Training and Development- Indian Oil

TRAINING AND DEVELOPMENT
INTRODUCTION
Every organization needs to have well trained and experienced people to perform the activities that have to be done. Training is a process of learning a sequence of programmed behaviour. It is application of knowledge. It gives people an awareness of the rules and procedures to guide their behaviour. It attempts to improve their performance on their current job and prepare them for an intended job. Development is a related process. It covers not only those activities, which improve job performance, but also which bring about the growth of the personality; help individuals in the progress towards maturity and actualization of their potential capabilities so that they become not only good employees but better men and women. In organizational terms, it is intended to equip person to earn promotions and hold greater responsibility. Training a person for a bigger and higher job is development. In addition, this may well include not only imparting specific skills and knowledge but also inculcating certain personality and mental attitudes. As the jobs become more complex, the importance of employee development also increases. In a rapidly changing society, employee training and development are not only an activity that is desirable but also an activity that an organization must commit resources to if it is to maintain a viable and knowledgeable work force. Training has played a very important role in helping the corporation to reach the commanding heights of performance. Any training would be considered 1

Training and Development- Indian Oil successful only when the knowledge gained by the participants is transferred to the job performance Training is the main function of HR. To enhance the Corporation's growth and keep the Corporation ready to anticipate all types of competition and face it too, there is a need that Human Resource should play more active role for overall progress of the Corporation. The impact of training programme is to mould the employee’s attitude and help them to synergies individual goals with organizational goals. It also helps in reducing dissatisfaction, complaints, absenteeism, and labour turnover.

DEFINITION
According to Flippo, “Training is the act of increasing knowledge and skills of an employee for doing a particular job" The major outcome of training is learning. A trainee learns new habits, refined skills and useful knowledge during their training programme, which helps them to improve their performance. Training can also be defined as activities designed to change the behaviour. Another way of defining training would be a planned programme designed to improve performance and bring about measurable changes in knowledge, skills, attitudes, and social behaviour of employees. Training imparts the ability to detect and correct error. Further, more it provides skills and abilities that may be called on in the future to satisfy organisation’s human resources needs.

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Training and Development- Indian Oil

MANAGEMENT DEVELOPMENT
Management development is an attempt at improving an individual’s managerial effectiveness through a planned and deliberate process of learning. For an individual this means a change through a process of planned learning. This should be the common and significant aim of development from the point of view of the trainer and the trainee in an organisational setting. “All development is self development. It must be generated within the main himself. Development is highly individual. The development of an individual is due to his day-to-day experience on a job. Hence, emphasis should be on experiences from day to day work. Any activity designed to improve the performance of existing managers and to provide for a well-planned growth of managers to meet future organisational needs is management development. The change in the individual must take place in those crucial areas which can be considered as output variables:•Knowledge Change •Attitude Change •Behaviour Change •Performance Change •End-Operational Results (The Last Two Changes Being The Result Of The First Three Changes)

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Training and Development- Indian Oil

TRAINING PHILOSOPHY:
Training constitutes an important component of overall Human Resource Management (HRM) strategy. It is a part of the Human Resource Management efforts of the organization that enables the employees of the organization to continuously update their functional knowledge and skills in various disciplines. The employees should be familiar with the latest technological developments, organizational procedures and system as well as various Management concepts. An opportunity should, therefore, be provided by the organization to its employees, particularly in management cadre, to attend the management training courses, who in turns can share their knowledge and experience with the juniors in the organization. One of the basic philosophies of the training programmes is to bring together participants of different disciplines from different regions so that they can exchange their work experience and the problems being encountered, with other participants. After employees have been selected for various positions in an organization, training them for specific task to which they have been assigned, assumes great importance. Training is an important activity in an organization.

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1.Training and Development. in achieving this objective. and attitudes of our employees so that they can perform more productively and achieve the business goals. It is recognized that the employees learn primarily from on-the-job experience. vocational in nature o Short-term activity designed especially for operatives. skills. o Bridge the gap between job needs and employee skills. 3. the primarily contribution is from on-the-job training and supporting contribution from the formal training effort. Therefore. 5 . To Equip Employee To Meet The Changing Requirement Of The Job And Organization. 2. Objectives Of Training The overall training objective is to develop required knowledge. o Job oriented process. To Teach The Employees The New Technique And Ways Of Performing The Job Or Operations. To Impart Basic Knowledge And Skill To New Entrants And Enable Them To Perform The Job Well.Indian Oil Features Of Training o Increase knowledge and skill for doing a job.

Indian Oil 4. flexibility. They seldom leave the company. Training has always played an important and integral part in furthering many kinds of human learning and development. which is reflected in increased profits from year to year. the fact that training can make an important. complaints can be reduced if employees are trained well. Training and Development programmes help remove performance deficiencies in employees. Even dissatisfaction. • The individual(s) involved have the aptitude and motivation needed to learn to do the job better. Accidents. scrap and damage to machinery and equipment can be avoided or minimized through training. consistent. and long-term investment in this function. Training contributes to employee stability in two ways. organizations. Employees become efficient after undergoing training. 6 . However. This is particularly true when – • The deficiency is caused by a lack of ability rather than a lack of motivation to perform. Growth renders stability to the workforce. and capacity for growth in an organization. There is greater stability. • Supervisors and peers are supportive of the desired behaviours. contribution to organizational effectiveness is only now being recognized fully. Growth indicates prosperity. All rounder can be transferred to any job. if not crucial. Companies. Further. Efficient employees contribute to the growth of the organization. and government are beginning to appreciate the value of adequate. Flexibility is therefore ensured.Training and Development. Training makes the employee versatile in operations. To Prepare Employees For Higher Level Task And Build Up A Second Line Of Competent Managers. trained employees tend to stay with the organization.

enhances its human resource capabilities and strengthens its competitive edge. generally adding to his abilities and value to the employer. 7 .Training and Development. Though no single training programme yields all the benefits. the organization.Indian Oil Training Is An Investment In Human Resource With A Promise Of Better Returns In Futures. the employee’s personal and career goals are furthered. At the same time. A company is training and development pays dividends to the employee and the organization. which devotes itself to training and development.

Training plays a vital role in this regard. All formal training activities conducted by the Training Centres at Head Office and at Regional Offices are in line with the organizational needs. which takes place on-the-job. The vitality of an organization depends upon its capacity to adapt itself to change. The primary role of training is to assist the employees in their pursuit of knowledge and self-actualization. expounding the belief that there are no limits to human potential and growth and such potential should be transformed into reality.Indian Oil Role And Scope Of Training Training has been performing a very important role in helping the Corporation to reach the commanding heights of performance over the years. 8 . Formal training efforts of the Training Centres are directed towards supplementing the primary training process. Any training would be considered successful only when the knowledge gained by the participants of various programmes is transferred to their job performance.Training and Development. And the current changing environment calls for this the most.

Training and Development.” Again. 3. are most evident on the part of new employees who are not yet fully aware of the most efficient and effective ways of performing the jobs. internal promotions become stressed. Increased human performance often directly leads to increased operational productivity and increased company profit. To Help A Company Fulfill Its Future Personnel Needs: Organizations that have a good internal education programme will have to make less drastic manpower changes and adjustments in the event of sudden personnel alterations. financial incentives may then be increased. Production and product quality may improve. 4. To Improve Quality: Better-informed workers are less likely to make operational mistakes. To Improve Organisational Climate: An endless chain of positive reactions results from a well-planned training program. Quality increase may be in relationship to a company product or service. 2. When the need arises.Indian Oil Need For Training The need for the training of employees would be clear from the observations made by the authorities 1. organisational vacancies can more easily be staffed from internal sources if a company initiates and maintain an adequate instructional programme for both its non-supervisory and managerial employees. or in reference to the intangible organisational employment atmosphere. increased performance and productivity. To Increase Productivity: Instruction can help employees increase their level of performance on their present assignment. because of training. less 9 .

and enlightened altruistic philosophy. 10 . which may be due to age. and base pay rate increase result.Indian Oil supervisory pressure ensure. 6. To Improve Health And Safety: Proper training can help prevent industrial accidents. temperament or motivation. Managerial mental state would also improve if supervisors know that they can better themselves through company-designed development programmes. but one of the most important of these is the current state of an organisation’s educational endeavor. an enlarged skill. Obsolescence Prevention: Training and development programmes foster the initiative and creativity of employees and help to prevent manpower obsolescence. 7. and make enhanced personal growth possible.” Again. or the inability of a person to adapt him to technological changes. 5. Increased morale may be due to many factors.Training and Development. “Management development programmes seem to give participants a wider awareness. Personal Growth: Employees on a personal basis gain individually from their exposure to educational experiences. A safer work environment leads to more stable mental attitudes on the part of employees.

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

Develop a willingness to change. The best technique for one situation may not be best for different groups or tasks.Indian Oil Training Methods/ Techniques The forms and types of employee training methods are inter-related. • • Provide motivation to the trainee to improve job performance. if not impossible. to say which of the method or combination of methods is more useful than the other. Infact. methods are multifaceted in scope and dimension. and permit practice where appropriate. Care must be used in adapting the technique/ method to the learner and the job. feedback).Training and Development. and each is suitable for a particular situation. It is difficult. 12 . An effective training technique generally fulfills this objective.e. • Provide a knowledge of results about attempts to improve (i. provide further trainee’s active participation in the learning process.

The main advantage of on-the-job training is that the trainee learns on the actual equipment in use and in the true environment of his job. a transfer from a training centre or school to the actual production conditions following the training period is allowed. therefore. He. by supervisors. from the clerk to the president. regulations procedures by observing their day-to-day applications. 13 . gets “On-The-Job Training”. In this way. and orienting him with his immediate problems. It is mostly given for unskilled and semi-skilled jobs. it is highly economical since no additional personnel or facilities are required for training.Indian Oil VARIOUS TRAINING TECHNIQUES On–The-Job. Employees are coached and instructed by skilled co-workers. It is primarily concerned with developing in an employee’s skills and habits consistent with the existing practices of an organization. the trainee learns the rules.clerical and sales jobs. therefore be easily sized up by the management. He can. and it is most useful for jobs that are either difficult to stimulate or can be learned quickly by watching and doing it. gets a feel of the actual production conditions and requirements.Training and Development. by the special training instructors. Secondly. They learn the job by personal observation and practice as well as occasionally handling it. when he joins a firm. He is learning by doing. Thirdly.Training: Virtually every employee.

attitudes. It permits the trainee to practice without the fear of the supervisors/ co-workers observation and their possible ridicule. machine operators. Theoretical training is given in the classroom. particularly when many employees have to be trained for the same kind of work at the same time. Training is generally given in the form of lectures. it is geared to job duties. The various advantages of vestibule training are: • • As training is given in a separate room. • • The correct method can be taught without interrupting production. It is most useful when philosophic concepts. etc. conferences. This technique enables the trainee to concentrate on learning the new skills rather than on performing on the actual job. It is often used to train clerks. A trained instructor.Training and Development. while the practical work in conducted on the production line. Its is a class room training which is often imparted with the help of the equipment and machines which are identical with those in use in the place of work. case studies. In other words. who knows how to teach. and problem solving abilities have to be learned. typists. role-playing and discussion.Indian Oil Vestibule Training This method attempts to duplicate on-the-job situations in a company classroom. testers. inspectors. can be more effectively utilized. 14 . theories. It is a very efficient method of training semi-skilled personnel. bank tellers. distractions are minimized.

which are to be trained within a short time. or in associations. thus reducing the cost per training. Lectures are formal organized talks by the training specialists. case studies. and demonstrations. It can be organized rigorously so that ideas and principles relate properly. Case Studies 5. The lecture methods can be used for very large groups. the formal superior or other individual specific topics. attitudes. which are owned by the company. esp. which have no connection with the company. The actual location may be in the company classroom or in the places. Lectures 2. concepts. They are usually enlivened with discussions. Lectures: Lectures are regarded as one of the simplest ways of imparting knowledge to the trainees. or in universities. 15 .Indian Oil Of-The-Job Methods: “Of-the-job training” simply means that training is not a part of everyday job activity. Programmed Instructions 1. role-playing. Conferences 3. Lectures are essential when it is a question of imparting technical or special information of a complex nature. film shows.Training and Development. theories and problems-solving abilities are to be taught. or principles. when facts. This method consists of: 1. Group Discussions 4.

It is a formal meeting. It lays emphasis on small group discussions. • • Introducing a subject and presenting an overview of its scope. clarifying and summarizing. • The main advantage of lecture system is that it is simple and efficient and though it is more materialistic. A conference is basic to most participative group-centered methods of development. • Illustrating the application of rules. The conference is ideally suited for the purpose of analyzing problems and issues and examining them from different viewpoints. in which the leader seeks to develop knowledge and understanding by obtaining an considerable amount of oral participation of the trainees. Presenting basic material that will provide a common background for subsequent activities. Learning is facilitated by building up on the ideas contributed by the conferees.Training and Development. 2. and on the active participation of the members involved. the most important uses of lectures include: • Reducing anxiety about upcoming training programmes or organisational changes by explaining their purposes. Conference Method: In this method. the participating individuals ‘confer’ to discuss point of common interest to each other.Indian Oil In training. reviewing. It is an excellent method for development of conceptual knowledge and for reducing 16 . conducted in accordance with an organized plan. principles. it can be presented within a given time. on organized subject matter.

• It may be based on the statement made by the person incharge of the group discussion or on a document prepared by an expert. contemplation. encourages discussion. they are asked to identify the problem and recommend tentative solution for it. written or oral miniature. defines the general trends. Group Discussions: This is an established method for training. A group discussion is conducted in many ways: • It may be based on a paper prepared by one or more trainees on a subject selected in consultation with the person incharge of the group discussion. and this is followed by critical discussion. • The person incharge of the group discussion distributes in advance the material to be analysed in the form of required readings. The trainees read their papers. who is invited to participate in the discussion. When the trainees are given cases to analyse. and guides the participant to certain conclusions. Case Studies: “The case study is based on the belief that the managerial competence can best be attained through study. This method offers to the trainees matter 17 . and summary of such data that present issues and problem calling for solutions or action on the part of trainee. 4. and discussion of concrete cases. The group discussion compares the reaction of trainees.Indian Oil dogmatism and modifying attitudes because the participants develops solutions and reach conclusions. description.Training and Development. It may be a part of a study or related to theoretical studies or practical problems. which they often willingly accept. 3.” The ‘case’ is the set of data.

or desired course of proceedings pertaining to the learning or acquisitions of some specific skills or general knowledge. 5.Indian Oil for reflection and brings home to them a sense of complexity of life as oppose to theoretical simplifications of. It incorporates a pre-arranged. proposed. A programmed instruction involves breaking information down into meaningful units and then arranging these in a proper way to form a logical and sequential learning programme or package. 18 . Programmed Instruction: Programmed instruction involves a sequence of steps. The case study is primarily useful as a training technique for supervisors and is especially valuable as the technique of developing decision-making skills and for broadening the perspective of the training. and practices in the decision-making process.Training and Development. which are often set up through the central panel of an electric computer as guides in the performance of a desired operation or series of operations.

Indian Oil EVALUATION OF TRAINING PROGRAMME Objectives of training evaluation is to determine the ability of the participant in the training programme to perform jobs for which they were trained. To get a valid measure of training effectiveness. the personnel manager should accurately assess trainee’s job performance two or four months after completion of training. Evaluation must provide the means and focus for trainers to be able to appraise themselves. There are various approaches to training evaluation. the specific nature of training deficiencies. and the extent of training not needed for the participants to meet the job requirements. A sense of urgency must be developed. their practices. Evaluation of the training programme must be based on the following principles: • Evaluation specialist must be clear about the goals and purpose of evaluation. Realistic target dates must be set for each phase of the evaluation process. • • Evaluation must be based on objective methods and standards. but deadlines that are unreasonably high will result in poor evaluation. and their products. whether the trainees required any additional on the job training. 19 . • • Evaluation must be continuous.Training and Development.

Indian Oil 20 .Training and Development.

Indian Oil THE INDIAN PETROLEUM INDUSTRY The Petroleum industry in India stands out as an example of the strides made by the country in its march towards economic self-reliance.2 (34.9 62.0) (39. Today.5% over 104. an increase of 3.7 68. Oil Production & Consumption In India (Million Tons) 2004 Crude Oil Production Crude Oil Consumption Deficit (Met By Imports) 32.9 (33.0) In order to understand the level of Indian demand for petroleum products in a global perspective.5 2005 32 86 2006 32.5) 2004 32. At the time of independence in 1947.000 dealerships and distributorships has been developed backed by over 400 storage points over the years to serve the people even in the remote and once-inaccessible areas. the industry is largely in the public domain with skills and technical expertise comparable to the highest international standards.7 million tonnes in 2003-04.Training and Development.9) 2003 33. A vast network of over 29.8) (54.33 million tonnes per annum and refining capacity from 0.25 to 0.9 65. 21 .5 103.5 (71. after 60 years later. international companies controlled the industry. The testimony of its vigour and success during the past five and half decades is the significant increase in crude oil production from 0. the following table furnishes a comparison of per capita consumption of petroleum products in the various parts of the world.3 to 103 million metric tonnes per annum. The consumption of petroleum products has grown 30 times in the last 50 years from 3 million tonnes during 1948-49 to about 107.1 million tonnes registered in 2002-03.

Growth In the 60 years since independence. 22 . was formed for marketing of petroleum products. Esso Stanvac. viz. again a wholly owned Government company. Under its banner. Barauni (Bihar). a strong growth potential exists in India. Indian Refineries Ltd. became a Commission in 1956. The second decade (1957-67) witnessed the setting up of the Indian Refineries Ltd. and Koyali (Gujarat) essentially to process the indigenous crude discovered in Assam and Gujarat. a wholly owned public sector Government Company. and Caltex. to form Indian Oil Corporation Ltd. A major boost to the oil industry came in pursuance of the Industrial Policy Resolution.Indian Oil (Kilograms per annum) India China North America World Average 98 165 2. the first two at Mumbai and the third at Vishakhapatnam. Burmah Shell. The first decade of Independence (1947-57) saw the establishment of three costal refineries by multinational oil companies operating in India at that time. India has witnesses a significant growth in the refining facilities and increase in the number of refineries from one to eighteen now.610 585 With the per capita consumption level in India being only about 60% of that in China. on 1 September 1964. in 1985. three refineries were set up at Guwahati (Assam). which was formed a Directorate in 1955.Training and Development. 1956 that intended to promote growth of the vital sectors such as petroleum under the State control. the Indian Oil Company (INDIAN OIL). ONGC. given particularly a large population base of over a billion. In 1959. was merged with Indian Oil Company Ltd.

in 1991 decided to open up the exploration and production of oil and natural gas to the private sector. Engineers India Ltd. an MMTpa refinery was built in the joint sector at Mangalore between HPCL and Indian Rayon. thereby raising the refining capacity to about 62 MMTpa. Major expansions of the coastal refineries at Mumbai. This represents only less than 50% of country’s requirement of petroleum. and the dwindling reliance on indigenous production of oil and natural gas. The refinery at Bongaigaon was the first experiment in having an integrated petroleum refinery-cum-petrochemicals unit. 23 . a small refinery of 0. During the fifth decade (1987-97). The balance had to be made good by imports putting our foreign exchange to a great strain.Training and Development. Chennai. and installation of Secondary Processing Facilities to increase the production of much required kerosene. and another in the public sector at Haldia by Indian Oil. In 1996. The Period 1977-87 saw the commissioning of two more refineries in the public sector. The notable feature of the capacity additions during this decade have been the extensive utilization of the process design capabilities of M/s. one with equity participation from America and Iranian companies at Chennai.5 MMTpa (Million metric tonnes per annum) at Nagapatinnam was built in Tamil Nadu. However.Indian Oil The next ten years period (1967-77) witnessed the establishment of two refineries. It is based on crude from adjoining fields. This decade also saw significant expansion to the capacities of the existing refineries. and Vishakhapatnam were also completed during this period. Cochin. diesel and LPG. the Government of India. Considering the ever-growing demand of petroleum at the rate of about 7% per annum. The other refinery was set up at Mathura in 1982. the production of crude oil increased to over 35 million tonnes per annum in the year 1997-98.

In the upstream sector. The year 2003-04 saw important developments in Government policy as well a concerted efforts by individual companies to align their plans and progress with the free market scenario. through public offer. Indian Oil had acquired 33. one in the joint sector and one in the private sector. in a number of bidding rounds. the Government of India successfully sold 10% of its equity in Oil & Natural Gas Corporation Ltd. The government also decided to open up oil exploration in the deeper continental shelf by private parties. during the year.58% of Government of India’s equity in IBP through competitive bidding process. as many as 21 small oil-gas fields and more than a dozen exploration blocks were awarded to private parties. Significant hydrocarbon discoveries in the blocks awarded earlier enhanced the prospects of finding more oil & gas reserves in the country. the Government of India signed 20 contracts for oil & gas exploration under the fourth round of New Exploration Licensing Policy (NELP) and eight contracts under the second round of the Coal Bed Methane (CBM) Policy. and thereafter acquired another 20% through open offer to the public. for exploration and production work. On the disinvestments front. Ltd. For enhancing the country’s oil security. to meet the ever-growing requirement of natural gas in the country. there are 18 refineries operating in the country. Earlier in 2002. Consequently.Training and Development.(ONGC) and GAIL (India) Ltd.Indian Oil The ministry of petroleum invited bids from the private parties / consortiums. the Government decided to set up 5 million tonnes of strategic crude oil storage in the country at Mangalore and Vishakhapatnam. with an installed capacity of 102 million metric tonnes per annum. The Government also sold its residual equity of 26% in IBP Co. which will be built and operated by Indian Oil. With the setting up of Panipat Refinery in 1999-2000. 15 in the public sector. It was also decided by government to import Liquefied Natural Gas. 24 .

2001 25 .Indian Oil DEMAND FOR PETROLEUM PRODUCTS Demand Growth From 1991 .Training and Development.

we shall continue to be subject to volatility in the international prices of oil.03.1991 Crude Oil Processing Demand For Total Petroleum Products 52 Million Tons 55 Million Tons Consumption In Year Ended 31. Indian refiners were severely impacted by the everrising and fluctuation price of crude oil and products in the international market. the major concern of the petroleum industry was the rising cost of crude oil.Training and Development. are therefore steps in the right direction 26 .Indian Oil The Indian GDP and energy consumption have each grown at the rate of about 6% per annum from 1991 to 2001. Growth Rate 5. The strengthening of the Indian Rupee against the US Dollar helped limit the impact partially. Concerted steps taken by the Government to augment indigenous production through the NELP rounds. and encouragement to Indian companies in acquiring equity oil and gas abroad.2001 103 Million Tons 94 Million Tons Compound Avg. Correspondingly the demand for petroleum products has been growing steadily as shown below: Growth Rates: Crude processing & demand for petroleum products (1990-91 to 2000-01) Consumption In Year Ended 31.5 % Threats: Towards end of the year. Since our country is still dependent on imports to the extent of 70% of its requirement.03.1 % 5. While the uprising in gross refining margins helped improve the bottom line.

Superior Kerosene Oil etc in the near future. The Government of India had already decanalised some products like Furnace Oil. From an annual consumption of less than 3 Million Tonnes in 1948-1949 India’s Petroleum products consumption has grown to 107.Indian Oil INTRODUCTION: Petroleum is one of the most valuable natural resource in the world. The flexibility of grabbing more market share will intensify after decontrol of these products from the Government. Consumption of Petroleum products is an index of a country’s development. It shows the growth rate of Petroleum Industry in the country in the post independence period. Liquefied Petroleum Gas. Aviation Turbine Fuel etc and also trying to decontrol High Speed Diesel. The Indian oil sector is in the threshold of major changes. Motor Spirit.7 Million Tonnes in 2003-2004. Some people call it as “Black Gold”. 27 .Training and Development. but it may be better described as the Life Blood of Industrialised Countries. In spite of Government regulations there exists an intense competition among the existing oil companies. industrialisation and economic well-being.

O.8. (As per the Fortune Listing).56MMT in 2002-03 to 48. Indian Oil Corporation as an idea was born out of the Industrial Policy Resolution of 1956 and since then has emerged as one of the largest and leading corporations in the world.Training and Development.691 crore (Rs. The total sales volume (inclusive of export sales) increased from 47. registering a growth of 15. 4.2.915 crores for 2005-06). In another major feat. Indian Oil has also been adjudged No. the Government of India decided to establish a nationally owned and controlled Oil Industry in the India under the Ministry of Petroleum and Natural Gas.706/crores. The Corporation recorded the highest ever Profit Before Tax of Rs. registering a growth of 2. 2.83. The Profit before tax for the year ending 2005-06 was 6.1.2 %.299 crore Tax) in 2002-03. Indian Oil earned ‘Excellent’ rating for its performance in its M. In the year 2005-06 INDIAN OIL has achieved a sales turnover of Rs.61MMT in 2003-04.Indian Oil In order to protect national interest. 28 .414 crore (Rs.204/-crores (profits of Rs. Indian Oil Corporation Limited (INDIAN OIL) is the 18th largest Petroleum Company in the World. Indian Oil was ranked among the top 10 ‘Best Employers in India–2004’ in a joint survey conducted by Business Today and Hewitt Associates across 220 organizations. 1 in petroleum trading among the national oil companies in the Asia-Pacific region. It is the only Public Sector Undertaking among ‘India’s Top 10 Companies’ listed by the Far Eastern Economic Review in 2004. 109 crores and a profit of 1 crore in 1964-65.U with the Government of India for the year 2003-04. Indian Oil started with a sales turnover of Rs. INDIAN OIL is ranked 153 rd among the 500 largest companies in the world.2 %.686 crore tax) during 2003-04 as against Rs.9. For 15th consecutive year.

. In the year 1956. In 1970. Shell.Indian Oil Indian Oil deals with various petroleum products. Aviation Turbine Fuel / Jet Kero 9. Lubes And Greases 3. Parliament passed an Industrial Policy Resolution bringing Oil under the purview of the State sector as a step to bring all the industries of basic and strategic importance into the Public Sector. In 1958. High Speed Diesel / Gas Oil 8.Training and Development. a Public Sector Company called Indian Refineries Limited was set up. viz. Superior Kerosene Oil / Kero 7. followed by a marketing organization called Indian Oil Company Limited In 1959. Motor Spirit / Gasoline 6. Fuel And Feedstock 2. the Multinational Oil Companies were nationalized and this led to the emergence of Bharat Petroleum Corporation Limited (BPCL) (from Shell) and 29 . The Companies main products are: 1. Liquefied Petroleum Gas / LPG 5. Esso and Caltex. By September 1964 both these companies were merged and Indian Oil Corporation was formed. The country was dependant on refined petroleum products imported into the country by these companies. Petrochemicals And Specialties 4. Lubricants HISTORY In the late 1950s Indian oil industry was dominated by three Multi national Companies.

Apart from this other public and private sector companies like Madras Refineries Limited. Indian Oil holds over 33% of the country's refining share (42%. (in 2002) these oil companies were allowed to sell these decontrolled products through the Retail Outlets or by bulk to direct customers. Apart from this Government also formed Indo-Burma Petroleum (IBP) Limited.Indian Oil Hindustan Petroleum Corporation Limited (HPCL) (from Esso and Caltex). IPCL. Later Assam Oil Company was merged with INDIAN OIL. after the withdrawal of Administered Pricing Mechanism (APM). But. While the three oil majors have their own refineries. Essar Oil Limited also entered the market at later stages. It’s Mathura refinery is the first refinery in Asia and the third in the world to earn the British Standard (BS: 7750) and ISO-14001 certifications in environmental management. All refinery units are accredited with ISO 9002 and ISO 14001 certifications.Training and Development. Bongaigaon Refineries and Petrochemicals Limited. Cochin Refineries Limited. IBP relied only on marketing. and a separate division known as Assam Oil Division (of INDIAN OIL) was formed. Initially they were not given any marketing rights for the controlled oil products but could refine crude oil and sell through the nationalized oil companies. The refinery network is presented with its installed refining capacity: 30 . if the capacity of recently acquired subsidiaries is also added). Reliance Petroleum.

0 4.5 0.0 2.5 1.Chennai CpclNarimanam BrplBongaigaon Sub-Total IOC Subisdiaries IOC-Total(WithSubsidiaries) 1.65 6.2000 1.Indian Oil Refinery As On As On As On As On As On 1.50 2.05 6.65 6.0 6.50 1. 2005 1.4.7 4.Training and Development.0 13.35 9.35 12.2 13.5 1.Koyali IOC .4.65 6.35 9.0 4.7 6.4.65 6.5 1.Mathura IOC.2004 1.50 2.6 8.5 0.0 0.50 2.0 36.50 1.15 6.95 6.4.35 45.2002 1.80 IOC Subsidiaries Indian Oil holds over 33% of the country's refining share (42%.6 8.15 6.Panipat Sub-Total IOC Cpcl.85 54. if the capacity of recently acquired subsidiaries is also added).20 As On 1.0 41.0 0.35 47.Digboi IOC.0 39.0 4.0 0.2003 IOC IOC.35 12.65 6.0 38.4.0 13.35 9.0 2.0 41.5 0.20 1.35 9.2001 1.0 8.35 47.0 13.2 13.0 0.6 8.0 3.Guwahati IOC.40 1.4.00 0.Barauni IOC .85 49.0 38.65 6.7 4.7 4.5 0.0 6.0 8.6 7.85 54.0 6.Haldia IOC.7 6.35 9.0 2.3 13.35 9. All refinery units are accredited 31 .

These include two refineries of subsidiary Chennai Petroleum Corporation Limited and Bongaigaon Refinery & Petrochemicals limited to increase its refining capacity . These employees are engaged in Crude Oil Refining. There are 2. These are located at Guwahati and Digboi (Assam).Indian Oil with ISO 9002 and ISO 14001 certifications. constituting 7.80 million metric tonnes per annum (MMTPA) or one million barrels per day (bpd).Training and Development.61 Million Tonnes in 2005-06. With sales of 49. 2006 was 30. Koyali (Baroda. it holds around 60 % of the market in India) The Corporation’s employee strength as on March 31. and Marketing of Petroleum Products.406 women employees including 775 officers. Mathura (Uttar Pradesh) and Panipat (Haryana). It is the sole canalizing agency for the import and export of Crude Oil and Finished Petroleum products.Gujarat).437 officers. (With the acquisition of IBP.801. including 10. Haldia (West Bengal). The Indian Oil group of companies owns and operates 10 out of 18 Oil refineries in the country with a current combined rated capacity of 57. It’s Mathura refinery is the first refinery in Asia and the third in the world to earn the British Standard (BS: 7750) and ISO-14001 certifications in environmental management. Barauni (Bihar). Indian Oil holds over 51. Continuous innovation and up gradation of technology have resulted in high efficiency and optimum capacity utilization. Indian Oil has five divisions: 1) 2) 3) 4) Refineries Division Pipelines Division Marketing Division Research and Development Division and 32 . Pipeline Transportation. The refinery network is presented below with its installed refining capacity.2 % of Market share.8% of the total manpower.

Petronas (Malaysia). Oil and Natural Gas Corporation Limited (ONGC). In maximum cases it crosses the installed capacity utilization. The marketing division has its Head Office at Mumbai. INDIAN OIL also markets the products refined by the following refineries : 33 It keeps abreast of the latest technology when laying new systems and inducts the same into existing systems .Training and Development. Marubeni (Japan). It transports Crude Oil and Finished Products through over 7. INDIAN OIL constantly strives to develop its nationwide pipeline network. Twelve Joint ventures are now operational in partnership with leading companies like Mobil and Lubrizol Corporation (USA). SERVO shops etc.Indian Oil 5) Assam Oil division. SKO/LDO dealers.575 kms of Crosscountry pipelines (country’s largest network). As the name suggests Refineries division is into refining of imported and local crude which is available in India. Gas Authority of India Limited (GAIL) etc of India. Research and development division is into developing new lubes and lube formulations required for the current market. In addition to products refined at its own plants. These include Retail Outlets of MS/HSD. Oil tanking GmbH (Germany). Assam Oil division is into refining and also marketing of oil products in the northeast part of India. It controls a network of over 22. Reliance Petroleum Limited (RPL). Essar Oil Limited (EOL). Bharat Petroleum Corporation Limited (BPCL). LPG distributors. From its inception it has formulated more than 2000 lube formulations.000 sales points spread over India (the largest in the country). IBP. too.

THE FAMOUS BRANDS UNDER INDIAN OIL Indian Oil's branded fuels XtraMile and XtraPremium have made a significant impact in the petroleum retail market. 24.XtraPremium and XtraMile (originally IOC Premium and Diesel Super respectively). Indian Oil's new generation High Speed Diesel with world-class additives has taken a leadership position in the market. Subsequently. XtraPremiuem sales have been extended to 200 cities and 750 petrol & diesel stations. The launch of premium fuels . iii.Indian Oil i. the only petrol in India with 91 Octane and doped with Multifunctional Additives. marks a new beginning for Indian Oil and its customers. in fact. XtraMile. XtraPremium is. The maiden launch of these branded fuels took place in Delhi on Sept.Training and Development. 2002. iv. ii. and XtraMile to 850 cities and 1750 petrol and diesel stations by the end of 34 . Madras Refineries Limited Reliance Petroleum Limited Cochin Refineries Limited Bongaigaon Refineries & Petrochemicals Limited.

Anil Kumble. Bajaj. the ever dependable sporting icon is servo Brand Ambassador. industrial and marine sectors. the country's leading Servo brand lubricants from Indian Oil are sold through over 8.Indian Oil SERVO is India's largest selling lubricant brand. With over 42% market share and 450 grades. SERVO ranges of lubricants enjoy approvals from major Original Equipment Manufacturers (OEMs) including new generation cars.Training and Development.000 Retail Outlets and a countrywide network of SERVO SSls and SSAs Bazaar traders offer servo range of lubricants to customers. The Servo range of lubricants is used in almost every application covering automotive. Servo range of lubricants is fast emerging as a Global Brand. there is a Servo lubricant for virtually every single application. over 1.100 Indian Oil petrol/diesel stations. Developed exclusively at Indian Oil's world-class R&D Centre at Faridabad. Maruti. Servo has genuine oil tie ups with a wide range of companies like Hyundai. Servo has been designated as a superbrand.300 Servo Shops and a countrywide network of bazaar traders. 35 . Lancer. 9.

Marketed through a network 48 stations out of an industry total of 103 Auto LPG Dispensing Stations.Indian Oil Indian Oil Indane LPGas is used in 40 Million homes as cooking fuel and commands over 48% market share in India. 36 . medical labs.Training and Development. Indane LPGas is marketed through a network of 4350 Indane distributors. New and convenient 5 kg Indane LPGas cylinders introduced in rural and hilly regions for wider use by economically weaker sections. Indian Oil's auto LPG brand Autogas is the leader in the segment. 87 Indane Bottling Plants are spread across the country with a combined bottling capacity of 3. Widely used in commercial sectors like industries. hotels & restaurants.77 MMTPA. etc.

and Indian Oil intends to further expand its marketing in a big way 37 .Indian Oil Autogas (LPG) has been introduced in Hyderabad. This alternative fuel is a good business proposition in the long term. Bangalore and Mumbai markets.Training and Development.

Indane Cooking Gas is distributed to over 375 lakh customers in 2. transport. and defence forces. The Corporation has 87 LPG Bottling plants with a total capacity of 36.61 Million Metric Tonnes in 2005-06.350 distributors. A large network of 9.138 Retail Outlets including 82 Jubilee Retail Outlets serve the retail market. They are fed by 162 Bulk storage depots/terminals all over the country. with total sales crossing 49.177 towns through 4. INDIAN OIL has 35 Area Offices to deal with the marketing of LPG. There are 15 State Offices and 44 Divisional Offices including 2 of Assam Oil Division. 38 . 74. Delhi. catering to a vast spectrum of customers including households. It has FOUR Regional Offices located at Mumbai. The Marketing Division of the Corporation has its headquarters located in Mumbai.Indian Oil INDIAN OIL SERVES CUSTOMERS FROM KARGIL TO KANYAKUMARI: Indian Oil’s remarkable marketing and distribution network extends from Kargil to Kanyakumari.000 tonnes per annum. Chennai and Kolkata. industries. agriculture.Training and Development. A total of 3.521 Kerosene/ Light Diesel Oil (LDO) dealers reach the products to the customers throughout the country.

INDIAN OIL has carried oil requirements to remote hamlets. INDIAN OIL has launched genuine lubricating oils for almost all brands and makes of vehicles. INDIAN OIL has always been keen supporter of worthy causes such as family planning and welfare and rehabilitation of handicapped and under privileged. Be it peace time or war. medical. 39 . The company has a ISO-9001 certified.Indian Oil INDIAN OIL has 94 Aviation Fuel Stations catering to Civil and Defence Aircrafts with a market share of 68 %.100 Company retail outlets. The centre has developed over 2000 Lubricant/Grease formulations and introduced multigrade fuel-efficient lubricants for modern vehicles and is constantly trying new ways of improving fuel efficiency and quality.Training and Development. INDIAN OIL has also given top priority to its customers’ interests. So it continuously strives to bring energy to life. INDIAN OIL views energy as a means of achieving self-reliance and healthy economy. drought or floods.IMPROVING THE QUALITY OF LIFE: INDIAN OIL provides welfare schemes including housing. Indian Oil Blending Ltd. manufactures over 450 grades of the country’s leading SERVO brand of lubricants and greases with 42 % market share. and are sold through more than 9. sports and recreation facilities to its employees and their families. besides a countrywide network of bazaar traders. INDIAN OIL meets around 89 % requirements of Air Force whereas total needs of Army and Navy. provided fuel for transport and fulfilled energy needs of the Defence forces. A wholly owned subsidiary. INDIAN OIL. modern Research and Development Centre at Faridabad with facilities matching international standards.

Port terminal at Mauritius with a tankage of 15.Indian Oil PROJECTS: Indian Oil accords high priority to timely project implementation. Viramgam – Koyali crude oil pipeline (148 km). Koyali-Viramgam-Sidhpur product pipeline (102 km). LPG bottling plants at eight locations.5 TMT. The details of various major projects are as follows: Completed Projects: • • • • • • Diesel Hydrotreating and Solvent De-waxing units at Digboi Refinery.Training and Development. 40 . Kurukshetra-Roorkee-Najibabad product pipeline (167 km).

Panipat Refinery expansion from 6 MMT per annum to 12 MMT per annum.Indian Oil Ongoing Project: • • • Linear Alkyl Benzene unit at Koyali Refinery. Diesel Hydrotreating unit at Mathura Refinery MS quality improvement projects at Mathura. • • Paraxylene/Purified Terephthallic Acid unit at Panipat Refinery. Koyali and Haldia refineries.Training and Development. • • Grassroots refinery at Paradip Mundra-Kandla crude oil pipeline (73 km) and conversion of the Kandla – Panipat section of KBPL to crude oil service. 41 .

42 . Chennai – Trichy – Madurai product pipeline (683 km). Faridabad. Hydrocracker Laboratory – Phase-II – at R&D Centre. • • • • Dadri – Panipat gas pipeline. • • Naphtha transfer pipeline from Asaoti to NTPC.Training and Development. Branch pipelines to Raxaul and Baitalpur from Barauni – Kanpur product pipeline. Sidhpur – Sanganer product pipeline (506 km). New Project: • • Naphtha Cracker project and downstream polymer units at Panipat. 7 depots at various locations. Capacity augmentation of LPG bottling plants at Chengalpet and Tikrikalan. Construction of grassroots LPG bottling plants at Raipur and Virudhachalam.Indian Oil • • • • Paradip – Haldia crude oil pipeline (353 km). Dockline at Narimanam (8 km).Ratlam (274 km) and Koyali – Dahej (112 km) product pipeline. • Koyali .

50 MMT of crude oil and petroleum products. Indian Oil is the country’s largest commercial enterprise – also the first and only company to cross Rs.Training and Development. accounting for 51.204/.66 MMT. 42% national refining capacity and 67% downstream pipeline transportation network.059 million).1 lakh crore turnover – with a Gross Turnover of Rs.603 million) for 2003-04.4915 crore (approx US$ 1. 1.2% petroleum products market share. and a net profit of Rs.crore (approx US$ 41. Indian Oil sold 46.83.Indian Oil DIVISIONS OF INDIAN OIL Corporate: Indian Oil is India’s Flagship national oil company.22 million metric tonnes (MMT) of petroleum products. ranked 153 and is the 18th largest petroleum company in the world. It has been adjudged 43 . while its seven own refineries achieves a throughput of 37. Indian Oil is the sole Indian presence in Fortune’s prestigious listing of the world’s 500 largest corporations. and pipeline network transported 44. In 2005-06 .

Government of India. transnational. value and satisfaction for the stakeholders. MISSION STATEMENT: To achieve international standards of excellence in all aspects of energy and diversified business with focus on customer delight through value of products and services. 2 To attain leadership in developing. adopting and assimilating state-of-theart technology for competitive advantage. 4 To foster a culture of participation and innovation for employee growth and contribution. integrated energy company. 3 To provide technology and services through sustained Research and Development. playing a national role in oil security & public distribution.Indian Oil No. and is ranked 325th in the current Forbes’ “Global 500” listing of the largest public companies. 1 To maximize creation of wealth. and cost reduction. with national leadership and a strong environment conscience. with the VISION to be a major. Indian Oil operates under the aegis of the Ministry of Petroleum & Natural Gas (MOP&NG). diversified. 44 .1 in petroleum trading among the national oil companies in the Asia-Pacific region.Training and Development.

6 To help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience. To work towards the achievement of self-sufficiency in the field of oil refining by setting up adequate capacity and to build up expertise in laying of crude and petroleum product pipelines. Objectives And Obligations Of The Company Objectives Of The Company • To serve the national interests in the oil and related sectors in accordance and consistent with Government policies. 45 .Indian Oil 5 To cultivate high standards of business ethics and Total Quality Management for a strong corporate identity and brand equity. transportation and marketing activities and to provide appropriate assistance to the consumer to conserve and use petroleum products efficiently. • To ensure and maintain continuous and smooth supplies of petroleum products by way of crude refining.Training and Development. • • To earn a reasonable rate of interest on investment.

• • To optimize utilization of its refining capacity and maximize distillate yield from refining of crude to minimize foreign exchange outgo. acquisitions and diversification by harnessing new business opportunities like petrochemicals. both national and global. mergers.Indian Oil • To create a strong research and development base in the field of oil refining and stimulate the development of new product formulations with a view to minimize/eliminate their imports and to have next generation products. • To further enhance distribution network for providing assured service to customers throughout the country through expansion of reseller network as per Marketing Plan/Government approval. lube business. • To maximize utilization of the existing facilities in order to improve efficiency and increase productivity. • To avail of all viable opportunities. To achieve higher growth through integration. To minimize fuel consumption in refineries and stock losses in marketing operations to effect energy conservation. 46 . power. arising out of the liberalization policies being pursued by the Government of India.Training and Development. consultancy abroad and exploration & production.

• • To ensure maximum economy in expenditure.Indian Oil Financial Objectives • To ensure adequate return on the capital employed and maintain a reasonable annual Dividend on its equity capital.Training and Development. 47 . To manage and operate the facilities in an efficient manner so as to generate adequate internal resources to meet revenue cost and requirements for project investment. without budgetary support. • To develop long-term corporate plans to provide for adequate growth of the activities of the Corporations.

Performance Graphs 2005-06 48 .Training and Development. • To endeavour to complete all planned projects within the stipulated time and cost estimates.Indian Oil • To endeavour to reduce the cost of production of petroleum products by means of systematic cost control measures.

Training and Development.Indian Oil 49 .

Indian Oil Obligations: Towards Customers And Dealers : • To provide prompt. 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.Training and Development. Towards Suppliers: • To ensure prompt dealings with integrity. Towards Employees: • Develop their capability and advancement through appropriate training and career planning. Towards Community: • To develop techno-economically viable and environment-friendly products for the benefit of the people. • • Expeditious redressal of grievances: Fair dealings with recognized representatives of employees in pursuance of healthy trade union practice and sound personnel policies. 50 . impartiality and courtesy and promote ancillary industries.

2 3 Bigger site for Retail Outlets on highways. 5 Quickly create infrastructural facilities at supply locations / Divisional Offices to improve customer service through:  Faster loading of Railway Tank Wagons / Tank Trucks. Towards Defense Services: To maintain adequate supplies to Defence Services during normal and emergency situations as per their requirement at different locations.  Project Management for faster completion of on-going project. 51 . to sites outside town area to facilitate better/improved Gasoline facilities in metros/major towns. Promote / inculcate dealers as Indian Oil family member and ensure that they are “working dealers” and not “absentee dealers”. specially for Diesel Oil. Areas Of Focus : 1 Strategic resitement of Retail Outlet.  Import Parity Pricing. 4 Profit maximization through  Sale of “Free Trade Product”.Indian Oil • To ensure safety in operations and highest standards of environment protection in its manufacturing plants and townships by taking suitable and effective measures.Training and Development.  Faster commissioning of Retail Outlets.

Kuala Lumpur and Mauritius to co-ordinate business activities.  Maintenance. Up-country storages nearer to the market. Spreading Wings : Indian Oil has overseas offices in Sri Lanka. Strengths • • • • Wide field network. Eight existing Refineries. Dubai. 6 Areas of improvement as per “Customer Satisfaction Measurement and Management” study :  Finance.  Supply Point.  Computerized and modernized accounting system.Training and Development. Dealership network to assist in our direct efforts.  Improved communication facilities. Lower cost of production from old Refineries. It has also set up subsidiaries in 52 . • • Strength on international trade.Indian Oil  Quick and accurate billing.

* 21 % approx. SERVO lubricants are being exported to Dubai. Bhutan. Nepal.* 4.* Indian Oil has the maximum market share with 55% followed by Bharat Petroleum Corporation with 21% and Hindustan Petroleum Corporation with 19. Mauritius.* 19.5 % approx. Bahrain. Marketing The marketing of petroleum products in India today is dominated by the four state-owned oil companies. Sri Lanka. Malaysia. Indonesia.Indian Oil Mauritius and Sri Lanka for implementing business expansion project. Kuwait. Their market shares as on 31st March 2001 were as follows: Indian Oil Corporation Bharat Petroleum Corporation Hindustan Petroleum Corporation IBP Company 55 % approx.5 % approx.5% 53 .Training and Development. Bangladesh etc.

it is ranked 153 rd largest Industrial Corporation in the world. As per the ranking by the Fortune500 magazine. The Corporation has not only established its leadership in this field. Indian Oils aims at excellent excellence. It also offers an opportunity for participation in training programme to managers of organization from developing countries with which it has co-operation agreements. Indian Oil Blending Limited (IOBL). but has also gained unquestionable credibility at the international level. Assam Oil Division. That is the reason why INDIAN OIL has given the highest importance to training right from its inception. The training department of Head Office and the Regional Office look after the formal training requirements of about 17000 employees in the Marketing Division of the corporation. R & D Center. which has enabled it to maintain and perpetuate its profitable and efficient existence. 54 . it also receives nominations from Refinery and Pipelines Divisions.Training and Development.Indian Oil TRAINING AT INDIAN OIL INDIAN OIL is the largest industrial corporation in India in terms of sales turnover. which requires top-notch managerial training and development of their human resource. The credit for this achievement goes to its most potent and vital force that is the dedicated efforts of the Indian Oil employees. PCRA. PII and defence personnel. In addition. Oil Co-ordination Committee (OCC). The Head Office training center looks after the management training activity of over 2000 managers in Marketing Division.

the Administrative Staff College (ASC) was set up in Bombay to conduct functional programmes in areas such as Personnel Management and Productivity for INDIAN OIL personnel in addition to the POL programmes for the Defence Personnel. In the initial years the United Nations experts helped in organizing supervisory development programmes. Even as early as 1963-64 technical programmes on fuel engineering were conducted for the sales force with the help of MOBIL. In 1965.Indian Oil Evolution Of Training In INDIAN OIL: Prior to 1964. Haldia. Emphasis in the organization on training programmes was largely in the areas of handling of Petroleum products.Training and Development. The early focus was on supervisory development. Full-fledged training centers were set up in all the refineries – Guwahati. Liquid Petroleum Gas (LPG) and a few bahavioural programmes. A few years later. and each set up headed by a Branch Training Officer. Gujarat. The first few programmes were adapted from those being conducted by the Burma Shell with guest faculty and later on with the help of internal faculty. Digboi – Assam Oil Division (AOD) and Mathura with major emphasis on technical and skilldevelopment programmes in the initial years of their existence 55 . the individual companies had their own training schemes patterned on the erstwhile oil companies approach. in 1967-68 as more programmes were added. Training activities in the R&D Division started in early 1960s in the Guwahati Refinery. Barauni. USA. training was taken up at the regional levels with four regional training centers. The training in Marketing Division started with programmes organized by them for the Defense Personnel for handling of petroleum products called the Petrol Oil and Lubricants (POL) courses. the training activities were also carried out almost independently divisionwise. Since the organization was designed along divisional lines.

The refinery at Digboi being peculiar to itself in terms of the technology and operations. reorganized into three subsystems – Personnel and Administration. Based on the suggestions made by the consultant. The Indian Oil Management Academy (IMA) started functioning in August 1979 to meet the emerging training needs at selected managerial levels. the INDIAN OIL reviewed its corporate plans because of which the need was felt to give a different orientation to the training activity keeping in view the organisation’s development. the performance appraisal forms were amended in INDIAN OIL to introduce a component of training to help in the identification of training needs. The Personnel function was regrouped and. there were certain organizational changes in the Personnel function. programmes were organized since 1975-76. Accordingly. Training and HRD. General Management Programmes and behavioural programmes were organized in the Refinery training centers. emphasis was given to Human Resources Development and it became a subsystem of the Personnel function. The AOD by itself has a long history of emphasis on training even prior to its nationalization and integration with INDIAN OIL. Various technical and skill development programmes were conducted by AOD for officers and staff at all levels. The HRD group was specifically assigned the task of integrating the identified 56 . Athreya was invited as an OD interventionist. The IMA was to conduct specific functional and developmental programmes for officers of the R&P Division.Training and Development. Consequently. It was also decided to have an organization development (OD) intervention by an outside consultant with a view to develop a proper linkage between the corporate plans and human resources development. Professor M. with the help of the Marketing Division. In the mid-1970s. specific training programmes in operations and maintenance were organized. In early 1980s.Indian Oil In the 1970s. The AOD had a strong and systematic approach to training with major emphasis on planned on-the-job training. For increased understanding and coordination between the two divisions a series of interface.

At the same time. The APA form was redesigned and training need identification was given more importance. The interdisciplinary programmes were introduced to expose the officers to function other than their parent discipline. Personnel. in keeping with the corporate objective closer / greater interface was envisaged between the divisions. the personnel department was redesigned as Human Resource Management to reflect the greater emphasis on HRD though the basic set up continued as earlier. Operations. training committees at the corporate office level. In 1987. In 1990. Thus. LPG. which necessitated greater emphasis on technical training. In Indian Oil Corporation today. The TMTC offered suggestions to improve the training infrastructural facilities and better utilization of manpower for training within the organization. the Tata Management Training Centre (TMTC) was invited to study the training activities in INDIAN OIL. Finance. eight disciplines were identified in the Marketing Division namely. the training also got a fillip with introduction of general management and leadership 57 . which included appropriate career planning and role analysis. Because of the HRD outlook in the organization. Head Office (Division) level. -The concept of the staple programmes – all officers to be exposed to them was simultaneously introduced. and Regional/unit level play an active role in formulating training plans. Aviation. Marketing. etc. courses and interface programmes. Coinciding with this.Training and Development. and appropriate career path models drawn. Sales. Consequently. review of ongoing course.Indian Oil corporate mission with the department and individual goals. there was considerable technical upgradation. Technical Services. further changes were introduced in the Annual Performance Appraisal (APA) System.

The workers training is organized at the selected locations while officers’ train and some workmen training are organized at regional headquarters. the training activity is organized with set ups at selected locations. 58 . In the Refineries and Pipelines Divisions. officer training for junior and mid level officers and management training programmes for direct recruits while the Indian Management Academy (IMA) organizes programmes for middle and senior level officers in addition to the Junior Executive Development programmes for Promoter officers. Over the past few years there has been a substantial increase in the number of employees exposed to training in the various divisions of INDIAN OIL. In addition to the efforts of the training department in INDIAN OIL. The Pipeline training activities are also organized on a three-tier basis with unit/location. middle and junior level officer training programmes and external and middle and senior level officers training respectively. apart from the training programmes for direct recruits and promotee officers and the middle and senior level officers at the HO. each refinery has a comprehensive training set up taking care of both workmen training. at each regional headquarter level and at the head office. regional office and head office handling workmen training. other departments like Fire & Safety Department and Inspection etc conduct certain training programmes.Training and Development. The internal training programmes at the head office level for mid/senior level officers are taken up by the IMA.Indian Oil In the Marketing Division. Over the years. the INDIAN OIL has invested substantial amount of financial resources into training.

Indian Oil Training Mission: 1 To facilitate the process of integration of personal ambitions and aspirations of employees with the corporate objectives through training interventions. 2 To continuously scan the environment. distribution. Equip work force with skills to make Indian Oil Corporation a global player. review training programmes and design need-based inputs to ensure achievement of high level of excellence in customer satisfaction. expounding the belief that there are no limits to human potential and growth. 59 . 3 Assist / guide the employees in their pursuit of knowledge and selfactualization. 4 Facilitate the induction of new employees into Indian Oil Corporation through suitable orientation programmes. 5 Enable through training. and consumption of petroleum products. Defense Services to efficiently handle storage.Training and Development. which shall also play a vital role in building customer relations over a long term.

General Managers / Dy. training programmes focused towards specific area of interest are approved by the committee for implementation. Based on the need identified. .Director (M) .Training and Development.Indian Oil TRAINING PROCESS Training Committees ROLE OF TRAINING COMMITTEES: The main role of the Training Committees is to oversee the training functions and the training needs of the organization keeping in view the environmental changes. Committee. In addition one Regional ED is invited to the HO training Convenor .ED of the Regional. HO TRAINING COMMITTEE Chairman Members . The training committee also reviews the training activities on a half-yearly basis. General Managers (HOD) of the Region.DGM (T&D) REGIONAL TRAINING COMMITTEE Chairman Members Convenor . .Training In-charge of the Region (Senior / Manager (T&D)) 60 . and General Managers I/C.Executive Director.

• Functional Programme Developmental Programme Training department makes use of in-house personnel for functional programmes and employs people from outside for development programmes • The current system provides consultation with concerned officers by his superior to ascertain the training needs. • Similarly. 61 . • Each employee’s training needs are identified through system of Annual Performance Appraisal (APA). withdrawal of nomination is normally not permitted. • Basically two types of training programmes are conducted by the training department : a. b. • Nomination for Regional course is as per the eligibility criterion laid down for each programme. which is sent to all the departments.Training and Development.Indian Oil In Indian Oil Corporation: • Training Department has a training calendar. the superior in consultation with the Unit level cocoordinators identifies training needs of the workmen and Regional Training Heads and new need based programmes are mounted. • Once the nominations are identified and course announcement made.

Indian Oil • Participants at the end of each programme do the overall course evaluation and the courses are modified depending upon the feedback received. Role Of Training : 1 Training has been performing a very important role in helping the Corporation to reach the commanding heights of performance over the years. 2 Training has played a pivotal role in helping the organization adapt itself to change. which is the most important thing called for in the current changing environment. 62 . 3 To assist the employees in their pursuit of knowledge and selfactualization.Training and Development. • Participants attending external training are required to make a formal presentation regarding the training received along with action plan for implementation. This ensures transfer of knowledge for on job performance.

2 To provide operational guidelines for management. to help recruit high caliber recruits. to stress the performance standards expected. 63 . and/or payment of fees for External courses). for example to state management’s responsibilities for planning and implementing training and in particular.Indian Oil Training Linkage to Corporate / Divisional Objectives The training policies have been developed for 4 main reasons: 1 To define the relationship between the organization objectives and its commitment to the training function. to indicate the organization’s commitment to training and development and to inform employees of the opportunities of training development (including willingness to grant time off. 4 To enhance public relations for example. 3 To provide information for employees. to ensure that training resources are allocated to priority and statutory requirements. to reassure clients and public at large about the quality of products or services or to project an image as a caring and progressive employer by taking part in government sponsored “Social” training programmes. For example.Training and Development.

For self – development. 64 . training becomes a core function for the following reasons: 1 Training is necessary for new employees to get an idea about the job and to do it effectively. 4 It is necessary for old employees to enable them to keep abreast of changing methods.Indian Oil Need For Training : Indian Oil Corporation is involved in refining and marketing of POL. techniques. 6 7 8 9 Training is required to revise the specialized skills learnt in the past. 3 It is necessary for the company to fulfill its future personnel needs and to train the employee in the company culture pattern. 2 Junior employees need training before they take the position of their seniors. It reduces wastage and accidents. Job Rotation practice in Indian Oil demands training. 5 It is needed to improve the quality and quantity of output by an employee and raising their morale.Training and Development. and technology. Here.

 For professional growth in organization.  To be acquainted with new technology. skills. in the training 65 .  For personal growth  To gain new and pertinent knowledge  Acquire specific approaches. and labour turnover.Indian Oil Importance Of Training The main importance is to mould the employee’s attitude and help them to achieve better co-operation with company.  As a means to improve promotional aspects.  Help and confirm some earlier ideas. or techniques that can be applied on the job.Training and Development. It also helps in reducing dissatisfaction. A successful training programme can be made by creating a good environment for it. complaints. Participants’ Expectations From A Training Programme :  Improving and solving specific problems confronted in job functions.  To develop understanding of specific subjects covered programme  As a change for routine job schedule. absenteeism.

Establishing training goals 4. ideas and solutions from other departments  Look at oneself and one’s job objectively. Devising the training programme 5.Indian Oil  Acquaint with problems.Training and Development. Evaluation of the results 66 . Assessment of the training needs 3. Implementation of the programme 6. Defining organizational objectives and strategies 2. Training Process Of Indian Oil Involves Several Steps : 1.

Preparation of the Trainee 7. 8. Training Techniques 5.Indian Oil TRAINING PROCEDURE IN INDIAN OIL 1. Evaluation Effectiveness of training in Indian Oil. Under this system. Identification of training needs. Training Faculty 6. assessing training needs is treated as 67 . Follow – up.Training and Development. 1) Identification Of Training Needs: Identification of training needs is the stepping-stone in the appropriate management training system on which the entire edifice of training programme is built. Training Facilities 4. Training Nominations 3. 2. Like the prevalent management development and training programmes. It attempts to take a specialized individualized view of training needs of different categories of managers performing more or less similar job in similar organizations. appropriate management training system does not take a generalized view of training needs.

But due to one or other reasons the existing competence of the jobholder may fall short of the standard competence required in the job. 2. attitude of the job holder. skill and attitude required in a job. skill. These two processes are of critical importance and should be carried out as accurately as possible because the outcome of the comparison between the two provides the information from which an appropriate training programme is developed. This logic highlights two processes : 1. its 68 . skill and attitude. Effective performance of a job requires a standard of competence in the job holder consisting of vital areas such as job related knowledge. Identification and definition of standards of knowledge. The processing of assessing and finding the gap between the standard competence required in a job and the existing competences in turns of vital knowledge and skill and attitude in the job holder may be called as the identification of the areas of deficiencies and the resultant inventory of gaps in the job holder in terms of knowledge and skill and attitude may be said as his training needs. An organization normally employs sufficient number of managerial and nonmanagerial personnel with required competence to perform given jobs leading to the accomplishment of organizational objectives. A training programme should be established only when it is felt that it would assist in the solution of specified operational problems.Indian Oil an important and crucial training function before designing and conducting a programme. The most important step in the first place is to make a thorough analysis of the entire organization.Training and Development. Assessing existing level of knowledge.

The nominations to external training programmes are encouraged only for such progrmmes where inhouse training programmes are not available. Employees do write in their Annual Performance Appraisal (APA) forms about the training they would like to undergo. In Indian Oil. Prior to identifying needs of each officer. Based on this new training also gets identified year after year. Each officers training are identified in the “Training needs Exercise” which is covered every two years. Traditional programmes are redesigned so as to be 69 . and there is a self/organizational need. their current system provides consultation with concerned officers by his superior to ascertain the training needs. The training need for officers are identified in the “Training need” form that constitutes the basis on which the nominations are accepted by the training centers for the various in-house training progrmmes.Training and Development. training needs are identified by the Training committees at HO/Regional level keeping in view the changing environment and the objectives and the mission of the organization. effective utilized. The training needs of workmen in employees category are identified by the superiors in consultation with the unit level coordinators and the Regional Training Heads and new based in-house programmes are mounted.Indian Oil operations and manpower resources available in order to find out the ‘trouble spots’ where training may be needed.

They have also acquired latest electronic gadget like liquid Crystal Display. 70 . Management training courses / supervisory development courses are conducted in some of the reputed nominated hotels. direct projector. The nominations for workmen category are finalized at the regional training centers keeping in view the specific needs of each employee segment. withdrawal of nomination is normally not permitted. The training center at HO has well equipped reference library. this is permitted subject to prior approval of the competent authority. The main thrust of training activities at regional level is improving functional competency.Training and Development. The training halls have been carefully designed keeping acoustic requirement in view. The training halls are equipped with the latest and most sophisticated audio-visual equipments to ensure training effectiveness. Nominations for regional courses are as per the eligibility criteria laid down for each programme. However. It has an excellent collection of books and CDs on various aspects of Management. 3) Training Facilities The non residential training programmes are conducted in the training halls located in the HO/Regional head quarters. Withdrawal of nomination – once the training department identifies the nominations and course announcement is made. for improving training efficiency.Indian Oil 2) Training Nominations As far as possible opportunity is given to the officers to attend HO training programmes of their choice once every two years. Electronic Board (Panaboard). Videorama. in extreme unavoidable circumstances.

In the training courses. This aids in the process of learning for workmen training. 71 . Each faculty member is required to have thorough knowledge of his subject. Adequate emphasis is given to hands-on-training. computer aided Management Games. The participants of various training programmes are also required to prepare reports and make formal presentations. training methodology mix is carefully designed. In-house faculty imparts a lot of credibility to the training efforts.Indian Oil Information Technology. Syndicate project studies are also given in most of the courses to study the live organizational problems and give recommendations. Petroleum Industry and Energy Management besides general disciplines. 5) Training Faculty The trainer has to be prepared for the job for he is the key figure in the entire programme. case study method etc. the management provides ample opportunity to the employees to take active part in the learning process.Training and Development. In the management training courses emphasis is placed on the use of state-of-the art training technologies like simulation exercises. live video recording. The training faculty members are selected based on their positive attitude towards training assignment and their ability to communicate effectively with others. 4) Training Techniques Depending on the course objectives. The training faculty is responsible for ensuring that the formal training activities are in line with the organisational requirements. which are then duly considered by the management for implementation. structured experiential instruments. The strength of the Training in INDIAN OIL lies in the faculty being generated from within.

Training and Development- Indian Oil The functional managers from various departments are invited as part-time faculty members to share their knowledge pertaining to their disciplines. It also helps the functional managers to remain up-to-date in their specialized functions. On a very selective basis, they invite guest speakers in the training programmes in such areas where they do not have sufficient expertise within the organization. This is done with the selection of names from CEOs of top corporate houses and professional institutes like IIM’s and IIT’s. The training center is also well equipped with professionally qualified trainer who are competent to conduct the management development programmes, both at HO/Regional level.

6) Preparation Of The Trainee (Participants): This step consists of 1 Putting the learner (trainee) at ease. 2 Stating the importance and the ingredients of the job and its relationship to work flow. 3 Explaining why he is being taught. 4 Creating interest and encouraging questions, finding out what the learner already knows about his job. 5 Explaining “why” of the whole job and relating it to some other job the worker already knows. 6 Placing the learner as close to his normal working position as possible.

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Training and Development- Indian Oil 7 Familiarizing him with equipment, materials, tools, and trade terms.

7) Evaluation Effectiveness Of Training In Indian Oil

Different approaches could be adopted to evaluate the effects, impact, and effectiveness of training. The methods may vary from an evaluation of the perceptions on training of the trainees, supervisors, subordinates and trainers to studying the entire training function itself. The study could encompass the cost benefit analysis of the training or the impact it has had on productivity and efficiency of the organization. To understand the knowledge gained from the training and thereafter, the transferability of this learning on the job situation and its effect on rise or fall of productivity necessitates the availability of certain information. It is essential to understand the level of knowledge of participants before the initiation of training process to calculate the possible gains from training. On the other hand, a study, which comes in after the event of training, is necessarily constrained to study the perceptions of the trainees, trainers and the organization with regard to effectiveness of the training effort. The perception study is principally an after the event evaluation. The approach here is to elicit the perception of participants after attending training programmes, on various aspects of the programme, the learning he/she has derived from the programme and any change in attitude, knowledge or skill level and its transferability to onthe-job situation. The perceptions expressed by the participants are further checked out with their superiors, subordinates, and peers. For management training courses, session-wise evaluation is done for each session. The overall course evaluation is done by the participants at the end of 73

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

8) Follow-up
This step is undertaken with a view to trusting the effectiveness of training efforts. This consist of Putting trainee ‘on his own’.  Checking frequently to be sure that he/she has followed instructions.  Tapering off extra supervision and close follow-up until he is qualified to work with normal supervision. Basically two types of training programmes are conducted by the training department : a. b. Functional Programme Developmental Programme 74

Training and Development- Indian Oil

Nature / Methods Of Training :
After the employee has been recruited, selected, and inducted, he must next be developed to better job and the organization. No one is perfect fit at the time of hiring and some training and education is essential. No organization has a choice of whether to develop employees or not, the only choice it has is that of method of development. If no organized programmes exist then development will largely be self-development, while learning on the job. Development would include both training to increase skill in performing a specific job and education to increase general knowledge and understanding of the total environment. Planned development programmes will return values to the organization in terms of increased productivity, heightened morale, reduced costs and greater organizational stability and flexibility to adapt to changing external requirements. Such programmes will also help meet the needs of individuals in their search for work assignments that can add up to life-long careers. There are mainly two reasons for functioning training: 1. Training programmes for non managers to develop skills to perform a job. 2. Training and educational programmes designed to develop organizational units as entities.

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the trainer. Apprenticeship is generally used to impart skills requiring long periods of practice as found in trade. The jobs vary in content. In job rotation. These methods consist of 76 . The fact that the success of the system depends almost entirely upon the immediate supervisor. The actual location may be in the company classrooms or in places. every employee. Since most jobs in an industry can be learnt is a relatively shorter period of time this method is widely used. which have no connection with the company. means that the personnel unit has a major responsibility for making a good effective teacher out of every supervisor. job rotation and special assignment under coaching or under study method (which is also known as internship and apprenticeship method). ON-THE-JOB TRAINING : Virtually. and other technical fields. a management trainee is made to move from job at certain intervals.Indian Oil CLASSIFICATION OF TRAINING METHODS: 1. Internship is usually applied to managerial personnel and provides a wide variety of job experience.Training and Development. 2. the employee is trained on the job by his immediate supervisor. Special assignments or committees are other methods used to provide lower level executives with first hand experience in working on actual problems. which are owned by the company or in universities or associations. crafts. It has the advantage of strongly motivating the trainee to learn since it is not located in the artificial situation of a classroom. There are a variety of on the job methods such as coaching or under study. from the assistant to company’s chairman gets some on-the-job training when he joins a firm. OFF-THE-JOB METHODS OR CLASS ROOM : Off-the-job training simply means that training is not a part of every day activity.

attitudes. Conference Method In this method. on organized subject matter and on the active participation of the members involved. vi. v. the formal superior or other individual specific topics. Seminar / Team Discussion This is an established method for training. The lecture method can be used for very large groups. iii. It can be organized rigorously so that ideas and principles relate properly. vii. It may be based on paper prepared by one or more trainees or on a 77 . concepts or principles. It lays emphasis on small group discussions. which are to be trained within a short time thus reducing the cost per trainee. iv. Lectures Lectures are regarded as one of the simplest ways of imparting knowledge to the trainees especially when facts. theories and problems solving abilities are to be taught. iii. the participating individuals confer to discuss points of common interests to each other. conducted in accordance with an organized plan in which the leader seems to develop knowledge and understanding by obtaining a considerable amount of oral participation of the trainees.Training and Development.Indian Oil i. It is a formal meeting. ii. A conference is basic to most participative group centered methods of development. ii. Lectures Conferences Group Discussions Case studies Role playing Programmed instructions T-group training i. a seminar is conducted in many ways. Lectures are formal organized talks by the training specialist.

written or oral miniature description.  Develop alternative courses of action.Training and Development. Case study is based on the belief that managerial competence can best be attained through the study. In Case study method. The person in charge of the seminar distributes in advance the material to be analysed in the form of required readings. 78 . It may be part of the study or related to the critical studies or practical problems. contemplation. defines the general trends and guides the participants to certain conclusions. become acquainted with the content of the case. the trainee is expected to  Master the facts. encourages discussions. and discussion of concrete cases. The seminar compares the reactions of trainees.  Identify the problems in the case and uncover their probable causes. Iv. A case is a set of data. they are asked to identify the problems and to recommend tentative solutions for it. real or fictional. It may be based on the statement made by the person in charge of the seminar or on a document prepared by an expert who is invited to participate in the discussion.Indian Oil subject selected in consultation with a person in charge of the seminar.  Screen the alternatives using the objectives as criteria. Case Studies This method was first developed by Christopher Lanzdell in the 1880s at the Harward Law School to help students to learn for themselves by independent thinking. and summary of such data that present issue and problems calling for solutions or actions on the part of the trainee.  Define the objectives sought in dealing with the issues in the case. When the trainees are given case to analyse.

audio-visual aids and planned reading programmes. v. These parts do not involve any memorization of lines or any rehearsals. Members of a professional association receive training by it in new techniques and ideas pertaining to their own vocations through a regular supply of professional journals and informal social contacts or gatherings.Training and Development. The role players are simply informed of the situation and of the respective roles. T-Group Training This usually comprises association. It incorporates a prearranged. hiring. tapes and films are generally used in conjunction with other conventional teaching methods. proposed or desired course of proceedings pertaining to the learning or the acquisition of some specific skills or general knowledge. they have to play. a programmed instruction involves breaking information down into meaningful units and arranging these in a proper way to form a logical and sequential learning programme or package. Two or more trainees are assigned parts to play before the rest of the class. Sometimes after the preliminarily involves employee-employer relations. Programmed Instruction (Teaching By The Machine Method) Programmed Instruction involves a sequence of steps. Audio-visual aids-records. Vi.Indian Oil  Select the alternative that is most in keeping with the stated objectives. discussing a grievance procedure. members are kept informed of the latest development in their particular fields. vii. firing. conducting a post appraisal interview or disciplining a subordinate or a salesman making a representation to a customer. Role – Playing In role-playing trainees act out a given role as they would in a stage play. which are often set up through the central panel of an electronic computer as guides in the performance of desired operation or series of operations. Planned and supervised reading programmes 79 .

3. which is often imparted with the help of the equipment. VESTIBULE TRAINING : This method attempts to duplicate on the job situations in a company classroom. which are identical with those in use in the work place. It is a very essential method of training semi-skilled personnel. technical publications and the latest journals are kept in the library for the use of the trainees. particularly when many employees have to be trained for the same kind of work at the same time. It is a classroom training. 80 .Indian Oil are conducted.Training and Development. and machines. This technique enables the trainee to concentrate on learning the new skill rather than on performing an actual job.

Training and Development. it has percolated right form the top to the bottom levels. The training programmes have helped their employees to improve their skill and efficiency because of which they are able to undertake new challenges in their work. The training and development programmes held in Indian Oil helped their employees to know theirs strength and weaknesses and helped them to work on their weaknesses. and this had played a role in more systematic organization development.Indian Oil Conclusion: Training has played a very important role in helping Indian Oil to reach the commanding heights of performance. Any training would be considered successful only when the knowledge gained by the participants is transferred to the job performance. Indian Oil is been very successful in doing that. Indian Oil has a very strong base of human resource development and training. In addition. 81 .

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