A

PROJECT REPORT
COMPENSATION MANAGEMENT: AN ANALYSIS IN RESPECT

OF SALARY WITH 9TH PAY REVISION IN IOCL

Submitted by

DINESH KUMAR
Roll No.-1208020221
In partial fulfillment of requirement For the award of the
degree Of MBA In Human Resource Management

Submitted to
Authorized Learning Centre

CAREER POINT, MATHURA

CODE 00979

ACKNOWLEDGEMENT
It is with gratitude I acknowledge my heartiest & sincere feeling of
indebtedness to Mr. Shivkant Tiwari my project guide for valuable guidance &
whole hearted support in carrying out completion of my project

COMPENSATION MANAGEMENT: AN ANALYSIS IN RESPECT

OF SALARY WITH 9TH PAY REVISION IN IOCL

Through out my report, I have tried my level best to be original & present my
own findings.
I would also like to owe special thanks to all my friends for the efforts they
have put in for making this project a reality & giving its present shape. Whole
experience was an eye opener for me.
I accept the sole responsibility for any possible error of omission &
commission.
I express my deep sense of respect to all Institute staff of CAREER POINT, I
am also thankful to my parents for their support during my research period.

DINESH KUMAR
RollNo.-1208020221

STUDENT DECLARATION

I hereby declare that the project report entitled

COMPENSATION MANAGEMENT: AN ANALYSIS IN RESPECT

OF SALARY WITH 9TH PAY REVISION IN IOCL

Submitted in partial fulfillment of the requirement
for the degree of MASTERS OF BUSINESS
ADMINISTRATION
(HRM)
to
Sikkim
Manipal
University, Gangtok is my original work & not
submitted for the award of any other degree,
diploma, fellowship, or any other similar title or
prizes.

DINESH KUMAR
1208020221

Examiners Certification

The project report of

DINESH KUMAR

COMPENSATION MANAGEMENT: AN ANALYSIS IN RESPECT

OF SALARY WITH 9TH PAY REVISION IN IOCL

Is approved and is acceptable in

quality and form.

Internal Examiners
Examiner

External

Name

Name

Qualification

Qualification

University Study Center Certificate

This to certify that the project report entitled

COMPENSATION MANAGEMENT: AN ANALYSIS IN RESPECT

OF SALARY WITH 9TH PAY REVISION IN IOCL

Submitted in partial fulfillment of the requirement for the
degree of MASTERS OF BUSINESS ADMINISTRATION to Sikkim
Manipal University, Gangtok India, this report has been
submitted for the award of any other degree, diploma,
fellowship, or any other similar title or prizes and that the work
has not been published in any journal or magazine.

DINESH KUMAR
1208020221

TABLE OF CONTENTS

1) COMPENSATION MANAGEMENT
2) EXECUTIVE SUMMARY
3) REVIEW LITRETURE AND PROBLEM STATEMENT
4) INTRODUCTION TO THE COMPANY
5) HISTORY OF THE COMPANY
6) OBJECTIVE OF THE PROPOSED STUDY
7) RESEARCH METHODOLGY
8) SCOPE/RELEVANCE OF PROPOSED STUDY
9) GLOBAL SCENERIO
10) INDIAN OIL CORPORATION LTD IN NORTH EAST
REGION, GUWAHATI REFINERY
11) DATA INTERPRETATION AND ANALYSIS
12) FINDINGS OF THE SURVEY
a) CONCLUSION
b) RECOMMENDATION & SUGGESTION
13) REFERENCE
14) APPENDIX
QUESTIONNAIRE

WHAT IS COMPENSATION MANAGEMENT?

Compensation is payment in the form of hourly wages or annual salary combined
with benefits such as insurance, vacation, stock options, etc. that can positively or
negatively affect an employee's work performance.
An ideal compensation management system will help you significantly boost the
performance of your employees and create a more engaged workforce thats willing to
go the extra mile for your organization. Such a system should be well-defined and
uniform and should apply to all levels of the organization as a general system.. Plus
youll enjoy clearer visibility into individual employee performance when it comes
time to make critical compensation planning decisions.
With effective compensation management youll also enjoy clearer visibility into
individual employee performance when it comes time to make critical compensation
planning decisions. These performance appraisals assist in determining compensation
and benefits, but they are also instrumental in identifying ways to help individuals
improve their current positions and prepare for future opportunities.
Definition
Compensation is a systematic approach to providing monetary value to employees in
exchange for work performed. Compensation may achieve several purposes assisting
in recruitment, job performance, and job satisfaction.

What is COMPENSATION MANAGEMENT ??????

Human Resource is the most vital resource for any organization. It is
responsible for each and every decision taken, each and every work done
and each and every result. Employees should be managed properly and
motivated by providing best remuneration and compensation as per the
industry standards. The lucrative compensation will also serve the need
for attracting and retaining the best employees. Compensation is the
remuneration received by an employee in return for his/her contribution to
the organization. It is an organized practice that involves balancing the
work-employee relation by providing

monetary and non-monetary

benefits to employees.
Compensation is an integral part of human resource management which
helps in motivating the employees and improving organizational
effectiveness.
Components of Compensation System
Compensation systems are designed keeping in minds the strategic goals
and business objectives. Compensation system is designed on the basis of
certain factors after analyzing the job work and responsibilities.
Components of a compensation system are as follows:

Types of Compensation
Compensation provided to employees can direct in the form of monetary
benefits and/or indirect in the form of non-monetary benefits known as
perks, time off, etc. Compensation does not include only salary but it is the
sum total of all rewards and allowances provided to the employees in
return for their services. If the compensation offered is effectively
managed, it contributes to high organizational productivity.

Direct Compensation
Indirect Compensation
Need of Compensation Management

A good compensation package is important to motivate the

employees to increase the organizational productivity.

Unless compensation is provided no one will come and work for the
organization. Thus, compensation helps in running an organization
effectively and accomplishing its goals.

Salary is just a part of the compensation system, the employees

have other psychological and self-actualization needs to fulfill. Thus,
compensation serves the purpose.

The most competitive compensation will help the organization to

attract and sustain the best talent. The compensation package
should be as per industry standards.

10

Strategic Compensation

Strategic compensation is determining and providing the compensation packages to

the employees that are aligned with the business goals and objectives. In todays
competitive scenario organizations have to take special measures regarding
compensation of the employees so that the organizations retain the valuable
employees. The compensation systems have changed from traditional ones to strategic
compensation systems.

What is COMPENSATION MANAGEMENT?????

Compensation is payment in the form of hourly wages or annual salary combined
with benefits such as insurance, vacation, stock options, etc. that can positively or
negatively affect an employee's work performance.
An ideal compensation management system will help you significantly boost the
performance of your employees and create a more engaged workforce thats willing to
11

go the extra mile for your organization. Such a system should be well-defined and
uniform and should apply to all levels of the organization as a general system.. Plus
youll enjoy clearer visibility into individual employee performance when it comes
time to make critical compensation planning decisions.
With effective compensation management youll also enjoy clearer visibility into
individual employee performance when it comes time to make critical compensation
planning decisions. These performance appraisals assist in determining compensation
and benefits, but they are also instrumental in identifying ways to help individuals
improve their current positions and prepare for future opportunities.
Definition
Compensation is a systematic approach to providing monetary value to employees in
exchange for work performed. Compensation may achieve several purposes assisting
in recruitment, job performance, and job satisfaction.

Types of Compensation Management

Direct Compensation:
Direct compensation refers to monetary benefits offered and provided to
employees in return of the services they provide to the organization. The monetary
benefits include basic salary, house rent allowance, conveyance, leave travel
allowance, medical reimbursements, special allowances, bonus, Pf/Gratuity, etc.
They are given at a regular interval at a definite time.
Basic Salary
Salary is the amount received by the employee in lieu of the work done by him/her
for a certain period say a day, a week, a month, etc. It is the money an employee
12

receives from his/her employer by rendering his/her services.

House Rent Allowance

Organizations either provide accommodations to its employees who are from
different state or country or they provide house rent allowances to its employees.
This is done to provide them social security and motivate them to work.
Conveyance
Organizations provide for cab facilities to their employees. Few organizations also
provide vehicles and petrol allowances to their employees to motivate them.

13

Leave Travel Allowance

These allowances are provided to retain the best talent in the organization. The
employees are given allowances to visit any place they wish with their families.
The allowances are scaled as per the position of employee in the organization.
Medical Reimbursement
Organizations also look after the health conditions of their employees. The
employees are provided with medi-claims for them and their family members.
These medi-claims include health-insurances and treatment bills reimbursements.
Bonus
Bonus is paid to the employees during festive seasons to motivate them and
provide them the social security. The bonus amount usually amounts to one
months salary of the employee.
Special Allowance
Special allowance such as overtime, mobile allowances, meals, commissions,
travel expenses, reduced interest loans; insurance, club memberships, etc are
provided to employees to provide them social security and motivate them which
improve the organizational productivity.

INDIRECT COMPENSATION

ndirect compensation refers to non-monetary benefits offered and provided to

employees in lieu of the services provided by them to the organization. They include
Leave Policy, Overtime Policy, Car policy, Hospitalization, Insurance, Leave travel
Assistance Limits, Retirement Benefits, Holiday Homes.
14

Leave Policy
It is the right of employee to get adequate number of leave while working with the
organization. The organizations provide for paid leaves such as, casual leaves,
medical leaves (sick leave), and maternity leaves, statutory pay, etc.

Overtime Policy
Employees should be provided with the adequate allowances and facilities during
their overtime, if they happened to do so, such as transport facilities, overtime pay,
etc.
Hospitalization
The employees should be provided allowances to get their regular check-ups, say at
an interval of one year. Even their dependents should be eligible for the medi-claims
that provide them emotional and social security.

15

Insurance
Organizations also provide for accidental insurance and life insurance for employees.
This gives them the emotional security and they feel themselves valued in the
organization.
Leave Travel
The employees are provided with leaves and travel allowances to go for holiday with
their families. Some organizations arrange for a tour for the employees of the
organization. This is usually done to make the employees stress free.
Retirement Benefits
Organizations provide for pension plans and other benefits for their employees which
benefits them after they retire from the organization at the prescribed age.
Holiday Homes
Organizations provide for holiday homes and guest house for their employees at
different locations. These holiday homes are usually located in hill station and other
16

most wanted holiday spots. The organizations make sure that the employees do not
face any kind of difficulties during their stay in the guest house.
Flexible Timings
Organizations provide for flexible timings to the employees who cannot come to work
during normal shifts due to their personal problems and valid reasons.

IMPORTANCE OF COMPENSATION

Compensation and Reward system plays vital role in a business organization.

Since, among four Ms, i.e. Men, Material, Machine and Money, Men has been
17

most important factor, it is impossible to imagine a business process without Men.

Every factor contributes to the process of production/business. It expects return
from the business process such as rent is the return expected by the landlord,
capitalist expects interest and organizer i.e. entrepreneur expects profits. Similarly
the labour expects wages from the process.
Labour plays vital role in bringing about the process of production/business in
motion. The other factors being human, has expectations, emotions, ambitions and
egos.

Labour therefore expects to have fair share in the business/production process.

Therefore a fair compensation system is a must for every business organization.
The fair compensation system will help in the following:
o

An ideal compensation system will have positive impact on the efficiency

and results produced by employees. It will encourage the employees to
perform better and achieve the standards fixed.

It will enhance the process of job evaluation. It will also help in setting up
an ideal job evaluation and the set standards would be more realistic and
achievable.

Such a system should be well defined and uniform. It will be apply to all
the levels of the organization as a general system.

The system should be simple and flexible so that every employee would be
able to compute his own compensation receivable.
18

It should be easy to implement, should not result in exploitation of

workers.

It will raise the morale, efficiency and cooperation among the workers. It,
being just and fair would provide satisfaction to the workers.

Such system would help management in complying with the various labor
acts.

Such system should also solve disputes between the employee union and
management.

The system should follow the management principle of equal pay.

It should motivate and encouragement those who perform better and

should provide opportunities for those who wish to excel.

Sound Compensation/Reward System brings peace in the relationship of

employer and employees.

It aims at creating a healthy competition among them and encourages

41employees to work hard and efficiently.

The system provides growth and advancement opportunities to the

19

deserving employees.

The perfect compensation system provides platform for happy and satisfied
workforce. This minimizes the labour turnover. The organization enjoys
the stability.

The organization is able to retain the best talent by providing them

adequate compensation thereby stopping them from switching over to
another job.

The business organization can think of expansion and growth if it has the
support of skillful, talented and happy workforce.

The sound compensation system is hallmark of organizations success and

prosperity. The success and stability of organization is measured with paypackage it provides to its employees.

COMPENSATION MANAGEMENT: SUCCESS FACTORS

Many of today's senior executives name pay-for-performance as the most
critical tool in achieving the greatest financial results at their companies.
But, implementing real, pay-for-performance is easier said than done.
Success Factors makes it easy for you to quickly and easily implement a
powerful pay-for-performance strategy. By rewarding great execution,
you will better retain your top talent and drive organizational
performance that exceeds all expectations. Plus, you'll enjoy clearer
20

visibility into individual employee performance when it comes time to

make critical compensation planning decisions.

True

pay-for-performance

culture

improves

retention. Employees who outperform their peers

will be rewarded appropriately, feel valued and happy
and more likely to stay with your company.

Ongoing compliance. Design your compensation

strategy with objective data and communicate it to
managers to stay within allocated budgets and to
employees

to

show

the

clear

link

between

compensation and performance expectations.

Budget optimization. Run "what-if" scenarios and

instantly see how increasing merit pay to your best
employees would impact your budget.

Cost savings. Eliminate thousands of dollars from

your expense column each year by making sure
you're not overpaying low performers. Also, the easyto-use automated system will save compensation
managers time and money.

Zero error system. Manage your compensation in a

secure

environment

with

streamlined

workflows

where your data is determined via calculation and

eligibility engineseliminating privacy breaches and
human calculation errors.

Human Resources Management - Benefits &

Compensation
21

In a sluggish economy, compensation system gets a new focus by rewarding star

performers more than the rest of the pack

3-P Compensation: Pay for

Performance In this article we look at how an organization develops a

motivating and rewarding incentive plan.

An executive perspective on

employee benefits Executives say employee benefits help companies compete

but have an incomplete understanding of benefits and how they perform. Results of a
McKinsey Survey. pdf-file. 2006. Article starts at page 12

An Overview of

Recent Trends in Incentive Pay Programs This article examines

recent trends and developments in an increasingly popular HR practice--incentive pay
programs. Pdf-file Analyzing Compensation Data Guide describes three
approaches that Federal contractors may use to analyze their compensation systems;
analyses may be useful in determining if there are patterns of discrimination in the
workforce; focus is on analyses of salaries or wages, procedures can be used to
analyze other forms of compensation as well.

TOP Are Higher Pay

Increases Necessarily Better? This study investigated the relationship

between pay increase percentages and pay satisfaction among 118 MBA students and
found that pay satisfaction had the largest increase between three percent and seven
percent and appeared to level off between seven percent and eleven percent,
suggesting that there may be a point at which high pay increases may not necessarily
lead to more satisfaction. In addition, it was found that pay increases between six and
eight percent are the minimum amounts needed for pay increase satisfaction. Finally,
we suggest that employees may not need as high of a pay increase to experience
satisfaction with their pay increase when providing those employees with a signal,
such as an average pay increase. pdf Building a Better 401(k) 401(k) plan
sponsors are taking steps to make their plans more attractive to employees in 2003.
January 2003

Compensation Planning: The Key to Profitability

This book can help brokers create effective individual company compensation plans
by giving them a better understanding of how changes to existing compensation
schedules affect the company finances as a whole. Pdf-file 3.6 MB
Compensation Plans An overview, article provided by Salary Source
Explaining

Executive

Compensation Managerial Power vs. the

Perceived Cost of Stock Options. Working Paper. Pdf-file Glossary Of Employee

Benefit Terms

Is

Your

Long-Term
22

Incentive

Plan

Really

Performance-Based? Long-term incentive plans (LTIPs) typically provide the

largest component of senior executives compensation, most often through one or
more of three equity-based types: stock options, restricted stock, and what are often
called performance shares.

This article focuses on performance shares, an increasingly common form of

performance-based LTIPs, and their importance as a major component of executive
pay. We believe that performance shares establish the strongest link in tying
compensation to performance. The article also presents data on the increasing
prevalence of these types of plans. pdf
Labor Statistics Extensive compilation of statistics and data Misc. Issues
Overview on some compensation- and benefits-related issues: pay equity, variable pay
systems, stock plans, retirement plans, health and welfare plans, paid time off,
government mandated benefits Offer a Choice of Compensation Plans
to Gain a Competitive Advantage pdf-file 2003

Organizational

Pay Mix The Implications of Various Theoretical Perspectives for the

Conceptualization and Measurement of Individual Pay Components. Pdf-file
Organization-wide Broad-based Incentives: Rational Theory
and Evidence Despite the widespread use ofincentive pay, there is limited
evidence about what factors influence its organization-wide, broad-based application.
Pdf-file

Paying for Performance: An Overlooked Opportunity

Sales force deployment and compensation are among the most powerful means a
company has to improve growth, market share, and profitability. Yet few companies
take the time to align their payout systems with current strategy. The author explains
how to design a successful compensation plan that is precise, fair, and simple. pdf-file
Performance based Pay The Value of Performance-Based Pay in the War
for Talent, pdf-download version Performance Standards in Incentive
Contracts Research in incentives has focused on performance measures and payperformance sensitivities but has largely ignored the performance standard, which
generates important incentives whenever plan participants can influence the standardsetting

process. Working

paper. pdf-file
23

Promise

and

Peril

in

Implementing Pay for Performance: A Report on Thirteen

Natural Experiments Despite the popularity of pay for performance programs,
very little research has examined the dynamics and dilemmas associated with
implementing these programs. We studied the implementation of thirteen experiments
in pay for performance that were initiated by local management in a high-commitment
company (Hewlett Packard). We examined Hewlett Packard documents and
interviewed managers to understand their experience with implementing these
programs. Managers reported a relatively unfavorable cost-benefit assessment of
programs and difficulty in designing and maintaining them, especially in a fast
changing business environment. Managers at each site eventually concluded that they
could attain greater performance benefits through alternative managerial tools like
effective leadership, clear objectives, coaching or training, and therefore discontinued
their pay for performance programs. Finally, we discuss implications for management
and for future research.

24

COMPENSATION MANAGEMENT : SALARY NEGOTIATION

Compensation management chapter contain wage and salary aspect. The word salary
applies to compensation that is uniform from one period to the next and does not
depend upon the number of hours worked.
Compensation Management Objectives:
Wage, Compensation and their administration
Job Satisfaction
Labour and Wage Theories
Classification of Wages
Machinery for fixing wages
Job Evaluation
Objectives of job evaluation and methods of evaluation
Promotions and transfers
Wage and Salary Administration:
The term compensation management is the alternative of wage and salary
administration. Wage word is commonly used for those employees whose pay is
calculated according to the number of hours worked. The concept of wage came from
capitalist before it in the Jamindari system the concept of wage was in the slaves
form. Salary applies to compensation that is uniform from one period to the next and
does not depend upon the number of hours worked. When we got for job definition
we found that job is defined as a collection or aggregation of tasks, duties, and
25

responsibilities that, as a whole, is regarded as the reasonable assignment to an

individual employee. Job is known as impersonal however position is known as
personal. Job always contains a position which defines some set of works.

Job Satisfaction
Job satisfaction depends on the situations and environment of work atmosphere.
According to the MBA Job satisfaction is determined by a set of personal and job
factors, personal factors relate to workers age, length of service, intelligence, skill,
and other personality or temperamental factors.

About the Job Evaluation British Institute of Management has defined job evaluation
as the process of analysis and assessment of jobs to ascertain reliably their relative
worth, using the assessment as a basis for a balanced wage structure.
Job analysis is the process of getting information about jobs; specifically, what the
worker does; how he gets it done; why he does it; skill, education and training
required; relationships to other jobs; physical demands and environmental
conditions.

On the job evolution methods we can include some aspects:

Ranking methods
Grade Description Method
Point Method
Factor-Comparison Method
Time-Span Method
Guide-Chart Profile Method

26

Pigors & Meyers give a unique definition of promotion which is, the advancement of
an employee to a better job better in terms of greater respect of pay and salary.
Better houses of work or better location or better working conditions-also may
characterize the better location or better working conditions-also may characterize the
better job to which an employee seeks promotions, but if the job does not involve
greater skill or responsibilities and higher pay, it should not be considered a
promotions.
On the Subject of Transfer Pigors and Mayers also writes, the movement of an
employee from one job to another on the same occupational level and at about the
same level of wages or salary.
In the end of the chapter we can say that Compensation Management deals not only
salary and wages but also job analysis and job satisfaction.

27

EXECUTIVE SUMMARY

In the scenario of competitive business environment, it has become

important for a management student to equip himself/herself with the
practical exposure of the corporate world. It was great privilege for me to
understand the practical HR aspects learnt in our college classroom at
Indian Oil Corporation, Guwahati.
In regards to this project

I was asked to analyse the compensation

package in an Oil Industry in respect to 9 th pay revision. It was analyzed

that the employees were fully satisfied in respect to their increment in
their salary package.

An online interview and telephonic interview was being conducted and

questionnaire was being distributed accordingly.

The feedback of the respondents was being up to mark and a positive

response was being carried out.

28

Review of literature and Problem Statement

If anyone of you used compensation management in SAP HR version 4.7 extension
one or earlier, you will know in the old version, the compensation statement is called
Total Compensation Statement. In the new Enterprise Compensation Management,
it is now called Compensation Review Statement.
To configure the SAP Enterprise Compensation Review Statement, you would need to
access it in the configuration IMG @ SPRO -> Personnel Management -> Enterprise
Compensation Management -> Compensation Statement.
You first have to define what to include in the Compensation Review Statement for
calculation. You will do this at the Determine Structure for Total Compensation
Statement. The next piece is to determine what wage types contain the values you
tell it to include in the Select Wage Type for Pay Category.
At the Create Form For Total Compensation Statement, you will be working with
Smartform to design the layout of the form used when printing the statement.
Enterprise Compensation Statement uses the form HR_ECM_CRS, no to be
confused with HR_CMP_TCS used by the old Compensation Management.
After you completed the first 3 steps outlined above, the 4th step is where the
confusion begins. In the old Compensation Management, you could determine what
form to used by the Total Compensation Statement report through an entry in
T77S0. If you are access it via the IMG, it is called Determine Standard Form For
Total Compensation Statement. The problem is, this exact structure is available in
both the Enterprise Compensation Management and the old Compensation
Management. It is pointing to the exact same entry.
In the Compensation Review Statement (Program: RHECM_PRINT_CRS,
Transaction: PECM_PRINT_CRS), used by Enterprise Compensation Management,
SAP hardcode in what form to use, which is HR_ECM_CRS in their code. So you
CAN NOT select what form to use if you happen to design your own form.
Due to this, you are stuck between a rock and a hard place. If you are implementing
29

SAP, you will hear numerous times not to change standard SAP code and always
make a Z copy of what you want to change and use the Z version. In this case,
you would have to modify one of the two standard codes. You have to either modify
the include statement in the RHECM_PRINT_CRS code to remove NO-DISPLAY
in the selection parameter to allow the selection screen to show what form it is
defaulting and have the user select the right form. Another option is to change the
default form from HR_ECM_CRS to whatever Z form you created.
The second method is to not change the standard program code, but go ahead and
modify the HR_ECM_CRS form. Make a copy of it to Z to be used as backup, but
use the main HR_ECM_CRS as being the main form youve modified.

30

INTRODUCTION TO THE COMPANY :

INDIAN OIL CORPORATION LIMITED
=============================================
============
Incorporated in 1959, Indian Oil Corporation Limited is a
wholly Government-owned company registered under the
Companies Act, 1956. It came into existence on 1 st September,
1964 as a result of amalgamation of the erstwhile Indian
Refineries Ltd, and Indian Oil Company and has its registered
office at Mumbai.
The Corporation is managed by Board of Directors appointed
by the President of India. Besides the Chairman, the board
has the following whole time Directors:
1.

Director (Refineries)

2.

Director ( Pipelines)

3.

Director (Marketing)

4.

Director (Finance)

5.

Director (HR)

6.

Director (R & D)

7.

Director (P&BD)

The working of Corporation's five Divisions, namely

(i)Refineries Division,
(ii) Marketing Division
(iii) Pipelines Division
(iv) R&D Centre and
31

(v) Assam Oil Division are co-coordinated

by a full-time

Chairman.
These four Divisions are headed by
Director (Refineries),
Director (Marketing),
Director (Pipelines) and
Director (R&D) respectively.
Director (Refineries) is also the Director In charge of Assam Oil
Division.
REFINERIES DIVISION
With the Head Office at New Delhi, the Refineries Division
is the successor to the erstwhile Indian Refineries Limited
which was incorporated on 22.8.1958 as Private Limited
Company and subsequently amalgamated with the Indian
Oil

Company Ltd. on 1.9.1964 to form the Indian Oil

Corporation Limited having two Divisions, i.e. Refineries and

Pipelines Division and Marketing Division.

The Refineries Division is mainly concerned with the setting up

and operation of Refineries and Petrochemicals in India.

It owns and operates seven Refineries at :

Guwahati (Assam),
Barauni (Bihar),
Vadodara (Gujarat),
Haldia (West Bengal),
Mathura (Uttar Pradesh), and
32

Panipat (Haryana).
The Assam Oil Division has one Refinery at Digboi and has a
network of marketing set-up. There are two liaison Offices, one
each at Kolkata and Mumbai.

Each Refinery unit is headed by ED/GM who reports directly to

Director (Refineries) and the liaison office at Kolkata and
Mumbai is headed by DGM, who reports to ED (HR).

PERSONNEL & ADMN. DEPARTMENT

The Personnel, Administration, Management Services, HRD &
Training

and

Corporate

Communication

Department

at

Refineries HQ are headed by ED (HR) with the following

functions under his charge:

Personnel

Administration, Welfare & Hindi Implementation

Training and Development

Management Services

Corporate Communication

ED(HR) is assisted in his above functions by GM(A&W),

DGM(Training & Development), DGM(HR), DGM(HRD), CMSM,
and CM(CC) respectively.

The P&A Department at each refinery unit is headed by

DGM(HR)/CHRM who reports to the respective ED/GM.

33

VISION, MISSION & VALUES

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

Mission
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 maximize creation of wealth, value and satisfaction for the
stakeholders.
To attain leadership in developing, adopting and assimilating stateof- the-art technology for competitive advantage.
To provide technology and services through sustained Research and
Development.
To foster a culture of participation and innovation for employee
growth and contribution.
To cultivate high standards of business ethics and Total Quality
Management for a strong corporate identity and brand equity.
To help enrich the quality of life of the community and preserve
ecological balance and heritage through a strong environment
conscience.

Values
Care
Innovation
Passion
34

Trust
IndianOilPeople...
towards Excellence...

Objectives of the proposed study

The main objective of the proposed study was to find out how far the
employee has been satisfied and how far their performance has been
improved after the commencement of 9th pay revision in Indian Oil
Corporation Ltd, Guwahati Refinery. It was necessary to analyze this
scenario in Guwahati Refinery as because prior to the commencement of
9th pay commission in the Indian Oil Sector the employees were not fully
satisfied with their working condition along with the matching of their
payroll. Hindrances and disputes were arising out between the employers
and employees working in this organization.

So it was necessary for a rise in the compensation package in this sector

so that the employees would be satisfied with their performance along
with their compensation package in this organization. So the
commencement of 9th pay commission was implemented in this
organization to attain the satisfaction of the employees in this
organization.

35

Research Methodology
In order to know the satisfaction of the employees working in this organization after the
commencement of 9th pay commission one set of Questionnaire was administered to
the employees ( both officers and non officers) working in this organization on the
online basis.

I.RESEARCH DESIGN: In order to understand the satisfaction of the Employees

after the commencement of 9th pay commission a brief conversation was done with
the employers through online and a survey was done through online basis.

II. Data Collection through Questionnaire:- Primary data have been collected
personally from the respondents through questionnaire through online survey . The
respondent includes both the officers as well as the non officers of every department
working in this organization and analysis on the basis of their working period that is
more than 20 years and less than 20 years. The respondents have been asked to fill up
the questionnaire and more over data collection process also includes oral interview
through online.

III. Sampling Design & Sampling Size: - The elements of research of population or
universe of interest are the peoples both the officers and non officers of every
department working in this organization. The sample size of the study consists of
samples, which include a study of 70 respondents out of which 5% are officers and
15% are non officers from every department working in this organization. In this
regards out of 70 samples 40 of the respondants were taken telephonic interview, 20
36

were given online questionnaire for the survey and for the rest were conducted an oral
interview.

Scope/Relevance of Proposed Study

RELEVANT AND WIDER SCOPE

IMPORTANT FOR BOTH EMPLOYERS AND EMPLOYEES
TO KNOW THEIR POSITION IN THE ORGANIZATION
HELPS IN DISCRIMINATING THE GRADES OF THE
EMPLOYEES
BUILDS

UP

HOSPITALITY

BETWEEN

THE

EMPLOYERS AND EMPLOYEES

HELPS IN STOPPING THE DISPUTES ARISING IN THE
ORGANIZATION
HELPS IN GIVING JOB SATISFACTION TO THE
EMPLOYEES
HELPS THE EMPLOYEES IN MAKING UNDERSTAND
THE IMPORTANCE OF THEIR JOB ROLE

37

Introduction to Oil Companies In

UAE
The oil and gas sector provides around a third of the UAE's Gross
National Product, thanks to a successful programme in recent years
of diversification of the economy, but remains the dominant
contributor of Government revenues. The Abu Dhabi National Oil
Company, ADNOC, supervises policy in Abu Dhabi, under the
guidance of the Supreme Petroleum Council. Production is handled
through joint ventures with consortia of international companies,.
ADNOC also owns, on behalf of Government, all of Abu Dhabi's gas
reserves. Oil production is around 2 million barrels a day. Gas is
increasingly important, both for export, and for meeting local
demand, from domestic and industrial consumers and from power
generation and water desalination plants. Dubai produces around
240,000 barrels a day of oil and substantial quantities of gas from
offshore fields, with a major condensate field onshore, while
Saharjah has smaller oil and gas fields. On the East Coast, Fujairah
is the third largest bunkering port in the world, although all of the
fuel

is

imported.

Downstream

development

of

refineries,

petrochemical plants and other related industries is increasingly

creating an integrated oil and gas sector, equivalent to that of
industrialized nations.
Oil and gas production has been the mainstay of the economy in the
UAE and will remain a major revenue earner long into the future,
due to the vast hydrocarbon reserves at the countrys disposal.
38

Proven recoverable oil reserves are currently put at 98.2 billion

barrels or 9.5 percent of the global crude oil proven reserves.
As for natural gas, the proven recoverable reserves are estimated
currently at 5.8 billion cubic meters or 4 percent of the world total.
This means that the UAE possesses the third largest natural gas
reserves in the region and the fourth largest in the world. At the
current rate of utilization, and excluding any new discoveries, these
reserves will last for over 150 years. The UA E s oil production is
limited by quotas agreed within the framework of OPE C to 2 million
barrels per day (mbd). Production capacity, however, will rise to
around 3 mbd in the year 2000. There are plans to boost that level
to 3.6 mbd in the year 2005 and 4 mbd in the year 2010. Gas
production is being expanded to meet a forecast doubling of
demand to 3.7 billion cubic feet per day (bn cfd) by the year 2000.
Domestic demand is expected to increase from 813 million cubic
feet per day (mn cfd) in 1996 to 1.137 bn cfd by the year 2000,
while gas used for reinjection is projected to double to 1.8 bn cfd.
The value of oil exports dropped from Dh 49.1 billion in 1997 to Dh
35.7 billion in 1998 (-27.3 per cent) due to the deterioration in oil
prices which fell by 34 per cent during 1998 compared with 1997
levels, to reach US $12.4 a barrel. The value of liquefied gas exports
also dropped from Dh 8.5 billion in 1997 to Dh 6.5 billion in 1998,
due to the fall in its prices which are closely linked with oil prices
and owing to the fact that the value of gas exports in 1997 included
a one-time payment of Dh 1.5 billion made to ADGAS by its main
importer Tokyo Electricity Power Company. The UAE exports 62 per
cent of its crude oil to Japan making it the UAEs largest customer.
Gas exports are almost entirely to Japan, the world's largest buyer of
liquefied gas, with the UAE supplying almost one-eighth of Japan's
entire requirements.
International Markets
39

The UAE plays a vital role in achieving stability in international oil

markets through its positive and balanced attitude within OPEC. The
UAE participated in two production cuts in 1998 and also played an
important role in the agreement adopted by OPEC member states in
March 1999 to reduce production by 1.7 mbd. The UAE agreed to
reduce its production by 157,000 bd to a low of 2 mbd. By early
September 1999 international benchmark Brent crude oil was
trading at a new high of US $21.03 per barrel. Oil prices were
expected to continue rising in the fourth quarter of 1999 when
winter weather in the western hemisphere is expected to increase
demand. The UAE welcomed a proposal to hold an OPEC summit
meeting in Venezuela in late 1999 or the year 2000 in order to
reinforce rationalization of the world supply of oil.

Abu Dhabi
Abu Dhabi is by far the biggest oil producer in the UAE, controlling
more than 85 percent of the UAEs total oil output capacity and over
90 percent of its crude reserves. Principal offshore oil fields are
Umm Shaif, Lower Zakum, Upper Zakum, Al Bunduq and Abu alBukhoosh. The main onshore fields are Asab, Bab, Bu Hasa, Sahil
and Shah. Almost 92 per cent of the country's gas reserves are also
located in Abu Dhabi and the Khuff reservoir beneath the oil fields of
Umm Shaif and Abu al-Bukhoosh ranks among the largest single gas
reservoirs in the world.
Abu Dhabi National Oil Company (ADNOC)
40

Oil companies from Japan, France,

Britain and other countries own up to
40 percent of the energy sector in Abu
Dhabi, the only Gulf oil producer to
have retained foreign partners on a
production-sharing basis. More than
half of Abu Dhabis oil production is generated by the Abu Dhabi
Company for Onshore Operations (ADCO), one of the 10 largest oil
companies worldwide and the largest crude oil producer in the
southern Arabian Gulf. The second main producer is Abu Dhabi
Marine Operating Company (ADMA-OPCO). The output of oil and gas
from ADMA-OPCO fields is transported to its center of operations on
Das Island for processing, storage and export. Both ADCO and
ADMA-OPCO are part of the Abu Dhabi National Oil Company
(ADNOC) group of companies. ADNOC, established in 1971, is a fully
owned government company controlled and supervised by the
Supreme

Petroleum

Council

(SPC),

which

is

responsible

for

formulating Abu Dhabi petroleum policy and overseeing the

emirates oil and gas operations and related industry.

ADNOC Group of Companies

In addition to its own concession areas and operations ADNOC has
major shareholdings in 15 ventures forming the ADNOC group.
These include the three main oil and gas operating companies
(ADCO, ADMA-OPCO and ZADCO), five support companies providing
services to the oil and gas industry, two natural gas processing
companies (GASCO, ADGAS), two maritime transport companies for
crude oil, refined products and LNG (ADNATCO, NGSCO), a refined
product distribution company (ADNOC-FOD) and two chemical and
41

petrochemical companies (FERTIL, BOROUGE). ADNOC also owns

and operates two refineries at Umm al-Nar and Ruwais, the gas
treatment plants at Habshan, gas pipeline distribution network and
the chlorine industries at Umm al-Nar.
ADNOC Restructuring
ADNOC announced a major management restructuring plan in
November 1998 shifting the firm's refinery and gas operations to
two new wholly-owned subsidiaries and bringing the number of
subsidiaries up to 17. The two new ADNOC companies, Abu Dhabi
Oil Refining Company (TAKREER) and the Abu Dhabi Gas Company
(ATHEER), were formally established on 19 June 1999. Along with
the creation of refinery and gas subsidiaries the company has set up
five business line directorates (BLDs) to carry out upstream and
down stream activities. Another three directorates will provide
support services for various operations. The new management
structure also creates an executive committee, chaired by a chief
executive officer, to oversee the company's businesses.

Dolphin Project
The Dolphin project was launched in March 1999 following an
announcement by the UAE and Qatar of plans for a joint venture
aimed at transporting gas from Qatar's huge reserves to industrial
consumers in the UAE, Oman and other countries. Dolphin, which is
being developed under the auspices of the UAE Offset Group (UOG),
is intended to provide a framework to stimulate investment in a
42

variety of related industries throughout the value-added gas chain.

(For more information see section on Business Environment).
Economic forecasters predict that the UAE's demand for gas will
double over the next decade.
Dubai Joins Dolphin
The Dubai Government also joined the multi-billion dollar Dolphin
initiative with the signing of a memorandum with the UOG where by
the

Dubai

Supply

Authority

(DSA)

agreed

to

purchase

its

requirements for Qatari gas from Dolphin. Under the terms of the
agreement, Dubai plans to purchase gas in the amount of 200700
mn cfd. The Dubai Government and the UOG also agreed to
cooperate

in

identifying

and

maximizing

opportunities

for

investment arising out of the supply of gas. The Dolphin gas will
bridge the gap between energy supply and demand which will
develop over the next five years as Dubais economy expands.

Dubai
Dubais oil reserves have reduced over the past decade and are now
expected to be exhausted within 20 years. The main fields are
offshore: Fateh, Southwest Fateh and two smaller fields, Falah and
Rashid. The only onshore deposit is the Margham field. Dubai
Petroleum Company (DPC) is the main operator. Dubai has a 2 per
cent

share

of

the

UAE's

gas

reserves.

Dubais

Margham

gas/condensate field can deliver up to 140 mn cfd for domestic use

and offshore fields can provide another 100 mn cfd. Sharjah also
supplies Dubai with 430 mn cfd through a pipeline installed in 1992.
43

The

state-owned

Dubai

Natural

Gas

Company

(DUGAS)

is

responsible for processing natural gas produced in Dubais offshore

oil fields as well as the gas piped from Sharjah.

Sharjah
Sharjah owns 5 percent of the UAE's gas reserves, mostly nonassociated gas which is being utilised domestically. The emirates
most important gas deposits are at the offshore Mubarak field and
the onshore Sajaa, Move yeid and Kahaif fields. Gas reserves are
estimated at 10,000 billion cubic meters and around 800 mn cfd of
gas are produced. Sharjahs offshore Mubarak field, operated by the
local Crescent Petroleum Company, produces around 30,000 bd of
condensate. In July 1999 Crescent Petroleum began drilling Sharjah2 some 30 kilometers offshore of Sharjah where gas has already
been discovered. The site is located 800 meters from the Sharjah-1
well. Any gas finds are expected to contain valuable liquid
condensates. Crescent operates the concession area along with
London-based Atlantis. Crescent Atlantis also announced in July
that they were about to begin major seismic work in the gas-proven
areas of Sharjah's interior desert and this would be followed by
drilling. The onshore Sajaa and Moveyeid fields, operated by BP
AMOCO, produce 35,000 bd of condensate in addition to natural gas.

Sharjah Natural Gas Project

The Sharjah Liquefied Gas Company (SHALCO) was formed to
increase exports of liquefied natural gas (LNG). The first phase of a
Dh 300 million project to supply natural gas to residences,
commercial and industrial premises in Sharjah was officially
inaugurated in March 1999. Natural gas was supplied to buildings in
44

Abu Shaghara in Sharjah marking the beginning of Phase I which is

due for completion in May 2000. A 172 - kilometers network of
pipes, three pumping stations and the internal connections for a
total of 25,000 domestic, commercial and industrial consumers will
be completed in the first phase. Phase II is due to supply the
remainder of the city of Sharjah.
Ras Al-Khaimah
Ras al-Khaimah's reserves are estimated at 400 million barrels of oil
and condensate and 1,200 bn cfd of natural gas. In September
1997,

Ras al-Khaimah awarded

Norways Atlantis

Technology

Services and Petroleum Geo Services a permit to explore the

offshore Baih field. The Ras al-Khaimah Oil and Gas Company, set up
in 1996, has exclusive hydrocarbon rights to the rest of the emirate.
Refineries
In the UAE there are six refineries operational at present and the
existing refining capacity in the region is estimated to be around
800,000 tones. Development of downstream industries such as
refineries and petrochemical plants is a central part of UAE efforts to
move away from crude oil exports. Major plans are under way to
construct new refineries and increase the capacity of existing ones
in order to attain production of 180,000 bd by the year 2000. Abu
Dhabi is presently in the middle of a five - year (19972002)
development project aimed at boosting refining capacity. ADNOCs
US $600 million Ruwais refinery upgrading project is just one of the
many down stream projects that are included in the programme.
Others include a 35,000 bd refinery plant in Fujairah and the Dh 600
million Sharjah re finery at Hamriyyah Free Zone, which commenced
operations in mid-1999.

45

List of Oil and Gas Companies in

Dubai

Dragon Oil - is an independent oil development and

production company
Lamprell Energy Ltd - development of the offshore
industry in the Arabian Gulf
Likpin LLC - turnkey offshore pipelay, marine
construction, services, vessel and project
management for the offshore oil and gas industry
RTE Group - Drilling Fluids bentonite barite lime
mica starch sodium chloride
Specialist Services - one of the foremost
engineering and fabrication companies in the
United Arab Emirates

Major Oil Companies operating in

UAE:

46

State Companies:
Abu Dhabi National Oil Company (ADNOC) has controlling interest in
21 domestic oil and natural gas companies.
Joint Ventures:
Abu Dhabi Co. for Onshore Oil Operations (ADCO) is held by ADNOC
(60%) and a consortium comprising British Petroleum (BP) (9.5%),
Shell (9.5%), Total (9.5%), Exxon (4.75%), Mobil (4.75%), and Partex
(2%).
Abu Dhabi Marine Operating Company (ADMAOPCO) is held by
ADNOC (60%) and a consortium comprising BP (14.7%), Total
(13.3%), and Japan's Jodco (12%).
Zakum Development Company (ZADCO) is operated by ADNOC
(88%) and a consortium (12%) comprising BP, Jodco, and Total
Original Concession Holders:
Union Oil Co., venture of Union Oil Co. and Southern Natural Gas Co.
Abu Dhabi Marine Areas Ltd., BP, CFP, Continental
Dubai Marine Areas Ltd., Continental Oil, BP, CFP, Deutche Erdol AG,
Sun Oil Co.
Phillips-AGIP-Aminoil, joint venture of Phillips, AGIP, and Aminoil

Major Foreign Oil Company Involvement:

BP
Caltex Petroleum Corp.,
Miutsui & Co. Ltd.

47

Parrex
Pennzoil

48

Petroleum Crude Oil & Fuel in UAE

Abu Dhabi National Oil Company (ADNOC)

State-owned oil company with subsidiaries in exploration and production,

support services to oil and gas industry, oil refining and gas processing,
chemicals and petrochemicals, maritime transportation and refined
products and distribution
Petroleum

Abu Dhabi Oil Refining Company (Takreer)

Abu Dhabi-based company engaged in the refining of crude oil and

condensate, supply of petroleum products and production of granulated
sulphur; runs the Ruwais and Umm al Nar refineries
Petroleum

Adnoc Distribution Home Page

Company engaged in the marketing and distribution of petroleum products

in the emirate of Abu Dhabi; also produces and markets specialised
lubricants such as engine oils, gear oils, transmission fluids, brake fluids,
etc
Petroleum Lubricants

Emirates National Oil Company ( ENOC )

49

Company in Dubai engaged in refining and marketing of oil, supply of jet

fuel and aviation fuelling services, manufacture of chemicals and
lubricants, LPG, etc. Petroleum Gas Chemicals Lubricants

Emirates Petroleum Products Company ( EPPCO )

Business group with interests in lubricants, supply of marine bunker fuels,

supply of jet fuel, commercial sales, procurement, storage of refined
petroleum products, and retail sales through petrol service stations
Petroleum .

FAL Group of Companies

Business group based in Sharjah engaged in the trading of oil products

(marine gas oil, marine diesel oil, blending products, etc), shipping, supply
of lubricants; a refinery is also under construction in Sharjah
Petroleum Shipping Companies Lubricants

Ghayasiban Group

Business group based in Dubai & Lucknow (India); activities include

software development, industrial measurement & control instrumentation,
petroleum trading, a college in Lucknow, & a bank
Business Groups Instrumentation Petroleum Software Firms

Gulf Oil & Gas

Portal and e-marketplace for the Middle East and Africa oil and gas
marketplace; site contains a wealth of detail about companies providing
products and services for the oil and gas industry, searchable by country
and product category
Petroleum
50

Gulf Oilfield Directory

Annual publication of companies in the oil and gas industries; online

searchable version available; published by Arabian Publications, a
company incorporated in the British Virgin Islands
Petroleum

10

Pipeline Magazine

Magazine on the oil and energy industry; circulated across the Arab world;
web site has samples of articles from the magazine and subscription
details

Oil companies struggling to keep on top of

emerging Threats
Less than 10 percent of national oil company (NOC) leaders
surveyed by Marsh Inc. strongly feel they have a full understanding
of the risks they face and how to effectively manage them.
This finding was contained in a new study released recently by
Marsh examining risks and operational challenges among stateowned oil enterprises. Marsh gathered much of the data from a
recent groundbreaking global risk advisory meeting held in Dubai
and attended by approximately 250 leaders from NOCs, government
and academia.
The Impact of Risk on National Oil Companies also reveals a strong
desire by NOC leaders to understand risk better and find better
ways to share related best practices. More than 90 percent of the
NOC leaders Marsh polled agreed that more discussion forums were
needed.

51

The spectrum of risk that business leaders face today is far more
complex than ever before, said Brian Storms, chairman and CEO of
Marsh. Not too long ago, the top concern for an NOC might have
been a fire at a refinery. But the study we conducted at the Marsh
National Oil Companies Conference in Dubai shows that newer risks
such as the impact of climate change are moving near the top of
the list.

Insurer warns oil companies about

Renewable Energy
Renewable energy sources were called "a growing risk" at a gathering of
oil executives today in Dubai.

As renewable energy rises in importance, it poses a threat to oil

companies.
The worlds desire for environmentally-friendly energy sources
appears to be rising faster than global temperatures. This is a
growing risk to all energy producers one that goes well beyond a
fire at a plant, or a tanker that runs aground. Whats important for
you as large producers of hydrocarbons is to view this risk honestly
and address it strategically," said Brian Storms, Chairman and CEO
of Marsh Inc., at the opening of the Marsh National Oil Company
conference in Dubai.
The normal tendency would be a bias for action, where you might
jump to a tactical, defensive position. But there is a new world view
of risk specifically, how to find opportunity in the kind of global
changes were seeing where risks and potential liabilities can be
turned into a competitive advantage over those companies that
dont move to address them.
With many facilities situated either on areas of permafrost or in
proximity to the arctic ice shelf, a potential thawing induced by
52

climate change would present significant risk. Understanding this

risk and prioritizing its potential impact allowed the client to take
measures to address it.
Storms also cited other potential risks faced by national oil
companies, including terrorist acts, the effects of a major natural
disaster on production, the concentration of supply chains
especially due to the threat of avian flu and other risks.
"The world is beginning to become more concerned about climate
change. It would be prudent for all energy producers, not just oil
companies, to understand their footprints in the world, and that
there will be more constituent groups that will produce more
challenges than the past."

Price Of Oil - Drawing The Line

Last summer, when the price of oil was bouncing off the rev limiter
and a gallon of regular was putting $4-plus holes in our wallets, we
wondered if it would continue, and what we would do if it did. The
slide in oil prices has been the best news that consumers have
gotten all year. But will low fuel prices continue?
Just a few months after the near-$150 high, the price of a barrel of
crude oil plummeted 70 percent, to about $40. It turns out that this
upside has more than a little downside, and it may mean bad news
in the future. Last summer's high prices were a result of a complex
series of events-a "perfect storm" involving speculation in the oil
markets, high demand for oil products, the peaking or near-peaking
of production volumes, the incipient financial crisis, etc. But at least
we now have a pretty good explanation for what went on in the
price increase.

53

The problem is that no oil producer is making money at $40 per

barrel. We've heard estimates that the break-even point is now $60
to $80 per barrel, so producers are hurting. Why doesn't a producer
simply stop producing if it loses money on every barrel? That
question is answered when you realize that most of our oil now
comes from national entities (Saudi Arabia, Venezuela, Iran, etc.)
rather than companies like Exxon or Shell. These countries do
indeed work with companies, but the basic decisions there are
governmental. These governments are dependent on oil revenue for
infrastructure, social programs, military spending and all the rest.
For them, if revenue stops, the government stops.

The OPEC nations want the oil price to climb to at least $70 per
barrel, and to help make that happen they've agreed to cut
production by about 4.3 million barrels per day. Total world
production is now about 85 million barrels per day, so the OPEC cuts
represent about 5 percent of the total. The result should be a boost
in oil prices, but it hasn't worked-at least not yet. Part of the
problem is that while the nations may agree, they may not cut as
much as promised to avoid a drop in revenue.

More drastic cuts in production might do the trick, but no one knows
the "tipping point" at which a large reduction in supply might lead to

54

a rapid price increase like last summer, and those kinds of prices
might hurt everyone by making the worldwide recession worse.
The $40-per-barrel price is hurting oil companies and oil nations
around the world. You heard the mantra "drill, drill, drill" last
summer, but something like $100 billion in new oil-industry projects
have been cancelled since the fall in prices, and oil rigs,
infrastructure and equipment are idle or not being maintained.
Alternative energy projects have also taken a hit, as their worth is
compared to the price of oil, and if oil is cheap, why seek
alternatives?
Some of the most negative voices are coming from old hands in the
oil patch, and it's not just because of the current price. The
industry's infrastructure is made predominantly of steel, and many
of the rigs, platforms, pipelines and refineries that were new 40 or
50 years ago are rusting and not being renewed. The industry also
has depended on a generation of workers who are not only aging,
but are too often not being replaced.
If demand for oil increases once again as economic recovery begins,
where will the necessary increase in supply come from? Are we, as
many analysts believe, at or beyond the all-time peak of production?
Oil at $40 per barrel-and the financial crisis-has left us a weaker oil
industry. And, ironically, a weaker alternative-energy industry, at a
time when we need both to stabilize future energy resources. If we
see serious shortages, prices will spike. Let's hope it's not the
making of another perfect storm.

Rising Oil Keeps Companies on Their

Toes

55

Just when companies were getting used to cheap oil, crude prices have
recently started climbing again, keeping businesses jittery and alert in
case last year's record levels are repeated or prices spiral out of control.
Nouriel Roubini, the well-known New York University professor who
predicted the financial crisis, thinks that crude, which currently hovers
above $70 a barrel, may rise to $100 next year.
A Seoul financier predicts a rise, partly because of the weakening trend of
the greenback and the financial constraints oil producers have found
themselves in.

The three-digit-mark may seem like a long way off, but the International
Energy Agency's newly revised forecast adds support to the outlook that
prices won't go back to figures seen earlier this year.
Crude traded as low as $30 a barrel earlier, a steep crash after it neared
$150 a barrel in the summer of 2008.
The agency projected Thursday that 2009 oil demand would go up on
signs the recession is bottoming out, which fueled trading to spike to a
seven-month high on the same day.
56

West Texas Intermediate crude for July delivery broke the $70 threshold to
nearly $73 on the New York Mercantile Exchange, while benchmark Dubai
crude, Korea's main import, hit a new high for the first time since last
October.
What does all this mean for companies? Anxiety and a rush of worry no
matter the industry.
``Oil prices affect everything, from manufacturing and packaging to
transporting, no industry is insulated,'' said Lee Dal-suk, a senior analyst
at the Korea Energy Economics Institute, a state-run think tank.

Indian Oil Corporation Ltd in India

========================
=======
Oil & Gas Industry in India
The origin of oil & gas industry in India can be traced back to 1867 when
oil was struck at Makum near Margherita in Assam. At the time of
Independence in 1947, the Oil & Gas industry was controlled by
international companies. India's domestic oil production was just 250,000
tonnes per annum and the entire production was from one state Assam.

The foundation of the Oil & Gas Industry in India was laid by the Industrial
Policy Resolution, 1954, when the government announced that petroleum
would be the core sector industry. In pursuance of the Industrial Policy
Resolution, 1954, Government-owned National Oil Companies ONGC (Oil &
Natural Gas Commission), IOC (Indian Oil Corporation), and OIL (Oil India
Ltd.) were formed. ONGC was formed as a Directorate in 1955, and
became a Commission in 1956. In 1958, Indian Refineries Ltd, a
57

government company was set up. In 1959, for marketing of petroleum

products, the government set up another company called Indian Refineries
Ltd. In 1964, Indian Refineries Ltd was merged with Indian Oil Company
Ltd.

to

form

Indian

Oil

CorporationLtd.

During 1960s, a number of oil and gas-bearing structures were discovered

by ONGC in Gujarat and Assam. Discovery of oil in significant quantities in
Bombay High in February, 1974 opened up new avenues of oil exploration
in offshore areas. During 1970s and till mid 1980s exploratory efforts by
ONGC and OIL India yielded discoveries of oil and gas in a number of
structures in Bassein, Tapti, Krishna-Godavari-Cauvery basins, Cachar
(Assam), Nagaland, and Tripura. In 1984-85, India achieved a selfsufficiency level of 70% in petroleum products.

In 1984, Gas Authority of India Ltd. (GAIL) was set up to look after
transportation, processing and marketing of natural gas and natural gas
liquids. GAIL has been instrumental in the laying of a 1700 km-long gas
pipeline (HBJ pipeline) from Hazira in Gujarat to Jagdishpur in Uttar
Pradesh,

passing through Rajasthan and Madhya Pradesh.

After Independence, India also made significant additions to its refining
capacity. In the first decade after independence, three coastal refineries
were established by multinational oil companies operating in India at that
time. These included refineries by Burma Shell, and Esso Stanvac at
Mumbai, and by Caltex at Visakhapatnam. Today, there are a total of 18
refineries in the country comprising 17 in the Public Sector, one in the
private sector. The 17 Public sector refineries are located at Guwahati,
Barauni, Koyali, Haldia, Mathura, Digboi, Panipat, Vishakapatnam, Chennai,
Nagapatinam, Kochi, Bongaigaon, Numaligarh, Mangalore, Tatipaka, and
two refineries in Mumbai. The private sector refinery built by Reliance
Petroleum Ltd is in Jamnagar. It is the biggest oil refinery in Asia.

58

By the end of 1980s, the petroleum sector was in the doldrums. Oil
production had begun to decline whereas there was a steady increase in
consumption and domestic oil production was able to meet only about
35% of the domestic requirement. The situation was further compounded
by the resource crunch in early 1990s. The Government had no money for
the development of some of the then newly discovered fields (Gandhar,
Heera Phase-II and III, Neelam, Ravva, Panna, Mukta, Tapti, Lakwa Phase-II,
Geleki, Bombay High Final Development schemes etc. This forced the
Government to go for the petroleum sector reforms which had become
inevitable if India had to attract funds and technology from abroad into the
petroleum sector. The government in order to increase exploration activity,
approved the New Exploration Licensing Policy (NELP) in March 1997 to
ensure level playing field in the upstream sector between private and
public sector companies in all fiscal, financial and contractual matters.

To meet its growing petroleum demand, India is investing heavily in oil

fields abroad. India's state-owned oil firms already have stakes in oil and
gas fields in Russia, Sudan, Iraq, Libya, Egypt, Qatar, Ivory Coast,
Australia, Vietnam and Myanmar. Oil and Gas Industry has a vital role to
play in India's energy security and if India has to sustain its high economic
growth rate.

59

Oil Companies In India

Bharat Petroleum Corporation Limited

Bharat Petroleum Corporation Limited continues to meet the
challenges of rapidly changing technology in the Indian Petroleum
Industry.
IBP
IBP was established in the year 1909 in Rangoon. IBP is now part of
the prestegious Indian Oil Corporation Group. Indian Oil is India's
flagship Oil Company with nine refineries, over 6500 kms of cross
country pipelines and 186 bulk storage depots and terminals.
Indian Oil Corporation Limited
Indian Oil Corporation Ltd. (IndianOil) was formed in 1964 through
the merger of Indian Oil Company Ltd. (Estd. 1959) and Indian
Refineries Ltd. (Estd. 1958). It is also the 19th largest petroleum
company in the world. IndianOil has also been adjudged No.1 in
petroleum trading among the national oil companies in the AsiaPacific region.
Oil and Natural Gas Corporation Ltd.
ONGC ended the sectoral regime in the Indian hydrocarbon industry
and benchmarked the globally- established integrated business
model; it took up 71.6 per cent equity in the Mangalore Refinery &
Petrochemicals Limited.
Shell in India
Shell businesses exist to meet the energy needs of society in ways
that are economically, socially and environmentally viable, now and
in future. All of our businesses are united by common goals; to
make the most of our existing business; to gain new business and to
break new ground.
60

List of Subsea Oil and Gas Companies in India

Aban Offshore Limited - a leading name in offshore drilling services

Aeromarine - offshore supplier,ship chandler,ship repairs,dealers @
exporters of ship spares & aids to marine navigation
Alfa Pumps & Systems - offers heavy-duty gear pumps
Bharat Petroleum - Refining, Storing, Marketing and distributing petroleum
products
Cairn India - largest producing oil field in the Indian private sector
Essar Oil - operates a fully integrated oil company of international size and
scale in India.
Great Offshore - integrated offshore oilfield services provider
GSPC Gujarat State Petroleum Corporation - vertically integrated energy
company across India and overseas
Gumpro Chem Drilling Fluids - offers a complete range of drilling fluid
additives like Specialized Lubricants, Stuck Breakers, loss Circulation
material Dispersants,
Guru Industrial Valves Pvt. Ltd. - one of the pioneers in the world of Valves
and Pipe fittings
Hindustan Petroleum - major integrated oil refining and marketing
companies in India
Indian Oil Corp - major diversified, transnational, integrated energy
company
61

Indiana Gratings Pvt. Ltd. - design, manufacture, supply and erection of

gratings all over the world.
Jagson International Limited (JIL) - offshore drilling in the Indian waters
Jindal Drilling & Industries ltd - deep ocean well drilling engineering and
more
Kavin Engineering and Services Private Ltd - Process, mechanical,
instrumentation, piping and structural engineering for oil and gas
production and processing facilities.
M/S Kunj Forgings P LTD - manufacturer of pipeline accesories such as
forged & casted valves & forged flanges
Orion Instruments - manufacturers of pressure switches
Parveen Industries Pvt. Ltd - manufacture metallic conduits of electric
cables
Petrodril - providing professional services, technical and corporate, to the
petroleum and other energy related business.

HALDIA
INTRODUCTION OF OIL COMPANIES IN HALDIA

Haldia Refinery (Near Kolkata, West

Bengal)
Haldia Refinery, one of the seven operating refineries of IndianOil, was
commissioned in January 1975. It is situated 136 km downstream of
Kolkata in the district of Purba Medinipur, West Bengal, near the
62

confluence of river Hoogly and Haldi.

From an original crude oil

processing capacity of 2.5 MMTPA, the refinery is operating at a capacity

of 5.8 MMTPA at present. Capacity of the refinery was increased to 2.75
MMTPA through de-bottlenecking in 1989-90. Refining capacity was
further

increased

to

3.75

MMTPA

in

1997

with

the

installation/commissioning of second Crude Distillation Unit of 1.0 MMTPA

capacity. Petroleum products from this refinery are supplied mainly to
eastern India through two product pipelines as well as through barges,
tank wagons and tank trucks. Products like MS, HSD and Bitumen are
exported from this refinery. Haldia Refinery is the only coastal refinery of
the corporation and the lone lube flagship, apart from being the sole
producer of Jute Batching Oil. Diesel Hydro Desulphurisation (DHDS) Unit
was commissioned in 1999, for production of low Sulphur content (0.25%
wt) High Speed Diesel (HSD). With augmentation of this unit, refinery is
producing BS-II and Euro-III equivalent HSD (part quantity) at present.
Resid Fluidised Catalytic Cracking Unit (RFCCU) was commissioned in
2001 in order to increase the distillate yield of the refinery as well as to
meet the growing demand of LPG, MS and HSD. Refinery also produces
eco friendly Bitumen emulsion and Microcrystalline Wax. A Catalytic
Dewaxing Unit (CIDWU) was installed and commissioned in the year 2003
for production of high quality Lube Oil Base Stocks (LOBS), meeting the
API Gr-II standard of LOBS.
In order to meet the Euro-III fuel quality standards, the MS Quality
Improvement Project has been commissioned in 2005 for production of
Euro-III equivalent MS. The refinery expansion to 7.5 MMTPA as well as a
Hydrocracker project has been approved, commissioning of which shall
enable Haldia Refinery to supply Euro-IV and Euro III HSD to the eastern
region of India.

63

IOC puts on hold its Haldia Refinery

Plan

Indian Oil Corporation (IOC), the countrys largest oil marketing company,
has put on hold its plan to set up a 15-million tonne refinery at Haldia due
to the economic downturn. IOC was supposed to rope in an international
partner for the project.
The project has been put on hold because of the financial turmoil and no
progress has been made, said an IOC executive.
Now, it may be difficult for IOC to find an international company for such a
large complex, said an industry expert.
IOC and the West Bengal government were to jointly explore the possibility
of roping in an internationally-reputed multinational company as a partner.
IOC along with this international partner was supposed to carry out a
techno-economic feasibility study for the project. The study has not yet
been conducted in the absence of such a partner.
In September 2006, IOC had signed a memorandum of agreement (MoA)
with the West Bengal government to develop Haldia as a Petroleum,
Chemicals and Petrochemicals Investment Region (PCPIR). The agreement
envisaged setting up of a refinery of 15-million tonne capacity with
downstream petrochemical facilities. IOC already operates a 6-million
tonne refinery at Haldia, which is being expanded to 7.5 million tonnes.
IOC is not the only company that has put on hold its expansion plan. Last
week, Mangalore Refinery and Petrochemicals, a subsidiary of Oil and
Natural Gas Corporation (ONGC) said it has shelved its plan to build a 15million tonne refinery.

64

Analysts say the economic downturn is not the only reason behind putting
such plans on hold. Such decisions are also being influenced by the
increasing surplus refining capacity in the country. India has surplus
refining capacity of nearly 45 million tonnes, which is set to increase
further.

IOC stops supplies as Haldia Cheque

Bounces
The crisis being faced by haldia petrochemicals ltd deepened further with
indian oil deciding to stop naphtha supplies after a rs 21 crore cheque
issued by the former bounced on friday. this is the second time that
cheques to the oil major issued by the rs 5,300 crore joint venture
between the west bengal government, the tatas and the purnendu
chatterjee group have bounced. "some consignments are on way so we
can't do anything about them. but after that we are stopping supplies till
payments are cleared," a top ioc official said. the official also expressed
unhappiness over the post-dated

cheque payment system in the

commercial pact with hpl. two of hpl's cheques issued to ioc for rs 17.33
crore and rs 20.38 crore had bounced last month. subsequently, hpl
revalidated them but requested ioc to delay encashment siting poor sales.
hpl also has a 60-day breather for payments. the company doesn't have to
pay interest for the first 30 days. hpl has been facing problems for
sometime now, with the tatas seeking an exit. the latest incident may put
off ioc which has shown willingness to take up to 26 per cent equity
provided it gets the management control. it also envisages restructuring
the existing equity share capital of the company and significant reduction
in the stakes of the existing promoters. ioc has also been willing to
contribute fresh equity share capital of rs 468 crore to acquire a 26 per
cent stake in hpl, proposed to be made at par.

Paradip-Haldia Crude Pipeline to be

ready Soon
65

After a delay of more than a year, Indian Oil Corporation (IOC) is

now poised to complete the Paradip-Haldia crude pipeline, hopefully
in a month or two.
The project will reduce the transportation cost of crude to both
Haldia and Barauni refineries in West Bengal and Bihar respectively.
The Rs 1,178-crore project - including single-point mooring and
storage facility at sea port at Paradip in Orissa - had run into rough
weather following a series of problems involving project design,
environmental clearance and differences with the Iranian contractor
deployed to complete the SPM and the connecting offshore pipeline.
SPM project contractor
According to sources, to hasten the process, the company recently
replaced the SPM project contractor - Iranian Offshore Engineering
and Construction Company (IOEC) - with Oil and Gas Engineering
Systems of Australia.
IOEC was charged with inordinately delaying completion of the
project.
Escalation
Though the decision may lead to legal complications between IOC
and IOEC, IOC is now hopeful of completing the project shortly.
There are, however, chances of escalation in project cost depending
upon the legal developments.
"The Australian company has just set foot on the project. There is
30-35 days residual work left in regard to the offshore pipeline
connecting

the

SPM

to

onshore

storage

facility.

However,

considering the heavy monsoon in the East coast, which is about to

arrive, there may be some minor delay. Overall we are now hopeful
66

to complete the project in next two months," a senior company

official said.
Sub-surface pipeline
Meanwhile, IOC sources said Punj Llyod has helped overcome
technical problems in laying the 330 km sub-surface pipeline from
Paradip to Haldia crossing a number of river estuaries, including the
largest and most difficult of them all - the estuary of the Mahanadi.
"There were serious problems in laying the pipeline under the
Mahanadi leading even to a change in design. However, the project
contractor struck to work at the agreed cost," the official said,
adding that the pipeline project has been completed.
It is of interest to note that Iranian Offshore Engineering and
Construction Company has previously faced similar charges from
ONGC for a pipeline-cum-platform modification project.

67

Indian Oils Pipeline Network nears 10 K

Ian

IndianOil, the state-owned oil marketing company will cross a pipeline network
of 10,000 km before the end of calendar 2008. The company has a pipeline
network of 9,700 km now and is about to operationalise its 330-km ParadipHaldia pipeline.
Requesting anonymity a source close to the development said, "We hope to
reach the 10,000 mark soon considering the Paradip-Haldia crude pipeline will
be commissioned before December 31." Once the company reaches this
mark, its total throughput capacity will hit ,70 million tonne per annum (mtpa).

IndianOil is setting up the Paradip to Haldia pipeline to bring down the cost of
transportation of crude oil to both Haldia and Barauni refineries. Currently, the
crude oil is being supplied from the Haldia port in small consignments. At Rs
1,420 crore, the pipeline is one of IndianOil's most ambitious projects as it is
expected to facilitate further expansion of refinery capacities in the eastern
region.
The source said although the project was initiated in 2004, it faced delay due
to initial hurdles. Later, the offshore single point mooring system faced
problems. "It is now ready and the pipeline is almost in place," he said, adding
that the pipeline will have a capacity of 11 mtpa.
The company which had a pipeline network of 9,273 km at the start of this
fiscal year, plans to add 4,000 km before the end of the current Five-Year
Plan, which ends in March 2012. "We are currently working on 13 different
projects with a total investment of Rs 2,500-2,600 crore. The pipelines are an
68

integral part of these 3 projects," the source said.

The first of the projects was a small Bangalore ATF line pipeline which was
commissioned in October 2008. The second was IndianOil's first LPG pipeline
from Panipat to Jalandhar Spanning 275 km, it was commissioned in
November. The third is the Panipat Haldia pipeline.

Indian Oil To Gain From Haldia-Paradip

Pipeline
Indian Oil Corporation (IOC) has decided to lay a crude pipeline
between Haldia and Paradip with an annual throughput capacity of
11 million tonne (mt) at a cost of Rs 1,154 crore.
The move will enable the oil major to save Rs 400 crore, when
compared to the cost involved for setting up a floating storage
offtake (FSO) at the mouth of the Hooghly, proposed by the Kolkata
Port Trust (KoPT). KoPTs river port Haldia will, however, will lose
considerable petroleum cargo.
This pipeline will connect Paradip port in Orissa with IOCs refinery at
Haldia in West Bengal and further with the help of existing Haldia-Barauni
pipeline, which carries crude to IOCs Barauni refinery in Bihar.

The Haldia-Paradip pipeline project is now awaiting statutory

clearances of the Union government and the governments of Orissa
and West Bengal. It will take three years to complete the pipeline
project, IOCs chairman MS Ramachandran said here Tuesday.
He was talking to reporters on the sidelines of an interactive session
on Oil and Gas Scenario of India with Particular Reference to
Eastern India and West Bengal organised by the Bengal Chamber of
Commerce and Industry.
69

The new pipeline will be the lifeline for IOC, as Haldia and Barauni
refineries are incurring huge losses because of the additional cost of
transporting crude through Haldia port where larger vessels cannot
call in, Mr Ramachandran said.
IOC will set up a single-buoy mooring (SBM) facility off the Paradip
coast to enable VLCCs or very large crude carriers to discharge their
cargo. The crude will then be piped on to the Haldia and Barauni
refineries.

70

GUJARAT

Introduction To Gujarat Refinery

More than 25 years ago, the Government of Gujarat conceived of the

formation of a petrochemical company, that has today metamorphosed
into a large-scale Rs. 3900 crore energy organization, excelling in a wide
gamut of hydrocarbon activities. Notwithstanding its limited role and the
low key infrastructure, the organization drew inspiration from the exciting
opportunities that the hydrocarbon sector offered in the wake of
liberalization of Indian economy. It gradually began to expand its vision,
widened the scope of its activities and rechristened itself as Gujarat State

GSPC has grown from operator ship of small fields in Gujarat into an
expansive oil and gas exploration and production company across India
and overseas within just a decade. The company has recently drilled its
50th onshore well, which is a landmark considering the fact that GSPC has
been an Operator only since Aprill 2000. Its rise in the hydrocarbon sector
was helped in no small measure by the Central Government's opening of
the sector to private participation in the early 1990s.

71

Indian Oil Corporation Ltd in North East

Region

(Guwahati Refinery)

PROFILE OF GUWAHATI REFINERY

(ASSAM)

The Guwahati Refinery in North East India -- the first Public

Sector refinery of the country -- was commissioned in
1962

with

subsequently

capacity
increased

of

0.75
to

1.0

MMTPA

which

MMTPA

was

through

debottlenecking projects. The refinery processes only

indigenous crude oil from the Assam oil fields. With its
main secondary unit, a coking unit, it produces middle
distillates from heavy ends and supplies petroleum
products to North-Eastern India, and surplus products
72

onward to Siliguri in West Bengal in 2003. Hydrotreater

Unit for

improving the quality of diesel has been

commissioned in 2002. In 2003, the refinery installed an

Indmax Unit, a novel technology developed by Indian
oils R&D Centre for upgrading heavy ends into LPG, Motor
Spirit and Diesel oil.

INTRODUCTION TO HUMAN RESOURCE

DEPARTMENT

GUWAHATI REFINERY
========================
=======
The Human Resource Department The Personnel,
Administration,

Management

Services,

HRD

&

Training

and

Corporate Communication Department at Refineries are headed by

ED (HR) with the following functions under his charge:
1
73

Personnel

Administration and Welfare

Training and Development

Management Services

Corporate Communication

The role of the personnel department is to promote and develop

cooperative attitude amongst employees and to inculcate in them a
sense

of

belongingness

progressive

personnel

to

the

policies

organization

and

practices

culture,
which

evolve
ensures

employee satisfaction, to ensure that employees can undertake skill

up-gradation

through

appropriate

training

so

that

they

feel

themselves equipped to face new challenges and technologies,

enhance employee participation in management and act as change
agent to new interventions.
Personnel management essentially being a staff functions, Personnel
Department's role will be that of a staff department with emphasis
on its advisory character in all matters connected with personnel
activities except in respect of the promotion of welfare measures
which will be the executive responsibility of this Department.
Personnel Department shall also be responsible for ensuring
compliance with the provision of various labor laws and other
statutes.
In Guwahati refinery the functions are divided amongst two senior
human resource managers (SHRM). Each SHRM appoints deputy
manager to subdivide their functions. SHRM also appoints Senior
Administrative officers (SAO) to take care of the administrative
functions.
The organogram of Guwahati refinerys HR department is given in
the next page.

74

Functions of SHRM: They have to look after employee relations

which includes looking after facilities like medical facilities, wages,
incentives that are being provided to the employees or not. They
mainly direct their Deputy Managers to look after these aspects.
SHRM is also in charge of looking after the contract labor related
issues. They do this by giving approval to the entry and exit of
contract labor during the contract period after the initial verification
is done by employee relations officer.
The SHRM also has to look after various legal activities like land and
estate matters as and when arise. SHRM looks after the time office
matters like entry and exit of employees and also a very important
function that is wage administration.
Functions of Deputy Managers: They perform the functions of
approving land and estate matters, and then development of
surrounding

community,

looks

into

the

matters

of

certain

educational undertakings financed by Guwahati refinery, forwards

the requests for loans and advances by employees to the finance
department. They scrutinize the reports of senior administrative
officials regarding various matters. They also monitor employee
performances and identify cases where training is required. The
maintenance of administrative building like looking after water
filters, chairs, computers, tables etc. is also one of the functions of
deputy manager.

Functions of Senior Administrative officer (SAO): They look

into the matters of land, carry out time to time inspection of the
lands acquired by Refinery, they look into the matters of community
development,

genuineness

of

their

requirements

and

fund

allocation, they perform the function of staffing employees by

placing them in those jobs in accordance to their skill set. They look
75

after the wage administration and they are responsible for

formulating the wages to be allocated. They also have to look after
medical

benefits,

promotion,

probation

and

recruitment

and

performance appraisals.
Functions of Employee Relations Officer (ERO): They keep
track of contract labourers right from their entry passes to their
days of work, payment and provident funds. They perform the
function of approving loan and advances and forwarding them to the
finance dept. They also have to keep a track of uniform and safety
shoes supplied to employees working in the plant. Canteen and
pantry is also taken care of by the employee relations officer.
DEPUTY MANAGER (ER)

HUMAN RESOURCE FUNCTIONS IN GUWAHATI

REFINERY
76

=============================================
============
STAFFING
o

Manpower planning

Determine the organizational structure and optimize

manpower to effectively meet Companys objective

Job description

Recruitment

Personnel records

Promotion

Transfer

PERSONNEL MAINTENANCE
o

Motivation

Performance Appraisal

Recreation

Communication

Employee amenities - canteen , clubs etc.

Safety

Medical Services

Security

DEVELOPING THE HUMAN RESOURCE

77

Induction and apprentice training

Training & development of employees.

INDUSTRIAL RELATIONS
o

Productivity Bargaining

Grievance Handling

Discipline Administration

Providing joint consultative machinery-Joint

Management Councils

COMPENSATION
o

Wage & Salary surveys & controls

Negotiations

Incentives/bonus

PERSONNEL POLICY & PLANNING

o

Defining Organizational goals, Policy guidelines and

strategies

Formulating & implementing Personnel policies

78

DATA INTERPRETATION AND ANALYSIS

1) For how many years have you been working in this organization?
Analysis: It was analysed that maximum of the employees
years of service is in between 10 years to 20 years.
2) What is your grade in this organization?
a) A ( ) (b) B ( ) ( c) C ( ) (d) D ( )

(e) E ( )

INTERPRETATION:
28.57
GRADE A

%
14.29

GRADE B

%
28.58

GRADEC

%
14.29

GRADE D

%
14.29

GRADE E

Analysis: It was analyzed that in this organization maximum of the

Employees worked in Grade C level

79

3) What was your Compensation Package before the commencement

of 9th Pay Commission?
a) Below 10,000( ) (b)10,000-20,0000(

) (c)20,000-30,000( )

d) 30,0000-40,000( ) (e) More than 40,000( )

Interpretation:
14.29
Below 10 000

%
42.86

10000-20000

%
28.58

20000-30000
30000-40000
More than 40 000

%
7.14%
7.14%

ANALYSIS: It was analyzed that before the commencement of 9th Pay

Revision maximum of the employees compensation package was
between 10 000 to 20 000 respectively.

80

4) Are you satisfied with your working condition in this organization?

a) Yes ( )

(b) No ( )

INTERPRETATION
85.71
Yes

%
14.29

No

ANALYSIS: It was analyzed that maximum of the employees were

satisfied with their working condition prevailing in this organization.

81

5) Are you satisfied with your payroll along with your working
condition?
a) Yes ( )

( b) No ( )

Interpretation:
71.42
Yes

%
28.57

No

Analysis: It was analyzed that maximum of the employees were satisfied

with their payroll along with their working condition in this organization.
The ratio of their Payroll in respect to their Working Condition was
beneficial to them.

82

6) Do you think there should be a rise in salary package in this

organization?
a) Yes ( )

( b) No (

INTERPRETATION:
57.14
Yes

%
42.85

No

Analysis : Maximum of the respondants stated that there should be a rise

in the salary package in respect to this organization.

83

7) Do you think there should be implementation of 9th pay commission in

this organization?
a) Yes ( )

( b) No ( )

INTERPRETATION
71.42
Yes

%
28.57

No

ANALYSIS: It was analyzed that maximum of the respondants stated

that the 9th Pay Revision should be implemented in this organization.

84

8) What was the reimbursement in your salary package after the

commencement of 9th pay revision?
a) 10% ( )

(b) 20%( )

(c) 30% ( )

( d) 40% ( )

(e) 50% (

)
INTERPRETATION:
28.58
10%

%
14.29

20%

%
28.58

30%

%
14.29

40%

%
14.29

50%

Here , 1=10%, 2=20%, 3=30%, 4=40% and 5=50% as indicated in the graph below.

ANALYSIS: It was analyzed that at an average maximum of the

respondants reimbursement was to a rise of 10% & 30% after the
commencement of 9th pay revision in this organization.

85

9) Now are you satisfied with the payroll along with your working
condition after the commencement of 9th Pay Revision?
a) Strongly Dissatisfy ( )

(b) Dissatisfy (

(c) Neither Satisfy Nor Dissatisfy (

(d) Satisfy ( )

(e) Strongly Satisfy ( )

INTERPRETATION
14.29
Strongly Dissatisfy

%
14.29

Dissatisfy

%
14.29

Neither Satisfy Nor Dissatisfy

%
28.58

Satisfy

%
28.58

Strongly Satisfy

ANALYSIS: It was analyzed that after the commencement of

9th Pay Revision the employees were satisfied working in this
86

organization

87

CONCLUSION
Taking into consideration the 5 Rating Scale i.e strongly
satisfied,

satisfied,

neither

satisfied

nor

dissatisfied,

dissatisfied and strongly dissatisfied it was found out that

after the commencement of 9th Pay Revision in Indian Oil
Corporation Ltd, Guwahati Refinery the employees were
strongly satisfied by the payroll enhanced to them.
This was because of the reason that there was a strong
rise in the increment given to employees working in this
public sector unit. There was a tremendous rise in the
increment i.e 50%. This made the employees achieve their
job satisfaction in respect to the point of view in regards to
the compensation package in this particular unit.
A brief graph has been enumerated below showing the
satisfaction of the working condition of the employees
after the commencement of 9th Pay Revision in this
particular unit.
Strongly Dissatisfy:14.29%

Neither Satisfy Nor

Dissatisfy:14.29%
Dissatisfy:14.29%

Satisfy:28.58%,

Satisfy:28.58%

88

Strongly

89

RECOMMENDATION AND SUGGESTION

Although it was found that the employees were fully satisfied with their
payroll after the commencement of 9th pay revision in Indian Oil
Corporation, Guwahati Refinery it was still advised to recommend that
there should be a slight rise in the compensation package in the group of
A Grade and B Grade employees. This is because of the reason that since
this two categories comes under the designation of officer in this reputed
organization.
No doubt Indian Oil Corporation Ltd is one of the most reputed
organization all over India so to keep its position mandatory in respect to
the payroll scheme a slight rise increment will give a strong reflection in
the virtue and vice in respect to this category.
So it is strongly recommended that a slight increase in the payroll scheme
in respect to grade A and grade B employees will make their position
more respectable in this organization.

90

REFERENCE
Websites Referred:
www.iocl.in
www.monetarycontrol.com
www.quickmba.com
www.netmba.com
www.investorwords.com
www.answers.yahoo.com
www.motorcyclist.com
www.businessmirror.com
www.adnoc.ae.com
www.iloveindia.com
www.valuenotes.com

INTRANET REFERRED
Intranet of Indian Oil Corporation Ltd, Guwahati
Refinery.

91

92

Questionnaire
ON
COMPENSATION MANAGEMENT: AN ANALYSIS IN
RESPECT OF SALARY WITH 9TH PAY REVISION IN IOCL,
GUWAHATI REFINERY

1) For how many years have you been working in this organization?
2) What is your grade in this organization?
a) A ( ) (b) B ( ) ( c) C ( ) (d) D ( )

(e) E ( )

3) What was your Compensation Package before the commencement

of 9th Pay Commission?
a) Below 10,000( ) (b)10,000-20,0000(

) (c)20,000-30,000( )

d) 30,0000-40,000( ) (e) More than 40,000( )

4) Are you satisfied with your working condition in this organization?
a) Yes ( )

(b) No ( )

5) Are you satisfied with your payroll along with your working
condition?
a) Yes ( )

(b) No ( )

93

6) Do you think there should be a rise in salary package in this

organization?
a) Yes ( )

( b) No (

7) Do you think there should be implementation of 9th pay commission in

this organization?
a) Yes ( )

( b) No ( )

8) What was the reimbursement in your salary package after the

commencement of 9th pay revision?
a) 10% ( )

(b) 20%( )

(c) 30% ( )

( d) 40% ( )

(e) 50% (

)
9) Now are you satisfied with the payroll along with your working
condition after the commencement of 9th Pay Revision?
a) Strongly Dissatisfy ( )

(b) Dissatisfy (

(c) Neither Satisfy Nor Dissatisfy (

(d) Satisfy ( )

(e) Strongly Satisfy ( )

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