Understanding the

Organizational
Structure &
Influencing Factors
Let’s understand IOCL from its Vision
Statement
IndianOil, a diversified, integrated energy major with
presence in almost all the streams of oil, gas,
petrochemicals and alternative energy sources; a world
of high-calibre people, state-of-the-art technologies and
cutting-edge R&D; a world of best practices, quality-
consciousness and transparency; and a world where
energy in all its forms is tapped most responsibly and
delivered to the consumers most affordably
 What does the current organizational structure
look like?
Chairman

Chairman additional Chairman additional Chairman additional

charge of Director charge of Director charge of Director Director (R&D) Director (P&BD) Director (HR)
(Marketing) (Refineries) (Pipelines)

Corporate Health, Safety & Central Vigilance Director

Internal Audit
Strategy Environment Officer (Finance)

Functional
Verticals
 What are “Functional Verticals” ?
Functional Vertical

Executive Deputy Managers Executives

Supervisor (VI)
Directors (I) (C) 2864 3438
64 Workmen

General Managers Assistant

Skilled (V)
(H) Managers (B)
3480
157 2876

Deputy General
Officers (A) Skilled (IV)
Managers (G) 478
4342 3743

Chief
Supervisor (IX) Unskilled (III)
Managers (F)
1375 520
1217

Senior
Supervisor (VIII) Unskilled (II)
Managers (E)
5093 48
1297

Managers (D) Supervisor (VII) Unskilled (I)

1712 1280 405
Can IOCL be structured on “geographical” basis?

Corporate
Office
New Delhi

Pipeline Marketing Refineries

R & D Division
Division Division Division
Faridabad
Noida Mumbai New Delhi

NR - New Delhi ER - Kolkata WR - Mumbai SR - Chennai

Project
Location Offices
TLDR; Current
Structure of • The structure of the organization can be viewed from two

IOCL perspectives, Functional and Geographical. Looking at them side

by side will help us understand the employees' hierarchy of
authority and their work locations.
• The verticals of all the functions remain almost same - Executives
& Workmen. These employees are based out in different project
locations.
• The current structure seems to be hierarchical in nature and tall.
• Their geographical structure is complex as they are spread
across multiple project locations.
 • The basic administrative structure of IOC hasn’t
History of IOC’s changed much over the years.
• The administrative organizational structure has
Organizational Structure remained centralized, with major control
concentrated in the hands of Board of Directors.
• The span of control has also largely stayed the same,
narrow, with slight changes over the years like
addition of new roles and responsibilities.
• The geographical structure has changed over the
years as more refineries, pipelines, and verticals
have been added to IOC.
• Over the years, IOC had many acquisitions and
mergers, leading to geographical structural changes.
 Indian Oil
Corporation Limited
Integrated Energy

Upstream Downstream Retail Retail

Diversification R&D
Portfolio Portfolio Marketing Automation

Overseas Petrol Stations Operations

Participation Multi
Interest in Oil Joint Fast
ventures ATM Grade
and Gas Blocks Food Rail Road Crude Oil
and Product
Cyber Pipelines
Grocery
Farm Blocks- Cafe Bio Fuel
North east Oil Equity
India Optimized
Mall supply
Dispenser chain
ISFL
Coal Beds Natural Gas
and methane from S. Africa & LNG Non Fuel IT Platform
block CIS countries Retailing
SAP
Hydrogen enterprise
Marine Aviation
Energy resource
Overseas Lubricant Lubricant
LNG LNG at Planning
Oil and gas
Infrastructure Doorstep
blocks
 Operations Marketing

Role of Strategy in Complexity High High

Organizational Structure Formalization

Centralization
Low
Low
Low
Low

• Forward integration into petrochemicals - Complex operations

• Backward integration into exploration and production - Complex operations
• Diversification strategies - Less centralization, Increase in Horizontal structure
• Globalization of marketing - Less Centralization, Complex geographical structure
• Retail automation and preventing adulteration - High Centralization
• Retail marketing strategies
• Combining factors better for both country and firm
 Routine technological Non-Routine
units technological units
E.g.: Refineries, Pipelines E.g.: R&D , Exploration

Role of Technology Complexity

Formalization
Low
High
High
Low
Centralization High Low

Automation and expansion in Retail outlets Span of Control

Formalization
to increase organizational efficiency Horizontal
Marketing Vertical Differentiation

Bio fuels such as Green hydrogen plants, Horizontal Differentiation

compressed Bio-gas & less Sulphur Diesel
R&D Vertical

Partnered with Informatica to establish a

Centralization Complexity
online centralized platform for distributors
IT Platform
High R&D investment on existing products like
Complexity
refinery upgradation, efficient pipelines, etc.
R&D Vertical
Role of Environment in IndianOil
1. Low Sulphur (0.5%) Diesel was introduced in
metros from April 1996. Extra-low Sulphur
(0.25%) Diesel was introduced across the country
from 1st January 2000

2. Unleaded Motor Sprit (petrol or Gasoline) was

1. Comprehensive safety, made available all over the country since
1. Global Compact
health & environment February 1, 2000
Programme of the
management system
UN – Sustainable
3. The R&D Centre of IndianOil is engaged in the
Development
2. Periodic review and formulations of eco-friendly biodegradable fuel
upgrade formulations
2. Accredited for
Occupational Health
3. Ambient air 4. Clean development project by having green belts
& Safety Assessment
monitoring stations and ecological parks in each of its refineries
Series
with automatic
continuous monitoring 5. IndianOil has invested about Rs. 7,000 crore so
3. Accredited to
far in green fuel projects at its refineries
International Safety
4. Full-fledged effluent
Rating System (ISRS)
treatment plants
 Understanding effects of
Environment on Structure Chairman

Health, Safety
& R&D
Environment

Health & Environment Multi-grade Hydrogen

Protection
Bio-fuel ISFL
Safety Road Energy

Quality
Treatments
Check

Increased focus in diversification of energy Horizontal Differentiation Centralization

procurement and research
R&D Vertical
Focus on health and safety along with maintaining Formalization Centralization
guidelines for environment protection
Health, Safety & Protection
Implications & Learnings Suggestions

Proactive to
Change

Quick decision
making
1. Oil and Gas to 1. Focusing on
Energy expansion nationally Diversification
as well as 1. Intra-functional and
2. Incorporating 1. Focus on inter-functional job
internationally. Involve private
renewable sources specialization and rotations
innovation partnerships
of energy into their 2. Increasing upstream
portfolio portfolio 2. Upskilling and
2. Inculcate core values development of Promote
3. Stricter adherence – “Care-Innovation- career plan “Learning”
3. Increase Retail
to health and safety Passion-Trust” culture
offerings [ non-fuel ]
industry wide 3. Leverage IOC’s
3. Prepare for IndianOil Institute of
4. Increase focus on
4. Environmental geographically Petroleum
R&D specially for
regulations from complex teams Management (IIPM)
hydrogen and bio-
operating fuels.
governments
Involve “Change Management”