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Training and Development- IndianOil _______________________________________________________________________ _

TRAINING AND DEVELOPMENT


Introduction
Every organization needs to have well trained and experienced people to perform the activities that have to be done. Training is a process of learning a sequence of programmed behaviour. It is application of knowledge. It gives people an awareness of the rules and procedures to guide their behaviour. It attempts to improve their performance on their current job and prepare them for an intended job. evelopment is a related process. It covers not only those activities which improve job performance! but also which bring about the growth of the personality" help individuals in the progress towards maturity and actualization of their potential capabilities so that they become not only good employees but better men and women. In organizational terms! it is intended to equip person to earn promotions and hold greater responsibility. Training a person for a bigger and higher job is development. #nd this may well include not only imparting specific skills and knowledge but also inculcating certain personality and mental attitudes. #s the jobs become more complex! the importance of employee development also increases. In a rapidly changing society! employee training and development are not only an activity that is desirable but also an activity that an organization must commit resources to if it is to maintain a viable and knowledgeable work force.

Training and Development- IndianOil _______________________________________________________________________ _ Training has played a very important role in helping the corporation to reach the commanding heights of performance. #ny training would be considered to be successful only when the knowledge gained by the participants is transferred to the job performance Training is the main function of $%. To enhance the &orporation's growth and keep the &orporation ready to anticipate all types of competition and face it too! there is a need that $uman %esource should play more active role for overall progress of the &orporation. The impact of training programme is to mould the employee(s attitude and help them to synergies individual goals with organizational goals. It also helps in reducing dissatisfaction! complaints! absenteeism and labour turnover.

Definition
#ccording to Flippo, Training is the act of increasing knowledge and skills of an employee for doing a particular job) The major outcome of training is learning. # trainee learns new habits! refined skills and Training can also be defined as useful knowledge during their training programme! which helps them to improve their performance. activities designed to change the behaviour. #nother way of defining training would be a planned programme designed to improve performance and bring about measurable changes in knowledge! skills! attitudes and social behaviour of employees.

Training and Development- IndianOil _______________________________________________________________________ _ Training imparts the ability to detect and correct error. *urther more it provides skills and abilities that may be called on in the future to satisfy organisation(s human resources needs.

Manage

ent de!elop

ent

+anagement development is an attempt at improving an individual(s managerial effectiveness through a planned and deliberate process of learning. *or an individual this means a change through a process of planned learning. This should be the common and significant aim of development from the point of view of the trainer and the trainee in an organisational setting. ,#ll development is self development. It must be generated within the main himself. evelopment is highly individual. The development of an individual is due to his day to day experience on a job. $ence! emphasis should be on experiences from day to day work. #ny activity designed to improve the performance of existing managers and to provide for a well planned growth of managers to meet future organisational needs is management development. The change in the individual must take place in those crucial areas which can be considered as output variables.nowledge change" #ttitude change /ehaviour change 0erformance change End1operational results 2the last two changes being the result of the first three changes3

Training and Development- IndianOil _______________________________________________________________________ _

Training P"ilo#op"$%
Training constitutes an important component of overall $uman %esource +anagement 2$%+3 strategy. It is a part of the $uman %esource +anagement efforts of the organization that enables the employees of the organization to continuously update their functional knowledge and skills in various disciplines. The employees should be familiar with the latest technological developments! organizational procedures and system as well as various +anagement concepts. #n opportunity should! therefore! be provided by the organization to its employees! particularly in management cadre! to attend the management training courses! who in turns can share their knowledge and experience with the juniors in the organization. 4ne of the basic philosophies of the training programmes is to bring together participants of different disciplines from different regions so that they can exchange their work experience and the problems being encountered! with other participants. #fter employees have been selected for various positions in an organization! training them for specific task to which they have been assigned! assumes great importance. Training is an important activity in an organization.

Feature# of training
Increase knowledge and skill for doing a job. 4

Training and Development- IndianOil _______________________________________________________________________ _ /ridge the gap between job needs and employee skills. 5ob oriented process! vocational in nature 6hort1term activity designed especially for operatives.

O&'ecti!e# of Training
The overall training objective is to develop required knowledge! skills and attitudes of our employees so that they can perform more productively and achieve the business goals. It is recognized that the employees learn primarily from on1the1job experience. Therefore! in achieving this objective! the primarily contribution is from on1the1job training and supporting contribution from the formal training effort. () To i part &a#ic *no+ledge and #*ill to ne+ entrant# and to perfor plo$ee to t"e 'o& +ell) eet t"e c"anging re-uire ent of

ena&le t"e ,) To e-uip e

t"e 'o& and organi.ation) /) To teac" t"e e perfor 0) To prepare e plo$ee# t"e ne+ tec"ni-ue and +a$# of ing t"e 'o& or operation#) plo$ee# for "ig"er le!el ta#* and &uild up petent anager#)

a #econd line of co

Training has always played an important and integral part in furthering many kinds of human learning and development. $owever! the fact that training can make an important! if not crucial! contribution to organizational effectiveness is only now being recognized fully. &ompanies! organizations and government are beginning to appreciate the value of adequate! consistent and long term investment in this function.

Training and Development- IndianOil _______________________________________________________________________ _ Training and evelopment programmes help remove performance deficiencies in employees. This is particularly true when 7 The deficiency is caused by a lack of ability rather than a lack of motivation to perform. The individual2s3 involved have the aptitude and motivation needed to learn to do the job better. 6upervisors and peers are supportive behaviours. There is greater stability! flexibility and capacity for growth in an organization. Training contributes to employee stability in two ways. Employees become efficient after undergoing training. employees contribute to the growth of the organization. Efficient 8rowth of the desired

renders stability to the workforce. *urther! trained employees tend to stay with the organization. They seldom leave the company. Training makes the employee versatile in operations. transferred to any job. #ll rounder can be 8rowth *lexibility is therefore ensured.

indicates prosperity! which is reflected in increased profits from year to year. #ccidents! scrap and damage to machinery and equipment can be avoided or minimized through training. Even dissatisfaction! complaints can be reduced if employees are trained well. Training is an investment in human resource with a promise of better returns in futures. # company(s training and development pays dividends to the employee and the organization. Though no single training programme yields all the benefits! the organization! which devotes itself to training and development! enhances its human resource capabilities and strengthens its competitive edge. #t the same time! the employee(s

Training and Development- IndianOil _______________________________________________________________________ _ personal and career goals are furthered! generally adding to his abilities and value to the employer.

Role and 1cope of Training


Training has been performing a very important role in helping the &orporation to reach the commanding heights of performance over the years. The vitality of an organization depends upon its capacity to adapt itself to change. #nd the current changing environment calls for this the most. Training plays a vital role in this regard. The primary role of training is to assist the employees in their pursuit of knowledge and self1actualization! expounding the belief that there are no limits to human potential and growth and such potential should get transformed into reality. #ny training would be considered successful only when the knowledge gained by the participants of various programmes is transferred to their job performance. #ll formal training activities conducted by the Training &entres at $ead 4ffice and at %egional 4ffices are in line with the organizational needs. *ormal training efforts of the Training &entres are directed towards supplementing the primary training process which takes place on1the1 job.

Need for &a#ic purpo#e# of training


The need for the training of employees would be clear from the observations made by the authorities 1. To Increase 0roductivity- ,Instruction can help employees increase their level of performance on their present assignment. Increased human performance often directly leads to increased 7

Training and Development- IndianOil _______________________________________________________________________ _ operational productivity and increased company profit.9 #gain! , increased performance and productivity! because of training! are most evident on the part of new employees who are not yet fully aware of the most efficient and effective ways of performing the jobs.9

2. To Improve :uality- ,/etter informed workers are less likely to make operational mistakes. :uality increase may be in relationship to a company product or service! or in reference to the intangible organisational employment atmosphere.9 3. To $elp a &ompany *ulfill its *uture 0ersonnel ;eeds,4rganisations that have a good internal education programme will have to make less drastic manpower changes and adjustments in the event of sudden personnel alterations. <hen the need arises! organisational vacancies can more easily be staffed from internal sources if a company initiates and maintain an adequate instructional programme for both its non1 supervisory and managerial employees.9

4. To Improve 4rganisational &limate- #n endless chain of positive reactions results from a well planned training programme. 0roduction and product quality may improve" financial incentives may then be increased! internal promotions become stressed! less supervisory pressure ensure and base pay rate increase result. Increased morale may be due to many factors! but one of the most important of these is the current state of an organisation(s educational endeavour.9

Training and Development- IndianOil _______________________________________________________________________ _ 5. To Improve $ealth and 6afety- ,0roper training can help prevent industrial accidents. # safer work environment leads to more stable mental attitudes on the part of employees. +anagerial mental state would also improve if supervisors know that they can better themselves through company1designed development programmes.9

6. 4bsolescence

0revention-

,Training

and

development

programmes foster the initiative and creativity of employees and help to prevent manpower obsolescence! which may be due to age! temperament or motivation! or the inability of a person to adapt himself to technological changes.( 7. 0ersonal 8rowth- ,Employees on a personal basis gain individually from their exposure to educational experiences.9 #gain! ,+anagement development programmes seem to give participants a wider awareness! an enlarged skill! and enlightened altruistic philosophy! and make enhanced personal growth possible.

Need for training


a3 #n increased use of technology in production" b3 =abour turnover arising from normal separations due to death or physical incapacity! for accidents! disease! superannuation! voluntary retirement! promotion within the organization and change of occupation or job.

Training and Development- IndianOil _______________________________________________________________________ _ c3 ;eed for additional hands to cope with an increased production of goods and services" d) Employment of inexperienced! new or badli labour requires detailed instruction for an effective performance of a job. e3 ;eed for reducing grievances and minimizing accident rates. f3 ;eed for maintaining the validity of an organization as a whole and raising the morale of its employees. &ollectively! these purposes directly relate to and compromise the ultimate purpose of organisational training programmes to enhance overall organisational effectiveness.

portance of training

Training is the corner1stone of sound management! for it makes employees more effective and productive. It is actively and intimately connected with all the personnel or managerial activities. It is an integral part of the whole management programme! with all its many activities functionally interrelated. There is an ever present need for training men so that new and changed techniques may be taken advantage of and improvements affected in the old methods! which are woefully inefficient. Training is a practical and vital necessity because! apart from the other advantages! it enables employees to develop and rise within the organization! and increase their ,market value9! earning power and job security. It enables management to resolve sources of friction arising from parochialism! to bring home to the employees the fact that the management is not divisible. It moulds the employees( attitudes and 1

Training and Development- IndianOil _______________________________________________________________________ _ helps them to achieve a better co1operation with the company and a greater loyalty to it. Training! moreover! heightens the morale of the employees! for its helps in reducing dissatisfaction! complaints! grievances and absenteeism! reduces the rate of turnover. *urther! trained employees make a better and economical use of materials and equipment" therefore! wastage and spoilage are lessened! and the need for constant supervision is reduced.

Training Met"od#2 Tec"ni-ue#

The forms and types of employee training methods are inter1related. It is difficult! if not impossible! to say which of the method or combination of methods is more useful than the other. Infact! methods are multifaceted in scope and dimension! and each is suitable for a particular situation. The best technique for one situation may not be best for different groups or tasks. &are must be used in adapting the technique> method to the learner and the job. #n effective training technique generally fulfills this objective" 0rovide motivation to the trainee to improve job

performance! evelop a willingness to change! provide further trainee(s active participation in the learning process. 0rovide a knowledge of results about attempts to improve 2i.e. feedback3! and permit practice where appropriate. The various training techniques are as follows11

Training and Development- IndianOil _______________________________________________________________________ _

ON3T4E56O75 TRAINING?irtually every employee! from the clerk to the president! get ,4n1The1 5ob Training9! when he joins a firm. It is primarily concerned with developing in an employee(s skills and habits consistent with the existing practices of an organization! and orienting him with his immediate problems. It is mostly given for unskilled and semi1skilled jobs1 clerical and sales jobs. Employees are coached and instructed by skilled co1workers! by supervisors! by the special training instructors. They learn the job by personal observation and practice as well as occasionally handling it. $e is learning by doing! and it is most useful for jobs that are either difficult to stimulate or can be learned quickly by watching and doing it. The main advantage of on1the1job training is that the trainee learns on the actual equipment in use and in the true environment of his job. $e! therefore! gets a feel of the actual production conditions and requirements. In this way! a transfer from a training centre or school to the actual production conditions following the training period is allowed. 6econdly! it is highly economical since no additional personnel or facilities are required for training. Thirdly! the trainee learns the rules! regulations procedures by observing their day to day applications. $e can! therefore be easily sized up by the management.

VE1TI78LE TRAINING
This method attempts to duplicate on1the1job situations in a company classroom. Its is a class room training which is often imparted with the 12

Training and Development- IndianOil _______________________________________________________________________ _ help of the equipment and machines which are identical with those in use in the place of work. This technique enables the trainee to concentrate on learning the new skills rather than on performing on the actual job. In other words! it is geared to job duties. Theoretical training is given in the class room! while the practical work in conducted on the production line. It is a very efficient method of training semi1skilled personnel! particularly when many employees have to be trained for the same kind of work at the same time. It is often used to train clerks! bank tellers! inspectors! machine operators! testers! typists! etc. It is most useful when philosophic concepts! attitudes! theories and problem solving abilities have to be learned. Training is generally given in the form of lectures! conferences! case studies! role playing and discussion. The various advantages of vestibule training are#s training is given in a separate room! distractions are minimized. # trained instructor! who knows how to teach! can be more effectively utilized. The correct method can be taught without interrupting production. It permits the trainee to practice without the fear of the supervisors> co1workers observation and their possible ridicule.

OF5T4E56O7 MET4OD1%
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Training and Development- IndianOil _______________________________________________________________________ _ ,4f1the1job training9 simply means that training is not a part of everyday job activity. The actual location may be in the company classroom or in the places which are owned by the company! or in universities or in associations which have no connection with the company. This method consists of@. =ectures A. &onferences B. 8roup iscussions C. &ase 6tudies D. 0rogrammed Instructions

() Lecture#%
=ectures are regarded as one of the simplest ways of imparting knowledge to the trainees! esp. when facts! concepts! or principles! attitudes! theories and problems1solving abilities are to be taught. =ectures are formal organized talks by the training specialists! the formal superior or other individual specific topics.

The lecture methods can be used for very large groups which are to be trained within a short time! thus reducing the cost per training. It can be organized rigorously so that ideas and principles relate properly. =ectures are essential when it is a question of imparting technical or special information of a complex nature. They are usually enlivened with discussions! film shows! case studies! role1 playing and demonstrations.

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Training and Development- IndianOil _______________________________________________________________________ _ In training! the most important uses of lectures include%educing anxiety about upcoming training programmes or organisational changes by explaining their purposes. Introducing a subject and presenting an overview of its scope. 0resenting basic material that will provide a common background for subsequent activities. Illustrating the application of rules! principles" reviewing! clarifying and summarizing. The main advantage of lecture system is that it is simple and efficient and though it is more materialistic it can be presented within a given time.

() 9onference

et"od%

In this method! the participating individuals Econfer( to discuss point of common interest to each other. # conference is basic to most participative group1centered methods of development. It is a formal meeting! conducted in accordance with an organized plan! in which the leader seeks to develop knowledge and understanding by obtaining an considerable amount of oral participation of the trainees. It lays emphasis on small group discussions! on organized subject matter! and on the active participation of the members involved. =earning is facilitated by building up on the ideas contributed by the conferees. The conference is ideally suited for the purpose of analyzing problems and issues and examining them from different view points. It is an excellent method for development of conceptual knowledge and for reducing dogmatism and modifying attitudes 15

Training and Development- IndianOil _______________________________________________________________________ _ because the participants develops solutions and reach conclusions! which they often willingly accept.

,) Group di#cu##ion#%
This is an established method for training. # group discussion is conducted in many waysIt may be based on a paper prepared by one or more trainees on a subject selected in consultation with the person incharge of the group discussion. It may be a part of a study or related to theoretical studies or practical problems. The trainees read their papers! and this is followed by critical discussion. It may be based on the statement made by the person incharge of the group discussion or on a document prepared by an expert! who is invited to participate in the discussion. The person incharge of the group discussion distributes in advance the material to be analysed in the form of required readings. The group discussion compares the reaction of trainees! encourages discussion! defines the general trends and guides the participant to certain conclusions.

() 9a#e #tudie#%
,The case study is based on the belief that the managerial competence can best be attained through study! contemplation and discussion of concrete cases.9 The Ecase( is the set of data! written or oral miniature! description and summary of such data that present issues and problem calling for solutions or action on the part of trainee. <hen the trainees are given cases to analyse! they are asked to identify the problem and recommend tentative solution 16

Training and Development- IndianOil _______________________________________________________________________ _ for it. This method offers to the trainees matter for reflection and brings home to them a sense of complexity of life as oppose to theoretical simplifications of! and practices in the decision1making process. The case study is primarily useful as a training technique for supervisors and is specially valuable as the technique of developing decision1making skills and for broadening the perspective of the training. 2. Progra

ed in#truction%

0rogrammed instruction involves a sequence of steps which are often set up through the central panel of an electric computer as guides in the performance of a desired operation or series of operations. It incorporates a pre1arranged! proposed! or desired course of proceedings pertaining to the learning or acquisitions of some specific skills or general knowledge. # programmed instruction involves breaking information down into meaningful units and then arranging these in a proper way to form a logical and sequential learning programme or package.

E!aluation of training progra

4bjectives of training evaluation is to determine the ability of the participant in the training programme to perform jobs for which they were trained! the specific nature of training deficiencies! whether the trainees required any additional on the job training! and the extent of training not needed for the participants to meet the job requirements.

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Training and Development- IndianOil _______________________________________________________________________ _ Evaluation of the training programme must be based on the following principlesEvaluation specialist must be clear about the goals and purpose of evaluation. Evaluation must be continuous. Evaluation must provide the means and focus for trainers to be able to appraise themselves! their practices! and their products. Evaluation must be based on objective methods and standards. %ealistic target dates must be set for each phase of the evaluation process. # sense of urgency must be developed! but deadlines that are unreasonably high will result in poor evaluation. There are various approaches to training evaluation. To get a valid measure of training effectiveness! the personnel manager should accurately assess trainee(s job performance two or four months after completion of training.

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Training and Development- IndianOil _______________________________________________________________________ _

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Training and Development- IndianOil _______________________________________________________________________ _

CASE STUDY

Training and Development- IndianOil _______________________________________________________________________ _

T"e Indian Petroleu

Indu#tr$

The 0etroleum industry in India stands out as an example of the strides made by the country in its march towards economic self1reliance. #t the time of independence in @FCG! international companies controlled the industry. Today! a little over DH years later! the industry is largely in the public domain with skills and technical know1how comparable to the highest international standards. The testimony of its vigour and success during the past five and half decades is the significant increase in crude oil production from H.AD to H.BB million tonnes per annum and refining capacity from H.B to @HB million metric tonnes per annum. The consumption of petroleum products has grown BH times in the last DH years from B million tonnes during @FCI1CF to about @HG.G million tonnes in AHHB1HC! an increase of B.DJ over @HC.@ million tonnes registered in AHHA1HB. # vast network of over AF!HHH dealerships and distributorships has been developed backed by over CHH storage points over the years to serve the people even in the remote and once1inaccessible areas.

Oil production : con#u


@FFG &rude oil production &rude oil consumption eficit 2+et by Imports3 BA.F KA.F

ption in India;Million ton#<


@FFI BB.F KD.A @FFF AHHH AHH@ BA.G KI.D BA IK BA.D @HB.D

2BB.F3 2BC.D3 2BF.I3 2DC.H3 2G@.H3

In order to understand the level of Indian demand for petroleum products in a global perspective! the following table furnishes a

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Training and Development- IndianOil _______________________________________________________________________ _ comparison of per capita consumption of petroleum products in the various parts of the world. 2.ilograms per annum3 L L L L India &hina ;orth #merica <orld average FI @KD A!K@H DID

<ith the per capita consumption level in India being only about KHJ of that in &hina! a strong growth potential exists in India! given particularly a large population base of over a billion.

Gro+t"
In the DH years since independence India has witnesses a significant growth in the refining facilities and increase in the number of refineries from one to eighteen now. The first decade of Independence 2@FCG1 DG3 saw the establishment of three costal refineries by multinational oil companies operating in India at that time! viz. /urmah 6hell! Esso 6tanvac and &altex" the first two at +umbai and the third at ?ishakhapatnam. # major boost to the oil industry came in pursuance of the Industrial 0olicy %esolution! @FDK that intended to promote growth of the vital sectors such as petroleum under the 6tate control. 4;8&! which was formed a in @FDK. The second decade 2@FDG1KG3 witnessed the setting up of the Indian %efineries =td. in @FID! a wholly owned public sector 8overnment &ompany. Mnder its banner three refineries were set up at 8uwahati 22 irectorate in @FDD! became a &ommission

Training and Development- IndianOil _______________________________________________________________________ _ 2#ssam3! /arauni 2/ihar3 and .oyali 28ujarat3 essentially to process the indigenous crude discovered in #ssam and 8ujarat. In @FDF! the Indian 4il &ompany 2I; I#;4I=3! again a wholly owned 8overnment Indian company! was formed for marketing of petroleum products. 4il &orporation =td. on @st 6eptember @FKC. The next ten years period 2@FKG1GG3 witnessed the establishment of two refineries! one with equity participation from #merica and Iranian companies at &hennai and another in the public sector at $aldia by Indian 4il. The 0eriod @FGG1IG saw the commissioning of two more refineries in the public sector. The refinery at /ongaigaon was the first experiment in having an integrated petroleum refinery1cum1petrochemicals unit. The other refinery was set up at +athura in @FIA. +ajor expansions of the coastal refineries at +umbai! &ochin! &hennai and ?ishakhapatnam were also completed during this period. The notable feature of the capacity additions during this decade have been the extensive utilization of the process design capabilities of +>s. Engineers India =td. and installation of 6econdary 0rocessing *acilities to increase the production of much required kerosene! diesel and =08. uring the fifth decade 2@FIG1FG3! a small refinery of H.D ++Tpa 2+illion metric tonnes per annum3 at ;agapatinnam was built in Tamil ;adu. It is based on crude from adjoining fields. In @FFK! a ++Tpa refinery was built in the joint sector at +angalore between $0&= and Indian %ayon. This decade also saw significant expansion to the capacities of the existing refineries! thereby raising the refining capacity to about KA ++Tpa.

%efineries =td. was merged with Indian 4il &ompany =td. to form Indian

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Training and Development- IndianOil _______________________________________________________________________ _ $owever! the production of crude oil increased to over BD million tonnes per annum in the year @FFG1FI. This represents only less than DHJ of country(s requirement of petroleum. The balance had to be made good by imports putting our foreign exchange to a great strain. &onsidering the ever1growing demand of petroleum at the rate of about GJ per annum! and the dwindling reliance on indigenous production of oil and natural gas! the 8overnment of India! in @FF@ decided to open up the exploration and production of oil and natural gas to the private sector. The ministry of petroleum invited bids from the private parties > consortiums! in a number of bidding rounds. &onsequently! as many as A@ small oil1gas fields and more than a dozen exploration blocks were awarded to private parties! for exploration and production work. It was also decided by government to import =iquefied ;atural 8as! to meet the ever1growing requirement of natural gas in the country. The government also decided to open up oil exploration in the deeper continental shelf by private parties. <ith the setting up of 0anipat %efinery in @FFF1AHHH! there are @I refineries operating in the country! @D in the public sector! one in the joint sector and one in the private sector! with an installed capacity of @HA million metric tonnes per annum. The year AHHB1HC saw important developments in 8overnment policy as well a concerted efforts by individual companies to align their plans and progress with the free market scenario. 4n the disinvestments front! the 8overnment of India successfully sold @HJ of its equity in 4il N ;atural 8as &orporation =td.24;8&3 and 8#I= 2India3 =td. during the year. The 8overnment also sold its residual Earlier in AHHA! equity of AKJ in I/0 &o. =td. through public offer. 24

Training and Development- IndianOil _______________________________________________________________________ _ Indian4il had acquired BB.DIJ of 8overnment of India(s equity in I/0 through competitive bidding process! and thereafter acquired another AHJ through open offer to the public. In the upstream sector! the 8overnment of India signed AH contracts for oil N gas exploration under the fourth round of ;ew Exploration =icensing 0olicy 2;E=03 and eight contracts under the second round of the &oal /ed +ethane 2&/+3 0olicy. 6ignificant hydrocarbon discoveries in the blocks awarded earlier enhanced the prospects of finding more oil N gas reserves in the country. *or enhancing the country(s oil security! the 8overnment decided to set up D million tonnes of strategic crude oil storage in the country at +angalore and ?ishakhapatnam! which will be built and operated by Indian4il.

De
De

and for Petroleu


and gro+t" fro

Product#

(==( 5 ,>>(

The Indian 8 0 and energy consumption have each grown at the rate of about KJ per annum from @FF@ to AHH@. &orrespondingly the demand for petroleum products has been growing steadily as shown below8rowth rates- &rude processing N demand for petroleum products 2@FFH1F@ to AHHH1H@3 &ompound &onsumption &onsumption #vg. in year ended in year ended growth B@.HB.@FF@ B@.HB.AHH@ rate DA million @HB million &rude oil processing D.@ J tons tons emand for total DD million FC million tons D.D J 0etroleum products tons

L L

T"reat#%

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Training and Development- IndianOil _______________________________________________________________________ _ Towards end of the year! the major concern of the petroleum industry was the rising cost of crude oil. <hile the uprising in gross refining margins helped improve the bottom line! Indian refiners were severely impacted by the ever1rising and fluctuation price of crude oil and products in the international market. 6ince our country is still dependent on imports to the extent of GHJ of its requirement! we shall continue to be subject to volatility in the international prices of oil. The strengthening of the Indian %upee against the M6 the impact partially. ollar helped limit &oncerted steps taken by the 8overnment to

augment indigenous production through the ;E=0 rounds! and encouragement to Indian companies in acquiring equity oil and gas abroad! are therefore steps in the right direction

Introduction%
0etroleum is one of the most valuable natural resource in the world. 6ome people call it as ,/lack 8old9! but it may be better described as the =ife /lood of Industrialised &ountries. The Indian oil sector is in the threshold of major changes. The 8overnment of India had already decanalised some products like 26

Training and Development- IndianOil _______________________________________________________________________ _ *urnace 4il! #viation Turbine *uel etc and also trying to decontrol $igh 6peed iesel! +otor 6pirit! =iquefied 0etroleum 8as! 6uperior .erosene 4il etc in the near future. In spite of 8overnment regulations there exists an intense competition among the existing oil companies. The flexibility of grabbing more market share will intensify after decontrol of these products from the 8overnment. &onsumption of 0etroleum products is an index of a country(s development! industrialisation and economic well1being. *rom an annual consumption of less than B +illion Tonnes in @FCI1@FCF India(s 0etroleum products consumption has grown to @HG.G +illion Tonnes in AHHB1AHHC. It shows the growth rate of 0etroleum Industry in the country in the post independence period. In order to protect national interest! the 8overnment of India decided to establish a nationally owned and controlled 4il Industry in the India under the +inistry of 0etroleum and ;atural 8as. Indian4il &orporation as an idea was born out of the Industrial 0olicy %esolution of @FDK and since then has emerged as one of the largest and leading corporations in the world. Indian Oil 9orporation Li ited ;INDIANOIL< is the (?th largest

0etroleum &ompany in the <orld. I; I#;4I= is ranked @DBrd among the DHH largest companies in the world. 2as per the *ortune =isting3. It is the only 0ublic 6ector Mndertaking among EIndia(s Top @H &ompanies( listed by the *ar Eastern Economic %eview in AHHC. Indian4il has also been adjudged ;o.@ in petroleum trading among the national oil companies in the #sia10acific region.

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Training and Development- IndianOil _______________________________________________________________________ _ In another major feat! Indian4il was ranked among the top @H E/est Employers in India7AHHC( in a joint survey conducted by /usiness Today and $ewitt #ssociates across AAH organizations. *or @Dth consecutive year! Indian4il earned EExcellent( rating for its performance in its +4M with the 8overnment of India for the year AHHB1HC. Indian4il started with a sales turnover of %s. @HF crores and a profit of @ crore in @FKC1KD. In the year AHHD1HK I; I#;4I= has achieved a sales turnover of %s.@!IB!AHC>1crores 2profits of %s. C!F@D crores for AHHD1HK3. The total sales volume 2inclusive of export sales3 increased from CG.DK++T in AHHA1HB to CI.K@++T in AHHB1HC! registering a growth of A.A J. The &orporation recorded the highest ever 0rofit /efore Tax of %s.F!KF@ crore 2%s.A!KIK crore tax3 during AHHB1HC as against %s.I!C@C crore 2%s. A!AFF crore Tax3 in AHHA1HB! registering a growth of @D.A J. The 0rofit before tax for the year ending AHHD1HK was K!GHK>1crores.

Indian4il deals with various petroleum products. The &ompanies main products are@. *uel and *eedstock A. =ubes and 8reases B. 0etrochemicals and specialties C. =iquefied 0etroleum 8as > =08 D. +otor 6pirit > 8asoline K. 6uperior .erosene 4il > .ero G. $igh 6peed iesel > 8as 4il I. #viation Turbine *uel > 5et .ero 28

Training and Development- IndianOil _______________________________________________________________________ _ F. =ubricants

4i#tor$
In the late @FDHs Indian oil industry was dominated by three +ulti national &ompanies! viz.! 6hell! Esso and &altex. The country was dependant on refined petroleum products imported into the country by these companies. In the year @FDK! 0arliament passed an Industrial 0olicy %esolution bringing 4il under the purview of the 6tate sector as a step to bring all the industries of basic and strategic importance into the 0ublic 6ector. In @FDI! a 0ublic 6ector &ompany called Indian %efineries =imited was set up! followed by a marketing organisation called Indian 4il &ompany =imited In @FDF. /y 6eptember @FKC both these companies were merged and Indian 4il &orporation was formed. In @FGH! the +ultinational 4il &ompanies were nationalized and this led to the emergence of /harat 0etroleum &orporation =imited 2/0&=3 2from 6hell3 and $industan 0etroleum &orporation =imited 2$0&=3 2from Esso and &altex3. #part from this 8overnment also formed Indo1/urma 0etroleum 2I/03 =imited. <hile the three oil majors have their own refineries! I/0 relied only on marketing. =ater #ssam 4il &ompany was merged with I; I#;4I=! and a separate division known as #ssam 4il ivision 2of I; I#;4I=3 was formed. #part from this other public and private sector companies like +adras %efineries =imited! &ochin %efineries =imited! /ongaigaon %efineries and 0etrochemicals =imited! I0&=! %eliance 0etroleum! Essar 4il =imited also entered the market at later stages. Initially they were not 29

Training and Development- IndianOil _______________________________________________________________________ _ given any marketing rights for the controlled oil products but could refine crude oil and sell through the nationalized oil companies. /ut! after the withdrawal of #dministered 0ricing +echanism 2#0+3! 2in AHHA3 these oil companies were allowed to sell these decontrolled products through the %etail 4utlets or by bulk to direct customers. Indian4il holds over BBJ of the country's refining share 2CAJ! if the capacity of recently acquired subsidiaries is also added3. #ll refinery units are accredited with I64 FHHA and I64 @CHH@ certifications. It(s +athura refinery is the first refinery in #sia and the third in the world to earn the /ritish 6tandard 2/6- GGDH3 and I641@CHH@ certifications in environmental management. The refinery network is presented with its installed refining capacity-

IndianOil Refineries: Installed Capacities


(In MMTPA)

Refinery

As on 1.4.2000

As on 1.4.2001

As on 1.4.2002

As on 1.4.2003

As on 1.4.2004

As on 1.4. 2005

Training and Development- IndianOil _______________________________________________________________________ _


IOC IOC- Gu a!ati IOC- "arauni IOC- $oyali IOC- &aldia IOC- 'at!ura IOC- )i*+oi IOC- ,anipat -u+-.otal IOC IOC -u+sidiaries C,C0- C!ennai C,C01ari2ana2 "R,0"on*ai*aon -u+-.otal IOC -u+isdiaries IOC-.otal34it!-u+sidiaries5
1.0 3.3 13.0 4.# %.5 0.#5 #.0 3#.05 #.5 0.50 2.35 /.35 45.40 1.0 4.2 13.% 4.# (.0 0.#5 #.0 3(.15 #.5 0.50 2.35 /.35 4%.50 1.0 4.2 13.% 4.# (.0 0.#5 #.0 3(.15 #.5 0.50 2.35 /.35 4%.50 1.0 #.0 13.% 4.# (.0 0.#5 #.0 3/./5 #.5 1.0 2.35 /.(5 4/.(0 1.0 #.0 13.% #.0 (.0 0.#5 #.0 41.35 /.5 1.0 2.35 12.(5 54.20 1.0 #.0 13.% #.0 (.00 0.#5 #.0 41.35 /.5 1.0 2.35 12.(5 54.20

Indian4il holds over BBJ of the country's refining share 2CAJ! if the capacity of recently acquired subsidiaries is also added3. #ll refinery units are accredited with I64 FHHA and I64 @CHH@ certifications. It(s +athura refinery is the first refinery in #sia and the third in the world to earn the /ritish 6tandard 2/6- GGDH3 and I641@CHH@ certifications in environmental management. The refinery network is presented below with its installed refining capacity. The Indian4il group of companies owns and operates @H out of @I 4il refineries in the country with a current combined rated capacity of DG.IH million metric tonnes per annum 2++T0#3 or one million barrels per day 2bpd3. These include two refineries of subsidiary &hennai 0etroleum &orporation =imited and /ongaigaon %efinery N 0etrochemicals limited to increase its refining capacity . located at 8uwahati and 0anipat 2$aryana3. These are

igboi 2#ssam3! /arauni 2/ihar3! .oyali

2/aroda!8ujarat3! $aldia 2<est /engal3! +athura 2Mttar 0radesh3 and &ontinuous innovation and up gradation of

31

Training and Development- IndianOil _______________________________________________________________________ _ technology have resulted in high efficiency and optimum capacity utilization. <ith sales of CF.K@ +illion Tonnes in AHHD1HK! Indian 4il holds over D@.A J of +arket share. 2with the acquisition of I/0 it holds around KH J of the market in India3 The &orporation(s employee strength as on +arch B@! AHHK was BH!IH@! including @H!CBG officers. There are A!CHK women employees including GGD officers! constituting G.IJ of the total manpower. These employees are engaged in &rude 4il %efining! 0ipeline Transportation and +arketing of 0etroleum 0roducts. It is the sole canalizing agency for the import and export of &rude 4il and *inished 0etroleum products. I; I#;4I= has five divisions@3 A3 B3 C3 D3 %efineries 0ipelines +arketing ivision ivision ivision evelopment ivision and

%esearch and

#ssam 4il division.

#s the name suggests %efineries division is into refining of imported and local crude which is available in India. In maximum cases it crosses the installed capacity utilization. %esearch and development division is into developing new lubes and lube formulations required for the current market. *rom its inception it has formulated more than AHHH lube formulations. #ssam 4il division is into refining and also marketing of oil products in the northeast part of India. The marketing division has its $ead 4ffice at +umbai. It controls a network of over AA!HHH sales points spread over India 2the largest in 32

Training and Development- IndianOil _______________________________________________________________________ _ the country3. These include %etail 4utlets of +6>$6 ! 6.4>= 4 dealers! =08 distributors! 6E%?4 shops etc. I; I#;4I= constantly strives to develop its nationwide pipeline network. It transports &rude 4il and *inished 0roducts through over G!DGD kms of &ross1country pipelines 2country(s largest network3. inducts the same into existing systems too. Twelve 5oint ventures are now operational in partnership with leading companies like +obil and =ubrizol &orporation 2M6#3! 4il tanking 8mb$ 28ermany3! 0etronas 2+alaysia3! +arubeni 25apan3! /harat 0etroleum &orporation =imited 2/0&=3! 4il and ;atural 8as &orporation =imited 24;8&3! I/0! %eliance 0etroleum =imited 2%0=3! Essar 4il =imited 2E4=3! 8as #uthority of India =imited 28#I=3 etc of India. In addition to products refined at its own plants! I; I#;4I= also markets the products refined by the following refineries i. ii. iii. iv. +adras %efineries =imited %eliance 0etroleum =imited &ochin %efineries =imited /ongaigaon %efineries N 0etrochemicals =imited. It keeps abreast of the latest technology when laying new systems and

T"e fa

ou# 7rand# under IndianOil

33

Training and Development- IndianOil _______________________________________________________________________ _

Indian4il's branded fuels Otra+ile and Otra0remium have made a significant impact in the petroleum retail market. Otra+ile! Indian4il's new generation $igh 6peed iesel with world1class additives has taken a leadership position in the market. The launch of premium fuels 1 Otra0remium and Otra+ile 2originally I4& 0remium and iesel 6uper respectively3! marks a new beginning for Indian4il and its customers. Otra0remium is! in fact! the only petrol in India with F@ 4ctane and doped with +ultifunctional #dditives. The maiden launch of these branded fuels took place in elhi on 6ept. AC! AHHA. 6ubsequently! Otra0remiuem sales have been extended to AHH cities and GDH petrol N diesel stations! and Otra+ile to IDH cities and @GDH petrol and diesel stations by the end of

1ERVO is India's largest selling lubricant brand. 6E%?4 ranges of lubricants enjoy approvals from major 4riginal 34

Training and Development- IndianOil _______________________________________________________________________ _ Equipment +anufacturers 24E+s3 including new generation cars. F!HHH %etail 4utlets and a countrywide network of 6E%?4 66ls and 66#s /azaar traders offer servo range of lubricants to customers. The 6ervo range of lubricants is used in almost every application covering automotive! industrial and marine sectors. 6ervo range of lubricants is fast emerging as a 8lobal /rand. 6ervo has been designated as a #uper&rand. 6ervo has genuine oil tie ups with a wide range of companies like $yundai! +aruti! /ajaj! =ancer. #nil .umble! the ever dependable sporting icon is servo /rand #mbassador. eveloped exclusively at Indian4il's world1class %N &entre at

*aridabad! there is a 6ervo lubricant for virtually every single application. <ith over CAJ market share and CDH grades! the country's leading 6ervo brand lubricants from Indian4il are sold through over I!@HH Indian4il petrol>diesel stations! over @!BHH 6ervo 6hops and a countrywide network of bazaar traders.

Indian4il Indane =08as is used in CH +illion homes as cooking fuel and commands over CIJ market share in India. Indane =08as is marketed through a network of CBDH Indane distributors. <idely used in commercial sectors like industries! hotels N restaurants! medical labs! etc. IG Indane /ottling 0lants are spread across the country with a combined bottling capacity of B.GG ++T0#. ;ew and convenient D kg Indane =08as cylinders introduced in rural and hilly regions for wider use by economically weaker sections. Indian4il's auto =08 brand #utogas is the leader in the segment. 35

Training and Development- IndianOil _______________________________________________________________________ _ +arketed through a network CI stations out of an industry total of @HB #uto =08 ispensing 6tations.

!"toga# $%&') (a# )een introd"*ed in +,dera)ad.angalore and /"m)ai mar0et#. T(i# alternative 1"el i# a good )"#ine## propo#ition in t(e long term- and IndianOil intend# to 1"rt(er e2pand it# mar0eting in a )ig 3a,

INDIANOIL 1ERVE1 981TOMER1 FROM @ARGIL TO @ANAA@8MARI%


Indian4il(s remarkable marketing and distribution network extends from .argil to .anyakumari! catering to a vast spectrum of customers including households! industries! agriculture! transport! and defence forces! with total sales crossing CF.K@ +illion +etric Tonnes in AHHD1HK. The +arketing ivision of the &orporation has its headquarters located elhi! ivisional

in +umbai. It has *4M% %egional 4ffices located at +umbai! &hennai and .olkata. There are @D 6tate 4ffices and CC 36

Training and Development- IndianOil _______________________________________________________________________ _ 4ffices including A of #ssam 4il ivision. # large network of F!@BI %etail 4utlets including IA 5ubilee %etail 4utlets serve the retail market. # total of B!DA@ .erosene> =ight iesel 4il 2= 43 dealers reach the products to the customers throughout the country. They are fed by @KA /ulk storage depots>terminals all over the country. I; I#;4I= has BD #rea 4ffices to deal with the marketing of =08. Indane &ooking 8as is distributed to over BGD lakh customers in A!@GG towns through C!BDH distributors. The &orporation has IG =08 /ottling plants with a total capacity of BK! GC!HHH tonnes per annum. I; I#;4I= has FC #viation *uel 6tations catering to &ivil and efence #ircrafts with a market share of KI J. I; I#;4I= meets around IF J requirements of #ir *orce whereas total needs of #rmy and ;avy. The company has a I641FHH@ certified! modern %esearch and evelopment &entre at *aridabad with facilities matching international standards. The centre has developed over AHHH =ubricant>8rease formulations and introduced multigrade fuel1efficient lubricants for modern vehicles and is constantly trying new ways of improving fuel efficiency and quality. I; I#;4I= has launched genuine lubricating oils for almost all brands and makes of vehicles. # wholly owned subsidiary! Indian 4il /lending =td. manufactures over CDH grades of the country(s leading 6E%?4 brand of lubricants and greases with CA J market share! and are sold through more than F!@HH &ompany retail outlets! besides a *o"ntr,3ide net3or0 o1 )a4aar trader#.

INDIANOIL5 IMPROVING T4E B8ALITA OF LIFE%


I; I#;4I= provides welfare schemes including housing! medical! sports and recreation facilities to its employees and their families. I; I#;4I= has also given top priority to its customers( interests. /e it 37

Training and Development- IndianOil _______________________________________________________________________ _ peace time or war! drought or floods! I; I#;4I= has carried oil requirements to remote hamlets! provided fuel for transport and fulfilled energy needs of the efence forces. I; I#;4I= has always been keen supporter of worthy causes such as family planning and welfare and rehabilitation of handicapped and under privileged. I; I#;4I= views energy as a means of achieving self1reliance and healthy economy. 6o it continuously strives to bring energy to life.

Pro'ect# %
Indian4il accords high priority to timely project implementation. The details of various major projects are as follows-

9o

pleted Pro'ect# %
iesel $ydrotreating and 6olvent %efinery. ?iramgam 7 .oyali crude oil pipeline 2@CI km3. .oyali1?iramgam16idhpur product pipeline 2@HA km3. .urukshetra1%oorkee1;ajibabad product pipeline 2@KG km3. =08 bottling plants at eight locations. 0ort terminal at +auritius with a tankage of @D.D T+T. e1waxing units at igboi

Ongoing Pro'ect %
=inear #lkyl /enzene unit at .oyali %efinery. iesel $ydrotreating unit at +athura %efinery. +6 quality improvement projects at +athura! .oyali and $aldia refineries. 38

Training and Development- IndianOil _______________________________________________________________________ _ 0araxylene>0urified Terephthallic #cid unit at 0anipat %efinery. 0anipat %efinery expansion from K ++T per annum to @A ++T per annum. 8rassroots refinery at 0aradip +undra1.andla crude oil pipeline 2GB km3 and conversion of the .andla 7 0anipat section of ./0= to crude oil service. 0aradip 7 $aldia crude oil pipeline 2BDB km3. 6idhpur 7 6anganer product pipeline 2DHK km3. &hennai 7 Trichy 7 +adurai product pipeline 2KIB km3. &apacity augmentation of =08 bottling plants at &hengalpet and Tikrikalan. ;aphtha transfer pipeline from #saoti to ;T0&! *aridabad. $ydrocracker =aboratory 7 0hase1II 7 at %N &entre.

Ne+ Pro'ect %
;aphtha &racker project and downstream polymer units at 0anipat. /ranch pipelines to %axaul and /aitalpur from /arauni 7 .anpur product pipeline. .oyali 1 %atlam 2AGC km3 and .oyali 7 pipeline. adri 7 0anipat gas pipeline. G depots at various locations. ockline at ;arimanam 2I km3. &onstruction of grassroots =08 bottling plants at %aipur and ?irudhachalam. ahej 2@@A km3 product

39

Training and Development- IndianOil _______________________________________________________________________ _

Di!i#ion# of Indian Oil


9orporate %
Indian4il is India(s *lagship national oil company! accounting for D@.AJ petroleum products market share! CAJ national refining capacity and KGJ downstream pipeline transportation network. In AHHD1HK ! Indian 4il sold CK.AA million metric tonnes 2++T3 of petroleum products! while its seven own refineries achieves a throughput of BG.KK ++T! and pipeline network transported CC.DH ++T of crude oil and petroleum products. Indian4il is the country(s largest commercial enterprise 7 also the first and only company to cross %s.@ lakh crore turnover 7 with a 8ross Turnover of %s. @!IB!AHC>1 crore 2approx M6P C@!HDF million3! and a net profit of %s.CF@D crore 2approx M6P @!KHB million3 for AHHB1HC. Indian4il is the sole Indian presence in *ortune(s prestigious listing of the world(s DHH largest corporations! ranked @DB and is the @Ith largest petroleum company in the world. It has been adjudged ;o.@ in petroleum trading among the national oil companies in the #sia10acific region! and is ranked BADth in the current *orbes( ,8lobal DHH9 listing of the largest public companies. Indian4il operates under the aegis of the Mini#tr$ of Petroleu a a'or, di!er#ified, tran#national, integrated energ$ co :

Natural Ga# ;MOP:NG<, 8overnment of India! with the ?I6I4; to be pan$, +it" national leader#"ip and a #trong en!iron ent con#cience,

pla$ing a national role in oil #ecurit$ : pu&lic di#tri&ution)

MI11ION 1TATEMENT%

Training and Development- IndianOil _______________________________________________________________________ _ 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. A To maximize creation of wealth! value and satisfaction for the stakeholders. B To attain leadership in developing! adopting and assimilating state1of1the1art technology for competitive advantage. C To provide technology and services through sustained %esearch and evelopment. D To foster a culture of participation and innovation for employee growth and contribution. K To cultivate high standards of business ethics and Total :uality +anagement for a strong corporate identity and brand equity. G To help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience.

O&'ecti!e# and O&ligation# of t"e 9o

pan$

O&'ecti!e# of t"e co

pan$

To serve the national interests in the oil and related sectors in accordance and consistent with 8overnment 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. 41

Training and Development- IndianOil _______________________________________________________________________ _ To work towards the achievement of self1sufficiency 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 minimize>eliminate their imports and to have next generation products. To maximize utilization of the existing facilities in order to improve efficiency and increase productivity. To optimize utilization of its refining capacity and maximize distillate yield from refining of crude to minimize foreign exchange outgo. To minimize fuel consumption in refineries and stock losses in marketing operations to effect energy conservation. To further enhance distribution network for providing assured service to customers throughout the country through expansion of reseller network as per +arketing 0lan>8overnment approval. To avail of all viable opportunities! both national and global! arising out of the liberalization policies being pursued by the 8overnment 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 N production.

Financial O&'ecti!e#
To ensure adequate return on the capital employed and maintain a reasonable annual 42 ividend on its equity capital.

Training and Development- IndianOil _______________________________________________________________________ _ To ensure maximum economy in expenditure. To manage and operate the facilities in an efficient manner so as to generate adequate internal resources to meet revenue cost and requirements for project investment! without budgetary support. To develop long1term corporate plans to provide for adequate growth of the activities of the &orporations. To endeavour to reduce the cost of production of petroleum products by means of systematic cost control measures. To endeavour to complete all planned projects within the stipulated time and cost estimates.

Perfor

ance Grap"# ,>>C5>D

43

Training and Development- IndianOil _______________________________________________________________________ _

O&ligation# %
To+ard# cu#to er# and dealer# %

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

To+ard# #upplier#%
To ensure prompt dealings with integrity! impartiality and courtesy and promote ancillary industries.

To+ard# e

plo$ee#%
their capability and advancement through

evelop

appropriate training and career planning. Expeditious redressal of grievances*air dealings with recognized representatives of employees in pursuance of healthy trade union practice and sound personnel policies.

44

Training and Development- IndianOil _______________________________________________________________________ _

To+ard# co

unit$%

To develop techno1economically viable and environment1 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+ard# Defence 1er!ice#%


To maintain adequate supplies to efence 6ervices during normal and

emergency situations as per their requirement at different locations.

Area# Of Focu# %
@ 6trategic resitement of %etail 4utlet! specially for facilities in metros>major towns. A /igger site for %etail 4utlets on highways. B 0romote > inculcate dealers as Indian4il family member and ensure that they are ,working dealers9 and not ,absentee dealers9. iesel 4il! to

sites outside town area to facilitate better>improved 8asoline

C 0rofit maximization through 6ale of ,*ree Trade 0roduct9. Import 0arity 0ricing. 45

Training and Development- IndianOil _______________________________________________________________________ _ 0roject +anagement for faster completion of on1going project. *aster commissioning of %etail 4utlets. D :uickly create infrastructural facilities at supply locations > ivisional 4ffices to improve customer service through *aster loading of %ailway Tank <agons > Tank Trucks. :uick and accurate billing. &omputerized and modernized accounting system. Improved communication facilities. K #reas of improvement as per ,&ustomer 6atisfaction

+easurement and +anagement9 study *inance. 6upply 0oint. +aintenance.

1trengt"#
<ide field network. ealership network to assist in our direct efforts. Mp1country storages nearer to the market. =ower cost of production from old %efineries. 6trength on international trade. Eight existing %efineries.

1preading Eing# %
Indian4il has overseas offices in 6ri =anka! ubai! .uala =umpur and It has also set up +auritius to co1ordinate business activities.

subsidiaries in +auritius and 6ri =anka for implementing business 46

Training and Development- IndianOil _______________________________________________________________________ _ expansion project. SERVO lubricants are being exported to ubai! ;epal! /hutan! .uwait! +alaysia! /ahrain! Indonesia! 6ri =anka! +auritius! /angladesh etc.

Mar*eting
The marketing of petroleum products in India today is dominated by the four state1owned oil companies. Their market shares as on B@st +arch AHH@ were as follows-

L L L L

Indian 4il &orporation /harat 0etroleum &orporation $industan 0etroleum &orporation I/0 &ompany

DD J approx.L A@ J approx.L @F.D J approx.L C.D J approx.L

Indian4il has the maximum market share with DDJ followed by /harat 0etroleum &orporation with A@J and $industan 0etroleum &orporation with @F.DJ

Training At IndianOil
I; I#;4I== is the largest industrial corporation in India in terms of sales turnover. #s per the ranking by the *ortuneDHH magazine! it is ranked @DBrd largest Industrial &orporation in the world. The training department of $ead 4ffice and the %egional 4ffice look after the formal training requirements of about @GHHH employees in the +arketing ivision of the corporation. The $ead 4ffice training center looks after the management training activity of over AHHH managers in 47

Training and Development- IndianOil _______________________________________________________________________ _ +arketing ivision. In addition it also receives nominations from %efinery and 0ipelines ivisions! % N &enter! #ssam 4il ivision! Indian 4il /lending =imited 2I4/=3! 4il &o1ordination &ommittee 24&&3! 0&%#! 0II and defence personnel. It also offers an opportunity for participation in training programme to managers of organization from developing countries with whom it has co1operation agreements. The &orporation has not only established its leadership in this field! but has also gained unquestionable credibility at the international level. The credit for this achievement goes to its most potent and vital force that is the dedicated efforts of the Indian 4il employees. Indian 4ils aims at world1class excellence! which requires top1notch managerial training and development of their human resource. That is the reason why I; I#;4I= has given the highest importance to training right from its inception! which has enabled it to maintain and perpetuate its profitable and efficient existence.

E!olution of Training in INDIANOIL %


0rior to @FKC! the individual companies had their own training schemes patterned on the erstwhile oil companies approach. The early focus was on supervisory development. 6ince the organization was designed along divisional lines! the training activities were also carried out almost independently division1wise. The training in +arketing started with programmes organized by them for the ivision efence 0ersonnel

for handling of petroleum products called the 0etrol 4il and =ubricants 204=3 courses. Even as early as @FKB1KC technical programmes on fuel engineering were conducted for the sales force with the help of +4/I=! M6#. In @FKD! the #dministrative 6taff &ollege 2#6&3 was set up in 48

Training and Development- IndianOil _______________________________________________________________________ _ /ombay to conduct functional programmes in areas such as 0ersonnel +anagement and 0roductivity for I; I#;4I= personnel in addition to the 04= programmes for the efence 0ersonnel. The first few programmes were adapted from those being conducted by the /urma 6hell with guest faculty and later on with the help of internal faculty. Emphasis in the organization on training programmes was largely in the areas of handling of 0etroleum products! =iquid 0etroleum 8as 2=083 and a few bahavioural programmes. # few years later! in @FKG1KI as more programmes were added! training was taken up at the regional levels with four regional training centers! each set up headed by a /ranch Training 4fficer. Training activities in the %N 8uwahati %efinery. ivision started in early @FKHs in the *ull

In the initial years the Mnited ;ations experts

helped in organizing supervisory development programmes. /arauni! 8ujarat! $aldia! igboi 7 #ssam 4il

fledged training centers were set up in all the refineries 7 8uwahati! ivision2#4 3 and +athura with major emphasis on technical and skill1development programmes in the initial years of their existence In the @FGHs! with the help of the +arketing +anagement organized in 0rogrammes the %efinery and behavioural centers. training ivision! 8eneral were *or increased

programmes

understanding and coordination between the two divisions a series of interface programmes were organized since @FGD1GK. The Indian4il +anagement #cademy 2I+#3 started functioning in #ugust @FGF to meet the emerging training needs at selected managerial levels. The I+# was to conduct specific functional and 49

Training and Development- IndianOil _______________________________________________________________________ _ developmental programmes for officers of the %N0 ivision. The #4 by itself has a long history of emphasis on training even prior to its nationalization and integration with I; I#;4I=. ?arious technical and skill development programmes were conducted by #4 staff at all levels. The refinery at for officers and igboi being peculiar to itself in had a strong

terms of the technology and operations! specific training programmes in operations and maintenance were organized. The #4 on1the1job training. In the mid1@FGHs! the performance appraisal forms were amended in I; I#;4I= to introduce a component of training to help in the identification of training needs. In early @FIHs! the I; I#;4I= reviewed its corporate plans as a result of which the need was felt to give a different orientation to the training activity keeping in view the organisation(s development. It was also decided to have an organization development 24 3 intervention by an outside consultant with a view to develop a proper linkage between the corporate plans and human resources development. #ccordingly! 0rofessor +. #threya was invited as an 4 by the consultant! interventionist. /ased on the suggestions made emphasis was given to $uman %esources and systematic approach to training with major emphasis on planned

evelopment and it became a subsystem of the 0ersonnel function. &onsequently! there were certain organizational changes in the 0ersonnel function. The 0ersonnel function was regrouped and! group was specifically assigned the task of reorganized into three subsystems 7 0ersonnel and #dministration! Training and $% . The $% integrating the identified corporate mission with the department and individual goals! which included appropriate career planning and role analysis.

Training and Development- IndianOil _______________________________________________________________________ _ &onsequently! further changes were introduced in the #nnual 0erformance #ppraisal 2#0#3 6ystem. The #0# form was redesigned and training need identification was given more importance. In @FFH! the personnel department was redesigned as $uman %esource +anagement to reflect the greater emphasis on $% set up continued as earlier. interface programmes. #t the same time! there was considerable technical upgradation! which necessitated greater emphasis on technical training. #s a result of the $% outlook in the organization! eight disciplines were identified in the ivision namely! +arketing! =08! 4perations! Technical +arketing though the basic Thus! the training also got a fillip with

introduction of general management and leadership courses and

6ervices! 0ersonnel! *inance! 6ales! #viation and appropriate career path models drawn. The interdisciplinary programmes were introduced to expose the officers to function other than their parent discipline. 1The concept of the staple programmes 7 all officers to be exposed to them was simultaneously introduced. &oinciding with this! in keeping with the corporate objective closer > greater interface was envisaged between the divisions. In @FIG! the Tata +anagement Training &entre 2T+T&3 was invited to study the training activities in I; I#;4I=. The T+T& offered suggestions to improve the training infrastructural facilities and better utilization of manpower for training within the organization. In Indian 4il &orporation today! training committees at the &orporate office level! $ead 4ffice 2 ivision3 level! %egional>unit level play an active role in formulating training plans! review of ongoing course! etc.

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Training and Development- IndianOil _______________________________________________________________________ _ In the +arketing ivision! the training activity is organized with set ups at selected locations! at each regional headquarter level and at the head office. organized at The workmen training is organized at the selected regional headquarters! apart from the training locations while officers( training and some workmen training are programmes for direct recruits and promotee officers and the middle and senior level officers at the $4. In the %efineries and 0ipelines ivisions! each refinery has a

comprehensive training set up taking care of both workmen training! officer training for junior and mid level officers and management training programmes for direct recruits while the Indian +anagement #cademy 2I+#3 organizes programmes for middle and senior level officers in addition to the 5unior Executive for 0romottee officers. The 0ipeline training activities are also organized on a three1tier basis with unit>location! regional office and head office handling workmen training! middle and junior level officer training programmes and external and middle and senior level officers training respectively. The internal training programmes at the head office level for mid>senior level officers is taken up by the I+#. 4ver the past few years there has been a substantial increase in the number of employees exposed to training in the various divisions of I; I#;4I=. In addition to the efforts of the training department in I; I#;4I=! certain training programmes are conducted by other departments like *ire N 6afety epartment and Inspection etc. evelopment programmes

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Training and Development- IndianOil _______________________________________________________________________ _ 4ver the years the I; I#;4I= has invested substantial amount of financial resources into training.

Training MI11ION %
@ To facilitate the process of integration of personal ambitions and aspirations of employees with the corporate objectives through training interventions. A To continuously and scan the environment! need1based review to training ensure programmes design inputs

achievement of high level of excellence in customer satisfaction. Equip work1force with skills to make Indian4il &orporation a global player. B #ssist > guide the employees in their pursuit of knowledge and self1actualization! expounding the belief that there are no limits to human potential and growth. C *acilitate the induction of new employees into Indian4il &orporation through suitable orientation programmes. D Enable through training! efence 6ervices to efficiently handle storage! distribution and consumption of petroleum products! which shall also play a vital role in building customer relations over a long term.

TRAINING PRO9E11
TRAINING 9OMMITTEE1 ROLE OF TRAINING 9OMMITTEE1% The main role of the Training &ommittees is to oversee the training functions and the training needs of the organization keeping in view the environmental changes. 53

Training and Development- IndianOil _______________________________________________________________________ _ /ased on the need identified! training programmes focused towards specific area of interest are approved by the committee for implementation. The training committee also reviews the training

activities on a half1yearly basis. 4O TRAINING 9OMMITTEE &hairman +embers 1 irector 2+3 irector! and 8eneral +anagers I>&. is invited to the $4 training &ommittee.

1 Executive

In addition one %egional E &onvenor 1 8+ 2TN 3

REGIONAL TRAINING 9OMMITTEE &hairman +embers %egion. &onvenor 2TN 33 1 Training In1charge of the %egion 26enior > +anager 1 E 1 of the %egional. y. 8eneral +anagers 2$4 3 of the

8eneral +anagers >

In Indian Oil 9orporation % Training epartment has a training calendar! which is sent

to all the departments.

54

Training and Development- IndianOil _______________________________________________________________________ _ /asically two types of training programmes are conducted by the training department a. b. *unctional 0rogramme evelopmental 0rogramme

Training department makes use of in1house personnel for functional programmes and employs people from outside for development programmes The current system provides consultation with concerned officers by his superior to ascertain the training needs. 6imilarly! the superior in consultation with the Mnit level co1 coordinators identifies training needs of the workmen and %egional Training $eads and new need based programmes are mounted. Each employee(s training needs are identified through system of #nnual 0erformance #ppraisal 2#0#3. ;omination for %egional course is as per the eligibility criterion laid down for each programme. 4nce the nominations are identified and course

announcement made! withdrawal of nomination is normally not permitted.

0articipants at the end of each programme do the overall course evaluation and the courses are modified depending upon the feedback received. 55

Training and Development- IndianOil _______________________________________________________________________ _ 0articipants attending external training are required to make a formal presentation regarding the training received along with action plan for implementation. This ensures transfer of knowledge for on job performance.

Role of training %
@ Training has been performing a very important role in helping the &orporation to reach the commanding heights of performance over the years. A Training has played a pivotal role in helping the organization adapt itself to change! which is the most important thing called for in the current changing environment. 3 To assist the employees in their pursuit of knowledge and self1 actualization.

Training Lin*age to 9orporate 2 Di!i#ional O&'ecti!e#


The training policies have been developed for C main reasons @ To define the relationship between the organization objectives and its commitment to the training function. A To provide operational guidelines for management! for example to state management(s responsibilities for planning and implementing training and in particular to ensure that training resources are allocated to priority and statutory requirements. B To provide information for employees. *or example! to stress the performance standards expected" to indicate the organisation(s commitment employees to of training the and development of and to inform opportunities training development

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Training and Development- IndianOil _______________________________________________________________________ _ 2including willingness to grant time off! and>or payment of fees for External courses3. C To enhance public relations for example! to help recruit high caliber recruits" to reassure clients and public at large about the quality of products or services or to project an image as a caring and progressive employer by taking part in government sponsored ,6ocial9 training programmes.

Need for Training %


Indian4il &orporation is involved in refining and marketing of 04=. $ere! training becomes a core function for the following reasons @ Training is necessary for new employees to get an idea about the job and to do it effectively. A 5unior employees need training before they take the position of their seniors. A It is necessary for the company to fulfill its future personnel needs and to train the employee in the company culture pattern. B It is necessary for old employees to enable them to keep abreast of changing methods! techniques and technology. C It is needed to improve the quality and quantity of output by an employee and raising their morale. A Training is required to revise the specialized skills learnt in the past. B 5ob %otation practice in Indian4il demands training. D It reduces wastage and accidents. C *or self 7 development.

portance Of Training

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Training and Development- IndianOil _______________________________________________________________________ _ The main importance is to mould the employees attitude and help them to achieve better co1operation with company. It also helps in reducing dissatisfaction! complaints! absenteeism and labour turnover. # successful training programme can be made by creating a good environment for it.

Participant#F EGpectation# fro %

a training progra

Improving and solving specific problems confronted in job functions. #s a means to improve promotional aspects. *or professional growth in organization. To develop understanding of specific subjects covered training programme #s a change for routine job schedule. To get acquainted with new technology. *or personal growth To gain new and pertinent knowledge #cquire specific approaches! skills or techniques that can be applied on the job. $elp and confirm some earlier ideas. #cquaint with problems! ideas and solutions from other departments =ook at oneself and one(s job objectively. in the

Training proce## of IndianOil in!ol!e# #e!eral #tep# %


@. efining organizational objectives and strategies

A. #ssessment of the training needs B. Establishing training goals 58

Training and Development- IndianOil _______________________________________________________________________ _ C. evising the training programme D. Implementation of the programme K. Evaluation of the results

Training procedure in INDIANOIL


@. Identification of training needs. A. Training ;ominations B. Training *acilities C. Training Techniques D. Training *aculty K. 0reparation of the Trainee G. Evaluation Effectiveness of training in Indian4il. I. *ollow 7 up.

1) Identification of training need#% Identification of training needs is the stepping1stone in the appropriate management training system on which the entire edifice of training programme is built. =ike the prevalent management development and training programmes! appropriate management training system does not take a generalized view of training needs. It attempts to take a specialized individualized view of training needs of different categories of managers performing more or less similar job in similar organizations. Mnder this system! assessing training needs is treated as an important and crucial training function before designing and conducting a programme.

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Training and Development- IndianOil _______________________________________________________________________ _ #n organization normally employs sufficient number of managerial and non1managerial personnel with required competence to perform given jobs leading to the accomplishment of organizational objectives. Effective performance of a job requires a standard of competence in the job holder consisting of vital areas such as job related knowledge! skill and attitude. competence of /ut due to one or other reasons the existing jobholder may fall short of the standard The processing of assessing and the

competence required in the job.

finding the gap between the standard competence required in a job and the existing competences in turns of vital knowledge and skill and attitude in the job holder may be called as the identification of the areas of deficiencies and the resultant inventory of gaps in the job holder in terms of knowledge and skill and attitude may be said as his training needs. This logic highlights two processes @. Identification and definition of standards of knowledge! skill and

attitude required in a job. A. #ssessing existing level of knowledge! skill! attitude of the job

holder. These two processes are of critical importance and should be carried out as accurately as possible because the outcome of the comparison between the two provides the information from which an appropriate training programme is developed. # training programme should be established only when it is felt that it would assist in the solution of specified operational problems. The most important step in the first place is to make a thorough analysis of 6

Training and Development- IndianOil _______________________________________________________________________ _ the entire organization! its operations and manpower resources available in order to find out the Etrouble spots( where training may be needed. In Indian4il! training needs are identified by the Training committees at $4>%egional level keeping in view the changing environment and the objectives and the mission of the organization. are redesigned so as to be effective utilized. Each officers training are identified in the ,Training needs Exercise9 which is covered every two years. 0rior to identifying needs of each officer! their current system provides consultation with concerned officers by his superior to ascertain the training needs. The training need for officers are identified in the ,Training need9 form that constitutes the basis on which the nominations are accepted by the training centers for the various in1house training progrmmes. The nominations to external training programmes are encouraged only for such progrmmes where in1house training programmes are not available! and there is a self>organizational need. The training needs of workmen in employees category are identified by the superiors in consultation with the unit level coordinators and the %egional Training $eads and new based in1house programmes are mounted. Employees do write in their #nnual 0erformance #ppraisal 2#0#3 forms about the training they would like to undergo. /ased on this new training also gets identified year after year. Traditional programmes

,< Training No

ination#
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Training and Development- IndianOil _______________________________________________________________________ _ #s far as possible opportunity is given to the officers to attend $4 training programmes of their choice once every two years. ;ominations for regional courses are as per the eligibility criteria laid down for each programme. The main thrust of training activities at regional level is improving functional competency. The nominations for workmen category are finalized at the regional training centers keeping in view the specific needs of each employee segment. <ithdrawal of nomination 7 once the nominations are identified by the training department and course announcement is made! withdrawal of nomination is normally not permitted. $owever! in extreme unavoidable circumstances! this is permitted subject to prior approval of the competent authority.

/< Training Facilitie#


The non residential training programmes are conducted in the training halls located in the $4>%egional head quarters. The training halls have been carefully designed keeping acoustic requirement in view. audio1visual equipments to ensure training The training halls are equipped with the latest and most sophisticated effectiveness. +anagement training courses > supervisory development courses are conducted in some of the reputed nominated hotels. They have also acquired latest electronic gadget like liquid &rystal efficiency. isplay! ?ideorama! Electronic /oard 20anaboard3! direct projector! for improving training

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Training and Development- IndianOil _______________________________________________________________________ _ The training center at $4 has well equipped reference library. It has an excellent collection of books and & s on various aspects of +anagement! Information Technology! 0etroleum Industry and Energy +anagement besides general disciplines.

4) Training Tec"ni-ue#

epending on the course objectives! training methodology mix is carefully designed. In the training courses the management provides ample opportunity to the employees to take active part in the learning process. In the management training courses emphasis is placed on the use of state1of1the art training technologies like simulation exercises! computer aided +anagement 8ames! live video recording! structured experiential instruments! case study method etc. 6yndicate project studies are also given in most of the courses to study the live organizational problems and give recommendations! which are then duly considered by the management for implementation. prepare reports and make formal presentations. to hands1on1training. The participants of various training programmes are also required to This aids in the process of learning for workmen training. #dequate emphasis is given

C< Training Facult$


The trainer has to be prepared for the job for he is the key figure in the entire programme.

63

Training and Development- IndianOil _______________________________________________________________________ _ The strength of the Training in I; I#;4I= lies in the faculty being generated from within. In1house faculty imparts a lot of credibility to the training efforts. The training faculty members are selected on the basis of their positive attitude towards training assignment and their ability to communicate effectively with others. Each faculty member is required to have thorough knowledge of his subject. in line with the organisational requirements. The functional managers from various departments are invited as part1 time faculty members to share their knowledge pertaining to their disciplines. It also helps the functional managers to remain up1to1date in their specialized functions. 4n a very selective basis! they invite guest speakers in the training programmes in such areas where they do not have sufficient expertise within the organization. This is done with the selection of names from &E4s of top corporate houses and professional institutes like II+s and IITs. The training center is also well equipped with professionally qualified trainer who are competent to conduct the management development programmes! both at $4>%egional level. The training faculty is responsible for ensuring that the formal training activities are

D< Preparation of t"e Trainee ;participant#<%


This step consists of @ 0utting the learner2trainee3 at ease. 2 6tating the importance and the ingredients of the relationship to work flow. A Explaining why he is being taught. B &reating interest and encouraging questions! finding out what the learner already knows about his job. job and its

64

Training and Development- IndianOil _______________________________________________________________________ _ C Explaining ,why9 of the whole job and relating it to some other job the worker already knows. D 0lacing the learner as close to his normal working position as possible. K *amiliarizing him with equipment! materials! tools and trade terms.

(< E!aluation Effecti!ene## of training in Indian Oil)


ifferent approaches could be adopted to evaluate the effects! impact and effectiveness of training. The methods may vary from an evaluation of the perceptions on training of the trainees! supervisors! subordinates and trainers to studying the entire training function itself. The study could encompass the cost benefit analysis of the training or the impact it has had on productivity and efficiency of the organization. To understand the knowledge gained from the training and thereafter! the transferability of this learning on the job situation and its effect on rise or fall of productivity necessitates the availability of certain information. It is essential to understand the level of knowledge of participants before the initiation of training process to calculate the possible gains from training. 4n the other hand! a study which comes in after the event of training is necessarily constrained to study the perceptions of the trainees! trainers and the organization with regard to effectiveness of the training effort. The perception study is principally an after the event evaluation. The approach here is to elicit the perception of participants after attending training programmes! on various aspects 65

Training and Development- IndianOil _______________________________________________________________________ _ of the programme! the learning he>she has derived from the programme and any change in attitude! knowledge or skill level and its transferability to on1the1job situation. the participants are further subordinates and peers. *or management training courses! session1wise evaluation is done for each session. The overall course evaluation is done by the participants at the end of each programme and the courses are modified depending upon the feedback received. professional agencies like Tata #t periodic intervals! Training &entre! evaluation of training effectiveness is conducted by reputed outside +anagement #dministrative staff college of India etc. The participants attending the external training and are required to make a formal presentation regarding the training received along with an action plan for implementation. This ensures transfer of knowledge for on1the1job performance. Training function also enjoys adequate support from top management to monitor various programmes and upgrade the same from time to time. The post course evaluation and monitoring of functional courses is done with the support of the respective functional groups. interventions. # high degree of innovation in training efforts is ensured due to the above The perceptions expressed by out with their superiors! checked

,< Follo+5up
This step is undertaken with a view to trusting the effectiveness of training efforts. This consist of1 66

Training and Development- IndianOil _______________________________________________________________________ _ 0utting trainee Eon his own(. &hecking frequently to be sure that he>she has followed instructions. Tapering off extra supervision and close follow1up until he is qualified to work with normal supervision. /asically two types of training programmes are conducted by the training department a. b. *unctional 0rogramme evelopmental 0rogramme

Nature 2 Met"od# of TRAINING %


#fter the employee has been recruited! selected and inducted he must next be developed to better job and the organization. ;o one is perfect fit at the time of hiring and some training and education is essential. ;o organization has a choice of whether to develop employees or not! the only choice it has is that of method of development. If no organized programmes exist then development will largely be self1development! while learning on the job. evelopment would include both training to increase skill in performing a specific job and education to increase general knowledge and understanding of the total environment. 0lanned development programmes will return values to the organization in terms of increased productivity! heightened morale! reduced costs and greater organizational stability and flexibility to adapt to changing external requirements. for work assignments that can add up to life1long careers. There are mainly two reasons for functioning training6uch programmes will also help meet the needs of individuals in their search

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Training and Development- IndianOil _______________________________________________________________________ _ @. Training programmes for non managers to develop skills to perform a job. A. Training and educational programmes designed to develop organizational units as entities.

9la##ification of training
1. ON5T4E56O7 TRAINING %

et"od# %

?irtually! every employee! from the assistant to company(s chairman gets some on1the1job training when he joins a firm. 6ince most jobs in an industry can be learnt is a relatively shorter period of time this method is widely used. It has the advantage of strongly motivating the trainee to learn since it is not located in the artificial situation of a class room. The fact that the success of the system depends almost entirely upon the immediate supervisor! the trainer! means that the personnel unit has a major responsibility for making a good effective teacher out of every supervisor. There are a variety of on the job methods such as coaching or under study" job rotation and special assignment under coaching or under study method 2which is also known as internship and apprenticeship method3! the employee is trained on the job by his immediate supervisor. Internship is usually applied to managerial personnel and provide a wide variety of job experience. #pprenticeship is generally used to impart skills requiring long periods of practice as found in trade! crafts and other technical fields. In job rotation a management trainee is made to move from job at certain intervals. The jobs vary in content. 6pecial assignments or committees are other methods used to provide lower level executives with first hand experience in working on actual problems. 68

Training and Development- IndianOil _______________________________________________________________________ _

,) OFF5T4E56O7 MET4OD1 OR 9LA11 ROOM %


4ff1the1job training simply means that training is not a part of every day activity. The actual location may be in the company class rooms or in places which are owned by the company or in universities or associations which have no connection with the company. These methods consist of i. =ectures ii. &onferences iii. 8roup iscussions iv. &ase studies v. %ole playing vi. 0rogrammed instructions vii.T1group training i. Lecture# =ectures are regarded as one of the simplest ways of imparting knowledge to the trainees especially when facts! concepts or principles! attitudes! theories and problems solving abilities are to be taught. =ectures are formal organized talks by the training specialist! the formal superior or other individual specific topics. within a short time thus reducing the cost per trainee. The lecture It can be method can be used for very large groups which are to be trained organized rigorously so that ideas and principles relate properly. ii.

9onference

et"od
# conference is basic to most

In this method! the participating individuals confer to discuss points of common interests to each other. participative group centered methods of development. It is a formal meeting" conducted in accordance with an organized plan in which the 69

Training and Development- IndianOil _______________________________________________________________________ _ leader seems to develop knowledge and understanding by obtaining a considerable amount of oral participation of the trainees. on the active participation of the members involved. iii. 1e It lays emphasis on small group discussions! on organized subject matter and

inar or tea

di#cu##ion

This is an established method for training! a seminar is conducted in many ways. It may be based on paper prepared by one or more trainees or on a subject selected in consultation with a person in charge of the seminar. It may be part of the study or related to the critical studies or practical problems. It may be based on the statement made by the person in charge of the seminar or on a document prepared by an expert who is invited to participate in the discussion. The person in charge of the seminar distributes in advance the material to be analysed in the form of required readings. The seminar compares the reactions of trainees! encourages discussions! defines the general trends and guides the participants to certain conclusions. iv. 9a#e #tudie# This method was first developed by &hristopher =anzdell in the @IIHs at the $arward =aw 6chool to help students to learn for themselves by independent thinking. &ase study is based on the belief that # case is a set of managerial competence can best be attained through the study! contemplation and discussion of concrete cases. data! real or fictional! written or oral miniature description and summary of such data that present issue and problems calling for solutions or actions on the part of the trainee. <hen the trainees are given case to analyse they are asked to identify the problems and to

Training and Development- IndianOil _______________________________________________________________________ _ recommend tentative solutions for it. In &ase study method! the trainee is expected to +aster the facts! become acquainted with the content of the case. efine the objectives sought in dealing with the issues in the case. Identify the problems in the case and uncover their probable causes. evelop alternative courses of action. 6creen the alternatives using the objectives as criteria. 6elect the alternative that is most in keeping with the stated objectives.

v. Role 3 pla$ing In role1playing trainees act out a given role as they would in a stage play. Two or more trainees are assigned parts to play before the rest of the class. These parts do not involve any memorization of lines or any rehearsals. The role players are simply informed of the situation and of the respective roles they have to play. 6ometimes after the preliminarily involves employee1employer relations! hiring! firing! discussing a grievance procedure! conducting a post appraisal interview or disciplining a subordinate or a salesman making a representation to a customer. vi. Progra

ed In#truction ;teac"ing &$ t"e

ac"ine

et"od<
0rogrammed Instruction involves a sequence of steps which are often set up through the central panel of an electronic computer as guides in 71

Training and Development- IndianOil _______________________________________________________________________ _ the performance of desired operation or series of operations. It incorporates a pre1arranged! proposed or desired course of proceedings pertaining to the learning or the acquisition of some specific skills or general knowledge! a programmed instruction involves breaking information down into meaningful units and arranging these in a proper way to form a logical and sequential learning programme or package. vii. T5Group Training This usually comprises association! audio1visual aids and planned reading programmes. +embers of a professional association receive training by it in new techniques and ideas pertaining to their own vocations through a regular supply of professional journals and informal social contacts or gatherings! members are kept informed of the latest development in their particular fields. conventional teaching methods. #udio1visual aids1 records! tapes and films are generally used in conjunction with other 0lanned and supervised reading programmes are conducted! technical publications and the latest journals are kept in the library for the use of the trainees.

/) VE1TI78LE TRAINING %
This method attempts to duplicate on the job situations in a company class room. It is a class room training which is often imparted with the help of the equipment and machines which are identical with those in use in the work place. actual job. This techniques enables the trainee to concentrate on learning the new skill rather than on performing an It is a very essential method of training semi1skilled personnel! particularly when many employees have to be trained for the same kind of work at the same time.

72

Training and Development- IndianOil _______________________________________________________________________ _

9onclu#ion%
Training has played a very important role in helping Indian4il to reach the commanding heights of performance. #ny training would be considered to be successful only when the knowledge gained by the participants is transferred to the job performance. #nd Indian4il is been very successful in doing that.

Indian4il has a very strong base of human resource development and training and it has percolated right form the top to the bottom levels and this had played a role in more systematic organization development. The training programmes have helped their employees to improve their skill and efficiency as a result of which they are able to undertake new challenges in their work. The training and development programmes held in Indian4il helped their employees to know theirs strength and weaknesses and helped them to work on their weaknesses. 73

Training and Development- IndianOil _______________________________________________________________________ _

7I7LIOGRAP4A
www.iocl.com

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