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TRAINING AND DEVELOPMENT
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.
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.
Training and Development- Indian Oil
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)
Training and Development- Indian Oil
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.
To Impart Basic Knowledge And Skill To New Entrants And Enable Them To Perform The Job Well. skills. To Teach The Employees The New Technique And Ways Of Performing The Job Or Operations. o Bridge the gap between job needs and employee skills. Objectives Of Training The overall training objective is to develop required knowledge. Therefore. vocational in nature o Short-term activity designed especially for operatives. 3. and attitudes of our employees so that they can perform more productively and achieve the business goals. 1.Indian Oil Features Of Training o Increase knowledge and skill for doing a job. the primarily contribution is from on-the-job training and supporting contribution from the formal training effort. It is recognized that the employees learn primarily from on-the-job experience. 2. To Equip Employee To Meet The Changing Requirement Of The Job And Organization. in achieving this objective.Training and Development. o Job oriented process. 5 .
and long-term investment in this function. Employees become efficient after undergoing training.Training and Development.Indian Oil 4. Growth indicates prosperity. However. Accidents. which is reflected in increased profits from year to year. All rounder can be transferred to any job. and government are beginning to appreciate the value of adequate. flexibility. the fact that training can make an important. There is greater stability. They seldom leave the company. Training has always played an important and integral part in furthering many kinds of human learning and development. consistent. Training contributes to employee stability in two ways. • The individual(s) involved have the aptitude and motivation needed to learn to do the job better. Further. Training and Development programmes help remove performance deficiencies in employees. if not crucial. and capacity for growth in an organization. • Supervisors and peers are supportive of the desired behaviours. Training makes the employee versatile in operations. organizations. This is particularly true when – • The deficiency is caused by a lack of ability rather than a lack of motivation to perform. 6 . Efficient employees contribute to the growth of the organization. To Prepare Employees For Higher Level Task And Build Up A Second Line Of Competent Managers. Flexibility is therefore ensured. Growth renders stability to the workforce. Companies. scrap and damage to machinery and equipment can be avoided or minimized through training. contribution to organizational effectiveness is only now being recognized fully. complaints can be reduced if employees are trained well. Even dissatisfaction. trained employees tend to stay with the organization.
enhances its human resource capabilities and strengthens its competitive edge. which devotes itself to training and development. 7 .Indian Oil Training Is An Investment In Human Resource With A Promise Of Better Returns In Futures. generally adding to his abilities and value to the employer.Training and Development. the employee’s personal and career goals are furthered. the organization. At the same time. A company is training and development pays dividends to the employee and the organization. Though no single training programme yields all the benefits.
Any training would be considered successful only when the knowledge gained by the participants of various programmes is transferred to their job performance. which takes place on-the-job. All formal training activities conducted by the Training Centres at Head Office and at Regional Offices are in line with the organizational needs.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. expounding the belief that there are no limits to human potential and growth and such potential should be transformed into reality. 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. 8 . Training plays a vital role in this regard. Formal training efforts of the Training Centres are directed towards supplementing the primary training process.Training and Development. And the current changing environment calls for this the most.
increased performance and productivity. 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. 4. financial incentives may then be increased.Indian Oil Need For Training The need for the training of employees would be clear from the observations made by the authorities 1. Increased human performance often directly leads to increased operational productivity and increased company profit. 3. because of training. To Increase Productivity: Instruction can help employees increase their level of performance on their present assignment.” Again. less 9 . or in reference to the intangible organisational employment atmosphere. 2. internal promotions become stressed. 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.Training and Development. 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. When the need arises. To Improve Organisational Climate: An endless chain of positive reactions results from a well-planned training program. Production and product quality may improve. To Improve Quality: Better-informed workers are less likely to make operational mistakes. Quality increase may be in relationship to a company product or service.
or the inability of a person to adapt him to technological changes.Training and Development. Managerial mental state would also improve if supervisors know that they can better themselves through company-designed development programmes. 10 . 6. and base pay rate increase result. but one of the most important of these is the current state of an organisation’s educational endeavor. “Management development programmes seem to give participants a wider awareness. which may be due to age. and enlightened altruistic philosophy. and make enhanced personal growth possible. Increased morale may be due to many factors.Indian Oil supervisory pressure ensure. temperament or motivation. A safer work environment leads to more stable mental attitudes on the part of employees. 5. Personal Growth: Employees on a personal basis gain individually from their exposure to educational experiences. Obsolescence Prevention: Training and development programmes foster the initiative and creativity of employees and help to prevent manpower obsolescence. To Improve Health And Safety: Proper training can help prevent industrial accidents.” Again. 7. an enlarged skill.
It moulds the employees’ attitudes and helps them to achieve a better co-operation with the company and a greater loyalty to it. 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. It is an integral part of the whole management programme. therefore.Indian Oil IMPORTANCE OF TRAINING Training is the corner-stone of sound management. and the need for constant supervision is reduced. heightens the morale of the employees. trained employees make a better and economical use of materials and equipment. earning power and job security. Training. wastage and spoilage are lessened. grievances and absenteeism. it enables employees to develop and rise within the organization. It is actively and intimately connected with all the personnel or managerial activities. for it makes employees more effective and productive. moreover. apart from the other advantages. Further. 11 . which are woefully inefficient. and increase their “market value”. It enables management to resolve sources of friction arising from parochialism. with all its many activities functionally interrelated.Training and Development. for its helps in reducing dissatisfaction. reduces the rate of turnover. complaints. to bring home to the employees the fact that the management is not divisible. Training is a practical and vital necessity because.
Infact. Care must be used in adapting the technique/ method to the learner and the job. methods are multifaceted in scope and dimension. Develop a willingness to change. • • Provide motivation to the trainee to improve job performance. The best technique for one situation may not be best for different groups or tasks. feedback). It is difficult. and permit practice where appropriate. • Provide a knowledge of results about attempts to improve (i.Training and Development.e. An effective training technique generally fulfills this objective. and each is suitable for a particular situation.Indian Oil Training Methods/ Techniques The forms and types of employee training methods are inter-related. 12 . if not impossible. provide further trainee’s active participation in the learning process. to say which of the method or combination of methods is more useful than the other.
it is highly economical since no additional personnel or facilities are required for training. 13 . therefore.Training: Virtually every employee. He. and orienting him with his immediate problems. Thirdly. It is mostly given for unskilled and semi-skilled jobs.clerical and sales jobs. from the clerk to the president. In this way. and it is most useful for jobs that are either difficult to stimulate or can be learned quickly by watching and doing it.Indian Oil VARIOUS TRAINING TECHNIQUES On–The-Job.Training and Development. gets a feel of the actual production conditions and requirements. regulations procedures by observing their day-to-day applications. a transfer from a training centre or school to the actual production conditions following the training period is allowed. by supervisors. gets “On-The-Job Training”. He can. 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. the trainee learns the rules. It is primarily concerned with developing in an employee’s skills and habits consistent with the existing practices of an organization. by the special training instructors. They learn the job by personal observation and practice as well as occasionally handling it. when he joins a firm. Secondly. Employees are coached and instructed by skilled co-workers. therefore be easily sized up by the management. He is learning by doing.
while the practical work in conducted on the production line. 14 . The various advantages of vestibule training are: • • As training is given in a separate room. This technique enables the trainee to concentrate on learning the new skills rather than on performing on the actual job. distractions are minimized. case studies. inspectors. typists. It is most useful when philosophic concepts. conferences. it is geared to job duties. machine operators. Training is generally given in the form of lectures. can be more effectively utilized. It is a very efficient method of training semi-skilled personnel. role-playing and discussion. A trained instructor. 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. It permits the trainee to practice without the fear of the supervisors/ co-workers observation and their possible ridicule. etc. particularly when many employees have to be trained for the same kind of work at the same time. bank tellers. It is often used to train clerks.Indian Oil Vestibule Training This method attempts to duplicate on-the-job situations in a company classroom. In other words. testers. who knows how to teach.Training and Development. Theoretical training is given in the classroom. theories. and problem solving abilities have to be learned. attitudes. • • The correct method can be taught without interrupting production.
or in universities. Lectures: Lectures are regarded as one of the simplest ways of imparting knowledge to the trainees. The lecture methods can be used for very large groups. case studies. film shows. thus reducing the cost per training. concepts.Training and Development. Group Discussions 4. Case Studies 5. The actual location may be in the company classroom or in the places. It can be organized rigorously so that ideas and principles relate properly. attitudes. when facts. and demonstrations. This method consists of: 1. which have no connection with the company. role-playing. the formal superior or other individual specific topics. 15 . which are owned by the company. Lectures 2. or in associations. or principles. theories and problems-solving abilities are to be taught. Conferences 3. esp. Programmed Instructions 1. Lectures are formal organized talks by the training specialists. Lectures are essential when it is a question of imparting technical or special information of a complex nature.Indian Oil Of-The-Job Methods: “Of-the-job training” simply means that training is not a part of everyday job activity. which are to be trained within a short time. They are usually enlivened with discussions.
Training and Development. It is an excellent method for development of conceptual knowledge and for reducing 16 . Presenting basic material that will provide a common background for subsequent activities. It lays emphasis on small group discussions. reviewing. • Illustrating the application of rules. • • Introducing a subject and presenting an overview of its scope. clarifying and summarizing. on organized subject matter. The conference is ideally suited for the purpose of analyzing problems and issues and examining them from different viewpoints. Conference Method: In this method. Learning is facilitated by building up on the ideas contributed by the conferees. • The main advantage of lecture system is that it is simple and efficient and though it is more materialistic. conducted in accordance with an organized plan.Indian Oil In training. the participating individuals ‘confer’ to discuss point of common interest to each other. and on the active participation of the members involved. in which the leader seeks to develop knowledge and understanding by obtaining an considerable amount of oral participation of the trainees. A conference is basic to most participative group-centered methods of development. principles. It is a formal meeting. the most important uses of lectures include: • Reducing anxiety about upcoming training programmes or organisational changes by explaining their purposes. 2. it can be presented within a given time.
3. Case Studies: “The case study is based on the belief that the managerial competence can best be attained through study. who is invited to participate in the discussion. which they often willingly accept. The group discussion compares the reaction of trainees. description.” The ‘case’ is the set of data. When the trainees are given cases to analyse. • The person incharge of the group discussion distributes in advance the material to be analysed in the form of required readings. they are asked to identify the problem and recommend tentative solution for it. and this is followed by critical discussion. written or oral miniature.Indian Oil dogmatism and modifying attitudes because the participants develops solutions and reach conclusions. and guides the participant to certain conclusions. Group Discussions: This is an established method for training. defines the general trends. and summary of such data that present issues and problem calling for solutions or action on the part of trainee. The trainees read their papers. A group discussion is conducted in many ways: • It may be based on a paper prepared by one or more trainees on a subject selected in consultation with the person incharge of the group discussion. • It may be based on the statement made by the person incharge of the group discussion or on a document prepared by an expert. It may be a part of a study or related to theoretical studies or practical problems. encourages discussion. and discussion of concrete cases. contemplation. This method offers to the trainees matter 17 . 4.Training and Development.
It incorporates a pre-arranged. 18 .Indian Oil for reflection and brings home to them a sense of complexity of life as oppose to theoretical simplifications of. 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. and practices in the decision-making process. or desired course of proceedings pertaining to the learning or acquisitions of some specific skills or general knowledge. 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. 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.Training and Development. Programmed Instruction: Programmed instruction involves a sequence of steps. 5.
Evaluation must provide the means and focus for trainers to be able to appraise themselves. their practices. the personnel manager should accurately assess trainee’s job performance two or four months after completion of training. There are various approaches to training evaluation. 19 . but deadlines that are unreasonably high will result in poor evaluation. • • Evaluation must be continuous. A sense of urgency must be developed. and their products. the specific nature of training deficiencies.Training and Development. Realistic target dates must be set for each phase of the evaluation process. • • Evaluation must be based on objective methods and standards. and the extent of training not needed for the participants to meet the job requirements. whether the trainees required any additional on the job training. To get a valid measure of training effectiveness.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. Evaluation of the training programme must be based on the following principles: • Evaluation specialist must be clear about the goals and purpose of evaluation.
Training and Development.Indian Oil 20 .
an increase of 3.1 million tonnes registered in 2002-03. At the time of independence in 1947. The consumption of petroleum products has grown 30 times in the last 50 years from 3 million tonnes during 1948-49 to about 107.5 (71.7 million tonnes in 2003-04. A vast network of over 29.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.9 65. Oil Production & Consumption In India (Million Tons) 2004 Crude Oil Production Crude Oil Consumption Deficit (Met By Imports) 32.3 to 103 million metric tonnes per annum. The testimony of its vigour and success during the past five and half decades is the significant increase in crude oil production from 0.25 to 0. the industry is largely in the public domain with skills and technical expertise comparable to the highest international standards.5) 2004 32. the following table furnishes a comparison of per capita consumption of petroleum products in the various parts of the world.8) (54.0) In order to understand the level of Indian demand for petroleum products in a global perspective.7 68.9) 2003 33.Training and Development. 21 .0) (39.2 (34. international companies controlled the industry.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.5 103.5% over 104.5 2005 32 86 2006 32. Today. after 60 years later.9 62.33 million tonnes per annum and refining capacity from 0.9 (33.
three refineries were set up at Guwahati (Assam). A major boost to the oil industry came in pursuance of the Industrial Policy Resolution. Barauni (Bihar).610 585 With the per capita consumption level in India being only about 60% of that in China. the first two at Mumbai and the third at Vishakhapatnam. the Indian Oil Company (INDIAN OIL). again a wholly owned Government company. which was formed a Directorate in 1955. Esso Stanvac. 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.Indian Oil (Kilograms per annum) India China North America World Average 98 165 2. Indian Refineries Ltd. and Caltex. In 1959.Training and Development. India has witnesses a significant growth in the refining facilities and increase in the number of refineries from one to eighteen now. to form Indian Oil Corporation Ltd. viz. 22 . was formed for marketing of petroleum products. given particularly a large population base of over a billion. a strong growth potential exists in India. a wholly owned public sector Government Company. ONGC. Growth In the 60 years since independence. on 1 September 1964. 1956 that intended to promote growth of the vital sectors such as petroleum under the State control. was merged with Indian Oil Company Ltd. Under its banner. 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. in 1985.
thereby raising the refining capacity to about 62 MMTpa. and the dwindling reliance on indigenous production of oil and natural gas. The balance had to be made good by imports putting our foreign exchange to a great strain. Major expansions of the coastal refineries at Mumbai. Cochin. In 1996. the production of crude oil increased to over 35 million tonnes per annum in the year 1997-98. and installation of Secondary Processing Facilities to increase the production of much required kerosene. the Government of India. This represents only less than 50% of country’s requirement of petroleum. an MMTpa refinery was built in the joint sector at Mangalore between HPCL and Indian Rayon. a small refinery of 0. The notable feature of the capacity additions during this decade have been the extensive utilization of the process design capabilities of M/s.Training and Development.Indian Oil The next ten years period (1967-77) witnessed the establishment of two refineries. This decade also saw significant expansion to the capacities of the existing refineries. Engineers India Ltd. 23 . During the fifth decade (1987-97). in 1991 decided to open up the exploration and production of oil and natural gas to the private sector. one with equity participation from America and Iranian companies at Chennai. diesel and LPG.5 MMTpa (Million metric tonnes per annum) at Nagapatinnam was built in Tamil Nadu. and Vishakhapatnam were also completed during this period. 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. and another in the public sector at Haldia by Indian Oil. However. It is based on crude from adjoining fields. Chennai. The Period 1977-87 saw the commissioning of two more refineries in the public sector. The refinery at Bongaigaon was the first experiment in having an integrated petroleum refinery-cum-petrochemicals unit.
Indian Oil The ministry of petroleum invited bids from the private parties / consortiums. which will be built and operated by Indian Oil. The Government also sold its residual equity of 26% in IBP Co. 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. the Government decided to set up 5 million tonnes of strategic crude oil storage in the country at Mangalore and Vishakhapatnam. there are 18 refineries operating in the country. with an installed capacity of 102 million metric tonnes per annum. With the setting up of Panipat Refinery in 1999-2000.58% of Government of India’s equity in IBP through competitive bidding process. 24 . one in the joint sector and one in the private sector. Earlier in 2002. for exploration and production work. as many as 21 small oil-gas fields and more than a dozen exploration blocks were awarded to private parties. Indian Oil had acquired 33. Consequently. It was also decided by government to import Liquefied Natural Gas. The government also decided to open up oil exploration in the deeper continental shelf by private parties.Training and Development. In the upstream sector. the Government of India signed 20 contracts for oil & gas exploration under the fourth round of New Exploration Licensing Policy (NELP) and eight contracts under the second round of the Coal Bed Methane (CBM) Policy. On the disinvestments front. during the year. and thereafter acquired another 20% through open offer to the public. the Government of India successfully sold 10% of its equity in Oil & Natural Gas Corporation Ltd. Ltd. in a number of bidding rounds. through public offer. to meet the ever-growing requirement of natural gas in the country. Significant hydrocarbon discoveries in the blocks awarded earlier enhanced the prospects of finding more oil & gas reserves in the country.(ONGC) and GAIL (India) Ltd. 15 in the public sector. For enhancing the country’s oil security.
Training and Development.2001 25 .Indian Oil DEMAND FOR PETROLEUM PRODUCTS Demand Growth From 1991 .
5 % Threats: Towards end of the year. are therefore steps in the right direction 26 .1991 Crude Oil Processing Demand For Total Petroleum Products 52 Million Tons 55 Million Tons Consumption In Year Ended 31. and encouragement to Indian companies in acquiring equity oil and gas abroad. While the uprising in gross refining margins helped improve the bottom line. Since our country is still dependent on imports to the extent of 70% of its requirement. 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.Indian Oil The Indian GDP and energy consumption have each grown at the rate of about 6% per annum from 1991 to 2001. Indian refiners were severely impacted by the everrising and fluctuation price of crude oil and products in the international market.2001 103 Million Tons 94 Million Tons Compound Avg.03.1 % 5.Training and Development. we shall continue to be subject to volatility in the international prices of oil. The strengthening of the Indian Rupee against the US Dollar helped limit the impact partially. Concerted steps taken by the Government to augment indigenous production through the NELP rounds.03. the major concern of the petroleum industry was the rising cost of crude oil. Growth Rate 5.
Some people call it as “Black Gold”. 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. Superior Kerosene Oil etc in the near future.Training and Development. Consumption of Petroleum products is an index of a country’s development. From an annual consumption of less than 3 Million Tonnes in 1948-1949 India’s Petroleum products consumption has grown to 107. industrialisation and economic well-being. Aviation Turbine Fuel etc and also trying to decontrol High Speed Diesel. Motor Spirit. The Government of India had already decanalised some products like Furnace Oil. It shows the growth rate of Petroleum Industry in the country in the post independence period.Indian Oil INTRODUCTION: Petroleum is one of the most valuable natural resource in the world. The Indian oil sector is in the threshold of major changes. 27 . The flexibility of grabbing more market share will intensify after decontrol of these products from the Government. Liquefied Petroleum Gas.7 Million Tonnes in 2003-2004.
Indian Oil has also been adjudged No.61MMT in 2003-04. 1 in petroleum trading among the national oil companies in the Asia-Pacific region.9.1. It is the only Public Sector Undertaking among ‘India’s Top 10 Companies’ listed by the Far Eastern Economic Review in 2004. 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.686 crore tax) during 2003-04 as against Rs. The Profit before tax for the year ending 2005-06 was 6.299 crore Tax) in 2002-03.56MMT in 2002-03 to 48. Indian Oil earned ‘Excellent’ rating for its performance in its M. registering a growth of 15. 2.83.U with the Government of India for the year 2003-04. registering a growth of 2. In another major feat. In the year 2005-06 INDIAN OIL has achieved a sales turnover of Rs.2. 4.691 crore (Rs.204/-crores (profits of Rs.2 %.2 %.Indian Oil In order to protect national interest.414 crore (Rs. (As per the Fortune Listing). 28 . Indian Oil started with a sales turnover of Rs.915 crores for 2005-06). The total sales volume (inclusive of export sales) increased from 47. 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.706/crores. Indian Oil Corporation Limited (INDIAN OIL) is the 18th largest Petroleum Company in the World.8. 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. INDIAN OIL is ranked 153 rd among the 500 largest companies in the world. The Corporation recorded the highest ever Profit Before Tax of Rs. 109 crores and a profit of 1 crore in 1964-65. For 15th consecutive year.O.
viz. Motor Spirit / Gasoline 6. Lubes And Greases 3. By September 1964 both these companies were merged and Indian Oil Corporation was formed. 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. a Public Sector Company called Indian Refineries Limited was set up. the Multinational Oil Companies were nationalized and this led to the emergence of Bharat Petroleum Corporation Limited (BPCL) (from Shell) and 29 .. In the year 1956.Indian Oil Indian Oil deals with various petroleum products. The Companies main products are: 1. Aviation Turbine Fuel / Jet Kero 9. High Speed Diesel / Gas Oil 8. Lubricants HISTORY In the late 1950s Indian oil industry was dominated by three Multi national Companies. Esso and Caltex. Superior Kerosene Oil / Kero 7. Fuel And Feedstock 2. followed by a marketing organization called Indian Oil Company Limited In 1959. In 1970. Petrochemicals And Specialties 4.Training and Development. Liquefied Petroleum Gas / LPG 5. The country was dependant on refined petroleum products imported into the country by these companies. In 1958. Shell.
if the capacity of recently acquired subsidiaries is also added). The refinery network is presented with its installed refining capacity: 30 . Apart from this other public and private sector companies like Madras Refineries Limited. Later Assam Oil Company was merged with INDIAN OIL. 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. IPCL. Cochin Refineries Limited. All refinery units are accredited with ISO 9002 and ISO 14001 certifications. While the three oil majors have their own refineries. IBP relied only on marketing. Apart from this Government also formed Indo-Burma Petroleum (IBP) Limited. after the withdrawal of Administered Pricing Mechanism (APM). Bongaigaon Refineries and Petrochemicals Limited.Indian Oil Hindustan Petroleum Corporation Limited (HPCL) (from Esso and Caltex). 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. Indian Oil holds over 33% of the country's refining share (42%. But. and a separate division known as Assam Oil Division (of INDIAN OIL) was formed. Essar Oil Limited also entered the market at later stages. (in 2002) these oil companies were allowed to sell these decontrolled products through the Retail Outlets or by bulk to direct customers. Reliance Petroleum.Training and Development.
3 13.0 8.05 6.20 As On 1.Panipat Sub-Total IOC Cpcl.0 2.0 13.65 6.2002 1.0 0.35 45.35 9. 2005 1.15 6.50 1.7 4.0 8.6 8.85 49.50 2.5 0.0 0.2 13.5 1.0 36.Barauni IOC .0 6.0 2.5 0.4.6 8.Indian Oil Refinery As On As On As On As On As On 1.6 7.0 41.4.35 47.5 1.65 6.65 6.50 2.7 6.5 0.0 38.20 1.35 9.35 12.Digboi IOC.2003 IOC IOC.4.Haldia IOC.0 6.35 9.0 13.35 9.80 IOC Subsidiaries Indian Oil holds over 33% of the country's refining share (42%.65 6.0 4.4.0 2.0 0.0 41.65 6.5 1.85 54.Training and Development.50 2.7 6.4.2 13. All refinery units are accredited 31 .6 8.0 0.35 12.15 6.0 38.50 1.0 4.95 6.4.0 6.00 0.0 39.Guwahati IOC.Koyali IOC .7 4.65 6.2001 1.0 13.2000 1. if the capacity of recently acquired subsidiaries is also added).40 1.35 47.0 3.2004 1.85 54.7 4.Mathura IOC.35 9.0 4.Chennai CpclNarimanam BrplBongaigaon Sub-Total IOC Subisdiaries IOC-Total(WithSubsidiaries) 1.35 9.5 0.
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. and Marketing of Petroleum Products.80 million metric tonnes per annum (MMTPA) or one million barrels per day (bpd). Indian Oil holds over 51. (With the acquisition of IBP. The refinery network is presented below with its installed refining capacity. These employees are engaged in Crude Oil Refining.437 officers.Indian Oil with ISO 9002 and ISO 14001 certifications. including 10. Mathura (Uttar Pradesh) and Panipat (Haryana). Haldia (West Bengal).8% of the total manpower. 2006 was 30.Gujarat). Continuous innovation and up gradation of technology have resulted in high efficiency and optimum capacity utilization. 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. These are located at Guwahati and Digboi (Assam). It is the sole canalizing agency for the import and export of Crude Oil and Finished Petroleum products. it holds around 60 % of the market in India) The Corporation’s employee strength as on March 31.61 Million Tonnes in 2005-06. These include two refineries of subsidiary Chennai Petroleum Corporation Limited and Bongaigaon Refinery & Petrochemicals limited to increase its refining capacity . Indian Oil has five divisions: 1) 2) 3) 4) Refineries Division Pipelines Division Marketing Division Research and Development Division and 32 . constituting 7.Training and Development. There are 2. With sales of 49. Barauni (Bihar).406 women employees including 775 officers.2 % of Market share.801. Koyali (Baroda. Pipeline Transportation.
Oil tanking GmbH (Germany). Essar Oil Limited (EOL).Indian Oil 5) Assam Oil division. These include Retail Outlets of MS/HSD. Marubeni (Japan). SKO/LDO dealers. In addition to products refined at its own plants. 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 . Reliance Petroleum Limited (RPL). Assam Oil division is into refining and also marketing of oil products in the northeast part of India. Gas Authority of India Limited (GAIL) etc of India. Twelve Joint ventures are now operational in partnership with leading companies like Mobil and Lubrizol Corporation (USA). INDIAN OIL constantly strives to develop its nationwide pipeline network.575 kms of Crosscountry pipelines (country’s largest network). Oil and Natural Gas Corporation Limited (ONGC). Bharat Petroleum Corporation Limited (BPCL). It transports Crude Oil and Finished Products through over 7. Research and development division is into developing new lubes and lube formulations required for the current market. LPG distributors. It controls a network of over 22. As the name suggests Refineries division is into refining of imported and local crude which is available in India. too. From its inception it has formulated more than 2000 lube formulations. Petronas (Malaysia). SERVO shops etc.000 sales points spread over India (the largest in the country).Training and Development. IBP.
Subsequently. in fact. The launch of premium fuels . Indian Oil's new generation High Speed Diesel with world-class additives has taken a leadership position in the market. XtraPremium is. and XtraMile to 850 cities and 1750 petrol and diesel stations by the end of 34 . XtraPremiuem sales have been extended to 200 cities and 750 petrol & diesel stations. ii. iii. XtraMile.Indian Oil i. 24.Training and Development. The maiden launch of these branded fuels took place in Delhi on Sept.XtraPremium and XtraMile (originally IOC Premium and Diesel Super respectively). the only petrol in India with 91 Octane and doped with Multifunctional Additives. iv. marks a new beginning for Indian Oil and its customers. THE FAMOUS BRANDS UNDER INDIAN OIL Indian Oil's branded fuels XtraMile and XtraPremium have made a significant impact in the petroleum retail market. Madras Refineries Limited Reliance Petroleum Limited Cochin Refineries Limited Bongaigaon Refineries & Petrochemicals Limited. 2002.
the ever dependable sporting icon is servo Brand Ambassador.300 Servo Shops and a countrywide network of bazaar traders. SERVO ranges of lubricants enjoy approvals from major Original Equipment Manufacturers (OEMs) including new generation cars. Developed exclusively at Indian Oil's world-class R&D Centre at Faridabad. Servo range of lubricants is fast emerging as a Global Brand. Bajaj.100 Indian Oil petrol/diesel stations. Servo has genuine oil tie ups with a wide range of companies like Hyundai. The Servo range of lubricants is used in almost every application covering automotive. Servo has been designated as a superbrand. there is a Servo lubricant for virtually every single application. Anil Kumble. over 1. industrial and marine sectors. With over 42% market share and 450 grades. Maruti. Lancer. 9.Training and Development. 35 . the country's leading Servo brand lubricants from Indian Oil are sold through over 8.000 Retail Outlets and a countrywide network of SERVO SSls and SSAs Bazaar traders offer servo range of lubricants to customers.Indian Oil SERVO is India's largest selling lubricant brand.
Indian Oil Indian Oil Indane LPGas is used in 40 Million homes as cooking fuel and commands over 48% market share in India. 36 . etc. Marketed through a network 48 stations out of an industry total of 103 Auto LPG Dispensing Stations.Training and Development. Indane LPGas is marketed through a network of 4350 Indane distributors. medical labs. 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. hotels & restaurants. New and convenient 5 kg Indane LPGas cylinders introduced in rural and hilly regions for wider use by economically weaker sections.77 MMTPA. Widely used in commercial sectors like industries.
and Indian Oil intends to further expand its marketing in a big way 37 .Training and Development. This alternative fuel is a good business proposition in the long term. Bangalore and Mumbai markets.Indian Oil Autogas (LPG) has been introduced in Hyderabad.
The Corporation has 87 LPG Bottling plants with a total capacity of 36. with total sales crossing 49. INDIAN OIL has 35 Area Offices to deal with the marketing of LPG. transport. They are fed by 162 Bulk storage depots/terminals all over the country. Indane Cooking Gas is distributed to over 375 lakh customers in 2.Indian Oil INDIAN OIL SERVES CUSTOMERS FROM KARGIL TO KANYAKUMARI: Indian Oil’s remarkable marketing and distribution network extends from Kargil to Kanyakumari.Training and Development. Delhi. 74.138 Retail Outlets including 82 Jubilee Retail Outlets serve the retail market. agriculture.521 Kerosene/ Light Diesel Oil (LDO) dealers reach the products to the customers throughout the country. 38 .61 Million Metric Tonnes in 2005-06. There are 15 State Offices and 44 Divisional Offices including 2 of Assam Oil Division. Chennai and Kolkata. catering to a vast spectrum of customers including households. and defence forces. The Marketing Division of the Corporation has its headquarters located in Mumbai. industries. A large network of 9.000 tonnes per annum. It has FOUR Regional Offices located at Mumbai.350 distributors.177 towns through 4. A total of 3.
The centre has developed over 2000 Lubricant/Grease formulations and introduced multigrade fuel-efficient lubricants for modern vehicles and is constantly trying new ways of improving fuel efficiency and quality. Indian Oil Blending Ltd. INDIAN OIL. INDIAN OIL meets around 89 % requirements of Air Force whereas total needs of Army and Navy. modern Research and Development Centre at Faridabad with facilities matching international standards. INDIAN OIL has always been keen supporter of worthy causes such as family planning and welfare and rehabilitation of handicapped and under privileged. INDIAN OIL has carried oil requirements to remote hamlets. INDIAN OIL has also given top priority to its customers’ interests. medical. drought or floods.IMPROVING THE QUALITY OF LIFE: INDIAN OIL provides welfare schemes including housing. 39 . and are sold through more than 9. provided fuel for transport and fulfilled energy needs of the Defence forces.Indian Oil INDIAN OIL has 94 Aviation Fuel Stations catering to Civil and Defence Aircrafts with a market share of 68 %.Training and Development. manufactures over 450 grades of the country’s leading SERVO brand of lubricants and greases with 42 % market share. sports and recreation facilities to its employees and their families. The company has a ISO-9001 certified. So it continuously strives to bring energy to life. Be it peace time or war. besides a countrywide network of bazaar traders. INDIAN OIL has launched genuine lubricating oils for almost all brands and makes of vehicles.100 Company retail outlets. INDIAN OIL views energy as a means of achieving self-reliance and healthy economy. A wholly owned subsidiary.
Viramgam – Koyali crude oil pipeline (148 km). The details of various major projects are as follows: Completed Projects: • • • • • • Diesel Hydrotreating and Solvent De-waxing units at Digboi Refinery. Port terminal at Mauritius with a tankage of 15.Training and Development. 40 .Indian Oil PROJECTS: Indian Oil accords high priority to timely project implementation. Koyali-Viramgam-Sidhpur product pipeline (102 km). LPG bottling plants at eight locations. Kurukshetra-Roorkee-Najibabad product pipeline (167 km).5 TMT.
Training and Development. 41 . Koyali and Haldia refineries. • • Paraxylene/Purified Terephthallic Acid unit at Panipat Refinery. Diesel Hydrotreating unit at Mathura Refinery MS quality improvement projects at Mathura.Indian Oil Ongoing Project: • • • Linear Alkyl Benzene unit at Koyali Refinery. • • Grassroots refinery at Paradip Mundra-Kandla crude oil pipeline (73 km) and conversion of the Kandla – Panipat section of KBPL to crude oil service. Panipat Refinery expansion from 6 MMT per annum to 12 MMT per annum.
42 . 7 depots at various locations. • Koyali . New Project: • • Naphtha Cracker project and downstream polymer units at Panipat. Chennai – Trichy – Madurai product pipeline (683 km). Faridabad. • • • • Dadri – Panipat gas pipeline.Training and Development. Branch pipelines to Raxaul and Baitalpur from Barauni – Kanpur product pipeline. Capacity augmentation of LPG bottling plants at Chengalpet and Tikrikalan. Sidhpur – Sanganer product pipeline (506 km). • • Naphtha transfer pipeline from Asaoti to NTPC. Construction of grassroots LPG bottling plants at Raipur and Virudhachalam. Dockline at Narimanam (8 km). Hydrocracker Laboratory – Phase-II – at R&D Centre.Ratlam (274 km) and Koyali – Dahej (112 km) product pipeline.Indian Oil • • • • Paradip – Haldia crude oil pipeline (353 km).
4915 crore (approx US$ 1. Indian Oil is the sole Indian presence in Fortune’s prestigious listing of the world’s 500 largest corporations. It has been adjudged 43 .22 million metric tonnes (MMT) of petroleum products.83.66 MMT.059 million). In 2005-06 . and a net profit of Rs. and pipeline network transported 44. while its seven own refineries achieves a throughput of 37. 1. 42% national refining capacity and 67% downstream pipeline transportation network. ranked 153 and is the 18th largest petroleum company in the world.603 million) for 2003-04.Indian Oil DIVISIONS OF INDIAN OIL Corporate: Indian Oil is India’s Flagship national oil company. Indian Oil is the country’s largest commercial enterprise – also the first and only company to cross Rs. accounting for 51.204/. Indian Oil sold 46.Training and Development.50 MMT of crude oil and petroleum products.2% petroleum products market share.1 lakh crore turnover – with a Gross Turnover of Rs.crore (approx US$ 41.
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.Training and Development. 1 To maximize creation of wealth.Indian Oil No. Indian Oil operates under the aegis of the Ministry of Petroleum & Natural Gas (MOP&NG).1 in petroleum trading among the national oil companies in the Asia-Pacific region. diversified. 4 To foster a culture of participation and innovation for employee growth and contribution. adopting and assimilating state-of-theart technology for competitive advantage. playing a national role in oil security & public distribution. Government of India. and cost reduction. value and satisfaction for the stakeholders. with national leadership and a strong environment conscience. integrated energy company. 44 . and is ranked 325th in the current Forbes’ “Global 500” listing of the largest public companies. 3 To provide technology and services through sustained Research and Development. 2 To attain leadership in developing. transnational. with the VISION to be a major.
• 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. transportation and marketing activities and to provide appropriate assistance to the consumer to conserve and use petroleum products efficiently. 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. 6 To help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience.Indian Oil 5 To cultivate high standards of business ethics and Total Quality Management for a strong corporate identity and brand equity. 45 . 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.
arising out of the liberalization policies being pursued by the Government of India. • To avail of all viable opportunities. lube business. To achieve higher growth through integration. • 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. power. acquisitions and diversification by harnessing new business opportunities like petrochemicals.Training and Development. mergers. • To maximize utilization of the existing facilities in order to improve efficiency and increase productivity.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. consultancy abroad and exploration & production. • • To optimize utilization of its refining capacity and maximize distillate yield from refining of crude to minimize foreign exchange outgo. To minimize fuel consumption in refineries and stock losses in marketing operations to effect energy conservation. 46 . both national and global.
47 . without budgetary support. • To develop long-term corporate plans to provide for adequate growth of the activities of the Corporations.Training and Development. • • 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. 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.
Training and Development. Performance Graphs 2005-06 48 . • 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.
Indian Oil 49 .Training and Development.
impartiality and courtesy and promote ancillary industries. 50 . Towards Suppliers: • To ensure prompt dealings with integrity. • • Expeditious redressal of grievances: Fair dealings with recognized representatives of employees in pursuance of healthy trade union practice and sound personnel policies.Training and Development. Towards Community: • To develop techno-economically viable and environment-friendly products for the benefit of the people.Indian Oil Obligations: Towards Customers And Dealers : • To provide prompt. courteous and efficient service and quality products at fair and reasonable prices. Towards Employees: • Develop their capability and advancement through appropriate training and career planning. • To encourage progressive indigenous manufacture of products and materials so as to substitute imports.
2 3 Bigger site for Retail Outlets on highways. Import Parity Pricing.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. 5 Quickly create infrastructural facilities at supply locations / Divisional Offices to improve customer service through: Faster loading of Railway Tank Wagons / Tank Trucks. Promote / inculcate dealers as Indian Oil family member and ensure that they are “working dealers” and not “absentee dealers”. Towards Defense Services: To maintain adequate supplies to Defence Services during normal and emergency situations as per their requirement at different locations. Areas Of Focus : 1 Strategic resitement of Retail Outlet. 4 Profit maximization through Sale of “Free Trade Product”. to sites outside town area to facilitate better/improved Gasoline facilities in metros/major towns. 51 . specially for Diesel Oil. Project Management for faster completion of on-going project. Faster commissioning of Retail Outlets.
Dubai. Dealership network to assist in our direct efforts. Eight existing Refineries.Indian Oil Quick and accurate billing. Improved communication facilities. Up-country storages nearer to the market. 6 Areas of improvement as per “Customer Satisfaction Measurement and Management” study : Finance.Training and Development. It has also set up subsidiaries in 52 . Supply Point. Lower cost of production from old Refineries. Strengths • • • • Wide field network. Kuala Lumpur and Mauritius to co-ordinate business activities. • • Strength on international trade. Maintenance. Computerized and modernized accounting system. Spreading Wings : Indian Oil has overseas offices in Sri Lanka.
Training and Development. Kuwait.* 4. Sri Lanka. Bahrain. Malaysia. SERVO lubricants are being exported to Dubai.* 21 % approx.Indian Oil Mauritius and Sri Lanka for implementing business expansion project. Bhutan.* Indian Oil has the maximum market share with 55% followed by Bharat Petroleum Corporation with 21% and Hindustan Petroleum Corporation with 19. Nepal. 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 % approx. Indonesia.5% 53 .* 19. Mauritius. Bangladesh etc. Marketing The marketing of petroleum products in India today is dominated by the four state-owned oil companies.
In addition. Indian Oils aims at excellent excellence. R & D Center. Assam Oil Division. PII and defence personnel. it also receives nominations from Refinery and Pipelines Divisions. which has enabled it to maintain and perpetuate its profitable and efficient existence.Training and Development. it is ranked 153 rd largest Industrial Corporation in the world. As per the ranking by the Fortune500 magazine.Indian Oil TRAINING AT INDIAN OIL INDIAN OIL is the largest industrial corporation in India in terms of sales turnover. It also offers an opportunity for participation in training programme to managers of organization from developing countries with which it has co-operation agreements. Oil Co-ordination Committee (OCC). 54 . 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. but has also gained unquestionable credibility at the international level. 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. The Corporation has not only established its leadership in this field. PCRA. The Head Office training center looks after the management training activity of over 2000 managers in Marketing Division. Indian Oil Blending Limited (IOBL). That is the reason why INDIAN OIL has given the highest importance to training right from its inception.
Full-fledged training centers were set up in all the refineries – Guwahati. The early focus was on supervisory development. Gujarat. Barauni. In 1965. Even as early as 1963-64 technical programmes on fuel engineering were conducted for the sales force with the help of MOBIL. 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. Liquid Petroleum Gas (LPG) and a few bahavioural programmes. in 1967-68 as more programmes were added. USA. the Administrative Staff College (ASC) was set up in Bombay to conduct functional programmes in areas such as Personnel Management and Productivity for INDIAN OIL personnel in addition to the POL programmes for the Defence Personnel. The 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. training was taken up at the regional levels with four regional training centers. In the initial years the United Nations experts helped in organizing supervisory development programmes. Digboi – Assam Oil Division (AOD) and Mathura with major emphasis on technical and skilldevelopment programmes in the initial years of their existence 55 . A few years later. Training activities in the R&D Division started in early 1960s in the Guwahati Refinery. the training activities were also carried out almost independently divisionwise.Indian Oil Evolution Of Training In INDIAN OIL: Prior to 1964. Emphasis in the organization on training programmes was largely in the areas of handling of Petroleum products.Training and Development. the individual companies had their own training schemes patterned on the erstwhile oil companies approach. and each set up headed by a Branch Training Officer. Haldia. Since the organization was designed along divisional lines.
with the help of the Marketing Division. The refinery at Digboi being peculiar to itself in terms of the technology and operations. specific training programmes in operations and maintenance were organized. The IMA was to conduct specific functional and developmental programmes for officers of the R&P Division. Consequently. In the mid-1970s. For increased understanding and coordination between the two divisions a series of interface. Athreya was invited as an OD interventionist. The Personnel function was regrouped and. In early 1980s. Accordingly. The AOD had a strong and systematic approach to training with major emphasis on planned on-the-job training. Professor M. The AOD by itself has a long history of emphasis on training even prior to its nationalization and integration with INDIAN OIL. programmes were organized since 1975-76. General Management Programmes and behavioural programmes were organized in the Refinery training centers. The Indian Oil Management Academy (IMA) started functioning in August 1979 to meet the emerging training needs at selected managerial levels. Various technical and skill development programmes were conducted by AOD for officers and staff at all 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.Indian Oil In the 1970s. 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. Training and HRD.Training and Development. emphasis was given to Human Resources Development and it became a subsystem of the Personnel function. the performance appraisal forms were amended in INDIAN OIL to introduce a component of training to help in the identification of training needs. Based on the suggestions made by the consultant. The HRD group was specifically assigned the task of integrating the identified 56 . there were certain organizational changes in the Personnel function. reorganized into three subsystems – Personnel and Administration.
review of ongoing course.Training and Development. etc. and Regional/unit level play an active role in formulating training plans. courses and interface programmes. In 1990. The APA form was redesigned and training need identification was given more importance. The TMTC offered suggestions to improve the training infrastructural facilities and better utilization of manpower for training within the organization. training committees at the corporate office level. which necessitated greater emphasis on technical training. In 1987. -The concept of the staple programmes – all officers to be exposed to them was simultaneously introduced. The interdisciplinary programmes were introduced to expose the officers to function other than their parent discipline. Finance.Indian Oil corporate mission with the department and individual goals. the training also got a fillip with introduction of general management and leadership 57 . in keeping with the corporate objective closer / greater interface was envisaged between the divisions. further changes were introduced in the Annual Performance Appraisal (APA) System. Coinciding with this. Technical Services. Sales. Because of the HRD outlook in the organization. Thus. Marketing. Consequently. Operations. the personnel department was redesigned as Human Resource Management to reflect the greater emphasis on HRD though the basic set up continued as earlier. At the same time. In Indian Oil Corporation today. Aviation. the Tata Management Training Centre (TMTC) was invited to study the training activities in INDIAN OIL. which included appropriate career planning and role analysis. Personnel. and appropriate career path models drawn. LPG. there was considerable technical upgradation. eight disciplines were identified in the Marketing Division namely. Head Office (Division) level.
In the Refineries and Pipelines Divisions. apart from the training programmes for direct recruits and promotee officers and the middle and senior level officers at the HO. other departments like Fire & Safety Department and Inspection etc conduct certain training programmes. at each regional headquarter level and at the head office. Over the years. 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. middle and junior level officer training programmes and external and middle and senior level officers training respectively. 58 . the INDIAN OIL has invested substantial amount of financial resources into training. each refinery has a comprehensive training set up taking care of both workmen training. officer training for junior and mid level officers and management training programmes for direct recruits while the Indian Management Academy (IMA) organizes programmes for middle and senior level officers in addition to the Junior Executive Development programmes for Promoter officers. the training activity is organized with set ups at selected locations. 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. regional office and head office handling workmen training. 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.Training and Development. The workers training is organized at the selected locations while officers’ train and some workmen training are organized at regional headquarters.
2 To continuously scan the environment.Training and Development. review training programmes and design need-based inputs to ensure achievement of high level of excellence in customer satisfaction. 5 Enable through training. 59 .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. distribution. 4 Facilitate the induction of new employees into Indian Oil Corporation through suitable orientation programmes. and consumption of petroleum products. Equip work force with skills to make Indian Oil Corporation a global player. which shall also play a vital role in building customer relations over a long term. Defense Services to efficiently handle storage. 3 Assist / guide the employees in their pursuit of knowledge and selfactualization. expounding the belief that there are no limits to human potential and growth.
Training In-charge of the Region (Senior / Manager (T&D)) 60 . In addition one Regional ED is invited to the HO training Convenor . Based on the need identified. General Managers (HOD) of the Region.Director (M) . and General Managers I/C.General Managers / Dy. The training committee also reviews the training activities on a half-yearly basis. HO TRAINING COMMITTEE Chairman Members .DGM (T&D) REGIONAL TRAINING COMMITTEE Chairman Members Convenor . . training programmes focused towards specific area of interest are approved by the committee for implementation. .ED of the Regional.Executive Director.Training and Development. Committee.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.
• Each employee’s training needs are identified through system of Annual Performance Appraisal (APA). • 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.Training and Development. • Basically two types of training programmes are conducted by the training department : a. which is sent to all the departments. • Once the nominations are identified and course announcement made. 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. • Nomination for Regional course is as per the eligibility criterion laid down for each programme.Indian Oil In Indian Oil Corporation: • Training Department has a training calendar. • Similarly. b. 61 . withdrawal of nomination is normally not permitted.
62 . 3 To assist the employees in their pursuit of knowledge and selfactualization. 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. • Participants attending external training are required to make a formal presentation regarding the training received along with action plan for implementation.Training and Development.Indian Oil • Participants at the end of each programme do the overall course evaluation and the courses are modified depending upon the feedback received. which is the most important thing called for in the current changing environment. This ensures transfer of knowledge for on job performance.
to stress the performance standards expected. 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. and/or payment of fees for External courses). 63 .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.Training and Development. 3 To provide information for employees. 2 To provide operational guidelines for management. to help recruit high caliber recruits. For example. 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. for example to state management’s responsibilities for planning and implementing training and in particular. 4 To enhance public relations for example. to ensure that training resources are allocated to priority and statutory requirements.
64 . 4 It is necessary for old employees to enable them to keep abreast of changing methods. 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. techniques. and technology.Indian Oil Need For Training : Indian Oil Corporation is involved in refining and marketing of POL. 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 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. For self – development. Here. It reduces wastage and accidents.Training and Development. 2 Junior employees need training before they take the position of their seniors.
Help and confirm some earlier ideas. in the training 65 .Training and Development.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. A successful training programme can be made by creating a good environment for it. skills. For personal growth To gain new and pertinent knowledge Acquire specific approaches. complaints. absenteeism. and labour turnover. or techniques that can be applied on the job. To develop understanding of specific subjects covered programme As a change for routine job schedule. For professional growth in organization. To be acquainted with new technology. It also helps in reducing dissatisfaction. Participants’ Expectations From A Training Programme : Improving and solving specific problems confronted in job functions.
Implementation of the programme 6. Defining organizational objectives and strategies 2. Evaluation of the results 66 . ideas and solutions from other departments Look at oneself and one’s job objectively. Training Process Of Indian Oil Involves Several Steps : 1.Indian Oil Acquaint with problems.Training and Development. Devising the training programme 5. Assessment of the training needs 3. Establishing training goals 4.
assessing training needs is treated as 67 .Indian Oil TRAINING PROCEDURE IN INDIAN OIL 1. appropriate management training system does not take a generalized view of training needs. Evaluation Effectiveness of training in Indian Oil. 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. Training Faculty 6. Follow – up. Training Techniques 5. Under this system. 8. Training Facilities 4. Like the prevalent management development and training programmes. Identification of training needs. 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 and Development. Training Nominations 3. 2. Preparation of the Trainee 7.
its 68 .Indian Oil an important and crucial training function before designing and conducting a programme. 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. Assessing existing level of knowledge. Identification and definition of standards of knowledge.Training and Development. Effective performance of a job requires a standard of competence in the job holder consisting of vital areas such as job related knowledge. skill and attitude required in a job. The processing of assessing and finding the gap between the standard competence required in a job and the existing competences in turns of vital knowledge and skill and attitude in the job holder may be called as the identification of the areas of deficiencies and the resultant inventory of gaps in the job holder in terms of knowledge and skill and attitude may be said as his training needs. attitude of the job holder. 2. skill and attitude. 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. But due to one or other reasons the existing competence of the jobholder may fall short of the standard competence required in the job. A training programme should be established only when it is felt that it would assist in the solution of specified operational problems. The most important step in the first place is to make a thorough analysis of the entire organization.
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. The nominations to external training programmes are encouraged only for such progrmmes where inhouse training programmes are not available. Traditional programmes are redesigned so as to be 69 . their current system provides consultation with concerned officers by his superior to ascertain the training needs. Employees do write in their Annual Performance Appraisal (APA) forms about the training they would like to undergo.Training and Development. 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. 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. Each officers training are identified in the “Training needs Exercise” which is covered every two years.Indian Oil operations and manpower resources available in order to find out the ‘trouble spots’ where training may be needed. In Indian Oil. and there is a self/organizational need. Based on this new training also gets identified year after year. Prior to identifying needs of each officer.
Videorama.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. in extreme unavoidable circumstances. Withdrawal of nomination – once the training department identifies the nominations and course announcement is made. this is permitted subject to prior approval of the competent authority.Training and Development. The main thrust of training activities at regional level is improving functional competency. They have also acquired latest electronic gadget like liquid Crystal Display. The training halls have been carefully designed keeping acoustic requirement in view. The nominations for workmen category are finalized at the regional training centers keeping in view the specific needs of each employee segment. Management training courses / supervisory development courses are conducted in some of the reputed nominated hotels. withdrawal of nomination is normally not permitted. The training halls are equipped with the latest and most sophisticated audio-visual equipments to ensure training effectiveness. 3) Training Facilities The non residential training programmes are conducted in the training halls located in the HO/Regional head quarters. It has an excellent collection of books and CDs on various aspects of Management. The training center at HO has well equipped reference library. Nominations for regional courses are as per the eligibility criteria laid down for each programme. However. 70 . for improving training efficiency. direct projector. Electronic Board (Panaboard).
71 .Training and Development. The training faculty members are selected based on their positive attitude towards training assignment and their ability to communicate effectively with others. The training faculty is responsible for ensuring that the formal training activities are in line with the organisational requirements. training methodology mix is carefully designed. the management provides ample opportunity to the employees to take active part in the learning process. The participants of various training programmes are also required to prepare reports and make formal presentations. Petroleum Industry and Energy Management besides general disciplines. Syndicate project studies are also given in most of the courses to study the live organizational problems and give recommendations. live video recording. In the management training courses emphasis is placed on the use of state-of-the art training technologies like simulation exercises. The strength of the Training in INDIAN OIL lies in the faculty being generated from within. 4) Training Techniques Depending on the course objectives. In the training courses. This aids in the process of learning for workmen training. structured experiential instruments. computer aided Management Games. which are then duly considered by the management for implementation.Indian Oil Information Technology. Each faculty member is required to have thorough knowledge of his subject. 5) Training Faculty The trainer has to be prepared for the job for he is the key figure in the entire programme. In-house faculty imparts a lot of credibility to the training efforts. case study method etc. Adequate emphasis is given to hands-on-training.
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.
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.
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.
In job rotation.Training and Development. Apprenticeship is generally used to impart skills requiring long periods of practice as found in trade. and other technical fields. a management trainee is made to move from job at certain intervals. ON-THE-JOB TRAINING : Virtually. The actual location may be in the company classrooms or in places. Internship is usually applied to managerial personnel and provides a wide variety of job experience. job rotation and special assignment under coaching or under study method (which is also known as internship and apprenticeship method). There are a variety of on the job methods such as coaching or under study. the employee is trained on the job by his immediate supervisor. Since most jobs in an industry can be learnt is a relatively shorter period of time this method is widely used. which are owned by the company or in universities or associations. from the assistant to company’s chairman gets some on-the-job training when he joins a firm. Special assignments or committees are other methods used to provide lower level executives with first hand experience in working on actual problems. means that the personnel unit has a major responsibility for making a good effective teacher out of every supervisor. These methods consist of 76 . every employee.Indian Oil CLASSIFICATION OF TRAINING METHODS: 1. It has the advantage of strongly motivating the trainee to learn since it is not located in the artificial situation of a classroom. which have no connection with the company. crafts. The fact that the success of the system depends almost entirely upon the immediate supervisor. the trainer. The jobs vary in content. OFF-THE-JOB METHODS OR CLASS ROOM : Off-the-job training simply means that training is not a part of every day activity. 2.
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. the formal superior or other individual specific topics. It can be organized rigorously so that ideas and principles relate properly. The lecture method can be used for very large groups. v. a seminar is conducted in many ways. the participating individuals confer to discuss points of common interests to each other. It is a formal meeting. ii. Lectures Conferences Group Discussions Case studies Role playing Programmed instructions T-group training i. vii. It may be based on paper prepared by one or more trainees or on a 77 . theories and problems solving abilities are to be taught. which are to be trained within a short time thus reducing the cost per trainee. Lectures are formal organized talks by the training specialist. iii.Indian Oil i. concepts or principles.Training and Development. iv. It lays emphasis on small group discussions. attitudes. Conference Method In this method. on organized subject matter and on the active participation of the members involved. Lectures Lectures are regarded as one of the simplest ways of imparting knowledge to the trainees especially when facts. A conference is basic to most participative group centered methods of development. vi. Seminar / Team Discussion This is an established method for training. ii. iii.
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. encourages discussions. Develop alternative courses of action. defines the general trends and guides the participants to certain conclusions. Screen the alternatives using the objectives as criteria. Case study is based on the belief that managerial competence can best be attained through the study. 78 . and discussion of concrete cases.Training and Development. become acquainted with the content of the case. the trainee is expected to Master the facts. real or fictional. they are asked to identify the problems and to recommend tentative solutions for it. Define the objectives sought in dealing with the issues in the case.Indian Oil subject selected in consultation with a person in charge of the seminar. 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. The seminar compares the reactions of trainees. Iv. Identify the problems in the case and uncover their probable causes. contemplation. A case is a set of data. written or oral miniature description. In Case study method. It may be part of the study or related to the critical studies or practical problems. When the trainees are given case to analyse. and summary of such data that present issue and problems calling for solutions or actions on the part of the trainee. The person in charge of the seminar distributes in advance the material to be analysed in the form of required readings.
tapes and films are generally used in conjunction with other conventional teaching methods. T-Group Training This usually comprises association. discussing a grievance procedure. members are kept informed of the latest development in their particular fields. vii. Planned and supervised reading programmes 79 . hiring. 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. firing. v. conducting a post appraisal interview or disciplining a subordinate or a salesman making a representation to a customer. These parts do not involve any memorization of lines or any rehearsals. proposed or desired course of proceedings pertaining to the learning or the acquisition of some specific skills or general knowledge.Indian Oil Select the alternative that is most in keeping with the stated objectives. Sometimes after the preliminarily involves employee-employer relations. 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.Training and Development. they have to play. Programmed Instruction (Teaching By The Machine Method) Programmed Instruction involves a sequence of steps. audio-visual aids and planned reading programmes. Audio-visual aids-records. It incorporates a prearranged. 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. The role players are simply informed of the situation and of the respective roles. Vi. Two or more trainees are assigned parts to play before the rest of the class. Role – Playing In role-playing trainees act out a given role as they would in a stage play.
Indian Oil are conducted. It is a classroom training. 80 . 3. VESTIBULE TRAINING : This method attempts to duplicate on the job situations in a company classroom. This technique enables the trainee to concentrate on learning the new skill rather than on performing an actual job. which is often imparted with the help of the equipment. and machines. It is a very essential method of training semi-skilled personnel. particularly when many employees have to be trained for the same kind of work at the same time. which are identical with those in use in the work place. technical publications and the latest journals are kept in the library for the use of the trainees.Training and Development.
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. and this had played a role in more systematic organization development. The training and development programmes held in Indian Oil helped their employees to know theirs strength and weaknesses and helped them to work on their weaknesses. 81 . 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. In addition.Training and Development. Indian Oil has a very strong base of human resource development and training.Indian Oil Conclusion: Training has played a very important role in helping Indian Oil to reach the commanding heights of performance.
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