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(Principles of management that are followed in HPCL)


( 089535)

Hindustan Petroleum
HPCL, a Fortune 500 company, is one of the major integrated refining and
marketing oil company in India. It is a mega Public Sector Undertaking (PSU) with
Navratna status.

HPCL accounts for about 16% of the market share and 10.3% of the nation’s refining
capacity with two coastal refineries, one at Mumbai (West Coast) having a capacity of
5.5 MMTPA and the other in Vishakapatnam (East Coast) with a capacity of 7.5 MMTPA.
HPCL also holds an equity stake of 16.95% in Mangalore Refinery & Petrochemicals
Limited (MRPL), a state-of-the-art refinery at Mangalore with a capacity of 9 MMTPA.
HPCL is well on its way towards setting up another grassroot refinery in the state of
Punjab, called Guru Gobind Singh Refineries Limited. HPCL also owns and operates the
country’s largest Lube Refinery, producing Lube Base Oils of international standards.
With a capacity of 335,000 Metric Tonnes. This refinery accounts for over 40% of the
country’s total Lube Base Oil production.

It has returned “Excellent” performance for fifteen Consecutive years upto 2005-06,
since signing of the first MOU with the Ministry of Petroleum & Natural Gas. HPCL won
the prestigious MOU Award for the year 2005-06 for Excellent Overall Performance and
for being one of the Top Ten Public Sector Enterprises who fall under the ‘Excellent’
category. HPCL performance for the year 2006-07 also qualifies for “Excellent” rating.

The Corporation over the years has moved from strength to strength on all fronts. Our
refining thruput has increased three fold between 1984/85 to 2006/07, rising from 4.47
million tonnes in 1984/85 to 13.70 million tonnes currently. Consistent excellent
performance has been made possible by highly motivated workforce of more than
10,891 employees working all over India at its various refining and marketing locations.

To succeed in the competitive environment, the Corporation had taken up initiatives such
as Business Process Reengineering exercise, creation of Strategic Business Units, ERP
implementation, HR initiatives such as Organizational transformation, Balanced Score
Card, Competency Mapping, bench marking of refineries and terminals for product
specifications / safety, ISO certification of Refineries / marketing / pipeline operations,
branding of fuels, Supply Chain Management for improving logistics, customer oriented
approach, up-gradation and modernization of facilities.
Information technology is being harnessed by the Company to improve productivity
across the functions. The Enterprise Resource Planning (ERP) system is now operational
on Oracle Software across the Company.

Hindustan Petroleum Corporation Limited today is the second largest integrated oil
Company in India-playing a significant role in the nation's economic development and
growth. Against the background of economic liberalisation, HPCL is diversifying upstream
and downstream into Exploration & Production and Power & Petrochemicals while at the
same time strengthening infrastructural facilities ... the area of care competence being


The Corporation produces the entire range of petroleum products and serves all sectors
of the economy... industry, agriculture, transport, domestic public utilities and also major
consumers like the railways, power plants, steel plants, defence, fertiliser plants, etc.




Hindustan Petroleum Corporation Limited has 20% market share which is backed by a..


 4 Zonal Offices

 34 Zonal Offices (including 10 LPG Regional Offices)

 22 Terminals

 31 LTG Bottling Plants

 9 Aviation Service Stations

 4 Lube blending plants & a lube pipeline for base oil evacuation from the refinery

 90 Inland relay depots

 4327 Retail outlets

 1622 SKO/LDO dealerships

 1463 LTG distributorships

In addition to the above, two pipelines i.e. the 161 kms long Mumbai-Pune Product
Pipeline of 3.67 MMTPA capacity and the recently commissioned 350 kms long Visakh-
Vijayawada pipeline of 4.1 MMTPA capacity, are used for transportation of MS. SKO, HSD
and LDO

HPCL has two refineries. On the West Coast is the Mumbai Refinery with a capacity

of 5.5 Million Metric Tonnes Per Annum, while the other at Visakhaptnam on the

East Coast has a capacity of 7.5 Million Metric Tonnes Per Annum. The Lube

Refinery at Mumbai is the largest in the country with a capacity of 335,000 Metric

Tonnes Per Annum producing superior quality base oils. Both the refineries produce

a number of value added products like petrol, high speed diesel oil, superior kerosene

oil, liquefied petroleum gas, naphtha, aviation turbine fuel and others and over 300

grades of lubes, specialties and greases. Both the refineries have implemented and

upgraded facilities to produce green fuels like unleaded petrol and low sulphur diesel.


The marketing operations of HPCL are div ided into three strategic business units,

Retail, Direct Sales comprising of Lubes and Industrial & Government Sales, and



The Retail Business Unit is oriented towards delivering better and faster service to

consumers. The retails network consists of a nationwide network of over 4700 retail

outlets and over 1600 SKO/LDO resellers. The scope of the HP petrol pump has been

redefined. The consumers’ larger interests are served by transforming the petrol

pump into a one-stop convenience outle t where one can shop for anything from fuels

to grocery and lubricants to gifts. A nationwide chain of convenience stores has been

set up at HP petrol pumps. A number of outlets provide customers Internet access

while instant access to cash through ATMs of leading banks is available at prominent



• HPCL has a 31% market share of the lubricant market in the country. The HP

• Engine Oils product range covers over 300 brands of lubricants, greases and

• specialties catering to the automotive as well as the industrial sector. With years
• years of research and technical expertise, they are engineered to meet the
rigours of

• modern automobiles and the extreme service conditions of highly sophisticated

• industrial machines.

• HPCL has six lube blending plants at Mumbai, Kolkata, Chennai and the

• recently commissioned 60 thousand metric tonnes per annum capacity plant at

• Silvassa. HP Engine Oils are today the second largest selling brand.

• HPCL’s market now extends to count ries like Nepal, Sri Lanka, Bangla Desh,

• Saudi Arabia and Malaysia.

Industrial & Government Sales

• HPCL’s petroleum products cover numerous applications from automobile,

• aviation, marine and power plant fuels to being used in the manufacture of

• such as fertilizers, carbon black, jute, insecticides, cosmetics, edible oil, fabrics

• compact discs and medicines.

• HPCL is the second largest producer of bitumen in India with annual sales of

• more than 500 TMT.

• HPCL is the marine lube partner of Elf Lubricants, France, manufacturing and

• supplying the Elf brand of marine lubes.

• HPCL is one of the largest suppliers of fuel to state owned and Independent

Power Plants (IPPs).

Ten Aviation Service Facilities (ASFs) cater to the refueling requirements of

both domestic as well as international airlines. At Mumbai, both domestic and

international airports are directly connected to the refinery through a dedicated


Liquefied Petroleum Gas (LPG)

HPCL has over 24% of market share of LPG business in the country. HP Gas, the
HPCL brand of LPG, is bottled at 40 plants across the country with a total capacity of

1554 TMT per annum. The over 17 million LPG consumers of HPCL are serviced

through a nationwide network of over 1865 dealers.

Principles of management followed in HPCL are :

1) Division of work : It is followed in HPCL. Where the work is divided

among the members of the group based on th employee skills & talents .It
provides on oppurtunity to specialise in different sectors.

2) Authority : The excercise of authority in HPCL has well documented Limits of

Authority Manual, Purchase Manual, Chart of Accounts, etc, facilitating the
decision making process at various levels within the organization.

3) Discipline : HPCL is well organized company .The key steps followed in HPCL

• Strict compliance to attendance and reporting system

• Termination of illogical & un-justified practices

• Counseling & disciplinary measure for repeated insubordination

• Public admiration for disciplined and sincere workmen

• Disciplinary action for deliberate poor performance

• Discard of contractor’s deployment in workmen’s designated job

4) Unity of Command : It is commanded by head of the company and head of

the department.
5) Unity of Direction : Since HPCL is having different objectives and different
activities followed ,the unity of command is not supported.

6) Subordination of individual interests to group interests : In HPCL the

organizational interests dominate rather than individual interests.since it is
production sector ,individual interests are not preferred.

7) Renumeration : The wages & salaries must be and bring out the best
possible commitment in the employees to achieve the organizational goals.HPCL
is the company having very good in manpower and better facilities to their

8) Centralisation of authority : The authority is centralized and when

decision making powers are retained at the top level management.HPCL follows
the centralisation of the authority.one man heads all kind of work.In a functional
oragnisation,authority is centralised to a great extent.

9) Scalar Chain : It indicates the authority flows from top to bottom.HPCL is

the organization where the authority flows from top to bottom approach.

10) Order : HPCL is very good in human resources ,hence it follows the order in
their company to place right men to the right job.

11) Equity : The equity is followed in HPCL.

12) Stability of tenure of Personnel : people need time to learn jobs.since

HPCL is a company has stability of tenure where peopleare concentrated to a
particular function in the organization.

13) Initiative : The staff should be encouraged to show initiative with in the
limits of authorithy and discipline.

14)Espirit decorps : This means team work; implying that unity is

strength.the key features that the sucess lie in the teamwork believed by

• Effective Leadership

• Collaboration

• Transparency

• Sharing of responsibility

• Trust and appreciation

• Respect to each others views

• Free & fair sharing of information

• Cohesiveness

• Change Compatibility (Accept, adopt, assess change)

HPCL follows Strategic planning where it has long range plan and concerned with broad
objectives of the organisation.It focus planning and forecasting.

VISION : Vision 2020

To be a World Class Energy Company known for caring and delighting the customers with
high quality products and innovative services across domestic and international markets
with aggressive growth and delivering superior financial performance. The Company will
be a model of excellence in meeting social commitment, environment, health and safety
norms and in employee welfare and relations

"HPCL, along with its joint ventures, will be a fully integrated company in the
hydrocarbons sector of exploration and production, refining and marketing

 Imbibe high standards of business ethics and organizational values.

 Abiding commitment to safety, health and environment to enrich quality of

community life.

 Foster a culture of trust, openness and mutual concern to make working a

stimulating and challenging experience for our people.

 Strive for customer delight through quality products and services.

Intergrated In Energy Business

 Focus on domestic and international oil exploration and production business

 Provide value linkages in other sectors of energy business.

 Create growth opportunities and maximize shareholder value.

Dominant Indian Leadership

 Retain dominant position in Indian petroleum sector and enhance India's energy

Goal setting key features

S- Specific (Exact task & standard)

M-Measurable (Quantifiable Gauge stick for success)

A-Achievable (Realistic & Challenging)

R-Relevant (Corroborative to business objectives)

Time bound (Target time for completion)

E- Enterprising (Developmental initiatives & creativity)

R- Recorded (A self contract documented in specified format)

Goal setting Matrix

SBU Objectives Enhance Value & Growth Conscious Transform Domestic Market
Financial Productivity: Reduce cost/ Improve asset utilization Growth: Increase
Revenue/ Enhance
customer value
Customer Product/Service Attributes: Relationship/ Image:
Satisfaction Price/Quality/Availability/Functionality Service/Partnership/Bran
Internal Operations Customer Management: Innovation: Regulation & Social:
Process Management: Selection/Acquisition/Retention/ R&D/Design/ SHE/Employment/Community Welfare
Improvement Supply/Distrib Growth Launching
Learning & Growth Human Capital: Information Organization Capital: Culture/Teamwork/
Aptitude/Skill/Knowledge/Training Capital: IT Leadership/Alignment

• Petroleum Planning & Analysis CELL

Administration of subsidy on PDS Kerosene and domestic LPG

• Administration of Freight subsidy for far flung areas

• Maintenance of Information data bank and communication system to deal with

emergencies and unforeseen situations

• Analyzing the trends in the international oil market and domestic prices

• Forecasting and evaluation of petroleum import and export trends

• Operationalising the sector specific surcharge schemes, if any.

The services of PPAC will also be utilized to wind up the Oil Pool Account

Decision making Process:

The apex level decision making authority is the Board of Directors of HPCL, except for
matters which, as per the Companies Act 1956 are to be decided by the shareholders in
the Annual General Body Meeting. The Board has constituted several sub committees,
such as Committee of Functional Directors (CFD), the Audit Committee, the Investment
Committee, the HR Committee, the Investor Grievance Committee, etc. The meetings of
these committees are convened on need basis and the minutes of these meetings are
placed for information of the Board. Majority of the members of the Committees except
the CFD are independent Non-Executive of Government nominated directors with the
whole time directors playing a facilitating role.

The Corporation has constituted an Executive Council comprising of C&MD, the

Functional Directors and the Business Unit Heads. This Council discusses important
issues concerning the organization, analyse the same and recommend the ‘way forward’
in respect of matters discussed. The emphasis laid by this council is on team approach,
mutual support of functions and joint deliberations on issues which has enhanced further
the decision making process. It has thus facilitated an integrated thinking process and an
aligned approach across the Corporation for achieving the Corporate Vision.

Exercise of Authority:

The Corporation has well documented Limits of Authority Manual, Purchase Manual,
Chart of Accounts, etc, facilitating the decision making process at various levels within
the organization.

Limits of Authority Manual:

LAM, as it is called, lays down the authorities that can be exercised at various levels, i.e.
the Board, Committee of Functional Directors, the Executive Committee, the Contracts
Committee, the Bids Committee and also the senior individual positions, etc. for different
activities of the Corporation. The manual is divided into segments representing different
functions like Sales, Crude & Shipping, Capital Projects, Operations & Distribution,
Finance, HR etc., and provides for a decision making process through various committees
as above, represented by inter-functional groups including Finance. This ensures a
transparent and streamlined decision making process adhering to the laid down systems
and procedures and thereby leaving no room for arbitrariness.

The Committee of Functional Directors has delegated further powers to various sub-
committees within the organization, viz., Contracts Committee, Bids Committee, Credit
Committee etc.


Board of Directors

General Managers
Deputy General Mangers

Departmental Heads

First Line


Facilitating Factors of decision making :

• Uniform Objective perception

• Listening
• Honor others view
• Assertiveness
• Resource identification &usage modality
• Logical discussion
• Verification validation of consensus
• Unitized process orientation

The decision making process is hierarical model.where the decision are taken from
top to bottom approach.Management Information system tries to handle the
organizations’s information system through a computer.It offers vital information to
managers so that they can carry out operational control,management control and
strategic planning successfully. Usefulness of MIS at various levels

Long Term Strategic

Needs Planning Top

Management control
Short Term Middle Level
The norms set for discharge of functions

The entire organizational functioning is basis the down delegation of authority at

appropriate levels and measures to the individual officers. Several documented
manualised instructions have been developed and approved by the Board of Directors,
for the discharge of functions by the officers of the organization.Further guidelines issued
by the Government of India, through the applicable departments, and Central Vigilance
Commission, Central Information Commission from time to time are also followed. The
guidelines issued by SEBI, Central Vigilance Commission, Stock Exchange listing
agreements also aid in the discharge of the functions.


Hindustan Petroleum Corporation Limited (HPCL) is a Government Company within the

meaning of Section 617 of the Companies Act 1956.HPCL is a Central Public Sector
Undertaking, with a subscribed capital of Rs. 339.33 Crores. The President of India is
presently holding 51.01 % of the paid share capital,the remaining shares being held by
various Financial Institutions, FIIs, Banks, Mutual Funds, NRIs and general public
including employees of the Corporation.

The shares are listed on BSE / NSE and are actively traded.

HPCL is one of the largest integrated Public Sector Undertaking, engaged in the business
of refining Crude Oil and marketing of various petroleum products like Petrol, Diesel,
LPG, Kersoene, Lube Oils, Asphalt, branded products like Power, Turbojet, naphtha, ATF
(Aviation Turbine Fuel) throughout India and at select foreign countries. Some of these
products are exported to other countries. HPCL has focused on its business throughout
India by segmenting its business outlook into Retail (Petrol Pumps), LPG, Industries &
Commercial (Bulk Fuels supplies to industries, ships), Lubes, Aviation, Refineries etc,
with support from the shared services like Finance, Company Secretary, Human
Resources, Public Relations, Legal etc.

HPCL owns and operates two refineries situated at Mumbai and Visakhapatnam,
which processed – 7.42 MMT & 9.24 MMT of crude respectively for the FY 2006-2007
. Capacity augmentation program is under execution. The 4 zonal offices at Mumbai,
Delhi, Kolkata & Chennai, in addition to 91 Regional Offices, 37 major Terminals /
Installations / Tap Off Points, 7 Lube Blending Plants, 71 Depots, 42 LPG Bottling Plants,
2 LPG Import Facilities, 8068 Petrol Pumps,77 CNG Pumps, 72 Auto LPG Pumps 2308 HP
Gas LPG Distributors serving 2.44 Crores LPG Customers, 1648 SKO / LDO Distributors,
59 Lube CFA spread over in the various states of India, ensure that the customers can
approach their nearest location for getting their requirements. In addition HPCL has 16
Aviation Service Stations spread over India, to cater to the Airline industry.

HPCL is managed by a Board of Directors. Presently there are 11 Directors, with the
Chairman and Managing Director as the head of the Corporation. The Board
comprises of 4 Whole time Directors also called Functional Directors – Director
Marketing, Director Refineries, Director Human Resources, Director Finance. In
addition, 2 part time Directors representing Government of India, through Ministry
of Petroleum & Natural Gas, 4 part time Independent Directors, also called Navratna
Directors are on the Board. All these 6 Directors are nominated by the Government of

The Board of Directors is assisted by Executive Directors, General Managers and other
Officers / employees in carrying out the day-to-day functions of the Corporation.

Organizational structure of Hindustan Petroleum

Chairman & Managing


Director(Marketin Director(Refinerie Director(Financ Director(Hum

g) s) e) an

Direct Director

Chief Executive Executive Executive

vigilance Director Director Director


GM GM(finan GM GM GM GM(human
(refineries) ce) resources)

Regional Operation Marketing HR
manger Manager manager manager

Staff Recruitmen
Production Sales
(clerk,supervi t team
Team executive
(different regions)

Organizational structure of refinery sector


Executive Director Executive Executive Director

(crude &supplies) arycoordianti (Mumbai
on) refinary)

General General
General Manager Manager
Manager Manager
Direct sales


Since HPCL is formal organization ,controlled by the government.In HPCL responsibility

and accountability will be together. It is working with a specified organization policy.
HPCL follows the hierarical flow of authority.It has ethically sound policies and work
always for the worth use of customers . In HPCL coordination ,communication, tradition
culture values are taken very care . It has very good training in structure.

Departmentation : In HPCL departmentation is followed by function. The basic aim

of functionalisation is to simplify by grouping all the work to be done into major
functional departments.It helps to orient towards a special activity and concentrate
competence in particular ways . Functional relationship subjects manager to multiple
supervision. The process of departmentation can take place with all the three types of
authority: line , staff and functional .

Line and Staff Relationships : since HPCL is functional organisation where line
authority, staff authority and functional authority exist together.Functional authority is a
limited form of line authority givent to functional experts over certain specialised
activities under the normal supervision of mangers belonging to other departments.
Managers have right to issue directives on matters which they don’t have direct line

Matrix organisation structure : In HPCL organisation structure is matrix

organization structure. since HPCL has different sectors and products which can be
organized effectively.And sector is organized by the top authority to balance the power .
In HPCL ,the roles projects and functional manager are clearly defined.since it is a big
organization this matrix organization helps to achieve long term goals in an efficient


Staffing is the process of matching the jobs with capable people.It is concerned with the
.selection,placement ,growth and development of people in an organisation

HR Vision

To attain organizational excellence by developing and inspiring the true potential of

company’s human capital and providing opportunities for growth, well being and

HR Mission

"To create a value and knowledge based organization by inculcating a culture of learning,
innovation & team working and aligning business priorities with aspiration of employees
leading to development of an empowered, responsive and competent human capital".
HR Objectives

1. To develop and sustain core values

2. To develop business leaders for tomorrow.
3. To provide job contentment through empowerment, accountability and responsibility
4. To build and upgrade competencies through virtual learning, opportunities for growth
and providing challenges in the job
5 To foster a climate of creativity, innovation and enthusiasm
6. To enhance the quality of life of employees and their family
7. To inculcate high understanding of 'Service' to a greater cause HR Vision, Mission &

HR Strategy

1. To meet challenging demands of the business environment, focus of the HR Strategy

is on change of the employees' ‘mindset’
2. Building quality culture and resources
3 . Re-engineering and redeployment for maximizing utilisation of HR potential
4. To build and upgrade competencies through virtual learning, opportunities for growth
and providing challenges in the job
5. Re-strengthening mutual faith, trust and respect
Inculcating a spirit of learning & enjoying challenges
6. Developing Human Resource through virtual learning, providing opportunities for
growth ,inculcating involvement and exposure to benchmarking in performance

Role Of HR
1. Alignment of HR vision with corporate vision
2. Shift from support group to strategic partner in business operations
3. HR as a change agent
4. Enhance productivity and performance by developing employee competency and
5. Developing professional attitude and approach
6. Developing ‘Global Managers’ for tomorrow to ensure the role of global playe

Human Resource Management : In HPCL HR department is ensuring focus in

enhancing the capabilities of the employees of the corporation to rise up to the emerging
challenges in the oil sector.Towards this training and development receives continuous
attention to our endeavour to be a learning organization. HPCl is very good at human
resources and has a total of 10891 employees as of 31.03.2007

Group Total # of # of Women

employees employees
A 4074 277
B Nil Nil
C 6619 422
D 198 9
Total 10891 708

Human resource Panning is a forward looking function for HPCL where to assess
manpower requirements in advance keeping the production schedules, market
fluctuations,demand forecasts,etc in background.

Recruitment :

By and large, the recruitment in Management Cadre is made in entry level

positions. Applications are invited from bright, result-oriented, young and energetic
persons with good initiative through open advertisement

Campus Recruitment:

HPCL also visits Engineering & Management Institutes for campus recruitment of

• Engineers – From IITs,NITs, etc.

• MBAs – Premier Management Institutions

• Chartered Accountants – Institute of Chartered Accountants of India (ICAI).

All Officers are entitled to other applicable benefits:

• Contributory Provident Fund

• Contributory Medical Insurance Scheme

• Group Savings Linked Insurance Scheme

• Group Personal Accident Insurance Scheme

• Gratuity and are members of the HPCL Employees Superannuation Benefit Fund

• DA, HRA, Conveyance etc.

• Benefits like Furniture Loan, Vehicle Loan, Housing Loan, Medical, Home
Lease etc. are also available to Officers satisfying minimum service criteria.

TRAINING AND DEVELOPMENT : The training programs offered in HPCl are

• Strategic Brand Management

• Effective Negotiation skill
• Refinery Orientation
• Business Games : Strategy Simulation
• Certified Energy Manager

HR policies at HPCl revolve around the basic tenet of creating a highly motivated, vibrant
& self-driven team. The Company cares for each & every employee and has in-built
systems to recognise & reward them periodically. Motivation plays an important role in
HR Development. In order to keep its employees motivated the company has
incorporated schemes such as Reward and Recognition Scheme, Grievance Handling
Scheme and Suggestion Scheme.

It is a fact that human displays best performance under pressures, but that should be
relevant and unidirectional and must be generated by humans own system.

The technique of making human to act on self-generated pressure is called “Motivation”

“Motivation is ignition to capability system, which has potential to earn huge benefit with
almost no cost incur”.
Present the assignment as prize not as punishment
No negative criticism
No comparison of capabilities
Immediate appreciation on good achievement
Sharing of responsibilities
Trust levels build up by effective communication
Project a positive conclusion

Behavior Mapping

It is of paramount importance to understand the behavioral profile of individual team

members to form a balanced Team. There are many tools are available but use of DISC
measure is one among the most effectives.

There are four tendencies in DISC profile

D- Dominance- Inclination towards suppressing opposition to meet goal

(Seek power authority, honor instant result, accept challenges, decisive, pick up
authority, manage conflict, and prefer freedom)- Illogical & Unethical Dominant attitude
generates grievance & unrest which are harmful for team bonding.

I- Influence- Try to reach goal by influencing or convincing others.

(Contacting &impressive, reasonably lenient, amicable, motivating, assertive and

optimistic, enterprising and social) – The approach must be tactical, time bound task
focused and shall not be carried away by personal feeling of individuals.

S- Steadiness – Rely upon untiring cooperation get the solution

(Consistent, develop expertise, helping, loyal, good listener, good pacifier stick to rules,
norms, avoid conflict, avoid risk & change)- Attitude is well supportive for performing
stage but poor contributor during forming, storming and norming stages.

C-Conscientiousness—Work conscientiously in the domain of constant environment to

ensure quality.
(Systematic and sticks to standard and procedures, diplomatic in handling conflicts,
strive for quality ,accuracy, prefer analytical approaches, clarity, controlled
methodologies ,performance savvy , Cautious, make appreciation) – Good executing
attitude but not participative in imprudently change management.

LEADERSHIP QUALITIES : The Leadership qualities that are followed in HPCL


1. Innovative and Creative

2. Customer Orientation

3. Stop managing , start leading and cultivate managers


The Corporation believes that the key to organisational excellence is human resource
development. It has around 11,500 employees and its policies are employee oriented.
HPCL's performance appraisal system ensures growth based on merit as well as seniority.
It has a residential training institute at Nigdi near Pune and it has always been the
Corporation's endeavour to constantly upgrade the skills of its personnel.


HPCL has undertaken a Business Process Re-engineering (BPR) study with the
assistance of M/s. Arthur Andersen & Associates to sharpen the Corporation's
competitive edge in critical areas of operations, and specially the challenges arising out
of deregulation of the Petroleum Sector, to make the organisation more responsive to
market requirements and to update information technology for quicker decision making.
The conclusions of the BPR study have been accepted by the Management and are under
implementation in all major areas of activity. The exercise includes :

• Creation of 4 Strategic Business Units (SBUs) within Marketing - Lubricants,

Retail, I&G and LPG.
• Development of an action plan to reposition and strengthen the Lubricants
• Decentralisation of the purchase function to SBUs to quicken purchase process.
• Broad banding of various positions, to allow greater continuity and development
of expertise.
• Delayering/flattening the organisation to quicken decision making process.
• Enterprise Resource Planning (ERP) system to meet the long-term information
technology needs of the Corporation. HPCL has kept itself abreast with the
developments in the field of Information Technology, deploying state-of-the-art
computers and systems for its activities.
o It has installed computers at over 250 locations and developed various
applications including on-line transaction processing systems at very
remote locations.
o It has also installed computer networks at its administrative offices,
refineries and its major locations to share information among the
personnel at these locations for responses.
o It is in the process of implementing a voice and data network connecting
over 22 sites at 5 cities, to provide instant access to information available.
o It also plans to set up usage of applications like Interactive Voice Response
Systems for LPG cylinder booking and the use of the Internet to provide
access to the public to Corporate Informations.


HPCL, as part of its social commitment, assists in community welfare programmes for
uplifting the weaker sections of the society. The major socio-economic welfare oriented
activities include various income generating schemes, vocational training, scholarships
for SC/ST students, drinking water facilities, health and family welfare camps and
distribution of free medicines, etc.

HPCL bas always taken keen interest in the protection, preservation and improvement of
the environment. Environment protection efforts begin at the planning and design stage
of new projects by incorporation various measures for ensuring minimal impact on the
environment. Environment Management also covers development of environment-
friendly technologies, tree plantation and implementation of energy conservation and
environment improvement projects. Both Mumbai and Visakhapatnam Refineries have
already implemented various environment protection projects. The recently introduced
NMP technology, developed by Mumbai Refinery and Indian Institute of Petroleum, in the
hexane plant is but an illustration of our commitments to strive for newer ways to
protect the environment. Also, other environmental projects like diesel hydro-
desulphurisation, continuous stack monitors, co-boiler are under implementation.