INDIAN OIL CORPORATION LIMITED

PROJECT GUIDE
Mr.Ranjan Kumar(IOCL)
Dr. P.K. Jain (GU)
SUMMER INTERNSHIP PROJECT REPORT
“TRAINING NEEDS IDENTIFICATION”

2
 ACKNOWLEDGEMENT
I would like to thank Dr. P.K. Jain, my esteemed guide from department of Business
Administration, University of Gauhati, Ranjan Kumar(Training Manager) and Kailash
Chandra(Senior manager ,training) from the training department of Indian Oil Corporation
Limited, Noonmati, Guwahati for providing me with valuable help and all the necessary
details required for the completion of this project.
I would also like to thank Dr. Rinalini Pathak Kakati , Monosree Mahanta, Dr M Kakati, Dr
U.R. Dhar, D. Konwar for providing me with useful information, techniques and general
guidance in their respective fields which is of immense value to me and my compilation of
this project report. Without their guidance, this project would not see the light of the day.
Last but not the least, i would like to thank all the people associated with the project, whose
names could not be mentioned , howsever.

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 Table of Contents
Chapter No. Page No.
Preface 5

Executive Summary 6

1 Introduction
1.1 Introduction
1.2 Different Levels at which it is to be Conducted
1.3 Sources for Identifying Training Needs
1.4 Overall Process in Brief
1.5 Benefits of Needs Assessment
1.6 Introduction To Training Needs Analysis

2 Company Profile
2.1 Vision 17
2.2 Objectives 18
2.3 SWOT Analysis 22

3 Research Methodology
3.1 Sources of Data
3.2 Research population
3.3 Sampling size
3.4 Sampling design
3.5 Analysis

4 Data analysis and findings

Recommendation and Conclusion

BIBLIOGRAPHY
ANNEXURE

4
 PREFACE

Identification of training needs at employee, departmental, or organizational level, in

necessary for the organization to perform effectively. The aim of training needs
identification is to ensure that training addresses existing problems, is tailored to
organizational objectives, and is delivered in an effective and cost-efficient manner. Training
needs analysis involves monitoring current performance using techniques such as
observation, interviews, and questionnaires; anticipating future shortfalls or problems;
identifying the type and level of training required; and analyzing how this can best be
provided.
In this project we try to identify and analyse the training needs of the executives and
non executives of the Guwahati Refinery of the Indian Oil Corporation at the individual and
departmental level.
To collect data at individual level, I used questionnaires to determine the effect of the
present training system and its effectiveness. And at the departmental level, interviews
were conducted to determine whether the 14 HODs wanted to add new programmes or
eliminate old ones from the training calender of the company.
I worked as an intern from 1.06.2010 to 31.07.2010, a period of 60 days under the able
and direct guidance of Senior training officer, Ranjan Kumar who was tasked by the HR
department to prepare and execute the training calender for the year 2010-2011.

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 EXECUTIVE SUMMARY
 Project Title: Training Need Identification.
 Organisation: Guwahati Refinery, Indian Oil Corporation Limited.
 Organizational Guide: Mr, Ranjankumar(Sr Training Officer)
 Institution Guide: Dr. P.K. Jain (Reader, GU)
 Duration of the project: I.06.2010 to 31.07.2010
 Objective of the study: identification of training needs at Departmental level and
analysis of the existent TNI sysytem.
 Research Methodology: The Research carried out is a Descriptive study. Primary
data has been used. ANALYSIS TECHNIQUES used are both qualitative and
quantitative. The data has been collected through the use of surveys through
questionnaires and direct personel interview.
 FINDINGS: Most high level officers have complained of lack of efficiency among
subordinates.
 CONCLUSION: The TNI system of Indian Oil Corporation Ltd in its Guwahati
Refinery is obsolete and inefficient to meet the changing and challenging needs of the
oil industry.

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 INTRODUCTION
Human Resource Management (HRM) is the function within an organization that focuses on
recruitment of, management of, and providing direction for the people who work in the
organization. Human Resource Management can also be performed by line managers.
Human Resource Management is the process of management which develops and manages
the human element of enterprises. It may be defined as a set of policies, practices and
programmes designed to maximize both personal and organizational goals.

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

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

The goal of human resource management is to help an organization to meet

strategic goals by attracting, and maintaining employees and also to manage them effectively.
The key word here is "fit", i.e. a HRM approach seeks to ensure a fit between the
management of an organization's employees, and the overall strategic direction of the
company .
The basic premise of the academic theory of HRM is that humans are not
machines; therefore we need to have an interdisciplinary examination of people in the
workplace. Fields such as psychology, industrial engineering, industrial, Legal/Paralegal
Studies and organizational psychology, industrial relations, sociology, and critical theories:
postmodernism, post-structuralism play a major role.
There are seven management functions of a human resources (HR) department: staffing,
performance appraisals, compensation and benefits, training and development, employee and
labor relations, safety and health, and human resource research.

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

Training need identification is a tool utilized to identify what educational courses or

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

 To pinpoint if training will make a difference in productivity and the bottom line.
 To decide what specific training each employee needs and what will improve his or
her job performance.
 To differentiate between the need for training and organizational issues and bring
about a match between individual aspirations and organizational goals.

Identification of training needs (ITN), if done properly, provides the basis on

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

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

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

Also in order to bring synchronization between organizational and individual objectives

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

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 1.2 Different Levels at which it is to be Conducted

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

Organizational Needs

These concern the performance of the organization as a whole. Here identification of

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

Group Needs

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

Individual Needs

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

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 1.3 Sources for Identifying Training Needs
There are three sources for identifying training needs. Although they are independent sources
for gathering the necessary data but it is usually beneficial if they are considered
complementary to one another as the objective of the exercise is to prepare as consolidated
data of training needs as possible. The three sources are as follows:
JobProfile
It is a comprehensive description of all the functions and the responsibilities that a person has
to carry out in due course of his job. It is very common for us sometimes to find that people
of a particular department more or less perform the same kind of job and therefore a
comparative study can be done on their performance to pinpoint on the training needs of
those people who have not performed up to the mark. In here we can also include Job
analysis in order to have a realistic and systematic appraisal of training needs. Ignored to do
this first we need to break up the functions and responsibilities into categories. Next we have
to classify these tasks/activities on the basis of their relative importance to the nature of the
job. And lastly we can compute a priority listing of these tasks in order to have a catalogue of
knowledge, skills and attitudes required for effective performance of the job.
 
Experiences of the training agency
It is very common for organizations nowadays to hire professional training agencies in order
to look into the training matters. The training agency and the trainers thus should also draw
from their own experiences of organizing programmes for comparable groups or in similar
areas.
 However, earlier experiences can only serve to facilitate the process. It cannot be the sole
basis, as training needs of majority of organizations are very specific.
 
Pre-training survey of the participant's needs
This is suggested as the best way to conduct a training need identification .A pre-training
survey is nothing but a survey of the needs and expectations of the participants well in
advance of the programmed. And in this exercise it is better to include the superiors also as
they are in a good position to provide necessary data on the training needs of their associates,
especially in context of their performance. This is generally done in a systematic manner with
the help of a structured questionnaire in order to reflect the genuine desire to involve the
participants and the organization in the planning process. However it might happen in certain
cases that it is not possible to actively involve the superiors due to various reasons like lack
of time etc but in that case at least they must be kept fully informed of the proceedings.

  1.4 Overall Process in Brief

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Step 1: Define and chart part of the organisation in which the work has to be done. It is to
have a focused approach of the study. It could either be a particular department, a section, a
unit, a specific group or a staff category.
Step 2: Use various data collection measures to collect both qualitative as well as quantitative
data.
Step 3: Analyse the entire data collected in order to find out causes of problem areas and
priorities areas, which need immediate attention.
Step 4: Priorities the different training programmes according to the responses collected.
Step 5: Record and file the entire data so that it can be used for future reference while
designing the training programmes / training calendar.

1.5 Benefits of Needs Assessment

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

 The organization is informed about the broader needs of the participants. Through this
process it may be possible that certain new training programmes, which were,
previously not in their list may come to the forefront.
 The organisation is able to reduce the perception gap between the participant and
his/her boss about their needs and expectations from the training programme.
 The organisation is also able to pitch its course input closer to the specific needs of
the participants.
 It also saves a lot of money for the organization as otherwise money is just
unnecessarily wasted on those training programmes, which are either not needed by
the employees or they have no interest in undertaking them.
 Lastly, time, which is the most important resource today, is also saved, as the training
programmes conducted are the ones, which are actually needed by the participants.

1.6 INTRODUCTION TO TRAINING NEEDS ANALYSIS:

It is the ways to identify the learning needs of employees.

Successful organizations provide focused, timely training to their staff. They continuously
analyze training needs to identify and address skills gaps as they occur.
Most people can, if they put their mind to it, perform a training needs
analysis on staff within their organization in order to identify learning needs. All
it requires is a clear understanding of what is to be achieved, some knowledge of
the organization itself, and a consistent, methodical approach.

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There are two general forms of analysis of training needs. One is a general, high level
approach that usually takes place during annual reviews or appraisals. The second is a more
detailed analysis that tends to be linked to specific projects, such as the implementation of a
new computer system.
Analysing training need often forms part of an ongoing cycle of needs assessment, training
delivery and evaluation of the training, which leads back to needs assessment.
The internet is a valuable resource is for material about training needs analysis. There is
plenty of material available online, including training needs analysis templates. These
resources are extremely useful, but examples and templates found online are unlikely to be an
ideal fit for any organization. They will need to be tailored to meet specific local
requirements.

Understanding the Objectives of Training Needs Analysis

Before any form of training need analysis takes place it is essential to establish its objectives.
Is it being conducted as part of an annual review or appraisal process, to help a manager
determine which courses to send his or her staff on? This tends to be a very general, or high-
level approach to identifying learning needs, and is largely subjective. The outcome is a
training programme which often involves taking off-the-shelf training, delivered internally or
externally, and perhaps some mentoring or one-to-one training.
Alternatively, the training analysis forms part of a specific project, such as the
implementation of a new computer system. The analysis is more detailed, involves multiple
steps, and is more objective. The outcome is information about the skills gaps of a particular
group of people, which is then used to develop a customized training program that fills those
gaps.

Data Collection Methods for Training Needs Analysis

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

 Interviewing managers to learn what they want their staff to know.

 Interviewing staff to discover where they think their skills gaps lie.
 Interviewing other relevant parties, such as implementation consultants if the training
is linked to a new system implementation.
 Questionnaires for learners to self-assess their knowledge.
 Studying documentation that defines the objectives of project or the function of a
team.

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

Processing The Result of Analysis

Once the data has been collected it is important that it is correctly assessed. This involves
reviewing the data to identify trends and themes.
The level of detail will depend on the number of learners being assessed. The outcome of the
assessment should be a list of subjects in which training is required, and a list of the groups,
or individuals, who need that training. This information can then be used to develop a
training plan.
Unexpected Outcomes of Analysis
It is possible that the process of analysing learning needs leads to the identification of other
issues. It could reveal that there is poor communication within or between departments or
teams, or even that there is a break down of relationships. Analysis can pin-point problems
with staff morale or systemic weaknesses within the organization. It may lead to the
conclusion that training alone will not resolve a particular problem.
For these reasons it is important that the person conducting the analysis knows to whom these
findings should be reported, without running the risk of making problems worse.
Organizations that invest in analysis of training needs and development of training
programs to address those needs will, in time, feel the benefit of filling their skills gaps and
will also build and maintain staff morale.
RESEARCH OBJECTIVE: identification of training needs at Departmental level and
analysis of the existent TNI sysytem.
HYPOTHESIS: Since this is a exploratory and descriptive research study, we will not be
forming any hypothesis.
NEED: this project was deemed necessary by the training department of the Human
resource division of the IOCL, Guwahati Refinery for the compilation of the training
calendar for the year 2010-11 and evaluation of the weaknesses of the present TNI module.

COMPANY PROFILE
13
 In 1881, Assam Railway & Trading co. began laying of tracks in Assam. They used
elephants in place of cranes. One day, one of the elephants wandered away, to come back
with its feet smeared by slimy oil. Backtracking led to the discovery of oil in Borbhil,
near present day Digboi. A Canadian driller, Willey Leove hollered at native boys, “Dig
boy dig”. Oil was struck and the name ‘Digboi’ stuck. Digboi became the birth place of
India’s oil industry.
In 1890s, crude oil distillated at Margherita, 16 km away from Digboi, in cast iron pans,
called ‘Stills’. Digboi Refinery of Assam Oil Company (AOC) was commissioned at its
present location in 1901. AOC nationalised and its Refining and Marketing functions
merged with IOC in October, 1981. Digboi refinery is one of the oldest refineries in the
world that is still working.

At the time of independence, India’s oil industry was fully controlled by international oil
cartel. In 1956, Industrial Policy Resolution was passed, which laid the foundation of
national oil industry. The resolution stated – “Oil is of vast importance in the world
today. A country that does not produce its own oil is in a weak position. From the point
of view of defence, the absence of oil is a fatal weakness”. Exploration & production
was put into Schedule – ‘A’, meaning thereby that only state would operate in this field.
Soon thereafter, ONGC was formed for oil exploration and drilling.
Indian Oil Refineries were formed in 1958 for refining and manufacturing of
petroleum products, with Shri. Feroze Gandhi as its Chairman. This was followed by the
formation of Indian Oil Co. in 1959, for marketing and distribution of petroleum
products.
In 1960, Indian Oil Co. signed a historic agreement with Soviet Union for import of
1.5 MMT of SKO, HSD, and ATF over a period of 4 years on ‘rupee payment bases’.
This initiated the end to the monopoly of foreign oil companies.
On 1st September 1964, as a step towards achieving improved efficiency, Indian
Refineries and Indian Oil Co. were merged and Indian Oil Corporation Ltd. (IOCL) was
born.
Indian Oil’s gross turnover (inclusive of excise duty) for the year 2009-10 touched Rs.
2,71,074 crore. The Profit after Tax was Rs 10,221 crore. For the year 2009-10, IndianOil
has accounted for cash compensation of Rs 15,172 crore, out of which Rs. 7,100 crore has
been received during the year. In addition, the company has been granted discount of Rs
7,548 crore received from upstream companies, as per the under recovery sharing
mechanism. The Board of Directors has recommended a dividend of Rs 13 per share.

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

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

14
company in the world and the number one petroleum trading company among the National
Oil Companies in the Asia-Pacific region. IOCL was featured on the 2008 Forbes Global
2000 at position 303. It was adjudged as ‘one of the best employers’ in India by an Outlook
Business- Hewitt Associates study conducted in 2008-09. In its endeavor to realize the vision
of becoming the ‘energy of India and ‘a globally admired energy company’, Indian Oil (IOC)
is looking for bright result - oriented professionals to join its journey of growth.

For the year 2007-08, the IndianOil group sold 59.29 million tonnes of petroleum
products, including 1.74 million tonnes of natural gas, and exported 3.33 million tonnes of
petroleum products. The Corporation's cross-country network of crude oil and product
pipelines, spanning about 9,300 km and the largest in the country, meets the vital energy
needs of the consumers in an efficient, economical and environment-friendly manner.
.
In India, organizations or companies under the oil industry are broadly classified
under 2 groups:-
1. Upstream companies or Oil exploration companies.

Upstream oil companies are those which deal in exploration and extraction of
crude oil. Upstream oil companies in India include:
(i) Oil and Natural Gas Company (ONGC).

(ii) Oil India Limited (OIL).

(iii) Reliance India Ltd.

2. Downstream companies or Oil marketing companies.

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

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

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

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

II. Private sector.

(i) Reliance India Limited.

(ii) Others.

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

15
pumps are also in operation for the convenience of large consumers, ensuring products and
inventory at their doorstep.

Indian Oil operates the largest and the widest network of petrol & diesel stations in the
country, numbering over 17,600. It reaches Indane cooking gas to the doorsteps of over 50
million households in nearly 2,700 markets through a network of about 5,000 Indane
distributors. Indian Oil’s ISO-9002 certified Aviation Service commands over 62% market
share in aviation fuel business, meeting the fuel needs of domestic and international flag
carriers, private airlines and the Indian Defense Services. The Corporation also enjoys a
dominant share of the bulk consumer business, including that of railways, state transport
undertakings, and industrial, agricultural and marine sectors.
Indian Oil’s world-class R&D Centre is perhaps Asia's finest. Besides pioneering work in
lubricants formulation, refinery processes, pipeline transportation and alternative fuels,
the Centre are also the nodal agency of the Indian hydrocarbon sector for ushering in
Hydrogen fuel economy in the country. It is in the process of setting up a commercial
Hydrogen-CNG station at an Indian Oil retail outlet in New Delhi this year. It has
commissioned a bio-gas plant and bio-mass gasifier plant during the year 2007-08 for
conducting research into energy-efficient bio-gas business.
Indian Oil joined the league of global technology providers last year with the
selection of its in-house developed INDMAX technology (for maximizing LPG yield) for
the 4 MMTPA Fluidized Catalytic Cracking (FCC) units at the Corporation's upcoming
15 MMTPA refinery-cum-petrochemicals complex at Paradip in Orissa, as well as for the
FCC unit coming up at BRPL. A wholly owned subsidiary, Indian Oil Technologies Ltd.,
is engaged in commercializing the innovations and technologies developed by Indian
Oil’s R&D Centre.
Indian Oil and its subsidiaries account for a 47% share in the petroleum products market,
40% share in refining capacity and 67% downstream sector pipelines capacity in India. The
Indian Oil Group of Companies owns and operates 10 of India's 19 refineries with a
combined refining capacity of 60.2 million metric tons per year.
Indian Oil Corporation has two major domestic competitors, Bharat Petroleum and
Hindustan Petroleum. Both are state-controlled, like Indian Oil Corporation. There are two
private competitors, Reliance Petroleum and Essar Oil.
Indian Oil is investing Rs. 43,393 crore (US $10.8 billion) during the period 2007-12 in
augmentation of refining and pipeline capacities, expansion of marketing infrastructure and
product quality up gradation as well as in integration and diversification projects.

2.1 VISION OF THE COMPANY

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

VALUES- Values we nurture

Care - stands for Innovation - stands for

 Concern Creativity
 Empathy Ability to learn
 Understanding Flexibility
 Cooperation Change
 Empowerment

Passion - stands for Trust - stands for

 Commitment Delivered Promise

 Dedication Reliability
 Inspiration Dependability
 Pride Integrity
 Ownership Truthfulness
 Zeal & Zest Transparency

 To achieve international standards of excellence in all aspects of energy

and diversified business with focus on customer delight through value of products
and services, and cost reduction.

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

 To attain leadership in developing, adopting and assimilating state-of-the-

art technology for competitive advantage.

 To provide technology and services through sustained Research and

Development.

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

contribution.

 To cultivate high standards of business ethics and Total Quality

Management for a strong corporate identity and brand equity.

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

2.2 OBJECTIVES

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

 To ensure and maintain continuous and smooth supplies of petroleum products by

way of crude refining, transportation and marketing activities and to provide
appropriate assistance to the consumer to conserve and use petroleum products
efficiently.

 To earn a reasonable rate of interest on investment.

 To work towards the achievement of self-sufficiency in the field of oil refining by

setting up adequate capacity and to build up expertise in laying of crude oil
petroleum product pipelines.

 To create a strong research and development base in the field of oil refining and
stimulate the development of new product formulations with a view to
minimise/eliminate their imports and to have next generation products.

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

increase productivity.

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

 To minimise fuel consumption in refineries and stock losses in marketing

operations to effect energy conservation.
 To further enhance distribution network for providing assured service to customers
throughout the country through expansion of reseller network as per Marketing
Plan/Govt. approval.
 To avail of all viable opportunities, both national and global, arising out of the
liberalisation policies being pursued by the Government of India.
 To achieve higher growth through integration, mergers, acquisitions and
diversification by harnessing new business opportunities like petrochemicals,
power, lube business, consultancy abroad and exploration & production.

OBLIGATIONS

I. Towards customers and dealers.

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

II. Towards suppliers.

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

III. Towards employees

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

 Expeditious redressal of grievances.

 Fair dealings with recognised representatives of employees in pursuance of healthy

trade union practice and sound personnel policies.

IV. Towards community.

 To develop techno-economically viable and environment-friendly products for the

benefit of the people.

 To encourage progressive indigenous manufacture of products and materials so as to

substitute imports.

 To ensure safety in operations and highest standards of environment protection in its

manufacturing plants and townships by taking suitable and effective measures.

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

national policies.

S.NO. LOCATION OF REFINERY CAPACITY

(MMTPA)
1. GUWAHATI 1.00
2. BARAUNI 6.00
3. KOYALI 13.70
4. HALDIA 6.00
5. MATHURA 8.00
6. DIGBOI 0.65
7. PANIPAT 12.00
8. BRPL 2.35
9. *CPCL 09.50
10 *NARIMAN 1.0
MMTPA – Million Metric Tons Per Annum.

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 Gujarat MathuraPanipat Barauni Haldia GuwahatiDigboi CPCL BRPL
LPG         
Naphtha         
MS-BS-II         
MS-BS-III    
SK         
ATF AN INTRODUCTORY NOTE 
ON THE GUWAHATI  REFINERY 
HSD-BS-II         
Guwahati Refinery is one of the largest production based organization in the
HSD-BS-III      
FO entire Northeast having  900 employees in total.
 Guwahati Refinery,
 the first

LSHS/HPS        
Wax public sector refinery of the country, was built
 with Romanian collaboration

LOBSand was inaugurated by the first Prime Minister  of India, Pandit Jawaharlal
Bitumen     
RPC Nehru, on 1st January 1962.     
LABFS 
LAB Indian Oil commissioned India's first product pipeline, the Guwahati -
pX Siliguri pipeline, in 1965. This 435-Km pipeline connecting Guwahati

PTA Refinery to different installations was designed to carry about 0.818 MMT of
oil per year. As on 1st April 2003 Indian Oil operates the country's largest network of
7170 km of crude and product pipeline with a total capacity of 52.75 million metric
tonnes per annum.From a small beginning with a sale of 0.032 million kilolitres, Indian
Oil achieved sales of 10 million kilolitres with a turnover of Rs. 635 crore and profit Rs.
22.5 crore by the late 60's. From then on, the company has grown from strength to
strength and presently the company sold 46.46 million tonnes of petroleum products in
the domestic market during the financial year 2003.Guwahati Refinery is amongst those
Indian Refineries who have been rewarded with ISO-9001 certification of International
Quality Standards as well as ISO-14001, for Environment Management System and
Occupational Health and Safety Management System (OSHMS) which is also a stringent
International Standard which very few Indian Companies have achieved till date. M/s
DNV has certified Guwahati Refinery with International Safety Rating System (ISRS)
level-6 certification. These achievements show the deep commitment of Guwahati
Refinery to Quality, Safety and Environmental Management System. Guwahati Refinery
came into operation in the year 1962 with an installed capacity to process 0.75 MTPA of
Assam Crude. After debottling the operating process units, the total refining capacity was
subsequently enhanced in first stage to 0.85 MMTPA and now to 1.0 MMTPA. The
Refinery has an elaborate pollution control system to ensure that water generated are
adequately treated prior to discharge into the river Brahmaputra. More than 50 % of the
treated effluent water is now reused in the refinery.

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

20
Its product slate includes LPG, Motor Spirit (MS), Kerosene, High Speed Diesel (HSD),
Light Diesel Oil (LDO), Straight Run Naphtha (SRN), Raw Petroleum Coke (RPC), and
special cut naphtha (RN) which is used as a feed stock for CRU of Digboi Refinery of
Assam Oil Division. Keeping pace with changes in Industrial Environment, Guwahati
Refinery is diversifying to produce specialty products like Premium MS & Needle coke
etc. for gearing up the cleaner fuel requirements of the country in coming years.

Guwahati Refinery is the first refinery in India to produce Needle Coke.

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

2.3 A BRIEF ON MANUFACTURING PROCESS AT GUWAHATI REFINERY

At Guwahati Refinery refining crude oil produces various petroleum products. The
process involved in production of these products can be described under three basic steps:
DISTILLATION, CRACKING and TREATING.

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

2.CRACKING
The process of breaking down the larger, heavier and more complex hydrocarbon
molecules into simpler and lighter molecules of higher value. Cracking is done by
application of heat and pressure called as thermal cracking or pyrolysis and use of heat
and catalytic agent called as catalytic cracking.
At Guwahati Refinery, thermal cracking is carried out in Delayed Coking Unit
(DCU) wherein reduced crude oil (RCO) from CDU bottom is converted (using the

21
 coking, or thermal-cracking process) to high-value light products, producing petroleum
coke in the process. The large residuum molecules are cracked into smaller molecules
when the residuum is held in a coke drum at a high temperature for a period of time. Only
solid coke remains and has to be drilled from the coke drums.
At Guwahati Refinery, catalytic cracking is carried out in INDMAX unit, which
is a form of fluidized catalytic cracking wherein reduced crude oil (RCO) from CDU
bottom & Coker Fuel oil (CFO) from DCU bottom is converted into value added products
like LPG, Gasoline, LDO /HSD in presence of high temperature and catalyst.
3. TREATING (Removing sulfur)

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

EXECUTIVE
DIRECTOR
(G Bhanumurthy)

DGM (HR) GM (TECH)

Technical services

Material

Fire & safety

Project
Engineering services
Instrument
Maintenance
Corporate communication.
Medical

Information service.

Power & utility

Production
FINANCE
Power & utility Services

Inspection.
HR
Internal audit

Vigilance

/ Training.Management

22
 SWOT” Analysis of Indian Oil Corporation Limited”

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

 Wide range of product & services.

 Large variance of product & services.
 Indian Oil Corporation Limited has the highest no. of retail outlet in India.
 World class R&D centre.
 Indian Oil Corporation Limited has 10 refineries in India.
 Largest pipeline network in India.
 Indian Oil’s ISO-9002 certified Aviation Service commands a 64% market share in
aviation fuel business, meeting the fuel needs of domestic and international flag
carriers, private airlines and the Indian Defence Services. Indian Oil also enjoys a
dominant share of the bulk consumer business, encoding that of railways, state
transport undertakings, industrial, agricultural and marine sectors.
 IBPs (merged with IOCLs marketing division) solo marketing initiatives.

 Development of new energy efficient product, formulation including lubricants and

bituminous product and up gradation of refinery processes to maximum product yield.
 Proper quality implementation of quality concepts like six sigma etc.
 Listed in Fortune 500 Company- 135 position holder as on 2007

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

23
OPPORTUNITIES
 As IOCL has entered into new market like Sri Lanka and Mauritius. It can continue to
spread out its offshore marketing venture to tap new markets and explore business
opportunities.
 Capacity expansion for popularizing different brands as penetration level in India is
highly prospective.

 As they entered in new foreign market, they are able to gain more foreign currency
which is continuously uplifting Indian economy.
 IOCL is venturing into new business avenues like petrochemicals and power
generation. And the demand for petrochemicals and power generation is increased
day by day so it is a great opportunity for IOCL to earn revenue.
 In India economic growth rate is 10%, purchasing power of people is increased in
India, so it’s an opportunity for Indian oil Corporation Limited to sell their product.
 As IOC entered into upstream business and in the time of rising prices of crude oil it’s
not affect the profit margin of IOCL

THREATS
 Large number of substitutes in the petroleum sector like coal, solar energy, natural
gas, bio-fuel etc. is coming as sharp substitute to the petroleum products.
 Limited stock of crude oil.
 The foreign players with more advanced technology are the biggest threat for the
company.
 Highly oligopolistic market with a few number of players, i.e. no single company can
mobilize its resources to reap fullest advantage. It can be a question of mere survival
for many of them in the coming years.
 Buyers of the petroleum products are getting inclined to the new substitutes coming
up.
 With the entry of private players in domestic country and the product of outside
country bring stiff competition to the IOCL on the refining and marketing margins.
 Removal of Excise Duty Exemption by Government of India would result in
substantial amount of loss
 If the Government Policies allow the private players to set their own prices, the
private player can seriously harm the market share of IOCL

24
 RESEARCH METHODOLOGY
Research simply means a search for facts-answers to questions and solutions to problems. It
is a purposive investigation. Research is defined as a scientific and systematic search for
pertinent information on a specific topic. In other words, it is a careful investigation or
inquiry especially through search for new facts in any branch of knowledge. Research
methodology refers to the methods used in performing research operations.
For the purpose of carrying out this study the sources of data are as under:
 Primary sources: refers to datas which are collected for the first time and which
happen to be original in character. The various methods of collecting primary
data are:

1. Data collection through interviews: It is a two way systematic conversion

between an investigator and an informant, initiated for obtaining information
relevant to specific study.

2. Data collection through Questionnaires: A questionnaire consists of a number

of questions printed or typed in a definite order on a form or set of forms.
Questions were framed with the required information in mind. Both Open-ended
questions and close-ended questions were framed. Open-ended questions being
the explanatory type where respondents were asked to give their point of views
and feedbacks, and close-ended questions consisting of dichotomous i.e. yes/no
and multiple choice questions where respondents were given three or more
choices.

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

 Reference books
 Reports, journals of the concerned organization
 Public records and statistics
 Training Calender prepared by the Training Department
 Research Methodology Naresh K Malhotra
 Personnel Mgmt..CB Mamoria
 www.iocl.com
 www.google.com

25
 Research population: For the purpose of this project, the entire staff of IOCL, Guwahati
is taken as the population.
Sampling Size: The sampling size has been taken as 50 consisting of both employees of
the non-executive rank as well as executive rank. No differentiation has been made with
respect to their sexes and religions to ensure maximum representation and objectivity in data
collection.
Sampling Design: A sample design is a definite plan for obtaining a sample from a given
population. It refers to the technique or the procedure the researcher would adopt in selecting
items for the sample. For the purpose of this project, a probability sampling design is used, i.e
random sampling. Under random sampling design, items are randomly selected and thus
every item of the universe has an equal chance of inclusion in the sample.

 Analysis

The data after collection has to be processed and analyzed in accordance with the outline
laid down for the purpose at the time of research plan. The term analysis refers to the
computation of certain measures along with searching for patterns of relationship that exists
among data-groups.
The data collected for the project were analyzed using standard statistical methods and
techniques. Use of charts, graphs and diagrams in addition to tables is done to represent
categories of answers to questions. SPSS v16.o was used for the analysis of data.
 Primary Data Collection Method: Questionnaire, interviews.

DATA ANALYSIS AND FINDINGS:

26
 We( a team of 3 members) were tasked with the job of
1. Interviewing all the HoDs( head of the departments) personally.
2. Interviewing a sample size of about 50 employees through questionnaires.

INTERVIEW of HODs
The industry guide gave us a Training Calendar and we were required to visit each HoD
and present them with the skeletal model of the Training calendar and ask them 3 questions
only. We were required to write down the answers in a sheet of paper. The questions were
1. “Other than the existing Training topics in the calendar, would you like to include any
more training topic/topics for your subordinates?”
2. “As per the guidelines provided by the Human Resource Department on Training
Needs Identification, have you forwarded the instructions for the filling up of online E-
TNI form for executives and non executives provided under E-SUVIDHA?”
3. The HoDs had to recommend a training co-ordinator from their individual
departments, who would be provided with all the necessary facilities for carrying out
the Training program for that department.

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

Name list of respondents for compilation of training calendar 2010-11 .

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

Name list for respondents who could not be interviewed

1. N.P. Barua, [CPJM]: reason: on leave

27
 2. Arup Das, [CMNM]: reason: on sick leave
3. S.K. Sinha,[SPUM]:reason: official tour
4. A.K. Sarma[ACMO]:reason : official tour
5. S.N. Mathur, [CTSM I]: reason: official tour

PRIMARY DATA::
Name Designatio Dept Requirements Co-
n ordinator
K.B. CHRM Human 1.Stress relief T.C. Medhi
Anand Resource 2.housekeeping
mantainance
3.upkeep of
administrative
pantry
K. CITM Instrumentat 1.Instruments S.Saharia[S
Banerjee ion and process control ITE]
systems
2.Emergency
shutdown systems
in process units.

B.K. Das CPNM Production 1.Nitrogen and P.S.

instruments air unit Sonowal[SPNM
operations. ]
2. AAU/ARU
operation
3.MSQuality
improvement
operation.
4.OM&S op
5.ETP op
6.CDU op
7. ISOSIV op
8.INDMAX op
9.SRU op
10.HGU op
11. HDT op

V.S. CIPM Inspection 1.Radiography V.S. Desai

Desai level2
2.UT level2
3. MPI level2
4. Welding
Inspection course
5.Nace

28
 Corrosion Course
6. Painting
Inspection
7.API
653,570,510
8.Refractory and
insulation
9.Pressure
Vessel Design
fabrication
10.Material
selection and failure
analysis.
S. SFM Finance Wants 4 R.A.
Gurumurthy programmes on Pandit[DFM]
gross refinery
margin & 2
programmes on
delegation of power.
L.S. CTSM Technical 1.HAZOPS 1.K Sen
Khargkonkar Services 2.Process 2.M Surana
software simulation 3.S Sarkar
4.L
Prassana V
S.K. Mitra CESM Engineering 1.protection & Sita Baruah
services control systems in [ESM EL]
electrical equipment
2.DM plant
operation
3.Operation and
mantainance of
pumps
4.Vibration
monitoring and
analysis
P.N. CMIS MI 1.programming . P.N. Sarma
Sarma net [CMIS]
2.e-security
3.Oracle DBA
4.Routing/networ
king
A.Thoum SMNMCL Mantainanc 1.working in A.Thoumou
oung e confined areas ng
2.refractory and [SMNMCL]
insulation
N.K. DGM Materials Materials Satish
Sarma materials management:an Kumar
integrated approach [MTO (P)]
A.K. SFSM Fire and 1.gas test A K Mathur
Mathur safety procedure [SFSM]
2.handling of
gas testing
equipments
3.work permit

29
 system
4.chemical
safety
5.accident
reporting
6.investigation
analysis
Chandrim Corporate Corporate Leadership and Chandrima
a Sarma Communication Communication team building Sarma
s Officer s
S.K. SPUM Power and 1.Variable Raymond C
Singha utility frequency drives Diengdoh
(theory, operation,
mantainance)
2.Cable jointing
techniques
3.generator
protection
4.cable fault
identification

THE INTERVIEW OF EMPLOYEES THROUGH QUESTIONNAIRES:

To know about the effectiveness of the TNI system prevalent in Guwahati Refinery of
the Indian Oil Corporation Limited and its effectiveness, I designed the questionnaire as
such to meet my needs and objective.(a sample has been attached to the report)
Care was taken to introduce Likert scale, Continuous ratings scale, dichotomous
questions. Care was taken to avoid redundant and complicated questions. But
crosschecking questions have been used throughout the questionnaire to see the genuinity
of the responses. The questionnaire has been administered to each respondent thoroughly.
(There are no missing or incomplete responses)

Findings
 Analysis of sample size using variables ‘Gender’ and Cadre’
30
 Gender of respondent * whether respondent is in executive cadre or non
executive carde Crosstabulation

Count

whether respondent is in
executive cadre or non executive
carde

non
executives executives Total

Gender of male 24 10 34
respondent
fema
13 3 16
le

Total 37 13 50
IOCL, GUWAHATI REFINERY : ORGANIZATIONAL STRUCTURE

Both
the cross
tabulation
and the
pie
diagrams
represent
the

composition of the refinery. This will help the users of this report to understand the further
analysis.

 ‘Cadre’ and ‘Does training improve performance’

31
 All respondents both executives and non executives feel that training is necessary and
actually leads to enhanced performance. Thus we see that among the employees of Guwahati
Refinery, there is a positive attitude towards training.

 TRAINING SKILLS

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

32
 We see that almost 20% of the top level executives are not satisfied with the fact that
training provides all the necessary skills. This means that the executives and HoDs have
noticed a level of inefficiency among their subordinates.

33
 This shows how the employees think of the present TNI in terms of modernity and
reliability.
Let us do a further analysis of reliability of the TNI system based on Cadre.

34
 The executives here again feel that the TNI system is not reliable in terms of providing
reliable training to the staff.

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

efficiency among the non executives. A lot of top level officials of the corporation are not
happy with the system. Satisfaction and comfort levels are also at a loss.
The TNI system of Indian Oil Corporation Ltd in its Guwahati Refinery is obsolete and
inefficient to meet the changing and challenging needs of the oil industry.

35
 CONCLUSION AND RECOMMENDATION
The TNI system of Indian Oil Corporation Ltd in its Guwahati Refinery is obsolete and
inefficient to meet the changing and challenging needs of the oil industry.
A committee must be constituted at the earliest , the task of which would be to look into
the loopholes of the present TNI system and develop a better and efficient means of operation
in this unit.
Instead of hiring an outside agency for TRAINING NEEDS IDENTIFICATION, it
should use this committee to develop the best alternatives available. Also care must be taken
to see that this committee should have adequate representation from EXECUTIVES, NON-
EXECUTIVES, WORKERS, so that the important issues can be identified, assessed and
corrected.

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

36
Annexure:
QUESTIONNAIRE
Dear Sir/Madam
As part of my Summer Internship Project, I have prepared a list of questions relating to Training
Need Identification. This questionnaire will be kept confidential and will be used for educational
purposes only. Your response together with our own assessment will contribute to the improvement
of the Training Need Identification system in IOCL. I will be grateful if you could kindly fill up
accordingly.
Thank you
Amitjyoti Das
The questionnaire is as follows:
1.Name of the respondent:………………………………………………………
b) Department:……………………………………………………………………….
c) Designation:…………………………………………………………………………
d) Gender: Male Female
e) Marital status: Married Unmarried
2. Whether training is needed?
 Yes
 No
 Not sure
 To some extent
3. Whether training will actually improve the employee performance on the job?
 Yes
 No
 Not sure
 To some extent
4. Are you satisfied with the present Training need Identification system?
 Yes
 No
5. Does the training provided to, you fill up your needs on the job?
 Yes
 No
6. Is training provided to you according to work profile?
 Yes
 No
 Not sure
 To some extent
7. Training provided to you in the past helped to improve your productivity.
 Strongly disagree
 Disagree
 Neither agree nor disagree
 Agree

37
  Strongly agree
8. Do you think the present Training Need Identification rules need any modification?
 Yes(if yes, then state the reason)………………………………………
 No
9. How comfortable do you feel with benefits of training in your department?
 High
 Moderate
 Low
10. How satisfied are you with this situation?
 Highly satisfied
 Satisfied
 Neither satisfied nor dissatisfied
 Dissatisfied
 Highly dissatisfied
11. A detailed TNI procedure leads to improved performance ?
 Yes
 No
 Not sure
 To some extent
12. Rank the following training criteria based on its importance. (Highest=5, Lowest=1)
 Educational qualification
 Work experience
 Performance in test and interview
 Background of the candidate
 Physical fitness.
13. The present TNI system is
 Highly effective
 Effective
 Neutral
 Non effective
 Highly non effective
14. Is TNI system necessary?.................................

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

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

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

38
39