SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIALFULFILLMENT OF

BACHELOR OF BUSINESS ADMINISTRATION

SUMMER TRAINING PROJECT REPORT ON PERFORMANCE MANAGEMENT SYSTEM (HR)

Submitted By: Name of student: Payal Sharma Enrollment No.: 0302061709 Batch: 2009-2012 INTERNAL GUIDE Name: Designation: EXTERNAL GUIDE Name: Designation:

Trinity Institute of Professional Studies Affiliated To Guru Gobind Singh Indraprastha University

CERTIFICATE
TO WHOM SO EVER IT MAY CONCERN This is to certify that the project work Performance Management system made by: Payal Sharma, BBA (Gen), 03020601709 is an authentic work carried out by her under guidance and supervision of Internal guide Name The project report submitted has been found satisfactory for the partial fulfillment of the degree of Bachelor of Business Administration. Internal Supervisor Signature Name

ACKNOWLEDGEMENT
It is in particular that I am acknowledging my sincere feeling towards my mentors who graciously gave me their time and expertise. They have provided me with the valuable guidance, sustained efforts and friendly approach. It would have been difficult to achieve the results in such a short span of time without their help. I deem it my duty to record my gratitude towards the External project supervisor __Name_____ and Internal project supervisor ---Name--who devoted his/her precious time to interact, guide and gave me the right approach to accomplish the task and also helped me to enhance my knowledge and understanding of the project. PAYAL SHARMA 03020601709 5TH SEM/1ST SHIFT

DECLARATION
I hereby declare that the following documented project report titled Performance Management system is an original and authentic work done by me for the partial fulfillment of Bachelors of Business Administration degree program at Indian Oil Corporation limited I hereby certify that all the Endeavor put in the fulfillment of the task are genuine and original to the best of my knowledge & I have not submitted it earlier elsewhere. Payal Sharma 03020601709 BBA (Gen) 5th sem (1st shift)

Contents
Title
Chapter-1 PROFILE OF THE COMPANY 1.1 introduction 1.2 location 1.3 salient features 1.4 vision, mission & values 1.5 product range 1.6 organizational structure 1.7 markets 1.8 HR department of IOCL 1.9 Personnel management system 1.10 Performance appraisal Chapter-2 RESEARCH METHODOLOGY 2.1 Universe of study 2.2 Research design 2.3 Questionnaire design 2.4 Limitations Chapter-3 SWOT ANALYSIS 3.1 Strengths & weaknesses 3.2 Opportunities & threats

Page no.

8 10 12 13 16 17 20 21 32 40

44 44 45 46

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Chapter-4 FINDINGS 4.1 Findings Chapter-5 CONCLUSIONS, RECOMMENDATIONS AND SUGGESSIONS 5.1 Conclusion 5.2 Highlights 5.3 Recommendations & Suggestions APPENDIX QUESSIONAIRE

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56 57 58

CHAPTER-1 PROFILE OF THE COMPANY

INDIAN OIL CORPORATION LIMITED Indian Oil Corporation Ltd. is India's largest company by sales with a turnover of Rs. 3,28,744 crore ($ 72,125 million) and profit of Rs. 7445 crore ($ 1,633 million) for the year 2010-11. IndianOil is the highest ranked Indian company in the latest Fortune Global 500 listings, ranked at the 98th position. IndianOil's vision is driven by a group of dynamic leaders who have made it a name to reckon with. In this section, read about IndianOils business and its spread across financial performance, special initiatives and recognitions & awards that have come its way. In order to ensure greater efficiency and smooth working in the petroleum sector , Government of India decided to merge the refineneries and the distribution activities. The Indian Refineries and Indian Oil Company were combined to form the giant Indian Oil Corporation (IOCL) on 1St September 1964, with its registered office at Bombay. In 1967, the pipeline division of the corporation was merged with the refineries division. Research &Development of Indian Oil Came into Existence in 1972. In October 1981 Assam Oil Company was nationalized and has been amalgamated with IOCL as Assam Oil Division (AOD)

Beginning in 1959 as Indian Oil Company Ltd., Indian Oil Corporation Ltd. was formed in 1964 with the merger of Indian Refineries Ltd. (established 1958). Indian Oil and its subsidiaries account for 49% petroleum products market share, 40.4% refining capacity and 69% downstream sector pipelines capacity in India. As the flagship national oil company in the downstream sector, Indian Oil reaches precious petroleum products to millions of people everyday through a countrywide network of about 34,000 sales points. They are backed for supplies by 166 bulk storage terminals and depots, 101 aviation fuel stations and 89 Indane (LPGas) bottling plants. About 7,100 bulk consumer pumps are also in operation for the convenience of large consumers, ensuring products and inventory at their doorstep. Indian Oil operates the largest and the widest network of petrol & diesel stations in the country, numbering over 17,600. It reaches Indane cooking gas to the doorsteps of over 50 million households in nearly 2,700 markets through a network of about 5,000 Indane distributors. Indian Oils ISO-9002 certified Aviation Service commands over 62% market share in aviation fuel business, meeting the fuel needs of domestic and international flag carriers, private airlines and the Indian Defense Services. The Corporation also enjoys a do4 minant share of the bulk consumer business, including that of railways, state transport undertakings, and industrial, agricultural and marine sectors.

LOCATION
Registered Office : Indian Oil Bhavan, G-9, Ali Yavar Jung Marg, Bandra(East), Mumbai-400 051 Corporate Office : 3079/3, Sadiqnagar, J B Tito Marg, New Delhi- 110 049

Refineries Division
Head Office : SCOPE Complex, Core-2 7, Institutional Area, Lodhi Road New Delhi -110003 Barauni Refinery: P.O. Barauni Oil Refinery, Dist. Begusarai -861 114 (Bihar) Gujarat Refinery: P.O. Jawahar Nagar, Dist. Vadodara -391 320(Gujarat) Guwahati Refinery : P.O. Noonmati, Guwahati-781020 (Assam) Haldia Refinery: P.O. Haldia Refinery Dist. Midnapur-721 606 (West Bengal) Mathura Refinery: P.O. Mathura Refinery, Mathura -281 005(Uttar Pradesh) Panipat Refinery: P.O. Panipat Refinery, Panipat-132140(Haryana) Bongaigaon Refinery: P.O. Dhaligaon Dist. Chirang, Assam - 783 385

Marketing Division
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 Head Office: G-9, Ali Yavar Jung Marg, Bandra (East), Mumbai -400 051 Northern Region: IndianOil Bhavan, 1, Aurobindo Marg, Yusuf Sarai New Delhi -110016 Eastern Region: IndianOil Bhavan, 2, Gariahat Road, South (Dhakuria) Kolkata -700 068 Western Region: 254-C, Dr. Annie Besant Road, Worli Colony, Mumbai -400 025 Southern Region: IndianOil Bhavan 139, Nungambakkam High Road

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SALIENT FEATURES Indias Most Trusted Fuel Pump Brand (ET. Brand Equity-AC Nielson Survey 2007) Indias largest commercial enterprise with leading market shares in downstream segment of oil business. Highest ranked Indian corporate in Fortunes list of worlds 500 largest Companies (2008::116th) 20th largest petroleum company in the world- Fortune Global500 Local Currency Rating of A1+(short-term) & LAA+(long-term) from ICRA Indias No.1 corporate in annual listing of Business Standards (BS 10000), Business India(BI)

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VISION, MISSION AND VALUES

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Vision A major diversified, trans-national, integrated energy company, with national leadership and a strong environment conscience, playing a national role in oil security & public distribution. Mission To achieve international standards of excellence in all aspects of energy and diversified business with focus on customer delight through value of products and services, and cost reduction. To maximize creation of wealth, value and satisfaction for the stakeholders. To attain leadership in developing, adopting and assimilating state-ofthe-art technology for competitive advantage. To provide technology and services through sustained Research and Development. To foster a culture of participation and innovation for employee growth and contribution. To cultivate high standards of business ethics and Total Quality Management for a strong corporate identity and brand equity. To help enrich the quality of life of the community and preserve ecological balance and heritage through a strong environment conscience.

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VALUES Care stands for:Empathy Understanding Co-operation Empowerment Innovation stands for:Creativity Ability to learn/absorb Flexibility Change Passion stands for:Commitment Dedication Pride Inspiration Ownership Zeal & Zest Trust stands for:Delivered Promises Reliability Integrity Truthfulness Transparency

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PRODUCT RANGE
PRODUCTS
The Products produced by IOCL are broadly classified into the following cases:Class A:

Class A: 1. Liquid Petroleum Gas (L.P.G) Class B: 2. Motor Spirit (M.S.)/Gasoline 3. Super Kerosene Oil (S.K.O) 4. High Speed Diesel Oil (H.S.D) Class C: 5. High Speed Diesel Oil (H.S.D) 6. Furnace Oil (F.O.) 7. Bitumen 8. Naphtha 9. Aviation Turbine Fuel (A.T.F) Class D: 10. Mineral Turpentine Oil (M.T.O) 11. Jute Batching Oil (J.B.O) 12. Light Diesel Oil (L.D.O) 13. Unleaded petroleum 14. Lubes & Greases 15. Fuel & Feedstock 16. Super Kerosene Oil

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ORGANIZATIONAL STRUCTURE

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 STRUCTURE OF EASTERN REGION OFFICE:G.M Regional Service(Eastern Region) G.M Aviation G.M Human Resource G.M Finance STRUCTURE OF STATE OFFICE:There are 16 state office all over India. Under each state office there are divisional officers, state officers, plants, terminal & depots. STRUCTURE OF WEST REGIONAL STATE OFFICE (W.B.S.O):ED W.B.S.O CRSM Retail Sales D.G.M Consumer Sales D.G.M Finance Sales D.G.M L.P.G D.G.M Operations D.G.M Lube D.G.M Law STRUCTURE OF HR DEPARTMENT UNDER W.B.S.O:One senior HR Managers One HR Officer AREA OF OFFICES UNDER W.B.S.O:W.B.S.O has three area offices: 1. Durgapur area offices. 2. Kolkata area offices. 3. Siliguri area offices.

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 L.P.G UNDER W.B.S.O:The L.P.G plants under W.B.S.O are situated as the following places: 1. Budge Budge 2. Durgapur 3. Kalyani 4. Malda 5. Rangpo 6. Raninagar 7. Port Blair DEPOTS UNDER W.B.S.O:1. Hasimara 2. Kantapukur 3. Malda 4. Rangpo

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MARKETS IndianOil has one of the largest petroleum marketing and distribution networks in Asia, with over 34,000 marketing touch points. Its ubiquitous petrol/diesel stations are located across different terrains and regions of the Indian subcontinent. From the icy heights of the Himalayas to the sun-soaked shores of Kerala, from Kutch on India' western tip to Kohima in the verdant North East, IndianOil is truly 'in every heart, in every part' IndianOil's vast marketing infrastructure of petrol/diesel stations, Indane (LPG) distributorships, SERVO lubricants & greases outlets and large volume consumer pumps are backed by bulk storage terminals and installations, inland depots, aviation fuel stations, LPG bottling plants lube blending plants amongst others. The countrywide marketing operations are coordinated 16 State Offices and over 100 decentralised administrative offices. Several landmark surveys continue to rate IndianOil as the dominant energy brand in the country and an enduring symbol for high quality petroleum products and services. The heritage iconic association that the brand invokes has been built over four decades of commitment uninterrupted supply line of petroleum products to every part of the country, and unique products that cater not only to the functional requirements but also the aspirational needs of millions customers. IndianOil has been adjudged India's No. 1 brand by UK-based Brand Finance, an independent consultancy that deals with valuation of brands. It was also listed as India's 'Most Trusted Brand'in the 'Gasoline' category in a Readers Digest - AC Nielsen survey. In addition, IndianOil topped The Hindu Business line's "India's Most Valuable Brands" list. However, the value of IndianOil brand is not just limited to its commercial role as an energy provider but straddles entire value chain of gamut of exploration & production, refining, transportation & marketing, petrochemicals & natural gas and downstream marketing operations abroad. IndianOil national brand owned by over a billion Indians and that is a priceless value.

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HR DEPARTMENT OF INDIAN OIL CORPORATIONS LIMITED

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HR DEPARTMENT OF IOCL The human resources in Indian Oil Corporation was 31,675 strong as on 31.03.2002, of which 9,728 are in the Officers cadre and 21,947 are in the Staff cadre. There are 5,672 employees from SC category and 2,097 from ST category. The SC and ST employees constitute 24.53% of the total employees strength. There are 2,387 women employees, out of whom 692 are in the Officers carde and 1,695 in Staff cadre. The women employees constitute 7.54% of total employees strength. The HR department at IOCL Refineries Division subdivided into the following areas:(i) Personnel Department:The main function of personnel department is to ensure that the all information related to employees is maintained and updated, to provide various benefits to employees under the rules, to frame policies etc. The main sections of the personnel department are as following:(a) HRD:- This section looks after the manpower recruitment of the refinery division. It is concern with recruitment, promotion, transfers of employees across the division. (b) Policy Section:- Policy section is concerned with framing and modification of policies. It also books into HR and legal matter. (c) Establishment :- Establishment section maintains the personal data of employee /individuals and facilitates providing various employee benefits such as medical benefits, leave , pay, post retirement benefits etc. Objectives of Personnel Department of IOCL :The primary objectives of Personnel Department are as under:

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(i) Design and develop an organizational structure with well defined relationships commensurate with the business plans and corporate strategies; (ii)Promote and develop co-operative attitude amongst employees by fostering harmonious relations at all levels and inculcate sense of belonging; (iii)Evolve progressive and pragmatic personnel policies, procedures and practices and ensure its uniform interpretation and judicious implementation; (iv)Develop the capability and proficiency of employees and their advancement through appropriate training and continuous knowledge updating to face corporate challenges and new technologies; (v)Promote and inculcate the culture of employees participation in management; (vi)Ensure compliance of social and statutory obligations and Govt. directives; and (vii) Inculcate productivity consciousness amongst employees. (viii) Administration of Electronic Performance Management System and Productivity Incentive Schemes. (ix)Change agent to new interventions.

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FUNCTIONS OF PERSONNEL DEPARTMENT OF IOCL:(i) STAFFING: Manpower planning. Determine the organizational structure and optimize manpower to effectively meet Companys objective. Job description. Recruitment. Personnel records. Promotion. Transfer. (ii) PERSONNEL MAINTENANCE:

Motivation. Performance Appraisal. Recreation. Communication. Employee amenities - canteen, clubs etc.\ Safety. Medical Services. Security.

(iii) DEVELOPING THE HUMAN RESOURCE: Induction and apprentice training. Training & development of employees. (iv) INDUSTRIAL RELATIONS: Productivity Bargaining. Grievance Handling. Discipline Administration. Providing joint consultative machinery-Joint Management Councils.

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(v) COMPENSATION : Wage & Salary surveys & controls. Negotiations. Incentives / bonus. (vi) PERSONNEL POLICY & PLANNING: Defining Organizational goals, Policy guidelines and strategies.

Formulating & implementing Personnel policies.

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RESPONSIBILITIES OF PERSONNEL DEPARTMENT OF IOCL:It will be the responsibility of Personnel Department at Refineries HQ to formulate, under the overall direction of Director (Refineries), the Refineries Division's personnel policies and programes and to communicate the same to the Units. Personnel Department at Hrs. and P&A Departments at each unit shall provide assistance and counsel to other departments on personnel matters. Personnel management essentially being a staff functions, Personnel Department's role will be that of a staff department with emphasis on its advisory character in all matters connected with personnel activities except in respect of the promotion of welfare measures which will be the executive responsibility of this Department. Personnel Department shall also be responsible for ensuring compliance with the provision of various labour laws and other statutes.

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(ii) Administration Department :The function of administration department is to provide services related to administration and welfare of employees. Some of the main areas looked after for administration department are:Allotment of quarters/ accommodation to employees. Arranging vehicles for official requirements. Implementation of hindi language in various official activities. Supervising canteen services. Providing loans/ advances to employees for house. Community development programs. Organizing functions. Maintaining stores and dispatch activities. Objectives of Administration Department of IOCL:(i) The primary objective of the Department is to assist the Management in implementation and execution of various administrative decisions taken by the Board of Directors of the Corporation. For this purpose, it acts as a Secretariat of the Director (Refineries) / Director In-charge (AOD) .Apart from it, the Department also functions as Service Department to the internal and external customers and provides necessary assistance on general administrative, welfare and security matters to the entire Refinery Units including AOD, Kolkata and Mumbai offices as well as other Departments at Headquarters. (ii) Coordination is another important task of the Department. For this purpose, the Department maintains various records and statistics and handles correspondence with the Ministry, Government agencies, Parliamentary bodies, other organizations and VIP references. (iii) The Department also renders assistance to Refinery Units and various departments at the Headquarters in maintaining liaison with various Ministries of the Government of India, Lok Sabha Secretariat etc.
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(iv) The Department aims at achieving the highest level of efficiency and productivity with utmost speed and accuracy. FUNCTIONS OF ADMINISTRATION DEPARTMENT OF IOCL:Policy Matters : (i) Delegation of Powers. (ii) Implementation of Board's decisions. (iii)Rajbhasha implementation. (iv)Administration of House Building Advance, Conveyance Advance, Festival Advance, reimbursement of conveyance expenses, etc. (v)Office and residential accommodation (company owned / company lease/self-lease). (vi) Furniture and computers on hire for officers at residence. (vii) Furniture / computers for office at residence of Sr. Executives. (viii) Disposal of unserviceable materials including vehicles. (ix) Maintenance of office records. (x) Transport facilities. (xi) Security of Company Assets & Personnel. (xii) Provision of Club memberships/ credit cards. (xiii) Schools in Refinery Townships. (xiv) Community Development

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Coordination: (i) Reply to Parliament Questions. (ii) Reply to VIP references. (iii) Furnishing information required by Deptt. Of Public Enterprises, (iv) Estimates Committee, Parliamentary Committee on Public (v) Undertakings and other such Committees. (vi) Coordination with Ministries. Legal Matters: (i) Providing assistance in processing of contracts and agreements. (ii) Land/Houses acquisition matters. (iii) Office Services Contracts. (iv) Bonds and Mortgage deeds. (v) Lease agreements. (vi) Liaison with Solicitors for obtaining legal advice.

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General Administration: (i) House keeping of office space. (ii) Dak receipt, distribution and dispatch. (iii) Domestic Rail and Air bookings. (iv) Control of Staff/Hired Cars including maintenance. (v) Transportation Hiring of Cars & Buses. (vi) Photocopiers / Digital Document Centres / Fax Machines / Cellular phones. (vii) Office furniture and equipments. (viii) Stationery and Stores. (ix) International travel arrangement including Foreign exchange. (x) Allotment of office space / residential accommodation. (xi) Maintenance and Administration of Guest Houses. (xii) Lodging arrangements for officers on tour. (xiii) Communication Services maintenance. Civil Defence, Security & Safety: (i) Territorial Army. (ii) Security measures in Refinery Units & HO including CO. (iii) Induction of CISF (iv) Civil Defence Measures (v) Issue of identity cards. (vi) Fire fighting. Welfare Activities: (i) Maintenance and Administration of Holiday Homes for officers at Shimla & Manali and for workmen at Manali, Darjeeling, Goa and Mussoorie. (ii) Maintenance and Administration of Medical Transit Camps, Transit accommodation, etc. (iii) Canteens.
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(iv) Sports (v) Coordination jobs relating to official functions/gatherings.

Maintenance of Assets (i) Maintenance of land / property records. (ii) Servicing and maintenance of office equipment viz. lifts, air conditioners, staff vehicles, photocopiers, Digital document centers, Mobile phones etc. purchased by the Corporation. (iii) Operation and maintenance of electrical installations, water supply, water storage tanks, neon signs etc. (iv) Maintenance of office buildings, company owned / leased residential accommodation, Townships and Guest Houses. (v) Communication Services like Fax, MTNL Telephones, Mobile phones, etc.

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PERFORMANCE MANAGEMENT SYSTEM

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Performance Management System (PMS) is one of the important components in systemic process of human resource management. The information obtained through performance management system provides foundations for recruiting and selecting new hires, training and development of existing staff, and motivating and maintaining a quality work force by adequately and properly rewarding their performance. Without a reliable performance appraisal system, a human resource management system falls apart, resulting in the total waste of the valuable human assets a company has. There are two primary purposes of performance management system: evaluative developmental. The evaluative purpose is intended to inform people of their performance standing. The collected performance data are frequently used to reward high performance and to punish poor performance. The developmental purpose is intended to identify problems in employees performing the assigned task. The collected performance data are used to provide necessary skill training or professional development. In order for performance appraisal information to be useful, the PMS system must be able to consistently produce reliable and valid results. Measurement items in the performance appraisal system must be designed in such a way that the results of rating are consistent regardless of the raters and the timing of the assessment. The purpose of performance appraisal must be clearly communicated both to raters and ratees, because their reactions to the appraisal process are significantly different depending on the intended purpose. Failure to inform about the purpose or misleading information about the purpose may result in inaccurate and biased appraisal reports.

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In order for performance information to be useful, the PMS system must be able to consistently produce reliable and valid results. Measurement items in the performance management system must be designed in such a way that the results of rating are consistent regardless of the raters and the timing of the assessment.

Another critical criterion in developing a PA system is the validity of the measurements. It is important to make sure that the appraisal items are really measuring the intended performance or target behavior. If they are not, the PM system encourages the wrong kind of work behaviors and produces unintended, frequently negative, organizational outcomes. For instance, if the number of traffic violation tickets issued is an item in performance appraisal of police officers, it encourages them to sit on a corner of a street and pull over as many violators as possible during heavy traffic hours. The true purpose of a police force, which is public safety, may become secondary to issuing a large number of tickets for many officers. What to Evaluate? The first important step in developing a PM system is to determine which aspects of performance to evaluate. The most frequently used appraisal criteria are traits, behaviors, and task outcomes. (a) Traits :- Many employees are assessed according to their traits, such as personality, aptitudes, attitudes, skills, and abilities. Traits are relatively easy to assess once a rater gets to know ratees. But traits are not always directly related to job performance. Trait-based assessment lacks validity and thus frequently raises legal questions. (b) Behaviors :- For many jobs, performance is so broadly defined or so conceptual in nature such as ensuring public safety in the police de partmentthat it is hard to come up with reliable performance measures. In such cases, desirable behaviors can be identified and assessed in the belief that such behaviors lead to successful performance. Such
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behavior-focused assessment encourages employees to adopt desirable behavioral patterns in the workplace. (c) Task outcomes :- When information about task outcomes is readily available, it is the most appropriate factor to use in evaluating performance. When an organization has a clear and measurable goal as in the case of a sales force, this approach is recommended. However, it has its own pitfalls. There is a problem if employee behaviors are not directly related to the task out-come. Too narrow a focus on measuring out-come only sometimes results in unintended negative consequences. When sales staff narrow focus on target sales figures to increase their performance measure, for example, they are encouraged to help a few large-volume customers and to ignore many smaller buyers. This may result in poor customer service on the floor. Who Evaluates? The most common raters of performance are employees' immediate supervisors, who are usually in the best position to know and observe the employees' job performance. They are also responsible for employees work. Their evaluation is a powerful tool in motivating employees to achieve successful and timely completion of tasks. However, as a result of working together over a long time with the same employees, the immediate supervisor may build up a fixed impression about each employee and use it every time he or she has to evaluate performance. Some companies find that subordinates are in an excellent position to observe and evaluate their managers' performance, especially when it comes to measuring effective management of their department. While there is merit in asking subordinates to evaluate how they are managed, such evaluation may turn into a popularity contest. Accurate and objective assessment may not be obtained if employees are fearful of possible retaliation from their supervisors. Anonymity of the evaluators is key to the successful use of subordinates for objective evaluation. Other raters who are frequently used in some companies include peers, customers, and the employees themselves. Peer evaluation is particularly useful when teamwork and collegiality are important to successful task performance. Peer pressure is sometimes a powerful
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motivator in encouraging teamwork among members. Customer satisfaction is vital to a company's success and can be used in performance management. Many companies systematically collect performance information from customers, typically through anonymous surveys and interviews. Self-assessment is also a useful means, especially when the performance appraisal is intended to identify the training and development needs of potential employees. Organization exists to attain certain goals and objectives through a effort. Some form of control and co-ordination is needed to facilitate the achievement of such goal. Some form of control and co-ordination is needed to facilitate the achievement of such goal. Some form of control and co-ordination is needed to facilitate the achievement of such goal. Control devices in the form of performance appraisals were invented by the corporate world to accomplish their professed objectives. Performance management system is systematic and objective way of judging the relative worth or ability of an employee in performing his task. It is a process of evaluating an employees performance on a job in terms of its requirement. In industry, appraisal is a systematic evaluation of performance by supervisors or other familiar with their performance because employers are interested in knowing about employee performance. Employee also wishes to know their position in their organization. Performance mgt helps to identify those who are performing their assigned tasks well and those who are not and the reason for such performance. A caution has to be exercised as the assessment of an individuals performance is a delicate task since it is intricately enmeshed in the personality make up of one who is assessing the performance and having profound effect on the individual who is being assessed. It is here that the weakness of human judgment comes to the force. In the field of human behavior and performance, the measurement or appraisal cant take the form of weighing on a scale certain material object or accurately temperature with the instrument. Thus judgment as the basis of the appraisal can be subject to numerous drawbacks connected with the perceptions ones own bias, the social prejudice, unconscious urges and the fact that it is impossible to arrive at categorically absolute judgment in this sphere.

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Performance management system concerns with mainly three purposes: Administrative decisions i. e. Promotions, transfers and

allocation of financial rewards.

Employee development i.e. identification of training and

developmental needs and performance feedback.

Personnel research i. e. identification of training and

developmental needs and performance feedback. Therefore a good performance appraisal system should aim at facilitating the communication between two officers and developing empathy, mutuality and appreciation for one anothers problem.

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PURPOSE OF PERFORMANCE APPRAISAL: To help determine promotions and transfer decisions. To identify area for further training. To help in deciding the compensation plan. To uncover the potential of the person. To decide about confirmation or termination during probationary period.

ADVANTAGE OF SYSTEMATIC APPROACH TO PERFORMANCE APPRAISAL:(1) If it is possible to establish an atmosphere of mutual trust and confidence an effective performance appraisal system will help to build up employee morale. (2) It will stimulate employee participation in decision making affecting his own work. Management By Objectives is an established criterion as the standard of performance is established by the superior in consultation with employee concerned. Employee interest to improve his performance will help the management in achieving the organizational goals. (3) It will also help the management in rationalizing a job-oriented level of individual performance. Once the performance level is satisfactorily established, the standard of performance could also move upward leading to productivity. (4) Employee performance can be utilized for placement, job-rotation, transfers, lay-offs, dismissal and discharges demotions.

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(5) Such appraisals can also serve as a guide in properly administering wage-and salary administrations.

In addition to having an impact on productivity, an effectively designed performance appraisal form servers as a contract between the organization and the employee. This contract acts as a control and evaluating system, better enabling performance appraisal to serve the following performance: Management development: Focuses on the future by identifying and preparing individuals for increased responsibility or by establishing remedial training programs. Performance measurement:Emphasis the past, trying to determine the relative value of employee performance; is useful for promotion, transfer, compensation and layoff decision. Feedback:Outlines what performance is expected from employee. HR planning:Audits management talent to evaluate the present supply of HR for replacement planning. Communication:Provide a format for the dialogue between superior and subordinate and improves understanding of personal goals and concerns; can also increase the trust between the rater and rate.

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PERFORMANCE APPRAISAL IN IOCL

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BRIEF ON PERFORMANCE APPRAISAL IN IOCL With a view to appraising each employee, helping the management in placement, transfer and promotion, and deciding about his training needs. The following systems are in practice in IOCL. (i) e-PMS (Electronic Performance Management System) for officers. (ii) CRs (Confidential Reports) for non officers. Assessment period The assessment period for recording the performance of officers is financial year (1 April to 31 March). For staff it is calendar year. Employees having rendered more than three months service in a particular year has been separated before end assessment years are eligible and rated through ePMS System. PROCESS OF PERFORMANCE APPRAISAL SYSTEM FOR OFFICERS:Three persons participate actively in Performance Appraisal System. Who are: (i) Appraisee: The employee, who is to be evaluated. (ii) Appraiser: Supervisor, who evaluate the performance of Appraiser.
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(iii) Reviewer: Sr. executives, who check the evaluation process.

Apraisee fills a form in the starting of financial year which includes targets to be achieved by that particular employee. Then Appraiser and Appraisee discuss them, reach an agreement and put the agreed goals in writing. Then they plan how to achieve these goals. On the basis of priority they decide activities to be done to achieve the goals. At the end of financial year, Appraisee evaluates himself and gives marks out of 5. Then Appraiser evaluates the Appraisee and gives him marks out of 5. These 3 marks signify: 3- Outstanding 2-Average. 1-Needs improvement

Appraiser evaluates Appraisee on the basis of following areas: (i) KRA (Key Result Area) is basic area to evaluate employees performance. KPI (Key Performance Indicator): On the basis of KRA, Appraiser gives measurable grades to Appraisee is known as KPI. It may be in terms of marks or percentage. On the basis of difficult KRA, Appraiser decide the stretch for each KPI. (ii) Competency Skills such as Intelligence, Communicative Ability, Decisiveness, Human Skills, Teaching Skill, Executive Skills, Leadership Skills, Negotiation Skills, and Creativity Skills.

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(iii) Potential: It shows Employees ability to do the work and to take up higher responsibilities in future. (iv) Values: It shows how much values of individual match to the objectives of organization.

CHAPTER-2 RESEARCH METHODOLOGY

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Research Methodology
Research Methodology may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying the research problem along with the logic behind them. Following are the steps and techniques, which were used by the investigator for methodology:2.1- UNIVERSE OF STUDY: Universe covers the whole defined field on which the study is based. The present study is carried in Mathura Refinery located on the outskirts of Mathura city, when one travel from Delhi to Agra. The environment of this area is peaceful with green atmosphere. Various products including petrol and diesel are manufactured from crude oil. The working staff of Mathura Refinery is. The universe of study was all working members including both staff and officers.

2.2 RESEARCH DESIGN: Designing is preliminary step in every activity. It provides a picture for the whole before starting the work. The researcher had used exploratory research for gaining experience. For this relevant literature related with the subject had been carried out. It also experience survey, selection of respondents, paper questioning etc.

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2.2.1- SAMPLE SIZE: Sample size depends on the nature of the universe, so it should represent the whole universe without any bias. As there is huge manpower in Mathura Refinery, so it was very difficult to study each and every individual. The limitation of time and money has not permitted the researcher to study the whole universe. So the researcher has studied only 50 employees of Mathura Refinery and covered nine departments that werePersonnel & Administration, Finance, Production, Fire and Safety, Mechanical, Planning and Maintenance, Power and Utilities, Instrumentation and Material department which represent the whole staff of the organization. 2.2.2- SAMPLING METHOD: Out of various types of sampling methods, the researcher had used Random Sampling, as it was both, time saving as well as easy method of picking up the sample. As random sampling is also of many types, so the researcher had used stratified random sampling for study because it was more reliable. In this method, whole population that is required for study is divided into different groups and sample were selected from them. 2.3 QUESTIONNAIRE DESIGN: The questionnaire is a structured technique for collecting primary data in a survey. It is a series of written or verbal questions for which the respondent provides answers. A well-designed questionnaire motivates the respondent to provide complete and accurate information.

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2.3.1-Steps in Developing the Questionnaire:The following were the steps in developing the questionnaire the exact order may vary somewhat.

Determining which information is being sought. The information being collected was related to Performance Appraisal. Choosing a question type (structure and amount of disguise and method of administration, written form, e-mail, or web form). The method of administration was of a written form. Determining the general question content needed to obtain the desired information. Determine the form of response. A meeting with the respondent was fixed so that the information apart from the questions in the questionnaire could be collected to get more data on prospective clients. Choose the exact question wording. The wording play major role in the questionnaire as they decide how well they can attract the attention of the client. Arranging the questions into an effective sequence. These quenching of the questions decides the approach to be followed and he stand which the respondent is going to take. Specifying the physical characteristics of the questionnaire (paper type, number of questions per page, etc.). Test the questionnaire and revise it as needed. Many mock interviews were conducted and the questionnaire was refined many at times in response to suggestions from the project leader.
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2.3.2 -Physical Characteristics of the Questionnaire: Physical aspects such as page layout, font type and size, question spacing etc. were considered. The layout of the questionnaire always has a impression on the outputs as are to be arranged or produced by the respondent. 2.3.3.-Test and Revise the Questionnaire: The questionnaire was administered by using mock interviews in order to get better feedback on problems such as ambiguous questions. Then it was tested in the same way as it was to be administered. Different respondents answer the same question differently. One hopes that the differences are due to real differences in the measured characteristics but that often is not the case.

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2.4 LIMITATIONS

Though the data collected is proper but still there were certain limitations which were hindrance in making the data more appropriate. The limitations were:1. Because of shutdown activities, employees were engaged with their shutdown jobs and thus were not very readily available. This would have hampered the flow of input in someway. 2. As the questionnaire method was followed, people were not very comfortable in releasing the information. 3. As the questionnaire method was followed, limitations would have creped in while administering the same.4.Many a time, employees were very reluctant in releasing the information, considering it to be confidential. Thus, it was a hindrance in study.

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CHAPTER-3 SWOT ANALYSIS OF IOCL

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The corporation is a big organization and the Main endeavor for it is to be ahead of the competitors. SWOT Analysis of the corporation gives the following results:STRENGTHS & WEAKNESSES

Strengths: Wide field network. Dealership network to assist in our direct efforts. Up-country storage nearer to the market. Lower cost of production from old refineries. Strength on international trade. Seven existing refineries.

Weaknesses: Lack of dedicated organizational set up for support system like

Finance etc. Manpower reduction because of downloading at head office, Regional Offices and field offices.

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OPPORTUNITIES & THREATS Opportunities: Liberalized market scenario. Lack of so many refineries producing Free Trade Products by other marketing companies. Capability to import and market shortfall products.

Threats: Emerging players like Reliance Petroleum Ltd.,Essar oil and

MNCs, etc. Dismantling of Administered Price Mechanism. Penetration of International giants into marketing. Old traditional production techniques.

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CHAPTER-4 FINDINGS

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FINDINGS
IndianOil operates the largest and the widest network of fuel

stations in the country, numbering about 19,463 (15,946 regular ROs & 3,517 Kissan Sewa Kendra). It has also started Auto LPG Dispensing Stations (ALDS). It supplies Indane cooking gas to over 62.4 million households through a network of 5,456 Indian distributors. IndianOil is the highest ranked Indian company in the Fortune 'Global 500' listing, 98th position in 2011. It is also the 18th largest petroleum company in the world and the No. 1 petroleum trading company among the National Oil Companies in the Asia-Pacific region. Indian Oil also supports art, culture, music and dance under the banners of Indian oil sangeet shabha, Indian oil art exhibitions. It has also worked towards better education in India by encouraging special scholarships among girl students and disadvantaged groups hence trying to reduce drop out rates in higher secondary levels. Every year a fixed portion of Indian Oil's profit is set aside for community welfare and developmental programs. It has also concerted social responsibility programs with communities. The company has a number of community focused initiatives such as development in health, education, sanitation. It also includes family welfare, providing portable water, women empowerment and welfare of schedule caste and schedule tribe beneficiaries.

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CHAPTER-5

CONCLUSION

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CONCLUSION
From all the above information with the help of which I have been able to make my summer training project I draw a conclusion that the performance management system at IOCL has gradually developed over years at IOCL from hand written records to the computerized management systems which is commonly known as the e-PMS at the IOCL. This project also shows that the e-PMS policy at IOCL is of a great importance for the IOCL itself and the employees of the IOCL. It is found that during the e- PMS policy the employees are assessed on regular basis which helps to keep a regular check on the employees and by the performance appraisal methods the employees are assessed only at the end of year which helps them to complete their goals at last minute time also. I also want to tell that the employees had a difficulty when this method was introduced in the organization to adapt this method but later on it made work easy for them as more and more handy records are not maintained. I would also like to come to the point that the performance management system at IOCL is better than other PSUs. The performance management system at IOCL is transparent and clears all the problem of HR department. Its more simple to understand the working environment of IOCL than NTPC because the self assessment procedure of IOCL specifies all the requirements to manage the performance of employees working at IOCL. It is also seen by the comparison made between IOCL and NTPC that both the Organizations have similar work environment but IOCL is providing with the Employees more career oriented work environment which help employees to grow and perform more tasks as compared to the NTPC. The NTPC rate their employees on the basis of 4 factors while the IOCL rate their employees on a 3 point scale which is easier to understand and rate the performance of each employee on a similar basis. As the working environment of NTPC says that no career plans are made by the employees even they are not allowed to make, IOCL contradicts this activity of NTPC by allowing their employees to make career oriented plans an plans which are helpful in future so that they provide with employees more scope to grow. One more point of difference between IOCL and NTPC is that IOCL provides their employees with some workshops, training and counseling which help
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them to grow whereas NTPC does not conduct any. By the swot analysis we got to know that despite of being so powerful in market by possessing strengths like wide field network, low cost of production and many more still there are some threats to the PSU like emergence of more and more big companies like Reliance ltd and lesser share in market but overall IOCL is still the biggest and most powerful PSU in oil production. HIGHLIGHTS After completing the research study on 120 employees (officers) of Mathura Refinery regarding effectiveness of PERFORMANCE APPRAISALSYSTEM, my suggestions would be that in future the research on IOCL should be such that:

The subordinates are encouraged to accept more responsibilities

and challenges.
The subordinates need to be appraised more frequently on

their positive contribution.

The strength and limitations of the subordinates should be

realized, in which the problems faced by the subordinates are taken in a systematic way and in which the supervisor attempts to understand the problems of the subordinates.
Subordinates should be encouraged to acquire new capabilities

and to handle more responsibilities.

To identify developmental needs in which the employee is

prepared for discussion through self-assessment.

Identify factors that are contributed to employees performance

and the factors that hinder it.

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RECOMMENDATIONS AND SUGGESTIONS

The following are the recommendations/suggestions which came into light after the completion of the study:1. People are not very much aware of filling the e-PMS, so more number of training programs should be there. 2. Emphasis on feedback should be there. 3. All employees should be aware of promotion policies of IOCL and the link of their promotions with the performance appraisal system. 4. Post performance appraisal measures should be strengthened so that employees get to know their areas where focused improvement is required.

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APPENDIX

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QUESIONAIRE
4) Are you aware of the performance appraisal system in your organization? . YES b. NO

5) Are you aware of the periodicity of the performance appraisal? . YES b. NO

6) Whether feedback is provided to you by your immediate supervisor regarding your assessment? . YES b. NO

7) Are you aware of the factors that govern the performance appraisal system? . YES b. NO

8) In your opinion what should be the periodicity of performance appraisal of officers. . Quarterly b. Half-Yearly c. Annually 9) In your opinion what feedback should be provided to you by your immediate supervisor regarding your assessment?

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10) In your opinion what factors should govern the performance appraisal system? a. Cost consciousness b. Time schedule c. Coping high pressures d. Co-operation e. Adaptability change/ receptive new ideas f. Planning and organizing g. Willingness to accept responsibility h. Initiative i. Communication j. Leadership k. Courage of conviction l. Volume of work m. Quality of work n. Dependability . People awareness p. Control q. Problem awareness and decision making r. Training and development of subordinates
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11) In your opinion what are critical factors of Performance Appraisal? 12) In your opinion whether the performance appraisal system meets the objective meets the objective of fair assessment? . YES b. NO

13) In your opinion performance appraisal is used for the following

Promotion Training Organization effectiveness Development of officers Transfers Salary Adjustments Other benefits

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