INTRODUCTION

Human resource executives in India continue to struggle with talent management

issues, particularly retention. The quest to find the best way to retain employees has taken HR

pundits through concepts such as employee review, employee satisfaction and employee

delights. The latest idea is Employee Engagement, which is the degree to which an

employee is emotionally bonded to his organization and passionate about his work.

Employee Engagement is the extent to which employees think, feel, and act in ways

that represent high levels of commitment to their organization. Engaged employees are

motivated to contribute 100% of their knowledge, skills, and abilities to help their

organization succeed.

Employee Engagement represents the motivational capital that exists within an

individual, or an organization. It has been proved that there is an intrinsic link between

employee engagement, customer loyalty and profitability. When employees are effectively

and positively engaged with their organization they form an emotional connection with the

company. This impacts their attitude towards the companys clients, and thereby improves

customer satisfaction and service levels.

Most organizations realize today that a satisfied employee is not necessarily the best

employee in terms of loyalty and productivity. It is only an engaged employee who is

intellectually and emotionally bound with the organization. Moreover, in times of

diminishing loyalty, employee engagement is a powerful retention strategy.

A successful employee engagement helps create a community at the workplace. As

organizations globalize and become more dependent on technology in a virtual working

environment, there is a greater need to connect and engage with employees to provide them

with an organizational identity. Especially in Indian culture this becomes more relevant given

the community feeling which organization provide in our society.

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 NEED FOR THE STUDY:

Employee engagement plays an integral part of human resource management

Employee engagement is the degree of commitment and involvement the employees have

towards their organization and its values. An employee with high involvement can understand

the business context effectively and take effective decisions that affect his/her work

performance.

The primary need of the study is to analyse level of commitment and involvement the

employees have toward the company. This study also focuses on the physical, cognitive and

emotional feelings of the employees about their role performance in the organization.

Employee engagement is more than just the current Human resource. It is essential. In

order for the organization to meet and surpass organizational objectives, employee must be

engaged.

Every changing demand require the company to concentrate on its people who should

be equipped to meet the increasing demand and hence, this has made me to do the present

study in HPCL on Employee Engagement.

SCOPE OF THE STUDY:

This study throws a light on the employees feelings about their involvement and

commitment toward the success of the organization. The study provides an insight into the

most crucial problem of human resource management like retaining the employees. The study

includes various strategies adopted and proposed which provides a clear understanding to the

various factors related to the engagement and their interrelationship.

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 OBJECTIVES OF THE STUDY:

To examine the strategies adopted and practices followed regarding Employee

Engagement system in HPCL.

To examine the importance given by the employees to work at their level of

satisfaction.

To study the effectiveness of free flow of information between the management and

the employees.
To find out whether the employees are being adequately compensated for their service

or not.
To study the satisfaction level of the employee towards the decision making process

in the organization.

METHODOLOGY OF THE STUDY:

SOURCES OF DATA:

The collection of information has been done through two principle sources.

Primary Data.
Secondary Data.
PRIMARY DATA: It is obtained by administration through questionnaire and

observation.
SECONDARY DATA: This is obtained through company website, records, magazines,

and interacts.
QUESTIONNAIRE: The questionnaire consists of 25 questions.

SAMPLING:
UNIVERSE:
The total man power in HPCL, Visakhapatnam which includes Visakh Retail Regional

office, New Petro Park, Black oil terminal and Refinery is of 1420.
SAMPLE SIZE:

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 The sample size taken for the study is 57.
SAMPLING METHOD:
The method used is simple random sampling method.
TITLE OF THE STUDY:
The title of the study is, EMPLOYEE ENGAGEMENT at HPCL,

VISAKHAPATNAM.

PRESENTATION OF THE STUDY:

CHAPTER 1:

INTRODUCTION:

It consists of the need for the study, scope of the study, objectives of the study, methodology,

presentation of the study and limitations of the study.

CHAPTER 2:

INDUSTRY PROFILE:

The history of the petroleum industries, origin of oil industry in India and benefits of Oil &

Natural gas has been described in this part.

COMPANY PROFILE:

The history of the company, objectives, vision, mission and also production process of HPCL

has been described in this part.

CHAPTER 3:

THEORETICAL FRAME WORK OF EMPLOYEE ENGAGEMENT:

The conceptual frame work of Employee Engagement, importance, theories of Employee

Engagement and measurement of Employee Engagement has been described in this

chapter.
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CHAPTER 4:

ANALYSIS OF EMPLOYEE ENGAGEMENT IN HPCL:

The entire data in this chapter has been analyzed and interpreted with the help of the data

collected.

CHAPTER 5:

FINDINGS, SUGGESTIONS, SUMMARY AND CONCLUSION:

Basing on the data provided, the study has been summarized and concluded with the help of

findings and suggestions.

BIBLIOGRAPHY

QUESTIONNAIRE

LIMITATIONS OF THE STUDY:

The duration of the study is limited to a period of six weeks of which it was not

possible to get the information about some remote methodologies.

The study was limited to a specific number of respondents, which did not cover the

whole population.
The finding and observation made in this study are purely based on respondents

answers.
The response may be affected by certain personal bias.
Some employees (workmen) were not able to understand the questionnaire.

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 INDUSTRY PROFILE

Profile of Oil Industry:

The petroleum industry includes the global processes of exploration, extraction,

refining, transporting (often by oil tankers and pipelines), and marketing petroleum products.

The largest volume products of the industry are fuel oil and gasoline (petrol). Petroleum (oil)

is also the raw material for many chemical products, including pharmaceuticals, solvents,

fertilizers, pesticides, and plastics.

Since the earliest times, there have been instances of crude oil and natural gas seeping

to earths surface. The oil was used to caulk boats and buildings, grease vehicles and dress the

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wounds of people and animals until refining process emerged in 1850s. The worlds first oil

refinery opened at Ploiesti, Romania in 1856. Several other refineries were built at that

location with investment from United States companies.

The Guinness Book of World Records now (October 2006) records the BP Amoco

Refinery in Texas city, USA as a refinery with the largest capacity (43,300 barrels per day

which is approx. 15,100,000 imperial Gallon).

Major sectors of Oil Industry:

The oil industry is often divided into three major sectors: upstream, midstream and

downstream. Midstream operations are usually included in the downstream category.

Upstream Sector: This includes the searching for potential underground or

underwater oil and gas fields, drilling of exploratory wells, which brings crude oil

and raw natural gas to the surface.

Midstream Sector: This sector process stores, markets and transports commodity

such as crude oil and natural gas liquids such as ethane, propane and butane.

Where is Oil and Natural Gas found?

Most crude oil and natural gas originate from plant and animal life that thrived

millions of years ago in swamps and oceans. The organic materials were deposited with

mud and silt from streams and rivers the sediments eventually hardened to form sedimentary

rock. Heat and pressure transformed the fort part of the plant and animals into solid, liquid or

gaseous hydrocarbons known as fossil fuels (crude oil and natural gas).

Crude Oil:

Crude oil is a naturally occurring liquid found in formations in the Earth consisting of

a complex mixture of hydrocarbons of various lengths like hydrogen, carbon and non-

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metallic elements such as Sulphur, Oxygen, Nitrogen and other gases. Any shorter

hydrocarbons are considered Natural Gas, while longer hydrocarbon chains are more solid,

and the chains are coal. It is usually black or dark brown (although it may be yellowish or

even greenish) but varies greatly in appearance, depending on its composition.

Exploration- the search for the Petroleum

Exploration is the act of searching or traveling for the purpose of discovery, e.g.,

of unknown regions, for oil, gas, coal, etc., Petroleum is found in porous rock formation in

the upper strata of some areas of the Earth's crust. Earth scientists in the Petroleum industry

including Geologists, Geophysicists, Geochemists, Paleontologists study the rocks which got

buried thousands of meters below the surface, how these rocks have been affected and

transformed stretching back millions of years to identify 'traps' with recoverable oil reserves.

A trap is an oil reservoir, petroleum systems or petroleum reservoir is often thought of as

being an underground 'lake' of oil, but it is actually composed of hydrocarbons contained in

porous rock formations. Known reserves of petroleum are typically estimated at around

1.2 trillion barrels.

Consumption is currently around 84 million barrels per day, or 31 billion barrels

per year. At current consumption levels, current known reserves would be gone in about 32

years, around 2039. However, this ignores any new discoveries, changes in demand,

better technology, population ingrowth, industrialization of third world countries and other

factors. While oil is expected to remain a major source of energy in coming years,

alternative energy development such as solar power, wind power, butanol, ethanol,

photovoltaic, nuclear power, hydrogen, or oil from oil shale, and oil sands may increase

in significance. Coal may also increase in use because of its existence in vast quantities

in rapidly developing countries, such as China and India.

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The Birth of the Industry:

The petroleum industry operates on the petroleum market. Petroleum is vital to nearly

all other industries, if not industrialized civilization itself, and thus is of critical concern to

many nations. Oil accounts for a large percentage of the world's energy consumption,

ranging from a low of 32% for Europe and Asia up to a high of 53% for the Middle East.

Other geographic regions consumption patterns are as follows: South and Central America

(44%), Africa (41%), and North America (40%). The world at large consumes 30 billion

barrels (4.8km3) of oil per year, and the top oil consumers largely consists of developed

nations in fact, 24% of the oil consumed in 2004 went to the United States alone. The

production, distribution, refining and retailing of petroleum, taken as a whole represent one

single largest industry in terms of dollar value on earth.

Since the earliest record history, there have been accounts of crude oil and natural

gas seeping to the earth's surface. The oil was used to caulk boats and buildings, grease

wheels and dress the wounds of people and animals until the refining process was done in

the 1850's. Oil was not commonly used as fuel of its foul smelling fume. Today the

upstream of oil industry has grown to a great extent which includes more than 1000

explorations and production companies as well as hundreds of associated business such

as seismic and drilling contractor service and supply companies.

The midstream sector includes oil and gas pipelines that connect production and

consuming areas, other facilities extract sulphur and natural gas liquids, store oil and gas

products and transport by truck, rail or tanker. The downstream sector consists of refineries

gas distribution utilities oil product wholesalers, service stations and petrochemical

companies. The exploration of the oil and natural gases are being done in countries like

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India, USA, Canada, UAE, Saudi and Russia, parts of Europe, Africa, Australia, and South

America.

High technology is being used in exploring the reserves, which include:

High-tech exploration enhanced recovery production method.

Cold climate and offshore operations.
Development of oil and sour gas recoveries.
Gas processing, sulphur extraction and heavy oil upgrading.
Construction and operation pipelines.
Specialized controls and computer applications.
Environmental protection technology and safety training.
Innovative products and service that customer needs.

History of Oil and Natural Gas:

Petroleum, in some form or other, is not a substance new in the world's history.

More than 400 years ago, according to Herodotus and confirmed by Diodorus Siculus,

asphalt was employed in the construction of the walls and towers of Babylon; there were

oil pits near Ardericca (near Babylon), and a pitch spring on zacynthus. 10 great quantities

of it were found on the banks of the River Issus, one of the tributaries of the Euphrates.

The first oil wells were drilled in China in the 4th century or earlier. They had depths

of up to 243 meters and were drilled using bits attached to bamboo poles. The oil was

burned to evaporate brine and produce salt. Petroleum was known as 'Burning Water' in

Japan in the 7th century.

In the 8th century, the streets of the newly constructed Baghdad were paved with tar,

derived from easily accessible petroleum from natural fields in the region. In the 9 th

century, oil fields were exploited in the area around modern Baku, and Azerbaijan to

produce naphtha. The Geographer Masudi described these fields in the 10 th century and by

macro polo in 13th century, who described the output of those wells as hundreds of

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shiploads. The earliest mention of American petroleum occurs in Sir Walter Raleigh's

account of the Trinidad Pitch Lake in 1595.

The modern history of petroleum began in 1846 with the discovery of the process

of refining kerosene from coal by Atlantic Canada's Abraham Pineo Gesner. Russian

Engineer F.N.Semyonov drilled the first modern oil well in 1848, on the Apsheron

Peninsula northeast of Baku.

Meerzoeff built the first Russian refinery in the mature oil's fields at Baku in 1861. At

that time, Baku produced about 90% of the World's Oil.

The American petroleum industry began with Edwin Drakes drilling of 69-

foot-deep oil well in 1859. The industry grew slowly in the 1800s driven by the

demand for kerosene and oil lamps. It became a major national concern in the early part

of the 20th century.

By 1910, significant oil fields had been discovered in Canada,

specifically in the province of Alberta. Petroleum production is a major industry in Canada.

In 2005, almost 25,000 new oil wells were spud (drilled) in Canada. Daily, over 100

new wells are spud in the province of Alberta alone.

Origin of Oil and Natural Gas:

Most geologists view crude oil and natural gas as a product of compression and

heating of ancient organic materials over geological time. According to this theory, oil is

formed from the preserved remains of pre-historic zooplankton and algae, which have

been settled to the sea bottom in large quantities under anoxic conditions. Terrestrial plants,

on the other hand, tend to form coal. Over geological time, this organic matter mixed with

mud and is buried under heavy layers of sediment.

The resulting high levels of heat and pressure cause the remains to metamorphose,

first into a waxy material known as kerosene which is found in various oil shales around

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the world, and then with more heat into liquid and gaseous hydrocarbons are lighter than

rock or water, these sometimes migrate upward through adjacent rock layers until they

become trapped beneath impermeable rocks, within porous rocks called reservoirs.

Concentration of hydrocarbons in a trap forms an oil field, from which drilling and

pumping can extract the liquid.

Three conditions must be present for oil reservoirs to form:

First, a source rock rich inorganic material buried deep enough for Subterranean

heat to cook it into oils.

Second, a porous and permeable reservoir rock for it to accumulate in and
Last, a cap rock (seal) that it forms escaping to the surface.
BENEFITS OF OIL AND NATURAL GAS:
Humans have utilized petroleum in an unrefined state for over 5000 years. Ancient

Persian tablets indicate the medicinal and lighting uses of petroleum in the upper echelons

of their society. Ancient Chinese were also known to burn skimmed oil for light. The early

19th century ushered in petroleum's usefulness as a medicine and lubricant; other

successful uses including lighting and heating. A petroleum industry emerged in North

America in Canada and the United States, fueling the Industrial Revolution. Petroleum

products are useful materials derived from crude oil (petroleum) as it is produced in oil

refineries.
According to crude oil composition and demand, refineries can produce different

shares of petroleum products. Largest share of oil products is used as energy carriers,

various grades of fuel oil and gasoline. Refineries also produced other chemicals, some of

which are used in chemical process to produce plastic and other useful materials. Since

petroleum often contains a couple of percent sapphire, large quantities of sulphur are also

often produced as a petroleum product. Hydrogen and carbon in the form of petroleum

coke may also be produced as petroleum products. The hydrogen produced is often used

as an intermediate product for other oil refinery processes such as hydrogen catalytic

cracking (hydro cracking) and hydrodesulphurization.

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Major Products of Oil Refineries:

Asphalt

Diesel fuel

Fuel oils

Gasoline

Kerosene

Liquid petroleum gas

Lubricating oil

ORIGIN OF OIL INDUSTRY IN INDIA:

India's first Prime Minister Jawaharlal Nehru, prior from 1947 to 1964, saw

industrialization is the key to alleviating poverty. Industrialization not only promised self-

sufficiency for our nation that had just regained political sovereignty, but also offered

external economies accruing from technical progress. The result of appointing and spending

millions of rupees for industrialization in our five-year plan right from 2 nd to 8th is the high

level expertise we will be in direct competition with America and European Union for

oil and natural gas from all over the world specially Middle East. The bottom line is that

whoever gets to use the oil, will grow faster and eventually dominated the world. The

Digboi Refinery was set up as Digboi in 1901 by Assam oil Company Limited, which was

taken over by Indian Oil Corporation Ltd., with effect from 1981. Over a decade

following Independence, various Multinational Companies have set up the following three

Refineries in India:

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 Standard Vacuum Oil (international) in Mumbai.
Caltex Oil Refinery Ltd., at Visakhapatnam.
Burma Shell at Mumbai.

From 1961 onwards various other refineries were set up at Barauni, Koyali, Chennai

and Cochin. Corresponding to a steep hike in Oil prices influenced by Gulf Oil producing

countries in 1973, Government of India took a policy decision to nationalize the Oil Sector

keeping in view the economic interest of the country. This has resulted in formation of

Hindustan Petroleum Corporation Limited (HPCL) by amalgamating the assets of ESSO

Oil Company and its market activities.

Industry Structure:

The Ministry of Petroleum & Natural Gas (MOP&NG) is entrusted with the

responsibility of exploration and production of oil and natural gas, their refining,

distribution and marketing, import, export and conservation of petroleum products and

liquefied natural gas. Director General of Hydrocarbon (DHG), Oil Industry

Development Board and Petroleum Planning and Analysis Cell support the Ministry. The

following are the activities of MOP&NG in Oil Industry Sector:

Exploration and exploitation of petroleum resources, including natural gas.

Production, supply, distribution, marketing and pricing of petroleum
Including natural gas and petroleum products.
Oil refineries, including lube plants.
Additive for petroleum and petroleum products.
Lube blending and greases.
Planning, development and control of and assistance to all industries
Planning, development and regulation of oil field services.

A lion's share of 84% of Exploration and Production of Crude Oil and Natural Gas is

from two major viz., Oil and Natural Gas Corporation (ONGC) and Oil India Limited (OIL)

while the Refining Sector is dominated by PUS's like Indian Oil Corporation Limited

(IOCL), Hindustan Petroleum Corporation Limited (HPCL) Bharat Petroleum Corporation

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Limited (BPCL) Chennai Petroleum Corporation Limited (CPCL) Kochi Refineries Limited

(KRL) in refining and marketing various Petroleum Fuels. Marketing of Petroleum Products

has undergone a sea change with abolition of administered pricing mechanism since April 1st

2002 except for Kerosene and Liquid Petroleum Gas. In addition, the Oil Companies are

given free hand to fix their own prices to get benefit from the competitive edge.

India annually consumes about 3% of the world's total energy. The country is the

world's 6th largest energy consumer and is in fact a new energy importer. There has been

a gap between supply and availability of petroleum and petroleum products in India. Over

the last 15 years or so, the demand for petroleum products as risen at an average rate of

about 60%. The current requirement of crude oil in the country stands at around 112 MMT

and this is likely to increase to about 190 MMT by 2011-12. Fuel oils presently up the

majority of India's refinery output. Total refined product output from India's refineries

has risen about 60% in the past decade.

Using Oil and Natural Gas:

During the refining of the petrochemicals, wide range of petroleum molecules comes

in a wide variety of size and shapes strings and rings of carbon and hydrogen atoms. The

methane in natural gas is the simplest and smallest. By comparison the molecules in

paraffin wax and asphalt are complex and enormous. The hydrocarbon molecules are

sorted, split apart, reassembled and blended in refineries and petrochemical plants.

There, they become magnitude of products from gasoline to synthetic rubber.

Major Players in Indian Oil Industry:

1) Indian Oil Corporation Limited.

2) Hindustan Petroleum Corporation Limited.

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3) Bharat Petroleum Corporation Limited.
4) Madras Refinery.
5) Bongaigaon Refinery and Petrochemical Limited.
6) Cochin Refinery.
7) Numaligarh Refinery Limited.
8) Mangalore Refinery Limited.
9) Reliance Petrochemicals Limited.

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 PROFILE OF HPCL

INCORPORATION:

The company was first incorporated as Standard Vacuum Refining Company of

India in July 1952 and later named as ESSO India Limited from March 1962. On July

12th, 1974 when ESSO and Lube India were nationalized, the company was renamed as

HPCL with effect from July 15 th, 1974. Subsequently, Caltex was nationalized by

Government of India and merged with HPCL in 1978. In the following year, the

undertakings of Kosan Gas Company Limited, the concessionaries of HPCL in the

domestic LPG market, were merged with HPCL. Hence, HPCL which is as

amalgamation of various undertakings has been growing by leaps and bounds.

PROFILE:

Hindustan Petroleum Corporation Limited (HPCL) came into being in 1974

after the takeover and merger of the Erstwhile ESSO and Lube India undertakings. Caltex

was merged with HPCL in the domestic LPG market was taken over and merged with

HPCL in 1979. HPCL is a listed Public Sector, India's second largest oil refining and

accounts for more than 20% of the country's total refining capacity. It is one of the

'Navaratnas' identified by the Government of India as having potential to grow into a

global giant. Its shares are one of the 30 shares forming BSE sensex. It has 85 Regional

Offices, 37 Terminals/Tap of points, 92 Depots, 41 LPG Bottling plants and 7,313

Retail Outlets, 1,648 Kerosene Dealers, 2,202 LPG Distributors.

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 The corporation made a successful IPO in two stages during 1995 & 1997 and its

share holding pattern is as follows:

GOI- 51.01%
Financial Institution - 21.49%
Fll's-11.05%
Banks-1.73%
MF's - 3.92%
NRI's - 0.37%
Employees - 0.35%
Public-10.08%

The HPCL Group presently consists of HPCL, its 100% subsidiary, Guru Gobind Singh

Refineries Limited and interests in seven joint ventures, Mangalore Refineries and

Petrochemicals Limited (19.95%), Prize Petroleum Corporation Limited (50%), South Asia

LPG Company Private Limited (50%), Hindustan Coals Limited (50%), Petronet India

Limited (16%), Peronet MHB Limited (26%), Bhagyanagar Gas Limited (25%). During the

year ending 31st March, 2006 the turnover was Rs.7690 crores registering an increase of

18% over 2004-2005 after Tax was Rs.406 crores.

HPCL VISION:

"To be a World Class Company known for caring and delighting the customers with

high quality products and innovative services across domestic and international markets

with aggressive growth and delivering superior financial performance. The company will

be a model of excellence in meeting social commitment, environment, health and safety

norms and in employee welfare and relations".

HPCL MISSION:

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 "HPCL, along with its joint ventures, will be a fully integrated company in

hydrocarbons sector of exploration and production, refining and marketing focusing

on enhancement of productivity, quality and profitability, caring for customers and

employees, caring for environment protection and cultural heritage. It will be also attaining

scale dimensions by diversifying into other energy related fields and by taking up

transnational operations".

In order to achieve Vision objectives and to play effective roles in the emerging

operating environment, the following corporate values have been made, which would

be an integral part of decision making process.

HISTORY:

Hindustan Petroleum Corporation Limited (HPCL) has been formed through

amalgamation of four established companies. Gradually, it has grown today as a second

largest integrated Oil Refinery and Marketing Company in India. Merge of ESSO, Lube

India Limited, Caltex Oil Refining India Limited and Kosan Gas Company Limited

incorporated HPCL.

GROWTH:

HPCL is a Fortune 500 company, with an annual turnover of Rs. 1,08,599 Crores

and sales/income from operations of Rs 1,14,889 Crores (US$ 25,306 Millions) during FY

2009-10, having about 20% Marketing share in India and a strong market infrastructure.

HPCL operates 2 major refineries producing a wide variety of petroleum fuels &

specialties, one in Mumbai (West Coast) of 6.5 Million Metric Tons Per Annum (MMTPA)

capacity and the other in Vishakhapatnam, (East Coast) with a capacity of 8.3 MMTPA.

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HPCL holds an equity stake of 16.95% in Mangalore Refinery &Petrochemicals Limited,

a state-of-the-art refinery at Mangalore with a capacity of 9 MMTPA. In addition, HPCL is

constructing a refinery at Bhatinda, in the state of Punjab, as a Joint venture with Mittal

Energy Investments Pvt Ltd.

HPCL also owns and operates the largest Lube Refinery in the country producing

Lube Base Oils of international standards, with a capacity of 335 TMT. This Lube

Refinery accounts for over 40% of the India's total Lube Base Oil production.

HPCL's vast marketing network consists of 13 Zonal offices in major cities and 101

Regional Offices facilitated by a Supply & Distribution infrastructure comprising Terminals,

Pipeline networks, Aviation Service Stations, LPG Bottling Plants, Inland Relay Depots &

Retail Outlets, Lube and LPG Distributorships. HPCL, over the years, has moved from

strength to strength on all fronts. The refining capacity steadily increased from 5.5 MMTPA

in 1984/85 to 14.8 MMTPA presently. On the financial front, the turnover grew from Rs.

2687 Crores in 1984-85 to an impressive Rs 1, 16,428 Crores in FY 2008-09.

HPCL had started its journey in a humble way in 1974 with one Refinery in

Mumbai with a refining capacity of 3.5 million metric tons per annum (MMTPA) and a

Lube Refinery at Mumbai around 1.65lakh metric tons per annum and a slender sales

turnover of Rs. 36.7crores and a net profit of Rs. 5.8crores. But, with a dedicated and

efficient team of employees and a flawless and growth-oriented strategy of Top

Management, HPCL could succeed in achieving Navaratna Status in Industry apart from

spreading its wings both within and outside the country by meeting class standards in

Refining and Marketing.

Refineries:

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 HPCL has two refineries. On the west coast is the Mumbai Refinery with a

capacity of 5.5 million metric tons per annum, while the other at Visakhapatnam on the east

coast has a capacity of 7.5 million metric tons per annum. Both the refineries produce a

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

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

Lubes, specialties and greases.

Marketing:

The marketing operations of HPCL are divided into three Strategic Business

Units, Retail comprising of Petrol, Diesel and Automotive Lube sales, Direct Sales

comprising of Lubes and Industrial & Government sales and LPG.

Storage and Distribution:

HPCL has an extensive nationwide network comprising of pipe lines, terminals

and depots for the storage and distribution of petroleum products across the country.

Corporate Values or Objectives:

Consistently provide top quality products with prompt and efficient services to

ensure satisfaction.
Be cost effective and emphasize on high productivity and profitability.
Expedite redressel of employees, customers and shareholders grievances.
Motivate employees for professional and social advancement at all levels in a

participative environment.
Develop capabilities and enhance effectiveness of employees through training

and career planning.

Reward shareholders with consistent good returns.

HR VISION:

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 Excellence in harnessing the full potential of all employees for becoming a World

Class Energy Company.

HR MISSION:

"Your needs are our Business."

HR SPIRITS:

Satisfaction of Customers

Pride

Integrity

Role Model

Involvement and Commitment

Transparency

Spirit of Team Work

HPCL recruits its Management Staff by way of Officer Trainees through

advertisement in national newspapers on all India bases. The recruitment process consists

of written test, interview and group discussion. The candidates preferred for selection for

Operations are from Engineering field (Chemical, Mechanical, Civil, Electrical and

Instrumentation), for finance, charted accountants and campus selection for Operations and

HR officers from NT's and IIM's respectively.

The recruitment for Non-Management staff in both technical and administrative

fields is done based on the eligible candidates recommended by the local employment

offices.

HUMAN RESOURCES IN HPCL:

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 HPCL recognizes its Human Resources as the key to achieve organizational

excellence and a glaring identity in the competitive global arena. HPCL, with its Refineries

in Mumbai and Visakhapatnam, zonal offices in Delhi, Mumbai, Kolkata, and Chennai,

Terminals, Depots and regional offices in four corners of the country successfully runs

its business in refining, marketing and distribution of petroleum products to both industrial

sector as well as domestic sector. It has a wide network of retail dealership and LPG

distributorships through which it supplies various light distillates like petrol, diesels, and

LPG along with auto lubes to serve the day-to-day needs of its valued customers. These

activities are carried out by its 11,300 employees (approx.) who serve the corporation at

managerial, clerical and worker level, in order to enrich the skills of several employees

in fields IT, Technical, Safety, Management, Behaviors and office administration. HPCL

conducts regular training programs as its own management training institutes at NIGDI,

Pune apart from engaging external agencies for the purpose. HP team is headed by

chairman & managing director at the helm of affairs with the four reporting directors Viz.,

human resources, marketing, refineries and finance.

HUMAN RESOURCE PLANNING IN HPCL:

Manpower:

The total manpower in HPCL - VR as of 1 st April 2010 is 1154.

Manpower is classified into two categories:

(a) Management

(b) Non-management

Number of management employees - 492

Number of non-management employees - 662

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 Management Employees Are represented by grades A to I.

A Grade Officers, Engineers

B Grade Senior Officers, Senior Engineers

C Grade Deputy Manager

D Grade Managers

E Grade Senior Managers

F Grade Chief Manager

G Grade Deputy General Manager

H Grade General Manager

I Grade Executive Director

HPCL VISAKH REFINERY:

HPCL Visakh Refinery was commissioned in 1957 as Caltex Oil Refining

Limited (CORIL). It was first oil refinery on the East Coast and the first major industry in the

city of Visakhapatnam, Andhra Pradesh. The installed capacity of the refinery was 0.65

Million Metric Tons Per Annum (MMTPA) IN 1957. CORIL was taken over by Government

of India and merged with expanded in phased in phased manner over the years.

Visakh Refinery is Fuel Based refinery generating major products of mass

consumption like petrol, Diesel and Kerosene. Hence, crude meeting General Purpose

Characteristics can be processed with the existing refinery configuration. Visakh refinery has

flexibility to process wide range of crude procured across the globe and ranging from very

high sulfur to low sulfur and non-bituminous category to Bituminous and non-bituminous

category to Bituminous and Lubes bases crudes.

24
 Visakh Refinery consists of three crude / vacuum distillation Units, one with a capacity

of 1.5 MMTPA and other two having a capacity of 3.0 MMTPA each. Fluid catalytic cracking unit

has been provided as a secondary processing unit. There are two FCC units with a capacity of 0.4

MMTPA and 0.95MMTPA (after Revamp) respectively. This is the only one of two refineries in

India with two FCCUs. Besides these, the refinery has Propylene Recovery Unit (0.023MMTPA

Capacity), Bitumen Blowing Unit (0.225MMTPA Capacity) and various product-treating units.

The product quality standards with respect to sulfur content have been made more

stringent of late. To meet these new standards a Diesel Hydra-De- sulphurisation Unit

(DHDS) has been set up in the refinery at an approximate cost of Rs.794 crores. The

commissioning of DHDS facilities is in progress. The various process units of Visakh

Refinery have been provided by leading process licensors / technology suppliers. Visakh

Refinery was among the first in India to have digitals controls for refinery operations and

advanced controls were added later on to the existing units to facilitate accuracy in tank

gauging along with optimization / improvement in product blending. The project, is first of

its kind in India has recently been implemented in Mumbai refinery of HPCL.

The performance of Visakh Refinery has been excellent in the past in all relevant

areas like distillate production, R&D, specific energy consumption etc. the fire incident in

September 1997, gave a temporary setback to the refinery operations, which has been

overcome in a short period by the concerted efforts of all the employees. The refinery has

been reconstructed and the output levels in the years 1999-2000 was 4.55 Million tons.

Visakh Refinery attaches utmost importance to conservation of energy by regular

monitoring and analysis of fuel and utilities consumption, optimizing plant operations and

proper maintenance up keep of plant and machinery. The refinery has own national energy

conservation awards. Various energy conservation projects like efficiency furnaces.

25
Captive power plant, CDU / CTU integration, co Boiler, OM&S Automation, improved

Preheat Recovery etc. with a total investment of Rs. 214 crores have been implemented.

The fuel and loss for Visakh Refinery for the year 1999-2000 was 5.4 wt % on crude

as against the target of 6.8 wt %. The specific energy consumption was 140.2 MBTU /

BBL / NRGF, which is the lowest ever.

Concern for environment has always been a way of life at Visakh Refinery ever since

it went on stream in 1957. Over the years the refinery has invested large amounts in various

projects to meet the stringent emissions and discharges norms applicable to the refinery.

There are two Effluent Treatment Plants for treating wastewater to MINA's standards before

discharge to the sea. Sulphur Recovery Unit based on state-of the-art locate-n technology

was commissioned in 1994 to reduce sulphurdioxide emissions from the refinery. These

measures ensure that the impact of refinery operations on the surrounding environment is

minimal.

Visakh Refinery has always kept in mind its responsibility towards the society at

large, especially the weaker sections. Two tribal villages near Visakhapatnam-

manyapalem and Itchapuram have been adopted with the aim of uplifting them and

making them self-reliant. Various activities medical camps, adult/children education has been

undertaken. Manyapalem has already achieved 100% literacy. A school building has been

constructed at Itchapuram for primary education. The refinery has also distributed high

yielding varieties of coconut and fruit saplings. To supply drinking water, bore wells have

been dug and water was stored in Manyapalem.

Safety of both man and machine has to be given the utmost attention in any

industrial context. Visakh Refinery has received a number of awards given by various

national and international agencies for the excellent safety track record of the refinery. The

26
refinery is equipped with a firewater network, which is kept pressurized around the clock to

handle emergencies arising during operations. There is a separate Fire &safety department

manned by qualified with the relevant equipment.

Rect Sales /Di Lubes:

HPCL's Lube Blending plant at Silvassa (phase-1, with a capacity of 600KL/

month) was commissioned in December 1999 within a record completion period of 4

months. HPCL has made a foray into international marketing by appointing Distributors at

NEPAL, Sri Lanka, Bangladesh and Malaysia. HPCL achieved an export of Rs.1.5 crores to

Nepal. Keeping in view the changing customer preferences, HPCL has strengthened its

presence in the bazaar trade with commissioning of 51 new Distributorships.

Environment friendly 2-stroke engine oil-'Racer-2' has already become the second largest

selling brand in its category while, Lai Godha', an optimized diesel engine oil has Become

the largest selling lubricant in its category. 7 new automotive products and 14 new industrial

lubricants were introduced to meet specific applications.

The household insecticide brand 'Finite' was re- launched and notched a growth of

67%. HPCL is the only Oil Company with a presence in this business line.

LPG:

During the year 3 new LPG Bottling plants with a total capacity of 112 TMTPA

were commissioned at Madhurai, Pampore and User (phase2) and also augmentation of an

existing plant by 18TMTPA were completed. The new plant at USAR is the first HPCL unit to

have safer Mounded to range for LPG.A portable filling plant was commissioned at Banaskantha

in Gujarat for meeting rural market requirements. The overall capacity utilization of LPG plants

during the year was over100%.

Pipeline:

27
 Mumbai-Pune pipeline achieved a output of 3.58 MMT (against MOU 'Excellent'

target of 3.50 MMT) and Visakha-Vijayawada pipeline achieved an output of 2.60 MMT

(against an MOU 'Excellent' target of 1.50 MMT). The Visakha-Vijayawada PIPELINE

EXTENSION UP TO Secunderabad at a cost of Rs.377.55 crores was approved during

the year and the same is under implementation.

Depots / Terminals:

During the year 6 new POL depots /terminals with a tank age of 63700 KL at

Balasore, Panewadi (Manmad), Bekutchi, Tirunelveli, Kappalur (Madhurai) and

mavallur(Hudli). Additional tanker of 352550 KL at locations was completed.

As part of our pursuit of quality assurance they have obtained ISO9002

accreditation for select Bottling Plants, product Pipelines, retail Outlets and Lube plants.

RECENT TRENDS:

Visakh Refinery is in the process of establishing Environmental Management System

(EMS) for its operating complex and to get it certified by the ISO 14001 standards.

Organizational Environmental Policy has been issued; objectives, targets and

Environmental management programs are finalized. The system has been documented and

the implementation of the system is in progress. Visakh Refinery has plans to upgrade the

configuration of its facilities in order to achieve product value addition & produce

environmental friendly fuels conforming to the Euro III & Euro IV norms with mega

project of CFP (Clean Fuels Project) with a cost of rupees 2000 corers. Efforts are being

made to appoint a suitable consultant for carrying out a study for this purpose. Visakh

Refinery plans to bring about rapid improvement in its environmental &safety performance.

Over the next 5 years the Refinery aims to become a zero effluent installation. Initiative has

28
been taken to completely develop the safety function, which was made exclusively under the

PS&E Division of the TSD. Also efforts are on to establish a certified Safety Management

System in the Refinery.

SUPPORTING FACILITIES OF THE PROCESS UNIT:

Crude Receiving Facilities:

An Off Shore Tanker Terminal (OSTT), located at the outer harbor is used to

unload crude oil tankers and transport it to the refinery by a dedicated 36" crude oil line of

approx. 8.5 KM. The entire unloading berth has an effective firef ighting system with

remote operated monitors and sprinklers.

Other Activities:

HPCL - Visakh Refinery has made rapid progress in the area of Hazardous Solid

Waste Management, which is an issue of serious environmental concern. It has already

made successful pioneering efforts in the area of oily sludge processing. To develop a

sustainable and environmental sound strategy for long-term management of hazardous

solid wastes, the Refinery has entered into an agreement with EPTRI, Hyderabad and

VA-Project, Sweden for preparing an "Integrated Hazardous Solid Waste Management

Plan". This is the first initiative of its kind by an Indian Refinery. The plan is aimed at

creating a technically viable and environmentally sound system for the management of

every hazardous solid waste generated in the Refinery.

Joint Ventures:

Mangalore Refinery:

29
 The corporation's first joint venture, the Mangalore refinery and petrochemicals Ltd.

Formed in association with the Aditya Birla Group has achieved a milestone by expanding

the Refinery's capacity from 3 MMTPA to 9MMTPA during September 1999, three months

ahead of schedule in spite of carious difficulties and constraints like undulating terrain of

the site and heavy monsoon.

Punjab Refinery:

Preliminary activities for HPCL's proposal to set up a 9MMTPA Refinery at

Bathinda, in the state of Punjab, are in progress Environmental clearance for the project

including for the linked project Crude oil terminal at Mundra in Gujarat have been received.

In a bid to select a joint venture partner for the project, a confidentiality Agreement has

been signed with M/s Total Fina ELF for the same. HPCL Board has approved commencing

the project as its own project and subsequently include joint Venture partner, have so

required.

Power Project:

Selection of technical partner for HPCL's joint venture project with APGENCO for

setting up a Refinery -residue based 500 MW Power Plant at Visakh, at an estimated cost of

Rs.2208 crores, is at an advanced stage. The detailed feasibility report is also expected be

finalized shortly.

Bitumen Emulsion:

Hindustan Colas, HPCL's Bitumen Emulsion Company under joint venture with M/s.

colas S.A. of France, is operating with plants at Vashi, New Mumbai and Bahadurgar,

near Delhi. Its third plant near Chennai was commissioned during the year.

Consistent excellent performance has been made possibly by highly motivated

workforce of over 11,245 employees working allover India at its various refining and

marketing locations.

30
 HPCL continually invests in innovative technologies to enhance the effectiveness of

employees and bring qualitative changes in service. Business Process Re-Engineering

exercise, creation of Strategic Business units, ERP implementation, Organizational

transformation, Balanced score card, Competency mapping, benchmarking of refineries and

terminals for product specifications, ISO certification of Refineries and Supply Chain

Management are some of the initiatives that broke new grounds.

HPCL has successfully integrated Information Technology in its activities at different

levels. The Enterprise Resource Planning (ERP) system is now operational on J.D.Edwards,

an Oracle product, across the Corporation.

Recognition and Awards:

HPCL has won several awards in the year 2012-13. A brief account of the achievements in

2012-13 follows. (As of June 2012)

Awards / Recognitions:

HPCL ranks 267 in Fortune Global 500 list

Hindustan Petroleum Corporation Ltd. HPCL is ranked 267th position during 2011-12

in the prestigious list of Fortune Global 500 Companies.

HPCL ranks 1021 in Forbes 2000 list

Hindustan Petroleum Corporation Ltd. HPCL is ranked 1021 position during 2011-12

in the prestigious list of Forbes 2000.

IFCA STAR 2011 Awards

HPCL has been conferred with two IFCA (Indian Flexible Packaging & Folding

Carton Manufacturers Association) STAR 2011 Awards, in recognition of excellence

31
 in Packaging for introducing new technology / printing in Lube Oil Sector. 1) In-

Mould Labelling (IML) Technology for Lube Oil HDPE containers. 2) Heat Transfer

Labelling (HTL) Technology for Lube Oil buckets.

PETROFED - Project Management Company of the year award

HPCL has bagged the PETROFED Project Management Company of the year

award (in Rs. 500-2000 Crore Category) for Guru Gobind Singh Refinery Products

Evacuation Project (GGSRPEP) at New Delhi for its performance in completing the

project successfully during 2010-2011, at less than approved cost, managing project

schedule and quality while meeting norms of Occupational Health & Safety.

Internal Communication Excellence (ICE) Award

HPCLs Foundation Day Journal released specially on the occasion of 36th

Foundation Day during July 2011 has bagged the Internal Communication Excellence

Award, popularly known as ICE Award, instituted by Shailaja Nair Foundation,

Mumbai. HPCL has bagged two awards for the In-house Journal under the categories

Employee Participation and Special Issue of the Year.

SWOT ANALYSIS:

Strengths:

Profit making

32
 Adequate surplus

Technically strong management

Qualified employees

Capital market for petroleum products

Ability to adapt to high technologies

Dedicated operating staff and experienced maintenance crew strong technical service

support.

Well laid down systems and producers

Adequate captive power generation

Better carrier prospects

Highly experienced and qualified employees

Good water supply

Expansion feasible because expenditure need not be incurred from grass root level.

Weaknesses:

R&D being expensive and along run programmed purchasing of technology in more

feasible and preferably.

Simultaneously procuring those crude mixes which are in seasonal demand in

different regions.

Lack of infrastructure facilities in and around Visakhapatnam to take up emergency

maintenance jobs.

Opportunities:

33
 Scope for further expansion and diversification possibly by incurring one fourth of

expenditure only.

Availability of highly qualified, skilled and experienced employees.

Scope of listing of control on petroleum product prices by government of India.

High for by- products and petrochemical feed stocks.

Targets:

To serve the nations vital interest in the oil and related sectors.

To maintain continuity of supplies through their refinery and marketing network at

optimum cost to provide up-to-date technical assistance to the customer to conserve

and put the most efficient use of valuable energy resources.

To earn a reasonable return of investment.

To work towards achievement of self-relation in the field of oil refining formulation,

and distribution systems.

To maximize utilization of the existing facilities in order to improve efficiency and

increase productivity.

To keep in pace with the developments of international petroleum refining technology.

34
 THEORETICAL FRAME WORK OF EMPLOYEE ENGAGEMENT

EMPLOYEE ENGAGEMENT:

An organizations productivity is measured not in terms of employee satisfaction but

in terms of employee engagement. Employees are said to be engaged when they show a

positive attitude towards the organization and express a commitment to remain with the

organization. It is the level of commitment and involvement an employee has towards the

organization and its values. An engaged employee is aware of the business context and works

with colleagues to improve performance within the job for the benefit of the organization.

Different definitions by different people:

Engagement at work was conceptualized by Kahn (1990) as the harnessing of

organizational members selves to their work roles. In engagement people employ and

express themselves physically, cognitively and emotionally during role performances.

Put simply, Employee Engagement exists when the employee feels:

Physically

Intellectually

Emotionally

The second related construct to engagement in organizational behavior is the notion of

flow advanced by Csikszentmihalyi (1975).He defines Flow as the holistic sensation

that people feel when they act with total involvement. Flow is the state in which there is

little distinction between the self and environment. When individuals are in flow state little

conscious control is necessary for their actions. Employee engagement is thus the level of

35
commitment and involvement an employee has towards their organization and its value. The

organization must work to develop and nurture engagement which requires a two way

relationship between employer and employee. Thus employee engagement is a barometer that

determines the association of a person with the organization.

The Gallup Organization - Employee engagement is the involvement with and

enthusiasm for work

The Conference Board - Employee engagement is "a heightened emotional

connection that an employee feels for his or her organization, that influences him or

her to exert greater discretionary effort to his or her work".

Hewitt Associates - Engagement is the energy, passion, or fire in the belly

employees have for their employer. It is the state of emotional and intellectual

commitment to an organization or group producing behaviour that will help fulfil an

organization's promises to customers - and, in so doing, improve business results.

According to Nelson & Simmons -

Employee engagement has been defined more completely when employees feel

positive emotions toward their work, find their work to be personally meaningful,

consider their workload to be manageable, and have hope about the future of their work.

Stay - They have an intense desire to be a part of the organization and they stay with

that organization;

Say - They advocate for the organization by referring potential employees and

customers, are positive with co-workers and are constructive in their criticism;

Strive - They exert extra effort and engage in behaviours that contribute to business

success.
36
Employee:

A person is hired to provide services to a company on a regular basis in exchange for

compensation and who does not provide these services as part of an independent business.

Engagement:

Engagement is the two-way relationship between two or more entities.

Employee Engagement:

"Employee Engagement is a measurable degree of an employee's positive or negative

emotional attachment to their job, colleagues and organization which profoundly influences

their willingness to learn and perform at work".

EMPLOYER EMPLOYEE

Engagement can also be defined as

The extent to which people enjoy and believe in what they do and feel valued for

doing it.

Enjoyment

Engagement

Belief Value

37
HISTORICAL BACKGROUND OF EMPLOYEE ENGAGEMENT:

Over the past decade, the way in which people are managed and developed at work

has come to be recognized as one of the primary factors in achieving improvement in

organizational performance. This is reflected by popular idioms such as people are our most

important assets.

Back in the good old days of corporate world, things were pretty simple. Companies

put people on career tracks straight out of college; they gave employees a job for life and

waved them goodbye with a gold watch at retirement. The promise of the stable life as a

company employee kept both morale and productivity high.

Then things changed. Competition increased, margins shrank and shareholders got

more demanding. Suddenly, company staff were finding the very job security theyd counted

on was disappearing, and at speed. This upheaval meant companies had to find new ways to

motivate their employees in order to make them more productive since, without stability,

employees were looking for something else from their employers. And thus, Engagement was

born.

In itself, engagement isnt really a new idea; owners and managers have been talking

about engagement, in one form or another, for centuries they just used different words to

express it. In former times, engagement focused more on productivity and achieving results

through threat of punishment or by means of reward. But common sense - and good

communication - eventually won out and, today, organizations everywhere are spending

serious money on all forms of employee engagement. Boiled down, it simply means

developing a happy and loyal workforce. Enlightened managers now realize that any

company as a whole will benefit when its employees know whats going on and they feel part

38
of the team. The tricky part is in defining what makes a workforce happy, and in

understanding how this good will translates into company success.

From the extant literature review, it is acknowledged that successful organizations

share a fundamental philosophy of valuing and investing in their employees. In fact many

research studies have described human resource management as a means of achieving

competitive advantage. Consistent with this it is an equally important issue for the

organization to retain their critical (core) employees. Most organization today continues to

struggle with retention because they are relying on salary increases and bonuses to prevent

turnover. Essentially more organizations are now realizing that retention is a strategic issue

and continues to be a competitive advantage.

The term engagement stems from the work of Kahn (1990) who distinguished

between being engaged and disengaged at work. Putting the humanistic factors together,

Beer, Specter, Lawrence, Quinn-Mills and Walton (1984) created the Harvard Business

School model of HRM which focused on people in an organization to be the key resource. In

light of such critical emphasis being placed on human capital, Paula Ketter has aptly noted,

Engagement is all about creating a culture where people do not feel misused, overused,

underused or abused.

At a very basic level, employee engagement draws from the tenets of the Hierarchy

of Needs as conceptualized by Maslow, the highest stage of which is self-actualization; the

pinnacle of an individuals fulfillment of talent and potential. This theory of higher order

needs was largely overlooked in the heydays of scientific assembly line manufacturing.

39
EMPLOYEE ENGAGEMENT IN INDIA:

The recent Work Asia research study by Watson Wyatt Worldwide indicates that India

has the highest percentage of highly engaged workers at 78% in Asia as compared to Japan,

which has the lowest employee engagement level at 39%.

Head to head with China, the engagement level of the Indian worker is 20% more

than his Chinese counterpart. These are all encouraging signs - but the challenges and the

opportunities ahead are manifold. The imminent US slowdown, shrinking of talent pool,

slowdown in hiring, larger employee expectations are all challenges for internal

communicators to cope with. The Gallup Organization describes employee engagement as the

"the involvement with and enthusiasm for work".

The challenges faced by organizations in India are around attrition, communication,

career development and engagement while trying to keep pace with the explosive growth.

Outsourcing outfits have the highest attrition rates losing staff at a rate of between 100% and

200% a year. It is widely believed that organizations spend an average of 36% of their

revenues on their employees but do not have a tangible way to measure its impact.

A Mercer study Whats Working a series of national research on worker insights,

highlights factors that make a difference to employee engagement. The surveys 125

questions elicit views in the areas defined by Mercers Human Capital Strategy Model and

cover training and development, work environment, leadership, performance management,

work/life balance, communication, compensation, benefits, and engagement.

The India study throws up some fascinating directions for HR and internal

communication professionals. Employee engagement is no more just about the employees

intent to leave. The employees commitment to the organization and motivation to contribute

40
to the organizations success plays a significant role. The top three drivers in India are trust in

senior management, how the organization is perceived for customer service and fair pay.

Surprisingly, from an Indian context, the least valued factors in the continuum were benefits,

compensation and performance management.

In India, having a long-term career is considered positive and stable. Frequent job

changes are viewed negatively and therefore the high scores around the commitment count

are in line with the mindset.

Internal communication and HR professionals need to take note of the employees

need for giving feedback and to observe action taken from this. Employees seem to be getting

very little information on the organizations vision and future plans, a cause of concern. Other

areas for action include the organizations reputation in the market congruent to other

research in this space which believes that organizations which are socially responsible are

considered better places to work. In the talent management bracket, managers fare poorly for

their involvement, understanding and support as well as for merit based appraisals.

In India, with a large number of global players entering the market, the talent pool has

now a plethora of choices and even these multinationals are finding it tough to retain staff.

The Canadian HR Reporter writes that employees want to know where their careers are

heading and that is a critical component of the talent retention strategy organizations need to

focus on. Softer styles of leadership have a better impact in India and China leaving

organizations to develop or seek leaders who can fill this need.

41
FOCUS ON EMPLOYEE ENGAGEMENT:

Engagement by industry -With the exception of government sector which has relatively low

engagement levels some high tech industries (pharma, biotech)score low whereas some

service focused industries(retail, consumer products)score high.

Engagement by level -Studies show that people higher up in the organization experience

higher engagement. However there is a drop in engagement past the vice-president level.

Engagement by gender -the survey reveals a larger disparity between men and women. Men

count 8%more fully engaged and 6%less disengaged than women.

Taking global figures into account, it can be said that Indian workers are among the most

focused and satisfied in the world.

BASIC ASPECTS OF EMPLOYEE ENGAGEMENT:

There are three basic aspects of employee engagement:

The employees and their own unique psychological makeup and experience.
The employers and their ability to create the conditions that promote employee

engagement.
Interactions between employees at all levels.

Thus employee engagement is a partnership between a company and its employee where

everyone works together to achieve the business objectives of the company and fulfill their

personal aspirations. It is therefore largely the organizations responsibility to create an

environment and culture conducive to this partnership and a win-win equation.

42
CATEGORIES OF EMPLOYEES:

There are three different types of employees. They are engaged, not engaged, actively

disengaged.

1. ENGAGED - Engaged employees are builders. They want to know the desired

expectations for their role so that they can meet and exceed them. They are naturally

curious about their company and their place in it. They perform at consistently high

levels. They want to use their talents and strengths at work every day. They work with

passion and they drive innovation and move their organization forward.

2. NOT ENGAGED - Not engaged employees tend to concentrate in tasks rather than

the goals and outcomes they are expected to accomplish. They want to be told what to

do just so that they can do it and say they have finished. They focus on accomplishing

tasks vs. achieving an outcome. Employees who are not engaged tend to feel their

contributions are being overlooked and their potential is not being tapped. They often

feel this way because they dont have productive relationships with their managers or

with their co-workers.

3. ACTIVELY DISENGAGED - The actively disengaged employees are the cave

dwellers. They are consistently against virtually everything. They are not just

unhappy at work they are busy acting out their unhappiness. They sow seeds of

negativity at every opportunity. Everyday actively disengaged workers undermine

what their engaged co-workers accomplish. The problems and tensions that are

fostered by actively disengaged workers can cause great damage to an organizations

functioning.

WHAT DOES AN ENGAGED EMPLOYEE THINK, FEEL & DO?

I understand how my 43 I understand how my

role in the organization unit/department
is related to the contributes to the
organizations goals, success of the
objectives & direction. organization.
 COGNITIVE
THINK

I am willing to put in BEHAVIOURIAL AFFECTIVE I would recommend

a great deal of effort ACT FEEL my organization to a
beyond what is friend as a good place
normally expected to to work.
help my organization
to succeed.
I am personally I am proud to tell
motivated to help others that I work for
my organization to my organization.
Various researches have
be successful. been conducted in the past and all of them have one thing in

common that if an organization wants to sustain in the long run then it is really essential for it

to have an engaged workforce. Employees feel engaged when they find personal meaning and

motivation in their work, receive positive interpersonal support, and operate in an efficient

work environment. All efforts are made on maximizing employee output and making the

most of organizational resources. An engaged workforce takes an organization to great

heights.

Importance of Engagement:

Engagement is important for managers to cultivate given that disengagement or

alienation is central to the problem of workers lack of commitment and motivation (Aktouf).

Meaningless work is often associated with apathy and detachment from ones works (Thomas

and Velthouse). In such conditions, individuals are thought to be estranged from their selves

(Seeman, 1972) .Other Research using a different resource of engagement (involvement and

enthusiasm) has linked it to such variables as employee Turnover, customer satisfaction

44
loyalty, safety and to a lesser degree, productivity and profitability criteria (Harter, Schnidt &

Hayes, 2002).

An organizations capacity to manage employee engagement is closely related to its

ability to achieve high performance levels and superior business results.

Some of the advantages of Engaged employees are

Engaged employees will stay with the company, be an advocate of the company and

its products and services, and contribute to bottom line business success.

They will normally perform better and are more motivated.

There is a significant link between employee engagement and profitability.

They form an emotional connection with the company. This impacts their attitude

towards the companys clients, and thereby improves customer satisfaction and

service levels

It builds passion, commitment and alignment with the organizations strategies and

goals

Increases employees trust in the organization

Creates a sense of loyalty in a competitive environment

Provides a high-energy working environment

Boosts business growth

Makes the employees effective brand ambassadors for the company

A highly engaged employee will consistently deliver beyond expectations. In the

workplace research on employee engagement (Harter, Schmidt & Hayes, 2002) have

45
repeatedly asked employees whether they have the opportunity to do what they do best every

day, While one in five employees strongly agree with this statement. Those work units

scoring higher on this perception have substantially higher performance. Thus employee

engagement is critical to any organization that seeks to retain valued employees. The Watson

Wyatt consulting companies has been proved that there is an intrinsic link between employee

engagement, customer loyalty, and profitability. As organizations globalize and become more

dependent on technology in a virtual working environment, there is a greater need to connect

and engage with employees to provide them with an organizational identity.

Engagement Is Linked To Three Essential Forces In The Organization - Attrition,

Productivity & Profitability:

Attrition is the number of people leaving the organization and it's a well-known fact that is

one of the major problem being faced by the organizations be it any sector. An engaged

workforce definitely has less chances of leaving the organization, a person who is engaged in

his work is likely to stick to the company as he offers his best and as result of which the

organizations takes due care of him in the form of hike in salary by way of incentives and

bonus.

Attrition is likely to come down in the organization, which have engaged workforce

and this will get in the likely benefits for the organization.

Productivity is the output of the workers in the form of work done by them its not the

quantity that matters it's the quality that is of importance for the organization. An engaged

workforce has an understanding of what is expected of them at work so thus they are able to

46
carry on their task effectively and efficiently thus adding to the productivity of the

organization and thus adding to the growth and success of the organization.

Profitability is the ability of a company to earn a profit. It is a relative measure of success for

a business. Research has proved that an engaged workforce is likely to result in an increase in

the profitability of the concern as they have complete dedication and commitment to their

work and thus this is likely to result in an increase in the profit of the concern and thus

ensuring the success of the organization.

The organizations now days take all reasonable steps to ensure that they have engaged

workforce like organizing birthday bashes, talent shows, sports activities and many other

things. They want their employees to be committed to their work fully besides all the above

activities they also make sure that the employees have role clarity, get all the material and

equipment they require to perform their work efficiently etc.

47
THEORIES OF EMPLOYEE ENGAGEMENT:

48
 THE ROLE THEORY:

Employee engagement can be defined in terms of what people do at work, something

called the role theory. Role theory reviews different roles that people engage in at work, and

it explains reasons why people engage in certain roles and not in others.

The five work related roles that exist in any company are:

Job holder role -Employees come to work and do the job that is listed in their job

description

Team member role - Employees go above and beyond to help members of their

team work towards common goals.

Entrepreneur role - Employees come up with new ideas and processes and try to

get those ideas implemented.

Career role - Employees do things to enhance their career in the organization; they

learn, they adapt new skills, and more.

Organization member role -Employees do things that promote and help the

company even if its not part of their jobs or their teams duties.

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 In general we find that most employees have a sense of fairness and even if their

employer treats them poorly most will show up to work and do the job role. But having

employee show up at work and simply doing their jobs gets an employer nowhere in terms of

long term competitiveness.

If all your employees show up and only do their jobs, then you are not building

organizational strength and long term competitiveness through people because anyone can

hire those same employees and duplicate what you are doing.

It is the synergy that comes from people working together and gathering creative ideas that

leads to long term organizational wealth creation. That synergy and above and beyond

behavior is evidence of employee engagement.

EINSTEINS THEORY ON EMPLOYEE ENGAGEMENT:

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 Einsteins theory was based on the formulae that is E=MR2

ENGAGEMENT= MEANINGFUL RELEVANT RECOGNITION

K-A-B MODEL:

According to K-A-B MODEL for the success of employee engagement, the company must

follow three steps i.e.

Knowledge

Attitude

Behavior

51
 KNOWLEDGE:- Stakeholder must be aware of what is happening ,what the change

or engagement effort is, and what they will see happening across the organization, to

and by whom ,over what time period .this is the launch part of engagement

programs, and is also where much of the effort is focused-often to the detriment of

the subsequent stages.

ATTITUDE: - Once the stakeholders have internalized the knowledge, they need to

form an attitude about what they know .generally this means that they must see

tangible, positive evidence that the organization is serious about and committed to the

program .Evidence of behavior change emerges in key leaders, managers and

employees as, for example, process begin to evolve and changes are made.

BEHAVIOUR:- Once stakeholders have internalized the information and formed an

attitude about the change and what it means to them, it is essential that they are given

the tools, guidance and support needed to change their behaviors and must be visibly

intolerant of behaviors that do not align with achieving the objectives behind the

overall engagement efforts.

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THE TEN CS OF EMPLOYEE ENGAGEMENT:

How can leaders engage employees heads, hearts, and hands? The literature offers several

avenues for action; we summarize these as the Ten Cs of employee engagement.

1. Connect: Leaders must show that they value employees. Employee-focused initiatives

such as profit sharing and implementing worklife balance initiatives are important.

However, if employees relationship with their managers is fractured, then no amount of

perks will persuade employees to perform at top levels. Employee engagement is a direct

reflection of how employees feel about their relationship with the boss. Employees look at

whether organizations and their leader walk the talk when they proclaim that, Our

employees are our most valuable asset.

2. Career: Leaders should provide challenging and meaningful work with opportunities for

career advancement. Most people want to do new things in their job. For example, do

organizations provide job rotation for their top talent? Are people assigned stretch goals?

Do leaders hold people accountable for progress? Are jobs enriched in duties and

responsibilities? Good leaders challenge employees; but at the same time, they must instill

the confidence that the challenges can be met.

3. Clarity: Leaders must communicate a clear vision. People want to understand the vision

that senior leadership has for the organization, and the goals that leaders or departmental

heads have for the division, unit, or team. Success in life and organizations is, to a great

extent, determined by how clear individuals are about their goals and what they really want to

achieve.

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4. Convey: Leaders clarify their expectations about employees and provide feedback on their

functioning in the organization. Good leaders establish processes and procedures that help

people master important tasks and facilitate goal achievement. Good leaders work daily to

improve the skills of their people and create small wins that help the team, unit, or

Organization performs at its best.

5. Congratulate: Business leaders can learn a great deal from Woo dens approach. Surveys

show that, over and over, employees feel that they receive immediate feedback when their

performance is poor, or below expectations. These same employees also report that praise and

recognition for strong performance is much less common. Exceptional leaders give

recognition, and they do so a lot; they coach and convey.

6. Contribute: People want to know that their input matters and that they are contributing to

the organizations success in a meaningful way. First, an employee understands of the

connection between her work as operational zed by specific job-relevant behaviors and

the strategic objectives of the company had a positive impact on job performance. Second, an

employees attitude towards the job and the company had the greatest impact on loyalty and

customer service than all the other employee factors combined. Third, improvements in

employee attitude led to improvements in job-relevant behavior; this, in turn, increased

customer satisfaction and an improvement in revenue growth. In sum, good leaders help

people see and feel how they are contributing to the organizations success and future.

7. Control: Employees value control over the flow and pace of their jobs and leaders can

Create opportunities for employees to exercise this control A feeling of being in on things,

and of being given opportunities to participate in decision making often reduces stress; it also

creates trust and a culture where people want to take ownership of problems and their

Solutions.

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8. Collaborate: Studies show that, when employees work in teams and have the trust and

cooperation of their team members, they outperform individuals and teams which lack good

relationships. Great leaders are team builders; they create an environment that fosters trust

and collaboration. Surveys indicate that being cared about by colleagues is a strong predictor

of employee engagement. Thus, a continuous challenge for leaders is to rally individuals to

collaborate on organizational, departmental, and group goals, while excluding individuals

pursuing their self-interest.

9. Credibility: Leaders should strive to maintain a companys reputation and demonstrate

high ethical standards. People want to be proud of their jobs, their performance, and their

10. Confidence: Good leaders help create confidence in a company by being exemplars of

high ethical and performance standards. Practitioners and academics have argued that

Competitive advantage can be gained by creating an engaged workforce.

Leaders should actively try to identify the level of engagement in their organization,

find the reasons behind the lack of full engagement, strive to eliminate those reasons, and

implement behavioral strategies that will facilitate full engagement. These efforts should be

ongoing. Employee Engagement is hard to achieve and if not sustained by leaders it can

wither with relative ease.

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THE LOYALTY FACTOR:

The key to employee engagement is creating greater motivation for their work and

commitment to their organization. It is not possible to retain professionals only by paying

high salaries and offering attractive benefits. We need to create enthusiasm for their roles,

their work and the organization and ensure they are well integrated.

Employee engagement relates to the employees commitment to the organizations

success. Engaged employees who are inspired and guided by the leadership equipped with the

right tools and managed by the right systems and process deliver superior performance.

Employee engagement today encompasses training, development, work environment,

leadership, performance management, work- life balance, communication, compensation,

benefits, commitment, fun and social activities.

The quality of output and competitive advantage of a company depends on the

quality of people. Employees want to work for an organization that is-successful, legal,

provides opportunities to grow, has managers who help employees and is socially

responsible.

56
Factors Leading to Employee Engagement:

Studies have shown that there are some critical factors which lead to Employee

engagement. Some of them identified are

Career Development- Opportunities for Personal Development:

Organizations with high levels of engagement provide employees with opportunities to

develop their abilities, learn new skills, acquire new knowledge and realize their potential.

When companies plan for the career paths of their employees and invest in them in this way

their people invest in them.

Career Development Effective Management of Talent:

Career development influences engagement for employees and retaining the most talented

employees and providing opportunities for personal development.

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Leadership Respectful Treatment of Employees

Successful organizations show respect for each employees qualities and contribution

regardless of their job level.

Leadership Companys Standards of Ethical Behavior

A companys ethical standards also lead to engagement of an individual

Empowerment

Employees want to be involved in decisions that affect their work. The leaders of high

engagement workplaces create a trustful and challenging environment, in which employees

are encouraged to dissent from the prevailing orthodoxy and to input and innovate to move

the organization forward.

Image

How much employees are prepared to endorse the products and services which their company

provides its customers depends largely on their perceptions of the quality of those goods and

services. High levels of employee engagement are inextricably linked with high levels of

customer engagement.

Other factors

Equal Opportunities and Fair Treatment

The employee engagement levels would be high if their bosses (superiors) provide equal

opportunities for growth and advancement to all the employees

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Performance appraisal

Fair evaluation of an employees performance is an important criterion for determining the

level of employee engagement. The company which follows an appropriate performance

appraisal technique (which is transparent and not biased) will have high levels of employee

engagement.

Pay and Benefits

The company should have a proper pay system so that the employees are motivated to work

in the organization. In order to boost his engagement levels the employees should also be

provided with certain benefits and compensations.

Health and Safety

Research indicates that the engagement levels are low if the employee does not feel secure

while working. Therefore every organization should adopt appropriate methods and systems

for the health and safety of their employees.

Job Satisfaction

Only a satisfied employee can become an engaged employee. Therefore it is very essential for

an organization to see to it that the job given to the employee matches his career goals which

will make him enjoy his work and he would ultimately be satisfied with his job.

Communication

The company should follow the open door policy. There should be both upward and

downward communication with the use of appropriate communication channels in the

59
organization. If the employee is given a say in the decision making and has the right to be

heard by his boss than the engagement levels are likely to be high.

Family Friendliness

A persons family life influences his wok life. When an employee realizes that the

organization is considering his familys benefits also, he will have an emotional attachment

with the organization which leads to engagement

Co-operation

If the entire organization works together by helping each other i.e. all the employees as well

as the supervisors co-ordinate well than the employees will be engaged.

DOES ENGAGEMENT REALLY MAKE A DIFFERENCE?

Should executives be concerned about these findings? Perhaps a more interesting

question to executives is: Is there a strong relationship between, say, high scores on

employee engagement indices and organizational performance? It seems obvious that

engaged employees are more productive than their disengaged counterparts. For example, a

recent meta-analysis published in the Journal of Applied Psychology concluded that,

employee Satisfaction and engagement are related to meaningful business outcomes at a

magnitude that is important to many organizations. A compelling question is this: How

much more productive is an engaged workforce compared to a non-engaged workforce?

Several case studies shine some light on the practical significance of an engaged workforce.

For example, New Century Financial Corporation, a U.S. specialty mortgage banking

company, found that account executives in the wholesale division who were actively

disengaged produced 28 percent less revenue than their colleagues who were engaged.

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Furthermore, those not engaged generated 23 percent less revenue than their engaged

counterparts. Engaged employees also outperformed the not engaged and actively disengaged

employees in other divisions. New Century Financial Corporation statistics also showed that

employee engagement does not merely correlate with bottom line results it drives results.

BENEFITS TO THE ORGANISATION:

Employee engagement builds passion, commitment and alignment with the

organizations strategies and goals.

Attracts more people like existing employee.
Increases employees trust in organization.
Creates a sense of loyalty in a competitive environment.
Lowers attrition rate.
Increases productivity and improves morale.
Provides a high energy working environment.
Improves overall organizational effectiveness.
Boosts business growth.
Makes the employee effective brand ambassadors for the company.

MEASURING EMPLOYEE ENGAGEMENT:

Employee engagement can be measured from two dimensions;

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How employees feel (their emotions towards the company, the leadership, the work

environment etc.)

How they intend to act in the future (will they stay, give extra effort etc.)

Employee engagement can be revealed in several ways, including pulse to

annual surveys, tracking changes in the attrition rate, increase in the number of

employee referrals and growth in productivity and business.

In many organizations the age old employee satisfaction surveys were considered

the most popular method for measuring how happy an employee was in the

organization. This is slowly being replaced by surveys that can effectively

measure employee engagement. For example: employee opinion survey.

The analyzed results help us gauge the level of employee engagement within the

company. It also helps to identify the weak areas. After each survey Action

Planning Group is formed within the organization that comprises a cross-section

of people from across the company; all departments and all levels are fairly

represented. This group then works on different projects leveraging the strengths

identified by the survey.

Conducting a survey without planning how to handle the results can lead

employees to disengage. It is therefore to feel the pulse; the action plan is just as

essential.
Employee engagement should be measured at regular intervals in order to track its

contribution to the success of the organization.

How to measure Employee Engagement?

Gallup research consistently confirms that engaged work places compared with least engaged

are much more likely to have lower employee turnover, higher than average customer loyalty,

above average productivity and earnings. These are all good things that prove that engaging

62
and involving employees make good business sense and building shareholder value. Negative

workplace relationships may be a big part of why so many employees are not engaged with

their jobs.

Step I: Listen

The employer must listen to his employees and remember that this is a continuous process.

The information employees supply will provide direction. This is the only way to identify

their specific concerns. When leaders listen, employees respond by becoming more engaged.

This results in increased productivity and employee retention. Engaged employees are much

more likely to be satisfied in their positions, remain with the company, be promoted, and

strive for higher levels of performance.

Step II: Measure current level of employee engagement

Employee engagement needs to be measured at regular intervals in order to track its

contribution to the success of the organization.

But measuring the engagement (feedback through surveys) without planning how to handle

the result can lead employees to disengage. It is therefore not enough to feel the pulsethe

action plan is just as essential.

Step III: - Identify the problem areas

Identify the problem areas to see which are the exact areas, which lead to disengaged

Employees

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Step IV: Taking action to improve employee engagement by acting upon the problem

areas

Nothing is more discouraging to employees than to be asked for their feedback and see no

movement toward resolution of their issues. Even the smallest actions taken to address

concerns will let the staff know how their input is valued. Feeling valued will boost morale,

motivate and encourage future input. Taking action starts with listening to employee feedback

and a definitive action plan will need to be put in place finally.

ORGANISATIONAL INITIATIVES:

Most organizations have a range of programs to improve the engagement level of their

employee. It should start right at the selection stage.

Choosing the right fit and giving a realistic job preview.

Strong induction and orientation programs.
Rigorous training and development from technical to soft skills to leadership

development programs.
To keep up the morale of people and drive them towards excellent performance,

incentives can be given such as recognition letters, profit sharing schemes, long

performance awards, ESOPs, building assets like own home.

Regular feedback to all people.
Communication forums like the in-house magazine and regular surveys and

conferences.
To maintain the quality of work-life and a balance between personal/professional

lives, there are recreational activities like festivities, get-togethers, sports etc.
An open and transparent culture to empower its people and develop entrepreneurs.

INCREASING EMPLOYEE ENGAGEMENT:

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 Provide Variety - Tedious, repetitive tasks can cause burn out and boredom over time.
If the job requires repetitive tasks, look for the ways to introduce variety by rotating

duties, areas of responsibility, delivery of service etc.

Conduct periodic meetings with employees to communicate good news, challenges

and easy-to-understand companys financial information. Managers and supervisors

should be comfortable communicating their staff and able to give and receive

constructive feedback.
Indulge in employee deployment if he feels he is not on the right job .Provides an open

environment.
Communicate openly and clearly about whats expected of employee at every level-

your vision, priorities, success measures etc.

Get to know employee interests, goals, stressors etc. Show an interest in their

wellbeing and do what it enables them to feel more fulfilled and better balanced in

work life.
Celebrate individual, team and organizational success. Catch employee doing

something right and say, Thank-You.

Be consistent in your support for engagement initiatives. If you start one and then drop

it, your efforts may backfire. Theres a strong connection between employees

commitment to an initiative and managements commitment to supporting it.

REAL EMPLOYEE ENGAGEMENT RULES:

We often think that super important corporate initiatives will transform our

organization into places where everyone will come to work and want to be more engaged.

Corporate initiatives cant make the magic. Employee engagement happens only when you

remove barriers to work and these barriers are unique to every work group. The people who

deliver the corporate initiatives have to make engagement happen, i.e., the managers.

HOW TO MOVE OWNERSHIP TO MANAGERS AND EMPLOYEES:

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 In order to move the employee engagement process from ownership by corporate HR

to ownership by and employees, several things must happen-

1. Measurement of employee engagement must be done more than once in a year. We

need multiple ways to assess engagement; the engagement metrics must include

performance measures.
2. You cant have engaged employees without super engaged managers.
Engagement improving efforts must start at top and work their way down. The

most senior executive must be assured that they are engaging their senior team and

that team has to work on creating a high engagement environment for its direct reports

& so on.
Engagement must be done by leadership through example. This process of top

down engagement is owned by each level of management. Each manager himself

benefits from the process, and then they share the benefits with their own employees.
In this learning process managers own employee engagement.
3. Engagement is about getting rid of things that block productivity.

We bring people to work, then put lots of obstacles in the way of their

being able to succeed. Creating an engaged workforce means getting barriers out of

the way for your employees to be effective. We cannot create a magic set of 20, 40, 80

survey questions that will assess the things that are getting in the way of productivity

and performance. These things can be lumped into categories but they differ from

company to company, department to department and employee to employee. These

productivity blockers and de motivators are not taught in a basic introduction to

management book. They are not going to disappear with the purchase of some new

technology or from hiring the latest management guru. Engagement will happen when

each individual manager learns whats getting in the way of his/her employees

performance and each manager chooses to take action.

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 4. The process of engagement is a process; you cant get it right at the year end. You

have to create a continuous learning, continuous improvement, continuous

measurement and continuous action process to maximize productivity.

Analysis of Employee Engagement in HPCL

MY JOB

1. Whether your compensation is commensurate with your skills and work?

S.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1. Strongly disagree 2 4
2. Dis agree 3 5
3. Neutral 7 12
4. Agree 31 54
5. Strongly agree 14 25
Total 57 100

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Compensation acts as the basic element for any type of the job. It is observed that most of

the employees are satisfied completely with the compensation they are getting. This

indicates the satisfaction level of employees and proves that this is a good pay

organization.

2. Whether the training sessions attended by you are really helpful in increasing

your job performance?

S.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1. Strongly disagree 2 4

2. Dis agree 8 14

3. Neutral 34 59

4. Agree 11 20

5. Strongly agree 2 3

Total 57 100

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Training can help new and current employees acquire the knowledge and skills they need to

perform their jobs. It is observed that most of the employees are not satisfied with training

sessions they attended and it is worrying thing. Make sure that your managers and employees

are trained about the importance of engagement.

3. Whether you are aware of Mission and Vision of your organization?

S.NO PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1. YES 54 95

2. NO 3 5

Total 57 100

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 Vision is about how the organization would like to see itself after a certain period of time.

And in this organization from above graph it is observed that majority of employees are

aware of their organization goals and this is a good thing for organization.

4. Whether your opinions and ideas are sought and given due consideration?

S.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1. Always 17 30

2. Often 18 32

3. Sometimes 18 32

70
 4. Rarely 3 5

5. Never 1 2

Total 57 100

Capturing employee suggestions and ideas drives employee engagement and improves

employee motivation. From above graph it infers that very less number of the employees

opined that their suggestions given due consideration .It should be improved to maximum

by encouraging through rewards or prizes for all employees who gives suggestions.

5. Do you receive the information and communication for performing your job?

S.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1. Always 32 56

2. Often 15 26

71
 3. Sometimes 5 9

4. Rarely 4 7

5. Never 1 2

Total 57 100

A well informed employee is the best employee a company can ever have. It infers that

only half of employees are getting proper information and communication for performing

their job and it should be increased to maximum extent for better performance of

employees and further for organizational growth.

6. Whether your manager regularly gives you the feedback about the area that you

need to develop/improve and helps you work on them?

S.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1. Always 33 58

2. Often 9 16

72
 3. Sometimes 11 19

4. Rarely 2 4

5. Never 2 3

Total 57 100

Timely and regular feedback from manager helps employees to improve their

performance in work. Only half of employees opined that they are always getting

adequate support from their superiors and it is required to enhance by conducting

communications meeting regularly for bridging the gap.

7. Do you regularly receive recognition/reward for doing good work from the HPCL?

S.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1. Always 26 46

2. Often 8 14

3. Sometimes 15 26

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 4. Rarely 5 9

5. Never 3 5

Total 57 100

Employee recognition drives business by reducing turnover, engaging employees and

reinforcing corporate values. Most of the employees are not satisfied with recognition of

the organization and it is required to increase this percentage for motivating employees

for further increasing their performance.

8. Whether the compensation and benefits offered at HPCL are fair and reasonable?

S.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1. Very good 27 47

2. Good 24 42

74
 3. Satisfactory 5 9

4. Not satisfied 1 2

Total 57 100

Compensation can powerfully influence employee engagement and commitment. Some

compensation components encourage commitment to employers, while others motivate

engagement in the job. Majority of the employees opined that they are getting suitable

salary for the work which they have done, it infers that salaries and facilities provided by

the organization are fair and reasonable.

9. Are you satisfied with the pay package given by your organization?

S.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1. Highly satisfied 22 39

2. Satisfied 28 49

75
 3. Neutral 3 5

4. Dis satisfied 3 5

5. Highly dissatisfied 1 2

Total 57 100

Pay package of any organization helps to improve employee contentment and reflects the

morale of the organization. Majority of employees are satisfied with the pay given by

organization, this proves that this is a good pay organization.

MY CO- WORKERS:

10. Whether your co-workers are pleasant and co-operative to work along with you?

S.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1. Strongly disagree 1 2

76
 2. Dis agree 2 3

3. Neutral 5 9

4. Agree 33 58

5. Strongly agree 16 28

Total 57 100

Cooperation in the workplace with coworkers is integral to the ability of all workers to

complete projects and assignments successfully. It is observed that majority of the

employees are satisfied with the cooperation getting from their co-workers and it

indicates the healthy team work while performing their job.

11. Is there is someone at work who encourages your development?

S.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

77
 1. YES 51 89

2. NO 6 11

Total 57 100

One very important responsibility of a supervisor or manager is to help your staff with

their professional and career development. This can be done by providing opportunities

for them to develop the knowledge, skills, abilities, tools, resources, and opportunities to

be successful in their job and career. Majority 0f the employees opined that they are

getting good support for performing their job.

12. Whether your co-workers will share information and new ideas with you?

S.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

78
 1. Always 17 30

2. Often 20 35

3. Sometimes 15 26

4. Rarely 3 5

5. Never 2 4

Total 57 100

Work relationships are important for building a career and finding satisfaction in your job.

Only few employees opined that they always share information with their co employees.

It is required to increase this percentage for better performance of the organization.

MY SUPERVISOR:

13. Whether your supervisor provides you with feedback and guidance?

S.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

79
 1. Always 32 56

2. Often 14 25

3. Sometimes 8 14

4. Rarely 1 2

5. Never 2 3

Total 57 100

Only half of the employees opined that they are always getting feedback and guidance, it

should be enhanced to maximum extent for better understanding of work and for reaching

organizations goals, and this can be done by conducting communication meetings between

workers and supervisors and frequent monitoring by management.

14. Whether your work has been monitored by your supervisor?

S.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1. Always 33 58

80
 2. Often 14 25

3. Sometimes 7 12

4. Rarely 2 3

5. Never 1 2

Total 57 100

It is important to monitor the work of employees so that employee works according to

standards and also employees get motivated. Only half of the employees are opined that

their work monitored by their supervisors and it is required to increase this percentage for

better performance of the employees and organization.

15. Whether your supervisor and you share a good working relationship?

S.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

81
 1. YES 54 95

2. NO 3 5

Total 57 100

The association between supervisor-employee relationship and job performance would enable

the implementation of more effective systems for management, and subsequently, better

productivity for the company through increased job performance. The above graph infers that

there is good team work between workers and supervisors, which is good for organization.

16. Whether your supervisor gives you clear and precise instructions?

S.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

82
 1. Highly satisfied 14 24

2. Satisfied 37 65

3. Neutral 4 7

4. Dis satisfied 1 2

5. Highly dissatisfied 1 2

Total 57 100

Supervisors should communicate regularly through staff meetings, in addition to taking

opportunities for coaching and mentoring. The above graph infers that there is a good

communication among supervisors and workers. This will help for understanding things

and for smooth running of the organization.

17. Whether youre superior encourages you by giving suggestions for improving your

performance?

83
 S.NO. OPTIONS NO. OF RESPONDENTS PERCENTAGE

1. Always 31 54

2. Often 16 28

3. Sometimes 7 12

4. Rarely 2 4

5. Never 1 2

Total 57 100

Satisfactory communication is essential for a successful organization because it closes the

gap between superior and subordinates by increasing the levels of trust, support, and the

frequency of their interactions. Half of the employees opined that they are getting good

encouragement always, it is required to enhance this percentage for better performance of

the employees and it can be done by conducting frequent communication meeting among

employees.

ORGANISATION:

84
18. Even if you had the opportunity to get a similar job with another organization, you

would stay within the HPCL?

S.NO PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1. YES 46 81

2. NO 11 19

Total 57 100

The long-term success of any company depends heavily upon the quality of its workers

and worker loyalty. It infers that majority of employees showing their loyalty towards the

organization and they are owing to proper concern shown by organization towards their

welfare.

19. In the Past years, whether you had any opportunities to learn and grow?

85
 S.NO PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1. YES 55 96

2. NO 2 4

Total 57 100

Companies offering employee growth and opportunity will ultimately gain a sense of

loyalty from their employees. Majority of employees opined they got opportunity for

learning and grooming in the organization.

20. Will you recommend this organization as a good place to work?

86
 S.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1. YES 53 93

2. NO 4 7

Total 57 100

Criteria for good work organization include such job characteristics as optimal

quantitative and qualitative workloads, opportunities for control at work, clarified work

roles balanced by other roles, and supportive social interaction. It is observed that

majority of employees are recommending this as good organization for working and this

proves that this is a world class organization.

21. Whether your organization shows concern for the safety of its employees?

87
 S.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1. Excellent 38 66

2. Good 13 23

3. Satisfactory 4 7

4. Not satisfied 2 4

Total 57 100

Employers' responsibilities to employees regarding, health and safety measures in the

workplace. It infers that majority of employees satisfied towards the safe working

environment of the organization.

22. There are good opportunities for professional growth in this organization?

88
 S.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1. Strongly disagree 2 4

2. Dis agree 3 5

3. Neutral 11 19

4. Agree 29 51
5. Strongly agree 12 21
Total 57 100

Today employees are more career conscious than ever. They are demanding more in terms of

personal growth and development. Organizations that fail to allow employees to meet their

individual needs will be losing valued employees. The above graph infers that most of the

employees are opined that they are having good opportunity for grooming in the organization

and this shows that the organizations concern for personal growth of the employees.

OVERALL:

23. Have you been fully engaged in doing your best work at this company?

89
 S.NO. OPTIONS NO. OF RESPONDENTS PERCENTAGE

1. Strongly disagree 1 2

2. Dis agree 1 2

3. Neutral 8 14

4. Agree 30 53

5. Strongly agree 17 30

Total 57 100

An engaged employee is one who is fully absorbed by and enthusiastic about

their work and so takes positive action to further the organization's reputation and

interests. It is observed that majority of the employees are fully engaged with job and it

indicates the optimum utilization of the manpower for healthy growth of the organization.

24. Overall, are you extremely satisfied with your job?

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 S.NO. PARTICLARS NO. OF RESPONDENTS PERCENTAGE

1. Strongly disagree 1 2

2. Dis agree 4 7

3. Neutral 8 14

4. Agree 23 40

5. Strongly agree 21 37

Total 57 100

Employee satisfaction is one way to assess whether employees are happy and engaged at

work. It is observed that most of employees are satisfied with the job they assigned, this

indicates intensity of their involvement and helps organization prosperity.

25. Are you feeling proud and happy for being associated with this organization?

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 S.NO. PARTICULARS NO. OF RESPONDENTS PERCENTAGE

1. YES 55 96

2. NO 2 4

Total 57 100

It is observed that majority of employees responded that they are happy for being associated

with this organization. This leads to effective profitability of the organization. This makes us

clear that the organization is employee welfare oriented one and employees do not want to

even switch the organization.

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 FINDINGS

It is observed that Majority of the employees are experienced and having adequate

competencies to drive the organization.

Most of the employees are satisfied completely with the compensation they are getting.

Majority of the employees are not satisfied with the training sessions they have attended,

some employees told that they have not yet attended the training sessions yet.

It is observed that all the employees are aware of their organizations vision and mission.

It indicates employees are working according to their organizational objectives and goals.

It is observed that very less number of employees opined that their suggestions are given

due consideration.

Only some employees are getting proper information and communication for performing

their job.

Most of the employees are getting adequate support from their superiors.

It is observed that majority of the employees are satisfied with the support and

cooperation getting from their colleagues.

Superiors and subordinates are sharing good working relationship.

Majority of the employees are showing loyalty towards the organization as they have job

security.

All most all the employees have got the opportunity for learning and growing in the

HPCL.

It is observed that most of the employees are fully engaged with the job and are feeling

happy for being associated with the HPCL.

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 SUGGESTIONS

Based on the analysis conducted in the organization the following are the recommendations

made to the organization.

It is found that majority of the employees are of age group above 35. Young people may

bring new ideas and knowledge into the business. Recruiting young people allows

organizations to plan for the future when older staff will be retiring. So the organization

has to recruit more young people.

Some of the employees are not satisfied with the training sessions attended by them and

some employees are given no training sessions. Training can help new and current

employees acquire the knowledge and skills they need to perform their jobs. And

employees who enhance their skills through training are more likely to engage fully in

their work, so the management should provide necessary trainings to their employees and

also involve employees, while designing training programs.

It is found that only some of the employees opined that their opinions and ideas are given

due consideration. Employee recognition enhances employee engagement and

commitment. So the management and managers should include employees in the goal-

setting process. This technique helps to ensure that workers understand the goals.

Only some of the employees are getting proper information, communication, feedback

and guidance for performing their job. So it should be increased to maximum extent by

conducting communications meeting regularly for better performance of employees and

further for organizational growth and frequent monitoring by management.

Every work whether small or big should be given to the employees in a way that it

appears to be challenging.

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 Once in a month there should be an informal discussion should be conducted between HR

professional and other employees and incorporate engagement as a business metric.

SUMMARY

Now a days the economy is growing at a fast pace in India and the competition in

every sector and industry is getting fierce and intense day by day therefore it has become

important for the organizations to take care of the minutest factor which can affect the

companys profitability and productivity.

Employee engagement is a tool which not only helps the company increase its

profitability and productivity but is also helpful in retaining the right talent which is again a

big challenge for the companies. Employee engagement is an outcome based concept. It is

the term used to describe the degree to which an employee is ascribed as aligned and

committed to their organization such that they are at their most productive.

The first chapter refers to the introduction of employee engagement where the need,

scope, objective, methodology, limitations are been explained. The second chapter illustrates

the data related to the birth and major sectors of oil industry in which we have undergone the

study and also about company profile, growth, structure, vision, mission, and other functional

departments in the organization, which are even, include the company awards and

achievements at a glance. The third chapter totally gives an idea about the conceptual

framework of the selected topic which adds the practices followed in the company. The fourth

chapter deals with the analysis of employee engagement in HPCL. The fifth chapter presents

the findings, suggestions, summary and conclusion of the overall project.

The given project is a study which finds the prevalent practices of employee

engagement in HPCL. It also includes the survey which measures the engagement level in

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HPCL with the help of QUESTIONNAIRE and analyzing the cause for low engagement in

all departments. It also gives the difference in the perception of the managers and their

subordinates which further gives an overview of the situation of engagement in HPCL.

CONCLUSION

The conclusion that can be drawn from the survey and interviews conducted is as follows:

Employee Engagement is the buzz word for employee communication. It is a positive

attitude held by the employees towards the organization and its values. It is rapidly gaining

popularity, use and importance in the workplace and impact organizations in many ways.
Employee engagement emphasizes the importance of employee communication on

the success of a business. Thus it has been suggested that organization can recognize

employees, more than any other variable, as powerful contributors to a company's

competitive position .As employee engagement is a continuous process of learning,

improvement, measurement and action.

Employees working in HPCL are happy for being associated with it. They are

satisfied with the job they assigned and with the compensation and benefits. This indicates

intensity of their involvement and leads to effective profitability of the organisation. This

makes us clear that HPCL is employee welfare oriented one and employees are fully engaged

with job.
It has been concluded that raising and maintaining employee engagement lies in the

hands of an organization and requires a perfect blend of time, effort, commitment and

investment to craft a successful Endeavour.

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 BIBLIOGRAPHY

BOOKS REFERRED:

K. Aswathappa (2007): Human Resource and Personal Management, Tata McGraw Hill

publishing company Ltd, New Delhi.

P.N.Arora, S. Arora, Statistics For Management, Third Revised Edition 2008.
LS. Prasad, Personnel Management and Industrial relation.
C.R. Kothari, Research Methodology New Age International Publishers Second

Revised Edition 2004.

Peter F.Drucker, The Practices of Management.

Robbins, Stephen R. Organizational Behavior.

URLs Referred:

www.scribd.com

www.wikipedia.com

www.google.com

www.hindustanpetroleum.com

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 ANNEXURES
QUESTIONNAIRE ON EMPLOYEE ENGAGEMENT

Dear Sir/Madam,

I Mrs Raja kumari Allu doing a project work on Employee Engagement Survey at HPCL. I

request you to kindly spare some time to fill up this questionnaire.

Employee information:

1. Employee name:

2. Designation:

3. Department:

4. Working since:

Employee Engagement questions:

Note: Please tick mark the relevant answer as provided against each question.

SECTION I:

Please mention your age:

o 20-25 o 25-30 o Above 30

Gender:

o Male o Female
Marital Status:

o Single o Married o Divorced

No. of years of experience:

o Less than 10years o 10 to 20 years

o 20 to 30 years o More than 30 years

SECTION 2:

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MY JOB

1. Whether your compensation is commensurate with your skills and work?

o Strongly o Dis o Strongly

o Neutral o Agree
dis agree agree agree
2. Whether the training sessions attended by you are really helpful in increasing your job

performance?

o Strongly o Dis o Strongly

o Neutral o Agree
dis agree agree agree

3. Are you aware of Mission and Vision of your organization?

o Yes o No

4. Whether your opinions and ideas are sought and given due consideration?

o Always o Often o Sometimes o Rarely o Never

5. Do you receive the information and communication for performing your job?

o Always o Often o Sometimes o Rarely o Never

6. Whether your manager regularly gives you the feedback about the area that you need to

develop/improve and helps you work on them?

o Always o Often o Sometimes o Rarely o Never

7. Do you regularly receive recognition/reward for doing good work from the HPCL?

o Always o Often o Sometimes o Rarely o Never

8. Whether the compensation and benefits offered at HPCL are fair and reasonable?

o Very good o Good o Satisfactory o Not satisfied

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9. Are you satisfied with the pay package given by your organization?

o Highly o Highly
o Satisfied o Neutral o Dissatisfied
satisfied dissatisfied

MY CO- WORKERS

10. Whether your co-workers are pleasant and co-operative to work along with you?

o Strongly o Dis o Strongly

o Neutral o Agree
dis agree agree agree

11. Is there is someone at work who encourages your development?

o Yes o No

12. Whether your co-workers will share information and new ideas with you?

o Always o Often o Sometimes o Rarely o Never

MY SUPERVISOR

13. Whether your supervisor provides you with feedback and guidance?

o Always o Often o Sometimes o Rarely o Never

14. Whether your work has been monitored by your supervisor?

o Always o Often o Sometimes o Rarely o Never

15. Whether your supervisor and you share a good working relationship?

o Yes o No

16. Whether your supervisor gives you clear and precise instructions?

o Highly o Highly
o Satisfied o Neutral o Dissatisfied
satisfied dissatisfied

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17. Whether your superior encourages you by giving suggestions for improving your

performance?

o Always o Often o Sometimes o Rarely o Never

ORGANISATION

18. Even if you had the opportunity to get a similar job with another organization, you would

stay within the HPCL?

o Yes o No

19. In the Past years, whether you had any opportunities to learn and grow?

o Yes o No

20. Will you recommend this organization as a good place to work?

o Yes o No

21. Whether your organization shows concern for the safety of its employees?

o Excellent o Good o Satisfactory o Not satisfied o

22. There are good opportunities for professional growth in this organization?

o Strongly o Dis o Strongly

o Neutral o Agree
dis agree agree agree

OVERALL

23. Have you been fully engaged in doing your best work at this company?

o Strongly o Dis o Strongly

o Neutral o Agree
dis agree agree agree

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24. Overall, are you extremely satisfied with your job?

o Strongly o Dis o Strongly

o Neutral o Agree
dis agree agree agree

25. Are you feeling proud and happy for being associated with this organization?

o Yes o No

Thank you very much for your cooperation.

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