INDUSTRIAL VISIT REPORT

ON

“Organization structure”
SUMMITED BY:
Deep Gaur
B.B.A. 3rd Sem.
Roll no.1705465071016
Sub.code:307

ALIGARH COLLEGE OF ENGINEERING AND TECHNOLOGY,

ALIGARH
AFFILATED BY B.R. AMBEDKAR , UNIVERSITY
 ACKNOWLEDGEMENT

I am thankful to all the teacher of department BBA of Aligarh College of

Engineering & Technology. This Industrial visit would never have seen the
light way without the help, guidance that I have received.

I would like to express my unfeigned appreciation to teacher department of

Business Administration and all the teachers for their great cooperation to
complete our industrial visit. I also common with the holy name of
benevolent and beneficial God who enables me to complete my work.

Finally, I am thankful to my parents and friends for their encouragement.

 PREFACE

The bookish knowledge of any program, which we get from educational

institutions, is not enough to be used in our day-to-day life. The more practical
knowledge we have, the more beneficial it is for our learning.
To make the students aware of the working of the business world every
student of BACHELOR OF BUSINESS ADMINISTRATION (3rd
Semester) has to undergo a major research project where I experiences many
aspects of business under the supervision of Professional Managers.
 Content

S.No. Particulars Pg.No.

1. Topic 1
2. Introduction 2-8
3. Organization Design and Structure 8-19
4. Functions Departments, Managers and 20-29
Hierarchy
6. System of Accounting Followed 29-35
7. Career Planning Formation Policy 35
8. Training Measures 35-38
9. System Followed for Purchase of Materials 39
10. HRD Measures 39-40
11. Mane Power Planning 40
12. Performance Appraisal System 40-41
13. SWOT Analysis 41
14. Objective 42
15. Conclusion 43
16. Bibliography 44
“Organizatio
n structure”
INTRODUCTION
The Company was incorporated on 30th June 1959, under the name and style of the Indian
Oil Company, Ltd. With a view to coordinating the activities of the Indian Refineries, Ltd.,
and Indian Oil Company, Ltd., the two were amalgamated on 1st September, 1964, to form
a new corporation, the Indian Oil Corporation Ltd. In 1960 Indian Refineries, Ltd., was
merged with the Company. The capital after amalgamation was Rs 34,97,25,000. In
November 1962, the Corporation signed an agreement with Mobil Petroleum Co., Ltd.,
New York, for setting up of two blending plants in Calcutta and Mumbai.

Indian Oil Corporation Ltd (IOCL) is India's flagship national oil company with business
interests straddling the entire hydrocarbon value chain - from refining pipeline
transportation and marketing of petroleum products to exploration & production of crude
oil & gas marketing of natural gas and petrochemicals. The company is the leading Indian
corporate in the Fortune 'Global 500' listing ranked at the 168th position for the year 2017.
IOCL is a public sector undertaking. Government of India held 56.98% stake in IOCL as
on 31 December 2017.The company's operations include refineries pipelines and
marketing. Their portfolio of brands includes Indane LPGas SERVO lubricants
XTRAPREMIUM petrol and XTRAMILE diesel and Propel Petrochemicals. In exploration
and production Indian Oil's domestic portfolio includes 11 oil and gas blocks and two coal
bed methane blocks while the overseas portfolio consists of 10 blocks spread across Libya
Iran Gabon Nigeria Timor-Leste Yemen and Venezuela. Indian Oil Corporation Ltd was
established in the year 1959 as Indian Oil Company Ltd. In the year 1964 Indian Refineries
Ltd merged with Indian Oil Corporation Ltd.

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Indian Oil Blending Ltd a wholly owned subsidiary was merged with Indian Oil on May
2006.
The company transferred their entire equity holding in Indian Strategic Petroleum Reserves
Ltd (ISPRL) to the Oil Industry Development Board a government body functioning under
the Ministry of Petroleum & Natural Gas. Consequently ISPRL ceased to be a wholly
owned subsidiary in May 2006. The company formed one subsidiary company namely IOC
Middle East FZE in Jebel Ali Free Trade Zone Dubai with the objective of marketing
lubricants and other petroleum products in Middle East Africa and CIS regions. In June
2006 they incorporated a joint venture company namely Indo-Cat Pvt Ltd with Intercat.Inc
of USA for manufacture and marketing of FCC catalysts and additives.In the year 2007 the
company received plenty of awards Oil Industry Safety Directorate Awards 'Most Admired
Retailer of the Year' award 'CIO 100 Award 2007' SAP ACE - Awards for Customer
Excellence and the only petroleum company as 'The Most Trusted Brand' in ET's Brand
Equity's annual survey. The SERVO acquires prestigious MAN Global approvals Indian
Oil's R&D Centre gets special recognition for Bioremediation and also SERVO secures
entry into NSF White Book - H1 Category during the period. The company won Retailer of
the Year - Rural Impact Award and their XtraPower won Loyalty Summit Award during
the year 2008.In January 2008 the company and Hindustan Unilever Ltd (HUL) signed an
MoU for setting up Kwality Walls Kiosks at select Indian Oil petrol stations across the
country. Also the company entered into an MoU with Transparency International India
(TII) for implementing an Integrity Pact Programme focused on enhancing transparency in
their business transactions contracts and procurement processes. In April 2008 the company
launched 'LNG at Doorstep' facility at the Pen unit of H&R Johnson the facility first of
their kind in the country which are primarily aimed at catering to the needs of Liquefied
Natural Gas (LNG) customers who are not located on the main natural gas pipelines. The
company was conferred with the 'Maharatna' status by the Government of India which
provides enhanced autonomy and larger flexibility for its operation.During the year 2009-
10 the company commissioned 238 new retail outlets and 414 Kisan Seva Kendra (KSK)
outlets taking their total tally to 18643. The company's Indane LPG brand earned the
coveted status of 'Superbrand'. On the lines of KSK the Rajiv Gandhi Grameen LPG
Vitarak Yojana was launched to penetrate rural markets. During the year the company was
granted the Petroleum Exploration License for one of the two Type-S blocks in Cambay
basin for which it is the operator.

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Upon getting the license exploration activities were initiated in the block. The company
was awarded a project for the development extraction upgradation and marketing of heavy
oil in Carabobo heavy oil region of Venezuela in consortium with Repsol Petronas ONGC
Videsh Ltd. and Oil India Ltd.During the year 2010-11 the company enrolled about 46.8
lakh new Indane LPG customers and commissioned 245 new Indane distributors taking
their total to 618.3 lakh and 5311 respectively. The LPG Bottling capacity was enhanced to
5518 TMTPA with capacity addition of 326 TMT. In order to provide LPG to rural India
the company commissioned 145 distributors under the Rajiv Gandhi Gramin LPG Vitaran
Yojana under the auspices of Ministry of Petroleum & Natural Gas. As a part of their CSR
activity 10052 new connections were released to BPL families.During the year the
company formed a joint venture company was formed with Nuclear Power Corporation of
India Ltd (NPCIL) for setting up Nuclear power plants. In July 2010 the company
commissioned their first gas pipeline between Dadri and Panipat and thus they commenced
gas supplies to Panipat Refinery. The company in consortium with GSPC HPCL and BPCL
won gas pipeline bids for Mallavaram to Bhilwara and Vijaypur via Bhopal Mehsana to
Bhatinda and Bhatinda to Jammu and Srinagar.In 2012 Oil India Limited (OIL) and Indian
Oil Corporation (IOCL) jointly acquired a stake in Carrizo's liquid rich shale assets in the
Niobrara basin in Colorado USA. Indian Oil (IOC) also launched a new engine oil SERVO
4T SYNTH with advanced synthetic chemistry for use by two-wheelers. Petroleum &
Natural Gas and Corporate Affairs launched IOCL's Mobile Healthcare Scheme a
Corporate Social Responsibility (CSR) initiative of IOCL. Indian Oil Corporation's (IOCL)
Rural Mobile Health Scheme (Sachal Swasthya Seva) launched as part of its corporate
social responsibility (CSR) agenda was formally inaugurated on all-India basis. In 2013
IOC planned for capacity expansion at Doimukh depot and also IOCL inked MoU for Rs 5-
k cr natural gas terminal in OdishaIn 2014 IOCL conferred SCOPE Meritorious Award for
CSR and Responsiveness by the Hon'ble President of India. IOCL R&D also wins National
Awards for Technology Innovation -IOCL wins BML Munjal Award for Business
ExcellenceIn 2015 Indian Oil Corporation commenced construction work on its proposed 4
MW solar power project at Muttam village in the district. IOC also inked MoU with Nepal
Oil Corporation.The Board of Directors of IOCL at its meeting held on 29 January 2015
approved the laying of Paradip-Hyderabad product pipeline at an estimated cost of Rs 2789
crore.

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The board also approved construction of 0.6 MMTPA LPG Import Facility at Paradip and
augmentation of Paradip-Haldia-Durgapur LPG pipeline.The Board of Directors of IOCL
at its meeting held on 13 February 2015 approved the setting up of Ethylene Glycol Project
alongwith associated facilities at Paradip at an estimated project cost of Rs 3752 crore. The
project would help in consolidating the Glycol business of the company by producing low
cost Mono Ethylene Glycol based on FCC off gas. The board also approved construction of
dedicated Naphtha pipeline from Jaipur to Panipat alongwith augmentation of Koyali-
Sanganer product pipeline at an estimated cost of Rs 890 crore. The pipeline would help in
meeting the Naphtha requirement of IOCL's Naphtha Cracker Complex at Panipat.The
board also approved implementation of project for 100% BS-IV compliant MS and HSD
production facilities at Gujarat refinery at an estimated cost of Rs 1843 crore. The board
also approved implementation of project for 100% BS-IV compliant MS and HSD
production facilities at Barauni refinery at an estimated cost of Rs 1327 crore. On 27 April
2015 IOCL announced that it has started the process of commissioning its 15 MMTPA
state-of-the-art Paradip refinery. On 24 November 2015 IOCL announced that the first
consignment of products from its Paradip refinery comprising of High Speed Diesel
Superior Kerosene and Liquefied Petroleum Gas was dispatched on 22 November 2015.
The Board of Directors of IOCL at its meeting held on 13 August 2015 approved
investment of Rs 1000 crore in Non-convertible Cumulative Redeemable Preference Shares
to be issued by Chennai Petroleum Corporation Limited (subsidiary of IOCL) on private
placement preferential allotment basis.On 21 August 2015 Government of India announced
notice of Offer for Sale (OFS) of 24.27 crore equity shares of IOCL aggregating to 10% of
the total paid up equity share capital of the company through the separate window provided
by the stock exchanges for this purpose. The floor price for the OFS was set at Rs 387.On
31 December 2015 Indian Oil Corporation announced that it has entered into a binding Gas
Sale and Purchase Agreement (GSPA) with Petronet LNG Limited (PLL) for procurement
of an additional quantity of 0.3 MMTPA of RLNG with effect from January 2016. This is
in addition to the existing long term GSPA of 2.25 MMTPA which was executed in
September 2003. The Board of Directors of IOCL at its meeting held on 29 August 2016
recommended issue of bonus shares in the ratio of 1:1. The Board of Directors of IOCL at
its meeting held on 29 September 2016 accorded in-principle approval for expansion of the
refining capacity of Barauni Bihar refinery from 6 MMTPA to 9 MMTPA alongwith
downstream Polypropylene unit at an estimated cost of Rs 8287 crore.

5
The board also gave in-principle approval for implementation of Olefin Recovery Project
alongwith expansion of existing Naphtha Cracker Unit MEG revamp and Benzene
Expansion Unit modifications at Panipat at an estimated cost of Rs 1527 crore.Indian Oil
Corporation Limited (IOCL) Oil India Limited (OIL) and Bharat PetroResources Limited
(BPRL) through a joint venture company formed by their wholly-owned subsidiaries in
Singapore completed two transactions on 5 October 2016 viz. acquisition of 23.9% shares
of the charter capital of JSC Vankorneft a company organised under the laws of the
Russian Federation which is the owner of Vankor and North Vankor Field licenses from
Rosneft Oil Company (Rosneft) a National Oil Company of Russia and acquisition of
29.9% of the participatory share in the charter capital of LLC Taas Yuryakh
Neftegazodobycha (TYNGD) from LLC RN Razvedka I Dobychya a wholly-owned
subsidiary of Rosneft.

The definitive agreements for the Vankor transaction were signed in June 2016 and for the
Taas transaction in March 2016. In JSC Vankorneft post-closing of transactions Rosneft
will hold about 61.1% shares and ONGC Videsh Ltd (through its subsidiary) will hold the
remaining 15%. In TYNGD post-closing of the transaction Rosneft (through subsidiary)
will hold about 50.1% share and BP (through subsidiary) will hold the remaining 20%
share. Vankor field located in East Siberia is Russia's second largest field by production
and accounts for around 4% of Russian production. In 2015 the Vankor field produced 22
million tonnes of oil and 8.71 BCM of gas.

TYNGD is expected to ramp up the production of crude oil to 5 million tonnes by

2021.Indian Oil Corporation Ltd. (IOCL) NTPC Ltd. Coal India Ltd. (CIL) Fertilizer
Corporation of India Ltd. (FCIL) and Hindustan Fertilizer Corp. Ltd. (HFCL) signed a
Supplemental Joint Venture Agreement on 31 October 2016 for IOCL FCIL and HFCL
joining the Joint Venture Company Hindustan Urvarak and Rasayan Ltd. (HURL) which
had been formed by NTPC and CIL for revival of the fertiliser plants at Gorakhpur Sindri
and Barauni. Each of these plants will have 1.27 million tons per year Urea production
capacity. With the execution of the Supplemental JVA the equity participation of IOCL
NTPC and CIL in HURL will be 29.67% each (total 89.01%) and the balance 10.99% will
be by FCIL (7.33%) and HFCL (3.66%).Indian Oil Corporation Ltd. Bharat Petroleum
Corporation Ltd. and Hindustan Petroleum Corporation Ltd.

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Vision
Indian Oil nurtures the core values of Care, Innovation, Passion and Trust across the
organization in order to deliver value to its stakeholders.

Objectives:

To serve the national interests in the oil and related sectors in accordance and consistent
with Government policies.

To ensure and maintain continuous and smooth supplies of petroleum products by way
of crude refining, transportation and marketing activities and to provide appropriate
assistance to the consumer to conserve and use petroleum products efficiently.

To earn a reasonable rate of interest on investment.

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.

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 minimise/eliminate
their imports and to have next generation products.

To maximise utilisation of the existing facilities in order to improve efficiency and

increase productivity.

To optimise utilisation of its refining capacity and maximise distillate yield from
refining of crude to minimise foreign exchange outflow.

To minimise fuel consumption in refineries and stock losses in marketing operations to

effect energy conservation.

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 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.

To avail of all viable opportunities, both national and global, arising out of the
liberalisation policies being pursued by the Government of India.

To achieve higher growth through integration, mergers, acquisitions and diversification

by harnessing new business opportunities like petrochemicals, power, lube business,
consultancy abroad and exploration & production.

What is an organisation?
An organisation is a collectivity set up to pursue specific purposes by means of a formal
structure. There can be endless varieties of organisations by combining different purposes
with different structures. Organisations are needed everywhere- business, politics,
education, health, infrastructure for an all round economic growth. Organisation is a multi-
dimensional and complex body.
But most of them have common objectives like to economise, costs cutting and to
prioritise because of the problem of limited and scarce resources. It also includes
developing resource acquisition strategy, developing survival and growth strategy because
of the presence of competition, employment of staff and managing input of resources.
Therefore, there are a variety of management systems, practices and strategies.

Organisational Structure
It is the formal or quasi-formal network of reporting or control relationships in an
organisation and the powers and duties associated with each role in this network.
There are various hallmarks of an organisational structure which are the basics like
hierarchy of authority, division of labour, specialization by function and role specialization.
An organisation gets more formalised and complex as the organisation matures and
increases in size.

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There are various forms of organisational structure on the basis of hierarchy:-

Primitive/simple structure:

1. In this structure, there is a higher authority and various subordinated to do his/her

bidding.

2. This structure facilitates great flexibility since there is no formal specialization by

function. But there is low level of expertise and efficiency. This is the starting point
of young organisations.

Functional structure

1. As the organisation grows, greater role and functional specialization sets in and the
structure becomes a functional structure.

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 2. Some organisations retain this structure and some evolve into other structures
depending upon various factors.

This structure is favoured by companies which have more standardised output. When
outputs are custom-tailored, inter-dependant personnel are needed for effective
coordination between two different departments set up by the functional organisational
structure. This is also needed when output needs to be changed fairly rapidly in response to
rapid shifts in the market conditions.

Divisional structure

1. The organisation is sub-divided into smaller replicas of itself. It improves the co-
ordination vis-a-vis the outputs of the different divisions. It also helps in training
several General Managers to manage multi-functional organisations. But it leads to
duplication of staff and rivalry between divisions. Overall, the efficiency of the
organisation is increased.

Matrix structure

1. Coordinator, Inter-disciplinary team

This structure is a hybrid of function and divisional structures. In this the personnel are
allocated to specialized departments. Each project/job is turned into a sort of temporary
division consistency of complimentary staff and headed by a coordinator. There is
reassigning of jobs.
There are various disadvantages of this structure. The project coordinator has limited
authority over his staff. There are frequent conflicts and conflict resolution is not easy.
Then there are motivational problems. High levels of leadership skills are needed for the
head. Flexibility, adaptability and team spirit is required in staff.
But the plus point is the greater flexibility than other structures.

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Organizational structures vary by shape as well:-

Pyramid-like shape
There are only few people at top where the decision making power is concentrated and the
numbers increase towards the bottom.

Democratic shape
It is similar to pyramid shape except there is a Membership or board of representatives
above the pyramid which is responsible for taking major policy decisions. It resembles a
disc mounted over a pyramid. This type of structure is mostly seen in cooperative societies.
This type of structure is generally present in theory and not in practice.

Tall structures
The advantage of such a structure is that there is a small span of control for each position
and hence close supervision and interaction is possible as well as team spirit. But the
disadvantage lies in the fact that there are communication problems because of slow
circulation and distortion of information during the process. Growing organisations and
government units with lifetime employment sometimes end up having a tall structure for
promoting purposes.

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 In such cases new positions are created even though they are not needed. This leads to
managerial bottlenecks.

Flat structures
It leads to quick and accurate communication. But close supervision is difficult and
interaction is not inter-level. It is also difficult to build team spirit.

ORGANIZATION DESIGN & STRUCTURE

Indian Oil is India‟s flagship Maharatna national oil company with business interests
straddling the entire hydrocarbon value chain – from refining, pipeline transportation and
marketing of petroleum products to Research & Development, Exploration & Production,
marketing of natural gas and petrochemicals.
By venturing into the Renewables and the Nuclear Energy, the company has grown and
evolved itself from a pure petroleum refining and marketing company to a full-fledged
energy company. Indian Oil and its subsidiaries own and operate 10 of India‟s 22 refineries
and its cross-country pipelines network, for transportation of crude oil & finished products,
spans over 11,220 km is the largest in the country, meeting the vital energy needs of
consumers in an efficient and environment-friendly manner.

At Indian Oil, operations are strategically structured along the verticals -

1. Refineries

2. Pipelines

3. Marketing

4. R&D Centre and

5. Business Development

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For E & P, Petrochemicals and Natural Gas.
Each of these divisions have a different organisation structure specific to their own
functions. For e.g., the R&D centre is not as diversified as other divisions and therefore has
fewer number of departments and offices across the country.
Indian Oil follows a common hierarchy in all its departments across all the divisions like
refinery, pipelines etc.
CHAIRMAN

BOARD OF DIRECTORS

EXECUTIVE DIRECTOR

GENERAL MANAGER

DEPUTY GENERAL MANAGER

CHIEF MANAGER

SENIOR MANAGER

MANAGERS

DEPUTY MANAGERS

SENIOR ENGINEER/OFFICERS

ENGINEER/OFFICER

The different posts at Indian Oil are divided into grades which starts
fromengineer/officer which is Grade A till executive director which is Grade I.

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A new post of assistant engineer/officer has been added recently which is called Grade A0.
The Board of Directors including the Chairman is a government nominated body and has a
different structure.

THE BOARD OF DIRECTORS

The BOD is divided into Functional Directors and Independent Directors and the
Chairman.
At Indian Oil, operations are strategically strcutured along the verticals namely, Refineries,
Marketing, Pipelines, Research & Development and Assam Oil Division.
Each of these divisions have a different yet similar in some ways organizational structure
such that they complement each other. There is quite an amount of interaction between the
managers of these divisions.
The common feature between each division is that firstly, they are classified regionally
across India and there is a regional office that maintains other units in its jurisdiction. In
light of the technicality of operations at IOCL, there are different kinds of offices in each
region which will be better explained in the organizational structure of the Pipelines
Division. Each of the five divisions have been explained below.

REFINERIES
Born from the vision of achieving self-reliance in oil refining and marketing for the nation,
Indian Oil has gathered a luminous legacy of more than 100 years of accumulated
experiences in all areas of petroleum refining by taking into its fold, the Digboi Refinery
commissioned in 1901. The Refinery Division at IOCLis headed by the refinery
headquarters which is located in New Delhi. The highlights of the organizational structure
at Refineries Division are:-

1. The major departments functioning here are Shipping, Maintenance & Inspection,
Health,
2. Safety & Environment, Human Resource, Finance, Projects, Technical, and Materials
& Contracts.
3. The Head Office is spearheaded by the Director (Refineries), Deputy General Manager
and Executive Director.
4. The rest of the departments are headed by their respective Executive Directors or
General
Managers.
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5. There are 11 refineries functioning under the Head Office out of the 23 refineries in
india.
6. Each refinery is headed by an Executive Director under which there are General
Managers and Deputy General Managers working in various departments like Projects,
HR, P & U, and Instrumentation.
7. The Indian Oil refineries have an ambitious growth plan for capacity augmentation, de-
bottlenecking, bottom up gradation and quality up gradation.

MARKETING
Indian Oil has one of the largest petroleum marketing and distribution networks in Asia,
with over 43,000 marketing touch points. Its ubiquitous fuel stations are located across
different terrains and regions of the Indian sub-continent.

From the icy heights of the Himalayas to the sun-soaked shores of Kerala, from Kutch on
India's western tip to Kohima in the verdant North East, Indian Oil is truly 'in every heart,
in every part'.
Indian Oil's vast marketing infrastructure of petrol/diesel stations, Indane (LPG)
distributorships, SERVO lubricants & greases outlets and large volume consumer pumps
are backed by bulk storage terminals and installations, inland depots, aviation fuel stations,
LPG bottling plants and lube blending plants amongst others.

The countrywide marketing operations are coordinated by 16 State Offices and over 100
decentralised administrative offices.

Several landmark surveys continue to rate Indian Oil as the dominant energy brand in the
country and an enduring symbol for high quality petroleum products and services.

The heritage and iconic association that the brand invokes has been built over four decades
of commitment to uninterrupted supply line of petroleum products to every part of the
country, and unique products that cater not only to the functional requirements but also the
aspirational needs of millions of customers.

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 The Marketing division at IOCL is headed by the Head Office which is located in
Bandra East, Mumbai.

There are more than 20 departments that are functioning here like HR, Finance,
Shipping, Retail Sales, Consumer Sales, Law, Aviation, Lubes, Quality Control, Pricing,
Vigilance etc.

The Director (Marketing) heads the division with the Chief Executive Administrator.

Each department follows the common hierarchy:-

 ED

 GM

 DGM

 Junior Officers

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 The number of DGMs in various departments may vary, for e.g., there are 4 DGMs in
Aviation while 3 in Engineering and 2 in Health, Safety and Environment.

The regional classification of the division is best explained by the table below

REGIONAL OFFICES

Northern Southern Eastern Western

Punjab Tamil Nadu West Bengal Gujarat

Rajasthan Kerala Odisha Maharashtra

Uttar Pradesh-I Karnataka Bihar Madhya Pradesh

Uttar Pradesh - Andhra Assam Oil

II Pradesh Division

The GMs of the regional offices are responsible for coordinating with the head office as
well as the state offices.

RESEARCH & DEVELOPMENT

Indian Oil has a sprawling world-class R&D Centre that is perhaps Asia's finest. This
Centre is India's foremost commercial centre of research excellence in the areas of
lubricants, refinery processes, pipeline transportation, alternative fuels fuel additives,
engine testing, materials sciences and environmental sciences. The Centre holds 384 active
patents, including 233 international patents.
Located on a sprawling 65 acre campus in Faridabad on the outskirts of the National
Capital, Indian Oil's R&D Centre plays a key role in supporting the business interests of the
Corporation by developing economical, environmentally and socially responsible
technology solutions. With over 4000 lubricant formulations, the SERVO product line is
the hallmark of the vibrant and ongoing research at the Centre.

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The alternative energy programs of Indian Oil include Bioenergy, Solar Hydrogen / HCNG,
Synthetic fuels and Shale oil. The Centre is also focused on cutting edge research in the
areas of Nanotechnology, Petrochemicals and Polymers, Coal Gasification / Liquidation,
and Gas to Liquid.

AOD
The small town of Digboi in the remote north eastern corner of the country is the birth
place of the Oil Industry in India. Digboi Refinery, commissioned on 11th December 1901,
is India‟s oldest operating refinery and one of the oldest operating refineries in the world.
The historic Digboi Refinery has been termed as the "Gangotri of the Indian
Hydrocarbon sector.”

Earlier owned and operated by the Assam Oil Company Limited/Burmah Oil Company, it
came into the fold of the Indian Oil Corporation Limited by an Act of Parliament on 14th
October 1981 and became the Assam Oil Division of Indian Oil Corporation
Limited. Today, with its vastly modernized operations and facilities, Digboi Refinery is an
ISO - 9002, ISO 14001 and OHSMS 1997 accredited Refinery, manufacturing major
petroleum products and major specialty products. The marketing network has also been
modernized and strengthened and today, Assam Oil Division is proud that the Charging
Red Rhino has made its presence felt in other states like West Bengal, Orissa, Bihar,
Haryana and Rajasthan.

The refineries at the Assam Oil Division have undergone major changes to make the
operations more environment friendly. In the first phase of the Digboi Refinery
Modernisation Project (DRMP), a new crude distillation unit, captive power plant and
associated offsite facilities were installed and commissioned.
This was followed by the installation of a Catalytic Reformer Unit (CRU) in 1997 and
aNew Delayed Coking Unit (NDCU) in 1999. Digboi Refinery has thus made major
investments in incorporating technologies such as catalytic reforming for the production of
“green” fuels and eliminated use of harmful lead compounds in the production of motor
spirit.
It has adopted the use of the eco-friendly hydro finishing technology for treatment of
wax by installing a Wax Hydro finishing Unit (WHFU) in 2001 and thereby eliminated
the use of acid/earth finishing process. Two more major units are under commissioned –
these are the Solvent Dewaxing Unit (SDU) and Hydrotreater Unit (HDT).
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 On commissioning of these two units, the refinery would be in a position to produce a
larger quantity of wax through the SDU and also produce environmentally friendly “green”
fuels such as ultra-low sulphur diesel.

PIPELINES
In India‟s infrastructure, the petroleum pipelines form a crucial part enabling sustained
availability of petroleum products in all parts of the country for economic growth. The
pipelines transport petroleum products from refineries to demand areas and crude oil from
import terminals as well as domestic sources to the inland refineries. India being a vast
country, a wide network of pipelines becomes the paramount requirement of transporting
petroleum products to interiors from refineries and crude oil to the land locked refineries.

It is an established fact that pipelines are preferred as a cost effective, energy efficient, safe
and environment friendly method of transportation for petroleum products and crude oil
and are playing a leading role in meeting the demand for petroleum products in India.
Economic growth and expansion of infrastructure in India offer opportunities to better
utilize the existing pipeline network in addition to expand by constructing new pipelines.

Indian Oil, the pioneer in cross-country petroleum product pipeline in the Indian sub-
continent constructed and commissioned its first petroleum product pipeline, Guwahati-
Siliguri Pipeline in the year 1964. Since then Indian Oil has mastered the art and
technology of pipeline engineering. Over the last four decades the pipeline network of
Indian Oil has grown to 11,214 km. Various initiatives in the field of project management,
operations and maintenance including training in countries like Oman, Ethiopia, Kuwait
and Sudan have been undertaken. Today Indian Oil is well placed to provide seamless
services in the entire spectrum of petroleum pipelines covering

Techno-economic feasibility studies,

Design and detailed engineering,
Project execution,
Operations and maintenance,

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Organization structure of Indian Oil Pipelines:-

The whole of Pipelines division is headed by the pipeline headquarters office which is
located in NOIDA, UP.

Under the Head Office, Pipelines are divided into 4 segments

1. Northern region pipelines
2. Southern region pipelines
3. Eastern region pipelines
4. Western region pipelines

Each region has a regional office (Panipat, Chennai, Kolkata and Gauridad,
respectively) which is responsible for the unit offices/stations in their respective regions.

The division is headed by Director (Pipelines) who has a place at the Corporate Office
in New Delhi. The Pipeline head office directly reports to the director (pipelines).

The regional office is headed by an ED who is assisted by other junior managers and
officers. The regional office establishes contact with the PLHO for coordination and
control.

FUNCTIONS OF THE DEPARTMENTS AND THEIR MANAGERS AT

PIPELINES HEAD OFFICE
Located in the city of NOIDA, the pipelines head office is responsible for the entire
pipeline network in the country. The functions here are diversified and more
comprehensive than its subsidiary units. Let‟s look at the organizational structure of PLHO
more closely.
The major functioning departments here are
1. HR
2. Finance
3. Projects
4. Material & Contracts
5. Planning & Coordination

20
 HR
The major departments functioning under HR are Administrative, Personnel and Vigilance.
The following table better explains the comprehensiveness of the HR department (PLHO):-

The major functions of the departments are:-

1. Training
2. Interactive sessions with employees to promote interpersonal effectiveness and bring
down barriers to communication
3. Motivational work groups, discussion forums
4. Appraisal and reward system
5. Recruitment

The hierarchy in HR (PLHO):-Director (pipelines)

ED (HR)
DGM (HR)
CHRM
HRM
SHRO
HRO

Basic functions of DGM (HR)

1. To analyse report by the CHRM and forward to ED (HR).
2. Attend meetings
3. To review and suggest new norms for managing personnel, administration and vigilance
4. Internal training
5. Interaction with lower level managers

Policies and procedures followed in the HR department:

1. Transfer of employees to different departments as well as locations.

2. Medical benefits, Festival benefits, Insurance cover, Pension are provided.
3. Employees can spearhead CSR activities and will be recognized for the same.

21
.
 Finance
The finance department at IOCL (PLHO) is divided into the following departments:-
1. Payroll
2. Main account, Miscellaneous and Insurance
3. Concurrence
4. Taxation
5. Employee Payments
6. Bills Payments

The major functions of this department are:

1. Controlling expenditures and obligations (including operating expenses, debt, payroll)

2. Receipting and depositing all revenues.
3. Managing the investment of all monies.
4. Accounting for all assets and capital project expenditures.
5. Internal and external reporting.

The hierarchy in the department is:-

Senior Finance Manager

Chief Finance Manager

DGM (Finance)

Executive Supervisor

ED (Finance)

Director (Pipelines)

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 The DGM (Finance) is responsible for:-

Project appraisal, Concurrence of Materials and Works Prop including Tender Openings,
Estimate/CS checking, Integrity Pact MIS, Single Tender MIS, Plan/AF Budget,
Commitment Register, CAPEX and AF MIS.
EPCG and dealing with FTP issues, Taxation matters including Customs, Excise,
VAT/CST/C Form related issue, TDS returns and certificates, Export of service, FE
transactions, LC opening and adjective of Custom Duty.
Medical Claims Employees, PRMS and Hospital Bills Payments.
Domestic Sale of service, Purchase Bills, All Miscellaneous Bills including Service
Contract, BG Monitoring, Service Tax Matters and Service Tax Return.

Policies and procedures followed:

Matters requiring financial concurrence:-

1. All strategic issues placed before the Board for approval.

2. All capital and revenue Budget proposals.
3. Proposals of capital or revenue budget requiring re-appropriation.
4. Proposals for capital investment & Revised Capital cost, if any of the approved scheme.

In order to avoid duplication of jobs, the following shall not be within the scope of
financial concurrence and the initiating department/ agency shall be wholly
responsible for:-

1. Arithmetic accuracy of all calculations indicated in the proposals.

2. Factual accuracy of technical analysis and assumptions thereof as indicated in the
proposal.
3. Factual accuracy of technical, statutory requirements and their compliance like Explosive
Rules, Factory Act and Environmental Acts.

23
 Finance concurrence by another Finance Officer is not necessary if the proposal has
been cleared by Tender Committee, which included Finance representative, and the value
of the proposal is within the power of concurrence delegated to Finance representative.
In case of disagreement between the views of the concurring authority and approving
authority, the approving authority may over rule the advice of the concurring authority and
record the reasons in writing.
In cases where either the required financial concurrence is not taken or the intimation
regarding the over ruling of the advice of the concurring authority is not brought to the
notice of the authority one level higher than the approving authority, such approvals shall
not be considered as approval.

Projects
The project department at IOCL (PLHO) is responsible for handling the upcoming and
ongoing projects at the various regional pipelines. Some examples of project management
at IOCL Pipelines are:-
Detailed design, engineering of mainline, stations, offshore terminals, tank farm,
cathodic protection, etc.
Detailed design, engineering of mainline, stations, offshore terminals, tank farm,
cathodic protection, etc.
Engineering, Procurement and Construction (EPC) services for implementation of
Pipeline Projects Instrumentation, dedicated telecommunication system including optical
fibre communication and Supervisory Control And data Acquisition system

There are 8 departments under projects:-

1. Technical & Instrumentation
2. Electrical
3. Civil
4. Construction
5. Mechanical
6. CAD work station
7. Gas
8. Systems
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 The hierarchy followed here is:-
Director (Pipelines)

ED (PJ)

GM (PJ)

DGM (PJ)

Chief Projects Manager

Senior Projects Manager

Projects Manager

Deputy Projects Manager

Functions of the DGM (Projects):-

1. To provide guidelines for implementation of teams and advice to junior managers and

officers of various business units.

2. Developing and implementing a consistent and standardized process of managing several

projects according to a chosen methodology.

3. Conducting project management office training that allows improving competencies and

skills of project managers and team leaders.

4. Work on projects from a single, centralized office.

5. Give teams pieces of advice regarding project management best practices.

6. Using specialized software for successful project management implementation.

25
 Policies and procedures followed:-

1. All project operations is approved by the authority one level higher than the authority
responsible for the project.
2. All projects need to follow the Health, Safety and Environment norms which are set
according to Ministry of Petroleum & Natural Gas.
3. The decision of the approving authority will be final. However, any concerns can be
taken to the BOD.
4. The materials bought for the construction of new projects will be through the Materials &
Contracts Departments.

Materials and Contracts

The M&C department is responsible for:-
Maintaining a constant flow of inputs/raw materials.
maintaining the quality and the quantity
reviewing tender of raw materials
signing contracts
reviewing bidding for the contract

System followed for purchase of materials

In case where detailed engineering specifications are not worked out by the Department
or the specifications are not comprehensive/well defined, and the scope involves design
work also to be done by the bidet, a system of two-part tendering shall be adopted.
Two bid system to be followed if the estimated value of the procurement is more than
Rs 25 Lakh.

However, indenters/Materials department consider it necessary to issue the enquiry

under two bid system, two bid system can be followed irrespective of any value limit.

26
 Under two-bid system, the tender enquiry shall clearly specify that the quotations
shall be received in two separate covers one containing all details of the tender viz.
specifications, delivery schedule and other commercial terms and conditions except price
and other containing all the details together with the price. The priced bid and unpriced bid
shall be identical in all respects excepting that only the “priced bid” shall contain prices.
The “unpriced bid” should not contain any prices or indication thereof in any manner
whatsoever. Both the sealed covers shall superscribed “unpriced bid” and “priced bid” as
the case may be along with the tender enquiry number and both the offers shall be placed in
one single sealed cover.

The department has the following hierarchy:-

Director (Pipelines)

ED (M&C)

GM (M&C)

DGM (M&C)

Senior Material Manager

Materials Manager

Senior Materials Officers

Functions of DGM (M&C)

1. Coordinating with higher managements decisions
2. Forwarding daily report to higher management
3. Reviewing tenders for contracts
4. Reviewing the two bid system
5. Interacting with junior managers

27
 Policies and Procedures followed:-

All expenditure incurred on procurement of materials, capital or revenue nature is to be

regulated in accordance with the procedure prescribed in this manual.
The power to sanction expenditure in respect of procurement is subject to a provision in the
approved budget.
For various stages relating to the incurring of expenditure and dealing with matters arising
out of procurement contracts, financial limits have been prescribed in the delegation of
powers.
Subject to specific exceptions permitted under the procedure, no expenditure on the
procurement can be incurred unless the work is administratively approved, and a detailed
estimate is prepared, technically approved by the authority empowered to do so checked
and concurred by the Finance as per DOA.

Planning and Coordination

This department is also called Operations and it is responsible for
Handling the entire pipeline operations of Indian Oil spanning the country.
Maintaining pipeline throughput
Uninterrupted crude oil and petroleum product supply to refineries and marketing
demand centres as per requirement of stakeholders.
Looks after marine as well as air fuel operations
Improving relationship and cooperating among oil companies
Analyses transit/ocean losses and serves remedil measures, quality control etc.

The hierarchy followed here is:-

Director (pipelines)
ED (O)
GM (O)
DGM (P&C)
Chief Manager (P&C)
Manager (P&C)
Senior Engineer (P&C)

28
 Functions of DGM (P&C):-
1. In charge of the P&C department, coordinating activities of the department.
2. Attending meetings like BPO, PMC, and IDCM etc.
3. Communicating Daily Operation report to GM (O), ED (O) and Director (Pipelines).
4. Coordinating with Marketing, Refinery and Corporate office for issues related to
pipelines.
5. Audit reply.
6. Operation philosophy of new pipelines.
7. Reply to Ministry/Parliamentary questions.
8. Coordinating with units.
9. Preparation of pipelines MOU and stretch targets.
10. DRA procurement for pipelines.
11. Any other activity as directed by seniors.

Policies and procedures followed:-

1. Data on Product Wise Pumping Figure, Shut Down Details with reason, Crude Tanker
Berthing Status, Crude Stocks Availability to be sent on daily basis on all working days in
forenoon.
2. Reconciled data on Monthly Reports on Pumping & Shut Down Details to be sent on
monthly basis by 20th/25th of next month.
3. Highlights for Annual Reports to send by end of next month.
4. Reminder for highlights/annual data to send by 16th of April.
5. Preparation of Annual Highlights & Annual Operation data to send by end of July.

SYSTEM OF ACCOUNTING FOLLOWED

1. BASIS OF PREPARATION
1.1 The financial statements are prepared under historical cost convention in accordance with
the mandatory accounting standards specified under Section 133 of the Companies Act, 2013,
read with Rule 7 of the Companies (Accounts) Rules, 2014.

29
 1.2 The preparation of financial statements requires the management to make estimates and
assumptions that affect the reported amount of assets, liabilities and disclosure of contingent
liabilities as at the date of the financial statements. Management believes that these estimates
and assumptions are reasonable and prudent. However, actual results could differ from
estimates.

2. FIXED ASSETS

2.1 Tangible Assets

2.1.1 Fixed Assets are stated at acquisition cost less accumulated depreciation / amortization
and cumulative impairment.

2.1.2 Land acquired on perpetual lease as well as on lease for over 99 years is treated as free
hold land.

2.1.3 Land acquired on lease for 99 years or less is treated as leasehold land.

2.1.4 Technical know-how / license fee relating to plants/facilities are capitalised as part of
cost of the underlying asset.

2.2 Construction Period Expenses on Projects

2.2.1 Revenue expenses exclusively attributable to projects incurred during construction

period are capitalized. However, such expenses in respect of capital facilities being executed
along with the
production/operations simultaneously are charged to revenue.

2.2.2 Financing cost incurred during construction period on loans specifically borrowed and
utilized for projects is capitalized on quarterly basis up to the date of capitalization.

Financing cost, if any, incurred on General Borrowings used for projects is capitalized at the
weighted average cost. The amount of such borrowings is determined on quarterly basis after
setting off the amount of internal accruals.

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2.3 Capital Stores

2.3.1 Capital stores are valued at cost. Specific provision is made for likely diminution in
value, wherever required.

2.4 Depreciation/Amortization

2.4.1 Cost of leasehold land for 99 years or less is amortized over the lease period.

2.4.2 Cost of tangible fixed assets (net of residual value) is depreciated on straight-line
method as per the useful life prescribed in Schedule II to the Companies Act, 2013 except in
case of following
assets where useful life is considered based on technical assessment:
a) Useful life of 15 years for Plant and Equipment relating to Retail Outlets (other than
storage tanks and related equipments) and LPG cylinders & pressure regulators
b) Useful life of 25 years for solar power plant/solar panels Depreciation is charged pro-rata
on quarterly basis on assets, from/up to the quarter of capitalization/ sale, disposal/ or
earmarked
for disposal. Residual value is considered between 1% to 5% of cost of assets.

2.4.3 Assets, other than LPG Cylinders and Pressure Regulators, costing up to Rs. 5,000/-
per item are depreciated fully in the year of capitalization. Insurance spares are depreciated
up to 100% over the remaining life of the main asset.

2.4.4 Expenditure on the items, ownership of which is not with the Company are charged off
to revenue in the year of incurrence of such expenditure.

2.5 Intangible assets

2.5.1 Technical know-how / license fee relating to production process and process
design are recognized as Intangible Assets and amortized on a straight line basis
over a period of ten years or life of the underlying plant/ facility, whichever is
earlier.

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2.5.2 Expenditure incurred on Research & Development, other than on capital account, is
charged to revenue.

2.5.3 Costs incurred on computer software purchased/developed resulting in future economic

benefits, are capitalised as Intangible Asset and amortised over a period of three years
beginning from the quarter in which such software is capitalised. However, where such
computer software is still in development stage, costs incurred during the development stage
of such software are accounted as Intangible Assets Under Development.

2.5.4 Cost of Right of Way for laying pipelines is capitalised and amortised on a straight line
basis over the period of such Right of Way or 99 years whichever is less.

3. FOREIGN CURRENCY TRANSLATION

3.1 Transactions in foreign currency are initially recorded at exchange rates prevailing on the
date of transactions.

3.2 Monetary items denominated in foreign currencies (such as cash, receivables, payables
etc.) outstanding at the end of reporting period, are translated at exchange rates prevailing as
at the end of reporting period.

3.3 Non-monetary items denominated in foreign currency, (such as investments, fixed assets
etc.) are valued at the exchange rate prevailing on the date of the transaction.

PRODUCT PROMOTIONAL MEASURES AND STRATEGIES

STRATEGIC FORMULATION BY IOCL

Overall Cost Leadership:
As per the Government regulations, all the player in downstream petroleum sector have to
maintain same prices, in fact subsidize the mail commodities like Motor spirit, High speed
diesel, kerosene and LPG.

32
For the subsidized products, Government allots Oil bonds to Oil PSU‟s in order to partially
compensate for the under-recoveries and to some extent by upstream Oil Companies
(ONGC,OIL).In this way IOCL has overall cost leadership vis-à-vis private players.

Differentiation
Indian Oil is the pioneer in launching state-of-the-art petrol stations with digital dispensers,
modern canopies, standardized signage and efficient lighting systems way back in the mid-
1990s. The new retail-branding template introduced by Indian Oil set in motion a
revolution in the petroleum retail business in the country. Following are the evidence of
differentiation by IOCL.

Xtra Care
Indian Oil‟s XTRA care E branded full service petrol stations is a result of a series of
processes in retail design, product and service up gradation, capability training, automation,
loyalty programs, retail site management techniques all benchmarked to global standards.
Today XTRA care petrol stations are synonymous in India with world-class petroleum
retailing. While the industry standard is to take samples on a quarterly basis, Indian Oil has
moved several steps ahead by introducing fortnightly random sampling with specific
importance given to RON (Research Octane Number) sampling which is truly the definitive
test for quality and quantity. The surveillance audits by BV are being done on a more
comprehensive basis. The scale and spread of XTRA care pumps is also an industry record.
Another vital differentiator in the Indian Oil XTRA care is the importance given to the
frontline customer attendants. They are trained at three levels of competencies--customer
service, personal hygiene/grooming and customer complaint redressals. XTRA car dealers
also undergo extensive training on 'Retail Site Business Management‟.

Kisan Seva Kendra

Kisan Seva Kendra is a unique award-winning retail outlet model pioneered by Indian Oil to
cater to the needs of the customers' in the rural segment. Today Indian Oil‟s KSKs have
merged as a dominant player in the rural markets, riding on the rapid growth of upcoming
second and third tier roads in the rural areas. The KSKs come with a fresh perspective
enabling dealers to tap the huge demand driven in by consumers there.

33
 Swagat
The Swagat retail network are large format sites designed exclusively to cater to travellers
on the highways. With spacious parking lots, dhabas, eateries, retail stores and restroom,
the

Swagat outlets provide customized services to owners of both light motor vehicles as well
as heavy motor vehicles.

Focus
IOCL plans to prune its retail outlets in the current year (2009), owing to the fact that it
plans to improve the efficiency of current 15000 outlets. Its plans to improve by its
differentiating factors like Xtra care, swagat and seva Kendra. IOCL to use its Indian
surplus funds to expand operations in Sri Lanka,where it is operating as Lanka IOC. It is
planning to establish 300 retail outlets which require investment to the tune of 6 billion Sri
Lankan Rupees ( INR 260 crore), each outlet requiring about Sri Lankan rupee 2 Crore. Sri
Lankan market has a demand of 3.5 MTPA with current capacity of 2.2MTPA.

STRATEGIC ALLIANCES
Product or Service Alliance
Focus is on having captive oil blocks by entering into consortium with foreign players and
Oil India Limited to acquire foreign Oil blocks, so as to ensure energy security of India.
IOCL signs Memorandum of Understanding with Adani Energy for City Gas Distribution
in select districts of Haryana, Punjab, Rajasthan and Uttar Pradesh.

Promotional Alliance
IOCL has formed a promotional alliance with kisan seva Kendra‟s for promotion in rural
areas. IOCL presents sports scholarship awards to nurture talented young sportspersons
across all the streams. Indian Oil has also set up the Indian Oil Foundation (IOF) as a non-
profit trust to protect, preserve and promote national heritage monuments. IOCL provides
„merit-cum-means‟ scholarships to bright students selected on 'merit-cum-means' basis. For
each academic year, 450 scholarships covering the first year students of 10+ / ITI,
Engineering, MBBS and MBA

34
Logistics Alliance
IOCL has formed a logistics alliance with Mundra Port for strategic storage of Crude Oil.
Indian Oil Tanking Ltd formed as an alliance between Indian Oil and Oil tanking US
for storage of Crude Oil and products.

Pricing Collaboration
IOCL collaborates with other PSU players for exchange of surplus products, like, IOCL
might offer Gasoline or Naptha at Guwhati to HPCL in exchange of the same products at
Vizag. (Usually termed as „Hospitality‟ in common Oil Industry parlance)

CAREER PLANNING AND PROMOTION POLICY OF EMPLOYEES

The Corporation's employee strength as on March 31, 2010 was 34,363 including 14,210
officers. There are 2,624 women employees, constituting 7.64% of the total manpower.
Indian Oil‟s unique work culture is based on trust, openness and a commitment to creativity
and consultation. The organisation identifies each and everyone of its employees as an
achiever who will make a difference. The experience and the knowledge gained by its
people in building this mammoth organisation is now sought after by other developing
countries.
Indian Oil inducts officers at the junior-most level of the management hierarchy. First
division professional degree holders and post-graduates from relevant disciplines are
recruited as management/engineer trainees, accounts officers, medical officers, lab officers,
systems officers, communications officers, scientists, etc.
Job rotation and inter-location transfers throughout the country facilitate planned
development of careers and broaden outlook. Career growth opportunities are based on the
individual's performance and contribution to the common goal of sustained growth.
Indian Oil's top executives have grown from within.

Training measures in IOCL (pipelines division)

In an ever changing and fast paced corporate world, training and development is an
indispensable function. Training and development is one of the lowest things on the priority
list of most companies. There is, however, enormous value in organizing proper training
and development sessions for employees.

35
Training allows employees to

acquire new skills

sharpen existing ones
perform better
increase productivity and
be better leaders.

Since a company is the sum total of what employees achieve individually, organizations
should do everything in their power to ensure that employees perform at their peak.
Indian Oil Corporation Limited being the country's largest commercial undertaking has
continuously been providing opportunities to it employees in self and career development
through focused training programmes in the behavioural and functional areas.
IndianOil invested Rs. 5.53 crore in training in the year 2015 which was are more than
100% increase from the previous year which included faculty assistance charges only and
excluded lodging, travel, food, stationary etc. In the year 2015 IOCL spent Rs. 1 lakh
annually on internal trainers and decreased the expenditure on external trainers by more
than 100% from the year 2014.

Training practices

(i) On the job training

(ii) Classroom based training
(iii) Computer based training
(iv) Interactive/Advanced Technology training
(v) Practice in your organisation
The training activities are aligned to the business goals of the organisation. Designed with
the consultation of the functional experts and depending upon the requirement of the target
participants and the department, it is decided whether internal or external resource is
utilized. Management Development Programmes with the assistance of reputed
Management Institutes are also organized for certain topics.

36
The in-house faculties are experienced and knowledgeable senior officers with excellent
communication skills and having a flair for taking training sessions.

The mode of training is classroom sessions and field visit for technical trainings. Training
on safety, electrical safety or on skill development with regard to engines, motors etc are a
combination of both classroom and field trainings.

The trainings for employees programmes include: Functional trainings (e.g. Capability
building programmes on operations, Materials Management, Finance Management etc),
Behavioural Trainings (e.g. Business etiquette, communication skills, self-motivation and
positive attitude), Safety, Work permit and OISD Compliance (Fire and Safety, Process
Safety, Electrical Safety, Behavioural Based Safety, Capability building of Station-in-
charges with regard to Safety etc.), Physical Wellness and Financial Well-being (e.g. Yoga)
training on Statutory Compliances.

These programmes equip employees to

Carry out their functional jobs

Compliance to the statutory requirements
Make them aware of the safety hazards
Exhibit appropriate etiquette at workplace and
Keep them motivated.

Training programmes like Competency Training and Corporate Growth Strategy for middle
level executives are given to enhance knowledge on the overall business environment and
other business verticals of IndianOil. Similarly, skill based trainings like Standard
Operating Procedures help in carrying out the jobs more efficiently and effectively.

The induction programmes for new officers takes place at two levels. For the first two
weeks, the new joinees undergo Common Corporate Induction Level Module(CCIM)
which starts with behavioural module and includes:-

37
(a) An insight into Indian Energy Scenario, evolution of IndianOil, its structure, its vision,
mission, objectives and core values
(b) Defined leadership competencies are given
(c) An outline of Refinery, Marketing and Pipelines Operations
(d) Inputs on functioning of HR, Finance and BD Group.
(e) Visit to Refinery, Pipeline and Marketing locations/installations.

On completion of CCIM, officers are posted to Divisions.

In Pipelines Division, the new officers are required to undergo a three-week of Divisional
Induction Module which is specific to the Divisional functions and includes inputs on

Operations, Maintenance, Construction, Materials, Contracts, HR and Finance functions

sessions on Team Building and Organisational Culture
sessions on diversity and gender sensitization
Mentoring process

The Induction Programme concludes with presentation from the new officers on the areas
of their learning. An informal get-together is also organised in which the new joinees
interact with the senior management officials.

The function of Training Department is to facilitate employees' learning of job-related

competencies in order to gain competitive advantage. Recognizing the importance of
training human capital to meet the business, Training and Development Department of
IndianOil Pipelines Division focuses on Skill Development and knowledge enhancement
for employee engagement, talent management, manage diversity and development of
human resource.

"Operations Excellence" and "Investing in People" are two of the six focus areas of
IndianOil. The top priority of a process-driven industry is safe & reliable operations. T&D
Department is contributing towards operational excellence by training interventions. In the
area of investing in people, T&D is focused on nurturing and developing talent aligning
with business objectives.

38
HRD & WELFARE MEASURES
Major HRD mechanisms used:

Performance Appraisal - It is used as a mechanism to understand the

difficulties/weaknesses of the subordinates and help/encourage them remove all these and
realize these.
Career Planning – In HRD, corporate strategies and business expansion plans should
not be kept secret. Long term plans of the organization should be made transparent to the
employees.
Training – The training is directly linked with career growth and appraisal of the
employees as such. Employees are given on the job training as well as off the job training.
Potential Appraisal & Development – The capabilities should be developed within the
employees to grow/perform new goals & responsibilities by themselves continuously.
Rewards – By rewarding employees, the organization is motivating & recognizing the
employee talents as such and helps in communicating the value of the organization also.
Employee Welfare – HRD system in Indian Oil focusses on employee welfare and
quality of work life by continually examining employee needs and meeting them to the
extent possible.
Feedback & Performance Coaching – In Indian Oil, the supervisors continuously
monitor the employee performance and review and provide necessary suggestions to
improve them.
Organization Development – A continuous effort is maintained to maintain the
development of the organization as a whole.

Motto of the Welfare department in Indian Oil:

“Working with a Smile and a Helping Hand”

In Indian Oil, a separate department is dedicated to the welfare of the employees- both
working and retired. The employees working in this department are sensitive to the troubles
of their juniors, peers and seniors alike. It is functional under the HR department and
reports to the DGM (HR).

39
The welfare departments’ responsibility is timely and swift processing of application
regarding the following:-

Online applications developed by the internal team.

Medical authorizations - Contact the concerned hospital as wells as set check-up camps
for the employees and general public(under CSR)
State of the art facilities in canteen and pantry
Loans and advances – for Housing, Conveyance, Furniture, Children Education,
Festival Advance
Stationary – replace damaged or lost

MANPOWER PLANNING
Manpower planning entails getting the right number and type of personnel to do the
required tasks for the fulfilment of the goals and objectives of the organization.
The manpower planning process is an ongoing and continuous strategy which is
undertaken through a systematic set of procedures.

Indian Oil operates within transparent HR policies and procedures with a well-defined
online performance measurement system in place. Potential decides promotion and it
follows a well-defined career plan model for all officers, offering exposure to different
functional areas through intra-functional & inter-functional job rotation to improve
managerial capability

PERFORMANCE APPRAISAL SYSTEM

Indian Oil has adopted an ePMS (e-Performance Management System) system for
performance appraisal of the employees. ePMS seeks to determine individual performance
and potential through a system that is

Objective
Transparent
Aligned to the business needs
Robust
Easy to use and manage

40
Features of ePMS:-

Role based KRAs and KPIs which is a five point continuous scale on which employees‟
performance is judged.
Special/Additional KRAs are used which have customized scales according to the
employee (if he/she is disabled) and the type of job role.
Weightage to KPIs is differentiated according to the importance of the various scales in
the organization.
Stretch tool for Target Setting for the employees.
Self-appraisal and Final Rating
Each of the above is better achieved in an e-enabled system.
Indian Oil follows and appraisal cycle which is best explained by the
chart below:

SWOT ANALYSIS OF THE ORGANIZATION

STRENGTHS WEAKNESSES
1.India's largest commercial 1.Legal issues
enterprise with a strong 2.Employee management
brand name 3.Bureaucracy
2.Has around 50% petroleum
products
3.Operates 10 refineries in
India
OPPORTUNITIES THREATS
1.Increasing fuel/oil prices 1.Government regulations
2.Increasing natural gas 2.High Competition
market

41
 CONCLUSIONS

It has been an extremely vigorous and knowledge-driven training with Indian Oil
Corporation Limited. Being an intern at the Maharatna Award winner has been an honour
as well as a journey in which I embarked upon with a strong desire to be acquainted with
the actual working environment in a Public Sector Unit.
Any organization requires a clear & well-defined organization structure for the many
arms and legs of the organization to function in harmony. There are different types of
organization structures, each having its own advantages and disadvantages. A company
may choose one of those structures or customize one for itself. But even a customized one
will fall into one of the broad categories.
The organization structure at Indian Oil is a good example of unity in diversity. All the
division of Indian Oil have a common agenda, vision and mission but their way of
approaching them slightly differs from each other. Each division- Refineries, Marketing,
Pipelines, R&D and Assam Oil Division, have different yet somewhat similar organization
structure. For e.g. Refineries follows a tall structure whereas Pipelines and Marketing
follow the divisional structure. At the same time, the other two divisions have a relatively
flatter structure. But the type of departments and hierarchy in each is similar along with the
regional classification of the divisions.

43
 Objective
 To get exposure of the actual working environment within a public

sector unit

 To understand what an Organization Structure is and its significance in

an organization

 To thoroughly understand the Organization Structure related to Indian

Oil.

 To learn about the Hierarchy in Indian Oil.

 To study and analysis all the details of organization structure of Indian

Oil.

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 Biblography

I have taken the information to make this file from the various

sources:

# https://www. Wikipedia.com

# https://www. scribd.com

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