INDIAN OIL CORPORATION LIMITED

PROJECT GUIDEMr.Ranjan Kumar(IOCL)Dr. P.K. Jain (GU)

SUMMER INTERNSHIP PROJECT REPORT“TRAINING NEEDS IDENTIFICATION”

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ACKNOWLEDGEMENTI would like to thank Dr. P.K. Jain, my esteemed guide from department of Business

Administration, University of Gauhati, Ranjan Kumar(Training Manager) and Kailash Chandra(Senior manager ,training) from the training department of Indian Oil Corporation Limited, Noonmati, Guwahati for providing me with valuable help and all the necessary details required for the completion of this project.

I would also like to thank Dr. Rinalini Pathak Kakati , Monosree Mahanta, Dr M Kakati, Dr U.R. Dhar, D. Konwar for providing me with useful information, techniques and general guidance in their respective fields which is of immense value to me and my compilation of this project report. Without their guidance, this project would not see the light of the day.Last but not the least, i would like to thank all the people associated with the project, whose names could not be mentioned , howsever.

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Table of ContentsChapter No. Page No.

Preface 5

Executive Summary 6

1 Introduction1.1 Introduction1.2 Different Levels at which it is to be Conducted1.3 Sources for Identifying Training Needs1.4 Overall Process in Brief1.5 Benefits of Needs Assessment1.6 Introduction To Training Needs Analysis

2 Company Profile2.1 Vision 172.2 Objectives 182.3 SWOT Analysis 22

3 Research Methodology3.1 Sources of Data3.2 Research population 3.3 Sampling size3.4 Sampling design3.5 Analysis

4 Data analysis and findingsRecommendation and Conclusion

BIBLIOGRAPHYANNEXURE

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PREFACE

Identification of training needs at employee, departmental, or organizational level, in necessary for the organization to perform effectively. The aim of training needs identification is to ensure that training addresses existing problems, is tailored to organizational objectives, and is delivered in an effective and cost-efficient manner. Training needs analysis involves monitoring current performance using techniques such as observation, interviews, and questionnaires; anticipating future shortfalls or problems; identifying the type and level of training required; and analyzing how this can best be provided.

In this project we try to identify and analyse the training needs of the executives and non executives of the Guwahati Refinery of the Indian Oil Corporation at the individual and departmental level.

To collect data at individual level, I used questionnaires to determine the effect of the present training system and its effectiveness. And at the departmental level, interviews were conducted to determine whether the 14 HODs wanted to add new programmes or eliminate old ones from the training calender of the company.

I worked as an intern from 1.06.2010 to 31.07.2010, a period of 60 days under the able and direct guidance of Senior training officer, Ranjan Kumar who was tasked by the HR department to prepare and execute the training calender for the year 2010-2011.

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EXECUTIVE SUMMARY

Project Title: Training Need Identification.

Organisation: Guwahati Refinery, Indian Oil Corporation Limited.

Organizational Guide: Mr, Ranjankumar(Sr Training Officer)

Institution Guide: Dr. P.K. Jain (Reader, GU)

Duration of the project: I.06.2010 to 31.07.2010

Objective of the study: identification of training needs at Departmental level and analysis of the existent TNI sysytem.

Research Methodology: The Research carried out is a Descriptive study. Primary

data has been used. ANALYSIS TECHNIQUES used are both qualitative and quantitative. The data has been collected through the use of surveys through questionnaires and direct personel interview.

FINDINGS: Most high level officers have complained of lack of efficiency among subordinates.

CONCLUSION: The TNI system of Indian Oil Corporation Ltd in its Guwahati Refinery is obsolete and inefficient to meet the changing and challenging needs of the oil industry.

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INTRODUCTIONHuman Resource Management (HRM) is the function within an organization that focuses on recruitment of, management of, and providing direction for the people who work in the organization. Human Resource Management can also be performed by line managers.

Human Resource Management is the process of management which develops and manages the human element of enterprises. It may be defined as a set of policies, practices and programmes designed to maximize both personal and organizational goals.

Human resource management (HRM) is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. In simple sense, HRM means employing people, developing their resources, utilizing, maintaining and compensating their services in tune with the job and organizational requirement. "Human resource management is responsible for how people are treated in organizations. It is responsible for bringing people into the organization, helping them perform their work, compensating them for their labors, and solving problems that arise

HRM is based primarily on the assumption that employees are individuals with varying goals and needs, and as such should not be thought of as basic business resources, such as trucks and filing cabinets. It takes a positive view of workers, assuming that virtually all wish to contribute to the enterprise productively, and that the main obstacles to their endeavors are lack of knowledge, insufficient training, and failures of process.

The goal of human resource management is to help an organization to meet strategic goals by attracting, and maintaining employees and also to manage them effectively. The key word here is "fit", i.e. a HRM approach seeks to ensure a fit between the management of an organization's employees, and the overall strategic direction of the company .

The basic premise of the academic theory of HRM is that humans are not machines; therefore we need to have an interdisciplinary examination of people in the workplace. Fields such as psychology, industrial engineering, industrial, Legal/Paralegal Studies and organizational psychology, industrial relations, sociology, and critical theories: postmodernism, post-structuralism play a major role.

There are seven management functions of a human resources (HR) department: staffing, performance appraisals, compensation and benefits, training and development, employee and labor relations, safety and health, and human resource research.

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My topic ‘TRAINING NEEDS IDENTIFICATION’ comes under the purview of the function ‘training and development’.

Training need identification is a tool utilized to identify what educational courses or activities should be provided to employees to improve their work productivity. Here the focus should be placed on needs as opposed to desires of the employees for a constructive outcome. In order to emphasize the importance of training need identification we can focus on the following areas:-

 

To pinpoint if training will make a difference in productivity and the bottom line. To decide what specific training each employee needs and what will improve his or

her job performance. To differentiate between the need for training and organizational issues and bring

about a match between individual aspirations and organizational goals.

Identification of training needs (ITN), if done properly, provides the basis on which all other training activities can be considered. Also requiring careful thought and analysis, it is a process that needs to be carried out with sensitivity as people's learning is important to them, and the reputation of the organization is also at stake.

Identification of training needs is important from both the organizational point of view as well as from an individual's point of view. From an organization’s point of view it is important because an organization has objectives that it wants to achieve for the benefit of all stakeholders or members, including owners, employees, customers, suppliers, and neighbours’. These objectives can be achieved only through harnessing the abilities of its people, releasing potential and maximizing opportunities for development.

Therefore people must know what they need to learn in order to achieve organizational goals. Similarly if seen from an individual's point of view, people have aspirations, they want to develop and in order to learn and use new abilities, and people need appropriate opportunities, resources, and conditions. Therefore, to meet people's aspirations, the organization must provide effective and attractive learning resources and conditions. And it is also important to see that there is a suitable match between achieving organizational goals and providing attractive learning opportunities.

Also in order to bring synchronization between organizational and individual objectives people need to question the way they do things. And this is precisely the hidden objective behind any training need identification process. It should ideally be a long-term process of encouraging employees to take an active involvement in their own development, thus increasing their commitment to learning, to their work, and to the organization as a whole.

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1.2 Different Levels at which it is to be Conducted

Identification of training needs can be done at three levels to ascertain three kinds of needs: -

Organizational Needs

These concern the performance of the organization as a whole. Here identification of training needs is done to find out whether the organization is meeting its current performance standards and objectives and if not, exploring ways in which training or learning might help it to do so. Sometimes organizational training needs are also identified when the organization decides that it has to adopt a major new strategy, create a new product or service, undergo a large-scale change programmed, or develop significant new relationships, such as joining with others to form new partnerships.

Group Needs

Since working in groups and teams have become very much prevalent in today's corporate world that is why nowadays there is increased emphasis given on team effectiveness and team performance. So training needs are nowadays even identified at the group level. Training needs here are concerned basically with the performance of a particular group, which may be a team, department, function, sub-unit, or so on. Information about this group's performance may identify areas of need - which, again, may be for training or other interventions. It is used to find out how efficiently a particular team or group goes about its business and meets its current objectives

Individual Needs

These concern the performance of one or more individuals (as individuals, rather than as members of a group). Here identification of training needs is about finding out to what extent individuals need to learn or be trained in order to bring their current performance up to the required level as a result of changes in methods and processes that call for new competencies and skills.It also sees to it that there is continuous improvement initiative taken by them. Moreover it also helps to find out whether individuals are comfortable in working across boundaries, with people from different backgrounds and different perspectives. This is especially important because there is so much work force diversity observed today in organisations that it has become impossible to retain workforce, which is not flexible enough to accommodate such changes into their daily work schedule.

 

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1.3 Sources for Identifying Training NeedsThere are three sources for identifying training needs. Although they are independent sources for gathering the necessary data but it is usually beneficial if they are considered complementary to one another as the objective of the exercise is to prepare as consolidated data of training needs as possible. The three sources are as follows:

JobProfileIt is a comprehensive description of all the functions and the responsibilities that a person has to carry out in due course of his job. It is very common for us sometimes to find that people of a particular department more or less perform the same kind of job and therefore a comparative study can be done on their performance to pinpoint on the training needs of those people who have not performed up to the mark. In here we can also include Job analysis in order to have a realistic and systematic appraisal of training needs. Ignored to do this first we need to break up the functions and responsibilities into categories. Next we have to classify these tasks/activities on the basis of their relative importance to the nature of the job. And lastly we can compute a priority listing of these tasks in order to have a catalogue of knowledge, skills and attitudes required for effective performance of the job.

 

Experiences of the training agency

It is very common for organizations nowadays to hire professional training agencies in order to look into the training matters. The training agency and the trainers thus should also draw from their own experiences of organizing programmes for comparable groups or in similar areas.

 However, earlier experiences can only serve to facilitate the process. It cannot be the sole basis, as training needs of majority of organizations are very specific.

 

Pre-training survey of the participant's needsThis is suggested as the best way to conduct a training need identification .A pre-training survey is nothing but a survey of the needs and expectations of the participants well in advance of the programmed. And in this exercise it is better to include the superiors also as they are in a good position to provide necessary data on the training needs of their associates, especially in context of their performance. This is generally done in a systematic manner with the help of a structured questionnaire in order to reflect the genuine desire to involve the participants and the organization in the planning process. However it might happen in certain cases that it is not possible to actively involve the superiors due to various reasons like lack of time etc but in that case at least they must be kept fully informed of the proceedings.

 1.4 Overall Process in Brief

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Step 1: Define and chart part of the organisation in which the work has to be done. It is to have a focused approach of the study. It could either be a particular department, a section, a unit, a specific group or a staff category.

Step 2: Use various data collection measures to collect both qualitative as well as quantitative data.

Step 3: Analyse the entire data collected in order to find out causes of problem areas and priorities areas, which need immediate attention.

Step 4: Priorities the different training programmes according to the responses collected.

Step 5: Record and file the entire data so that it can be used for future reference while designing the training programmes / training calendar.

1.5 Benefits of Needs AssessmentAs pointed above needs assessment helps diagnose the causes of performance deficiency in employees that require remedial actions. This being a generalised statement there are certain specific benefits of needs assesment. They are as follows: -

The organization is informed about the broader needs of the participants. Through this process it may be possible that certain new training programmes, which were, previously not in their list may come to the forefront.

The organisation is able to reduce the perception gap between the participant and his/her boss about their needs and expectations from the training programme.

The organisation is also able to pitch its course input closer to the specific needs of the participants.

It also saves a lot of money for the organization as otherwise money is just unnecessarily wasted on those training programmes, which are either not needed by the employees or they have no interest in undertaking them.

Lastly, time, which is the most important resource today, is also saved, as the training programmes conducted are the ones, which are actually needed by the participants.

1.6 INTRODUCTION TO TRAINING NEEDS ANALYSIS:

It is the ways to identify the learning needs of employees.Successful organizations provide focused, timely training to their staff. They continuously

analyze training needs to identify and address skills gaps as they occur.Most people can, if they put their mind to it, perform a training needs

analysis on staff within their organization in order to identify learning needs. All it requires is a clear understanding of what is to be achieved, some knowledge of the organization itself, and a consistent, methodical approach.

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There are two general forms of analysis of training needs. One is a general, high level approach that usually takes place during annual reviews or appraisals. The second is a more detailed analysis that tends to be linked to specific projects, such as the implementation of a new computer system.

Analysing training need often forms part of an ongoing cycle of needs assessment, training delivery and evaluation of the training, which leads back to needs assessment.

The internet is a valuable resource is for material about training needs analysis. There is plenty of material available online, including training needs analysis templates. These resources are extremely useful, but examples and templates found online are unlikely to be an ideal fit for any organization. They will need to be tailored to meet specific local requirements.

Understanding the Objectives of Training Needs Analysis

Before any form of training need analysis takes place it is essential to establish its objectives.

Is it being conducted as part of an annual review or appraisal process, to help a manager determine which courses to send his or her staff on? This tends to be a very general, or high-level approach to identifying learning needs, and is largely subjective. The outcome is a training programme which often involves taking off-the-shelf training, delivered internally or externally, and perhaps some mentoring or one-to-one training.

Alternatively, the training analysis forms part of a specific project, such as the implementation of a new computer system. The analysis is more detailed, involves multiple steps, and is more objective. The outcome is information about the skills gaps of a particular group of people, which is then used to develop a customized training program that fills those gaps.

Data Collection Methods for Training Needs AnalysisThere are several different ways in which to collect the information required. A detailed approach will utilize multiple methods in order to form the clearest picture of learning needs. This will take longer, but if conducted properly will deliver more meaningful results and should lead to the development of a highly relevant and targeted training program.

The analysis methods include:

Interviewing managers to learn what they want their staff to know. Interviewing staff to discover where they think their skills gaps lie. Interviewing other relevant parties, such as implementation consultants if the training

is linked to a new system implementation. Questionnaires for learners to self-assess their knowledge. Studying documentation that defines the objectives of project or the function of a

team.

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Observing staff at work to see how they actually operate. Having learners perform tests in order to benchmark knowledge prior to training.

Processing The Result of AnalysisOnce the data has been collected it is important that it is correctly assessed. This involves reviewing the data to identify trends and themes.

The level of detail will depend on the number of learners being assessed. The outcome of the assessment should be a list of subjects in which training is required, and a list of the groups, or individuals, who need that training. This information can then be used to develop a training plan.

Unexpected Outcomes of AnalysisIt is possible that the process of analysing learning needs leads to the identification of other issues. It could reveal that there is poor communication within or between departments or teams, or even that there is a break down of relationships. Analysis can pin-point problems with staff morale or systemic weaknesses within the organization. It may lead to the conclusion that training alone will not resolve a particular problem.

For these reasons it is important that the person conducting the analysis knows to whom these findings should be reported, without running the risk of making problems worse.

Organizations that invest in analysis of training needs and development of training programs to address those needs will, in time, feel the benefit of filling their skills gaps and will also build and maintain staff morale. RESEARCH OBJECTIVE: identification of training needs at Departmental level and analysis of the existent TNI sysytem.

HYPOTHESIS: Since this is a exploratory and descriptive research study, we will not be forming any hypothesis.

NEED: this project was deemed necessary by the training department of the Human resource division of the IOCL, Guwahati Refinery for the compilation of the training calendar for the year 2010-11 and evaluation of the weaknesses of the present TNI module.

COMPANY PROFILE

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In 1881, Assam Railway & Trading co. began laying of tracks in Assam. They used elephants in place of cranes. One day, one of the elephants wandered away, to come back with its feet smeared by slimy oil. Backtracking led to the discovery of oil in Borbhil, near present day Digboi. A Canadian driller, Willey Leove hollered at native boys, “Dig boy dig”. Oil was struck and the name ‘Digboi’ stuck. Digboi became the birth place of India’s oil industry.

In 1890s, crude oil distillated at Margherita, 16 km away from Digboi, in cast iron pans, called ‘Stills’. Digboi Refinery of Assam Oil Company (AOC) was commissioned at its present location in 1901. AOC nationalised and its Refining and Marketing functions merged with IOC in October, 1981. Digboi refinery is one of the oldest refineries in the world that is still working.

At the time of independence, India’s oil industry was fully controlled by international oil cartel. In 1956, Industrial Policy Resolution was passed, which laid the foundation of national oil industry. The resolution stated – “Oil is of vast importance in the world today. A country that does not produce its own oil is in a weak position. From the point of view of defence, the absence of oil is a fatal weakness”. Exploration & production was put into Schedule – ‘A’, meaning thereby that only state would operate in this field. Soon thereafter, ONGC was formed for oil exploration and drilling.

Indian Oil Refineries were formed in 1958 for refining and manufacturing of petroleum products, with Shri. Feroze Gandhi as its Chairman. This was followed by the formation of Indian Oil Co. in 1959, for marketing and distribution of petroleum products.

In 1960, Indian Oil Co. signed a historic agreement with Soviet Union for import of 1.5 MMT of SKO, HSD, and ATF over a period of 4 years on ‘rupee payment bases’. This initiated the end to the monopoly of foreign oil companies.

On 1st September 1964, as a step towards achieving improved efficiency, Indian Refineries and Indian Oil Co. were merged and Indian Oil Corporation Ltd. (IOCL) was born.

Indian Oil’s gross turnover (inclusive of excise duty) for the year 2009-10 touched Rs. 2,71,074 crore. The Profit after Tax was Rs 10,221 crore. For the year 2009-10, IndianOil has accounted for cash compensation of Rs 15,172 crore, out of which Rs. 7,100 crore has been received during the year. In addition, the company has been granted discount of Rs 7,548 crore received from upstream companies, as per the under recovery sharing mechanism. The Board of Directors has recommended a dividend of Rs 13 per share.

India’s flagship national oil company and downstream petroleum major, Indian Oil Corporation Ltd. (IndianOil) celebrated its Golden Jubilee during 30th June - 1st September 2009.

The Gross Refining Margin for April-March 2010 is USD 4.47 per barrel as compared to USD 3.69 per barrel during the previous year. It is India’s largest commercial enterprise; ranking 105th on the Fortune Global 500 list in 2009.It is also the 18th largest petroleum

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company in the world and the number one petroleum trading company among the National Oil Companies in the Asia-Pacific region. IOCL was featured on the 2008 Forbes Global 2000 at position 303. It was adjudged as ‘one of the best employers’ in India by an Outlook Business- Hewitt Associates study conducted in 2008-09. In its endeavor to realize the vision of becoming the ‘energy of India and ‘a globally admired energy company’, Indian Oil (IOC) is looking for bright result - oriented professionals to join its journey of growth.

For the year 2007-08, the IndianOil group sold 59.29 million tonnes of petroleum products, including 1.74 million tonnes of natural gas, and exported 3.33 million tonnes of petroleum products. The Corporation's cross-country network of crude oil and product pipelines, spanning about 9,300 km and the largest in the country, meets the vital energy needs of the consumers in an efficient, economical and environment-friendly manner.

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In India, organizations or companies under the oil industry are broadly classified under 2 groups:-1. Upstream companies or Oil exploration companies.

Upstream oil companies are those which deal in exploration and extraction of crude oil. Upstream oil companies in India include:

(i) Oil and Natural Gas Company (ONGC).

(ii) Oil India Limited (OIL).

(iii) Reliance India Ltd.

2. Downstream companies or Oil marketing companies.

Downstream oil companies mainly deal in refining of crude oil and marketing of petroleum products. Downstream oil companies in India include:-

I. Public sector.

(i). Indian Oil Corporation Limited (IOCL).

(ii).Hindustan Petroleum Corporation Limited (HPCL).

(iii). Bharat Petroleum Corporation Limited (BPCL).

II. Private sector.

(i) Reliance India Limited.

(ii) Others.

he flagship national oil company in the downstream sector, Indian Oil reaches precious petroleum products to millions of people everyday through a countrywide network of about 34,000 sales points. They are backed for supplies by 166 bulk storage terminals and depots, 101 aviation fuel stations and 89 Indane (LPG) bottling plants. About 7,100 bulk consumer

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pumps are also in operation for the convenience of large consumers, ensuring products and inventory at their doorstep.

Indian Oil operates the largest and the widest network of petrol & diesel stations in the country, numbering over 17,600. It reaches Indane cooking gas to the doorsteps of over 50 million households in nearly 2,700 markets through a network of about 5,000 Indane distributors. Indian Oil’s ISO-9002 certified Aviation Service commands over 62% market share in aviation fuel business, meeting the fuel needs of domestic and international flag carriers, private airlines and the Indian Defense Services. The Corporation also enjoys a dominant share of the bulk consumer business, including that of railways, state transport undertakings, and industrial, agricultural and marine sectors.

Indian Oil’s world-class R&D Centre is perhaps Asia's finest. Besides pioneering work in lubricants formulation, refinery processes, pipeline transportation and alternative fuels, the Centre are also the nodal agency of the Indian hydrocarbon sector for ushering in Hydrogen fuel economy in the country. It is in the process of setting up a commercial Hydrogen-CNG station at an Indian Oil retail outlet in New Delhi this year. It has commissioned a bio-gas plant and bio-mass gasifier plant during the year 2007-08 for conducting research into energy-efficient bio-gas business.

Indian Oil joined the league of global technology providers last year with the selection of its in-house developed INDMAX technology (for maximizing LPG yield) for the 4 MMTPA Fluidized Catalytic Cracking (FCC) units at the Corporation's upcoming 15 MMTPA refinery-cum-petrochemicals complex at Paradip in Orissa, as well as for the FCC unit coming up at BRPL. A wholly owned subsidiary, Indian Oil Technologies Ltd., is engaged in commercializing the innovations and technologies developed by Indian Oil’s R&D Centre.

Indian Oil and its subsidiaries account for a 47% share in the petroleum products market, 40% share in refining capacity and 67% downstream sector pipelines capacity in India. The Indian Oil Group of Companies owns and operates 10 of India's 19 refineries with a combined refining capacity of 60.2 million metric tons per year.

Indian Oil Corporation has two major domestic competitors, Bharat Petroleum and Hindustan Petroleum. Both are state-controlled, like Indian Oil Corporation. There are two private competitors, Reliance Petroleum and Essar Oil.

Indian Oil is investing Rs. 43,393 crore (US $10.8 billion) during the period 2007-12 in augmentation of refining and pipeline capacities, expansion of marketing infrastructure and product quality up gradation as well as in integration and diversification projects.

2.1 VISION OF THE COMPANY

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“A major, diversified, transnational, integrated energy company, with national leadership and a strong environment conscience, playing a national role in oil security & public distribution.”

VALUES- Values we nurture

Care - stands for Innovation - stands for

Concern Creativity Empathy Ability to learn Understanding Flexibility Cooperation Change Empowerment

Passion - stands for Trust - stands for

Commitment Delivered Promise Dedication Reliability Inspiration Dependability Pride Integrity Ownership Truthfulness Zeal & Zest Transparency

To achieve international standards of excellence in all aspects of energy and diversified business with focus on customer delight through value of products and services, and cost reduction.

To maximise creation of wealth, value and satisfaction for the stakeholders.

To attain leadership in developing, adopting and assimilating state-of-the-art technology for competitive advantage.

To provide technology and services through sustained Research and Development.

To foster a culture of participation and innovation for employee growth and

contribution.

To cultivate high standards of business ethics and Total Quality Management for a strong corporate identity and brand equity.

To help enrich the quality of life of the community and preserve ecological balance and heritage through strong environment consciousness

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2.2 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 oil 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 oil to minimise foreign exchange outgo.

To minimise fuel consumption in refineries and stock losses in marketing operations to effect energy conservation.

To further enhance distribution network for providing assured service to customers throughout the country through expansion of reseller network as per Marketing Plan/Govt. 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.

OBLIGATIONS

I. Towards customers and dealers.

To provide prompt, courteous and efficient service and quality products at fair and reasonable prices

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II. Towards suppliers.

To ensure prompt dealings with integrity, impartiality and courtesy and promote ancillary industries.

III. Towards employees

Develop their capability and advancement through appropriate training and career planning.

Expeditious redressal of grievances.

Fair dealings with recognised representatives of employees in pursuance of healthy trade union practice and sound personnel policies.

IV. Towards community.

To develop techno-economically viable and environment-friendly products for the benefit of the people.

To encourage progressive indigenous manufacture of products and materials so as to substitute imports.

To ensure safety in operations and highest standards of environment protection in its manufacturing plants and townships by taking suitable and effective measures.

To improve the condition of Scheduled Castes/ Scheduled Tribes in pursuance of

national policies.

S.NO. LOCATION OF REFINERY CAPACITY(MMTPA)

1. GUWAHATI 1.002. BARAUNI 6.003. KOYALI 13.704. HALDIA 6.005. MATHURA 8.006. DIGBOI 0.657. PANIPAT 12.008. BRPL 2.359. *CPCL 09.5010 *NARIMAN 1.0

MMTPA – Million Metric Tons Per Annum.

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AN INTRODUCTORY NOTE ON THE GUWAHATI REFINERY

Guwahati Refinery is one of the largest production based organization in the

entire Northeast having 900 employees in total. Guwahati Refinery, the first

public sector refinery of the country, was built with Romanian collaboration

and was inaugurated by the first Prime Minister of India, Pandit Jawaharlal

Nehru, on 1st January 1962.

Indian Oil commissioned India's first product pipeline, the Guwahati - Siliguri pipeline, in 1965. This 435-Km pipeline connecting Guwahati Refinery to different installations was designed to carry about 0.818 MMT of oil per year. As on 1st April 2003 Indian Oil operates the country's largest network of 7170 km of crude and product pipeline with a total capacity of 52.75 million metric tonnes per annum.From a small beginning with a sale of 0.032 million kilolitres, Indian Oil achieved sales of 10 million kilolitres with a turnover of Rs. 635 crore and profit Rs. 22.5 crore by the late 60's. From then on, the company has grown from strength to strength and presently the company sold 46.46 million tonnes of petroleum products in the domestic market during the financial year 2003.Guwahati Refinery is amongst those Indian Refineries who have been rewarded with ISO-9001 certification of International Quality Standards as well as ISO-14001, for Environment Management System and Occupational Health and Safety Management System (OSHMS) which is also a stringent International Standard which very few Indian Companies have achieved till date. M/s DNV has certified Guwahati Refinery with International Safety Rating System (ISRS) level-6 certification. These achievements show the deep commitment of Guwahati Refinery to Quality, Safety and Environmental Management System. Guwahati Refinery came into operation in the year 1962 with an installed capacity to process 0.75 MTPA of Assam Crude. After debottling the operating process units, the total refining capacity was subsequently enhanced in first stage to 0.85 MMTPA and now to 1.0 MMTPA. The Refinery has an elaborate pollution control system to ensure that water generated are adequately treated prior to discharge into the river Brahmaputra. More than 50 % of the treated effluent water is now reused in the refinery.

With capacity of 1.0 MMTPA, Guwahati Refinery processes crude oil received from the upper Assam oil fields and caters to the requirement of the petroleum products of northeastern region.

Its product slate includes LPG, Motor Spirit (MS), Kerosene, High Speed Diesel (HSD), Light Diesel Oil (LDO), Straight Run Naphtha (SRN), Raw Petroleum Coke (RPC), and special cut naphtha (RN) which is used as a feed stock for CRU of Digboi Refinery of Assam Oil Division. Keeping pace with changes in Industrial Environment, Guwahati Refinery is diversifying to produce specialty products like Premium MS & Needle coke etc. for gearing up the cleaner fuel requirements of the country in coming years.

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Guwahati Refinery is the first refinery in India to produce Needle Coke. Guwahati refinery set up with the expertise and technical assistance. From the Romanian Government was initially designed to process 7, 50,000 metric tones of crude oil per year and now has been upgraded to process 1.00 MMTA (million metric tones of crude per annum). The refinery process a mix of Oil (Oil India Limited) and ONGC (Oil & Natural Gasses Corporation Limited) crude received from Assam Oil fields through a430 km long and 16-trunk pipeline.

2.3 A BRIEF ON MANUFACTURING PROCESS AT GUWAHATI REFINERY At Guwahati Refinery refining crude oil produces various petroleum products. The process involved in production of these products can be described under three basic steps: DISTILLATION, CRACKING and TREATING.

1. DISTILLATION The process of separating the components of a mixture by differences in boiling point; a vapor is formed from the liquid by heating the liquid in a vessel and successively collecting and condensing the vapors into liquids. In refineries, distillation involves pumping oil through pipes in hot furnaces and separating light hydrocarbon molecules from heavy ones. In Guwahati Refinery crude oil is distilled in one crude unit that operates at near atmospheric pressure (CDU). During this process, the lightest materials, like propane and butane, vaporize and rise to the top of the atmospheric column. Medium weight materials, including gasoline, jet, kerosene and diesel fuels, condense in the middle. Heavy materials, called reduced crude oil condense in the lower portion of the atmospheric column.

2.CRACKING

The process of breaking down the larger, heavier and more complex hydrocarbon molecules into simpler and lighter molecules of higher value. Cracking is done by application of heat and pressure called as thermal cracking or pyrolysis and use of heat and catalytic agent called as catalytic cracking. At Guwahati Refinery, thermal cracking is carried out in Delayed Coking Unit

(DCU) wherein reduced crude oil (RCO) from CDU bottom is converted (using the coking, or thermal-cracking process) to high-value light products, producing petroleum coke in the process. The large residuum molecules are cracked into smaller molecules when the residuum is held in a coke drum at a high temperature for a period of time. Only solid coke remains and has to be drilled from the coke drums. At Guwahati Refinery, catalytic cracking is carried out in INDMAX unit, which is a form of fluidized catalytic cracking wherein reduced crude oil (RCO) from CDU

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bottom & Coker Fuel oil (CFO) from DCU bottom is converted into value added products like LPG, Gasoline, LDO /HSD in presence of high temperature and catalyst.3. TREATING (Removing sulfur)

In order to meet the environmental norms (BS-II /BS-III), the sulfur content of Gas oil has to reduce to acceptable norms. For this purpose, the Gas Oil produced in Crude Units/DCU is treated in (Hydrotreater Unit) HDT unit where sulfur is reduced with the help of hydrogen.

Pow

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“

SWOT” Analysis of Indian Oil Corporation Limited”

STRENGTHS

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EXECUTIVE DIRECTOR

(G Bhanumurthy)

DGM (HR) GM (TECH)

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Consolidation of retail & consumer business is supported by appropriate product quality to compete with the competitors.

Wide range of product & services. Large variance of product & services. Indian Oil Corporation Limited has the highest no. of retail outlet in India. World class R&D centre. Indian Oil Corporation Limited has 10 refineries in India. Largest pipeline network in India. Indian Oil’s ISO-9002 certified Aviation Service commands a 64% market share in

aviation fuel business, meeting the fuel needs of domestic and international flag carriers, private airlines and the Indian Defence Services. Indian Oil also enjoys a dominant share of the bulk consumer business, encoding that of railways, state transport undertakings, industrial, agricultural and marine sectors.

IBPs (merged with IOCLs marketing division) solo marketing initiatives.

Development of new energy efficient product, formulation including lubricants and bituminous product and up gradation of refinery processes to maximum product yield.

Proper quality implementation of quality concepts like six sigma etc. Listed in Fortune 500 Company- 135 position holder as on 2007

WEAKNESS

High cost of raw material. Government rules & regulations & its intervention Dependence on Exploration Companies for the crude oil Rising prices of the crude oil Social obligations Inability to process different types of crude The technological drawback, as compared to some major foreign player is another

weakness for the company.

OPPORTUNITIES

As IOCL has entered into new market like Sri Lanka and Mauritius. It can continue to spread out its offshore marketing venture to tap new markets and explore business opportunities.

Capacity expansion for popularizing different brands as penetration level in India is highly prospective.

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As they entered in new foreign market, they are able to gain more foreign currency which is continuously uplifting Indian economy.

IOCL is venturing into new business avenues like petrochemicals and power generation. And the demand for petrochemicals and power generation is increased day by day so it is a great opportunity for IOCL to earn revenue.

In India economic growth rate is 10%, purchasing power of people is increased in India, so it’s an opportunity for Indian oil Corporation Limited to sell their product.

As IOC entered into upstream business and in the time of rising prices of crude oil it’s not affect the profit margin of IOCL

THREATS

Large number of substitutes in the petroleum sector like coal, solar energy, natural gas, bio-fuel etc. is coming as sharp substitute to the petroleum products.

Limited stock of crude oil. The foreign players with more advanced technology are the biggest threat for the

company. Highly oligopolistic market with a few number of players, i.e. no single company can

mobilize its resources to reap fullest advantage. It can be a question of mere survival for many of them in the coming years.

Buyers of the petroleum products are getting inclined to the new substitutes coming up.

With the entry of private players in domestic country and the product of outside country bring stiff competition to the IOCL on the refining and marketing margins.

Removal of Excise Duty Exemption by Government of India would result in substantial amount of loss

If the Government Policies allow the private players to set their own prices, the private player can seriously harm the market share of IOCL

RESEARCH METHODOLOGYResearch simply means a search for facts-answers to questions and solutions to problems. It is a purposive investigation. Research is defined as a scientific and systematic search for pertinent information on a specific topic. In other words, it is a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Research methodology refers to the methods used in performing research operations.

For the purpose of carrying out this study the sources of data are as under:

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Primary sources: refers to datas which are collected for the first time and which happen to be original in character. The various methods of collecting primary data are:

1. Data collection through interviews: It is a two way systematic conversion between an investigator and an informant, initiated for obtaining information relevant to specific study.

2. Data collection through Questionnaires: A questionnaire consists of a number of questions printed or typed in a definite order on a form or set of forms. Questions were framed with the required information in mind. Both Open-ended questions and close-ended questions were framed. Open-ended questions being

the explanatory type where respondents were asked to give their point of views

and feedbacks, and close-ended questions consisting of dichotomous i.e. yes/no and multiple choice questions where respondents were given three or more choices.

Secondary sources: These are the sources of data which have already been collected and analyzed by someone else for another purpose , but referred to for compilation of the research .In other words , it means those datas that are already available. This may be like:

Reference books

Reports, journals of the concerned organization

Public records and statistics

Training Calender prepared by the Training Department

Research Methodology Naresh K Malhotra

Personnel Mgmt..CB Mamoria

www.iocl.com

www.google.com

Research population: For the purpose of this project, the entire staff of IOCL, Guwahati is taken as the population.

Sampling Size: The sampling size has been taken as 50 consisting of both employees of the non-executive rank as well as executive rank. No differentiation has been made with respect to their sexes and religions to ensure maximum representation and objectivity in data collection.

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Sampling Design: A sample design is a definite plan for obtaining a sample from a given population. It refers to the technique or the procedure the researcher would adopt in selecting items for the sample. For the purpose of this project, a probability sampling design is used, i.e random sampling. Under random sampling design, items are randomly selected and thus every item of the universe has an equal chance of inclusion in the sample.

Analysis

The data after collection has to be processed and analyzed in accordance with the outline laid down for the purpose at the time of research plan. The term analysis refers to the computation of certain measures along with searching for patterns of relationship that exists among data-groups.

The data collected for the project were analyzed using standard statistical methods and techniques. Use of charts, graphs and diagrams in addition to tables is done to represent categories of answers to questions. SPSS v16.o was used for the analysis of data.

Primary Data Collection Method: Questionnaire, interviews.

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DATA ANALYSIS AND FINDINGS:We( a team of 3 members) were tasked with the job of1. Interviewing all the HoDs( head of the departments) personally.2. Interviewing a sample size of about 50 employees through questionnaires.

INTERVIEW of HODs

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The industry guide gave us a Training Calendar and we were required to visit each HoD and present them with the skeletal model of the Training calendar and ask them 3 questions only. We were required to write down the answers in a sheet of paper. The questions were

1. “Other than the existing Training topics in the calendar, would you like to include any more training topic/topics for your subordinates?”

2. “As per the guidelines provided by the Human Resource Department on Training Needs Identification, have you forwarded the instructions for the filling up of online E-TNI form for executives and non executives provided under E-SUVIDHA?”

3. The HoDs had to recommend a training co-ordinator from their individual departments, who would be provided with all the necessary facilities for carrying out the Training program for that department.

The findings for Question 1 and Question 3 are tabulated below, whereas for Question 2, all the responses were affirmative. But the Training Department after checking its database, discovered that out of a total of 300 executives and non executives, only 10.02% had filled out the online TNI form. So the guidelines were either not effective enough to initiate action or there was sheer indifference on part of the employees both executives and non executives alike towards the facilities provided under E-SUVIDHA. And hence requisite actions would be performed to popularize the benefits of this service.

Name list of respondents for compilation of training calendar 2010-11.1. K.B. Anand, [CHRM]2. K Banerjee, [CITM]3. B.K. Das, [CPNM]4. V.S. Desai, [CIPM]5. S. Gurumurthy, [SFM]6. L.S. Kharkongkar , [CTSM-II]7. S.K. Mitra, [CESM]8. P.N. Sarma, [CMIS]9. A. Thaoumoung, [SMNMCL]10. N.K. Sarma, [DGM, materials]11. A.K. Mathur, [SFSM]12. Chandrima Sarmah, [Corporate Communications]

Name list for respondents who could not be interviewed1. N.P. Barua, [CPJM]: reason: on leave2. Arup Das, [CMNM]: reason: on sick leave3. S.K. Sinha,[SPUM]:reason: official tour4. A.K. Sarma[ACMO]:reason : official tour5. S.N. Mathur, [CTSM I]: reason: official tour

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PRIMARY DATA::Name Designatio

nDept Requirements Co-

ordinatorK.B.

AnandCHRM Human

Resource1.Stress relief2.housekeeping

mantainance3.upkeep of

administrative pantry

T.C. Medhi

K. Banerjee

CITM Instrumentation

1.Instruments and process control systems

2.Emergency shutdown systems in process units.

S.Saharia[SITE]

B.K. Das CPNM Production 1.Nitrogen and instruments air unit operations.

2. AAU/ARU operation

3.MSQuality improvement operation.

4.OM&S op5.ETP op6.CDU op7. ISOSIV op8.INDMAX op9.SRU op10.HGU op11. HDT op

P.S. Sonowal[SPNM]

V.S. Desai

CIPM Inspection 1.Radiography level2

2.UT level23. MPI level24. Welding

Inspection course5.Nace

Corrosion Course6. Painting

Inspection7.API

653,570,5108.Refractory and

V.S. Desai

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insulation9.Pressure

Vessel Design fabrication

10.Material selection and failure analysis.

S. Gurumurthy

SFM Finance Wants 4 programmes on gross refinery margin & 2 programmes on delegation of power.

R.A. Pandit[DFM]

L.S. Khargkonkar

CTSM Technical Services

1.HAZOPS2.Process

software simulation

1.K Sen2.M Surana3.S Sarkar4.L

Prassana VS.K. Mitra CESM Engineering

services1.protection &

control systems in electrical equipment

2.DM plant operation

3.Operation and mantainance of pumps

4.Vibration monitoring and analysis

Sita Baruah[ESM EL]

P.N. Sarma

CMIS MI 1.programming .net

2.e-security3.Oracle DBA4.Routing/

networking

P.N. Sarma[CMIS]

A.Thoumoung

SMNMCL Mantainance

1.working in confined areas

2.refractory and insulation

A.Thoumoung

[SMNMCL]

N.K. Sarma

DGM materials

Materials Materials management:an integrated approach

Satish Kumar

[MTO (P)]A.K.

MathurSFSM Fire and

safety1.gas test

procedure2.handling of

gas testing equipments

3.work permit system

4.chemical safety

5.accident reporting

6.investigation

A K Mathur[SFSM]

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analysisChandrim

a SarmaCorporate

Communications Officer

Corporate Communications

Leadership and team building

Chandrima Sarma

S.K. Singha

SPUM Power and utility

1.Variable frequency drives(theory, operation, mantainance)

2.Cable jointing techniques

3.generator protection

4.cable fault identification

Raymond C Diengdoh

THE INTERVIEW OF EMPLOYEES THROUGH QUESTIONNAIRES:To know about the effectiveness of the TNI system prevalent in Guwahati Refinery of

the Indian Oil Corporation Limited and its effectiveness, I designed the questionnaire as such to meet my needs and objective.(a sample has been attached to the report)

Care was taken to introduce Likert scale, Continuous ratings scale, dichotomous questions. Care was taken to avoid redundant and complicated questions. But crosschecking questions have been used throughout the questionnaire to see the genuinity of the responses. The questionnaire has been administered to each respondent thoroughly.(There are no missing or incomplete responses)

Findings Analysis of sample size using variables ‘Gender’ and Cadre’

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Gender of respondent * whether respondent is in executive cadre or non

executive carde Crosstabulation

Count

whether respondent is in

executive cadre or non executive

carde

Totalexecutives

non

executives

Gender of

respondent

male 24 10 34

fema

le13 3 16

Total 37 13 50

IOCL, GUWAHATI REFINERY : ORGANIZATIONAL STRUCTURE

Both the cross tabulation and the pie diagrams represent the composition of the refinery. This will help the users of this report to understand the further analysis.

‘Cadre’ and ‘Does training improve performance’

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All respondents both executives and non executives feel that training is necessary and actually leads to enhanced performance. Thus we see that among the employees of Guwahati Refinery, there is a positive attitude towards training.

TRAINING SKILLS

While more than 75% of the total employees feel that training has provided them with the necessary skills for the job, almost 22% employees feel that training has not provided necessary skills for the job.

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We see that almost 20% of the top level executives are not satisfied with the fact that training provides all the necessary skills. This means that the executives and HoDs have noticed a level of inefficiency among their subordinates.

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This shows how the employees think of the present TNI in terms of modernity and reliability.

Let us do a further analysis of reliability of the TNI system based on Cadre.

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The executives here again feel that the TNI system is not reliable in terms of providing reliable training to the staff.

FINDINGS( A JIST): TNI system of Guwahati Refinery is accountable for low

efficiency among the non executives. A lot of top level officials of the corporation are not happy with the system. Satisfaction and comfort levels are also at a loss.

The TNI system of Indian Oil Corporation Ltd in its Guwahati Refinery is obsolete and

inefficient to meet the changing and challenging needs of the oil industry.

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CONCLUSION AND RECOMMENDATION

The TNI system of Indian Oil Corporation Ltd in its Guwahati Refinery is obsolete and inefficient to meet the changing and challenging needs of the oil industry.

A committee must be constituted at the earliest , the task of which would be to look into the loopholes of the present TNI system and develop a better and efficient means of operation in this unit.

Instead of hiring an outside agency for TRAINING NEEDS IDENTIFICATION, it should use this committee to develop the best alternatives available. Also care must be taken to see that this committee should have adequate representation from EXECUTIVES, NON-EXECUTIVES, WORKERS, so that the important issues can be identified, assessed and

corrected.

BIBLIOGRAPHY

(i) Marketing research by Naresh K malhotra(ii) Marketing research by CR Kothari(iii) Personnel Management by CB Mamoria(iv) Training Manual (IOCL)(v) Training Manual (human resource) (IOCL)(vi) Training Calender (provided under E-SUVIDHA of IOCL’s pvt network)(vii)Oxford English Dictionary(viii) www.iocl.co.in(ix) www.google.co.in(x) Previous project reports.

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Annexure:

QUESTIONNAIREDear Sir/Madam

As part of my Summer Internship Project, I have prepared a list of questions relating to Training

Need Identification. This questionnaire will be kept confidential and will be used for educational

purposes only. Your response together with our own assessment will contribute to the improvement

of the Training Need Identification system in IOCL. I will be grateful if you could kindly fill up

accordingly.

Thank you

Amitjyoti Das

The questionnaire is as follows:

1.Name of the respondent:……………………………………………………… b) Department:………………………………………………………………………. c) Designation:………………………………………………………………………… d) Gender: Male Female e) Marital status: Married Unmarried 2. Whether training is needed? Yes No Not sure To some extent

3. Whether training will actually improve the employee performance on the job? Yes No Not sure To some extent

4. Are you satisfied with the present Training need Identification system? Yes No

5. Does the training provided to, you fill up your needs on the job? Yes No

6. Is training provided to you according to work profile? Yes No Not sure To some extent

7. Training provided to you in the past helped to improve your productivity. Strongly disagree Disagree Neither agree nor disagree Agree Strongly agree

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8. Do you think the present Training Need Identification rules need any modification? Yes(if yes, then state the reason)……………………………………… No9. How comfortable do you feel with benefits of training in your department? High Moderate Low10. How satisfied are you with this situation? Highly satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Highly dissatisfied11. A detailed TNI procedure leads to improved performance ? Yes No Not sure To some extent12. Rank the following training criteria based on its importance. (Highest=5, Lowest=1) Educational qualification Work experience Performance in test and interview Background of the candidate Physical fitness.13. The present TNI system is Highly effective Effective Neutral Non effective Highly non effective14. Is TNI system necessary?.................................

15. Training provided by IOCL is(put a cross on the line where u feel is appropriate) Modern:__:__:__:__:__:__:__:Outdated

Unreliable:__:__:__:__:__:__:__:Reliable

…………………………….............XXXXXXX....................................................................

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