A SUMMER TRAINING PROJECT REPORT ON INDUSTRIAL RELATION

AT

INDIAN OIL CORPORATION LIMITED

IN HARMONY WITH NATURE
SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT OF

POST GRADUATE DIPLOMA IN MANAGEMENT

UNDER THE GUIDANCE OF
R.P.BHAGAT

SUBMITTED BY
USHA KUMARI

IIMT COLLEGE OF MANAGEMENT GREATER NOIDA

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PREFACE
Knowledge has two aspects - theoretical and practical and no theoretical concept is complete without having knowledge of its practical application. A few weeks professional training programme was introduced as a part of curriculum of P.G.D.M. This summer training programme proves beneficial to the future managers as they are confronted with the problems of actual work environment during their training period.

As per the curriculum requirement , I did 6 weeks training in INDIAN OIL CORPORATION LTD. In INDIA, BARAUNI. Working in such a big concern, no matter for a very small period was really a matter of pride. My area of work in that concern was confined to Human resource department and moreover it was not possible for me to cover all the areas of human resource department in such a short period of time so I concentrated my working on the project assigned to me i.e. INDUSTRIAL RELATION. So the learning during the training in INDIAN OIL CORPORATION LTD., a report of that is being presented in the following pages.

USHA KUMARI
IIMT COLLEGE OF MANAGEMENT

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ACKNOWLEDGEMENT
Intention, dedication, concentration and work are very much essential to complete any task. But still it needs lot of support, guidance, co-operation of people to make it successful. Heart full thanks to all the respective persons who support and guide me. I have no words to express a deep sense of gratitude to the management of INDIAN OIL CORPORATION LIMITED for giving me an opportunity to pursue my internship. I sincerely thank Mr. R.P.Bhagat for giving me more than just a training place and an opportunity for understanding of what is ³a good professional culture´ I express my deep sense of indebtness towards Mr. William Kullu (Senior human resource Manager, Barauni region) for providing me valuable information. I am also thankful to the officers of training and development department.

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a bonafide student of IIMT COLLEGE OF MANAGEMENT. USHA KUMARI IIMT COLLEGE OF MANAGEMENT Page 4 .USHA KUMARI DECLARATION I USHA KUMARI . (3rd Semester) hereby declare that the Project entitled ³INDUSTRIAL RELATION´ is an original work and the same has not been submitted by any other student of my class. PGDM .

Machineries for redressing the grievances 5. In keeping consideration the Barauni Refinery i. I can say that workers and employees are satisfied at the great extent and there is not any strike from January 2009. Without it the organization can¶t get profit. I can say that the employees and the workers are the really the backbone of IOCL. I broadly concentrated on the cordial relationship between the management and worker.R.OBJECTIVE OF THE STUDY My topic is I. In the context of Barauni Refinery. The objective of my study is very broad. As a matter of fact.e the part of IOCL. 2. at the end I want to conclude as the objectives of my study are: 1. Also my guide told me that lockout. Types of grievances arised in ref 4. the industrial relation. no one organization can survive in the long run. So. IIMT COLLEGE OF MANAGEMENT Page 5 . Working conditions of plant 6. The condition of Trade Unions nery 3. Payment and other factors. layoff and retrenchment having no any relevance in the Barauni Refinery. the relationship between the employer and employee on the basis of certain terms and conditions of employment. As we know that employees are the assets of the organization and without giving proper attention and satisfaction to the employees. Cause and success of cordial relationship between the employer and employee.

So. which is broadly related with the relationship between the employer and employee with the terms and conditions of employment. incentives schemes. In order to enhance productivity and satisfying the employees. Without satisfying the employees.R. they have to maintain a cordial relationship between employees. IIMT COLLEGE OF MANAGEMENT Page 6 . the organization can¶t go in the long run and can¶t compete with its competitors. In order to satisfy employees and manager must have to adopt motivational factors.SCOPE OF THE STUDY The relationship between employer and employee is the most important relationship in the corporate world. My topic is I.R is very broad topic in present scenario. every company want to enhance its productivity. So that. The positive relationship between both of them is effective technique for the growth of the organization. One of the most important and the challenging task of the manager is to satisfy employee to a large extent and to minimize their conflicts. But the productivity can¶t be improved unless and until the employees are not satisfied. they can survive in the long run and can compete with its competitors. the I. It would almost impossible to increase the production without greatest co-operation between employer and employee. employer and Government.

INDUSTRIAL RELATION Analysis is a post mortem of the organization¶s Industrial relation system. Its helps in understanding the actual condition of workers in BARAUNI REFINERY. I analyzed the different aspects of industrial relation at Barauni Refinery. The report includes the concepts of industrial relation. The engraved data is collected from various websites. My prime objective is to interpret the policies and procedures adopted in maintaining the industrial relation.EXECUTIVE SUMMARY My project is based on ³INDUSTRIAL RELATION´ at Indian Oil Corporation Limited. In this study. BARAUNI. It measures the ability of the organization to meet the requirement of both employers and employees efficiently or not. My analysis of the study undertaken is quite satisfactory which shows that refinery has proper system of maintaining industrial relation. I had used Descriptive Research Design. In this project. the causes of different grievances in the organization and the methods and procedures of their redressal with the help of different laws of Indian Government. monthly periodicals and different time periods. This research design is about the characteristics of particular things. IIMT COLLEGE OF MANAGEMENT Page 7 . manuals.

RESEARCH METHODOLOGY A) Research Methodology B) Object ive of the study C) Research Design D) Method of Data Collect ion / Survey period 50-53 CHAPTER 4.ANALYSIS & INTERPRETATION 55-59 CHAPTER 5.INTRODUCTION OF THE TOPIC 42-49 CHAPTER 3. CHAPTER 1.INTRODUCTION OF THE COMPANY A) Introduction of the company B) SWOT ANALYSIS C) Introduction of Barauni Refinery 7-40 CHAPTER 2.CONTENTS PARTICULARS PAGE NO.CONCLUSION 60-66 BIBLIOGRAPHY 66 IIMT COLLEGE OF MANAGEMENT Page 8 .

CHAPTER ± 1 A) COMPANY¶S INTRODUCTION B) INTRODUCTION OF BARAUNI REFINERY IIMT COLLEGE OF MANAGEMENT Page 9 .

formed in August with Mr Feroze Gandhi as the Chairman. 1958  Indian Refineries Ltd. when the Indian government deregulated its petroleum industry and ended Indian Oil's monopoly on crude oil imports. 1959  Indian Oil Company Ltd. established on 30th June 1959 with Mr S. That changed in April 2002.INTRODUCTION 0F THE COMPANY HISTORY OF INDIAN OIL CORPORATION LTD. and international trading company served the Indian state with the important task of reducing India's dependence on foreign oil and thus conserving valuable foreign exchange. Nijalingappa as Chairman. a government entity that owns just over 90 percent of the firm. the IIMT COLLEGE OF MANAGEMENT Page 10 . The oil concern is administratively controlled by India's Ministry of Petroleum and Natural Gas. however. The firm owns and operates seven of the 17 refineries in India. The Indian Oil Corporation Ltd. controlling nearly 40 percent of the country's refining capacity. marketing. this refining. operates as the largest company in India in terms of turnover and is the only Indian company to rank in the Fortune "Global 500" listing. Since 1959.

merged with Indian Oil Company with effect from 1st September. 1967 IIMT COLLEGE OF MANAGEMENT Page 11 . 1965  Gujarat Refinery inaugurated by HE Dr. Jawaharlal Nehru.390 tonnes of Diesel for IndianOil docked at Pir Pau Jetty in Mumbai on 17th August 1960. 1964. Barauni-Kanpur product pipeline and Koyali.  Construction of Barauni Refinery commenced.  The first petroleum product pipeline from Guwahati to Siliguri commissioned.1960  Agreement for supply of Kerosene and Diesel signed with the USSR. S.  IndianOilPeople maintained the vital supply of Petroleum products to Defence Services during Indo-Pak war.Radhakrishnan. Hon¶ble Prime Minister of India. and Indian Oil Company renamed as Indian Oil Corporation Ltd.Ahmedabad product pipeline commissioned.  MV Uzhgorod carrying the first parcel of 11. 1963  Foundation laid for Gujarat Refinery  Indian Oil Blending Ltd. President of India.  Barauni Refinery commissioned. 1964  Indian Refineries Ltd. 1962  Guwahati Refinery inaugurated by Pt. (a 50:50 Joint Venture with Mobil) formed.

The same was offloaded in favour of the President of India in 1972. Ltd. 1971  Dealership/reservation extended to war widows. products commences. 1970  Acquired 60% majority shares of IBP Co. 1972  R&D Centre established at Faridabad. launched. 1973 IIMT COLLEGE OF MANAGEMENT Page 12 . disabled Defence personnel. Bombay-Pune and Bombay-Manmad Pipelines submitted to Government. Haldia Barauni product pipeline commissioned.Bitumen and marine bunkering businesses commenced. 1968  Techno-economic studies for Haldia-Calcutta. etc. 1969  Marketing of Madras Refineries Ltd. the first indigenous lubricant. for the first time after the Indo-Pak war. freedom fighters.  SERVO.

Indira Gandhi.  Marketing Division attained a new watershed with market participation of 64. Multipurpose Distribution Centres introduced at 132 Retail Outlets pioneering rural convenience. Hon¶ble Prime Minister of India. 1982 IIMT COLLEGE OF MANAGEMENT Page 13 . 1978  Phase-wise commissioning of Salaya-Mathura crude oil pipeline begins. 1981  Digboi Refinery and Assam Oil Company's (AOC) marketing operations vested in IndianOil and it became Assam Oil Division (AOD) of IndianOil. 1975  Haldia Refinery commissioned.2%. 1977  Nutan wick stove launched by R&D Centre. Foundation-stone of Mathura Refinery laid by Mrs. 1974  Indian Oil Blending Ltd. became the wholly-owned subsidiary.

1984  Taluka Kerosene Depots (TKDs) commissioned for improved availability of kerosene in rural and hilly areas in addition to Multipurpose DistributionCentres.  Foreshore Terminal at Kandla Port commissioned. 1983  Massive augmentation of LPG storage and distribution facilities undertaken.  Proposal for the 6 MMTPA Refinery at Karnal submitted. 1985  New office complex for Registered Office of the Corporation and HeadOffice of Marketing Division in Mumbai completed.  Integrated Corporate Planning ± a 10-year Perspective Plan and 5-year Long Range Plan ± initiated. 1986  A new Foreshore Terminal at Madras commissioned. Mathura Refinery and Mathura-Jalandhar Pipeline commissioned. 1987  Test marketing of 5 kg LPG cylinders begins in 1986-87 in Garo Hills and Kumaon. 1989 IIMT COLLEGE OF MANAGEMENT Page 14 .

long Kandla-Bhatinda product pipeline commissioned.443 km. 1995  1. 1990  Kandla-Bhatinda product pipeline project approv  First LPG Bottling Plant of Assam Oil Division (AOD) commissioned at Silchar.  Vision-2000. Salaya-Mathura crude oil pipeline suitably modified for handling Bombay High Crude during winter. 1991  Digboi Refinery modernisation project initiated.  Bunkering facility at Paradip commissioned. 1994  India's first Hydrocracker commissioned at Gujarat Refinery. IIMT COLLEGE OF MANAGEMENT Page 15 . the Retail Visual Identity programme launched to upgrade retail outlets.  First lndane Home Shoppe launched. 1993  New era Micro-processor based Distributed Digital Control Systems replacing the pneumatic instrumentations began in refineries.

 First batch of one-year International MBA (iMBA) programme passes out of IndianOil Institute of Petroleum Management (IIPM).  The Administrative Pricing Mechanism (APM) was withdrawn from the Refining Sector effective 1" April 1998.  Manthan -.000 Crore -. organised by Indian Oil on behalf of the oil Industry. 2000  Indian Oil crossed the turnover of the magical mark of Rs l . Phase-wise dismantling of APM began. IIMT COLLEGE OF MANAGEMENT Page 16 .1996  State-of-the-art LPG Import Terminal at Kandla (capacity of 6.  JNPT Terminal was commissioned.  Diesel Hydro-desulphurisation Units commissioned at Gujarat. Barauni Crude Oil Pipeline (HBCPL) was completed. 1998  Panipat Refinery was commissioned.000 tonnes per annum) commissioned. 1999  Indian Hydrocarbon Vision -2025" was announced at PETROTECH-99.the first Corporate in India to do so. Panipat.  Indian Oil entered into Exploration & Production (E&P) with the award of two exploration blocks to Indian Oil and ONGC consortium under NELP-1  Y2K compatibility achieved. Mathura and Haldia Refineries.00.the IT re-engineering project was launched. 1997  Business Development received renewed thrust with new functional group.  Indian Oil enters into LNG business through Petronet LNG -a JV company.  Haldia.00.

(CPCL) and Bongaigaon Refinery and Petrochemicals Ltd.  New generation auto fuels IOC Premium and Diesel Super introduced. Retail operations began in Sri Lanka. (LIOC) launched in Sri Lanka.  Fluidised Catalytic Cracker Unit at Haldia Refinery was commissioned. (LIOC) launched in Sri Lanka. was acquired with management control.  Chennai Petroleum Corporation Ltd.8 MMTPA completed. Ltd. was introduced in select states.  INDMAX unit at Guwahati Refinery commissioned.  IBP Co. 2003  Lanka IOC Pvt.2001  Digboi Refinery completed 100 years of continuous operation. Ltd. IIMT COLLEGE OF MANAGEMENT Page 17 . Lanka IOC became an independent oil company in Sri Lanka  Gasahol.  Eight Exploration blocks awarded to the Indian Oilled consortium under NELP-II. Ltd.¶s 18 TMT state-of-the-art Oil Storage Terminal at Mer Rouge commissioned Lanka IOC Pvt. (BRPL) were acquired. 2002  APM dismantled.  Barauni Refinery expansion project completed. 5% ethanol blended petrol. Pricing of Petroleum products decontrolled.  Augmentation of Kandla-Bhatinda Pipeline (KBPL) to 8. Indian Oil Mauritius Ltd. Indian Oil became the first Indian Petroleum Company to begin downstream marketing operations in overseas market. 2004    Indian Oil turned a Gas marketer by sale of regasified LNG.

IIMT COLLEGE OF MANAGEMENT Page 18 . INDMAX unit at Guwahati Refinery commissioned.  Concept of SERVOXpress Centres as one-stop shops for autocare services launched.  Mundra-Panipat crude oil pipeline with facilities for handling heavy crude oil commissioned. 5% ethanol blended petrol. Ltd. merged with parent company.    Indian Oil breached the Rs 150. the chartering wing of the Ministry of Shipping. Indian Oil allowed by Government of India to charter crude oil ships on its own instead of going through Transchart. 000 crore mark in sales turnover by clocking Rs 150. 677 in turnover in fiscal 2004. 2007  Marketing subsidiary IBP Co.    Gasahol.  Indian Oil's Mathura Refinerywas the first refinery in India to attain the capability of producing entire quantity of Euro-III compliant diesel by commissioning the Rs 1046 crore DHDT (Diesel hydrotreating unit). Foundation Stone of Panipat Refinery Expansion and PX/PTA projects laid. was introduced in select states. 2006  Panipat Refinery capacity enhanced from 9 to 12 MMTPA  World-scale Paraxylene/Purified Terephthalic Acid (PX/PTA) plant commissioned at Panipat as mother plant for polyester industry  Chennai-Trichy-Madurai product pipeline dedicated to the nation. Maiden LPG supplies to Port Blair. Indian Oil signed a JV agreement with GAIL to enter the city gas distribution projects in Agra and Lucknow. 2005  The year marked Indian Oil's big ticket entry into the high stakes business of E&P.

  Lanka IOC commissions Lube Blending Plant and laboratory for testing fuels and lubricants at Trincomalee Concept of µLNG at the doorstep¶ launched for customers located away from gas pipelines 2008   SERVO lubricants launched in Oman. IIMT COLLEGE OF MANAGEMENT Page 19 . IndianOil Chairman elected as President of World LP Gas Association.

Management Chairman B M Bansal Chairman & Director (Planning & Business Development and R&D) Board of Directors S V Narasimhan Director (Finance) V C Agrawal Director (Human Resources) & Director-in-charge (IBP Division) G C Daga Director (Marketing) B N Bankapur Director (Refineries) K K Jha Director (Pipelines) P K Sinha Additional Secretary & Financial Advisor Ministry Of Petroleum & Natural Gas IIMT COLLEGE OF MANAGEMENT Page 20 .

) Indira J. Pune Anees Noorani Managing Director. Gautam Barua.Guwahati N. Indian Institute of Technology. Ahmedabad and President. Michael Bastian Former Chairman & Managing Director.Sudhir Bhargava Additional Secretary Ministry of Petroleum & Natural Gas Prof.(Mrs.K. FLAME.(Mrs. Syndicate Bank Dr. Zodiac Clothing Company Ltd. Parikh Former Prof. Kolkata Raju Ranganathan Company Secretary Principal Executives D K Samantaray Chief Vigilance Officer IIMT COLLEGE OF MANAGEMENT Page 21 . HR College of Commerce & Economics.) Indu Shahani Principal. Director. IIM. Poddar Senior Advocate. Mumbai and Sheriff of Mumbai Prof.

D Lilly V S Okhde A S Ujwal S Ramasamy S C Meshram R S Solanki A K Marchanda N K Gupta S K Sarangi Internal Audit Corporate Finance Finance-Business Development Corporate Affairs IndianOil Institute of Petroleum Management Human Resources Development Corporate Planning & Economic Studies Safety.Vipin Kumar Advisor (Security) Executive Directors (Corporate Office) V P Sharma V K Sood S C Jain R Narayanan K K Gupta Thomas Antony A M K Sinha N K Khosla Satish Kumar Ms.PNCP Human Resources Safety & Environment Maintenance & Inspection Projects IIMT COLLEGE OF MANAGEMENT Page 22 . IndianOil Foundation Gas Optimisation Renewable Energy Executive Directors (Refineries Division Headquarters) P K Goyal H V Singh N K Bansal N K Khosla Sudhir Bhalla A Panda C S Das U L Dohare Finance (incharge) Incharge Projects PDRP Shipping Projects . Health & Environment Human Resources Pricing & Taxation Exploration & Production International Trade Information Systems Petrochemicals CEO.

Panipat Bongaigaon Refinery Panipat Refinery Barauni Refienery Projects PDRP Site Executive Directors (Pipelines Division) T Vasudevan A K Rauniar Anil Tandon S K Sinha B V Jankiram Finance Human Resources Projects PLHQ Western Region Pipelines Operations Executive Directors (Marketing Division Headquarters) Gautam Datta Gautam Dutta N K Bansal Amitava Chatterjee R Sareen M Nene Incharge Finance Human Resources S&EP Lubes Aviation Supplies IIMT COLLEGE OF MANAGEMENT Page 23 .PDRP Finance Executive Directors (Refineries Division) J P Guharay A K Roy G Bhanumurthy R K Ghosh P Sur S N Choudhary A Saran Ashwini Sharma M K Padia M Vijayawergia Mathura Refinery Haldia Refinery Guwahati Refinery Incharge Panipat Refinery Gujarat Refinery Projects-PNCP.A S Basu S K Garg V K Bansal R Shankar Operations Information Systems Finance .

K P Naithani Incharge R&D Lube Technology Executive Directors (IBP Division) S K Roy V Ramaswamy Cryogenics Finance IIMT COLLEGE OF MANAGEMENT Page 24 .Mrinal Roy N Srikumar S K Gupta V K Jeychandran Satwant Singh M Ramana D Sen Deepak Pandya E Unnikrishnan H S Bedi DSL Prasad P D Bhaukhandi S Krishna Prasad Engineering Andhra Pradesh State Office Consumer Sales Gujarat State Office LPG Operations West Bengal State Office Maharashtra State Office Coordination/Pricing/Planning Retail Sales Tamil Nadu State Office QC Finance Executive Directors (Assam Oil Division) Subrato Ghosh Assam Oil Division. R K Malhotra Dr. Digboi Executive Directors (R&D Centre) Dr.

At Indian Oil. By 2011- 12. (Estd. The Corporation¶s objectives in this key performance area are enshrined in its Mission statement: "«to help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience´   . 2. 1959) and Indian Refineries Ltd. (Indian Oil) was formed in 1964 through the merger of Indian Oil Company Ltd.INDIAN OIL CORPORATION LTD. corporate social responsibility (CSR) has been the cornerstone of success right from inception in the year 1964. (Indian Oil) is India's largest commercial enterprise.250 crore in the next five years.18 crore and sales of 1.   Indian Oil Corporation Ltd. 6. with a sales turnover of Rs. 1958). having moved up 19 places to the 116th position in 2008. 45. with 80 MMTPA refining capacity in its fold.38 million tonnes valued at Rs. IIMT COLLEGE OF MANAGEMENT Page 25 . would be playing a key role in realising India¶s bid to emerge as an export-oriented hub for finished products.  Indian Oil is also the highest ranked Indian company in the prestigious Fortune 'Global 500' listing.963 crore (US $ 1. 78 crore in the year 1965. the Indian Oil Group.47. Indian Oil has since grown over 3000 times. 43.479 crore (US $ 61. It is also the 18th largest petroleum company in the world. Indian Oil Corporation Ltd.74 billion) for the year 2007-08. (Estd.  Indian Oil has ambitious investment plans of Rs.From a fledgling company with a net worth of just Rs.70 billion) and profits of Rs.

While quality. Indian Oil is widely recognized as India¶s dominant energy brand and customers perceive Indian Oil as a reliable symbol for high quality products and services. Benchmarking Quality. Indian Oil is a heritage and iconic brand at one level and a contemporary.  Autogas  Indian Oil Aviation Service  Bitumen  High Speed Diesel  Bulk / Industrial Fuel  Indane Gas  SERVO Lubricants & Greases  Marine Fuels & Lubricants  MS / Gasoline  Petrochemicals  Special Products IIMT COLLEGE OF MANAGEMENT Page 26 .PRODUCTS Indian Oil is not only the largest commercial enterprise in the country it is the flagship corporate of the Indian Nation. Besides having a dominant market share. global brand at another level. Quantity and Service to world-class standards is a philosophy that Indian Oil adheres to so as to ensure that customers get a truly global experience in India. reliability and service remains the core benefits to the customers.

 Superior Kerosene Oil  Crude Oil INDIAN OIL PERFORMANCE 2008-2009

The Corporation's refineries surpassed 100% capacity utilisation and clocked the highest ever throughput of 51.4 million tonnes. Breaching the 10,000 km mark in length, the pipelines network registered the highest ever operational throughput of 59.5 million tonnes of crude oil and petroleum products. During the year 2008-09, IndianOil's sales volume registered a growth of 5.6% and went up to an unprecedented 62.6 million tonnes of petroleum products as compared to 59.30 million tonnes during the previous year. Sales of natural gas also went up to 1.7 million tonnes in 2008-09. In addition, product exports rose to 3.64 million tonnes from 3.38 million tonnes in the previous year. Among new businesses, Natural Gas marketing and Petrochemicals generated revenues of Rs. 2425 crore and Rs. 2760 crore during the year 2008-09.

Core Performance
Financial Performance  IndianOil¶s gross turnover (inclusive of excise duty) for the year 2008-09 reached a new high of Rs. 2,85,337 crore up by 15.3% as compared to Rs. 2,47,457 crore in the previous year. The Profit After Tax was Rs. 2,950 crore.  For the year 2008-09, IndianOil has received Special Oil Bonds worth Rs. 40,383 crore from the Government of India in addition to Rs. 18,210 crore received from upstream companies towards subsidy-sharing.

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The Gross Refining Margin for April-March 2009 is USD 3.69 per barrel as compared to USD 9.02 per barrel during the previous year

Marketing   IndianOil maintained its dominance in the market place and clocked the highest ever level of sales during the year 2008-09. Domestic sales grew by 5.6% from 59.30 million tonnes in the previous year to 62.6 million tonnes in the year 2008-09. Refineries  For the year 2008-09, IndianOil's eight refineries achieved the highest ever throughput of 51.4 million tonnes and 103.4% capacity utilisation, registering 8.4% growth in crude oil processing over the previous year.  IndianOil refineries clocked the lowest overall specific energy consumption of 64 MBTU/BBL/NRGF (MBN) during the year as against 67 in 2007-08. IndianOil imported a record quantity of 47.8 million tonnes of crude oil in 2008-09 as against 46.11 million tonnes in 2007-08.  During the year, IndianOil entered into term contracts with Angola and Brunei for import of low sulphur crude oil and over 95% of the LPG imports were finalised through term contracts. Pipelines  During the year, IndianOil's network of underground highways breached the 10,000 kilometre mark and registered the highest ever operational throughput of 59.5 million tones.   Compared to the previous year, the crude oil pipelines registered a 6.7% growth at 38.2 million tonnes. The year was marked by the commissioning of a record number of pipeline projects, the foremost being the Paradip-Haldia crude oil pipeline and IndianOil's first PanipatJalandhar LPG pipeline.  Other projects commissioned during the year include the Koyali-Ratlam product pipeline, ATF Pipeline from CPCL (Manali) to Chennai AFS . IIMT COLLEGE OF MANAGEMENT

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Projects   

IndianOil is implementing projects of over Rs. 60,000 crore currently. Major ones among

them are: 15 MMTPA refinery at Paradip (Rs. 29,777 crore); capacity augmentation of Panipat Refinery (from 12 to 15 MMTPA, Rs. 1007.83 crore); MS quality improvement projects at Panipat (Rs. 1,131 crore),

New Businesses 

IndianOil took big strides in new businesses during the year 2008-09.

VARIOUS DIVISIONS OF IOCL
REFINERIES DIVISION
Indian Oil controls 10 of India¶s 18 refineries ± at Digboi, Guwahati, Barauni, Koyali, Haldia, Mathura, Panipat, Chennai, Narimanam and Bongaigaon ± with a current combined rated capacity of 54.20 million metric tones per annum (MMTPA)* (one million barrels per day). Indian Oil registered a record throughput of 36.63 millions tones during the year 2004-05 with a capacity utility of 88.6%. Indian Oil accounts for 42% of India¶s total refining capacity. Overall Energy consumption of Indian Oil

refineries was lowest at 109 MBTU/BBL/NRGF against earlier best of 111, achieved in 2003-04. Gross Refining Margin (GRM) rose by almost one dollar per barrel during the year 2004-05. It is expected to be the highest at US$ 6.25/bbl for the year 2004-05 as against $5.30/bbl in 2003-04. All refinery units are accredited with ISO 9002 and ISO 14001 certifications.

DIGBOI REFINERY (UPPER ASSAM)
The Digboi Refinery in North Eastern India is India¶s oldest refinery and was commissioned in 1901. Originally a part of Assam Oil Company, it became part of Indian Oil in 1981, its original refining capacity has been 0.5 MMTPA since 1901. IIMT COLLEGE OF MANAGEMENT

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The Digboi refinery produces distillates.0 MMTPA through debottlenecking projects. GUWAHATI REFINERY The Guwahati Refinery in North East India ± the first Public Sector refinery of the country-was commissioned in 1962 with a capacity of 0.70.000 TPA capacity was commissioned in 1999. Matching secondary processing facility such as RFCC (Resid Fluidised IIMT COLLEGE OF MANAGEMENT Page 30 . A new solvent dewaxing unit for maximizing production of microcrystalline wax was installed and commissioned in 2003.65 MMTPA. In 2003. motor spirit and diesel oil. heavy ends and excellent quality wax from indigenous crude oil produced at the Assam Oil fields.The refinery processing only indigenous crude oil from the Assam oil fields. the refinery installed an IndMax Unit a novel technology developed by Indianoil¶s R & D center for upgrading heavy ends into LPG. It supplies petroleum products to North-Eastern India and surplus products onwards to Siliguri in West Bengal in 2003. BARAUNI REFINERY C further to its current capacity of 6.0 MMTPA through low cost revamping and debottlenecking.Modernization project of this refinery has been completed and the refinery now has an increased capacity of 0. Hydrotreater unit for improving the quality of diesel has been commissioned in 2002.75 MMTPA which was subsequently increased to 1. Petroleum products are supplied mainly to northeastern India primarily through road and by rail wagons. The refinery has also installed Hydrotreater to improve the quality of diesel. A new Delayed Coking Unit of 1.

Through a product pipeline to Ahmedabad and a recently commissioned product pipeline connecting to BKPL product pipeline and also by rail wagons/trucks. the refinery now received imported crude for processing. It is situated 136 km downstream of Kolkata in the district of East Midnapur. The refinery was commissioned in 1965. Subsequently the crude capacity was increased to 9. its processing capacity was further increased to 7. near the confluence of river Hoogly and river IIMT COLLEGE OF MANAGEMENT Page 31 . Its facilities include five atmospheric crude distillation units. FCCU and the first Hydro cracking unit of the country. A CRU (Catalytic Reformer Unit) was also added to the refinery in 1997 for production of unleaded motor spirit. Since it has been increased to its present capacity of 13.Catalytic Cracker) and hydrotreater facilities for diesel quality improvement have been added. The major units include CRU.5 MMTPA by 1990 and then by 12. Barauni refinery supplies distillate products beside eastern India to northern India through a product pipeline to Kanpur in Uttar Pradesh. In 1978. With the commissioning of the 6. GUJARAT REFINERY The Gujarat Refinery at Koyali in Gujarat in Western India is IndianOil¶s largest refinery.5 MMTPA in 1999.3 MMTPA by the addition of a crude distillation unit. Projects are also planned for meeting future fuel quality requirements. West Bengal.70 MMTPA by low cost debottlenecking.3 MMTPA by the revamping of three distillation Units.When commissioned. It was increased to 4. the Gujarat refinery had a design capacity of 3. the fourth in the chain of seven operating refineries of IndianOil.0 MMTPA. was commissioned in January 1975. the refinery primarily serves the demand for petroleum products in Western and Northern India.0 MMTPA Haldia-Barauni crude oil pipeline. HALDIA REFINERY Haldia Refinery.

A hydro cracker for increasing middle distillates was also completed in 2000. RFCC.0 MMTPA capacity. commissioned in 1998.Haldi.25%wt.0 MMTPA.Products like MS. With augmentation of this unit. refinery is producing BS-II and Euro-III equivalent HSD at present. MATHURA REFINERY The Mathura Refinery was commissioned in 1982 with an original capacity of 6. in the state of Haryana in Northern India. tank wagons and tank trucks.5 MMTPA. the refinery mainly produces middle distillates and supplies them to Northern India through a product pipeline to Jalandhar. Punjab via Delhi. With its fluid catalytic cracking units.75 MMTPA in 1997 with the installation/commissioning of second Crude distillation unit of 1. CCRU (Continuous Catalytic Reformer unit) besides other secondary treatment units. PANIPAT REFINERY IndianOil¶s seventh refinery. In order to meet future fuel requirements. for production of low sulphur content (0. The present capacity of the refinery is 8 MMTPA. which also takes into IIMT COLLEGE OF MANAGEMENT Page 32 . Petroleum products from this refinery are supplied to eastern India through two product pipelines as well as through Barges. The main units are OHCU (Once-through-hydro cracker). 125 kms away from Delhi. The product to increase the capacity of Panipat refinery to 15 MMTPA is already under implementation. The refinery had an original crude oil processing capacity of 2. HSD and Bitumen are exported from this refinery.Refinery was increased to 2. the capital of India.Diesel Hydro Desulphurisation (DHDS) unit was commissioned in 1999.5 MMTPA by debottlenecking and revamping. The capacity was increased to 7.75 MMTPA through de-bottlenecking in 1989-90.) High Speed Diesel. facilities for improvement in quality of MS & HSD are under installation and planned to be completed by 2005. This 6 MMTPA refinery caters to the high demand centers of Northern India. Refining capacity was further increased to 3. is located at Panipat.

it has successfully perfected the state-of-the-art lube formulation technology meeting latest national and international specifications with approvals from major original equipment manufacturers. Indian Oil markets around 450 grades of It has lubricants under the brand name ³SERVO´ based on its R&D technology. The expansion project is expected to be completed in 2005. It is one of its kind in Asia and has grown into a major technological development center of international repute in the down stream areas of lubricants.000 sales points (the largest in the country RESEARCH & DEVELOPMENT DIVISION Indian Oil owns world-class ³research and development´ centre headed by Director. Indian Oil¶s Marketing Network is spread throughout the country with over 23.2% of India¶s petroleum consumption. Over the years. extensive laboratory and pilot plant facilities to successfully pursue projects in lube. IIMT COLLEGE OF MANAGEMENT Page 33 . It provides services to all other divisions of the Corporation and bin that sense it is a form of ³SHARED SERVICE UNIT. Indian Oil caters to over 53. the Indian Oil R & D Centre at Faridabad near New Delhi has completed around 30 years of glorious service to the nation. The Marketing Division has set up various marketing terminals where storage tanks are built up to hold the products. which charges the Marketing Division for the same. The petroleum products are transferred to the marketing terminals by the Pipelines Division.account future fuel quality requirements for 2005. pipelines and refining processes.´ Established in 1972 for the development of lube as well as refining process technologies. MARKETING DIVISION The Marketing Division of IOCL handles the responsibility of delivering petroleum products to the customers.

some of which have received prestigious national and international awards. To foster a culture of participation and innovation for employee growth and contribution. To cultivate high standards of business ethics and Total Quality Management for a strong corporate identity and brand equity. Creativity and innovative research has led to technological innovations. It owns one petrol pump on the Delhi-Mathura Road.refining and pipeline areas making it a unique technology centre. value and satisfaction for the stakeholders. IIMT COLLEGE OF MANAGEMENT Page 34 . and cost reduction. Its rich reservoir of highly qualified / specialized scientific and technical manpower has elevated this center to global status. To help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience. It is kept as a separate division in IOCL. To attain leadership in developing. To provide technology and services through sustained Research and Development. To maximize creation of wealth. ASSAM OIL DIVISION The assets of the erstwhile Assam Oil Company were taken over by IOCL in the year 1981. MISSION 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. adopting and assimilating state-of-the-art technology for competitive advantage. Assam Oil Division owns the Digboi refinery and is also into marketing.

Stands for  Delivered Promises  Reliability  Dependability  Integrity  Truthfulness  Transparency OBLIGATIONS IIMT COLLEGE OF MANAGEMENT Page 35 .VISION A major. diversified. playing a national role in oil security and public distribution. VALUES Care ± Stands for  Concern  Empathy  Understanding  Cooperation  Empowerment Passion .Stands for  Commitment  Dedication  Pride  Inspiration  Ownership  Zeal & Zest Innovation ±Stands for  Creativity  Ability to learn  Flexibility  Change Trust . transnational. with national leadership and a strong environment conscience. integrated energy company.

courteous and efficient service and quality products at fair and reasonable prices. To encourage progressive indigenous manufacture of products and materials so as to substitute imports. To ensure safety in operations and highest standards of environment protection in its manufacturing plants and townships by taking suitable and effective measures. Expeditious redressal of grievances Fair dealings with recognized representatives of employees in pursuance of healthy trade union practice and sound personnel policies. Towards employees Develop their capability and advancement through appropriate training and career planning. impartiality and courtesy and promote ancillary industries. Towards community To develop techno-economically viable and environment-friendly products for the benefit of the people.Towards customers and dealers To provide prompt. Towards Defence Services To maintain adequate supplies to Defence Services during Norman and emergency situations as per their requirement at different locations IIMT COLLEGE OF MANAGEMENT Page 36 . Towards suppliers To ensure prompt dealings with integrity.

 To achieve higher growth through integration. To avail of all viable opportunities. To work towards the achievement of self-sufficiency in the filed of Oil refining by setting up adequate capacity and to build up expertise in laying of crude and petroleum product pipelines. acquisitions and diversification by harnessing new business opportunities IIMT COLLEGE OF MANAGEMENT Page 37 . mergers.    To earn a reasonable rate of interest on investment. both national and global. 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. arising out of the liberalization policies being pursued by the Government of India. transportation and marketing activities and to provide appropriate assistance to the consumer to conserve and use petroleum products efficiently. 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.CORPORATE OBJECTIVES   To serve the national interests in the Oil and related sectors in accordance and consistent with Government policies.      To maximize utilization of the existing facilities in order to improve efficiency and increase productivity. 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 ensure and maintain continuous and smooth supplies of petroleum products by way of crude refining.

(50%). (25%). To ensure maximum economy in expenditure. (26%). Hindustan Petroleum Corporation Ltd. To develop long-term corporate plans to provide for adequate growth of the activities of the corporation. Librizol India Pvt. Royal Dutch/Shell Group of Companies. 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. (12. Indian Oil Panipat Power Consortium Ltd. To endeavor to reduce the cost of production of petroleum products by means of systematic cost control measures. without budgetary support. Ltd. Petronet India Ltd. IndianOil Petronas Ltd. (50%). PRINCIPAL COMPETITORS Bharat Petroleum Corporation Ltd. (50%). (26%). Petronet CIPL Ltd. Petronet CTM Ltd. (25%). Indian Oil TCG Petrochem Ltd. Avi-Oil Ltd. (16%). IIMT COLLEGE OF MANAGEMENT Page 38 . Indian Oil tanking Ltd. PRINCIPAL SUBSIDIARIES Indo Mobil Ltd. (50%).FINANCIAL OBJECTIVES To ensure adequate return on the capital employed and maintain a reasonable annual Dividend on its equity capital. To endeavor to complete all planned projects within the stipulated time and cost estimates. (26%).5%). Petronet VK Ltd.

Two wholly owned subsidiaries are already operational in Sri Lanka and Mauritius. Highly qualified professionals with vast experience execute pipeline projects from concept to commissioning and provide services for construction supervision and project management. construction and consultancy services to the pipeline industry. 42% national refining capacity and 67% downstream pipeline throughput capacity. and regional offices at Dubai and Kuala Lumpur are coordinating expansion of business activities in Middle IIMT COLLEGE OF MANAGEMENT Page 39 . EXPERTISE IN OIL & GAS INDUSTRY Indian Oil is one of the leaders in providing engineering. FOREIGN SUBSIDIARIES AND JOINT VENTURES Indian Oil is strengthening its existing overseas marketing ventures and simultaneously scouting new opportunities for marketing and export of petroleum products in foreign markets.SWOT ANALYSIS STRENGTHS HIGH FOREIGN EXCHANGE DEBT. Indian Oil accounts for 56% petroleum products market share. HIGHEST MARKET SHARE As India's flagship national oil company. Its share of foreign exchange borrowings is increasing with foreign exchange loans crossing 50% of its total debt compared to 42% at the end of the last financial year. IOCL has managed to significantly cut its borrowing cost due to high share of foreign exchange debt.

A more simplistic procedure is also likely to generate some savings for the company. It in only in the recent years that the company has started to market its products. LACK OF MARKETING EFFORTS Among the public sector oil companies. PROMOTION POLICY Most of the public sector companies seem to suffer from these lacunae. The employees are promoted mainly on the basis of experience and not on the efforts and initiatives displayed by the employee in his work.East and South East Asia regions. who then tend to shift jobs to satisfy their need for self-esteem. This leads to a delay in decision-making. Indian Oil Corporation is the only one to follow a weak marketing strategy. This results in demotivation and lack of interest for their work on the part of the hardworking employees. still the efforts seem to be weak when compared with the competitors like BPCL and HPCL. The Corporation has launched eleven joint ventures (listed separately) in partnership with some of the most respected corporate from India and abroad . WEAKNESSES STRINGENT CORPORATE POLICIES The decisions relating to administration are taken at the corporate level. Even minor proposals are to be referred to the top management. TENDER PROCESS The policy of selection of the lowest bidder tends to affect the quality of the products/services on some occasions. OPPORTUNITIES IIMT COLLEGE OF MANAGEMENT Page 40 . However. since tendering process leads to expenses on account of advertisement.

With Indian players like Reliance and Essar and foreign players like Shell planning their entry into the Indian scenario.Exploration and Production Indian Oil is metamorphosing from a pure sectoral company with dominance in downstream in India to a vertically integrated. IIMT COLLEGE OF MANAGEMENT Page 41 . transnational energy behemoth. the road seems to be tough for Indian Oil. THREATS Entry of Big Private players The opening up of the oil sector for private players poses a threat even for this well-established company. and is implementing a master plan to emerge as a major player in petrochemicals by integrating its core refining business with petrochemical activities. The Corporation is making investments in E&P and import/marketing ventures for oil and gas in India and abroad.

the refinery now received imported crude for processing.0 MMTPA Haldia-Barauni crude oil pipeline. With the commissioning of the 6. A CRU (Catalytic Reformer Unit) was also added to the refinery in 1997 for production of unleaded motor spirit.0 MMTPA by 1969 and Fluidised Catalytic Cracker) and hydrotreater facilities for diesel quality improvement have been added. The refining capacity was increased to 3. IIMT COLLEGE OF MANAGEMENT Page 42 .0 MMTPA. Barauni refinery supplies distillate products beside eastern India to northern India through a product pipeline to Kanpur in Uttar Pradesh.INTRODUCTION TO BARAUNI REFINERY The Barauni Refinery in Eastern India was commissioned in 1964 with a capacity of 2. Projects are also planned for meeting future fuel quality requirements.

PRODUCTS FROM REFINERY With the expansion of Barauni Refinery to 12. the high value product yield from the refinery will be further improved by reducing the production of black oil like HPS and Bitumen.0 MMTPA total high speed diesel produced from entire refinery will meet BS-II and BS-III Grade required for NCR. After stabilisation of units. LPG NAPHTHA BITUMEN SULPHUR MOTOR SPIRIT ATF HEAVY PETROLEUM STOCK SKO HSD IIMT COLLEGE OF MANAGEMENT Page 43 . With state-of the-art matching secondary processing facilities was approved at a cost of Rs.4165 crore.

Health & Environment IIMT COLLEGE OF MANAGEMENT Page 44 .INTEGRATED POLICY ON QUALITY. HEALTH & ENVIRONMENT (QSHE) ''PRISM'' (Panipat Refinery Integrated System of Management) Integrated Policy Quality. Safety. SAFETY.

CHAPTER-2 INTRODUCTION OF THE TOPIC IIMT COLLEGE OF MANAGEMENT Page 45 .

Industrial work has drastically reduced the independence of workers and made them mere cogs in the machine ± a kind of µsecond class citizens¶. The heterogeneous nature of workers.INTRODUCTION OF THE TOPIC INDUSTRIAL RELATION INTRODUCTION ABOUT INDUSTRIAL RELATIONS Industrial Relations is a dynamic socio-economic process. Growing industrialization and the rapid expansion of the services sector resulted in the galloping demand for skilled labour after 50s.land labour. The role of labour as a factor of production is becoming increasingly important in the modern society. exploit natural resources. This has brought about a sense of deprivation and loss of independence on the part of workers and is probably the primary cause of industrial disputes. ³Human beings are the active agents who accumulate capital. IIMT COLLEGE OF MANAGEMENT Page 46 . It is not the cause but an effect of social. viz. political and economic forces. The emergence of the concept of human relations. illiteracy and politicization of trade unions made it impossible for the workers to bargain for their rights unitedly. are vital elements in the production process but it is labour which contributes most to the wealth of a company. It a ³designation of a whole field of relationship that exists because of the necessary collaboration of men and women in the employment process of industry´. The issue of INDUSTRIAL RELATIONS arose from the issue of divorce of the workers from the ownership and management of the production process. Capital and natural resource endowments.. no doubt. human resource management (HRM) and human resource development (HRD) contributed to the growing importance of labour. The disciplinary rules for work have become quite harsh and arbitrary. capital and organization. economic and political organizations and carry forward national development´. build social. Economists have traditionally identified four factors of production. All these factors have led to growing unrest among the rank of workers.

standing orders. participatory schemes. Interactive and consultative in nature: Industrial Relations include joint consultation between labour. dispute settlement mechanisms etc. The individual differences and disagreements must be dissolved through persuasion and even pressure. traditions. individual relations and Factories Acts and Industrial Relations Factories Act of 1946 is a culmination of a series of earlier acts for Industrial Relations. In the large interests of society. Multidimensional: Industrial Relations are fairly multi-dimensional in nature as they are influenced. employers` associations. The factors responsible for conflictful situations need to be resolved through constructive means. the employer and on one side and the employees on the other side. IIMT COLLEGE OF MANAGEMENT Page 47 . agreements. awards of courts and emphasis on usages. rules. Web of rules: Industrial Relations are a µweb of rules¶ formed by the interaction of the government. the industry and the labour. The act makes extensive provisions for healthy relations in various areas in the workplace. and other economic and social institution in a society. i. Spirit of compromise and accommodation: The Industrial Relations system is characterized by forces of conflict and compromise on either side. trade union. Wide coverage: The scope of Industrial Relations is wide enough to cover a vast territory comprising of grievances. generally keeping pace with the expectations of employees. as well as the implementation of its policies and interference through executive and judicial machinery. management. disciplinary measures. These relations cannot exist without the basic building blocks.e. They include the relations between employer and employees and between employers` associations. customs. trade union as well as the State. economic and technological factors. by a complex set of institutional. Dynamic and changing: Industrial Relations change with the times..Examination of INDUSTRIAL RELATIONS Employer-Employee interactions: Industrial Relations arise out of employer-employee interactions. both the employer and the employees must put out fires amicably and get along with each other in a spirits of compromise and accommodation. ethics. Government¶s role: The government influences and shapes Industrial Relations with the help of laws. collective bargaining.

03. 10.S. The Air (prevention & control of pollution) Act.2004 The battery (Mgt. 12. Acts Year EHS (Environment. Acts 1974/1998 The Water (prevention & control of pollution) Act. 1963/1995/2000 2004 2000 1948/1987 Noise pollution (regulation & control)rules. including amendments. 1989/2000/2003 07. 2004 The factories Act (As amended fill 1987) IIMT COLLEGE OF MANAGEMENT Page 48 .2000 Ozone depleting substances (regulation)rules.NO. 11. and handling) rules. including amendments. & Safety) REGULATION. S. 1989 The Central Motor Vehicle rules (under motor vehicle Act. 1977/1992/2003 1981/1987 04. The Air (prevention & control of pollution) Rules Environment (protection) Act 1986 including amendments of 1991. 1989/2000 08. Year EHS (Environment. including amendments rules 01. including amendments. and handling) rules. 02. 1982 1986 06. Environment (protection) Act 1986 including amendments of Rules The Hazardous wastes (mgt. The Water (prevention & control of pollution) Act. & Safety) REGULATION. storage and import of Hazardous chemical rules.NO. 05. Health. including amendments 2000/2003 Manufacture. 1988) 09. Health.

1993/2004 The DG rules. 1998/2003 The Bio medical waste (Mgt. 15. 2001 The Explosive rules. 1970 and rules 1971 The Punjab welfare officer recruitment & condition of services rules 17. 1952 1956/2003 1934/1997 1984/1993/2004 Punjab state factory rules Indian Electricity rules The petroleum Act (as amendment till 1997) Gas cylinder rules. and handling) rules The Child labour (prohibition and regulation) Act 24. 1970 22. 1986 This cover section 11-20 and 42-49 & the items covered are related to: Sec 11:. 16.13. 1989 The contract labour regulation & control Act. 18. 14. including amendment rules.Ventilation and temperature IIMT COLLEGE OF MANAGEMENT Page 49 . 20. 2000/2002 1984 2001 1983/1989 21. 2000 with amendment 2002 The Explosive Act Energy conservation Act. 1952 23. 19.Disposal of wastes and affluent Sec 13:. including amendment rules.General cleanliness Sec 12:.

Sitting for workers who are obliged to work standing Sec 45:. b) Financial assistance during absence due to ill health or accidents.Artificial humidification Sec 16:. workers more than 30 Sec 49:.Kamotes and urinal Sec 20:.Washing facility Sec 43:.Canteen facility for more than 250 workers Sec 47:.Lighting Sec 18:.Free from dust and fumes Sec 15:.Suitable rest rooms or lunch room with provision for drinking water and should be provided in factory employing more than 150 workers and for more than 500 workers ambulance room of prescribed size. There are points to examination of the Industrial Relations: IIMT COLLEGE OF MANAGEMENT Page 50 . prescribed equipments and in charge of qualified medical and nursing staff Sec 48:. c) Old age pension d) Gratuity e) Provident Fund f) Financial assistance g) Maternity benefit to women worker up an extremely large public sector. (Statutory) a) Medical treatment and compensation for industrial injury. ailments etc.Crèches for women.Sec 14:.Drinking water Sec 19:.Keeping clothing not worn during working hours and for drying of wet clothes Sec 44:. accident.Provision for spittoons Sec 42:.Maintenance of first aid box with prescribed contents for every employees Sec 46:.Overcrowding and congestion Sec 17:.Appointments of welfare office for more than 500 employees Some Social Security Provision for workers.

rules. and between them and the State on the other.A sound industrial relations system is one in which relationships between management and employees (and their representatives) on the one hand. Management can also affect workers¶ interests by exercising their right to relocate. Workers generally unite to form unions against the management and get support from these unions. are more harmonious and cooperative than conflictual and creates an environment conducive to economic efficiency and the motivation. Employees: Workers seek to improve the terms and conditions of their employment. awards of court and the like. close or merge the factory or to introduce technological changes. IIMT COLLEGE OF MANAGEMENT Page 51 . Actors in the IR system: Three main parties are directly involved in industrial relations: Employers: Employers possess certain rights vis-à-vis labors. They have the right to hire and fire them. They exchange views with management and voice their grievances.Industrial Relation System in Barauni Refinery An industrial relations system consists of the whole gamut of relationships between employees and employees and employers which are managed by the means of conflict and cooperation. Government: The central and state government influences and regulates industrial relations through laws. productivity and development of the employee and generates employee loyalty and mutual trust. They also want to share decision making powers of management. agreements. It also includes third parties and labor and tribunal courts.

IIMT COLLEGE OF MANAGEMENT Page 52 .

lockouts. High morale ± Good industrial relations improve the morale of the employees. to increase production. Smooth running of an industry is of vital importance for several other industries. i. to other industries if the products are intermediaries or inputs. It increases the place of workers IIMT COLLEGE OF MANAGEMENT Page 53 . resulting in the maximum possible production. Employees work with great zeal with the feeling in mind that the interest of employer and employees is one and the same. gherao and grievances are some of the reflections of industrial unrest which do not spring up in an atmosphere of industrial peace. It helps promoting co-operation and increasing production. go-slow tactics. Strikes. to consumers and workers. complete unity of thought and action is the main achievement of industrial peace. There is uninterrupted flow of income for all. Their significance may be discussed as under ± Uninterrupted production ± The most important benefit of industrial relations is that this ensures continuity of production. Disputes are reflections of the failure of basic human urges or motivations to secure adequate satisfaction or expression which are fully cured by good industrial relations. Reduction in Industrial Disputes ± Good industrial relations reduce the industrial disputes.e. to exporters if these are export goods. The resources are fully utilized. Every worker feels that he is a co-owner of the gains of industry. In other words. The employer in his turn must realize that the gains of industry are not for him along but they should be shared equally and generously with his workers. This means. continuous employment for all from manager to workers. if these are goods of mass consumption.Importance of Industrial Relations The healthy industrial relations are key to the progress and success.

An economy organized for planned production and distribution. IIMT COLLEGE OF MANAGEMENT Page 54 . If the twin objectives of rapid national development and increased social justice are to be achieved. Wastages of man. employees and Government to work out a new relationship in consonance with a spirit of true democracy. It also results in increased efficiency of workers. It will naturally have impact on production because they recognize the interest of each other. workers must recognize employer¶s authority. material and machines are reduced to the minimum and thus national interest is protected. Both should think themselves as partners of the industry and the role of workers in such a partnership should be recognized. it is evident that good industrial relations is the basis of higher production with minimum cost and higher profits. The industrial peace lies ultimately in a transformed outlook on the part of both. It naturally affects production because mighty co-operative efforts alone can produce great results. aiming at the realization of social justice and welfare of the massage can function effectively only in an atmosphere of industrial peace. It will help increase production. there must be harmonious relationship between management and labor. New and new projects may be introduced for the welfare of the workers and to promote the morale of the people at work. Thus. Reduced Wastage ± Good industrial relations are maintained on the basis of cooperation and recognition of each other.in the society and their ego is satisfied. Mental Revolution ± The main object of industrial relation is a complete mental revolution of workers and employees. It is the business of leadership in the ranks of workers. On the other hand.

lockouts and gheraos by providing reasonable wages. Vesting of a proprietary interest of the workers in the industries in which They are employed. To avoid industrial conflict or strife and develop harmonious relations. improved living and working conditions. which are an essential factor in the productivity of workers and the industrial progress of a country.Objectives of industrial relations The main objectives of industrial relations system are:To safeguard the interest of labor and management by securing the highest level of mutual understanding and good-will among all those sections in the industry which participate in the process of production. To establish and promote the growth of an industrial democracy based on labor partnership in the sharing of profits and of managerial decisions. so that ban individuals personality may grow its full stature for the benefit of the industry and of the country as well. To raise productivity to a higher level in an era of full employment by lessening the tendency to high turnover and frequency absenteeism. said fringe benefits. To improve the economic conditions of workers in the existing state of industrial managements and political government. IIMT COLLEGE OF MANAGEMENT Page 55 . Socialization of industries by making the state itself a major employer. To eliminate or minimize the number of strikes.

Role of State in Indian Industrial Relations India is socialist democratic republic state. it is simple to accept and apreciate that the State has reserved a a role of an "Umpire or a Referee" in the game of industrial relations in the country. Personally and professionally. sometimes the issues between the parties may not get resolved at bilateral level and unless a way ro resolve is sanctified through the constitution of the country and the system of law. there would be impediments to progress and the expected peace and harmony may get vitiated. sluggish judiciary and tight fisted managements have made a virtual mockery of the concept. the state is NOT oblivious to the fact that despite best intentions and efforts. Every elected government of the country has as its bounden duty to secure upliftment of all citizen and to that extent the constitution provides for rules and regulations through a system of laws that would facilitate progress. Elder brother andwell-wisher! That the concerned parties have vitiated the golden thought is the country's misfortune!!! IIMT COLLEGE OF MANAGEMENT Page 56 . Its provides all kinds of mechanisms to parties through law to resolve their own problems bilaterally and has further taken care to provide a quasi judicial/judicial system for determination of disputes. redress of grievances and thereby would maintain peace and harmony in the society! As regards "labour" while the State is committed to promote industrial growth through bilateral relations between employers and employees for mutually healthy existence. Against this backdrop. But the idea essentially is excellent in the State becoming an Umpire and to help parties become mature in resolving problems amongst themselves! The role of the State in Indian Industrial Relations is that of an Umpire. adventurous unionism. one feels that this is an ideal system. cooperation and progress. Unfortunately. the experience shows that corrupt administration.

Please remember that Go d helps those who help themselves! At this encouraging note let us get into the technicalities of resolving conflicts in organisations. but national employers' organizations and national trade unions. In these countries. IIMT COLLEGE OF MANAGEMENT Page 57 . In countries with a social market economy. which are basically public relations organization.Employers' organization An employers' organization. In tri-partite bargaining the so-called social partners strike agreements on issues like price levels. We should understand that whenever there is some problem in our professional or personal life. together with government and the trade unions. A trade union. The role and position of an employers' organization differs from country to country. where there is no institutionalized cooperation between employers' organizations. the employers' organizations are part of a system of institutionalized deliberation. employers' association or employers' federation is an association of employers.We should look for solutions. dependent on the economic system of a country. tax rates and pension entitlements. such as Austria. trade unions and government. which organizes employees is the opposite of an employers' organization. INDUSTRIAL REFINERY RELATIONS MACHINERY IN BARAUNI Today we are going to study the means and ways to resolve industrial disputes. with many of their functions taken over by industry trade groups. wage increases. In countries with a pluralist or anglo-saxon economic system (such as the United Kingdom and the United States). an employers' organization is an interest group or advocacy group that through lobbying tries to influence government policy. Sweden and the Netherlands. In these countries collective bargaining is often done on a national level not between one corporation and one union. employers' organizations tend to be weak. we should not get disturbed by the problem .

I hope all of you have understood the difference between the two. After there is a problem or a dispute. It is thus proactive in nature. Keeping that in mind let us discuss the prevention machinery before the settlement machinery. It aims at creating an environment in which the employees are allowed to participate and there are very less chances of conflicts. The settlement machinery on the other hand is reactive in nature.INDUSTRIAL RELATIONS MACHINERY Cordial industrial relations and lasting industrial peace require that the causes of industrial disputes should be eliminated. Prevention of industrial disputes: The preventive machinery has been set up with a view to creating harmonious relations between labour and management so that disputes do not arise. It comprises the following measures: IIMT COLLEGE OF MANAGEMENT Page 58 . Now don¶t tell me that you don¶t understand the meaning of pro activity«Anyhow. The machinery for handling the industrial disputes has been shown in the following figure: MACHINERY FOR HANDLING INDUSTRIAL DISPUTES IN BARAUNI REFINERY Preventive Machinery (Voluntary or Non-statutory) Settlement Machinery (Statutory) This is sure that all of us would have heard the saying that prevention is better than cure. If you have not. pro activity means that actions are taken before there is a problem. preventive steps should be taken so that industrial disputes do not occur. But if preventive machinery fails then the Government should activate the industrial Settlement machinery because nonsettlement of disputes proves to be harmful not only for the workers. let me explain it to you. In other words. but also the management and the society as a whole. The preventive machinery ensures that there are no disputes. the settlement machinery comes into the picture.

joint management councils and shop councils and joint councils. whereas the SLC meets as and when necessary. Please note that the ILC meets once a year. The schemes of workers¶ participation and collective bargaining will be discussed in greater detail as a separate topic. I am sure you would have read in the newspapers that the ILC meet is being organized. c) Tripartite bodies d) Code of discipline. As of now. The representatives of the workers and employers are nominated to these bodies by the Central Government in consultation with the All-India organisations of workers and employers. b) Collective bargaining. These two bodies work with minimum procedural rules to facilitate free and fuller discussions among the members. The functions of ILC are: (a) To promote uniformity in labour legislation (b) To lay down a procedure for the settlement of industrial disputes IIMT COLLEGE OF MANAGEMENT Page 59 . Rests of the preventive measures are discussed below: ‡ Tripartite Bodies Industrial relations in India have been shaped largely by principles and policies evolved through tripartite consultative machinery at industry and national levels. The aim of the consultative machinery is ³to bring the parties together for mutual settlement of differences in a spirit of cooperation an goodwill´ Thus these bodies play the role of consultants!! Indian Labour Conference (ILC) and Standing Labour Committee (SLC) have been constituted to suggest ways and means to prevent disputes. please read something on these schemes and we will discuss it in the due course.a) Schemes of workers¶ participation in management such as works committees. The Labour Ministry settles the agenda for ILC/SLC meetings after taking into consideration the suggestions sent to it by member organisations.

The Standing Labour Committee¶s main function is to consider and determine such questions as may be referred to it by the Plenary Conference or the Central Government and to render advice. taking into account the suggestions made by various governments. The first set of principles is for the management and the union. CIRM has complement of 25 officers at the IIMT COLLEGE OF MANAGEMENT Page 60 . workers and employers. the Fifteenth Indian Labour Conference agreed that there should be a set of general principles of discipline. It has been entrusted with the task of maintaining Industrial Relations. ‡ Code of Discipline The Code of Discipline is a set of self-imposed mutually agreed voluntary principles of discipline and relations between the management and workers in the industry. the final form of the Code of Discipline was approved. At the Sixteenth Indian Labour Conference held in 1958. The ILC advises the Government on any matter referred to it for advice. The second set is for the Management and the third one is for the union Central Industrial Relations Machinery (CIRM) The Chief Labour Commissioner¶s (Central) [CLC(C)] Organisation. enforcement of Labour Laws and verification of Trade Union Membership in central sphere.As of now please understand that there are three sets of principles in the Code Of Discipline. also known as Central Industrial Relations Machinery. which should be adopted by labour and management voluntarily.(c) To discuss matters of All-India importance as between employers and employees. The CIRM is headed by the Chief Labour Commissioner (Central). The resulting draft was discussed at Standing Labour Committee meeting in October 1957. To evolve such a set of principles. taking into account suggestions made by the States and representatives of the organisations of workers and employers. is an attached office of the Ministry.In view of growing industrial conflict. a tripartite subcommittee was set up. The details of the code are discussed later.

Quasi-Judicial functions. regional and unit level formations. actors interact with each other. The offices of these Officers are spread over different parts of the country with zonal. in central sphere. Thus it can be said that industrial relations is a social sub system subject to three environmental constraints. Functions of the organisation: The functions of CIRM broadly are given as under: y y y y y y Prevention and settlement of Industrial Disputes. Welfare. distribution of power in society and technology. at least to some extent. and the distribution of power in wider society as it impacts upon individuals and workplace. IIMT COLLEGE OF MANAGEMENT Page 61 . Verification of the membership of the Trade Unions. Enforcement of Labour Laws and Rules made thereunder in central sphere.Head Quarters and 253 Officers in the field. DUNLOP'S CONTRIBUTION TO INDUSTRIAL RELATIONS Dunlop's Model One of the significant theories of industrial labor relations was put forth by John Dunlop in the 1950s. He proposed that three parties employers. and government-. workers and formal/informal ways they are organized and government agencies. negotiate and use economic/political power in process of determining rules that constitute the output of the industrial relations system. According to Dunlop industrial relations system consists of three agents ± management organizations. Instead they were shaped. He also argued that none of these institutions could act in an autonomous or independent fashion.are the key actors in a modern industrial relations system. by their market. Within this environment.the markets. These actors and their organizations are located within an environment ± defined in terms of technology. Implementation of awards. technological and political contexts. labor unions. labor and product markets.

and the government possess a shared ideology that defines their roles within the relationship and provides stability to the system. Characteristics and interaction of the key actors in the employment relationship: labor. technological. In other words. These labor laws were protective in nature and covered a wide range of aspects of workplace industrial relations like laws on health and safety of labors. and government. management. management. 3. Dunlop emphasizes the core idea of systems by saying that the arrangements in the field of industrial relations may be regarded as a system in the sense that each of them more or less intimately affects each of the others so that they constitute a group of arrangements for dealing with certain matters and are collectively responsible for certain results´.Dunlop's model identifies three key factors to be considered in conducting an analysis of the management-labor relationship: 1. Such rules are the product of interaction between three key ³actors´ ± workers/unions. Environmental or external economic. employers and associated organizations and government The Dunlop¶s model gives great significance to external or environmental forces. layoffs and retrenchment policies. political. labor. In effect . legal and social forces that impact employment relationships. 2. Industrial Relation Policy Prior to 1991. Rules that are derived from these interactions that govern the employment relationship. industrial disputes and IIMT COLLEGE OF MANAGEMENT Page 62 . the industrial relations system in India sought to control conflicts and disputes through excessive labor legislations.Industrial relations is the system which produces the rules of the workplace.

introduced policies of voluntary retirement schemes and flexibility in workplace also increased. these protectionist policies created an atmosphere that led to increased inefficiency in firms. globalization brought major changes in industrial relations policy in India. banking. are also facing pressures to follow decentralization. the 40 year old policy of protectionism proved inadequate for Indian industry to remain competitive as the lack of flexibility posed a serious threat to manufacturers because they had to compete in the international market. The changes can be summarized as follows: y Collective bargaining in India has mostly been decentralized. y Under pressure some unions and federations are putting up a united front e.the like. On the other hand. Thus. the policy was tilted towards employers.g. over employment and inability to introduce efficacy. Now. the industrial relations policy began to change. The basic purpose of these laws was to protect labors. y Some industries are cutting employment to a significant extent to cope with the domestic and foreign competition e. pharmaceuticals. IIMT COLLEGE OF MANAGEMENT Page 63 . With the advent of liberalization in1992. y In the expansionary economy there is a clear shortage of managers and skilled labor. Employers opted for workforce reduction.g. However. in other industries where the demand for employment is increasing are experiencing employment growths. y The number of local and enterprise level unions has increased and there is a significant reduction in the influence of the unions. but now in sectors where it was not so. With the coming of globalization.

unitary approach means that: y Working practices should be flexible. These new policies are difficult to implement in place of old practices as the institutional set up still needs to be changed. no outside affiliation. Furthermore. multi-skills.e. Trade unions are deemed as unnecessary and conflict is perceived as disruptive. Perspective of IR  Unitary Perspective: In unitarism. unitarism has a paternalistic approach where it demands loyalty of all employees. Training and skill development is also receiving attention in a number of industries. the organization is perceived as an integrated and harmonious system. interests and purposes. hand-in-hand. job rotation etc. From employee point of view. y HR policies and forms of work are emerging that include. Individuals should be business process improvement oriented. IIMT COLLEGE OF MANAGEMENT Page 64 . y y HRM is seen as a key component of business strategy. towards the shared mutual goals.y Another trend is that the employers have started to push for internal unions i. thus working together. variable compensation. viewed as one happy family. especially banking and information technology. and all members of the organization share the same objectives. especially in multinational companies. multi-skilled and ready to tackle with efficiency whatever tasks are required. A core assumption of unitary approach is that management and staff.

From employer point of view. innovation. y Employees should feel that the skills and expertise of managers supports their endeavors. This helps in empowering individuals in their roles and emphasizes team work. The organization's wider objectives should be properly communicated and discussed with staff. discretion in problem-solving. y Reward systems should be so designed as to foster to secure loyalty and commitment.are seen as arising from lack of information. y Employee participation in workplace decisions is enabled. quality and improvement groups etc. Staff-management conflicts .from the perspective of the unitary framework . its role is that of a further means of communication between groups of staff and the company. creativity. y y Line managers should take ownership of their team/staffing responsibilities. inadequate presentation of management's policies. inspire and motivate employees. unitary approach means that: y y Staffing policies should try to unify effort.y If a union is recognized. y The emphasis is on good relationships and sound terms and conditions of employment. y The personal objectives of every individual employed in the business should be discussed with them and integrated with the organization¶s needs IIMT COLLEGE OF MANAGEMENT Page 65 .

The implications of this approach include: y The firm should have industrial relations and personnel specialists who advise managers and provide specialist services in respect of staffing and matters relating to union consultation and negotiation. Capitalism would foster monopolies.Pluralistic-Perspective : In pluralism the organization is perceived as being made up of powerful and divergent sub-groups . the role of management would lean less towards enforcing and controlling and more toward persuasion and co-ordination. Conflict is dealt by collective bargaining and is viewed not necessarily as a bad thing and if managed could in fact be channeled towards evolution and positive change. This approach sees conflicts of interest and disagreements between managers and workers over the distribution of profits as normal and inescapable. y Independent external arbitrators should be used to assist in the resolution of disputes. y Union recognition should be encouraged and union representatives given scope to carry out their representative duties y Comprehensive collective agreements should be negotiated with unions Marxist Perspective: This view of industrial relations is a by product of a theory of capitalist society and social change.management and trade unions. IIMT COLLEGE OF MANAGEMENT Page 66 . They should anticipate and resolve this by securing agreed procedures for settling disputes. Consequently. Trade unions are deemed as legitimate representatives of employees. There is a greater propensity for conflict rather than harmony. Marx argued that: Weakness and contradiction inherent in the capitalist system would result in revolution and the ascendancy of socialism over capitalism. Realistic managers should accept conflict to occur.

It is concerned with the structure and nature of society and assumes that the conflict in employment relationship is reflective of the structure of the society. and sees workplace relations against this background. IIMT COLLEGE OF MANAGEMENT Page 67 . Capitalists and workers would compete/be in contention to win ground and establish their constant win-lose struggles would be evident. This perspective focuses on the fundamental division of interest between capital and labor. Conflict is therefore seen as inevitable and trade unions are a natural response of workers to their exploitation by capital.Wages (costs to the capitalist) would be minimized to a subsistence level.

an Industrial dispute means Any dispute or difference between employer and employer or between employer and workmen or between workmen and workmen. profits. prevention is better then cure . It generally affects a large number of workers community having common interests. Industrial disputes need to be averted by all means. Hence. They also specify the duties and IIMT COLLEGE OF MANAGEMENT Page 68 . market share and even closure of the plant. Prevention of Industrial disputes is a pro-active approach in which an organisation undertakes various actions through which the occurrence of Industrial disputes is prevented. economy and the nation as a whole. According to the Industrial Dispute Act.INDUSTRIAL DISPUTE Industrial disputes are organised protests against existing terms of employment or conditions of work. 1. which is connected with the employment or non-employment or terms of employment or with the conditions of labour of any person In practice. workers. Model Standing Orders: Standing orders define and regulate terms and conditions of employment and bring about uniformity in them. Prevention of Industrial Disputes in Barauni Refinery The consequences of an Industrial dispute will be harmful to the owners of industries. Like the Methods for prevention of Industrial Disputes Labour Model Standing Orders Code of Discipline Works Committee Welfare Officers Collective Bargaining Joint Management Councils Suggestion Schemes Tripartite Bodies Joint Councils old saying goes. which results in loss of productivity. 1947. Industrial dispute mainly refers to the strife between employers and their employees. An Industrial dispute is not a personal dispute of any one person.

intimidation and violence. it shall be the duty of the Works Committee to promote measures for securing and preserving amity and good relations among the employees and workers. 3. Suggestion Schemes: 6. To eliminate all forms of coercion. To avoid work stoppage. Works Committee: The Industrial Dispute Act. To maintain discipline in the industry. These orders must be certified and displayed properly by the employer for the information of the workers. 4. The officer looks after all facilities in the factory provided for the health. safety and welfare of workers. To promote constructive co-operation between the parties concerned at all levels. thereby serving as a communication link and contributing towards healthy industrial relations through proper administration of standing orders. Code of Industrial discipline: The code of Industrial discipline defines duties and responsibilities of employers and workers. 1947. Joint Councils: 7. He maintains liaison with both the employer and the workers. Under Industrial Dispute Act. Labour welfare officer: The factories Act. 1948 provides for the appointment of a labour welfare officer in every factory employing 500 or more workers. 8. grievance procedure etc. a works committee consisting of employees and workers is to be constituted. 1947 has provided for the establishment of works committees. standing orders can be a good basis for maintaining harmonious relations between employees and employers. Collective Bargaining: Collective Bargaining is a process in which the representatives of the employer and of the employees meet and attempt to negotiate a contract governing the employer-employee-union relationships. conciliation and voluntary arbitration. The objectives of the code are: To secure settlement of disputes by negotiation. every factory employing 100 workers or more is required to frame standing orders in consultation with the workers. Therefore. Collective Bargaining involves discussion and negotiation between two groups as to the terms and conditions of employment. Joint Management Councils: 5.responsibilities of both employers and employees thereby regulating standards of their behaviour. 2. In case of any industrial establishment in which 100 or more workers are employed. IIMT COLLEGE OF MANAGEMENT Page 69 .

standing labour committees. The India labour conference.9. and then takes a decision which is binding on both the parties. whereas the arbitrator listens to both the parties and then gives his judgement. appoint such number of persons as it thinks fit to be the conciliation officer. Machinery for settlement of Industrial Disputes in Barauni Refinery 1. The recommendations given by these bodies are however advisory in nature and not statutory. The conciliation officer however has no power to force a settlement. Advantages of Arbitration: IIMT COLLEGE OF MANAGEMENT Page 70 . reconcile their differences and arrive at an agreement through mutual consent. The duties of a conciliation officer are: a) To hold conciliation proceedings with a view to arrive at amicable settlement between the parties concerned. 2. c) To send a report and memorandum of settlement to the appropriate government. national and state levels. Conciliation is a type of state intervention in settling the Industrial Disputes. The third party acts as a facilitator in this process. Conciliation Officer: The appropriate government may. d) To send a report to the government stating forth the steps taken by him in case no settlement has been reached at. The conciliator simply assists the parties to come to a settlement. b) To investigate the dispute in order to bring about the settlement between the parties concerned. State Labour Advisory Boards have been set up. Tripartite bodies: Several tripartite bodies have been constituted at central. by notification in the official gazette. At the state level. Conciliation: Conciliation refers to the process by which representatives of employees and employers are brought together before a third party with a view to discuss. gathers information about the dispute. All these bodies play an important role in reaching agreements on various labourrelated issues. The Industrial Disputes Act empowers the Central & State governments to appoint conciliation officers and a Board of Conciliation as and when the situation demands. Arbitration: A process in which a neutral third party listens to the disputing parties. The Industrial Disputes Act prohibits strikes and lockouts during that time when the conciliation proceedings are in progress. Wage Boards and Industries Committees operate at the central level. He can only persuade and assist the parties to reach an agreement.

3. For the purpose of adjudication. Disadvantages: Delay often occurs in settlement of disputes. Usually. In other words adjudication means a mandatory settlement of an Industrial dispute by a labour court or a tribunal. Adjudication means intervention of a legal authority appointed by the government to make a settlement which is binding on both the parties. by notification in the official gazette constitute one or more labour courts for adjudication of Industrial disputes relating to any matters specified in the second schedule of Industrial Disputes Act. when the parties fail to arrive at a settlement voluntarily. Arbitration is an expensive procedure and the expenses are to be shared by the labour and the management. the appropriate government can force the parties to refer the dispute to an arbitrator. The process in informal and flexible in nature. the Industrial Disputes Act provides a 3-tier machinery: a) Labour court b) Industrial Tribunal c) National Tribunal a) Labour Court: The appropriate government may. They are:  Dismissal or discharge or grant of relief to workmen wrongfully dismissed. IIMT COLLEGE OF MANAGEMENT Page 71 .It is established by the parties themselves and therefore both parties have good faith in the arbitration process. It is based on mutual consent of the parties and therefore helps in building healthy Industrial Relations. or when there is some other strong reason. Adjudication: Adjudication is the ultimate legal remedy for settlement of Industrial Dispute. Judgement can become arbitrary when the arbitrator is incompetent or biased. There are two types of arbitration: a) Voluntary Arbitration: In voluntary arbitration the arbitrator is appointed by both the parties through mutual consent and the arbitrator acts only when the dispute is referred to him. b) Compulsory Arbitration: Implies that the parties are required to refer the dispute to the arbitrator whether they like him or not.

by notification in the official gazette. Where an Industrial dispute has been referred to a labour court for adjudication. PF etc. c) National Tribunal: The central government may. Illegality or otherwise of a strike or lockout. it shall hold its proceedings expeditiously and shall. It is the duty of the National Tribunal to hold its proceedings expeditiously and to submit its report to the central government within the stipulated time.  Withdrawal of any customary concession or privileges. IIMT COLLEGE OF MANAGEMENT Page 72 . submit its report to the appropriate government. profit-sharing. by notification in the official gazette. or are affected by the outcome of the dispute. within the period specified in the order referring such a dispute. constitute one or more National Tribunals for the adjudication of Industrial Disputes in  Matters of National importance  Matters which are of a nature such that industries in more than one state are likely to be interested in. b) Industrial Tribunal: The appropriate government may.  Rules of discipline  Retrenchment of workmen  Working shifts other than in accordance with standing orders It is the duty of the Industrial Tribunal to hold its proceedings expeditiously and to submit its report to the appropriate government within the specified time. constitute one or more Industrial Tribunals for the adjudication of Industrial disputes relating to the following matters:  Wages  Compensatory and other allowances  Hours of work and rest intervals  Leave with wages and holidays  Bonus.

Participation refers to the mental and emotional involvement of a person in a group situation which encourages him to contribute to group goals and share the responsibility of achievement. a feeling of belongingness with the place of work and a sense of workmanship and creativity. Features of WPM: 1.Workers Participation in Management A suitable step taken by the management of IOCL Workers participation in management is an essential ingredient of Industrial democracy. Participation means mental and emotional involvement rather than mere physical presence. IIMT COLLEGE OF MANAGEMENT Page 73 . The participation includes the willingness to share the responsibility of the organization by the workers. Workers participation is also known as labour participation or employee participation in management. it gives him the freedom of opportunity for self-expression. In Germany it is known as co-determination while in Yugoslavia it is known as self-management. Participation in Management gives the worker a sense of importance. The concept of workers participation in management encompasses the following: It provides scope for employees in decision-making of the organization. According to Walpole. Definition: According to Keith Davis. The concept of workers participation in management is based on Human Relations approach to Management which brought about a new set of values to labour and management. The participation may be at the shop level. Workers participation in management implies mental and emotional involvement of workers in the management of Enterprise. Traditionally the concept of Workers Participation in Management (WPM) refers to participation of non-managerial employees in the decision-making process of the organization. The International Labour Organization has been encouraging member nations to promote the scheme of Workers Participation in Management. departmental level or at the top level. pride and accomplishment. It is considered as a mechanism where workers have a say in the decisionmaking.

Information participation: It ensures that employees are able to receive information and express their views pertaining to the matter of general economic importance. 4. To strengthen labour-management co-operation and thus maintain Industrial peace and harmony. There can be 5 levels of Management Participation or WPM: a. Administrative participation: It ensures greater share of workers participation in discharge of managerial functions. preferably with alternatives for administration and employees have to select the best from those for implementation. Here. IIMT COLLEGE OF MANAGEMENT Page 74 . 3. d. Objectives of WPM: 1. workers and the society at large. Decisive participation: Highest level of participation where decisions are jointly taken on the matters relating to production. e. However. Its psychological objective is to secure full recognition of the workers. 6. 5. Workers participation in management may be formal or informal. To establish Industrial Democracy. 4. decisions already taken by the management come to employees. To build the most dynamic Human Resources. c. safety and health.2. as employees views are only advisory in nature. In both the cases it is a system of communication and consultation whereby employees express their opinions and contribute to managerial decisions. final decision always rests with the top-level management. Consultative importance: Here workers are consulted on the matters of employee welfare such as work. b. Workers participate in management not as individuals but collectively as a group through their representatives. welfare etc. 2. To satisfy the workers social and esteem needs. Associative participation: It is an extension of consultative participation as management here is under the moral obligation to accept and implement the unanimous decisions of the employees. Under this method the managers and workers jointly take decisions. To promote increased productivity for the advantage of the organization. 3.

Strategies / Methods / Schemes / Forms of WPM: 1. Suggestion schemes: Participation of workers can take place through suggestion scheme. The committee screens various suggestions received from the workers. accident prevention mechanisms etc. canteens. HLL. Works committees are concerned with: Conditions of work such as ventilation. Educational and recreational activities. Functions: Works committee deals with matters of day-to-day functioning at the shop floor level.  Lack of feedback on performance of Works Committee. Periodically all the suggestions are scrutinized by the suggestion committee or suggestion screening committee.  Employees consider it below their dignity and status to sit alongside blue-collar workers. A suggestion box is installed and any worker can write his suggestions and drop them in the box. Such a committee consists of equal number of representatives from the employer and the employees. 1947. medical and health services. Amenities such as drinking water. Under this method workers are invited and encouraged to offer suggestions for improving the working of the enterprise. Good suggestions are accepted for implementation and suitable awards are given to the concerned workers. The committee is constituted by equal representation from the management and the workers. Safety measures. Works committee: Under the Industrial Disputes Act. dining rooms. Works committees function actively in some organizations like Tata Steel. etc but the progress of Works Committees in many organizations has not been very satisfactory due to the following reasons:  Lack of competence and interest on the part of workers representatives. The main purpose of this committee is to provide measures for securing and preserving amity and good relations between the employer and the employees. IIMT COLLEGE OF MANAGEMENT Page 75 . 2. lighting and sanitation. every establishment employing 100 or more workers is required to constitute a works committee. Suggestion schemes encourage workers interest in the functioning of an enterprise.

The plant should employ at least 500 workers. revision of work rules. personal problems of the workers are outside the scope of Joint management councils. Shares of the company can be acquired by workers making cash payment or by way of stock options scheme. This is the full-fledged and highest form of workers participation in management. meals. Wages. Hindustan Organic Chemicals Ltd etc. rewards for suggestions etc. However the scheme of appointment of such a director from among the employees failed miserably and the scheme was subsequently dropped. Joint Management Councils: Under this system Joint Management Councils are constituted at the plant level. Co-partnership: Co-partnership involves employees participation in the share capital of a company in which they are employed. This council is entrusted with the responsibility of administering welfare measures. not exceeding 12 at the plant level. IIMT COLLEGE OF MANAGEMENT Page 76 . management of canteens. absenteeism. Undue delay and problems in implementation due to advisory nature of recommendations. These councils consist of equal number of representatives of the employers and employees. The basic objective of stock options is not to pass on control in the hands of employees but providing better financial incentives for industrial productivity. they have the right to participate in the management of the company. These councils were setup as early as 1958. The council discusses various matters relating to the working of the industry. WPM through co-partnership is limited. 4. 3. the performance of Joint Management Councils have not been satisfactory due to the following reasons: y Workers representatives feel dissatisfied as the council s functions are concerned with only the welfare activities. scheduling of working hours. By virtue of their being shareholders. The Government of India introduced this scheme in several public sector enterprises such as Hindustan Antibiotics. water. supervision of safety and health schemes. 5. bonus. congenial employeeemployer relations and safeguard the workers interests. one or two representatives of workers are nominated or elected to the Board of Directors. indiscipline etc. Work directors: Under this method. y Trade unions fear that these councils will weaken their strength as workers come under the direct influence of these councils. The basic idea behind this method is that the representation of workers at the top-level would usher Industrial Democracy. The council is to take up issues related to accident prevention. But in developed countries.

the employer shall constitute a shop council. including elimination of wastage of man power. Assist management in achieving monthly production targets. state electricity boards. post and telegraph offices.6. The vice-chairman of the joint council will be nominated by the worker members of the council. Ensure proper flow of adequate two way communication between management and workers. 2. railway and road transport. 4. safety and welfare measures to be adopted for smooth functioning of staff. Study absenteeism in the shop or department and recommend steps to reduce it. there should be a Joint Council for the whole unit. noise and dust. 3. The employers representatives will be nominated by the management and must consist of persons within the establishment. In every Industrial establishment employing 500 or more workmen. Improve production and efficiency. Shop council represents each department or a shop in a unit. The organizations include hotels. A joint council shall meet at least once in a quarter. in every Industrial Unit employing 500 or more workers. Functions of Shop Councils: 1. The total number of employees may not exceed 12. 7. 5. Look after physical conditions of working such as lighting. 6. hospitals. Shop councils: Government of India on the 30th of October 1975 announced a new scheme in WPM. IIMT COLLEGE OF MANAGEMENT Page 77 . The decisions of the Joint Council shall be based on the consensus and not on the basis of voting. In 1977 the above scheme was extended to the PSUs like commercial and service sector organizations employing 100 or more persons. The workers representatives will be from among the workers of the department or shop concerned. ventilation. The chief executive of the unit shall be the chairperson of the joint council. Each shop council consists of an equal number of representatives from both employer and employees. Only such persons who are actually engaged in the unit shall be the members of Joint Council. Suggest health. Joint Councils: The joint councils are constituted for the whole unit.

2. 5. In India. Since July 1975 the two-tier participation called shop councils at shop level and Joint councils were introduced. While participating in management they tend to give priority to political interests rather than the workers cause. there has been a lack of interest and initiative on the part of both the trade unions and employers. IIMT COLLEGE OF MANAGEMENT Page 78 . The joint management councils were established in 1950 which increased the labour participation in management. Employers resist the participation of workers in decision-making. The focus has always been on participation at the higher levels. 1947 was the first step in this direction. which recommended for the setting up of works committees. Schemes of workers participation have been initiated and sponsored by the Government. Workers representatives who participate in management have to perform the dual roles of workers spokesman and a co-manager. lower levels have never been allowed to participate much in the decision-making in the organizations. Workers participation in Management Bill. Workers do not feel the urge to participate in management. However. labour laws regulate virtually all terms and conditions of employment at the workplace. having an innate feeling that they are born to serve and not to rule. Reasons for failure of Workers participation Movement in India: 1. 6. 1990 was introduced in Parliament which provided scope for upliftment of workers. This is because they feel that workers are not competent enough to take decisions. 3. Industrial Disputes Act. Very few representatives are competent enough to assume the two incompatible roles. Generally Trade Unions leaders who represent workers are also active members of various political parties.WORKERS PARTICIPATION IN MANAGEMENT IN INDIA Workers participation in Management in India was given importance only after Independence. 4.

a manager is a manager. Modern scholars are of the mind that the old adage a worker is a worker. A mutual co-operation and commitment to participation must be developed by both management and labour. They should recognize and respect the rights of each other. 5. participation should start at the operating level of management. The unwillingness of the employer to share powers with the workers representatives. never the twain shall meet should be replaced by managers and workers are partners in the progress of business IIMT COLLEGE OF MANAGEMENT Page 79 . Participation should be a continuous process. Workers and their representatives should be provided education and training in the philosophy and process of participative management. There should be effective communication between workers and management and effective consultation of workers by the management in decisions that have an impact on them. To begin with. 6. 2. Workers should be made aware of the benefits of participative management. They should consider the industry as a joint endeavour in which workers have an equal say. Measures for making Participation effective: 1. Workers should be provided and enlightened about the benefits of their participation in the management. 4. Employers and workers should agree on the objectives of the industry. the disinterest of the workers and the perfunctory attitude of the government towards participation in management act as stumbling blocks in the way of promotion of participative management.7. 3. Employer should adopt a progressive outlook.

negotiators can encourage their opponents to view issues largely in integrative terms and participate in joint problem solving. bonus and other financial issues. both the parties face a win/lose situation. IIMT COLLEGE OF MANAGEMENT Page 80 . This activity involves shaping and reshaping some perceptions like trust/distrust. One of the efficient methods of resolving industrial disputes and deciding the employment conditions is Collective Bargaining.COLLECTIVE BARGAINING IN THE CONTEXT OF BARAUNI REFINERY Good relations between the employer and employees are essential for the success of industry. In this activity. trust. attitudinal structuring is required to maintain smooth and harmonious industrial relations. It is termed Collective because both the employer¶s negotiators and the employees act as a group rather than individuals. 2) Integrative Bargaining: Also known as Interest-Based Bargaining. salaries. better performance appraisal methods or training programmes etc. By cultivating an atmosphere of friendliness. Issues brought up may be better job evaluation procedures. friendliness/hostility. 3) Attitudinal structuring: Attitudinal structuring refers to efforts by negotiators to shape their opponents' perceptions about the nature of the issues to be negotiated. Industrial disputes essentially refer to differences or conflicts between employers and employees. Collective Bargaining is a process in which the management and employee representatives meet and negotiate the terms and conditions of employment for mutual benefit. This strategy focuses on developing mutually beneficial agreements based on the interests of the disputants. Collective bargaining involves discussion and negotiation between two groups as to the terms and conditions of employment. it is necessary that industrial disputes are settled quickly and amicably. issues which are not damaging to either party are discussed. When there is a backlog of bitterness between both the parties. co-operative/non-cooperative between the labour and management. Various activities involved in this activity are wages. It is known as Bargaining because the method of reaching an agreement involves proposals and counter-proposals. It is a negotiation strategy in which both the parties collaborate to find a win-win solution to their problems. mutual respect. According to Walton and McKersie the process of Collective Bargaining consists of four types of activities: 1) Distributive Bargaining: It involves haggling over the distribution of surplus. There should be no outsiders involved in the process of collective bargaining. and cooperation. In order to maintain good relations. offers and counter offers.

To ensure the participation of trade unions in industry.4) Intra-Organisational Bargaining: It is a type of manoeuvring to achieve consensus among the workers and management. To maintain cordial relations between the employer and employees. 2. It is a two-way process. Both workers and management voluntarily participate in the negotiations. It is initiated through the representatives of the employees. It is a mutual give and take rather than a take home all method of arriving at a solution to a dispute. IIMT COLLEGE OF MANAGEMENT Page 81 . 4. 4. 2. face-to-face communication. It is a flexible and dynamic process where-in no party adopts a rigid attitude. 6. which provides a mechanism for continuous negotiations and discussions between management and the trade unions. It is a voluntary process without any third-party intervention. 5. it is a self-run government in action. That is why it is known as a bipartite process where workers¶ representatives and management get an opportunity for clear. It is a continuous process. Intra-organisational consensus is required for the smooth acceptance of the outcome of Collective Bargaining. 3. Characteristics of Collective Bargaining: 1. 3. To protect the interests of the workers through collective action and by preventing unilateral actions from being taken by the employer. discuss and arrive at a solution. 5. It ensures industrial democracy at the workplace. It is a group or collective action as opposed to individual action. Even within the union there may be differences between different groups as may be the case with the management. Objectives of Collective Bargaining: 1. To avoid the need for government intervention as collective bargaining is a voluntary collective process. To promote Industrial democracy.

Process of Collective Bargaining Preparation for Negotiation Identifying issues for Bargaining Negotiation Negotiated Agreement Ratification of Agreement Implementation of Agreement 1. Preparation for Negotiation: Preparation for negotiation in Collective Bargaining is as important as the negotiation process itself. Such preparation is required for both management as well as the union representatives. From the management s point of view. From the employees side also. Upto 83% of the outcomes are influenced by pre-negotiation process. preparation is required for the following reasons:  The union should collect the information related to the financial position of the company and their ability to pay the employees.  The union must also be aware of the various practices followed by other companies in the same region or industry.  Management must choose the representatives to negotiate at the negotiation table. prenegotiation preparation is required as:  Management should decide when and how to open the negotiations/dialogue. IIMT COLLEGE OF MANAGEMENT Page 82 .  Draft for likely decisions should be prepared in advance so that the final agreement draft can be prepared as soon as the negotiation process is over.

5. employee health and safety measures. The different types of issues are: Wage-related issues: Include wage or salary revision. accident compensation. Ratification of agreement: Ratification of negotiated agreement is required because the representatives of both the parties may not have ultimate authority to decide various issues referred to for collective bargaining. paid holidays etc. health insurance plans. gratuity plans. both parties engage in actual negotiation process at a time and place fixed for the purpose. 4. a change is incorporated only when new facts are presented by the employees or their unions. or trade executives in the case of the employees. allowance for meeting increased cost of living like Dearness Allowance (D. the company designs its own package based on the issues to be bargained. job security and job changes. Ratification is also required by the Industrial Disputes Act. grievance procedures. some throughout the life of each agreement. Initial negotiated agreement: When two parties arrive at a mutually acceptable agreement either in the initial stage or through overcoming negotiation breakdown. 2. incentives etc. 3. Based on the analysis of the findings. The wage and benefits issues are the ones which receive the greatest amount of attention on the bargaining table. the agreement is recorded with a provision that the agreement will be formalized after the ratification by the respective organizations. The success of negotiations depends on the skills and abilities of the negotiators.A). The ratification of agreement may be done by the appropriate manager authorized for the purpose in the case of management. Identifying issues for Bargaining: The second step in bargaining process is the determination of issues which will be taken up for negotiations. Thereafter. the management themselves takes the initiative to find out through comprehensive research and surveys the needs of the employees. It is IIMT COLLEGE OF MANAGEMENT Page 83 . The basic logic behind this method is that all persistent issues can be addressed through continuous negotiation over a period of time. The union must assess the attitudes and expectations of the employees over concerned issues so that the outcome of negotiations does not face any resistance from them. Supplementary economic benefits: These include pension plans. Administrative issues: Include seniority. There a re two types of negotiations: Boulwarism: In this method. Continuous Bargaining: Involves parties to explore particular bargaining problems in joint meetings over a long period of time. financial perks. Negotiation: When the first two steps are completed.

important that the agreement must be clear and precise. IIMT COLLEGE OF MANAGEMENT Page 84 . Any ambiguity leads to future complications or other such problems. rather it is the beginning of the process when the agreement is finalized. it becomes operational from the date indicated in the agreement. 6. The HR manager plays a crucial role in the day-to-day administration implementation. The agreement must be implemented according to the letter and spirit of the provisions made by the agreement agreed to by both parties. Implementation of agreement: Signing the agreement is not the end of collective bargaining.

It is a blueprint that is followed in processing research work. Thus in good research methodology the line of action has to be chosen carefully from various alternatives.CHAPER ± 3 RESEARCH METHODOLOGY A research methodology is a sample framework or a plan for study that is used as a guide for conducting research . IIMT COLLEGE OF MANAGEMENT Page 85 .

the degree to which product use varies with income. It is a kind of survey method. Descriptive research as the name suggests is designed to describe something ± for example the characteristics of users of a given product . IIMT COLLEGE OF MANAGEMENT Page 86 . Its purpose is to find answers to questions through the application to the scientific method. It is a systematic and intensive study directed towards a more complete knowledge of the subject studied. age. I studied the various types of inventory through out the training period.    Research always starts with a question or problem. a descriptive study must only collect data for a definite purpose. Research Design ³Research Design is the plan and structure of investigation so conceived as to obtain answers to research questions. This project study is related with the inventory management so the data is collected in this regard only. To be of maximum benefit. or the number who saw a specific television commercial. sex or other characteristics. So Research is scientific and systematic search for gaining information and knowledge on a specific topic or phenomena.RESEARCH DESIGN Meaning of research ³Research in common parlance refers to a search for knowledge´. Your objective and understanding should be clear and specific. It is actually a voyage of discovery. Research can be explained as a movement. a movement from known to unknown.´ Nature of Research Descriptive Research design is used for study.

E. Interviews.Mails. 1) Primary data:. Telephonic interview. IIMT COLLEGE OF MANAGEMENT Page 87 . they are not present in reports or journals etc. and can be collected through a number of method which can be classified as follow       Personal interview of sample. Observations.primary data are to be collected by the researcher . Questionnaires.METHODS OF DATA COLLECTION TYPES OF DATA PRIMARY DATA SECONDARY DATA This project is mainly based on the secondary data and information beside this primary data is also used.

Primary data for my project : The primary data for my research is the dispatch registers maintained by the company to know the purchase and stock of inventory in the organization. 2010. rating organization. company reports.Secondary data are the data collected for some purpose other than the research situations. SURVEY PERIOD Survey period is of few weeks from June 14th. It is not enough periods for the study to get the accurate a specific result of the study. Research work of others. 2) Secondary data:. The data is the already maintained in the manuals. Secondary data for my project: Mainly the used in this project is secondary.. journals. Company reports. census department etc. Book and journals. Sources of secondary data are      Internets. The secondary data are readily available and therefore they are less costly and less time consuming. 2010 to July 27th. such data are available from the sources such as books. IIMT COLLEGE OF MANAGEMENT Page 88 . Census department.

CHAPTER ± 4 ANALYSIS & INTERPRETATION IIMT COLLEGE OF MANAGEMENT Page 89 .

SAMPLING PLAN Sample Size:Sample unit:40 employees Indian oil cor. Ltd. Method of sampling:- Simple randam sampling Primary & secondary Descriptive Design Method of data collection:- Research design :- IIMT COLLEGE OF MANAGEMENT Page 90 .

5 70 60 50 40 satisfied 30 20 10 0 dissatisfied IIMT COLLEGE OF MANAGEMENT Page 91 .DATA ANALYSIS AND INTERPERTATION TOTAL NO OF RESPONDENTS =40 1) Are you satisfied with the Working Condition in IOCL? Total Respondents % of Respondents SATISFIED DISSATISFIED I. R.5 62. Rating 15 25 37.

5 90 80 70 60 50 40 30 20 10 0 satsisfied dissatisfied IIMT COLLEGE OF MANAGEMENT Page 92 . Rating Total Respondents % of Respondents YES NO 5 35 87.2) Are you aware of all the Welfare schemes provided by IOCL? I. R.5 12.

Rating Total Respondents % of Respondents SATISFIED DISSATISFIED 30 10 75 25 90 80 70 60 50 40 30 20 10 0 satsisfied dissatisfied IIMT COLLEGE OF MANAGEMENT Page 93 . R.3) Are you satisfied with the wages and incentives provided by IOCL.? I.

5 37.5 70 60 50 40 satsisfied 30 20 10 0 dissatisfied IIMT COLLEGE OF MANAGEMENT Page 94 . Rating Total Respondents % of Respondents SATISFIED DISSATISFIED 25 15 62.4) Are you satisfied with the provision of canteen at your workplace provided by IOCL? I. R.

R.5% 90 80 70 60 50 satsisfied 40 30 20 10 0 dissatisfied IIMT COLLEGE OF MANAGEMENT Page 95 .5) Are you satisfied with the provision of toilets at your workplace provided by IOCL? I. Rating Total Respondents % of Respondents SATISFIED DISSATISFIED 33 7 82.5% 17.

Rating Total Respondents % of Respondents SATISFIED DISSATISFIED 32 8 80 20 80 70 60 50 40 30 20 10 0 satsisfied dissatisfied IIMT COLLEGE OF MANAGEMENT Page 96 . R.6) Are you satisfied the Drinking Water facility in IOCL? I.

Rating Total Respondents % of Respondents SATISFIED DISSATISFIED 17 23 42. R.5 60 50 40 30 20 10 0 satsisfied dissatisfied IIMT COLLEGE OF MANAGEMENT Page 97 .5 57.7) Are you satisfied with compensation provided by IOCL? I.

Rating Total Respondents % of Respondents SATISFIED DISSATISFIED 18 22 45 55 60 50 40 30 20 10 0 satsisfied dissatisfied IIMT COLLEGE OF MANAGEMENT Page 98 . R.8) Are you satisfied with the medical benefits provided by IOCL? I.

R. Rating Total Respondents % of Respondents SATISFIED DISSATISFIED 8 32 20 80 80 70 60 50 40 30 20 10 0 satsisfied dissatisfied IIMT COLLEGE OF MANAGEMENT Page 99 .9) Are you satisfied retirement benefits provided by IOCL? I.

5 87. Rating Total Respondents % of Respondents SATISFIED DISSATISFIED 5 35 12.5 90 80 70 60 50 40 30 20 10 0 satsisfied dissatisfied IIMT COLLEGE OF MANAGEMENT Page 100 .10) Are you satisfied with the recreation facilities? I. R.

Majority of Employees are satisfied with the drinking water facility provided by the IOC Ltd. and 62. 40% are dissatisfied with the grievance handling procedure of the company.5% are dissatisfied with the compensation provided by the IOC Ltd. Majority of Employees are dissatisfied with the medical benefits provided by the IOC Ltd.5% of Employees are satisfied.5% Employees are satisfied. 60% satisfied and remaining employees are dissatisfied with the transport facilities provided by the IOC Ltd.FINDINGS 1) 37.5% dissatisfied with the working condition provided by the IOC Ltd. 57. 62. 42. Majority of Employees are satisfied with their job profile. Majority of Employees are aware about the welfare schemes provided by the IOC Ltd.5% Employees are satisfied. with the rest room facility provided by the IOC Ltd. Majority of Employees are satisfied with the salary and incentives provided by the IOC Ltd. Majority of employees are dissatisfied with the retirement benefits provided by the IOC Ltd. Majority of employees are dissatisfied with the recreation facilities provided by the IOC Ltd. 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) IIMT COLLEGE OF MANAGEMENT Page 101 .

3) It is possible that respondents might have tried to maintain consistency in terms of their responses. 2) Some of the respondents do not react favorably to the questionnaires.LIMITATIONS 1) The sample collected is very small compared to the population of the company. Thus it may not bring out the exact analysis. 4)time of 6-8 weeks are also very less for the study. IIMT COLLEGE OF MANAGEMENT Page 102 .

CONCLUSION
Indian Oil Cor. Ltd. is growing at a very good place .As from graphs it is clear that the industrial relation operation in IOC Ltd. is effective one.There are different kind of welfare schemes like weekly rest ,medical allowance, death relief fund are provided by the company to the employees to maintain the industrial relation better one . Instead of all that there is also a effective grievance handling machinery for maintaning it.

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SUGGESTIONS
If the employees are in good condition then it drives their capability to give maximum output to the company. Indian Oil Co.Ltd. had successfully accomplished their target to uplift the standards of the people but somewhere they lag behind to give proper insight into the true benefits availed to the people. In this context I want to suggest some points that are more or less based on my findings. 1)Implementation of the Code of Discipline. 2) I also found that there is no medical Officer. This is needed to provide quick action in case of any accident. 3)there should be need of improvement in recreation facilities provided by the Indian Oil corporation Ltd. 4)there should need to increase the retirement benefits provided by the Indian Oil Corporation Ltd. 5)management should provide wage revision to the employees which is due from January 2007. 6)internal management should be more strong so that it can create more healthy working conditions in the organization.

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BIBLIOGRAPHY
Manual and books: Personnel Manual by Indian oil corporation Limited.. Industrial Relations & Labour laws (fourth edition) by S C Srivastava Personnel Management by S.K. Gupta Human Resource Management (second edition) by V.S.P. Rao Search Engine: http://www.google.com http://www.ask.com Website: http://www.iocl.com

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ANNEXURE Employee Name: _______________ Designation: ___________ 1) Are you satisfied with the Working Condition in IOC Limited? a)Yes b)No 2) Are you aware of all the Welfare Activities in IOC Limited?? a)Yes b)No 3) Are you satisfied with the wages and incentives provided by IOC Ltd.? a)Yes b) No 4) Are you satisfied with the provision of toilets at your workplace? a)Yes b)No 5) Are you satisfied the Drinking Water facility in IOC Limited? a)Yes b) No 6) Are you satisfied with the compensation provided by IOC Ltd? a)Yes b)No 7) Are you satisfied with the medical benefits provided by IOC Ltd? a)Yes b)No 8) Are you satisfied retirement benefits provided by IOC Ltd? a)Yes b)No 9) Are you satisfied with the recreation facilities provided by the company? a)Yes b)No 10)Are you satisfied with the transport facility provided to you by the IOC Ltd? a)yes b)No 11)Is there any kind of grievance handling procedure provided to you by the IOC Ltd? IIMT COLLEGE OF MANAGEMENT Page 106 .

please mention here ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ IIMT COLLEGE OF MANAGEMENT Page 107 .a)yes b)No 12)Are you satisfied with the grievance handling procedure provided to you by the company? a)yes c)No 13)if there any suggestion regarding to improve the industrial relation operation in IOC Ltd.

IIMT COLLEGE OF MANAGEMENT Page 108 .

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