Compensation Management SYNOPSIS

A PROJECT REPORT “COMPENSATION MANAGEMENT”: “AN ANALYSIS IN RESPECT

OF SALARY WITH 9TH PAY REVISION IN IOCL

Submitted by

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

Submitted to Authorized Learning Centre

CAREER POINT, MATHURA CODE – 00979

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

“COMPENSATION MANAGEMENT”: “AN ANALYSIS IN RESPECT

OF SALARY WITH 9TH PAY REVISION IN IOCL Through out my report, I have tried my level best to be original & present my own findings. I would also like to owe special thanks to all my friends for the efforts they have put in for making this project a reality & giving its present shape. Whole experience was an eye opener for me. I accept the sole responsibility for any possible error of omission & commission. I express my deep sense of respect to all Institute staff of CAREER POINT, I am also thankful to my parents for their support during my research period.

DINESH KUMAR RollNo.-1208020221

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STUDENT DECLARATION

I hereby declare that the project report entitled “COMPENSATION MANAGEMENT”: “AN ANALYSIS IN RESPECT

OF SALARY WITH 9TH PAY REVISION IN IOCL Submitted in partial fulfillment of the requirement for the degree of MASTERS OF BUSINESS ADMINISTRATION (HRM) to Sikkim Manipal University, Gangtok is my original work & not submitted for the award of any other degree, diploma, fellowship, or any other similar title or prizes.

DINESH KUMAR 1208020221

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Examiner’s Certification

The project report of

DINESH KUMAR

“COMPENSATION MANAGEMENT”: “AN ANALYSIS IN RESPECT

OF SALARY WITH 9TH PAY REVISION IN IOCL

Is approved and is acceptable in quality and form.

Internal Examiners Examiner

External

Name

Name

Qualification

Qualification

4

University Study Center Certificate

This to certify that the project report entitled

“COMPENSATION MANAGEMENT”: “AN ANALYSIS IN RESPECT

OF SALARY WITH 9TH PAY REVISION IN IOCL Submitted in partial fulfillment of the requirement for the degree of MASTERS OF BUSINESS ADMINISTRATION to Sikkim Manipal University, Gangtok India, this report has been submitted for the award of any other degree, diploma, fellowship, or any other similar title or prizes and that the work has not been published in any journal or magazine.

DINESH KUMAR 1208020221

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TABLE OF CONTENTS

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

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

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

monetary and non-monetary

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

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

Direct Compensation Indirect Compensation Need of Compensation Management 

A good compensation package is important to motivate the employees to increase the organizational productivity.



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



Salary is just a part of the compensation system, the employees have other psychological and self-actualization needs to fulfill. Thus, compensation serves the purpose.



The most competitive compensation will help the organization to attract and sustain the best talent. The compensation package should be as per industry standards.

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Strategic Compensation

Strategic compensation is determining and providing the compensation packages to the employees that are aligned with the business goals and objectives. In today’s competitive scenario organizations have to take special measures regarding compensation of the employees so that the organizations retain the valuable employees. The compensation systems have changed from traditional ones to strategic compensation systems.

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

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

Types of Compensation Management

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

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

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

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

INDIRECT COMPENSATION

ndirect compensation refers to non-monetary benefits offered and provided to employees in lieu of the services provided by them to the organization. They include Leave Policy, Overtime Policy, Car policy, Hospitalization, Insurance, Leave travel Assistance Limits, Retirement Benefits, Holiday Homes. 14

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

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

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

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

IMPORTANCE OF COMPENSATION

Compensation and Reward system plays vital role in a business organization. Since, among four Ms, i.e. Men, Material, Machine and Money, Men has been 17

most important factor, it is impossible to imagine a business process without Men. Every factor contributes to the process of production/business. It expects return from the business process such as rent is the return expected by the landlord, capitalist expects interest and organizer i.e. entrepreneur expects profits. Similarly the labour expects wages from the process. Labour plays vital role in bringing about the process of production/business in motion. The other factors being human, has expectations, emotions, ambitions and egos.

Labour therefore expects to have fair share in the business/production process. Therefore a fair compensation system is a must for every business organization. The fair compensation system will help in the following: o

An ideal compensation system will have positive impact on the efficiency and results produced by employees. It will encourage the employees to perform better and achieve the standards fixed.

o

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

o

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

o

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

o

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

o

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

o

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

o

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

o

The system should follow the management principle of equal pay.

o

It should motivate and encouragement those who perform better and should provide opportunities for those who wish to excel.

o

Sound Compensation/Reward System brings peace in the relationship of employer and employees.

o

It aims at creating a healthy competition among them and encourages 41employees to work hard and efficiently.

o

The system provides growth and advancement opportunities to the

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deserving employees.

o

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

o

The organization is able to retain the best talent by providing them adequate compensation thereby stopping them from switching over to another job.

o

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

o

The sound compensation system is hallmark of organization’s success and prosperity. The success and stability of organization is measured with paypackage it provides to its employees.

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

visibility into individual employee performance when it comes time to make critical compensation planning decisions. 

True

pay-for-performance

culture

improves

retention. Employees who outperform their peers will be rewarded appropriately, feel valued and happy —and more likely to stay with your company. 

Ongoing compliance. Design your compensation strategy with objective data and communicate it to managers to stay within allocated budgets and to employees

to

show

the

clear

link

between

compensation and performance expectations. 

Budget optimization. Run "what-if" scenarios and instantly see how increasing merit pay to your best employees would impact your budget.



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



Zero error system. Manage your compensation in a secure

environment

with

streamlined

workflows

where your data is determined via calculation and eligibility engines—eliminating privacy breaches and human calculation errors.

Human Resources Management - Benefits & Compensation 21

In a sluggish economy, compensation system gets a new focus by rewarding star performers more than the rest of the pack

3-P Compensation: Pay for

Performance In this article we look at how an organization develops a motivating and rewarding incentive plan.

An executive perspective on

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

An Overview of

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

TOP Are Higher Pay

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

Compensation Planning: The Key to Profitability

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

Executive

Compensation Managerial Power vs. the

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

Is

Your

Long-Term 22

Incentive

Plan

Really

Performance-Based? Long-term incentive plans (LTIPs) typically provide the largest component of senior executives’ compensation, most often through one or more of three equity-based types: stock options, restricted stock, and what are often called performance shares.

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

Organizational

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

Paying for Performance: An Overlooked Opportunity

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

process. Working

paper. pdf-file 23

Promise

and

Peril

in

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

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

responsibilities that, as a whole, is regarded as the reasonable assignment to an individual employee. Job is known as impersonal however position is known as personal. Job always contains a position which defines some set of works.

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

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

On the job evolution methods we can include some aspects: Ranking methods Grade Description Method Point Method Factor-Comparison Method Time-Span Method Guide-Chart Profile Method

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

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EXECUTIVE SUMMARY

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

I was asked to analyse the compensation

package in an Oil Industry in respect to 9 th pay revision. It was analyzed that the employees were fully satisfied in respect to their increment in their salary package.

An online interview and telephonic interview was being conducted and questionnaire was being distributed accordingly.

The feedback of the respondents was being up to mark and a positive response was being carried out.

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

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

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

Director (Refineries)

2.

Director ( Pipelines)

3.

Director (Marketing)

4.

Director (Finance)

5.

Director (HR)

6.

Director (R & D)

7.

Director (P&BD)

The working of Corporation's five Divisions, namely (i)Refineries Division, (ii) Marketing Division (iii) Pipelines Division (iv) R&D Centre and 31

(v) Assam Oil Division are co-coordinated

by a full-time

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

Company Ltd. on 1.9.1964 to form the Indian Oil

Corporation Limited having two Divisions, i.e. Refineries and Pipelines Division and Marketing Division.

The Refineries Division is mainly concerned with the setting up and operation of Refineries and Petrochemicals in India.

It owns and operates seven Refineries at : Guwahati (Assam), Barauni (Bihar), Vadodara (Gujarat), Haldia (West Bengal), Mathura (Uttar Pradesh), and 32

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

Each Refinery unit is headed by ED/GM who reports directly to Director (Refineries) and the liaison office at Kolkata and Mumbai is headed by DGM, who reports to ED (HR).

PERSONNEL & ADMN. DEPARTMENT The Personnel, Administration, Management Services, HRD & Training

and

Corporate

Communication

Department

at

Refineries HQ are headed by ED (HR) with the following functions under his charge: 

Personnel



Administration, Welfare & Hindi Implementation



Training and Development



Management Services



Corporate Communication

ED(HR) is assisted in his above functions by GM(A&W), DGM(Training & Development), DGM(HR), DGM(HRD), CMSM, and CM(CC) respectively.

The P&A Department at each refinery unit is headed by DGM(HR)/CHRM who reports to the respective ED/GM.

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VISION, MISSION & VALUES

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

Mission To achieve international standards of excellence in all aspects of energy and diversified

business with focus on customer

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

Values Care Innovation Passion 34

Trust IndianOilPeople... towards Excellence...

Objectives of the proposed study

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

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

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

I.RESEARCH DESIGN: In order to understand the satisfaction of the Employees after the commencement of 9th pay commission a brief conversation was done with the employers through online and a survey was done through online basis.

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

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

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

Scope/Relevance of Proposed Study

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

UP

A

HOSPITALITY

BETWEEN

THE

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

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

is

imported.

Downstream

development

of

refineries,

petrochemical plants and other related industries is increasingly creating an integrated oil and gas sector, equivalent to that of industrialized nations. Oil and gas production has been the mainstay of the economy in the UAE and will remain a major revenue earner long into the future, due to the vast hydrocarbon reserves at the country’s disposal. 38

Proven recoverable oil reserves are currently put at 98.2 billion barrels or 9.5 percent of the global crude oil proven reserves. As for natural gas, the proven recoverable reserves are estimated currently at 5.8 billion cubic meters or 4 percent of the world total. This means that the UAE possesses the third largest natural gas reserves in the region and the fourth largest in the world. At the current rate of utilization, and excluding any new discoveries, these reserves will last for over 150 years. The UA E ’s oil production is limited by quotas agreed within the framework of OPE C to 2 million barrels per day (mbd). Production capacity, however, will rise to around 3 mbd in the year 2000. There are plans to boost that level to 3.6 mbd in the year 2005 and 4 mbd in the year 2010. Gas production is being expanded to meet a forecast doubling of demand to 3.7 billion cubic feet per day (bn cfd) by the year 2000. Domestic demand is expected to increase from 813 million cubic feet per day (mn cfd) in 1996 to 1.137 bn cfd by the year 2000, while gas used for reinjection is projected to double to 1.8 bn cfd. The value of oil exports dropped from Dh 49.1 billion in 1997 to Dh 35.7 billion in 1998 (-27.3 per cent) due to the deterioration in oil prices which fell by 34 per cent during 1998 compared with 1997 levels, to reach US $12.4 a barrel. The value of liquefied gas exports also dropped from Dh 8.5 billion in 1997 to Dh 6.5 billion in 1998, due to the fall in its prices which are closely linked with oil prices and owing to the fact that the value of gas exports in 1997 included a one-time payment of Dh 1.5 billion made to ADGAS by its main importer Tokyo Electricity Power Company. The UAE exports 62 per cent of its crude oil to Japan making it the UAE’s largest customer. Gas exports are almost entirely to Japan, the world's largest buyer of liquefied gas, with the UAE supplying almost one-eighth of Japan's entire requirements. International Markets 39

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

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

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

Petroleum

Council

(SPC),

which

is

responsible

for

formulating Abu Dhabi petroleum policy and overseeing the emirate’s oil and gas operations and related industry.

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

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

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

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

Dubai

Supply

Authority

(DSA)

agreed

to

purchase

its

requirements for Qatari gas from Dolphin. Under the terms of the agreement, Dubai plans to purchase gas in the amount of 200–700 mn cfd. The Dubai Government and the UOG also agreed to cooperate

in

identifying

and

maximizing

opportunities

for

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

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

share

of

the

UAE's

gas

reserves.

Dubai’s

Margham

gas/condensate field can deliver up to 140 mn cfd for domestic use and offshore fields can provide another 100 mn cfd. Sharjah also supplies Dubai with 430 mn cfd through a pipeline installed in 1992. 43

The

state-owned

Dubai

Natural

Gas

Company

(DUGAS)

is

responsible for processing natural gas produced in Dubai’s offshore oil fields as well as the gas piped from Sharjah.

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

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

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

Ras al-Khaimah awarded

Norway’s Atlantis

Technology

Services and Petroleum Geo Services a permit to explore the offshore Baih field. The Ras al-Khaimah Oil and Gas Company, set up in 1996, has exclusive hydrocarbon rights to the rest of the emirate. Refineries In the UAE there are six refineries operational at present and the existing refining capacity in the region is estimated to be around 800,000 tones. Development of downstream industries such as refineries and petrochemical plants is a central part of UAE efforts to move away from crude oil exports. Major plans are under way to construct new refineries and increase the capacity of existing ones in order to attain production of 180,000 bd by the year 2000. Abu Dhabi is presently in the middle of a five - year (1997–2002) development project aimed at boosting refining capacity. ADNOC’s US $600 million Ruwais refinery upgrading project is just one of the many down stream projects that are included in the programme. Others include a 35,000 bd refinery plant in Fujairah and the Dh 600 million Sharjah re finery at Hamriyyah Free Zone, which commenced operations in mid-1999.

45

List of Oil and Gas Companies in Dubai

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

Major Oil Companies operating in UAE:

46

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

Major Foreign Oil Company Involvement: BP Caltex Petroleum Corp., Miutsui & Co. Ltd.

47

Parrex Pennzoil

48

Petroleum Crude Oil & Fuel in UAE

1

Abu Dhabi National Oil Company (ADNOC)

State-owned oil company with subsidiaries in exploration and production, support services to oil and gas industry, oil refining and gas processing, chemicals and petrochemicals, maritime transportation and refined products and distribution Petroleum

2

Abu Dhabi Oil Refining Company (Takreer)

Abu Dhabi-based company engaged in the refining of crude oil and condensate, supply of petroleum products and production of granulated sulphur; runs the Ruwais and Umm al Nar refineries Petroleum

3

Adnoc Distribution Home Page

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

4

Emirates National Oil Company ( ENOC ) 49

Company in Dubai engaged in refining and marketing of oil, supply of jet fuel and aviation fuelling services, manufacture of chemicals and lubricants, LPG, etc. Petroleum Gas Chemicals Lubricants

5

Emirates Petroleum Products Company ( EPPCO )

Business group with interests in lubricants, supply of marine bunker fuels, supply of jet fuel, commercial sales, procurement, storage of refined petroleum products, and retail sales through petrol service stations Petroleum .

6

FAL Group of Companies

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

7

Ghayasiban Group

Business group based in Dubai & Lucknow (India); activities include software development, industrial measurement & control instrumentation, petroleum trading, a college in Lucknow, & a bank Business Groups Instrumentation Petroleum Software Firms

8

Gulf Oil & Gas

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

9

Gulf Oilfield Directory

Annual publication of companies in the oil and gas industries; online searchable version available; published by Arabian Publications, a company incorporated in the British Virgin Islands Petroleum

10

Pipeline Magazine

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

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

51

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

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

As renewable energy rises in importance, it poses a threat to oil companies. “The world’s desire for environmentally-friendly energy sources appears to be rising faster than global temperatures. This is a growing risk to all energy producers – one that goes well beyond a fire at a plant, or a tanker that runs aground. What’s important for you as large producers of hydrocarbons is to view this risk honestly and address it strategically," said Brian Storms, Chairman and CEO of Marsh Inc., at the opening of the Marsh National Oil Company conference in Dubai. “The normal tendency would be a bias for action, where you might jump to a tactical, defensive position. But there is a ‘new world’ view of risk – specifically, how to find opportunity in the kind of global changes we’re seeing… where risks and potential liabilities can be turned into a competitive advantage over those companies that don’t move to address them.” With many facilities situated either on areas of permafrost or in proximity to the arctic ice shelf, a potential thawing induced by 52

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

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

53

The problem is that no oil producer is making money at $40 per barrel. We've heard estimates that the break-even point is now $60 to $80 per barrel, so producers are hurting. Why doesn't a producer simply stop producing if it loses money on every barrel? That question is answered when you realize that most of our oil now comes from national entities (Saudi Arabia, Venezuela, Iran, etc.) rather than companies like Exxon or Shell. These countries do indeed work with companies, but the basic decisions there are governmental. These governments are dependent on oil revenue for infrastructure, social programs, military spending and all the rest. For them, if revenue stops, the government stops.

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

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

54

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

Rising Oil Keeps Companies on Their Toes

55

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

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

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

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

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

government company was set up. In 1959, for marketing of petroleum products, the government set up another company called Indian Refineries Ltd. In 1964, Indian Refineries Ltd was merged with Indian Oil Company Ltd.

to

form

Indian

Oil

CorporationLtd.

During 1960s, a number of oil and gas-bearing structures were discovered by ONGC in Gujarat and Assam. Discovery of oil in significant quantities in Bombay High in February, 1974 opened up new avenues of oil exploration in offshore areas. During 1970s and till mid 1980s exploratory efforts by ONGC and OIL India yielded discoveries of oil and gas in a number of structures in Bassein, Tapti, Krishna-Godavari-Cauvery basins, Cachar (Assam), Nagaland, and Tripura. In 1984-85, India achieved a selfsufficiency level of 70% in petroleum products.

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

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

58

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

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

59

Oil Companies In India

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

List of Subsea Oil and Gas Companies in India

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

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

HALDIA INTRODUCTION OF OIL COMPANIES IN HALDIA

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

confluence of river Hoogly and Haldi.

From an original crude oil

processing capacity of 2.5 MMTPA, the refinery is operating at a capacity of 5.8 MMTPA at present. Capacity of the refinery was increased to 2.75 MMTPA through de-bottlenecking in 1989-90. Refining capacity was further

increased

to

3.75

MMTPA

in

1997

with

the

installation/commissioning of second Crude Distillation Unit of 1.0 MMTPA capacity. Petroleum products from this refinery are supplied mainly to eastern India through two product pipelines as well as through barges, tank wagons and tank trucks. Products like MS, HSD and Bitumen are exported from this refinery. Haldia Refinery is the only coastal refinery of the corporation and the lone lube flagship, apart from being the sole producer of Jute Batching Oil. Diesel Hydro Desulphurisation (DHDS) Unit was commissioned in 1999, for production of low Sulphur content (0.25% wt) High Speed Diesel (HSD). With augmentation of this unit, refinery is producing BS-II and Euro-III equivalent HSD (part quantity) at present. Resid Fluidised Catalytic Cracking Unit (RFCCU) was commissioned in 2001 in order to increase the distillate yield of the refinery as well as to meet the growing demand of LPG, MS and HSD. Refinery also produces eco friendly Bitumen emulsion and Microcrystalline Wax. A Catalytic Dewaxing Unit (CIDWU) was installed and commissioned in the year 2003 for production of high quality Lube Oil Base Stocks (LOBS), meeting the API Gr-II standard of LOBS. In order to meet the Euro-III fuel quality standards, the MS Quality Improvement Project has been commissioned in 2005 for production of Euro-III equivalent MS. The refinery expansion to 7.5 MMTPA as well as a Hydrocracker project has been approved, commissioning of which shall enable Haldia Refinery to supply Euro-IV and Euro – III HSD to the eastern region of India.

63

IOC puts on hold its Haldia Refinery Plan

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

64

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

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

cheque payment system in the

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

Paradip-Haldia Crude Pipeline to be ready Soon 65

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

the

SPM

to

onshore

storage

facility.

However,

considering the heavy monsoon in the East coast, which is about to arrive, there may be some minor delay. Overall we are now hopeful 66

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

67

Indian Oil’s Pipeline Network nears 10 K Ian

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

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

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

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

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

The Haldia-Paradip pipeline project is now awaiting statutory clearances of the Union government and the governments of Orissa and West Bengal. “It will take three years to complete the pipeline project,” IOC’s chairman MS Ramachandran said here Tuesday. He was talking to reporters on the sidelines of an interactive session on ‘Oil and Gas Scenario of India with Particular Reference to Eastern India and West Bengal’ organised by the Bengal Chamber of Commerce and Industry. 69

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

70

GUJARAT

Introduction To Gujarat Refinery

More than 25 years ago, the Government of Gujarat conceived of the formation of a petrochemical company, that has today metamorphosed into a large-scale Rs. 3900 crore energy organization, excelling in a wide gamut of hydrocarbon activities. Notwithstanding its limited role and the low key infrastructure, the organization drew inspiration from the exciting opportunities that the hydrocarbon sector offered in the wake of liberalization of Indian economy. It gradually began to expand its vision, widened the scope of its activities and rechristened itself as Gujarat State

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

71

Indian Oil Corporation Ltd in North East Region

(Guwahati Refinery)

PROFILE OF GUWAHATI REFINERY (ASSAM)

The Guwahati Refinery in North East India -- the first Public Sector refinery of the country -- was commissioned in 1962

with

subsequently

a

capacity increased

of

0.75 to

1.0

MMTPA

which

MMTPA

was

through

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

onward to Siliguri in West Bengal in 2003. Hydrotreater Unit for

improving the quality of diesel has been

commissioned in 2002. In 2003, the refinery installed an Indmax Unit, a novel technology developed by Indian oil’s R&D Centre for upgrading heavy ends into LPG, Motor Spirit and Diesel oil.

INTRODUCTION TO HUMAN RESOURCE DEPARTMENT

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

Management

Services,

HRD

&

Training

and

Corporate Communication Department at Refineries are headed by ED (HR) with the following functions under his charge: 1 73

2

Personnel

3

Administration and Welfare

4

Training and Development

5

Management Services

6

Corporate Communication

The role of the personnel department is to promote and develop cooperative attitude amongst employees and to inculcate in them a sense

of

belongingness

progressive

personnel

to

the

policies

organization

and

practices

culture, which

evolve ensures

employee satisfaction, to ensure that employees can undertake skill up-gradation

through

appropriate

training

so

that

they

feel

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

74

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

community,

looks

into

the

matters

of

certain

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

Functions of Senior Administrative officer (SAO): They look into the matters of land, carry out time to time inspection of the lands acquired by Refinery, they look into the matters of community development,

genuineness

of

their

requirements

and

fund

allocation, they perform the function of staffing employees by placing them in those jobs in accordance to their skill set. They look 75

after the wage administration and they are responsible for formulating the wages to be allocated. They also have to look after medical

benefits,

promotion,

probation

and

recruitment

and

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

HUMAN RESOURCE FUNCTIONS IN GUWAHATI REFINERY 76

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

Manpower planning

o

Determine the organizational structure and optimize manpower to effectively meet Company’s objective

o

Job description

o

Recruitment

o

Personnel records

o

Promotion

o

Transfer

PERSONNEL MAINTENANCE o

Motivation

o

Performance Appraisal

o

Recreation

o

Communication

o

Employee amenities - canteen , clubs etc.

o

Safety

o

Medical Services

o

Security

DEVELOPING THE HUMAN RESOURCE 77

o

Induction and apprentice training

o

Training & development of employees.

INDUSTRIAL RELATIONS o

Productivity Bargaining

o

Grievance Handling

o

Discipline Administration

o

Providing joint consultative machinery-Joint Management Councils

COMPENSATION o

Wage & Salary surveys & controls

o

Negotiations

o

Incentives/bonus

PERSONNEL POLICY & PLANNING o

Defining Organizational goals, Policy guidelines and strategies

o

Formulating & implementing Personnel policies

78

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

(e) E ( )

INTERPRETATION: 28.57 GRADE A

% 14.29

GRADE B

% 28.58

GRADEC

% 14.29

GRADE D

% 14.29

GRADE E

%

Analysis: It was analyzed that in this organization maximum of the Employees worked in Grade C level

79

3) What was your Compensation Package before the commencement of 9th Pay Commission? a) Below 10,000( ) (b)10,000-20,0000(

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

d) 30,0000-40,000( ) (e) More than 40,000( ) Interpretation: 14.29 Below 10 000

% 42.86

10000-20000

% 28.58

20000-30000 30000-40000 More than 40 000

% 7.14% 7.14%

ANALYSIS: It was analyzed that before the commencement of 9th Pay Revision maximum of the employees compensation package was between 10 000 to 20 000 respectively.

80

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

(b) No ( )

INTERPRETATION 85.71 Yes

% 14.29

No

%

ANALYSIS: It was analyzed that maximum of the employees were satisfied with their working condition prevailing in this organization.

81

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

( b) No ( )

Interpretation: 71.42 Yes

% 28.57

No

%

Analysis: It was analyzed that maximum of the employees were satisfied with their payroll along with their working condition in this organization. The ratio of their Payroll in respect to their Working Condition was beneficial to them.

82

6) Do you think there should be a rise in salary package in this organization? a) Yes ( )

( b) No (

)

INTERPRETATION: 57.14 Yes

% 42.85

No

%

Analysis : Maximum of the respondants stated that there should be a rise in the salary package in respect to this organization.

83

7) Do you think there should be implementation of 9th pay commission in this organization? a) Yes ( )

( b) No ( )

INTERPRETATION 71.42 Yes

% 28.57

No

%

ANALYSIS: It was analyzed that maximum of the respondants stated that the 9th Pay Revision should be implemented in this organization.

84

8) What was the reimbursement in your salary package after the commencement of 9th pay revision? a) 10% ( )

(b) 20%( )

(c) 30% ( )

( d) 40% ( )

(e) 50% (

) INTERPRETATION: 28.58 10%

% 14.29

20%

% 28.58

30%

% 14.29

40%

% 14.29

50%

%

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

ANALYSIS: It was analyzed that at an average maximum of the respondants reimbursement was to a rise of 10% & 30% after the commencement of 9th pay revision in this organization.

85

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

(b) Dissatisfy (

(c) Neither Satisfy Nor Dissatisfy ( (d) Satisfy ( )

)

)

(e) Strongly Satisfy ( )

INTERPRETATION 14.29 Strongly Dissatisfy

% 14.29

Dissatisfy

% 14.29

Neither Satisfy Nor Dissatisfy

% 28.58

Satisfy

% 28.58

Strongly Satisfy

%

ANALYSIS: It was analyzed that after the commencement of 9th Pay Revision the employees were satisfied working in this 86

organization

87

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

satisfied,

neither

satisfied

nor

dissatisfied,

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

Neither Satisfy Nor

Dissatisfy:14.29% Dissatisfy:14.29%

,

Satisfy:28.58%,

Satisfy:28.58%

88

Strongly

89

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

90

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

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

91

92

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

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

(e) E ( )

3) What was your Compensation Package before the commencement of 9th Pay Commission? a) Below 10,000( ) (b)10,000-20,0000(

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

d) 30,0000-40,000( ) (e) More than 40,000( ) 4) Are you satisfied with your working condition in this organization? a) Yes ( )

(b) No ( )

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

(b) No ( )

93

6) Do you think there should be a rise in salary package in this organization? a) Yes ( )

( b) No (

)

7) Do you think there should be implementation of 9th pay commission in this organization? a) Yes ( )

( b) No ( )

8) What was the reimbursement in your salary package after the commencement of 9th pay revision? a) 10% ( )

(b) 20%( )

(c) 30% ( )

( d) 40% ( )

(e) 50% (

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

(b) Dissatisfy (

(c) Neither Satisfy Nor Dissatisfy ( (d) Satisfy ( )

)

(e) Strongly Satisfy ( )

94

)