performance appraisal at iocl

PERFORMANCE APPRAISAL OF THE EMPLOYEES OF IOCL (AOD)

Indian Oil Corporation (Assam Oil Division), Digboi, Assam

BySyeda Moonmee Islam Roll No. : 11-MBA-60

Enrolment No.: 11-5972

at

OBJECTIVES:

PRIMARY OBJECTIVE:To study, “Performance Appraisal

System of the employees of I.O.C.L.(AOD) ”.

SECONDARY OBJECTIVE:To study the satisfaction level of

employees ( if not satisfied, causes).

ABOUT THE COMPANY Indian Oil Corporation Limited is an Indian public-sector oil and

gas company. It began operation in 1959 as Indian Oil Company Ltd. The Indian Oil Corporation was formed in 1964, with the merger of Indian Refineries Ltd.

It deals in Refining, Pipelines, Marketing, R&D, Petrochemicals, Natural gas and E&P.

It is India’s largest commercial enterprise; ranking 105th on the Fortune Global 500 list in 2009.

It is also the 18th largest petroleum company in the world and the number one petroleum trading company among the National Oil Companies in the Asia-Pacific region.

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

SCOPE OF THE STUDY:

The scope of the study was mostly confined to the measurement of the employee’s(non-officers) satisfaction about the performance appraisal system of Indian Oil Corporation’s Assam Oil Division. It also aimed at finding out the opinion of the employees regarding their satisfaction level. For the purpose of the study, the non-officers of A.O.D from various departments were taken and reviewed.

LIMITATION OF THE STUDY:

1. The study suffered from time constraint as it is completed within the short span of time.

2. The data collected and all the ground work that was felt necessary had to be done within the sample size. Thus, the huge workforce was another constraint in the study.

3. There was a lack of free time in the hands of the employees. As such, carrying out a survey by getting the questionnaires filled correctly on time was a real hard task.

RESEARCH METHODOLOGY:

Sampling: Sampling may be defined as the selection of some part of

an aggregate or totality on the basis of which a judgment or inference about the aggregate or totality is made. In other words, it is the process of obtaining information about an entire population only a part of it.

Random Sampling – Simple random sampling was used in conducting the survey. In such sampling we select the sample randomly as every as every employee of the population has an equal chance of being selected.

Sampling Frame: Officers &Non-Officers of the Assam Oil Division of Indian

Oil Corporation Limited from different departments.

Size of the Sample: The sample size of 120 was decided upon, after due

consultation with the organizational guide.   Data Collection:

(a) Primary data: Collection of information through standardized questionnaires. A questionnaire was prepared for all non-officers. It included questions both open-ended and close-ended.

(b) Secondary data: Secondary data consistedof materials provided by the organization, in-house journal like – Batori, Corporate profile, Departmental manuals, intranet, organizational websites etc.

Data collection methods/ instruments: The main method of data collection was questionnaires and the secondary sources of data provided by the organization itself e.g. Personnel Manual. Moreover personal interviews and the organisation’s annual reports were also used.

ANALYSIS AND INTERPRETATION OF DATA

85%

15%

Gender Composition

Male Female

8% 11%

40%

41%

Age Composition

21-30 31-40 41-50 51-60

61%

9%

13%

5%

1%

1%

3%

7%

Educational BackgroundGraduate (Non-Technical) Graduate (Technical)10+2 Master Degree (Non-Technical)LLB CAMBA ITI

11% 8%

11%

16%11%

2%

16%

5%

6%

3%1%2% 2% 2% 2%

DepartmentsFinance Personnel Materials Refinery Quality Control AccountsER&S Corporate Communication ProductionMechanical T&D SecurityInternal Audit Systems Zonal

12%

21%

41%

26%

Duration of Service (in years)0 to 10 11 to 20 21 to 30 Above 31

14%

86%

Prior ExperienceYes No

1%

69%

28%

3%

I am highly satisfied with the ex-isting Performance Appraisal

Strongly Agree AgreeDisagree Strongly Disagree

10%

72%

16% 2%

The performance appraisal increases employee motiva-

tion.Strongly Agree AgreeDisagree Strongly Disagree

12%

64%

23%1%

The performance management system has helped the em-ployees to work efficiently.

Strongly Agree AgreeDisagree Strongly Disagree

9%

56%

32%

3%

Performance appraisal outcome plays a key role in promotion and

transfer.Strongly Agree Agree Disagree Strongly Disagree

18%

57%

23%2%

The performance appraisal helps in building co-operation and

team work among the employ-ees.

Strongly Agree AgreeDisagree Strongly Disagree

19%

54%

27%

The performance appraisal is helpful for improving personnel

skill.Strongly Agree AgreeDisagree Strongly Disagree

13%

63%

22%2%

The performance management system helps to identify the

strengths and weaknesses of the employees.

Strongly Agree Agree Disagree Strongly Disagree

3%

49%38%

9%

Transfer, demotion, suspension and dismissal is based on per-

formance appraisal.Strongly Agree Agree Disagree Strongly Disagree

5%

55%

36%

5%

The desired target of the organ-isation is achieved through the

performance appraisalStrongly Agree AgreeDisagree Strongly Disagree

15%

50%

27%

9%

Performance appraisal are done at regular intervals of timeStrongly Agree Agree Disagree Strongly Disagree

9%

61%

27%

3%

The cluster promotion policy contributes towards the career progression of the employees.

Strongly Agree Agree Disagree Strongly Disagree

11%

63%

22%4%

Promotions are given on the basis of points scored and vacancies in

the next cluster.Strongly Agree Agree Disagree Strongly Disagree

14%

63%

20% 2%

I am fully aware of the minimum eligibility period considered for

promotion.Strongly Agree Agree Disagree Strongly Disagree

7%

44%41%

8%

I am highly satisfied with the current promotion policy.

Strongly Agree Agree Disagree Strongly Disagree

6%

56%

31%

7%

I am fully aware of the special grades (SG-I, SG-II, SG-III) of IOCL and the criteria required for at-

taining these special grades.Strongly Agree Agree Disagree Strongly Disagree

44%

56%

Satisfied with the special gradesYes No

RECOMMENDATIONS The recommendations that are suggested after the completion

of the research report are as follows: It is suggested that the promotion policies be revised and improved for

the betterment of employees. The employees have also voiced their opinion that the promotions are

not declared as per scheduled time. Hence, it may be suggested that promotions be effected as and when the promotions are notified.

It is suggested that the management take the steps to introduce suggestion scheme system for the employees to voice their ideas and views.

More intra-departmental as well as inter-departmental transfer from one division to another should be implemented for a better work force.

Vacancy positions should be reviewed from time to time considering the scenario of the corporation.

IOCL (AOD) should include policies within the promotion policies for award/ reward in recognition of employee contribution, this will motivate the employee to give his best and perform well for the organization.

Special care should be taken for below satisfactory performers. Special Grades system should be removed from the promotion policy.

CONCLUSION

From the study it can be concluded that the employees are almost satisfied with the performance appraisal and promotion policies provided by IOCL (AOD). But there are some areas which require improvement. The officers are well satisfied with the performance appraisal system but among the non-officers the promotion policy is a bit of an issue. For a professionally and financially successful organization like IOCL (AOD), it is essential for their HR department to implement policies and systems whereby the level of motivation and the work environment are befitting in various ways to the different levels of employees, which shall result in greater attachment and loyalty towards the organization.

Benefits and policies for employees should be and have been given substantial interest for lifting their morale and productivity.

The roles and responsibilities of the employees of IOCL (AOD) should be well defined by incorporating transparent HR policies, rules and regulations, giving more recognition to the deserving employees and providing good incentives which are at par with the private competitors.

IOCL in general and Assam Oil Division (AOD) possess enough resources to overcome the various obstacles they are facing. With proper managerial and technical co-ordination this corporation can easily forge

its way further in the Fortune 500 list.

BIBLIOGRAPHY

Organizational Manuals- Personnel Manual Administration Manual Batori (magazine of IOCL)

Official Website of IOCL. Personnel Management by B.C. Memoria Human Resource Management by Aswathapa

K (2008) Essential of HRM and Industrial Relations- P.

Subba Rao.

Thank You