Submitted By: Name of student: Payal Sharma Enrollment No.: 0302061709 Batch: 2009-2012 INTERNAL GUIDE Name: Designation: EXTERNAL GUIDE Name: Designation:

Trinity Institute of Professional Studies Affiliated To Guru Gobind Singh Indraprastha University


TO WHOM SO EVER IT MAY CONCERN This is to certify that the project work “Performance Management system” made by: Payal Sharma, BBA (Gen), 03020601709 is an authentic work carried out by her under guidance and supervision of Internal guide Name The project report submitted has been found satisfactory for the partial fulfillment of the degree of Bachelor of Business Administration. Internal Supervisor Signature Name


It is in particular that I am acknowledging my sincere feeling towards my mentors who graciously gave me their time and expertise. They have provided me with the valuable guidance, sustained efforts and friendly approach. It would have been difficult to achieve the results in such a short span of time without their help. I deem it my duty to record my gratitude towards the External project supervisor __Name_____ and Internal project supervisor ---Name--who devoted his/her precious time to interact, guide and gave me the right approach to accomplish the task and also helped me to enhance my knowledge and understanding of the project. PAYAL SHARMA 03020601709 5TH SEM/1ST SHIFT


DECLARATION I hereby declare that the following documented project report titled “Performance Management system” is an original and authentic work done by me for the partial fulfillment of Bachelors of Business Administration degree program at “Indian Oil Corporation limited” I hereby certify that all the Endeavor put in the fulfillment of the task are genuine and original to the best of my knowledge & I have not submitted it earlier elsewhere. Payal Sharma 03020601709 BBA (Gen) 5th sem (1st shift) 4 .

2 location 1. mission & values 1.2 Opportunities & threats Page no.1 Strengths & weaknesses 3. 8 10 12 13 16 17 20 21 32 40 44 44 45 46 51 52 5 .4 vision.8 HR department of IOCL 1.1 introduction 1.3 salient features 1.10 Performance appraisal Chapter-2 RESEARCH METHODOLOGY 2.7 markets 1.2 Research design 2.4 Limitations Chapter-3 SWOT ANALYSIS 3.3 Questionnaire design 2.9 Personnel management system 1.6 organizational structure 1.5 product range 1.Contents Title Chapter-1 PROFILE OF THE COMPANY 1.1 Universe of study 2.

2 Highlights 5.1 Conclusion 5.3 Recommendations & Suggestions APPENDIX QUESSIONAIRE 54 56 57 58 6 .Chapter-4 FINDINGS 4.1 Findings Chapter-5 CONCLUSIONS. RECOMMENDATIONS AND SUGGESSIONS 5.


with its registered office at Bombay. 3. In this section.125 million) and profit of Rs. In October 1981 Assam Oil Company was nationalized and has been amalgamated with IOCL as Assam Oil Division (AOD) 8 .744 crore ($ 72. ranked at the 98th position. is India's largest company by sales with a turnover of Rs. IndianOil is the highest ranked Indian company in the latest Fortune ‘Global 500’ listings. special initiatives and recognitions & awards that have come its way. IndianOil's vision is driven by a group of dynamic leaders who have made it a name to reckon with. In order to ensure greater efficiency and smooth working in the petroleum sector .INDIAN OIL CORPORATION LIMITED Indian Oil Corporation Ltd.633 million) for the year 2010-11. 7445 crore ($ 1.28. In 1967. The Indian Refineries and Indian Oil Company were combined to form the giant Indian Oil Corporation (IOCL) on 1St September 1964. the pipeline division of the corporation was merged with the refineries division. Government of India decided to merge the refineneries and the distribution activities. read about IndianOil’s business and its spread across financial performance. Research &Development of Indian Oil Came into Existence in 1972.

ensuring products and inventory at their doorstep. 40.700 markets through a network of about 5. 101 aviation fuel stations and 89 Indane (LPGas) bottling plants. Indian Oil operates the largest and the widest network of petrol & diesel stations in the country. Indian Oil’s ISO-9002 certified Aviation Service commands over 62% market share in aviation fuel business.4% refining capacity and 69% downstream sector pipelines capacity in India. Indian Oil reaches precious petroleum products to millions of people everyday through a countrywide network of about 34. They are backed for supplies by 166 bulk storage terminals and depots. was formed in 1964 with the merger of Indian Refineries Ltd. meeting the fuel needs of domestic and international flag carriers. It reaches Indane cooking gas to the doorsteps of over 50 million households in nearly 2.000 Indane distributors. (established 1958).000 sales points. agricultural and marine sectors.100 bulk consumer pumps are also in operation for the convenience of large consumers.Beginning in 1959 as Indian Oil Company Ltd.600. 9 . As the flagship national oil company in the downstream sector. The Corporation also enjoys a do4 minant share of the bulk consumer business. Indian Oil Corporation Ltd. and industrial. Indian Oil and its subsidiaries account for 49% petroleum products market share. numbering over 17. private airlines and the Indian Defense Services.. including that of railways. About 7. state transport undertakings.

New Delhi.783 385 Marketing Division 10 . Mathura -281 005(Uttar Pradesh)  Panipat Refinery: P.O.LOCATION Registered Office : Indian Oil Bhavan. Panipat-132140(Haryana)  Bongaigaon Refinery: P. Haldia Refinery Dist. Panipat Refinery. Core-2 7. Midnapur-721 606 (West Bengal)  Mathura Refinery: P. Dhaligaon Dist. Institutional Area.O. Dist.O. Sadiqnagar. Begusarai -861 114 (Bihar)  Gujarat Refinery: P. Guwahati-781020 (Assam)  Haldia Refinery: P. J B Tito Marg. Mathura Refinery. Ali Yavar Jung Marg.O.110 049 Refineries Division  Head Office : SCOPE Complex.O. Chirang. Noonmati. Bandra(East). G-9. Vadodara -391 320(Gujarat)  Guwahati Refinery : P. Dist. Assam . Mumbai-400 051 Corporate Office : 3079/3. Lodhi Road New Delhi -110003  Barauni Refinery: P.O.O. Jawahar Nagar. Barauni Oil Refinery.

Mumbai -400 025  Southern Region: IndianOil Bhavan 139. Yusuf Sarai New Delhi -110016  Eastern Region: IndianOil Bhavan. Ali Yavar Jung Marg. Aurobindo Marg. South (Dhakuria) Kolkata -700 068  Western Region: 254-C. Head Office: G-9. 2. Nungambakkam High Road 11 . Gariahat Road. Mumbai -400 051  Northern Region: IndianOil Bhavan. Annie Besant Road. 1. Bandra (East). Dr. Worli Colony.

• Highest ranked Indian corporate in Fortune’s list of world’s 500 largest Companies (2008::116th) • 20th largest petroleum company in the world. Brand Equity-AC Nielson Survey 2007) • India’s largest commercial enterprise with leading market shares in downstream segment of oil business.Fortune Global500 • Local Currency Rating of A1+(short-term) & LAA+(long-term) from ICRA • India’s No. Business India(BI) 12 .1 corporate in annual listing of Business Standards (BS 10000).SALIENT FEATURES • India’s Most Trusted Fuel Pump Brand (ET.


adopting and assimilating state-ofthe-art technology for competitive advantage. integrated energy company. value and satisfaction for the stakeholders. 14 . and cost reduction. To attain leadership in developing. To foster a culture of participation and innovation for employee growth and contribution. with national leadership and a strong environment conscience. To cultivate high standards of business ethics and Total Quality Management for a strong corporate identity and brand equity. To help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience. playing a national role in oil security & public distribution.Vision A major diversified. Mission To achieve international standards of excellence in all aspects of energy and diversified business with focus on customer delight through value of products and services. trans-national. To provide technology and services through sustained Research and Development. To maximize creation of wealth.

VALUES Care stands for:Empathy Understanding Co-operation Empowerment Innovation stands for:Creativity Ability to learn/absorb Flexibility Change Passion stands for:Commitment Dedication Pride Inspiration Ownership Zeal & Zest Trust stands for:Delivered Promises Reliability Integrity Truthfulness Transparency 15 .

S. Super Kerosene Oil (S. High Speed Diesel Oil (H.D) 6.PRODUCT RANGE PRODUCTS The Products produced by IOCL are broadly classified into the following cases:Class A: Class A: 1. Lubes & Greases 15.P.O) 12.D.B. Bitumen 8.S. Unleaded petroleum 14. Fuel & Feedstock 16.D) Class C: 5.)/Gasoline 3.O) 4.G) Class B: 2.O) 13.) 7. Light Diesel Oil (L.F) Class D: 10.K.T. Super Kerosene Oil 16 . Mineral Turpentine Oil (M.O) 11. Furnace Oil (F. Jute Batching Oil (J. Liquid Petroleum Gas (L.O. Naphtha 9. High Speed Diesel Oil (H. Motor Spirit (M. Aviation Turbine Fuel (A.T.S.


plants.G.M – L.S.O):ED – W.M – Regional Service(Eastern Region) G.G. Under each state office there are divisional officers.G. 2.S. state officers.B.O:One senior HR Managers One HR Officer  AREA OF OFFICES UNDER W. STRUCTURE OF EASTERN REGION OFFICE:G.M – Consumer Sales D.B.B.B.  STRUCTURE OF WEST REGIONAL STATE OFFICE (W.M – Human Resource G.M – Lube D. terminal & depots.G.G D.M – Finance Sales D.M – Operations D. Durgapur area offices.B.M – Aviation G.O:W.M – Law  STRUCTURE OF HR DEPARTMENT UNDER W. Siliguri area offices.P. 3.S. Kolkata area offices.G.M – Finance  STRUCTURE OF STATE OFFICE:There are 16 state office all over India.O has three area offices: 1. 18 .S.O CRSM – Retail Sales D.G.S.

Budge Budge 2.P.O:The L. Malda 4.G UNDER W.B. Hasimara 2. Rangpo 19 .G plants under W.S.B.S.B. L. Kalyani 4. Durgapur 3.S. Kantapukur 3.O:1. Malda 5. Rangpo 6.O are situated as the following places: 1.P. Raninagar 7. Port Blair  DEPOTS UNDER W.

IndianOil has been adjudged India's No. The heritage iconic association that the brand invokes has been built over four decades of commitment uninterrupted supply line of petroleum products to every part of the country. The countrywide marketing operations are coordinated 16 State Offices and over 100 decentralised administrative offices. inland depots. IndianOil topped The Hindu Business line's "India's Most Valuable Brands" list. Several landmark surveys continue to rate IndianOil as the dominant energy brand in the country and an enduring symbol for high quality petroleum products and services. From the icy heights of the Himalayas to the sun-soaked shores of Kerala. refining. Its ubiquitous petrol/diesel stations are located across different terrains and regions of the Indian subcontinent. IndianOil national brand owned by over a billion Indians and that is a priceless value. and unique products that cater not only to the functional requirements but also the aspirational needs of millions customers. 1 brand by UK-based Brand Finance. an independent consultancy that deals with valuation of brands. in every part' IndianOil's vast marketing infrastructure of petrol/diesel stations. transportation & marketing. petrochemicals & natural gas and downstream marketing operations abroad. with over 34. the value of IndianOil brand is not just limited to its commercial role as an energy provider but straddles entire value chain of gamut of exploration & production. IndianOil is truly 'in every heart. SERVO lubricants & greases outlets and large volume consumer pumps are backed by bulk storage terminals and installations. 20 .MARKETS IndianOil has one of the largest petroleum marketing and distribution networks in Asia. Indane (LPG) distributorships. LPG bottling plants lube blending plants amongst others. However. In addition. from Kutch on India' western tip to Kohima in the verdant North East.AC Nielsen survey.000 marketing touch points. It was also listed as India's 'Most Trusted Brand'in the 'Gasoline' category in a Readers Digest . aviation fuel stations.


promotion. of which 9.HR DEPARTMENT OF IOCL The human resources in Indian Oil Corporation was 31. pay.387 women employees.Policy section is concerned with framing and modification of policies. out of whom 692 are in the Officers carde and 1. Objectives of Personnel Department of IOCL :The primary objectives of Personnel Department are as under: 22 . The main sections of the personnel department are as following:(a) HRD:. (c) Establishment :.This section looks after the manpower recruitment of the refinery division. It also books into HR and legal matter. The SC and ST employees constitute 24. post retirement benefits etc.03.947 are in the Staff cadre. There are 5.53% of the total employees’ strength. There are 2.2002. to provide various benefits to employees under the rules. leave . It is concern with recruitment.728 are in the Officers cadre and 21.54% of total employees strength. (b) Policy Section:.Establishment section maintains the personal data of employee /individuals and facilitates providing various employee benefits such as medical benefits. to frame policies etc.672 employees from SC category and 2.695 in Staff cadre. The women employees constitute 7. The HR department at IOCL Refineries Division subdivided into the following areas:(i) Personnel Department:The main function of personnel department is to ensure that the all information related to employees is maintained and updated.675 strong as on 31. transfers of employees across the division.097 from ST category.

(i) Design and develop an organizational structure with well defined relationships commensurate with the business plans and corporate strategies. (viii) Administration of Electronic Performance Management System and Productivity Incentive Schemes. (ix)Change agent to new interventions. 23 . directives. (iv)Develop the capability and proficiency of employees and their advancement through appropriate training and continuous knowledge updating to face corporate challenges and new technologies. procedures and practices and ensure its uniform interpretation and judicious implementation. (vi)Ensure compliance of social and statutory obligations and Govt. and (vii) Inculcate productivity consciousness amongst employees. (ii)Promote and develop co-operative attitude amongst employees by fostering harmonious relations at all levels and inculcate sense of belonging. (v)Promote and inculcate the culture of employee’s participation in management. (iii)Evolve progressive and pragmatic personnel policies.

 Personnel records.  Determine the organizational structure and optimize manpower to effectively meet Company¶s objective.  Training & development of employees.canteen.  Transfer. Security. clubs etc. (ii) PERSONNEL MAINTENANCE:        Motivation. (iv) INDUSTRIAL RELATIONS: Productivity Bargaining.  Discipline Administration. Employee amenities . (iii) DEVELOPING THE HUMAN RESOURCE: Induction and apprentice training.  Recruitment. Communication.  Grievance Handling. Recreation.  Job description.  Providing joint consultative machinery-Joint Management Councils.FUNCTIONS OF PERSONNEL DEPARTMENT OF IOCL:(i) STAFFING: Manpower planning.\ Safety.  Promotion. 24 . Medical Services. Performance Appraisal.

Policy guidelines and strategies.(v) COMPENSATION : Wage & Salary surveys & controls.  Formulating & implementing Personnel policies.  Negotiations. 25 .  Incentives / bonus. (vi) PERSONNEL POLICY & PLANNING: Defining Organizational goals.

26 . Personnel Department shall also be responsible for ensuring compliance with the provision of various labour laws and other statutes.RESPONSIBILITIES OF PERSONNEL DEPARTMENT OF IOCL:It will be the responsibility of Personnel Department at Refineries HQ to formulate. Personnel Department's role will be that of a staff department with emphasis on its advisory character in all matters connected with personnel activities except in respect of the promotion of welfare measures which will be the executive responsibility of this Department. the Refineries Division's personnel policies and programes and to communicate the same to the Units. Personnel Department at Hrs. under the overall direction of Director (Refineries). Personnel management essentially being a staff functions. and P&A Departments at each unit shall provide assistance and counsel to other departments on personnel matters.

Implementation of hindi language in various official activities. Supervising canteen services. Lok Sabha Secretariat etc. the Department maintains various records and statistics and handles correspondence with the Ministry. 27 . welfare and security matters to the entire Refinery Units including AOD.(ii) Administration Department :The function of administration department is to provide services related to administration and welfare of employees.  Maintaining stores and dispatch activities. other organizations and VIP references. Arranging vehicles for official requirements. Providing loans/ advances to employees for house.       Objectives of Administration Department of IOCL:(i) The primary objective of the Department is to assist the Management in implementation and execution of various administrative decisions taken by the Board of Directors of the Corporation. Community development programs. For this purpose. (ii) Coordination is another important task of the Department.Apart from it. For this purpose. (iii) The Department also renders assistance to Refinery Units and various departments at the Headquarters in maintaining liaison with various Ministries of the Government of India. Some of the main areas looked after for administration department are:Allotment of quarters/ accommodation to employees. Kolkata and Mumbai offices as well as other Departments at Headquarters. the Department also functions as Service Department to the internal and external customers and provides necessary assistance on general administrative. Government agencies. Parliamentary bodies. it acts as a Secretariat of the Director (Refineries) / Director In-charge (AOD) .  Organizing functions.

(xi) Security of Company Assets & Personnel. (xii) Provision of Club memberships/ credit cards. Conveyance Advance. (v)Office and residential accommodation (company owned / company lease/self-lease). (iii)Rajbhasha implementation. Festival Advance. Executives. (iv)Administration of House Building Advance. (viii) Disposal of unserviceable materials including vehicles. (xiii) Schools in Refinery Townships. reimbursement of conveyance expenses. FUNCTIONS OF ADMINISTRATION DEPARTMENT OF IOCL:Policy Matters : (i) Delegation of Powers. (ix) Maintenance of office records. (ii) Implementation of Board's decisions. (xiv) Community Development 28 . (x) Transport facilities.(iv) The Department aims at achieving the highest level of efficiency and productivity with utmost speed and accuracy. (vii) Furniture / computers for office at residence of Sr. etc. (vi) Furniture and computers on hire for officers at residence.

(iii) Office Services Contracts. (vi) Liaison with Solicitors for obtaining legal advice. (ii) Land/Houses acquisition matters. (vi) Coordination with Ministries. (v) Lease agreements. (iv) Bonds and Mortgage deeds. (iv) Estimates Committee. (iii) Furnishing information required by Deptt. Of Public Enterprises.Coordination: (i) Reply to Parliament Questions. 29 . Parliamentary Committee on Public (v) Undertakings and other such Committees. Legal Matters: (i) Providing assistance in processing of contracts and agreements. (ii) Reply to VIP references.

(ii) Dak receipt. distribution and dispatch. (xi) Maintenance and Administration of Guest Houses. (iii) Domestic Rail and Air bookings. (vi) Fire fighting. (iii) Induction of CISF (iv) Civil Defence Measures (v) Issue of identity cards. (v) Transportation ± Hiring of Cars & Buses. (ix) International travel arrangement including Foreign exchange. (ii) Maintenance and Administration of Medical Transit Camps. (xiii) Communication Services maintenance. 30 . (xii) Lodging arrangements for officers on tour. (vi) Photocopiers / Digital Document Centres / Fax Machines / Cellular phones.General Administration: (i) House keeping of office space. (x) Allotment of office space / residential accommodation. (vii) Office furniture and equipments. Transit accommodation. Goa and Mussoorie. (viii) Stationery and Stores. Security & Safety: (i) Territorial Army. Darjeeling. etc. (ii) Security measures in Refinery Units & HO including CO. Welfare Activities: (i) Maintenance and Administration of Holiday Homes for officers at Shimla & Manali and for workmen at Manali. (iii) Canteens. (iv) Control of Staff/Hired Cars including maintenance. Civil Defence.

Townships and Guest Houses. etc. 31 . staff vehicles. (iii) Operation and maintenance of electrical installations. water supply. MTNL Telephones. lifts. photocopiers. Mobile phones.(iv) Sports (v) Coordination jobs relating to official functions/gatherings. air conditioners. neon signs etc. purchased by the Corporation. Maintenance of Assets (i) Maintenance of land / property records. Mobile phones etc. (v) Communication Services like Fax. water storage tanks. Digital document centers. (ii) Servicing and maintenance of office equipment viz. (iv) Maintenance of office buildings. company owned / leased residential accommodation.


Measurement items in the performance appraisal system must be designed in such a way that the results of rating are consistent regardless of the raters and the timing of the assessment. In order for performance appraisal information to be useful. There are two primary purposes of performance management system: evaluative developmental. Without a reliable performance appraisal system. The purpose of performance appraisal must be clearly communicated both to raters and ratees. The developmental purpose is intended to identify problems in employees performing the assigned task. The evaluative purpose is intended to inform people of their performance standing. because their reactions to the appraisal process are significantly different depending on the intended purpose. a human resource management system falls apart. resulting in the total waste of the valuable human assets a company has. 33 . The collected performance data are frequently used to reward high performance and to punish poor performance. and motivating and maintaining a quality work force by adequately and properly rewarding their performance. training and development of existing staff. the PMS system must be able to consistently produce reliable and valid results. Failure to inform about the purpose or misleading information about the purpose may result in inaccurate and biased appraisal reports.Performance Management System (PMS) is one of the important components in systemic process of human resource management. The collected performance data are used to provide necessary skill training or professional development. The information obtained through performance management system provides foundations for recruiting and selecting new hires.

and abilities.  What to Evaluate? The first important step in developing a PM system is to determine which aspects of performance to evaluate. It is important to make sure that the appraisal items are really measuring the intended performance or target behavior. But traits are not always directly related to job performance. the PMS system must be able to consistently produce reliable and valid results. Another critical criterion in developing a PA system is the validity of the measurements. which is public safety. frequently negative. (b) Behaviors :. organizational outcomes. it encourages them to sit on a corner of a street and pull over as many violators as possible during heavy traffic hours. The true purpose of a police force. performance is so broadly defined or so conceptual in nature² such as ensuring public safety in the police de partment²that it is hard to come up with reliable performance measures. the PM system encourages the wrong kind of work behaviors and produces unintended. In such cases. aptitudes. Traits are relatively easy to assess once a rater gets to know ratees.Many employees are assessed according to their traits. behaviors. Such 34 . If they are not. (a) Traits :. The most frequently used appraisal criteria are traits. Trait-based assessment lacks validity and thus frequently raises legal questions. desirable behaviors can be identified and assessed in the belief that such behaviors lead to successful performance. attitudes. if the number of traffic violation tickets issued is an item in performance appraisal of police officers. skills.For many jobs. may become secondary to issuing a large number of tickets for many officers. For instance.In order for performance information to be useful. and task outcomes. Measurement items in the performance management system must be designed in such a way that the results of rating are consistent regardless of the raters and the timing of the assessment. such as personality.

customers. Peer pressure is sometimes a powerful 35 . However. (c) Task outcomes :. Some companies find that subordinates are in an excellent position to observe and evaluate their managers' performance. this approach is recommended. as a result of working together over a long time with the same employees. This may result in poor customer service on the floor. There is a problem if employee behaviors are not directly related to the task out-come. for example.When information about task outcomes is readily available. they are encouraged to help a few large-volume customers and to ignore many smaller buyers. While there is merit in asking subordinates to evaluate how they are managed. it has its own pitfalls. the immediate supervisor may build up a fixed impression about each employee and use it every time he or she has to evaluate performance. Their evaluation is a powerful tool in motivating employees to achieve successful and timely completion of tasks. and the employees themselves. who are usually in the best position to know and observe the employees' job performance. Too narrow a focus on measuring out-come only sometimes results in unintended negative consequences. Peer evaluation is particularly useful when teamwork and collegiality are important to successful task performance.  Who Evaluates? The most common raters of performance are employees' immediate supervisors. They are also responsible for employee¶s work. Anonymity of the evaluators is key to the successful use of subordinates for objective evaluation. Accurate and objective assessment may not be obtained if employees are fearful of possible retaliation from their supervisors.behavior-focused assessment encourages employees to adopt desirable behavioral patterns in the workplace. it is the most appropriate factor to use in evaluating performance. When an organization has a clear and measurable goal as in the case of a sales force. However. such evaluation may turn into a popularity contest. Other raters who are frequently used in some companies include peers. especially when it comes to measuring effective management of their department. When sales staff narrow focus on target sales figures to increase their performance measure.

Organization exists to attain certain goals and objectives through a effort. Some form of control and co-ordination is needed to facilitate the achievement of such goal. A caution has to be exercised as the assessment of an individuals performance is a delicate task since it is intricately enmeshed in the personality make up of one who is assessing the performance and having profound effect on the individual who is being assessed. especially when the performance appraisal is intended to identify the training and development needs of potential employees. unconscious urges and the fact that it is impossible to arrive at categorically absolute judgment in this sphere.motivator in encouraging teamwork among members. In the field of human behavior and performance. Employee also wishes to know their position in their organization. Customer satisfaction is vital to a company's success and can be used in performance management. appraisal is a systematic evaluation of performance by supervisors or other familiar with their performance because employers are interested in knowing about employee performance. In industry. ³Performance management system is systematic and objective way of judging the relative worth or ability of an employee in performing his task. Performance mgt helps to identify those who are performing their assigned tasks well and those who are not and the reason for such performance. typically through anonymous surveys and interviews. the measurement or appraisal can’t take the form of weighing on a scale certain material object or accurately temperature with the instrument. Some form of control and co-ordination is needed to facilitate the achievement of such goal. Some form of control and co-ordination is needed to facilitate the achievement of such goal. Self-assessment is also a useful means.´ It is a process of evaluating an employees performance on a job in terms of its requirement. Thus judgment as the basis of the appraisal can be subject to numerous drawbacks connected with the perceptions one’s own bias. Control devices in the form of performance appraisals were invented by the corporate world to accomplish their professed objectives. the social prejudice. Many companies systematically collect performance information from customers. It is here that the weakness of human judgment comes to the force. 36 .

identification of training and developmental needs and performance feedback. mutuality and appreciation for one another’s problem. e.e. identification of training and developmental needs and performance feedback. Promotions. 37 .Performance management system concerns with mainly three purposes: Administrative decisions i. transfers and allocation of financial rewards.  Personnel research i. Therefore a good performance appraisal system should aim at facilitating the communication between two officers and developing empathy.  Employee development i. e.

dismissal and discharges demotions. transfers. the standard of performance could also move upward leading to productivity. (4) Employee performance can be utilized for placement. To decide about confirmation or termination during probationary period. Management By Objectives is an established criterion as the standard of performance is established by the superior in consultation with employee concerned. job-rotation. lay-offs. To identify area for further training. 38 . ADVANTAGE OF SYSTEMATIC APPROACH TO PERFORMANCE APPRAISAL:(1) If it is possible to establish an atmosphere of mutual trust and confidence an effective performance appraisal system will help to build up employee morale.PURPOSE OF PERFORMANCE APPRAISAL:     To help determine promotions and transfer decisions. Once the performance level is satisfactorily established. (3) It will also help the management in rationalizing a job-oriented level of individual performance. Employee interest to improve his performance will help the management in achieving the organizational goals. To help in deciding the compensation plan. (2) It will stimulate employee participation in decision making affecting his own work. To uncover the potential of the person.

(5) Such appraisals can also serve as a guide in properly administering wage-and salary administrations.

In addition to having an impact on productivity, an effectively designed performance appraisal form servers as a contract between the organization and the employee. This contract acts as a control and evaluating system, better enabling performance appraisal to serve the following performance:  Management development: Focuses on the future by identifying and preparing individuals for increased responsibility or by establishing remedial training programs.  Performance measurement:Emphasis the past, trying to determine the relative value of employee performance; is useful for promotion, transfer, compensation and layoff decision.  Feedback:Outlines what performance is expected from employee.  HR planning:Audits management talent to evaluate the present supply of HR for replacement planning.  Communication:Provide a format for the dialogue between superior and subordinate and improves understanding of personal goals and concerns; can also increase the trust between the rater and rate.




BRIEF ON PERFORMANCE APPRAISAL IN IOCL With a view to appraising each employee, helping the management in placement, transfer and promotion, and deciding about his training needs. The following systems are in practice in IOCL. (i) e-PMS (Electronic Performance Management System) for officers. (ii) CRs (Confidential Reports) for non officers. Assessment period The assessment period for recording the performance of officers is financial year (1 April to 31 March). For staff it is calendar year. Employees having rendered more than three months service in a particular year has been separated before end assessment years are eligible and rated through ePMS System. PROCESS OF PERFORMANCE APPRAISAL SYSTEM FOR OFFICERS:Three persons participate actively in Performance Appraisal System. Who are: (i) Appraisee: The employee, who is to be evaluated. (ii) Appraiser: Supervisor, who evaluate the performance of Appraiser.

Negotiation Skills. 42 . Then Appraiser evaluates the Appraisee and gives him marks out of 5. Then Appraiser and Appraisee discuss them. Then they plan how to achieve these goals. 1-Needs improvement Appraiser evaluates Appraisee on the basis of following areas: (i) KRA (Key Result Area) is basic area to evaluate employee’s performance. These 3 marks signify: 3. Human Skills. Executive Skills. Decisiveness. executives. Appraiser decide the stretch for each KPI. Appraisee evaluates himself and gives marks out of 5. (ii) Competency Skills such as Intelligence.(iii) Reviewer: Sr. reach an agreement and put the agreed goals in writing. On the basis of priority they decide activities to be done to achieve the goals. KPI (Key Performance Indicator): On the basis of KRA. who check the evaluation process.Outstanding 2-Average. and Creativity Skills. At the end of financial year. Appraiser gives measurable grades to Appraisee is known as KPI. It may be in terms of marks or percentage. On the basis of difficult KRA. Teaching Skill. Communicative Ability. Apraisee fills a form in the starting of financial year which includes targets to be achieved by that particular employee. Leadership Skills.

CHAPTER-2 RESEARCH METHODOLOGY 43 . (iv) Values: It shows how much values of individual match to the objectives of organization.(iii) Potential: It shows Employee’s ability to do the work and to take up higher responsibilities in future.

The present study is carried in Mathura Refinery located on the outskirts of Mathura city.1.Research Methodology Research Methodology may be understood as a science of studying how research is done scientifically. It also experience survey. The working staff of Mathura Refinery is. which were used by the investigator for methodology:2.UNIVERSE OF STUDY: Universe covers the whole defined field on which the study is based.2 RESEARCH DESIGN: Designing is preliminary step in every activity. 44 . when one travel from Delhi to Agra. The researcher had used exploratory research for gaining experience. paper questioning etc. 2. selection of respondents. The universe of study was all working members including both staff and officers. For this relevant literature related with the subject had been carried out. Various products including petrol and diesel are manufactured from crude oil. Following are the steps and techniques. It provides a picture for the whole before starting the work. The environment of this area is peaceful with green atmosphere. In it we study the various steps that are generally adopted by a researcher in studying the research problem along with the logic behind them.

as it was both. So the researcher has studied only 50 employees of Mathura Refinery and covered nine departments that were—Personnel & Administration. In this method. 2. the researcher had used Random Sampling. Planning and Maintenance. Production.1. so it was very difficult to study each and every individual. whole population that is required for study is divided into different groups and sample were selected from them. It is a series of written or verbal questions for which the respondent provides answers. Instrumentation and Material department which represent the whole staff of the organization. Finance. so it should represent the whole universe without any bias. so the researcher had used stratified random sampling for study because it was more reliable. 45 .2. time saving as well as easy method of picking up the sample. Power and Utilities. Fire and Safety. A well-designed questionnaire motivates the respondent to provide complete and accurate information.3 QUESTIONNAIRE DESIGN: The questionnaire is a structured technique for collecting primary data in a survey.SAMPLE SIZE: Sample size depends on the nature of the universe. As there is huge manpower in Mathura Refinery. The limitation of time and money has not permitted the researcher to study the whole universe. Mechanical.2.2.SAMPLING METHOD: Out of various types of sampling methods.2. 2. As random sampling is also of many types.

Choose the exact question wording.3. The wording play major role in the questionnaire as they decide how well they can attract the attention of the client. Specifying the physical characteristics of the questionnaire (paper type. Determining the general question content needed to obtain the desired information. written form. e-mail.1-Steps in Developing the Questionnaire:The following were the steps in developing the questionnaire – the exact order may vary somewhat.2. number of questions per page. Determine the form of response. Arranging the questions into an effective sequence. Test the questionnaire and revise it as needed. The method of administration was of a written form. etc. Choosing a question type (structure and amount of disguise and method of administration. A meeting with the respondent was fixed so that the information apart from the questions in the questionnaire could be collected to get more data on prospective clients. 46 • • • • • • • . • Determining which information is being sought. Many mock interviews were conducted and the questionnaire was refined many at times in response to suggestions from the project leader.). The information being collected was related to Performance Appraisal. or web form). These quenching of the questions decides the approach to be followed and he stand which the respondent is going to take.

2.3. 47 .2 -Physical Characteristics of the Questionnaire: Physical aspects such as page layout. One hopes that the differences are due to real differences in the measured characteristics but that often is not the case. Then it was tested in the same way as it was to be administered.-Test and Revise the Questionnaire: The questionnaire was administered by using mock interviews in order to get better feedback on problems such as ambiguous questions. The layout of the questionnaire always has a impression on the outputs as are to be arranged or produced by the respondent.3. Different respondents answer the same question differently. font type and size.3. 2. question spacing etc. were considered.

2. employees were very reluctant in releasing the information. Thus.4 LIMITATIONS Though the data collected is proper but still there were certain limitations which were hindrance in making the data more appropriate. This would have hampered the flow of input in someway. As the questionnaire method was followed. Because of shutdown activities. 3. limitations would have creped in while administering the same. considering it to be confidential.4. employees were engaged with their shutdown jobs and thus were not very readily available. As the questionnaire method was followed. 48 . it was a hindrance in study.Many a time. people were not very comfortable in releasing the information. The limitations were:1.2.


The corporation is a big organization and the Main endeavor for it is to be ahead of the competitors. Dealership network to assist in our direct efforts. SWOT Analysis of the corporation gives the following results:STRENGTHS & WEAKNESSES Strengths:      Wide field network. Weaknesses: Lack of dedicated organizational set up for support system like Finance etc. Up-country storage nearer to the market.  Manpower reduction because of downloading at head office. 50 . Regional Offices and field offices. Lower cost of production from old refineries. Seven existing refineries. Strength on international trade.

51 .Essar oil and MNCs.  Capability to import and market shortfall products. Threats: Emerging players like Reliance Petroleum Ltd. etc.  Penetration of International giants into marketing.OPPORTUNITIES & THREATS Opportunities: Liberalized market scenario.  Dismantling of Administered Price Mechanism.  Lack of so many refineries producing Free Trade Products by other marketing companies.  Old traditional production techniques..


4 million households through a network of 5. education. 53 . sanitation. women empowerment and welfare of schedule caste and schedule tribe beneficiaries. Indian oil art exhibitions.  Every year a fixed portion of Indian Oil's profit is set aside for community welfare and developmental programs. providing portable water.456 Indian distributors. 1 petroleum trading company among the National Oil Companies in the Asia-Pacific region. 98th position in 2011. It supplies Indane cooking gas to over 62. culture.463 (15.FINDINGS  IndianOil operates the largest and the widest network of fuel stations in the country. music and dance under the banners of Indian oil sangeet shabha. It has also started Auto LPG Dispensing Stations (ALDS).  IndianOil is the highest ranked Indian company in the Fortune 'Global 500' listing.946 regular ROs & 3.  Indian Oil also supports art. The company has a number of community – focused initiatives such as development in health. It has also concerted social responsibility programs with communities. It also includes family welfare.517 Kissan Sewa Kendra). It has also worked towards better education in India by encouraging special scholarships among girl students and disadvantaged groups hence trying to reduce drop out rates in higher secondary levels. It is also the 18th largest petroleum company in the world and the No. numbering about 19.


It is also seen by the comparison made between IOCL and NTPC that both the Organizations have similar work environment but IOCL is providing with the Employees more career oriented work environment which help employees to grow and perform more tasks as compared to the NTPC.PMS policy the employees are assessed on regular basis which helps to keep a regular check on the employees and by the performance appraisal methods the employees are assessed only at the end of year which helps them to complete their goals at last minute time also. training and counseling which help 55 . Its more simple to understand the working environment of IOCL than NTPC because the self assessment procedure of IOCL specifies all the requirements to manage the performance of employees working at IOCL. IOCL contradicts this activity of NTPC by allowing their employees to make career oriented plans an plans which are helpful in future so that they provide with employees more scope to grow. I also want to tell that the employees had a difficulty when this method was introduced in the organization to adapt this method but later on it made work easy for them as more and more handy records are not maintained. One more point of difference between IOCL and NTPC is that IOCL provides their employees with some workshops. As the working environment of NTPC says that no career plans are made by the employees even they are not allowed to make. This project also shows that the e-PMS policy at IOCL is of a great importance for the IOCL itself and the employees of the IOCL. The NTPC rate their employees on the basis of 4 factors while the IOCL rate their employees on a 3 point scale which is easier to understand and rate the performance of each employee on a similar basis. It is found that during the e. The performance management system at IOCL is transparent and clears all the problem of HR department. I would also like to come to the point that the performance management system at IOCL is better than other PSUs.CONCLUSION From all the above information with the help of which I have been able to make my summer training project I draw a conclusion that the performance management system at IOCL has gradually developed over years at IOCL from hand written records to the computerized management systems which is commonly known as the e-PMS at the IOCL.

low cost of production and many more still there are some threats to the PSU like emergence of more and more big companies like Reliance ltd and lesser share in market but overall IOCL is still the biggest and most powerful PSU in oil production.them to grow whereas NTPC does not conduct any.  Identify factors that are contributed to employee’s performance and the factors that hinder it.  The strength and limitations of the subordinates should be realized. 56 .  To identify developmental needs in which the employee is prepared for discussion through self-assessment.  The subordinates need to be appraised more frequently on their positive contribution. in which the problems faced by the subordinates are taken in a systematic way and in which the supervisor attempts to understand the problems of the subordinates. HIGHLIGHTS After completing the research study on 120 employees (officers) of Mathura Refinery regarding effectiveness of PERFORMANCE APPRAISALSYSTEM. my suggestions would be that in future the research on IOCL should be such that:  The subordinates are encouraged to accept more responsibilities and challenges.  Subordinates should be encouraged to acquire new capabilities and to handle more responsibilities. By the swot analysis we got to know that despite of being so powerful in market by possessing strengths like wide field network.

Emphasis on feedback should be there. so more number of training programs should be there. People are not very much aware of filling the e-PMS.RECOMMENDATIONS AND SUGGESTIONS The following are the recommendations/suggestions which came into light after the completion of the study:1. 57 . 4. Post performance appraisal measures should be strengthened so that employees get to know their areas where focused improvement is required. 3. All employees should be aware of promotion policies of IOCL and the link of their promotions with the performance appraisal system. 2.


YES b. NO 7) Are you aware of the factors that govern the performance appraisal system? α.QUESIONAIRE 4) Are you aware of the performance appraisal system in your organization? α. Annually 9) In your opinion what feedback should be provided to you by your immediate supervisor regarding your assessment? …………………………………………………………………………………… ………………………………………………………………………… 59 . NO 6) Whether feedback is provided to you by your immediate supervisor regarding your assessment? α. Half-Yearly c. YES b. YES b. NO 8) In your opinion what should be the periodicity of performance appraisal of officers. NO 5) Are you aware of the periodicity of the performance appraisal? α. Quarterly b. α. YES b.

Communication j. Coping high pressures d.10) In your opinion what factors should govern the performance appraisal system? a. Planning and organizing g. Training and development of subordinates 60 . Adaptability change/ receptive new ideas f. Volume of work m. Cost consciousness b. Co-operation e. Problem awareness and decision making r. Willingness to accept responsibility h. Dependability ο. Control q. Quality of work n. Courage of conviction l. Initiative i. Time schedule c. People awareness p. Leadership k.

YES b. NO 13) In your opinion performance appraisal is used for the following • • • • • • • Promotion Training Organization effectiveness Development of officers Transfers Salary Adjustments Other benefits 61 .11) In your opinion what are critical factors of Performance Appraisal? …………………………………………………………………………………… ………………………………………………………………………… 12) In your opinion whether the performance appraisal system meets the objective meets the objective of fair assessment? α.

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