INTRODUCTION

Hindustan Petroleum Corporation Ltd. (HPCL) came into being in mid

1974 after the takeover and the merger of the erstwhile Esso and Lube India
undertakings. Caltex was taken over by the Government in 1976 and
subsequently merged with HPCL in 1978. Kosan Gas Company, the
concessionaires of HPCL in the domestic LPG market, was taken over and
merged with HPCL in 1979. HPCL thus came into being after merging four
different organizations at different points of time. As we approach the new
millennium, the Corporation too will be touching a significant landmark in its
illustrious history.... & has completed 25 years of fruitful existence on July 15,
1999.
HPCL operates two fuels refineries, one at Mumbai and the other at
Visakhapatnam. In addition, the Corporation also operates a Lube Refinery, which is the
largest in India and accounts for 41% of the country's capacity. Over the years, the
Corporation has grown rapidly and has carved its own niche in the Petroleum Sector
in India. It is clearly reflected in its impressive turnover of over Rs. 25,000 crores and
a 20% market share which is largely due to its vast and strategically located
Marketing & Distribution network comprising of 4 Zonal offices, 34 Regional Offices
(including 10 LPG ROs), 22 Terminals, 32 LPG bottling plants, 9 Aviation Stations, 4
lube blending plants and a lube pipeline for base oil evacuation from the Refinery, 90
Inland Relay Depots, 4327 retail outlets, 1622 SKO / LDO dealerships and 1463 LPG
distributorships. With an aim to reach and meet the requirements of its wide customer
base, the Corporation owns and Operates two cross - country pipelines; one from
Mumbai to Pune and the other from Vishakhapatnam to Vijayawada, put together have a
capacity to carry 7.77 million metric tonnes (MMT) of Petroleum Products. Our
Corporation has been consistently rated in the "Excellent Category" as per the MOU
evaluation, by the Government, for the past 7 years in succession.

For manning the refining and marketing divisions, the Corporation has a large and
skilled work force of more than 11,400 employees, working all over India at its various
refining and marketing locations with a fair degree of decentralized administration.
The marketing segment is controlled through four geographical zones, North, South, East
and West. The Chairman & Managing Director and the full time four Functional
Directors (Refineries, Marketing, Human Resources and Finance) are at the apex of
the Corporation.
The sweeping changes in the Indian Economy and the consequent fiscal
restructuring in the recent years have led to an increase in competition amidst other
challenges in the Petroleum Sector. HPCL has taken up to the challenges and is ready to
face the emerging competition in different areas of its operations. The projects
envisaged in the coming years encompass - modernization and expansion of the
existing refining capacity, strengthening its marketing infrastructure by setting new
terminals, depots, bottling plants with allied distribution facilities and emphasis on value
addition and improvement in the quality of its products. The Corporation also has made a
beginning in the area of Oil Exploration & Production

with the incorporation of

"Prize Petroleum Company limited", in Joint Ventures and also has plans to make
forays in the field of Power Generation.
Simultaneously, HPCL embarked on a Business Process Re- engineering (BPR)
exercise in early 1997. In keeping with the corporate strategy, the measures adopted as a
result of BPR study focus on increased customer orientation, productivity
improvement, technological up gradation, cost control and excellence in quality. This
coupled with the bringing in of the latest in Information Technology will enable the
Corporation to translate its vision into reality. The vision being to make HPCL a leading
world class company in the field of Hydrocarbon and energy related sectors with a global
presence.

Training and Development of individuals, groups and organizations is a

common practice of all societies. While in some instances these appraisal processes are
structured and formally sanctioned, in other instances they are an informal and integral
part of daily activities. Thus, teachers evaluate the performance of students, bankers
evaluate the performance of creditors, parents evaluate the behavior of their children, and
all of us, consciously of unconsciously evaluate our own actions from time to time. In
social interactions, performance is conducted a systematic and planned manner to achieve
widespread popularity in recent years.
This particular study has been named as "TRAINING AND DEVELOPMENT
IN HPCL-VR". The present study has been made to know the training and development
techniques conducted in HPCL-VR.

NEED forTHESTUDY
This particular study has been named as "EFFECTIVENESS OF
TRAINING PROGRAMS IN HPCL-VR". The present study has been made to analyze
the extent to know the employees attitude about the training programs conducted in
HPCL-VR.
It is of common knowledge that manufacturing industries of this scale
operate at condition of high labor and productivity. Such industries, which in that case
HPCL-VR has almost full utilization and cater to every sensitive and fluctuating
environment. In such conditions no firm that wishes to survive and prosper can
ignore the need for "EFFECTIVENESS OF TRAINING".

OBJECTIVES OF the STUDY

To study the existing training schemes in the organization.

To examine the employees perception towards training.

To obtain a detailed idea about the administration and evaluation training programs.

To suggest improvements in the administration of training programs of employees.

3

METHODOLOGY of the study

DATA
COLLECTION

PRIMARY DATA

SECONDARY DATA

1) Oral interview
with various
officials and per
employees of the
organization.
2) About 100
employees were
interviewed
through a
questionnaire

1) Information from
various
publications and
Journals.
2) Personal reports of
Visakh refinery.
3) From Internet

Source of data:

Primary Data:

The primary data is obtained through information

from various officials and staff, personnel
discussion.

Secondary Data:

This obtained

through

publications and various books in the library

internet,

records,

Limitations of the study:

The data opinions, observations and conclusions expressed here are

collected by survey and literature provided by Hindustan Petroleum
Corporation Limited, Visakh Refinery. Following are the few constraints faced
during the study.

1. As the employees of the organization are busy with their work

schedule, it was difficult to collect data.
2. One of the most limiting factors for a thorough and complete study
of the subject has been the inefficient period of study.
3. The survey was conducted on the sample based upon random
selection; random selection has its own defects.
4. Elaborate study was not possible due to lack of financial resources.
5. The size of the sample representing the universe is very small.

HPCL AN OVERVIEW, PROFILE OF OIL INDUSTRY

Where is Oil and Natural Gas found?
Most crude oil and natural gas originate form plant and animal life that thrived
millions of years ago in swamps and oceans. The organic materials were deposited with
mud and slit from streams and rivers the sediments eventually hardened to form
sedimentary rock. Heat and pressure transformed the fort part of the plant and animals
into solid, liquid or gaseous hydrocarbons known as fossil fuels (crude oil and natural
gas).

Crude Oil:
Crude oil is a naturally occurring liquid found in formations in the Earth
consisting of a complex mixture of hydrocarbons of various lengths like hydrogen,
carbon and non-metallic elements such as Sulphur, Oxygen, Nitrogen and other
gases. Any shorter hydrocarbons are considered Natural Gas, while longer hydrocarbon
chains are more solid, and the chains are coal. It is usually black or dark brown (although
it may be yellowish or even greenish) but varies greatly in appearance, depending on its
composition.

Exploration- The search for the Petroleum

Exploration is the act of searching or traveling for the purpose of discovery,
e.g., of unknown regions, for oil, gas, coal, etc., Petroleum is found in porous rock
formation in the upper strata of some areas of the Earth's crust. Earth scientists in the
Petroleum industry including Geologists, Geophysicists, Geochemists, Paleontologists
study the rocks which got buried thousands of meters below the surface, how these
rocks have been affected and transformed stretching back million of years to identify
'traps' with recoverable oil reserves. A trap is an oil reservoir, petroleum systems or
petroleum reservoir is often thought of as being an underground 'lake' of oil, but it is
actually composed of hydrocarbons contained in porous rock formations. Known
reserves of petroleum are typically estimated at around 1.2 trillion barrels.
6

Consumption is currently around 84 million barrels per day, or 31 billion barrels per
year. At current consumption levels, current known reserves would be gone in about
32 years, around 2039. However, this ignores any new discoveries, changes in
demand, better technology, population ingrowth, industrialization of third world
countries and other factors. While oil is expected to remain a major source of energy
in coming years, alternative energy development such as solar power, wind power,
butanol, ethanol, photovoltaic, nuclear power, hydrogen, or oil from oil shale, and oil
sands may increase in significance. Coal may also increase in use because of its
existence in vast quantities in rapidly developing countries, such as China and India.

The Birth of the Industry:

The petroleum industry operates on the petroleum market. Petroleum is vital to
nearly all other industries, if not industrialized civilization itself, and thus is of
critical concern to many nations. Oil accounts for a large percentage of the world's
energy consumption, ranging from a low of 32% for Europe and Asia up to a high of
53% for the Middle East. Other geographic regions consumption patterns are as
follows: South and Central America (44%), Africa (41%), and North America (40%).
The world at large consumes 30 billion barrels (4.8km 3) of oil per year, and the top oil
consumers largely consists of developed nations in fact, 24% of the oil consumed in
2004 went to the United States alone. The production, distribution, refining and
retailing of petroleum, taken as a whole represent one single largest industry in terms
of dollar value on earth.
Since the earliest record history, there have been accounts of crude oil and
natural gas seeping to the earth's surface. The oil was used to caulk boats and buildings,
grease wheels and dress the wounds of people and animals until the refining process
was done in the 1850's. Oil was not commonly used as fuel of its foul smelling fume.
Today the upstream of oil industry has grown to a great extent which includes more
than 1000 explorations and production companies as well as hundred of associated
business such as seismic and drilling contractor service and supply companies. The
midstream sector includes oil and gas pipelines that connect production and
7

consuming areas, other facilities extract sulphur and natural gas liquids, store oil and
gas products and transport by truck, rail or tanker.
The downstream sector consists of refineries gas distribution utilities oil product
wholesalers, service stations and petrochemical companies. The exploration of the oil
and natural gases are being done in countries like India, USA, Canada, UAE, Saudi
and Russia, parts of Europe, Africa, Australia, and South America.
High technology is being used in exploring the reserves, which include:

High-tech exploration enhanced recovery production method.

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

History of Oil and Natural Gas

Petroleum, in some form or other, is not a substance new in the world's history.
More than 400 years ago, according to Herodotus and confirmed by DiodorusSiculus,
asphalt was employed in the construction of the walls and towers of Babylon; there
were oil pits near Ardericca (near Babylon), and a pitch spring on zacynthus. 10 great
quantities of it were found on the banks of the River Issus, one of the tributaries of the
Euphrates.
The first oil wells were drilled in China in the 4th century or earlier. They had
depths of up to 243 meters and were drilled using bits attached to bamboo poles. The
oil was burned to evaporate brine and produce salt. Petroleum was known as 'Burning
Water' in Japan in the 7th century.
In the 8th century, the streets of the newly constructed Baghdad were paved with
tar, derived from easily accessible petroleum from natural fields in the region. In the

9th century, oil fields were exploited in the area around modern Baku, and Azerbaijan
to produce naphtha. The Geographer Masudi described these fields in the 10 th century
and by macro polo in 13th century, who described the output of those wells as hundreds
of shiploads. The earliest mention of American petroleum occurs in Sir Walter
Raleigh's account of the TrinidadPitchLake in 1595.
The modern history of petroleum began in 1846 with the discovery of the
process of refining kerosene from coal by Atlantic Canada's Abraham Pineo Gesner.
Russian Engineer F.N.Semyonov drilled the first modern oil well in 1848, on the
ApsheronPeninsulanortheast of Baku.
Meerzoeff built the first Russian refinery in the mature oil's fields at Baku in Baku
in 1861.

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

The American petroleum industry began with Edwin Drake's drilling of 69foot-deep oil well in 1859. The industry grew slowly in the 1800's driven by the
demand for kerosene and oil lamps. It became a major national concern in the early
part of the 20th century.
By 1910, significant oil fields had been discovered in Canada,
specifically in the province of Alberta. Petroleum production is a major industry in
Canada. In 2005, almost 25,000 new oil wells were spud (drilled) in Canada. Daily,
over 100 new wells are spud in the province of Alberta alone.

Origin of Oil and Natural Gas:

9

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

compression and heating of ancient organic materials over geological time. According
to this theory, oil is formed from the preserved remains of pre-historic zooplankton
and algae, which have been settled to the sea bottom in large quantities under anoxic
conditions. Terrestrial plants, on the other hand, tend to form coal. Over geological
time, this organic matter mixed with mud and is buried under heavy layers of
sediment. The resulting high levels of heat and pressure cause the remains to
metamorphose, first into a waxy material known as kerosene which is found in
various oil shale's around the world, and then with more heat into liquid and gaseous
hydrocarbons are lighter than rock or water, these sometimes migrate upward through
adjacent rock layers until they become trapped beneath impermeable rocks, within
porous rocks called reservoirs. Concentration of hydrocarbons in a trap forms an oil
field, from which drilling and pumping can extract the liquid.

Three conditions must be present for oil reservoirs to form:

.

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

heat to cook it into oils.

Second, a porous and permeable reservoir rock for it to accumulate

in and
Last, a cap rock (seal) that it forms escaping to the surface.

Birth of Oil Industry:

Since the earliest times, there have been instances of crude oil and natural gas
seeping to earths surface. The oil was used to caulk boats and buildings, grease
vehicles and dress the wounds of people and animals until refining process emerged in
1850s. The worlds first oil refinery opened at Ploiesti, Romania in 1856. Several other
refineries were built at that location with investment from United States companies.
The Guinness Book of World Records now (October 2006) records the BP
Amoco Refinery in Texas city, USA as a refinery with the largest capacity (43,300
barrels per day which is approx. 15,100,000 imperial Gallon).

10

Major sectors of Oil Industry

The oil industry is often divided into three major sectors:
Upstream Sector: This includes the searching for potential underground or

underwater oil and gas fields, drilling of exploratory wells, which brings crude
oil and raw natural gas to the surface.
Midstream Sector: This sector process stores, markets and transports
commodity such as crude oil and natural gas liquids such as ethane, propane
and butane.

Use of Oil and Natural Gas:

Humans have utilized petroleum in an unrefined state for over 5000 years.
Ancient Persian tablets indicate the medicinal and lighting uses of petroleum in the
upper echelons of their society. Ancient Chinese were also known to burn skimmed oil
for light
The early 19th century ushered in petroleum's usefulness as a medicine and
lubricant; other successful uses including lighting and heating. A petroleum industry
emerged in North America in Canada and the United States, fueling the Industrial
Revolution. Petroleum products are useful materials derived from crude oil
(petroleum) as it is produced in oil refineries.
According to crude oil composition and demand, refineries can produce different
shares of petroleum products. Largest share of oil products is used as energy carriers,
various grades of fuel oil and gasoline. Refineries also produced other chemicals, some
of which are used in chemical process to produce plastic and other useful materials.
Since petroleum often contains a couple of percent sapphire, large quantities of sulphur
are also often produced as a petroleum product. Hydrogen and carbon in the form of
petroleum coke may also be produced as petroleum products. The hydrogen produced
is often used as an intermediate product for other oil refinery processes such as
hydrogen catalytic cracking (hydro cracking) and hydrodesulphurization. Major Products
of Oil Refineries

11

 Asphalt
Diesel fuel
Fuel oils

Gasoline

Kerosene
Liquid petroleum gas
Lubricating oil
Paraffin wax

Origin of Oil Industry InIndia

India's first Prime Minister Jawaharlal Nehru, prior from 1947 to 1964, saw
industrialization as the key to alleviating poverty.Industrialization not only promised
self-sufficiency for our nation that had just regained political sovereignty, but also
offered external economies accruing from technical progress. The result of appointing
and spending million of rupees for industrialization in our five-year plan right from 2nd to
8th is the high level expertise we will be in direct competition with America and
European Union for oil and natural gas from all over the world specially Middle East.
The bottom line is that whoever gets to use the oil, will grow faster and eventually
dominated the world. The DigboiRefinery was set up as Digboi in 1901 by Assam oil
Company Limited, which was taken over by Indian Oil Corporation Ltd., with effect
from 1981. Over a decade following Independence, various Multinational Companies
have set up the following three Refineries in India:
Standard Vacuum Oil (international) in Mumbai.
Caltex Oil Refinery Ltd., at Visakhapatnam.
Burma Shell at Mumbai.
From 1961 onwards various other refineries were set up at Barauni, Koyali, Chennai
and Cochin. Corresponding to a steep hike in Oil prices influenced by Gulf Oil
producing countries in 1973, Government of India took a policy decision to nationalize
the Oil Sector keeping in view the economic interest of the country. This has resulted
in formation of Hindustan Petroleum Corporation Limited (HPCL) by amalgamating
the assets of ESSO Oil Company and its market activities.

12

Industry Structure:
The Ministry of Petroleum & Natural Gas (MOP&NG) is entrusted with the
responsibility of exploration and production of oil and natural gas, their refining,
distribution and marketing, import, export and conservation of petroleum products
and liquefied natural gas. Director General of Hydrocarbon (DHG), Oil Industry
Development Board and Petroleum Planning and Analysis Cell support the Ministry.
The following are the activities of MOP&NG in Oil Industry Sector:

Exploration and exploitation of petroleum resources, including natural gas.

Production, supply, distribution, marketing and pricing of petroleum
including natural gas and petroleum products.
Oil refineries, including lube plants.
Additive for petroleum and petroleum products.
Lube blending and greases.
Planning, development and control of and assistance to all industries
dealt with any of the subject specified in this list.
Planning, development and regulation of oilfield services.

A lion's share of 84% of Exploration and Production of Crude Oil and Natural Gas
is from two major viz., Oil and Natural Gas Corporation (ONGC) and Oil India
Limited (OIL) while the Refining Sector is dominated by PUS's like Indian Oil
Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL)
Bharat Petroleum Corporation Limited (BPCL) Chennai Petroleum Corporation
Limited (CPCL) Kochi Refineries Limited (KRL) in refining and marketing various
Petroleum Fuels. Marketing of Petroleum Products has undergone a sea change with
abolition of administered pricing mechanism since April 1 st 2002 except for Kerosene
and Liquid Petroleum Gas. In addition, the Oil Companies are given free hand to fix
their own prices to get benefit from the competitive edge.
India annually consumes about 3% of the world's total energy. The country is
the world's 6th largest energy consumer and is in fact a new energy importer. There
has been a gap between supply and availability of petroleum and petroleum products
in India.
Over the last 15 years or so, the demand for petroleum products as risen at an
average rate of about 60%. The current requirement of crude oil in the country stands
13

at around 112 MMT and this is likely to increase to about 190 MMT by 2011-12.
Fuel oils presently up the majority of India's refinery output. Total refined product
output from India's refineries has risen about 60% in the past decade.

14

Using Oil and Natural Gas:

During the refining of the petrochemicals, wide range of petroleum molecules
comes in a wide variety of size and shapes strings and rings of carbon and hydrogen
atoms. The methane in natural gas is the simplest and smallest. By comparison the
molecules in paraffin wax and asphalt are complex and enormous. The hydrocarbon
molecules are sorted, split apart, reassembled and blended in refineries and
petrochemical plants. There, they become magnitude of products from gasoline to
synthetic rubber.

Averistic Energy Source:

The petrochemicals industry exists because the people have become
accustomed to the benefits of oil product and natural gas provides benefits like
convenient, affordable transportation, warm houses and thousands of synthetic
materials.
India annually consumes about 3% of the world's total energy. The country is
the world's 6th largest energy consumer and is in fact a new energy importer. There
has been a gap between supply and availability of petroleum and petroleum products
in India.
Over the last 15 years or so, the demand for petroleum products as risen at an
average rate of about 60%. The current requirement of crude oil in the country stands at
around 112 MMT and this is likely to increase to about 190 MMT by 2011-12.
Fuel oils presently up the majority of India's refinery output. Total refined product output
from India's refineries has risen about 60% in the past decade.

15

Major Players in Indian Oil Industry:

1)
2)
3)
4)
5)
6)
7)
8)
9)

Indian Oil Corporation Limited.

Hindustan Petroleum Corporation Limited.
Bharat Petroleum Corporation Limited.
Madras Refinery.
Bongaigaon Refinery and Petrochemical Limited.
Cochin Refinery.
Numaligarh Refinery Limited.
Mangalore Refinery Limited.
Reliance Petrochemicals Limited.

PROFILE OF THE ORGANIZATION

16

History:
Hindustan Petroleum Corporation Limited (HPCL) has been formed through
amalgamation of four established companies. Gradually, it has grown today as a
second largest integrated Oil Refinery and Marketing Company in India. Merge of
ESSO, Lube India Limited, Caltex Oil Refining India Limited and Kosan Gas Company
Limited incorporated HPCL

Incorporation:
The company was first incorporated as Standard Vacuum Refining
Company of India in July 1952 and later named as ESSO India Limited from March
1962. On July 12 th, 1974 when ESSO and Lube India were nationalized, the company
was renamed as HPCL with effect from July 15 th, 1974. Subsequently, Caltex was
nationalized by Government of India and merged with HPCL in 1978. In the
following year, the undertakings of Kosan Gas Company Limited, the
concessionaries of HPCL in the domestic LPG market, were merged with HPCL.
Hence, HPCL which is as amalgamation of various undertakings has been growing
by leaps and bounds.

Growth:HPCL had started its journey in a humble way in 1974 with one Refinery in
Mumbai with a refining capacity of 3.5 million metric tones per annum (MMTPA)
and a Lube Refinery at Mumbai around 1.65 lakh metric tones per annum and a slender
sales turnover of Rs. 36.7 croresand a net profit of Rs. 5.8 crores. But, with a
dedicated and efficient team of employees and a flawless and growth-oriented
strategy of Top Management, HPCL could succeed in achieving Navaratna Status in
Industry apart from spreading its wings both within and outside the country by
meeting class standards in Refining and Marketing

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

after the takeover and merger of the Erstwhile ESSO and Lube India undertakings. Caltex
was merged with HPCL in the domestic LPG market was taken over and merged with
HPCL in 1979. HPCL is a listed Public Sector, India's second largest oil refining and
17

accounts for more than 20% of the country's total refining capacity. It is one of the
'Navaratnas' identified by the Government of India as having potential to grow into a
global giant. Its shares are one of the 30 shares forming BSE sensex. It has 85 Regional
Offices, 37 Terminals/Tap of points, 92 Depots, 41 LPG Bottling plants and 7,313
Retail Outlets, 1,648 Kerosene Dealers, 2,202 LPG Distributors.
The corporation made a successful IPO in two stages during 1995 & 1997 and
its share holding pattern is as follows:
GOI

51.01%
Financial Institution - 21.49%
Fll's-11.05%
Banks-1.73%
MF's - 3.92%
NRI's - 0.37%
Employees - 0.35%
Public-10.08%
The HPCL Group presently consists of HPCL, its 100% subsidiary, Guru

Gobind Singh Refineries Limited and interests in seven joint ventures, Mangalore
Refineries and Petrochemicals Limited (19.95%), Prize Petroleum Corporation
Limited (50%), South Asia LPG Company Private Limited (50%), Hindustan Coals
Limited (50%), Petronet India Limited (16%), Peronet MHB Limited (26%),
Bhagyanagar Gas Limited (25%). During the year ending 31 st March, 2006 the
turnover was Rs.76,90crores registering an increase of 18% over 2004-2005 after Tax
was Rs.406 crores.

Refineries:
HPCL has two refineries. On the west coast is the Mumbai Refinery with a
capacity of 5.5 millions metric tones per annum, while the other at Visakhapatnam on
the east coast has a capacity of 7.5 millions metric tones per annum.

18

Both the refineries produce a number of value added products like petrol, high
speed diesel oil, superior kerosene oil liquefied petroleum gas, naphtha, aviation
turbine fuel and others over 300 grades of Lubes, specialties and greases.

Marketing:
The marketing operations of HPCL are divided into three Strategic Business
Units, Retail comprising of Petrol, Diesel and Automotive Lube sales, Direct Sales
comprising of Lubes and Industrial & Government sales and LPG.

Storage and Distribution:

HPCL has a extensive nation wide network comprising of pipe lines, terminals
and depots for the storage and distribution of petroleum products across the
country.

HPCL VISION:
"To be a World Class Company known for caring and delighting the customers
with high quality products and innovative services across domestic and international
markets with aggressive growth and delivering superior financial performance. The
company will be a model of excellence in meeting social commitment, environment,
health and safety norms and in employee welfare and relations".

HPCL MISSION:
"HPCL, along with its joint ventures, will be a full integrated company in
hydrocarbons sector of exploration and production, refining and marketing
focusing on enhancement of productivity, quality and profitability, caring for
19

customers and employees, caring for environment protection and cultural heritage. It
will be also attaining scale dimensions by diversifying into other energy related
fields and by taking up transnational operations".

Corporate Values or Objectives:

Consistently provide top quality products with prompt and efficient services
to ensure satisfaction.
Be cost effective and emphasize on high productivity and profitability.
Expedite redressal of employees, customers and shareholders grievances.
Motivate employees for professional and social advancement at all levels in a
participative environment.
Develop capabilities and

enhance

effectiveness

of employees through

training and career planning.

Reward share holders with consistent good returns.

HR VISION:
"Excellence in harnessing the full potential of the employees for becoming a
Global Energy Company".

HR MISSION:
"Your needs are our Business."

HR SPIRITS:

Satisfaction of Customers

Pride

Integrity

Role Model

Involvement and Commitment

Transparency

Spirit of Team Work

20

HPCL recruits its Management Staff by way of Officer Trainees through

advertisement in national newspapers on all Indiabasis. The recruitment process
consists of written test, interview and group discussion. The candidates preferred for
selection for Operations are from Engineering field (Chemical, Mechanical, Civil,
Electrical and Instrumentation), for finance, charted accountants and campus selection
for Operations and HR officers from NT's and IIM's respectively.
The recruitment for Non-Management staff in both technical and administrative
fields is done based on the eligible candidates recommended by the local
employment offices.

HUMAN RESOURCES IN HPCL

HPCL recognizes its Human Resources as the key to achieve organizational
excellence and a glaring identity in the competitive global arena. HPCL, with its
Refineries in Mumbai and Visakhapatnam, zonal offices in Delhi, Mumbai, Kolkata,
21

and Chennai, Terminals, Depots and regional offices in four corners of the country
successfully runs its business in refining, marketing and distribution of petroleum
products to both industrial sector as well as domestic sector. It has a wide network of
retail dealership and LPG distributorships through which it supplies various light
distillates like petrol, diesels, and LPG along with auto lubes to serve the day-to-day
needs of its valued customers. These activities are carried out by its 11,300
employees (approx.) who serve the corporation at managerial, clerical and worker
level, in order to enrich the skills of several employees in fields IT, Technical,
Safety, Management, Behaviors and office administration. HPCL conducts regular
training programs as its own management training institutes at NIGDI, Pune apart from
engaging external agencies for the purpose. HP team is headed by chairman &
managing director at the helm of affairs with the four reporting directors Viz., human
resources, marketing, refineries and finance.

HUMAN RESOURCE PLANNING IN HPCL

Manpower:
The total manpower in HPCL - VR as of 1 st April 2010 is 1154.
22

Manpower is classified into two categories:

(a) Management
(b) Non-management
Number of management employees

- 492

Number of non-management employees

- 662

Manage are represented by grades A to I.

ment
A Grade

B Grade

Officers, Engineers, Superintendents

Senior Officers, Senior Engineers,
Senior Superintendents

C Grade

Deputy Manager

D Grade

Managers

E Grade

Senior Managers

F Grade

Deputy General Manager

H Grade

General Manager

I Grade

Chief General Manager

HPCL VISAKH REFINERY

HPCL Visakh Refinery was commissioned in 1957 as Caltex Oil Refining

Limited (CORIL). It was first oil refinery on the East Coast and the first major industry in
23

the city of Visakhapatnam, Andhra Pradesh. The installed capacity of the refinery was
0.65 Million Metric Tones Per Annum (MMTPA) IN 1957. CORIL was taken over by
Government of India and merged with expanded in phased in phased manner over the
years.
Visakh Refinery is Fuel Based refinery generating major products of mass
consumption like petrol, Diesel and Kerosene. Hence, crude meeting General Purpose
Characteristics can be processed with the existing refinery configuration. Visakh refinery
has flexibility to process wide range of crude procured across the globe and ranging from
very high sulfur to low sulfur and non bituminous category to Bituminous and nonbituminous category to Bituminous and Lubes bases crudes.
Visakh Refinery consists of three crude / vacuum distillation Units, one with a
capacity of 1.5 MMTPA and other two having a capacity of 3.0 MMTPA each. Fluid catalytic
cracking unit has been provided as a secondary processing unit. There are two FCC units with
a capacity of 0.4 MMTPA and 0.95MMTPA (after Revamp) respectively. This is the only one
of two refineries in India with two FCCUs. Besides these, the refinery has Propylene Recovery
Unit (0.023MMTPA Capacity). Bitumen Blowing Unit (0.225MMTPA Capacity) and various
product-treating units.

The product quality standards with respect to sulfur content have been made more
stringent of late. To meet these new standards a Diesel Hydra-De- sulphurisation Unit
(DHDS) has been set up in the refinery at an approximate cost of Rs.794 crores. The
commissioning of DHDS facilities is in progress.
The various process units of Visakh Refinery have been provided by leading
process licensors / technology suppliers. Visakh Refinery was among the first in India to
have digitals controls for refinery operations and advanced controls were added later on
to the existing units to facilitate accuracy in tank gauging along with optimization /
improvement in product blending. The project, is first of its kind in India has recently
been implemented in Mumbai refinery of HPCL.

24

The performance of Visakh Refinery has been excellent in the past in all relevant
areas like distillate production, R&D, specific energy consumption etc. the fire incident
in September 1997, gave a temporary set back to the refinery operations, which has been
over come in a short period by the concerted efforts of all the employees. The refinery
has been reconstructed and the output levels in the years 1999-2000 was 4.55 Millions
tons.
Visakh Refinery attaches utmost importance to conservation of energy by regular
monitoring and analysis of fuel and utilities consumption, optimizing plant operations
and proper maintenance up keep of plant and machinery. The refinery has own national
energy conservation awards. Various energy conservation projects like efficiency
furnaces. Captive power plant, CDU / CTU integration, co Boiler, OM&S Automation,
improved Preheat Recovery etc. with a total investment of Rs. 214 crores have been
implemented.
The fuel and loss for Visakh Refinery for the year 1999-2000 was 5.4 wt % on
crude as against the target of 6.8 wt %. The specific energy consumption was 140.2
MBTU / BBL / NRGF, which is the lowest ever.
Concern for environment has always been a way of life at Visakh Refinery ever
since it went on stream in 1957. Over the years the refinery has invested large amounts in
various projects to meet the stringent emissions and discharges norms applicable to the
refinery. There are two Effluent Treatment Plants for treating wastewater to MINA's
standards before discharge to the sea. Sulphur Recovery Unit based on state-of the-art
locate-n technology was commissioned in 1994 to reduce sulphurdioxide emissions from
the refinery. These measures ensure that the impact of refinery operations on the
surrounding environment is minimal.
Visakh Refinery has always kept in mind its responsibility towards the society at
large, especially the weaker sections. Two tribal villages near Visakhapatnammanyapalem and Itchapuram have been adopted with the aim of uplifting them and
making them self-reliant. Various activities medical camps, adult/children education has
been undertaken. Manyapalem has already achieved 100% literacy. A school building
25

has been constructed at Itchapuram for primary education. The refinery has also
distributed high yielding varieties of coconut and fruit saplings. To supply drinking
water, bore wells have been dug and water storage in Manyapalem.
Safety of both man and machine has to be given the utmost attention in any
industrial context. Visakh Refinery has received a number of awards given by various
national and international agencies for the excellent safety track record of the refinery.
The refinery is equipped with a firewater network, which is kept pressurized around the
clock to handle emergencies arising during operations. There is a separate Fire &safety
department manned by qualified with the relevant equipment.

Rect Sales /Di Lubes:

HPCL's Lube Blending plant at Silvassa (phase-1, with a capacity of 600KL/
month) was commissioned in December 1999 within a record completion period of 4
months. HPCL has made a foray into international marketing by appointing Distributors
at NEPAL, Sri Lanka, Bangladesh and Malaysia. HPCL achieved an export of Rs.1.5
crores to Nepal. Keeping in view the changing customer preferences, HPCL has
strengthened its presence in the bazaar trade with commissioning of 51 new
Distributorships. Environment friendly 2-stroke engine oil-'Racer-2' has already become
the second largest selling brand in its category while, Lai Godha', an optimized diesel
engine oil has Become the largest selling lubricant in its category. 7 new automotive
products and 14 new industrial lubricants were introduced to meet specific applications.
The household insecticide brand 'Finite' was re- launched and notched a growth
of 67%. HPCL is the only Oil Company with a presence in this business line.

LPG:
During the year 3 new LPG Bottling plants with a total capacity of 112 TMTPA
were commissioned at Madhurai, Pampore and Usar (phase2) and also augmentation of an
existing plant by 18TMTPA were completed. The new plant at USAR is the first HPCL
26

unit to have safer Mounded to range for LPG. A portable filling plant was commissioned at
Banaskantha in Gujaratfor meeting rural market requirements. The overall capacity
utilization of LPG plants during the year was over 100%.

Pipeline:
Mumbai-Pune pipeline achieved a output of 3.58 MMT (against MOU
'Excellent' target of 3.50 MMT) and Visakha-Vijayawada pipeline achieved an output of
2.60 MMT (against an MOU 'Excellent' target of 1.50 MMT). The VisakhaVijayawada PIPELINE EXTENSION UP TO Secunderabad at a cost of Rs.377.55
crores was approved during the year and the same is under implementation.

Depots / Terminals:
During the year 6 new POL depots /terminals with a tank age of 63700 KL at
Balasore, Panewadi (Manmad), Bekutchi, Tirunelveli, Kappalur (Madhurai) and
mavallur(Hudli). Additional tanker of 352550 KL at locations was completed.
As part of our pursuit of quality assurance they have obtained ISO9002
accreditation for select Bottling Plants, product Pipelines, retail Outlets and Lube
plants.

RECENT TRENDS:
Visakh Refinery is in the process of establishing Environmental Management
System (EMS) for its operating complex and to get it certified by the ISO 14001
standards.
Organizational Environmental Policy has been issued; objectives, targets and
Environmental management programs are finalized. The system has been documented
and the implementation of the system is in progress. Visakh Refinery has plans to
upgrade the configuration of its facilities in order to achieve product value addition &
produce environmental friendly fuels conforming to the Euro III & Euro IV norms
with mega project of CFP (Clean Fuels Project) with a cost of rupees 2000 corers.
Efforts are being made to appoint a suitable consultant for carrying out a study for this
27

purpose. Visakh Refinery plans to bring about rapid improvement in its environmental
&safety performance. Over the next 5 years the Refinery aims to become a zero effluent
installation. Initiative has been taken to completely develop the safety function, which
was made exclusively under the PS&E Division of the TSD. Also efforts are on to
establish a certified Safety Management System in the Refinery.

Supporting Facilities for the Process Unit:

Crude Receiving Facilities
An Off Shore Tanker Terminal (OSTT), located at the outer harbor is used to
unload crude oil tankers and transport it to the refinery by a dedicated 36" crude oil line
of approx. 8.5 KM. The entire unloading berth has an effective fire fighting system
with remote operated monitors and sprinklers.
Other Activities:
HPC1 - Visakh Refinery has made rapid progress in the area of Hazardous Solid
Waste Management, which is an issue of serious environmental concern. It has already
made successful pioneering efforts in the area of oily sludge processing. To develop
a sustainable and environmental sound strategy for long-term management of
hazardous solid wastes, the Refinery has entered into an agreement with EPTRI,
Hyderabad and VA-Project, Sweden for preparing an "Integrated Hazardous Solid
Waste Management Plan". This is the first initiative of its kind by an Indian Refinery.
The plan is aimed at creating a technically viable and environmentally sound system
for the management of every hazardous solid waste generated in the Refinery.

Joint Ventures:
Mangalore Refinery:
The corporation's first joint venture, the Mangalore refinery and petrochemicals
Ltd. Formed in association with the Aditya Birla Group has achieved a milestone by
28

expanding the Refinery's capacity from 3 MMTPA to 9MMTPA during September 1999,
three months ahead of schedule in spite of carious difficulties and constraints like
undulating terrain of the site and heavy monsoon.

Punjab Refinery:
Preliminary activities for HPCL's proposal to set up a 9MMTPA Refinery at
Bathinda, in the state of Punjab, are in progress Environmental clearance for the
project including for the linked project Crude oil terminal at Mundra in Gujarat have been
received. In a bid to select a joint venture partner for the project, a confidentiality
Agreement has been signed with M/s Total Fina ELF for the same. HPCL Board has
approved commencing the project as its own project and subsequently include joint
Venture partner, have so required.

Mangalore - Bangalore Product Pipeline:

AJV subsidiary company M/s Petro net MHB Ltd. has been incorporated for
implementation of 364KM long product pipeline from Mangalore to Bangalore.
However, the project has not secured financial closure by M/s. Petro net Nevertheless.
HPCL is going ahead with placement of various orders for implementation of the
project in order not to impede the progress.

LPG Infrastructure Project:

A joint venture company M/s. South Asia LPG company Pvt. Ltd has been
incorporated with equal equity participation from HPCL & M/s total Fina S.A. France for
construction of LPG cavern storage of 60000 MT for receipt of LPG imports at Visakh.
This would be the first and largest of its kind in India.

Visakh Power Project:

Selection of technical partner for HPCL's joint venture project with APGENCO
for setting up a Refinery -residue based 500 MW Power Plant at Visakh, at an estimated

29

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

Bitumen Emulsion:
Hindustan Colas, HPCL's Bitumen Emulsion Company under joint venture with
M/s. colas S.A. of France, is operating with plants at Vashi, New Mumbai and
Bahadurgar, near Delhi. Its third plant near Chennai was commissioned during the year.

THEROTICAL FRAME WORK OF THE STUDY

Effectiveness of Training and Development
30

Training is the corner stone of sound management fortes makes employees more
effective and productive. It is actively and intimately connected with all personnel and
managerial activities.
The need of training is to develop specific and useful knowledge, skills and
techniques. It is intended to prepare people to carry out predetermined tasks in welldefined job contents. Training is basically task-oriented activity aimed at improving
performance for future jobs. So, the topic of training is selected in personnel
management.
The efficiency of any organization depends directly on how well it's members are
trained. Organization that value learning are the once that will succeed. As it is said
"Not only will the global market will learning it will severely punish the lack of
learning.
The need of the organization to constantly learn and grow is stronger than
before. The growth is underlined with a sense of ethics and valued is what will mean
corporate growth in the real sense of the world. Indeed, the answer to efficiently manage
change from such a culture that is rooted at constantly evolving.
The creating of such a learning culture crones over a period of time and with an
active participation of all employees in the organization. Training alone need
translate into a learning experience. It's the amalgamation of ideas that generate
innovative solutions and spells success.
Development encompasses the whole complex process by which employee as
individual grow learn improve their abilities to perform a wide variety of roles with in
the organization and acquire socially desirable attitudes and values. Management
development is aimed at improving once abilities to perform professional management
tasks. Participation in formal training or educational programs in an integral part of
over all management developments, which in turn lead to the organizational
development.

31

The root cause is ineffectiveness and the desired comment lies in the attitude
of the person or the employee ho is sent for training. The management has to find out his
attitudes of the employee. He should not feel that "The management has sent me for
training I will undergo for it; because management wants it .1 am not interested in it".
Such an attitude results the trainee entering the training program in a frame of
mind , where it the trainer's responsibility to push the knowledge an skill into the
trainee, while they merely under take the responsibility of evaluating he trainer, on how
successful he or she is pushing the learning .
As long as the responsibility for learning is to be outside him or herself,
success in training is very difficult. To train the trainee by pushing the knowledge into
him needs really skilled trainers, who are expensive and always in short supply.
The remedy is simply training have to be converted from the push system
that they are at the present to pull systems. It, within the participant, a desire can
be created to learn because he or she wants it, rather than the company wants it, then
the training program is assured of success. Eliciting responses from employees
through questionnaires about how they feel about their jobs, work groups. Supervisors of
the organization are defined as "Attitude Survey".
In organization context, most of the attitudes management would seek to inquire about be
ones with which employees have some experience. . I f the attitude in questions are
specifically stated, management should obtain information that is valuable in guiding
there decisions relative to these employees. But he does the management get
information about employee's attitude? The most popular methods are through the use
of attitude survey

DEFINITIONS:
"The learning experiences which are mainly concerned with actual
performance" Training is a systematic process to increase the knowledge and improve

32

the skills of people performing various specialized parts is the over all task of the
enterprise.
The purpose of training and retaining is to bring skills of individuals up to desired
standard for present and future assignments . In a more general sense, training improves
the skills and provides knowledge and information for carrying out various specialized
assignments, in the total work of the enterprise.
No organization can choose to train or not to train the employees the only choice
with the firm is that of the method to employ.
All types of jobs require some type of training for their efficient performance and
therefore all the employees new or old should be trained in terms of job security and
great opportunity for advancement, skills thus obtained by the employees through
training is an asset to the organization and the employer. Thus establishing a sound
training program is necessity for every organization for the development of the
personnel.
"Training is a process of learning a sequence of programd behavior"

NEED FOR TRAINING

Training is required on account of the following reasons:

JOB REQUIREMENTS:
Employees selected for the job might lack the qualifications required to perform
the job effectively. New and inexperienced employees require detailed instructions for
effective performance on the job. In some cases, the past experience, attitudes and
behavior pattern of experienced personnel might be in appropriate to the new
organization. Remedial training should be given to such people to match the needs of
the organization. New employees need to provide orientation training to make them
familiar with job and the organization

33

TECHNOLOGICAL CHANGES:
Technology is changing very fast. Now automation and mechanization have
been increasingly applied in offices and service sector. Increasing use of fast changing
techniques requires training the new technology. For instance, staff in public sector
bank is being trained due to computerization of banking operations. No
organization can take advantage of latest technology without well trained personnel.
New jobs require new skills. Thus, both new and old employees require training.

ORGANISATIONAL VIABILITY:
In order to survive and grow an organization must constantly adopt itself to the
changing environment with increasing economic liberalization and globalization in
India, business firms are experiencing expansion, growth and diversification. In order
to face international competition, the firm must upgrade their capabilities. Existing
employees need refresher training to keep them abreast of the new knowledge.
Training programs foster the initiative and creativity of employees and help to prevent
obsolescence of skills. An organization can build up a second line of command
through training in order to meet its future needs for human resources. Trained staff is
the most valuable asset of a company.

INTERNAL MOBILITY:
Training becomes necessary when an employee moves from one job to another
due to promotion and transfer. Employees chosen for higher-level jobs need to be
trained before they are asked to perform the higher responsibilities. Training is widely
used to prepare employees for higher level jobs.
Thus there is an even present need for training people. So that new and changed
techniques may be taken advantage and improvement in old methods are affected.
Need for training has increased due to growing complexity, of jobs, increasing
professionalisation of management growing uncertainties in the environment,
growing aspirations, vast untapped human potential , ever increasing gap between plans
and results and sub optional performance levels.
34

IMPORTANCE OF TRAINING
A well planned and well executed training program can provide the following
advantages.

HIGHER PRODUCTIVITY:
Training helps to improve the level of performance. Trained employees can
perform better by using better methods of work improvements in manpower
productivity is developed nations can be attributed in no small measure to their
educational and industrial training programs.

BETTER QUALITY OF WORK:

In formal training, the best methods are standardized and taught to employees.
Uniformity of work methods and procedures help to improve the quality of product or
service. Trained employees are less likely to make operational mistakes.

LESS LEARNING PERIOD:

A systematic training program helps to reduce the time and cost involved in
learning. Employees can more quickly reach the acceptable level of performance.
They need not waste their time and efforts in learning through trail and error.

COST REDUCTION:
Trained employees make more economical use of materials and machinery.
Reduction in wastage and spoilage together with increase in productivity help to
maximize cost of operations per unit. Maintenance cost is also reduced due to fewer
machine breakdowns and better handling of equipments plant capacity can be put to
the optimum use.

REDUCED SUPERVISION:

35

Well-trained employees tend to be self-reliant and motivated. They

needless guidance and control. Therefore, supervisor burden is reduced and the span of
supervision can be enlarged.

LOW ACCEDENT RATES:

Trained personnel's adopt the right work methods and make use of the
prescribed safety devices. Therefore, the frequency of accident is reduced. Health
and safety of employees can be improved.

HEIGH MORALE:
Proper training can develop positive attitudes among employees. Job
satisfaction and morale are improved due to arise in the earnings and job security of
employees.

Training

reduces employee grievances because opportunities for

internal promotion are available to ell trained personnel.

PERSONAL GROWTH:
Training enlarges the knowledge and skills of the participants. Therefore, well
trained personnel can grow faster in there career training prevents the obsolescence of
knowledge and skills. Training helps to develop people for promotion to higher posts
and to develop future managers.

ORGANISATIONAL CLIMATE:
A sound training program helps to improve the climate of an organization.
Industrial relations and discipline are improved. Therefore, decentralization of
authority and participative management can be introduced. Resistance to change is
reduced. Organizations having regular training programs can fulfill their needs for
personnel from internal sources. Organizational stability is enhanced because training
helps to reduce employee turnover and absenteeism. Training is an investment in
people and, therefore, systematic training is a sound business investment. In fact,
"No organization choice left to management is whether training shall be

36

haphazard, casual and possibly misdirected or whether it shall be made a carefully

planned part of integrated program of personnel administration".

BENEFITS OF TRAINING TO EMPLOYEES:

Training is useful to employees in the following ways

SELF CONFIDENCE:
Training helps to improve the self-confidence of an employee. It enables him to approach
and perform his job with enthusiasm.

HIGHER EARNINGS:
Training helps the employees to perform in a better way and there by earn
more.

SAFETY:
Training helps an employee to use various safety devices. He can handle the
machines safety and become less prone to accidents.

ADAPTIBILITY:
Training enables an employee to adapt to changes in work procedures and
methods.

PROMOTION:
Through training employee can develop himself and earn quick
Promotions.

NEW SKILLS:
Valuable assets of an employee and remain permanently Training develops new
knowledge and skills among employees. The new skills are with him.
37

TYPES OF TRAINING:
Training is required for several purposes accordingly training programs may be of
the following types.

ORENTATION TRAINING:
Induction or orientation training seeks to adjust newly appointed employees
to the work environment. Every new employee need to be making fully familiar with his
job, his superiors and subordinates and with the rules and regulations of the
organizations. Induction training creates self-confidence in the employees. It is also
known as per-job training it is brief and informative.

JOB TRAINING:
It refers to the training provided with a view to increase the knowledge and
skills of an employee for improving performance on the job. Employees may be
taught the correct method of handling equipment and machines used in a job. Such
training helps to reduce accidents, waste and inefficiency in the performance of the
job.

SAFETY TRAINING:
Training provides to minimize accidents and danger to machinery is known
as safety training. It involves instructions in the use of safety devices and in safety
consciousness.

PROMOTIONAL TRAINING:
It involves training of existing employees to enable them to perform higherlevel jobs. Employees with potential are selected and they are given training before
their promotions so that they do not find it difficult to shoulder the higher
responsibilities of the new positions to which they are promoted.

38

REFRESHER TRAINING:
When existing techniques become obsolete due to the development of better
techniques, employees have to be trained in the use of new methods and techniques
with the passage of time employees may forget some of the methods of doing work.
Refresher training is designed to revive and refresh the knowledge and to update the
skills of the existing employees; short term refresher courses have become popular
on account of rapid changes in technology and work methods. Refresher or re-training
programs are conducted to avoid obsolescence of knowledge and skills.

REMEDIAL TRAINING:
Such training is arranged to overcome the short-comings in the behavior and
performance of old employees. Some of the experienced employees might have picked
up appropriate methods and styles of working. Such employees are identified and
correct work methods and procedures are taught to them. Remedial training should be
conducted by psychological experts.

39

A SYSTEMATIC APPROACH TO TRAINING

TRAINING OBJECTIVES:
Generally line managers as the personnel manager, formulate the training
policies. The personnel manager formulates the following training objectives in
keeping with the company's goals and objectives.
A) To prepare the employees both new and old to meet the present as well as the
changing requirement of the job and the organization.
B) To prevent obsolescence.
C) To prepare employees for higher level tasks.
D) To assist employees to function more efficiently in their present position by
exposing them to the latest concepts, information and techniques and developing
the skills theyneed in their particular fields
E)
To build up a second line of competent officers and prepare them to occupy
more responsible positions.
F)
To develop the potentialities of people for the next level job.
G) To ensure smooth and efficient working of a department
H) To ensure economic output of required quality.
I) To promote individual and collective morale, a sense of responsibility, cooperative attitudes and good relationships.

PRINCIPLES OF TRAINING:
Providing training in the knowledge of different skills is a complex
process. A number of principles have been evolved which can be followed as
guidelines by the trainers some of them areas follows

MOTIVATION:
As the efficiency of an employee depends on how well he is motivated by the
management, the effectiveness of learning also depends on motivation. In other
words, the trainee will acquire a new skill or knowledge thoroughly and quickly if he
40

or she is highly motivated. Thus , the training must be related to the desire of the
trainee such as more wages or better job , recognition , status , promotion etc. the
trainer should find out the proper ways to motivate experienced employees who are
enjoying better facilities in case of re-training.

PROGRESS INFORMATION:
It has been found by various research studies that there is a relation between
learning rapidly and effectively and providing right information specifically, and as
such the trainer should not give excessive information or information that can be
misinterpreted. The trainee also wants to learn a new skill without much difficulty
and without handling too much or receiving excessive information specifically to the
trainee.

REINFORCEMENT:
The effectiveness of the trainee in learning new skills or acquiring new
knowledge should be reinforced by means of rewards and punishment. Examples of
positive reinforcement are promotions, rise in pay, praise etc. Punishments are also
called negative reinforcement. Management should take care that they award the
successful trainees. The management can punish the trainees whose behavior is
undesirable. But the consequences of such punishments have their long-run effect on
the trainer as well as on the management. Hence, the management should take much
care in case of negative reinforcement.

PRACTICE:
A trainee should actively participate in training programs in order to make the
learning program an effective one continuous and long practice is highly essential for
effective learning, jobs are broken down into elements from which the fundamental
physical, sensory and mental skills are extracted. Training exercises should be provided
for each skill.

FULL Vs PART:
41

It is clear whether it is best to teach the complete job at a stretch or dividing the job
into parts and teaching each part at a time. If the job is complex and requires a little
too long to learn, it is better to teach part of the job separately and then put the parts
together into an effective complete job.
Generally the training process should start from the known and proceed to the
unknown and from the easy to the difficult when parts are taught. However the trainer
has to teach the trainees based on his judgments on their motivation and convenience.

INDIVIDUAL DIFFERENCES:
Individual training is costly and group training is economically viable and
advantageous to the organization. But individuals vary in intelligence and aptitude from
one person to another. So the trainer has to adjust the training program according to
the individual abilities and aptitude.

AREAS OF TRAINING:
Organization provides training to their employees in the following areas.

Company policies and procedures

Specific skills
Human resources
Problem solving
Managerial and supervisory skills
Apprentice Training

COMPANY POLICIES AND PROCEDURES:

The area of training to be provided with a view to acquainting the new
employees with the company roles , practices procedures , traditions , Management
organization studies, environment product or service offered by the company etc.
This acquaintance enables the new employee to adjust himself with the changing
situations. Information regarding company rules and policies creates favorable attitudes
of confidence in the minds of the new employee about the company and its products or

42

services, as well as its developments and the sense of respect for the existing employees
of the company and the like. The company also provides first hand information to the
employee about the skills needed by the company, its development program,
quality of product or service and the like. This enables the new employees to know his
share of contribution to the organization growth and development.

TRAINING IN SPECIFIC SKILLS:

This area of training is to enable the employee more effective on the job. The
trainee trains the employee regarding various skills necessary to do the actual job. For
example, the clerk in the bank should be trained in the skills of making entries
correcting in the edge and arithmetical calculations, quick comparison of figures,
entries and the like. Similarly, the technical officers are to be trained in the skills of
project appraisal, supervision, follow up and the like.

HUMAN RELATIONS TRAINING:

A human relation training assumes greater significance in the
organization, as employees have to maintain human relations not only with other
employees but also with their customers. Employees are to be retained in the areas of
self learning, interpersonal competence, group dynamics, perception, leadership styles,
motivation, grievance redressal, disciplinary procedures, and the like. This
training enables the employees for better team work, which leads to improved
efficiency and productivity of the organization.

PROBLEM SOLVINIG TRAINING:

Most of the organizational problems are common to the employees dealing
the same activity at different levels of the organization. Further some of the problems
of different managers may have the same root cause. Hence management may call
together all managerial personnels' to discuss common problems so as to arrive at
effective solution across the table. This not only helps in solving the problems but also
43

serves as a forum for the exchange of ideas and information that could be utilized. The
trainer has to organize such meetings train and encourage the trainees to participate
actively in such meetings.

MANAGEMENT AND SUPERVISORY TRAINING:

Even the non-management some times performs managerial and supervisory
function like planning, decision-making, organizing, maintaining interpersonal
relations, directing and controlling. Hence management has to train the employee in
managerial and supervisory skills also.

APPRENTICE TRAINING:
The apprentice Act , 1961 requires industrial unit of specified industries to
provide training in basic skills and knowledge in specified trades to educate
unemployed/apprentice with a view to improve there employment opportunities
or to enable them to start there own industry. This type of training is generally ranges
between one year to four years. This training is generally used for providing technical
knowledge in the areas like trades, crafts etc.

TRAINING METHODS:
As a result of research in the field of training a number of programs are
available. Some of these are new methods, while others are improvements over
the traditional methods. The training commonly used to train operative and supervisory
personnels. These programs are classified into ON-THE-JOB and OFF-THE-JOB
training programs.

TRAINING METHODS:
ON-THE-JOB TRAINING METHODS:

44

This type of training, also known as job instruction training, is the most
commonly used method under this method, the individual is placed on a regular. Job and
taught the skills necessary to perform the job. The trainee learns under the supervision
and guidance of a qualified worker or instructor. On-the-job training has the advantage
of giving first hand knowledge and experience under the actual working conditions. Hile
the trainee learns how to perform a job he is also a regular worker rendering the service
for which he is paid.

JOB ROTATION:
This type of rotation involves the movement of the trainees from one job to
another. The trainee receives job knowledge and gains experience from his
supervisor or trainer in each of the different job assignment. Though this method of
training is common in training managers for general management positions, trainees
can also be rotated from job to job in workshop jobs. This method gives an opportunity
to the trainees to understand the problems of employees on other jobs and respect them.

COACHING:
The trainee is placed under a particular supervisor functions as a coach in
training the individual. The supervisor provides feedback to the trainees on his
performance and offers him some suggestion for improvement. Often trainee
shares some of the duties and responsibilities of the coach and relieves him of his
burden. A limitation of this method of training is that the trainee may not have the
freedom or opportunity to express his own ideas.

JOB INSTRUCTION:
This method is also known as training step by step under this method; trainer
explains the trainee the way of doing the job, job knowledge and skills and allows him
to the job. The trainer appraises the performance of the trainee, provide feed back
information.
45

COMMITTEE ASSIGNMENT:
Under committee assignment, group of trainees are given and asked to solve an
actual organization problem. The trainee solves the problem jointly. It develops team
work.

OFF THE-JOB TRAINING METHODS:

Under this method of training, trainee is separated from the job situation and his
attention is focused upon learning the material related to his future job
performance. Since the trainee is not distracted by job requirement, he can place his
entire concentration on learning the job rather than spending his time in performing it.
There is an opportunity of expression for the trainees. Following are the various off the
job training methods.

VESTIBULE TRAINING:
In this method, actual work conditions are simulated in a class room. Material,
files and equipment those are used in the actual job performance are also used in
training. The type of training is commonly used for training personnel for clerical
and semi-skilled jobs. The duration of this training ranges from days to a few weeks.

ROLE PLAYING:
This method of training involves action, doing and practice. The
participants pay the role of certain characters, such as the Production Manager.,
Mechanical Manager, etc. This method is mostly used for developing interpersonal
interactions and relations.

LECTURE METHOD:
The lecture is a traditional and the direct method of instruction. The instructors
organize the material and give it to group of trainees in the form of talk.

To be

effective, the lecture must motivate and create interest among the trainees. An

46

advantage of lecture method is that it is direct and can be used for a large group of
trainees.

CONFERENCE OR DISCUSSION:
Conclusion, all of which contribute to the improvement of job performance.
Discussion has the distinct advantage over the lecture method in that the discussion
involves two-way communication and hence feedback is provided. The participants
feel free to speak in small groups. This method involves a group of people who pose
ideas, examine and share facts, ideas and data, test assumptions and draw

PROGRAMD INSTRUCTION:
In the recent years, this method has become popular. The subject matter to
be learned is presented and a series of carefully planned sequential units. These units
are arranged from simple to more complex levels of instruction. The trainee goes
through these units by answering the questions or filling the blanks. This method is
expensive and time consuming.

ADVANTAGES:

The training is given in a separate room to enable the employees concentrate

exclusively on training.
Services of a trained instructor with overall work knowledge can be utilized.
The trainees can freely learn work practices without any fear of comments from
supervisors and co-workers.

DIS ADVANTAGES:

The splitting of responsibilities leads to organizational problems.

An additional investment by way of equipment, class rooms and instructors need to

be incurred.
This method can offer a limited benefit to the jobs which involve working on
47

equipment.

ASSESSING TRAINING NEEDS:

Assessing of training needs require three type of analysis. They are
organizational analysis, operational analysis and man analysis.

a) ORGANISATIONAL ANALYSIS:
It creates primarily up on the determination of organizational goals.
It'sresources and the allocation of the resources as they relates to
organizational goals. The analysis of organizational goals establishes the
frame work in the training needs can be defined more clearly.

b) OPERATIONAL ANALYSIS:
It focuses one fee or job regardless of the employee doing the job. This analysis
include the determination of the worker must do the specific worker behavior
required, if the job is to be performed effectively.

c) MAN ANALYSIS:
It reviews the knowledge , attitudes and the skills of the incumbent in each
position and determines what knowledge , attitudes or skills he must be acquired and
what alternations in his behavior must be made if he is to contribute satisfactorily to
the attainment of organizational objectives.

ANALYSE JOB SKILLS:

Under this step, it is to decide who is to be trained the new corner or the old
employee, or the supervisory staff, or all of them selected from different
departments. The trainer has to be prepared for the job as he is the key figure in the entire
program.

SPECIFY AIMS AND OBJECTIVES:

This step consists:

In putting the learner at ease
In stating the importance and ingredients of the job and its Relationship to the
work flow.
48

In explaining why he is being taught.

Increasing interest and find out what the learner already know about the job
In explaining the WHY of the whole job and relating it to some job the worker
already knows.

49

PRESENTATION OF OPERATION AND KNOWLEDGE:

This is the most important step in the training program. The trainer should clearly
tell, show, illustrate and question in order to put over the knowledge and operations.
The learner should be told of the sequence of the entire jobs and why each step to its
performance is necessary instruction should be given completely and patently.

CONDUCT TRAINING:
The trainer is asked to go through the job several times slowly, explaining
him step by step. Mistakes are corrected, and if necessary some complicated steps are
done for the trainee for the first time. Then the trainee is asked to do the job, gradually
building up skills and speed. As soon as the trainee demonstrates that he can do the
job in a right way, he is pulled on his own, but not abandoned. The trainee is then
tested and the effectiveness of the training program is evaluated.

COLLECT EVALUATION DATA:

This step is undertaken with view to test the effectiveness of the training efforts.
This consists in putting a trainee "on his own" Checking frequently to be sure that
he has followed instructions. Tapering of extra supervision and close follow up until he
is qualified to work with normal supervision. It is worth remembering that if the
hasn't learned the teacher hasn't taught.

EVALUATION OF TRAINING PROGRAM:

Evaluation of any activity is important since in evaluation one tries to judge the
"value or the worth of the activity, using the information prevail able". Hamburg
defines any attempt to obtain information on the efforts of the training program and to
assess the value of training in the light of that information.

50

PURPOSE OF EVALUATION OF TRAINING PROGRAM:

The effectiveness of an

investment in training

is

needed to be

appraised since so much of money is invested in training program

management needs to be required about the effectiveness of a particular
method , instruction , the relation between training cost and provide

productivity and general efficiency and effectiveness of a course.

The relevance of the program to the organization needs has to be
assessed in the sense what changes should be made in existing

pragrammes to realign them to organization needs.

Feed back on the choice of the areas of training will also be needed to be
examined

in

the

context

of

its

contribution

to

the

organization

effectiveness.
To analyze the money worth to be spent on this activity or another

more relevant activity this will improve of the organizational objectives.

Relations from trainees about the training program can help to
identify the strengths and weakness. The relations can be used as a base for
the improvement of program, those evaluating must first be defined about the
aspects they are interested in investigating.

TRAINING FOR DIFFERENT EMPLOYEES

The employees who are to be trained can be of different types would
require different type of training.

UNSKILLED WORKERS:
They are given training in improved methods of handling machines and
materials. The objective here is to secure reduction in cost of production and
waste. Immediate superior officers given training on the job itself.
SEMI-SKILLED WORKERS:
They require training to cope with requirement arising out of adoption of
mechanization, rationalization and technical process. More proficient workers bosses
51

or inspectors give training. It may be given either in the section or department of the
worker or in segregated training shops.

SKILLED WORKERS:
They are given training through apprenticeship in training centers or in the
industry itself.

SALESMEN:
Salesmen are trained in the art of salesmanship in handling customers ,planning
their work , and facing challenges of market place.

SUPERVISORY STAFF:
They constitute a very important link in chain of administration. They have to
cope with the increasing demand of the enterprises in which they are employed and to
develop team spirit among people under their change.

TRAINING PROCEDURE
The important steps in training procedures are
a) PREPARING THE INSTRUCTURE:
The instructor must know both the job to be taught and how to teach it. The job
must be divided in logical parts so that each can be taught at a proper time with out the
trainee losing plan for each one should have in mind the desired technique of
instruction, that is, whether a particular point is best taught by illustration,
demonstration or explanation. A serious and committed instructor must
(i)

Know the job or the subject he is attempting to teach

(ii)

Have the attitude or abilities to teach

(iii) Have willingness towards the profession

52

b)PREPARING THE TRAINEE:

As in interviewing the first step in training is to attempt to place the trainee
at case most of the people are nervous when approaching an unfamiliar task. Tough the
instructor may have executed his training procedure, many times he or she never
forgets its newness to the trainee. The quality of empathy is a mark of the good
instructor.
C) PRESENTING THE OPERATION:
There are various alternative ways of presenting the operation, viz., explanation
demonstration etc. An instructor mostly uses these methods of explanation. In addition
one may illustrate various points through the use of pictures charts diagrams and other
training aids.

d) GETTING READY TO TEACH:

This stage of the program is class hour teaching involving the following
activities:
> Planning and program
> when it is available. Preparing the instructors out line
> Do not try to cover too much material.
> Keep the session moving along logically
> Discuss each item in depth
> Repeat but in different words
> Take the material from standardized texts
e)TRY OUT THE TRAINEES PERFORMANCE:
As a continuation of the presentation sequence given above, the trainee should
be asked to start the job or operative procedure .Some instructors prefer that the
trainee explains each step before doing it, particularly if the operation involves any
danger. The trainee, through repetitive practice, will acquire more skill.
53

f) FOLLOW-UP:
The final step in most training procedures is that of follow-up. When people
are involved in any problem or procedure it is unwise to assume that things are
always constant. Follow-up can be adapted to a variable reinforcement schedule as
suggested in the discussion of learning principles. The follow-up system should
provide feed back on training effectiveness and on total value of training system.
(diagram)

EVALUATION OF TRAINING PROGRAM:

The specification of values forms the basis for evaluation. The basis of
evaluation and the mode of collection of information necessary for evaluation should
be determined at the planning stage. The process of training evaluation has been
defined as any attempt to obtain information on the effects of training performance and
to assess the value of training in the light of that information. Evaluation leads to
controlling and correcting the training program. Hamblin suggested five levels at
which evaluation of training can take place

a) REACTION:
Training program is evaluated on the basis of trainee's reactions to the
usefulness of coverage of the matter, depth of the course content, method of
presentation, teaching methods etc.

b) LEARNING
Training program, trainer's ability and trainee's ability are evaluated on
the basis of quantity of content learnt and time in which it is learned and
learner's ability to use or apply, the content he learned.

c) JOB BEHAVIOUR:
This evaluation includes the manner and extent to which the trainee has
applied his learning to his job.
54

d) ORGANISATION:
This evaluation measures the use of training, learning and change in the
job behavior of the department organization in the form of increased
productivity, quality, moral, sales turn-over and the like.
e) ULTIMATE VALUE:
It is the measurement of ultimate results of the contribution of the training
program to the company goals like -Survival, Growth, Profitability etc
and to the individual goals like development of personality and social goals
like maximizing the social benefits.

TRAINING PROGRAMS AT HPCL

HPCL trains its personnel through various internal & external training programs
at various levels. It has its own Management Development Centre NIGDI which
nominates all the officers for various training programs throughout the year. Apart from
this, HPCL has a training Portal in its website and any officer can nominate him/herself
for training depending upon the need and specialization. The training portal also
maintains training history of each and every employee to enable themselves to
nominate for the training programs which they have not undergone. The training portal
will also maintain e-learning facility in the following areas:

Drive for excellence

Cooperative Teamwork

Enduring commitment and initiative

Dynamic customer focus, etc.

HPCL publishes annual Training Calendar on the net to enable the employees to
nominate in advance by planning their work and travel arrangements.

1) COMPETENCY DEVELOPMENT:

55

In today's dynamic business scenario, it is essential that the organization has

an

integrated people strategy, which is capable of equipping employees to surge

ahead of competition. Towards this endeavor, HPCL

felt it is vital to strengthen

the competencies of its employees to meet the challenges of the continuous change and
competency development in a step in this direction.
The main objectives of competency development process as defined by

HPCL have been to:

Align Employee Competencies to the corporation's business strategies

Create an advanced understanding of competency development process.
Develop technical competency framework under various functions and its

strategic business units and communicate to all officers.

Assist individual officers to identify competency gaps between existing and

desired levels.
Facilitate in implementation of individual development plans.
Build in-house expertise in all aspects of competency development

process.
In the journey towards competency development HPCL has achieved the

following:
Development

officers.
Position

the organizations.
Conduction of

functions and facilitated their competency development.

Institutionalization of the process through internal expertise development.
Integration of competency development process with training and

of

profiling

behavioral
with

competency

required

development

framework

competencies

centers

for

(BCF)

for

all

for

positions

across

officers

from

various

recruitment.

2) Project-ACE (Achieving continuous excellence):

Project ACE in HPCL aims at continuously training its employees on various
areas. The over all process addresses following topics:

56

i) VISION AND CORE PURPOSE:

When we want to create what we want to be in future, as an organization and as a

team what for we exist.

ii) CURRENT REALITY:
The next step after vision is to assess an honest insightful and balanced view of
where thinks are today. The tool 'Ladder of Inference' will help in de-personalizing the
issues, gaining insight in to the root causes of recurring problems , and learning more
about how each team member views the problems. The team will review and evaluate
current strategies, building on assessments obtained from individuals. Examining issues
in the group sitting together will result in greater shared understanding of tough issues.
Iceberg Model can be especiallyimportant in this phase in identifying underlying
forces at play and non-obvious cause and effect interrelationships.

Important elements of current reality include:

a) Your most important strengths or competitive advantages or areas in which the
business and organization excel, or have the potential to excel, such as technology, people,
or marketing.
b)Your businesses major problems, liabilities or limitations or areas u must attend to if
you are to achieve your vision.
c) Major business and organizational opportunities.
d) Things in the future you should be concerned about for example, shrinking market
base, loss of a competitive edge increased government regulation.
e)

Trends

in

your

industry

or

society

(positive/negative) on your organization.

iii) CREATIVE TENSION:

57

that

could

have

an

impact

Whenever we hold a vision of a desired future which is different from the way
things at present (that is, reality), we develop creative tension. This tension seeks
resolution. It is a natural part of the creative process. Creative tension can be resolved in
one of the two ways: (a) In favor of the vision or (b) In favor of the current reality. When
there is a big gap between vision and current reality, people often begin to feel anxious,
frustration,

or discouraged.

A common

response to this emotional tension is to

attempt to relieve it, either by lowering the vision or by denying or overlooking aspects
of current reality. Holding on to the vision while simultaneously acknowledging
current reality generates an enormous amount of energy that actually draws current
reality towards the vision. This energy helps us to take effective actions to create the
results we want.

iv) HIGH LEVERAGE RESULT AREAS:

The third step is identification of high leverage thrusts which can create improvement
with high leverage. It is like moving a very large ship into the sea with the help of a
rudder and trim tab. The purpose is to look for areas of highest leverage, results that, if
accomplished, will give us a disproportionately high return for effort expended.

Guidelines for creating high leverage results:

1. In order to achieve your mission, you must convert it into clear, specific, and
operationally

effective

statement

of

results

(not

activities).

These results are like mile markers along your journey to your vision.
2. These results are vital to your survival or success. They are the vital few.
3. High leverage results provide the standards against which individual and
organizational performance will be measured.
4. High

leverage results must be capable of being converted into specific,

measurable targets, action plans and work assignments.

5. The results are the means for focusing and mobilizing the resources and energies of
the organization. Others in the organization will base there plans on these desired
results.
58

6. Having simply created a plan to do something is not a high leverage result.

v) ACCOUNTABILITY AND OTER ROLES :
In the next step, teams are formed with one accountable and suitable number of
supports consults and informs as per their passion in each high leverage result area.
These teams will work on drawing detailed action plans towards realizing the vision
that they have co-created.
vi) TEAM OPERATING PRINCIPLES:
The fundamental objective of this work is to make explicit a set of shared mental
models that will support the team in its day to day fulfillment of its mission as seen in its
vision. Mental models can be difficult to surface and share. Given that they tend to be
the frame work for our day to day decision making, actions and behavior , it is worth
the effort to make them as clear and as explicit as possible. It is our belief that values
are one of the underlying building blocks of mental models and that mental models can
be shared and explicit through developing a set of operating principles, models and
standards. Once the mental models are shared and explicit, every individual in an
organization is empowered to make decisions and take actions that lead to bringing
about the shared vision

BALANCE SCORE CARD:

What is balance score card?
A new approach to strategic management was developed in the early 1990!s by
Drs. Robert Kaplan (HarvardBusinessSchool) and David Norton (Balanced Score
Card Collaborative). They named this system the 'Balance Score Card'. Recognizing
some of the weaknesses and vagueness of previous management approaches, the
balance score card approach provides a clear prescription as to what companies
59

should measure in order to 'balance' the financial perspective. The balance score card
is

management

system

(not

only

a measurement system) that enables

organizations to clarify their vision and strategy and translate them into action. It
provides a feedback around both the internal business process and external out
comes in order to continuously improve strategic performance and results. When fully
deployed, the balanced score card transforms strategic planning from an academic
exercise into the nerve centre of an enterprise. The balanced score card suggest that we
view the organization from four perspectives, and to develop metrics, collect data and
analyze it relative to each of these perspectives.
i)

THE LEARNING AND GROWTH PERSPECTIVE:

This perspective includes employee training and corporate cultural attitudes

related to both individual and corporate self-improvement. In a knowledge-worker

organization, people - the only repository of knowledge -- are the main resource. In the
current climate of rapid technological change, it is becoming necessary for knowledge
workers to be in a continuous learning mode. Government agencies often find them
unable to hire new technical workers and at the same time are showing a decline in
training of existing employees. This is a leading indicator of 'brain drain' that must be
reversed. Metrics can be put into place to guide managers in focusing training funds
where they can help the most, in any case, learning and growth constitute the essential
foundation for success of any knowledge-worker organization.

ii) THE BUSINESS PROCESS PERSPECTIVE:

This perspective refers to internal business processes. Metrics based on this
perspective allow the managers to know how well their business is running, and
whether its products and services conform to customer requirements (the mission).
These metrics have to be carefully designed by those who know these processes most
intimately; with our unique missions these are not something that can be developed by

60

outside consultants. In addition to the strategic management process, two kinds of

business processes may be identified:
a) mission-oriented processes, and b) support processes.
Mission-oriented processes are the special functions of government offices, and
many unique problems are encountered in these processes. The support processes are
more repetitive in nature and hence easier to measure and benchmark using generic
metrics.
iii) THE CUSTOMER PERSPECTIVE:
Recent management philosophy has shown an increasing realization of the
importance of customer focus and customer satisfaction in any business. These are
leading indicators: if customers are not satisfied, they will eventually find other
suppliers that will meet their needs. Poor performance from this perspective is thus a
leading indicator of future decline, even though the current financial picture may look
good. In developing metrics for satisfaction, customers should be analyzed in terms of
kinds of customers and the kinds of processes for which we are providing a product or
service to those customer groups.

iv) THE FINANCIAL PERSPECTIVE:

Timely and accurate funding data will always be a priority, and managers will do
whatever necessary to provide it. In fact, often there is more than enough
and

processing

of

financial

data.

With

handling

the implementation of a corporate

database, it is hoped that more of the processing can be centralized and automated. But
the point is that the current emphasis on financials leads to the unbalanced situation
with Mission-oriented processes is the special functions of government offices, and
many unique problems are encountered in these processes.
Training Advisory Council
Training & Development Policy
61

Training Courses
Foreign Training Program.

Training & Development Policy

One of the first tasks of TAG was to draw up a T&D policy, the salient Features of
which are

given hereunder:

I. Objectives
a. To enhance effectiveness in the present position
b. To develop capabilities and competence to assume higher responsibilities
c. To keep abreast of technological and managerial development to avoid obsolescence.
d. To meet the situation of a vacuum in senior positions.
e. To build a cohesive employee group.
f. To create an infrastructure, to make training a way of life
II. Training Policy Tenets:
a. Training and Development should encompass all levels of employees.
b. In the management cadre, up to Group C, Basic Management Training like
effective management, effective listening, communication improvement, public speaking
skills etc should be imparted to all the staff. Additionallycourses like decision making,
leadership styles, performance appraisal and counseling will

be imparted even at

Group B level, based on need. Functional training will however be need based.

Training Advisory Council:

Tremendous emphasis is given to Training & Development (T&D) activity of the
Corporation. In order to systematize T&D activity, a Training Advisory Council
(TAC) has been constituted comprising:

62

DIRECTOR (HR):

Chairman

Executive Director - CPP:

Member

Executive Director - Sales:

Member

ED - LPG:

Member

ED SOD:

Member

GM EM&P:

Member

ED MR:

Member

GM PROJECTS:

Member

GM FINANCE:(mktg)

Member

GM FINANCE:(corp)

Member

GM IT:

Member

GM HRD:

Member

GM IR:

Member

PRINCIPAL,MDI,NIGDI:

Member

DGM TRAINING:

Member

c. Group D upwards Management Training should be primarily based on:

i. Training and Development need as recorded in Performance Appraisal (Form HP-HRDII).
ii. To develop the employee's potential as mentioned in HP-HRD-II.
iii. Any specialized training that may be necessary to meet specified needs.
d.

The most effective form of training is through in-company programs.

e. Outside company courses will be utilized for specialist/advanced training both

Functional as well as Management. However, the present situation calls for greater
dependence on these courses. Additionally, our participation in outside seminars/
workshops will be increased to facilitate greater interaction and
with other organizations.

63

exchange of views

f. Good Management / Functional Courses which will be evaluated/ established as

useful programs, will be taken up as in-company course, to ensure wider coverage at
economic cost.
g. The Corporation will explore possibilities to locate sources for specialized
training programs, particularly in Functional areas, outside the country to keep
abreast of technological/ managerial developments.
III. Training Plan:
This will mainly cover in-company programs: Short Term
a. Through Internal Faculty
b. Through External Faculty
c. Exclusive External Courses

Long Term:
To create an infrastructure for a permanent Training & Development set up.
a. In Company Faculty Development
The Corporation has introduced a scheme to pay an Honorarium for Incompany faculty. The detailed scheme for payment of honorarium to In-company
faculty is given in Annexure VII.

b. Training Centre
i. Management Development Institute, Nigdi, Pune(residential)
ii. Training centre at Mumbai and Visakh Refineries
iii. Develop Auto Care Centre at Mumbai, Chennai, Delhi and Kolkata mainly
64

as Marketing Functiional Training Centre for Corporation employees and dealers/

Dealer's staff at ROPs etc.
iv. During Vlllth Plan - Establish another Management Development Institute
(Residential) at Visakhapatnam.
c.Audio-Visual equipment, including quick copying and micro-filming facilities, video
camera for role playing at Management Training Centre.
d.Library - Central as well as Regional Training Centres with reading /loaning facility
- Self Development Communications etc.
e.Films, Video Tapes, Training Manuals.

IV. Training Organization:

a. Functional set ups for Marketing, Refineries.
b. Corporate set up which will also over see Functional areas, however the latter
should have full autonomy to devise, plan, budget their training needs short
term/ long term, organization will be determined.

V. Training budget:
a. Management Training - Corporate Training Dept.
b.Functional

Training

Respective

General

Manager

on

Marketing

/Refinery Training Depts.

VI. Selection /nomination criteria for training:
The basic document for selection / nomination of training programs and
candidates will be the Limits of Authority Manual, which will reflect the changes
recommended by the Training Advisory Council (TAG) from time to time. Within the
above frame work the following criteria will be observed:
i. Selection of Training Courses-in-company or outside will be recommended
by TAG to the concerned approving authority.

65

ii. Nominations
1.Functional Training:
a. Nomination

by

respective

Director

/General

Manager

within

stipulated

limits of authority.
b. Nomination at least once in 2 years (in-company or outside)
c. A minimum period of 6 months between 2 Functional Courses.
d. All levels of Management Staff and selected non management staff can be deputed
to functional courses, within the eligibility criteria specified for the course.

2. Management Training:
a. Nomination by Human Resources Dept, based on Training needs in HRD II form to
be confirmed by Functional Dept Heads.
b. Nomination at least once in 3 years (in company or outside).
c. A minimum period of one year between 2 Management courses (outside company)
and 6 months in the case of in-company. Management Training nominations will be
regulated by Corporate Training Dept and no direct nominations for such courses
should be made by Functional Depts.

VII. Review:
The training policy will be reviewed by TAC from time to time based on
Training Convention1 of Senior Managers to be held and other feedback received.

Training Courses:

66

Training Advisory Council (TAC) has identified various in company as well

as outside training courses that are available in management discipline and other
functions. List of training institutes who conduct almost this course is given in
Annexure VI. Thus, with the help of the relevant training courses from various salary
groups as per T&D policy, the list of training courses and Training Institutes indicated
above, it will facilitate completion of the training and development needs portion of
Performance Appraisal Form - HPC HRD I &II.Foreign Training Program:
The Corporation sponsors suitable employees for short courses abroad, through
the Petroleum Ministry. The Ministry specified the eligibility criteria, based on
which nominations are forwarded.

DATA ANALYSIS AND INTERPRETATION

1) At least two training programs have you attended in the last year?
Table : 1

67

Employees
(MGT/NMGT)

Response (in %)

Strongly agree

45

Agree

26

Disagree

19

Strongly Disagree

10

Graph :1

Response (in %)
10%
19%

26%

Agree
Strongly agree
Disagree
Strongly Disagree

45%

Interpretation:
From the above Data we see that 45% of the Employees have attended training
sessions for the last year.

2) Adequate behavioral as well as technical training is provided to the

employee?
Table :2
Employees

Response

(MGT/NMGT)

(in %)

68

Strongly agree

42

Agree

30

Disagree

16

Strongly Disagree

12

Graph :2

Response (in %)
12%
16%

Agree
Strongly agree
Disagree
Strongly Disagree

30%

42%

Interpretation:
From the above data 42% Employees Strongly Agreed that they were provided
adequate behavioral as well as technical training.

3) Competent internal / External Faculty is engaged for conducting quality

training?
Table : 3
Employees

Response

(MGT/NMGT)

(in %)

Strongly agree

43

69

Agree

35

Disagree

12

Strongly Disagree

10

Graph : 3

Response (in %)
Agree
12%

10%

Strongly agree

35%

Disagree
Strongly Disagree

43%

Interpretation
From the above data 43% of the Employee strongly agreed that competent
internal / External Faculty is engaged for conducting quality training to improve their
skills.

4)

Is Trainees feedback is being incorporated for further improvements of

the employee?
Table : 4
Employees

Response

(MGT/NMGT)

(in %)

Strongly agree

46

Agree

41

Disagree

Strongly Disagree

70

Graph: 2

Response (in %)
Agree
Strongly agree
Disagree
Strongly Disagree

8% 5%
41%
46%

Interpretation
From the above data More Percentage of Employees strongly agreed that their
feedback is being useful for new training sessions to improvement of the employee.

5) Qualitative in- house training programs are conducted

organization?
Table : 5
Employees

Response (in

(MGT/NMGT)

%)

Strongly agree

33

Agree

30

Disagree

22

Strongly
Disagree

15

71

in the

Graph : 5

Response (in %)
15%

Agree
Strongly agree
Disagree
Strongly Disagree

30%

22%
33%

Interpretation:
From the above data more percentage of the employee strongly agreed that
qualitative in- house programs are conducted in the organization for the development of
the skills of the employees
6)

The input provided during training and development is understandable

by the majority of the participants?
Table: 6
Employees
(MGT/NMG

Response (in

T)

%)

Strongly
agree

45

Agree

25

Disagree

18

Strongly
Disagree

12

72

Graph: 6

Response (in %)
12%

Agree
Strongly agree
Disagree
Strongly Disagree

25%

18%
45%

Interpretation:
From the above data 45% of the employees are accepted that the input provided
during training and development is understandable by the participants

7) Are you satisfied with the job rotation practiced within the organization?
Table: 7
Employees

Respons

(MGT/NMGT)

e (in %)

Strongly agree

50

Agree

30

Disagree

12

Strongly Disagree

Graph : 7

73

Response (in %)
12%

8%
50%

30%

Agree
Strongly agree
Disagree
Strongly Disagree

Interpretation:
From the above data more percentage of the employees are satisfied with the job
rotation process which is practiced with in the organization.

74

8)

Do you agree that multi Skilling and job rotation enhances skill and
competencies in different work areas?
Table : 8
Employees

Respons

(MGT/NMGT)

e (in %)

Strongly agree

28

Agree

38

Disagree

18

Strongly Disagree

16

Graph : 8

Response (in %)
16%
38%

18%

Agree
Strongly agree
Disagree
Strongly Disagree

28%

Interpretation:

From the above data mixed result is observed that multi skilling and job rotation
enhances skill and competencies in different work areas within the organization.

9) Is your superior gives you sufficient independence to perform the job ?

75

Table : 9
Employees
(MGT/NMGT)

Response (in %)

Strongly agree

60

Agree

25

Disagree

Strongly
Disagree

8
Graph :9

Response (in %)
7%

8%

Agree
Strongly agree
Disagree
Strongly Disagree

25%

60%

Interpretation:
From the above data 60% of the employees strongly agreed that their superior
give them sufficient independence to perform their job within the organization

10) The performance appraisal system in the company helps in promotions,

identifying the potentials?

Table : 10
Employees
76

Response

(MGT/NMGT)

(in %)

Strongly agree

40

Agree

20

Disagree

25

Strongly Disagree

15

Graph : 10

Response (in %)
15%

Agree
Strongly agree
Disagree
Strongly Disagree

20%

25%
40%

Interpretation:
From the above data majority of the employees believed that the performance
appraisal system in the company helps in promotions and identifying the potentials of the
employees.

11) The present training & development programs in the company is

reflecting the performance adequately?
Table : 11
Employees

Respons

(MGT/NMGT)

e (in %)

Strongly agree

44

Agree

34

77

Disagree

14

Strongly Disagree

Graph : 11

Response (in %)
14%

8%

Agree
Strongly agree
Disagree
Strongly Disagree

34%

44%

Interpretation:
From the above data we are observed the their exists which result about the
present training and development programs in the company was reflecting performance
adequately.
12)Other than promotions, quality of work life and job profile is the sources of
motivation of the employees?
Table :12
Employees

Respons

(MGT/NMGT)

e (in %)

Strongly agree

48

Agree

28

Disagree

18

78

Strongly
Disagree

6
Graph : 12

Response (in %)
6%

Agree
Strongly agree
Disagree
Strongly Disagree

28%

18%

48%

Interpretation:
From the above data maximum No. of Employees believed that the other than
promotions, quality of work life and job profile was the sources of motivation to the
employees to perform their skills according to the organization.
13)In the organization, the employees are well aware of the challenges in the
form of FIR interventions, like Competency Mapping, Development Center,
Balanced Score and helps in Promoting growth of H.R.
Table : 13
Employees

Respons

(MGT/NMGT)

e (in %)

Strongly agree

55

Agree

25

Disagree

12

79

Strongly Disagree

Graph: 13

Response (in %)
12%

8%

Agree
Strongly agree
Disagree
Strongly Disagree

25%

55%

Interpretation:
From the above data maximum percentage of the employees accepted that in the
organization the employees are well aware of the challenges in the form of FIR in
interventions, like Competency Mapping, Development Center, Balanced Score and helps
in Promoting growth of H.R.

80

SUMMARY, FINDINGS AND SUGGESTIONS

Summary:
Hindustan Petroleum Corporation Ltd. (HPCL) came into being in mid 1974 after
the takeover and the merger of the erstwhile Esso and Lube India undertakings. Caltex
was taken over by the Government in 1976 and subsequently merged with HPCL in
1978. Kosan Gas Company, the concessionaires of HPCL in the domestic LPG market,
was taken over and merged with HPCL in 1979. HPCL thus came into being after
merging four different organizations at different points of time. As we approach the
new millennium, the Corporation too will be touching a significant landmark in its
illustrious history.... & has completed 25 years of fruitful existence on July 15, 1999.
HPCL operates two fuels refineries, one at Mumbai and the other at
Visakhapatnam. In addition, the Corporation also operates a Lube Refinery, which is the
largest in India and accounts for 41% of the country's capacity. Over the years, the
Corporation has grown rapidly and has carved its own niche in the Petroleum Sector
in India. It is clearly reflected in its impressive turnover of over Rs. 25,000 crores and
a 20% market share which is largely due to its vast and strategically located
Marketing & Distribution network comprising of 4 Zonal offices, 34 Regional Offices
(including 10 LPG ROs), 22 Terminals, 32 LPG bottling plants, 9 Aviation Stations, 4
lube blending plants and a lube pipeline for base oil evacuation from the Refinery, 90
Inland Relay Depots, 4327 retail outlets, 1622 SKO / LDO dealerships and 1463 LPG
distributorships. With an aim to reach and meet the requirements of its wide customer
base, the Corporation owns and Operates two cross - country pipelines; one from
Mumbai to Pune and the other from Vishakhapatnam to Vijayawada, put together have a
capacity to carry 7.77 million metric tonnes (MMT) of Petroleum Products. Our
Corporation has been consistently rated in the "Excellent Category" as per the MOU
evaluation, by the Government, for the past 7 years in succession.

81

FINDINGS
Many of the respondents are residing outside the colony because they
are not satisfied with the facilities provided by HPCL and also
because of the poor maintenance.
Some of them are staying outside the colony in their own house and
others in rented house. People staying in the rented house are not
satisfied with HRA, which they are getting. They suggested an
increase in HRA.
The parks in the colony are not at all maintained properly, they extend
no recreation for residents of the colony.
Marketing facilities in the colony are useful to officers and staff and
the prices are not affordable by workmen.
There are no specific lunch rooms for the workmen to take their lunch
or dinner.
There is no supply of cool drinking water in earthen pots to the
workshops. Drinking water is not maintained properly.
Most of the employees are highly satisfied with the medical facilities
provided by the organization. Medical reimbursement scheme
provided by the organization is the excellent amenity among the
existed ones.
During data collection time some of them are not responded as they have
personal problems. Even some of them did not give any opinion on some
facilities.

82

SUGGESTIONS

Taking into account the opinion of the employees based on the

questionnaire distributed among 100 employees the following are the
suggestions made by them.

The canteen facilities provided by the organization need to be

improved to the better extent. Also the quality in the meals needs to be
improved.
Drinking water provided in the organization need to be maintained
clean.
Safety measures provided by the organization should be extended and
provide better quality.
Children education allowance needs to be increased as per the present
day fee norms.
Colony roads need to be repaired, recreation facilities like parks, play
centre for children, ladies club etc need to improved and provided
further.
The quality of education provided by HSL educational institutions is
for low standards. They need to be improved a lot.
Most of the workmen are not satisfied of the wages being provided.
They seek for increase in wages.

83

CONCLUSION AND RECOMMENDATIONS

In

HPCL

been

most

of

provided

the

employees

with

feel

that

adequate

they

behavioral

have
and

technical training to improve their performance.

From this study
understanding

of

have

received

may

be

it can be inferred that

the level of

the

training

is

taken

training

employees
less

than

by

the

programs

for

the

they

50%.so,

suitable

organization

to

conduct

better

which

gives

steps

understanding.
Most

of

the

multi-skilling

employees
and

job

in

this

rotation

organization
enhances

feel
skill

that
and

competencies in different work areas.

Scope

of

employees

empowerment
is

less

given

when

to

compared

non

management

to

management

employees.
The employees are partially satisfied with the faculty engaged in
training sessions. Hence necessary
Awareness has to be created among the employees regarding the
changes in the form of HR interventions, which results in personal
as well as organizational growth.

BIBILOGRAPHY
Human Resources Management:
84

Scott Snell and George Bohlander, HRM, Thomson Publication 2007

Human Resources Management:
K. Aswathappa, HR & personal management, Tata McGraw Hill, 2007
Business World
Various Journals and Publications of Tecumseh Products India like
Standing orders and LTS

Websites:
www.google.com
www.hpcl.org.com

Questionnaire
On
Training & Development

Respected Sir/ Madam.

85

Good day to you, this questionnaire is a part of my project which I am doing on human
resource development practice in HPCL I kindly request you to extend your contribution
by responding to this questionnaire. As your response will be strictly used only for
academic purpose and your identity will remain confidential.

Name :____________________________ Experience _______ Grade _________

Age :___________________
Category :____________ MGT/NMGT:_____________ Department:_____________
Scale:
AgreeStrongly Agree

Disagree

Strongly Disagree

1) At least Two training programmers have you Attended- in. the last year?
Agree: ( ) Strongly Agree ( ) Disagree ( ) Strongly Disagree ( )

2)Adequate behavioral as well as technical training Is provided to the Employee?

Agree: ( ) Strongly Agree ( ) Disagree ( ) Strongly Disagree

( )

3) Competent Internal / External faculty is engaged for conducting quality training?

Agree: ( ) Strongly Agree ( ) Disagree ( ) Strongly Disagree

( )

4)Is Trainee's feedback is being incorporated for further improvements of the employee?
Agree: ( ) Strongly Agree ( ) Disagree ( ) Strongly Disagree

( )

5)Qualitative In-house training Programs are conducted in the organization?

Agree: ( ) Strongly Agree ( ) Disagree ( ) Strongly Disagree

86

( )

6) The Input provided during training and development is understandable by the majority
of theparticipants?
Agree: ( ) Strongly Agree ( ) Disagree ( ) Strongly Disagree

( )

7) Are you satisfied with the Job rotation practiced within the organization?
Agree: ( ) Strongly Agree ( ) Disagree ( ) Strongly Disagree

( )

8)Do you agree that multi-skilling and job rotation enhances skill and competencies in
differentwork areas ?
Agree: ( ) Strongly Agree ( ) Disagree ( ) Strongly Disagree

( )

9)Is your superior gives you sufficient independence to perform the job?
Agree: ( ) Strongly Agree ( ) Disagree ( ) Strongly Disagree

( )

10)The performance .appraisal system in the company helps in promotions, identifying

thepotentials.
Agree: ( ) Strongly Agree ( ) Disagree ( ) Strongly Disagree

( )

11)The present Training & development programes in the company is reflecting the
performanceadequately?
Agree: ( ) Strongly Agree ( ) Disagree ( ) Strongly Disagree

( )

12) Other than promotions, quality of work life and job profile is the sources of
motivation to the employees?
Agree: ( ) Strongly Agree ( ) Disagree ( ) Strongly Disagree

( )

13) In the organization,, the employees are well, aware of the Challenges in the form of
FIRinterventions, like Competency Mapping, DevelopmentCenter, Balanced Score

87

Card and helps in promoting growth Of H.R.

Agree: ( ) Strongly Agree ( ) Disagree ( ) Strongly Disagree

---------------------THANK YOU------------------------

88

( )

89