67
an important and crucial training function before designing and conducting a

programme.
An organization normally employs sufficient number of managerial and non-

managerial personnel with required competence to perform given jobs leading to
the accomplishment of organizational objectives. Effective performance of a job
requires a standard of competence in the job holder consisting of vital areas such
as job related knowledge, skill and attitude. But due to one or other reasons the
existing competence of the jobholder may fall short of the standard competence
required in the job. The processing of assessing and finding the gap between
the standard competence required in a job and the existing competences in turns
of vital knowledge and skill and attitude in the job holder may be called as the
identification of the areas of deficiencies and the resultant inventory of gaps in
the job holder in terms of knowledge and skill and attitude may be said as his
training needs.
This logic highlights two processes :
1. Identification and definition of standards of knowledge, skill and attitude

required in a job.
2. Assessing existing level of knowledge, skill, attitude of the job holder.
These two processes are of critical importance and should be carried out as
accurately as possible because the outcome of the comparison between the two
provides the information from which an appropriate training programme is
developed.
A training programme should be established only when it is felt that it would

assist in the solution of specified operational problems. The most important step
in the first place is to make a thorough analysis of the entire organization, its
68
operations and manpower resources available in order to find out the ‘trouble
spots’ where training may be needed.
In Indian Oil, training needs are identified by the Training committees at

HO/Regional level keeping in view the changing environment and the objectives
and the mission of the organization. Based on this new training also gets
identified year after year. Traditional programmes are redesigned so as to be
effective utilized.
Each officers training are identified in the “Training needs Exercise” which is
covered every two years. Prior to identifying needs of each officer, their current
system provides consultation with concerned officers by his superior to ascertain
the training needs.
The training need for officers are identified in the “Training need” form that
constitutes the basis on which the nominations are accepted by the training
centers for the various in-house training progrmmes. The nominations to
external training programmes are encouraged only for such progrmmes where in-
house training programmes are not available, and there is a self/organizational
need.
The training needs of workmen in employees category are identified by the

superiors in consultation with the unit level coordinators and the Regional
Training Heads and new based in-house programmes are mounted.
Employees do write in their Annual Performance Appraisal (APA) forms about

the training they would like to undergo.
69
2) Training Nominations
As far as possible opportunity is given to the officers to attend HO training

programmes of their choice once every two years. Nominations for regional
courses are as per the eligibility criteria laid down for each programme.
The main thrust of training activities at regional level is improving functional

competency. The nominations for workmen category are finalized at the regional
training centers keeping in view the specific needs of each employee segment.
Withdrawal of nomination – once the training department identifies the

nominations and course announcement is made, withdrawal of nomination is
normally not permitted. However, in extreme unavoidable circumstances, this is
permitted subject to prior approval of the competent authority.
3) Training Facilities
The non residential training programmes are conducted in the training halls
located in the HO/Regional head quarters. The training halls have been carefully
designed keeping acoustic requirement in view. The training halls are equipped
with the latest and most sophisticated audio-visual equipments to ensure training
effectiveness. Management training courses / supervisory development courses
are conducted in some of the reputed nominated hotels. They have also
acquired latest electronic gadget like liquid Crystal Display, Videorama,
Electronic Board (Panaboard), direct projector, for improving training efficiency.
The training center at HO has well equipped reference library. It has an

excellent collection of books and CDs on various aspects of Management,
70
Information Technology, Petroleum Industry and Energy Management besides

general disciplines.
4) Training Techniques
Depending on the course objectives, training methodology mix is carefully

designed. In the training courses, the management provides ample opportunity to
the employees to take active part in the learning process. In the management
training courses emphasis is placed on the use of state-of-the art training
technologies like simulation exercises, computer aided Management Games, live
video recording, structured experiential instruments, case study method etc.
Syndicate project studies are also given in most of the courses to study the live
organizational problems and give recommendations, which are then duly
considered by the management for implementation. The participants of various
training programmes are also required to prepare reports and make formal
presentations. This aids in the process of learning for workmen training.
Adequate emphasis is given to hands-on-training.
5) Training Faculty
The trainer has to be prepared for the job for he is the key figure in the entire
programme.
The strength of the Training in INDIAN OIL lies in the faculty being generated
from within. In-house faculty imparts a lot of credibility to the training efforts. The
training faculty members are selected based on their positive attitude towards
training assignment and their ability to communicate effectively with others. Each
faculty member is required to have thorough knowledge of his subject. The
training faculty is responsible for ensuring that the formal training activities are in
line with the organisational requirements.
71
The functional managers from various departments are invited as part-time

faculty members to share their knowledge pertaining to their disciplines. It also
helps the functional managers to remain up-to-date in their specialized functions.
On a very selective basis, they invite guest speakers in the training programmes
in such areas where they do not have sufficient expertise within the organization.
This is done with the selection of names from CEOs of top corporate houses and
professional institutes like IIM’s and IIT’s.
The training center is also well equipped with professionally qualified trainer
who are competent to conduct the management development programmes, both
at HO/Regional level.
6) Preparation Of The Trainee (Participants):
This step consists of
1 Putting the learner (trainee) at ease.
2 Stating the importance and the ingredients of the job and its relationship
to work flow.
3 Explaining why he is being taught.
4 Creating interest and encouraging questions, finding out what the learner
already knows about his job.
5 Explaining “why” of the whole job and relating it to some other job the
worker already knows.
6 Placing the learner as close to his normal working position as possible.
72
7 Familiarizing him with equipment, materials, tools, and trade terms.
7) Evaluation Effectiveness Of Training In Indian Oil
Different approaches could be adopted to evaluate the effects, impact, and

effectiveness of training. The methods may vary from an evaluation of the
perceptions on training of the trainees, supervisors, subordinates and trainers to
studying the entire training function itself. The study could encompass the cost
benefit analysis of the training or the impact it has had on productivity and
efficiency of the organization.
To understand the knowledge gained from the training and thereafter, the
transferability of this learning on the job situation and its effect on rise or fall of
productivity necessitates the availability of certain information. It is essential to
understand the level of knowledge of participants before the initiation of training
process to calculate the possible gains from training.
On the other hand, a study, which comes in after the event of training, is
necessarily constrained to study the perceptions of the trainees, trainers and the
organization with regard to effectiveness of the training effort. The perception
study is principally an after the event evaluation. The approach here is to elicit
the perception of participants after attending training programmes, on various
aspects of the programme, the learning he/she has derived from the programme
and any change in attitude, knowledge or skill level and its transferability to on-
the-job situation. The perceptions expressed by the participants are further
checked out with their superiors, subordinates, and peers.
For management training courses, session-wise evaluation is done for each

session. The overall course evaluation is done by the participants at the end of
73
each programme and the courses are modified depending upon the feedback
received. At periodic intervals, evaluation of training effectiveness is conducted
by reputed outside professional agencies like Tata Management Training Centre,
Administrative staff college of India etc. The participants attending the external
training and are required to make a formal presentation regarding the training
received along with an action plan for implementation. This ensures transfer of
knowledge for on-the-job performance. Training function also enjoys adequate
support from top management to monitor various programmes and upgrade the
same from time to time.
The post course evaluation and monitoring of functional courses is done with
the support of the respective functional groups. A high degree of innovation in
training efforts is ensured due to the above interventions.
8) Follow-up
This step is undertaken with a view to trusting the effectiveness of training

efforts. This consist of-
 Putting trainee ‘on his own’.
 Checking frequently to be sure that he/she has followed instructions.
 Tapering off extra supervision and close follow-up until he is qualified to

work with normal supervision.
Basically two types of training programmes are conducted by the training

department :
a. Functional Programme
b. Developmental Programme
74
Nature / Methods Of Training :
After the employee has been recruited, selected, and inducted, he must next
be developed to better job and the organization. No one is perfect fit at the time
of hiring and some training and education is essential. No organization has a
choice of whether to develop employees or not, the only choice it has is that of
method of development. If no organized programmes exist then development will
largely be self-development, while learning on the job. Development would
include both training to increase skill in performing a specific job and education to
increase general knowledge and understanding of the total environment. Planned
development programmes will return values to the organization in terms of
increased productivity, heightened morale, reduced costs and greater
organizational stability and flexibility to adapt to changing external requirements.
Such programmes will also help meet the needs of individuals in their search for
work assignments that can add up to life-long careers.
There are mainly two reasons for functioning training:

1. Training programmes for non managers to develop skills to perform a job.
2. Training and educational programmes designed to develop organizational
units as entities.
75
CLASSIFICATION OF TRAINING METHODS:
1. ON-THE-JOB TRAINING :
Virtually, every employee, from the assistant to company’s chairman gets
some on-the-job training when he joins a firm. Since most jobs in an industry can
be learnt is a relatively shorter period of time this method is widely used. It has
the advantage of strongly motivating the trainee to learn since it is not located in
the artificial situation of a classroom. The fact that the success of the system
depends almost entirely upon the immediate supervisor, the trainer, means that
the personnel unit has a major responsibility for making a good effective teacher
out of every supervisor.
There are a variety of on the job methods such as coaching or under study; job
rotation and special assignment under coaching or under study method (which is
also known as internship and apprenticeship method), the employee is trained on
the job by his immediate supervisor. Internship is usually applied to managerial
personnel and provides a wide variety of job experience. Apprenticeship is
generally used to impart skills requiring long periods of practice as found in trade,
crafts, and other technical fields. In job rotation, a management trainee is made
to move from job at certain intervals. The jobs vary in content. Special
assignments or committees are other methods used to provide lower level
executives with first hand experience in working on actual problems.
2. OFF-THE-JOB METHODS OR CLASS ROOM :

Off-the-job training simply means that training is not a part of every day
activity. The actual location may be in the company classrooms or in places,
which are owned by the company or in universities or associations, which have
no connection with the company. These methods consist of
76
i. Lectures
ii. Conferences
iii. Group Discussions
iv. Case studies
v. Role playing
vi. Programmed instructions
vii. T-group training
i. Lectures
Lectures are regarded as one of the simplest ways of imparting knowledge to
the trainees especially when facts, concepts or principles, attitudes, theories and
problems solving abilities are to be taught. Lectures are formal organized talks by
the training specialist, the formal superior or other individual specific topics. The
lecture method can be used for very large groups, which are to be trained within
a short time thus reducing the cost per trainee. It can be organized rigorously so
that ideas and principles relate properly.
ii. Conference Method

In this method, the participating individuals confer to discuss points of
common interests to each other. A conference is basic to most participative
group centered methods of development. It is a formal meeting; conducted in
accordance with an organized plan in which the leader seems to develop
knowledge and understanding by obtaining a considerable amount of oral
participation of the trainees. It lays emphasis on small group discussions, on
organized subject matter and on the active participation of the members involved.
iii. Seminar / Team Discussion

This is an established method for training; a seminar is conducted in many
ways. It may be based on paper prepared by one or more trainees or on a
77
subject selected in consultation with a person in charge of the seminar. It may be

part of the study or related to the critical studies or practical problems.
It may be based on the statement made by the person in charge of the seminar
or on a document prepared by an expert who is invited to participate in the
discussion.
The person in charge of the seminar distributes in advance the material to be
analysed in the form of required readings. The seminar compares the reactions
of trainees, encourages discussions, defines the general trends and guides the
participants to certain conclusions.
Iv. Case Studies

This method was first developed by Christopher Lanzdell in the 1880s at the
Harward Law School to help students to learn for themselves by independent
thinking. Case study is based on the belief that managerial competence can best
be attained through the study, contemplation, and discussion of concrete cases.
A case is a set of data, real or fictional, written or oral miniature description, and
summary of such data that present issue and problems calling for solutions or
actions on the part of the trainee. When the trainees are given case to analyse,
they are asked to identify the problems and to recommend tentative solutions for
it. In Case study method, the trainee is expected to
 Master the facts; become acquainted with the content of the case.
 Define the objectives sought in dealing with the issues in the case.
 Identify the problems in the case and uncover their probable causes.
 Develop alternative courses of action.
 Screen the alternatives using the objectives as criteria.
78
 Select the alternative that is most in keeping with the stated objectives.
v. Role – Playing
In role-playing trainees act out a given role as they would in a stage play.
Two or more trainees are assigned parts to play before the rest of the class.
These parts do not involve any memorization of lines or any rehearsals. The role
players are simply informed of the situation and of the respective roles, they have
to play. Sometimes after the preliminarily involves employee-employer relations,
hiring, firing, discussing a grievance procedure, conducting a post appraisal
interview or disciplining a subordinate or a salesman making a representation to
a customer.
Vi. Programmed Instruction (Teaching By The Machine Method)

Programmed Instruction involves a sequence of steps, which are often set
up through the central panel of an electronic computer as guides in the
performance of desired operation or series of operations. It incorporates a pre-
arranged, proposed or desired course of proceedings pertaining to the learning
or the acquisition of some specific skills or general knowledge, a programmed
instruction involves breaking information down into meaningful units and
arranging these in a proper way to form a logical and sequential learning
programme or package.
vii. T-Group Training

This usually comprises association, audio-visual aids and planned reading
programmes. Members of a professional association receive training by it in new
techniques and ideas pertaining to their own vocations through a regular supply
of professional journals and informal social contacts or gatherings, members are
kept informed of the latest development in their particular fields. Audio-visual
aids-records, tapes and films are generally used in conjunction with other
conventional teaching methods. Planned and supervised reading programmes
79
are conducted; technical publications and the latest journals are kept in the
library for the use of the trainees.
3. VESTIBULE TRAINING :
This method attempts to duplicate on the job situations in a company
classroom. It is a classroom training, which is often imparted with the help of the
equipment, and machines, which are identical with those in use in the work
place. This technique enables the trainee to concentrate on learning the new skill
rather than on performing an actual job. It is a very essential method of training
semi-skilled personnel, particularly when many employees have to be trained for
the same kind of work at the same time.
80
Conclusion:
Training has played a very important role in helping Indian Oil to reach the
commanding heights of performance. Any training would be considered
successful only when the knowledge gained by the participants is
transferred to the job performance. In addition, Indian Oil is been very
successful in doing that.
Indian Oil has a very strong base of human resource development and
training, it has percolated right form the top to the bottom levels, and this had
played a role in more systematic organization development. The training
programmes have helped their employees to improve their skill and efficiency
because of which they are able to undertake new challenges in their work. The
training and development programmes held in Indian Oil helped their employees
to know theirs strength and weaknesses and helped them to work on their
weaknesses.
81

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Training and Development- Indian Oil

Every organization needs to have well trained and experienced people to

successful only when the knowledge gained by the participants is transferred to

The impact of training programme is to mould the employee’s attitude and

According to Flippo, “Training is the act of increasing knowledge and skills of

Another way of defining training would be a planned programme designed to

Management development is an attempt at improving an individual’s

“All development is self development. It must be generated within the main

Training constitutes an important component of overall Human Resource

The employees should be familiar with the latest technological developments,

One of the basic philosophies of the training programmes is to bring together

After employees have been selected for various positions in an organization,

o Increase knowledge and skill for doing a job.

o Bridge the gap between job needs and employee skills.

o Job oriented process, vocational in nature

o Short-term activity designed especially for operatives.

The overall training objective is to develop required knowledge, skills, and

2. To Equip Employee To Meet The Changing Requirement Of The Job And

3. To Teach The Employees The New Technique And Ways Of Performing

4. To Prepare Employees For Higher Level Task And Build Up A Second

Training and Development programmes help remove performance

• The deficiency is caused by a lack of ability rather than a lack of

• The individual(s) involved have the aptitude and motivation needed to

• Supervisors and peers are supportive of the desired behaviours.

There is greater stability, flexibility, and capacity for growth in an organization.

Training Is An Investment In Human Resource With A Promise Of Better

A company is training and development pays dividends to the employee and

Role And Scope Of Training

Need For Training

3. To Help A Company Fulfill Its Future Personnel Needs:

4. To Improve Organisational Climate:

5. To Improve Health And Safety:

Training is the corner-stone of sound management, for it makes employees

Training Methods/ Techniques

The forms and types of employee training methods are inter-related. It is

• Provide motivation to the trainee to improve job performance,

• Develop a willingness to change, provide further trainee’s active

• Provide a knowledge of results about attempts to improve (i.e.

VARIOUS TRAINING TECHNIQUES

Employees are coached and instructed by skilled co-workers, by supervisors,

This method attempts to duplicate on-the-job situations in a company

It is a very efficient method of training semi-skilled personnel, particularly

Training is generally given in the form of lectures, conferences, case studies,

The various advantages of vestibule training are:

• As training is given in a separate room, distractions are minimized.

• A trained instructor, who knows how to teach, can be more effectively

• The correct method can be taught without interrupting production.

• It permits the trainee to practice without the fear of the supervisors/

This method consists of:

In training, the most important uses of lectures include:

• Reducing anxiety about upcoming training programmes or

• Introducing a subject and presenting an overview of its scope.

• Presenting basic material that will provide a common background for

• Illustrating the application of rules, principles; reviewing, clarifying

• The main advantage of lecture system is that it is simple and efficient

dogmatism and modifying attitudes because the participants develops

• It may be based on a paper prepared by one or more trainees on a

• It may be based on the statement made by the person incharge of

• The person incharge of the group discussion distributes in advance

EVALUATION OF TRAINING PROGRAMME

Objectives of training evaluation is to determine the ability of the participant in

Evaluation of the training programme must be based on the following principles: